Rathbones achieves top performance reporting standard

Rathbone Investment Management has achieved the CFA Institute’s top standard for investment performance reporting.

It means Rathbones has verified the past five years of risk management and returns from its 70,000 client portfolios and had them audited by EY.

Achieving the Global Investment Performance Standards accreditation gives the wealth manager’s 41,000 clients complete assurance that Rathbones’ information is accurate.

Rathbones head of investment management Paul Chavasse says “the pursuit of excellence” is part of the firm’s ethos.

“We have always placed emphasis on transparency, accountability and credibility when discussing investment performance,” he explains.

“Very few of our competitors have secured this important kite mark and we believe this demonstrates our willingness to seek out and achieve best practice in discretionary investment management.”

Insitutional firms and their subsidiaries have the qualification, while few, if any, smaller private client managers have GIPS, Chavasse says.

Rathbones has been working on implementing a performance management system for the better part of a decade and the GIPS accreditation is the culmination of the work, he says.

It gives internationally recognised credibility to the firm’s processes, he says.

US-based CFA Institute head of professional standards and executive director of GIPS Jonathan Boersma says take up of the accreditation in the UK has been particularly strong among institutional firms.

“Among the smaller firms – the private wealth and small-type firms – there are some that are compliant but probably a little less prevalent than in the institutional space,” he says.

“And a lot of that is because the high net wealth investors don’t even know what the GIPS is and they don’t know to ask for it.”

The standard is important to retain the credibility of the industry and allow investors to fairly compare between two asset managers or investment strategies, he adds.

“There’s nothing so complex within the GIPS that you can’t do on a basic spreadsheet, but it does take some time and commitment to document the firm’s standards and procedures.”

The GIPS was created by the CFA Institute in in 1999. It was updated in 2006 and again in 2010.