Many have noticed that every year, we at Curran Investment Management (CIM) send Annual GIPS composite reports accompanied with an independent verifier’s verification report. For you, as our client or prospective investor it may strike you as some sort of regulatory requirement and you may pay little attention to it. However, it may interest you to know that GIPS is voluntary, and many managers do not comply with GIPS.
Launched in 1999 the acronym GIPS stands for Global Investment Performance Standards. GIPS are a globally accepted methodology for calculating and presenting an investment firm’s performance history. This performance history is widely relied upon by investment firms, its clients, and prospects for ensuring consistency of investment firm results. This promotes comparability for participating firms. Rather than different standards, rules and calculations for different countries, one set of standards applies to all participating countries. There are now 41 countries adhering to the GIPS standards.
Clients and prospects should have increased confidence in the authenticity of the firm’s performance presentation and the general practices of a compliant firm. Investors reviewing GIPS compliant firms can more easily compare performance presentations between different strategies and firms across the globe. Prospective clients have the assurance that a GIPS compliant firm’s historical performance is both complete and fairly presented. GIPS consist of industry best practices. Compliance illustrates a firm’s commitment to the highest ethical standards and practices. Firms adhering to GIPS have adopted a standardized framework and internal controls that ensure consistent and directly comparable investment information.
A firm claiming GIPS compliance adds a significant degree of credibility by submitting its claim to the examination of third-party verification which we do at Curran. A manager could claim compliance but that does not necessarily make it so. The intention of verification is to offer both current and prospective investors increased confidence in the firm’s claim of GIPS compliance.
Verification is the review of an investment management firm’s performance measurement processes and procedures by an independent third-party verifier. The verification exam evaluates whether a firm has complied with GIPS composite construction mandates on a firm wide basis. The verifier also examines whether the firm has in place appropriate policies and procedures to ensure calculations and performance presentations are in compliance with the GIPS standards.
We follow a process much like others do in pursuing our claim of GIPS compliance. When we first performed our GIPS due diligence, we designed and implemented appropriate policies and procedures at the firm level to ensure that portfolio accounting data is prepared, and investment returns reported in accordance with the rules and guidelines of the Standards. Our policies, procedures and performance data are reviewed on an ongoing basis by an independent third party, The Spaulding Group known as the verifier. Verification by a reputable firm such as Spaulding with a long list of reputable clients, adds vital credibility to our claim of compliance with the standards.
By achieving and maintaining GIPS compliance, we at Curran have enhanced our internal controls by formalizing our policies and procedures, linking operations such as portfolio accounting through to marketing. The sound organizational infrastructure provides the foundation for a solid operational platform to add new investment products. The thorough GIPS requirements greatly improves and enhances reporting transparency by eliminating misrepresentations and seeking to uncover errors and omissions in a firm’s historical account data.
By complying with GIPS standards we at Curran have voluntarily gone beyond minimum reporting requirements. We have elected to do so to illustrate our commitment to transparent and ethical practices. Our compliance demonstrates our commitment to following rules governing, input data, calculation methodology as well as presentation and reporting.
It is with some measure of pride that we submit to you, our clients and prospective investors, our GIPS Verification Report and letter for 2021.
Co-CEO & Chief Investment Officer
At Curran we value service over sales and believe quality service yields happy clients. Below is our 4-step process (the first three steps at no cost to you).
A short introductory call for us to get to know one other. During this call we will discuss your financial goals, concerns and hopes for the future.
In this meeting we will go over your current financial situation, take a deeper look at your goals, discuss your risk tolerances, and collect the data necessary to build a formal proposal.
Based on our data gathering session, our Private Wealth Managers will present you with a custom proposal tailored to your needs. We encourage individuals to take the time to evaluate this proposal.
If you are comfortable with the proposal and choose to invest with Curran, our team will be there every step of the way assisting in opening the recommended accounts and facilitating all necessary parts of your onboarding process.