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Bailey McCann, Opalesque New York:

A just-released survey of institutional asset managers, consultants and investors confirms compliance with the Global Investment Performance Standards (GIPS®) is on the rise, with 84% of asset managers responding saying their firms are GIPS compliant. This is up from 72% who claimed compliance in 2014, the last time institutional investment analytics firm eVestment and consulting firm ACA Compliance Group conducted this survey of eVestment users.

The uptick in GIPS compliance is driven by investor and consultant activity, as 75% of investors and consultants responding to the 2018 survey said they exclude managers from searches some or all of the time if they do not claim GIPS compliance. This is up from two out of three investors/consultants who said they excluded managers from searches some or all of the time if they do not claim compliance with GIPS in the 2014 survey.

Asset manager size appears correlated with claiming GIPS compliance, with 72% of firms with AUM below $500 million claiming compliance, while 81% of firms with AUM over $20 billion claim compliance. 94% of asset management firms that claim compliance receive a verification, up from 87% who reported being verified in the 2014 survey.

"The survey results indicate a potential major shift for alternative managers, with three out of four consultant responses indicating that they expect to start requiring hedge fund and private equity managers to comply with the GI......................

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