Discuss what the GIPS standards aim to achieve, whom they cover, and how they help investment managers as well as prospective clients and investors

The GIPS standards are voluntary, ethical principles for calculating and presenting investment performance, built on fair representation and full disclosure. They aim to give prospective clients accurate, comparable information across firms and countries, to promote investors' interests, and to let firms compete globally on an equal footing under self-regulation. Compliance applies to the whole firm rather than selected products, and the standards contain provisions for investment firms, for asset owners reporting to their oversight bodies, and for verifiers. Prospective clients gain confidence that a record has not been cherry-picked and can compare managers on like terms. Firms gain credibility, access to searches that require compliance, and stronger internal controls and data processes. Compliance signals fair presentation, not good or repeatable returns.