Understanding GIPS Compliance
Global Investment Performance Standards (GIPS) provide investors with reliable, objective metrics to help you compare and evaluate investment managers
GIPS is short for Global Investment Performance Standards. The GIPS standards were introduced by the CFA Institute back in 1999 to provide assurance for investors who want reliable performance metrics based on the principles of fair representation and full disclosure. In short, they are ethical standards used to ensure full disclosure and help you evaluate and compare investment managers.
If your firm claims GIPS compliance, this means that it follows the highest standards in the industry on calculation methodology and reporting and has agreed to rigorous internal processes and procedures. If they don’t, ask them why.
It takes a lot to comply with GIPS standards. And it’s kind of a big deal. That’s because it means you’re working with a firm that is looking out for your interests and respects you enough to adhere to the highest industry standards.
As you’ve probably guessed, Azzad Asset Management is GIPS compliant. And we have retained the auditing firm Ashland Partners & Company to provide independent verification of our GIPS compliance. We also require all of our institutional money managers we engage to manage your assets to prepare their performance presentations in accordance with GIPS standards and to be third-party verified. It’s just another way we’re raising the bar for halal investing.