The future belongs to GIPS Compliant Firms – FBNQuest Asset ManagementNovember 13, 2018 4:28 pm
In the bid to improve investor confidence and align with full transparency reporting standards in the global investment management industry, FBNQuest Asset Management, a subsidiary of FBN Holdings Plc has commenced the process of attaining compliance with Global Investment Performance Standards (GIPS).
GIPS are standardised guidelines created by the Chartered Financial Analysts (CFA) Institute to provide an ethical framework for the calculation and presentation of the performance history of investment management firms. The guidelines aim to ensure fair representation and full disclosure, and are used in assessing the ability of compliant firms to generate returns for investors.
Commenting on GIPS, the Managing Director, FBNQuest Asset Management, Mr. Ike Onyia said the adoption of GIPS standards in Nigeria will improve the investment environment and investors’ confidence in Nigeria. “FBNQuest Asset Management is voluntarily working towards claiming compliance, which reinforces our position as thought leaders in the investment management industry and as a transparent, performance-driven firm. This is line with our trailblazing spirit, and our consistent focus on excellence. For a company like ours that is looking to expand business with local asset owners and foreign institutional investors, the benefits are enormous”.
Speaking further, he stated, “The standards allow for a common language with which firms can communicate with investors, and serves as a measure of transparency that will encourage investors to trust the investment managers that serve them. It will be heartening to see an increased interest in GIPS in the country. I think as the Nigerian market matures, there will be greater motivation to adopt the Standards to enable firms compete better while also building a financial market that is transparent and dependable.”
GIPS standards are currently the highest in the industry, with 85 out of the 100 largest asset management firms in the world, claiming compliance for all or some of their Assets under Management (AuM). Since the Standards were first published in 1999, GIPS has become recognised as best-practice among investment management firms globally as investors are also able to compare historical data on the performance of different investment strategies.
This initiative by FBNQuest Asset Management is in keeping with its belief in transparency, and the commitment to defining new standards of excellence. In November 2017, FBNQuest Asset Management was rated number 1 in the BusinessDay Research and Intelligence Unit (BRIU) Transparency Index for Mutual Funds in Nigeria. The firm continues to strive to provide investors with high returns relative to the market’s performance, and remains committed to educating the investing public.