SBI AMC announces compliance with Global Investment Performance Standards

SBI Funds Management January 23 said its mutual fund, portfolio management services and alternate investments funds (GIPS Firm) have complied with Global Investment Performance Standards (GIPS) and the firm has been independently verified by ACA Performance Services, LLC for the period of April 1, 2014, through March 31, 2019.

SBI Funds Management is a Joint Venture between State Bank of India, and Amundi, Europe’s largest asset manager.

GIPS is a set of standardized, industry-wide ethical principles that guide investment firms on how to calculate and present their investment performance to prospective clients. It is a standard formulated by the prestigious CFA Institute and is a platform that recognizes the highest level of ethical reporting.

Although the adoption of GIPS is not mandated by regulation, it is considered best practice for investment advisors.

The GIPS standards are currently adopted in 41 countries and are recognized around the world for their credibility, integrity, scope, uniformity, and enabling direct comparability of a firm’s track record.

Firms that claim GIPS compliance adhere to all applicable requirements of the GIPS standards but do so through an ethical commitment to best practices.

Experts said asset management companies often specify that they are GIPS compliant as it can lend added credibility particularly for firms that are doing business with more matured markets like Europe.

Since GIPS is a global standard, it makes it easier for companies that do business in multiple countries, helping them save time by not having to apply different performance calculation measurements or any investment presentations that include performance data based on the locale.