February 12, 2004 09:00 AM Eastern Standard Time

CHARLOTTESVILLE, Va.—( BUSINESS WIRE )—Feb. 12, 2004—The Association for Investment Management and Research(R) (AIMR(R)) has issued for public comment a series of proposed revisions that together represent the most comprehensive and significant upgrades to the Global Investment Performance Standards, or GIPS standards, since their introduction in 1999.

Based on the principles of fair representation and full disclosure, the GIPS standards provide an ethical framework for the calculation and presentation of investment performance for firms in more than 25 countries in Europe, North America, Africa and the Asia Pacific. Investment management firms that comply with the GIPS standards allow clients, prospective clients and consultants the best opportunity to fairly evaluate the past performance of the firm. (Compliance is voluntary, but often a competitive necessity, since firms that do not report in a GIPS-compliant fashion are often excluded from competitive bids.)

In our view, the proposed revisions to the GIPS standards result in improved GIPS standards — a ‘gold’ standard that promotes the highest quality and most rigorous performance presentation and measurement practices and help eliminate the need for separate standards in different jurisdictions, commented Alecia Licata, vice president of investment performance standards at AIMR.

The public comment period will continue through Aug. 1, 2004. The final gold GIPS standards are expected to be issued in February 2005, but firms would have until Jan. 1, 2006 to comply with the new requirements.

Some of the most significant gold GIPS enhancements include requirements that, in order to claim compliance, firms must:

— provide a compliant presentation to all prospective clients;

— provide a list and description of composites to any prospect who requests it;

— have written policies and procedures used for compliance;

— abide by all guidance and interpretations, including the GIPS Handbook;

— conduct portfolio valuations at calendar month-end;

— be prepared to provide a compliant presentation for any of the firm’s composites;

— disclose that the calculation methods and valuation sources are available upon request;

— disclose any discretionary use of a sub-advisor; and

— disclose a description of the investment objectives, style and strategy of the composite.

In addition, under the upgraded gold GIPS standards, third-party verification of GIPS-compliance will become mandatory, as of January 1, 2010.

The decision to require verification comes after a thorough review of current global industry practices. Industry surveys indicate the majority of GIPS-compliant firms already have their claim of compliance verified, said Licata. We certainly understand that a responsible balance must be struck between ensuring the quality, accuracy and relevance of performance standards and maintaining an equitable cost of compliance for investment firms. Supporting the guiding principles of full disclosure and fair representation, however, demands that firms take this necessary step.

The proposed modifications to the GIPS standards were developed by the AIMR-sponsored Investment Performance Council, which has 36 members from 15 countries on five continents. The IPC’s members have diverse and in-depth investment experience, including members from firms of all sizes who specialize in mutual funds, private clients, pension funds, private equity, real estate, investment consulting services, performance measurement and performance verification.

About AIMR:

AIMR is the 68,000-member professional association that established AIMR Performance Presentation Standards (AIMR-PPS(R)), the US and Canadian version of GIPS, for North American firms in the early 1990s and led development of their global equivalent, the GIPS standards, in the late 1990s. But AIMR is perhaps best known as the worldwide administrator of the prestigious Chartered Financial Analyst(R) (CFA(R)) curriculum and examination program. AIMR’s membership includes 56,000 CFA charterholders in more than 100 countries, and 127 local professional societies in 46 countries. Headquartered in Charlottesville, Virginia, USA, AIMR also has offices in London and Hong Kong.

Contacts

AIMR

Kathy Valentine, APR, 434/951-5348