Reporting Pursuant to the Global Investment Performance Standards -- SOP 06-1

• Introduction and Background
• Scope
• Overview of the GIPS Standards
  • Compliance With the GIPS Standards
  • Verification
  • Performance Examination
• Verification and Performance Examination Engagements
  • Engagement Objectives
  • Planning the Engagement
  • Establishing an Understanding With the Client
  • Obtaining Sufficient Evidence
  • Representation Letter
  • Reporting
• Effective Date
• APPENDIX A Example Engagement Letter: Verification and Performance Examination
• APPENDIX B Example Management Representation Letter: Verification and Performance Examination
• APPENDIX C Illustrative Attest Reports: Verification
• APPENDIX D Illustrative Attest Reports: Verification and Performance Examination
• APPENDIX E Illustrative Attest Reports: Verification and Performance Examination Under Both AIMR-PPS and GIPS Standards (Not to be used for periods ending after December 31, 2005)
• APPENDIX F Illustrative Attest Reports: Successor Practitioner Report - Verification and Performance Examination

Reporting Pursuant to the Global Investment Performance Standards

Introduction and Background

1. To promote fair representation, full disclosure, and greater comparability in investment performance presentations, CFA Institute (formerly known as the Association for Investment Management and Research (AIMR)) developed the AIMR Performance Presentation Standards (AIMR-PPS standards) and the Global Investment Performance Standards (GIPS standardize) (collectively, the performance standards). Although compliance with the performance standards is voluntary, an investment management firm's claim of compliance with the performance standards is widely regarded as providing a competitive advantage. The performance standards include both required and recommended guidelines for calculating and reporting performance.

2. In February 2005, CFA Institute revised the GIPS standards to include new sections to address real estate and private equity investments as well as other new provisions. All references to the GIPS standards in this Statement of Position (SOP) refer to the GIPS standards revised as of February 2005. The GIPS standards specify that they include any updates, reports, guidance statements, interpretations, or clarifications published by CFA Institute and its committees.