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BNY Mellon Asset Servicing announces new service for composite management

Posted: 13 August 2008

BNY Mellon Asset Servicing has introduced a new service for investment managers and financial institutions that comply with the Global Investment Performance Standards (GIPS) in their reporting process.

Introduced by the CFA Institute to improve transparency, the GIPS standards are a set of voluntary, industry-wide guidelines for investment firms outlining how to calculate and report investment results to prospective clients. The goal is to provide investors with a fair representation of historical performance, allowing them to evaluate investment managers and returns on an apples-to-apples basis. More than 25 countries in North America, Europe, Africa and the Asia-Pacific region have adopted GIPS, and the majority of global asset management firms are GIPS-compliant.

Composites - a collection of funds with similar investment mandates - are a key area of the GIPS standards. Each discretionary fee-paying fund must be allocated to at least one composite. The funds within a composite are then aggregated, providing a composite return to form a track record, and thus creating the historical performance that investors use to evaluate an investment manager.

"We've been pleased with the level of service, customization and attention to detail that BNY Mellon's Composite reporting has offered us, and the convenience of on-line access is an added value," said Amy Pisano, marketing coordinator at NorthPointe Capital LLC.

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