AIMR Seeks Comments on Global Standards

AIMR has issued a request for public comment on 11 specific modifications, additions and deletions that it is recommending to the AIMR Performance Presentation Standards (AIMR-PPS).

Seventy-five percent of American and nearly two-thirds (65%) of Canadian investment managers use these voluntary standards to calculate and market their performance, according to the organization.

The standards allow investors to make “apples-to-apples” comparisons of performance among different investment management firms.

AIMR says the impact of the changes should be minimal, since the newer global standards were based on the AIMR-PPS standards in North America to begin with. 

The proposed changes deal with:

• fee-schedule disclosures
• disclosure of business and personnel activities that could impact a firm’s investment performance
• risk disclosures
• verification methods.

“The proposed changes are an important next step in supporting the convergence to one worldwide performance standard. With rapid globalization of the investment industry, it is important that managers complying with the North American standards have a `passport’ to compete on an equal footing, anywhere in the world,” said Jessica Mann, AIMR’s vice president for standard-setting.

The public comment period will continue through December 31.

– Nevin Adams               editors@plansponsor.com

You can find a detailed explanation of the changes, along with instructions on how to submit written comments at www.aimr.org/standards/pps .