In the early 1990's AIMR developed and published Performance Presentation Standards (PPS) requiring investment managers to present to investors performance information that is complete, fairly presented and comparable across alternative managers and asset classes.

What about international markets?
To address the globalization of investment management, AIMR has developed Global Investment Performance Standards (GIPS). GIPS have been adopted by a growing list of 15 countries and makes investment performance comparable across international markets.

AMIR intends to extend the use of the GIPS beyond just stocks and bonds
AIMR is in the process of publishing additional sections of GIPS addressing fees, real estate, advertising, venture capital and private equity, leverage and derivatives. The objective of all this work is to allow for fairly represented, comparable performance numbers for all investable asset classes with full and complete disclosures for the prospective client's complete knowledge.

AIMR has also created Guidance Statements for major standards issues such as calculation methodologies, performance record portability, definition of firm, composite definition, carve outs, significant cash flows, and verification. All Guidance Statements and information concerning GIPS can be found on the AIMR web site (www.aimr.org ) under "AIMR Standards."

What is the effect of standards on investment management firms and systems?
New and evolving standards will put pressure on investment management firms to insure that their systems can support the increased complexity of AIMR PPS and GIPS. Increasingly investment firms are turning away from their legacy systems toward new more specialized systems to address their performance needs, often using multiple performance systems for multiple asset classes. There are 21 performance measurement systems now available. Remember, systems are not AIMR compliant but assist firms in becoming compliant. Global standards, complex new asset types, and risk management and attribution advances have put significant demands on these vendors. Several performance systems have come a long way in supporting AIMR requirements. Investment firms need to keep a sharp eye on developments for both performance standards and performance measurement systems.