News, Resources and Updates

CFA Institute: Exposure Draft of the 2020 Global Investment Performance Standards – Valuation Updates

On August 31, 2018, the CFA Institute released an Exposure Draft of the 2020 Global Investment Performance Standards. The Exposure Draft significantly expands the scope of the requirement to obtain external valuations (currently limited to real estate investments) for firms that claim GIPS compliance to include all “private market investments”, including infrastructure, timberland, private equity and similar investments “that are illiquid and not traded on an exchange”. For firms that claim GIPS compliance, all “private market investments” that are included in the firm’s discretionary assets under management will be required to have an external valuation, valuation review or be subject to a financial statement audit at least once every 12 months. Firms that claim GIPS compliance will be required to comply with the new external valuation requirement effective January 1, 2020. Comments on the GIPS 2020 Exposure Draft are solicited and can be sent by December 31, 2018 to