The ability to raise capital is one of the most significant challenges faced by investment managers.
The ability to raise capital is a significant challenges faced by investment managers.
Investment managers can managetheir users’ need to receive a historical performance track record in several ways. The most straight-forward way to do this is to prepare a summary of the investment manager’s historical performance verified by an independent accountant.
The performance record will include the independent accountant’s report, the performance track record summarized in tabular format and supporting notes to provide a description of the return calculation methodology and other information pertaining to the investment manager or account owner that may be relevant to the potential investors.
Alternatively, an investment manager may choose to prepare a Global InvestmentPerformance Standards (GIPS) report. GIPS area “set of standardized, industry wide ethical principles that guide investment firms on how to calculate and report their investment resultsto prospective clients.”
A GIPS report typically consists of:
How can KPMG can help
KPMG can perform a number of services for investment managers seeking performance track record verification. These include: