As RIAs compete for institutional, OCIO, endowment, foundation, and high-net-worth mandates, standardized performance reporting is becoming more important in the due-diligence process. The Global Investment Performance Standards (GIPS), maintained by the CFA Institute, provide a voluntary framework for calculating and presenting investment performance. In 2026, stronger demand for transparent and comparable performance reporting is making GIPS readiness increasingly relevant for RIAs pursuing larger mandates.

What Does Firm-Wide GIPS Compliance Require?

GIPS compliance starts with defining the firm. The definition generally covers portfolios managed under the same brand and discretionary authority, and the standards must then be applied consistently across that definition. 

RIAs need documented policies covering valuation, performance calculations, composite construction, and recordkeeping. Selectively applying GIPS to only certain strategies is not permitted. This makes the initial firm definition one of the most important steps in building a compliant performance-reporting process. 

How Should RIAs Build GIPS Composites?

Composites group portfolios with similar investment mandates, objectives, or strategies. Every discretionary portfolio that meets a composite's definition must be included for the periods in which it qualifies.

GIPS requires monthly asset-weighted composite returns, while internal dispersion must be presented when a composite contains six or more portfolios. Firms also need to maintain records supporting the calculations and portfolio inclusion decisions.

Independent verification is not required, but it remains a widely used way to provide additional assurance that the firm's policies are designed and implemented in accordance with GIPS. For RIAs competing for institutional mandates, verification can therefore provide an additional credibility signal.  

What GIPS Disclosures Do RIAs Need to Provide?

GIPS reporting is not limited to performance numbers. Reports generally need to provide the firm definition, composite description, benchmark, and whether returns are gross or net of fees, along with other disclosures required by the applicable GIPS provisions.

The information also has to match the firm's actual policies and calculation methodology. Outdated benchmark descriptions, inconsistent fee treatment, and incomplete disclosures can create deficiencies even when the underlying performance calculations are correct.

What Are the Most Common GIPS Compliance Problems?

Common deficiencies include incomplete firm definitions, excluding qualifying portfolios from composites, inconsistent valuation or return calculations, outdated disclosures, and inappropriate treatment of simulated or model performance.

Remediation can require rebuilding composites, recalculating historical returns, updating GIPS Reports, and correcting the firm's policies and procedures. Firms using independent verification may also need to address findings identified during the verification process.

What Other Areas of Client Value Should RIAs Consider?

Performance reporting is only one way RIAs can demonstrate value to clients. Another overlooked area is securities class action recovery. Securities class action settlements totaled approximately $8 billion in 2025, creating significant additional value for eligible investors.

Platforms such as 11th.com automate the process from settlement monitoring and holdings matching to claim filing and payout delivery. For RIAs, this creates an opportunity to identify additional client value without adding another manual workflow to the firm's operations.

What Does GIPS Mean for RIAs in 2026 and Beyond?

For RIAs pursuing larger and more sophisticated clients, GIPS provides a structured approach to performance reporting, comparability, and disclosure. As demand for transparent performance information continues to increase, predictions suggest that GIPS implementation and verification will become increasingly relevant for RIAs competing for institutional and consultant-led mandates.

FAQ

What Is GIPS Compliance for RIAs?

GIPS is a voluntary CFA Institute framework for calculating, presenting, and disclosing investment performance on a firm-wide basis.

Is GIPS Verification Required for RIAs?

No. Verification is voluntary, although it can strengthen credibility with institutional clients and consultants.

When Is Internal Dispersion Required Under GIPS?

Internal dispersion is required when a composite contains six or more portfolios for the relevant period.

What Are the Most Common GIPS Compliance Issues?

Incomplete firm definitions, incorrect composite construction, calculation inconsistencies, and missing or outdated disclosures are common problems.

Why Does GIPS Matter for Institutional RIA Clients?

GIPS gives institutional investors and consultants a standardized framework for evaluating and comparing investment performance.