Have you heard of (GIPS®) or know what it stands for? Most people haven’t. Read on to see why BCM went through this rigorous, thorough process to gain compliance and verification.
Billeaud Capital Management, LLC (“BCM”) claims compliance with the Global Investment Performance Standards (GIPS®). Please visit the CFA Institute website for more information on the GIPS Standards.
What is GIPS?
Global Investment Performance Standards (GIPS®) “GIPS” is the industry accepted standard for calculating and presenting performance results to prospective clients. It is based on ethical principles of fair representation and full disclosure, and created and administered by CFA Institute.
Globally, CFA Institute reported in 2018 that 1,685 firms claimed compliance with the GIPS standards. Further, 84 of the top 100 global asset management firms claim GIPS compliance (Cerulli Associates).
Investors have a greater level of confidence in the integrity of performance presentations, as well as general practices of GIPS compliant firms. They can more easily compare performance presentations between different strategies and firms across the globe. Investment firms choosing to comply with the GIPS standards assure prospective clients that the historical performance they report is both complete and fairly presented. The GIPS standards represent industry best practices and compliance demonstrates a firm’s commitment to ethical practices. Firms complying with the GIPS standards benefit from the standardized framework and internal controls that ensure consistent and directly comparable investment information. GIPS standards are voluntary, leading to more effective and efficient investment markets. GIPS standards demonstrate BCM’s commitment to being honest, ethical, and professional.
Why GIPS is Important to Us and to You
BCM decided to become GIPS compliant because we believe it is a ‘best practice’ for all investment advisors. An objective, standardized measure of investment performance is the top level of accountability to clients and something we value at BCM. GIPS compliance is not a one-time event, and maintaining compliance requires significant effort; there are tasks that must be completed on a monthly and annual basis in order for a firm to maintain compliance. As an additional step in compliance, BCM engages a independent third party GIPS verifier to review its processes and procedures for reporting performance results on a quarterly basis and to issue a Verification Opinion Letter stating its opinion on BCM’s compliance with the GIPS standards on a firm wide basis.
We think complying with the GIPS standards is important for both clients and for our firm. The rigorous processes and ongoing maintenance keep the operations and reporting in line with new technologies and compliance requirements.
For GIPS purposes, BCM is a Louisiana based, SEC Registered Investment Advisory firm founded in 1987 that provides fee-based investment management and wealth management services using our disciplined asset allocation strategy. Please contact Erin McMenemon at firstname.lastname@example.org to obtain additional information on our GIPS composites.
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About the Author
Erin Despot McMenemon joined Billeaud Capital Management in 2016 as an Investment Adviser Representative. Erin has 11 years of experience in valuation and financial consulting, investment banking, and private portfolio management. Erin received her Masters of Business Administration degree from the A.B Freeman School of Business at Tulane University and holds a degree in Finance from Louisiana State University… Read more.