Countdown for OCIO Portfolios to Comply with the GIPS Standards Newest Guidance Statement

The landscape of Outsourced Chief Investment Officer (OCIO) portfolios has evolved significantly over the past few years, driven by the increasing demand for standardized performance reporting and compliance. As a result, the CFA institute published a guidance statement to help OCIO firms claim compliance with the Global Investment Performance Standards (GIPS^®), with an effective date of December 31, 2025.

Why comply?

The U.S. Securities and Exchange Commission’s (SEC’s) Marketing Rule, which came into effect a few years ago, has influenced the push for standardized performance reporting. The rule requires firms to present performance with full disclosure and fair representation, moving towards compositing performance rather than relying on model performance or representative accounts. As firms look to adopt and improve internal practices around the presentation and calculation of performance, the GIPS standards can offer a roadmap to address common challenges OCIOs face when presenting performance. Consequently, there has been a growing trend of OCIO firms claiming GIPS compliance, with many top OCIO firms already adopting these standards.

Additionally, asset owners have been increasingly turning to OCIO firms to manage their assets due to limited in-house resources. Search consultants play a crucial role in this process, helping asset owners find the best fit for an OCIO firm. The lack of consistent performance reporting standards has made it challenging for search consultants to compare results from different OCIO firms, leading to frustration among both parties.

The Global Investment Performance Standards Guidance Statement for OCIO Portfolios looks to address these inconsistencies by standardizing practices and enhancing transparency. These standards provide a reliable framework for presenting investment performance, which is crucial for asset owners and plan sponsors when evaluating investment managers.

Download a timeline for compliance

Any firm claiming compliance with the GIPS standards while managing one or more OCIO portfolios must adhere to the Guidance Statement for OCIO Portfolios. The new requirements become effective December 31, 2025. We’ve created a template timeline to guide your firm towards full compliance by the end of the year.

Download

Additional information about the guidance statement

We recently hosted two webcasts to help you navigate the requirements outlined in the Guidance Statement. Click below to watch the webcasts on demand.

• Guidance Statement for OCIO Portfolios: What you need to know
• Trends in the Application of the Guidance Statement for OCIO Portfolios: How Are OCIO Firms Applying this New Policy?

How we help

Navigating the complexities of the Guidance Statement and ensuring GIPS compliance can be challenging for OCIO firms. We offer a comprehensive suite of services designed to help OCIO firms address these evolving requirements with confidence.

• Composite maintenance and calculation outsourcing: We can manage the entire GIPS compliance process, including composite maintenance, data validation, and GIPS standards’ reporting, enabling your team to focus on strategic priorities while we handle compliance with precision and efficiency.
• GIPS standards gap analysis: We can conduct a detailed assessment of your investment performance framework, identifying gaps specific to the GIPS standards and OCIO Guidance Statement while providing actionable recommendations to align your policies and reports with new requirements.
• GIPS standards consulting and verification: We can provide internal and external assurance with GIPS compliance consulting and verification. Verification is conducted on an annual basis looking at the prior periods as required by the GIPS Standards for Verifiers.

Reach out to your ACA consultant, or contact us here to learn how we can help you launch, grow, and protect your firm.