2024 Asset Owner Survey: Transparency, Benchmarks, and the GIPS Standards

By Beth Kaiser Schwartz, CFA, CIPM

Posted In: Ethics, Global Investment Performance Standards (GIPS®), Pension Fund, Standards, Ethics and Regulations (SER), Survey, Uncategorized

How are global asset owners managing and reporting performance — and what role do the GIPS® standards play in their process? To answer these questions, CFA Institute conducted a global asset owner performance survey in collaboration with the GIPS Standards Asset Owner Subcommittee in the third quarter of 2024. The findings in the survey report reveal both encouraging signs of increased engagement with the GIPS standards and a diverse set of practices around performance reporting, benchmarking, and external manager oversight. From the broad use of both time-weighted returns (TWRs) and money-weighted returns (MWRs) to increasing expectations for GIPS compliance, the survey offers a detailed look at how asset owners are navigating transparency and accountability amid growing scrutiny and evolving reporting norms.

This latest survey builds on a 2020 US-based survey by CFA Institute in conjunction with the United States Investment Performance Committee (USIPC), which is the GIPS Standards Sponsor in the United States. The 2024 survey expands the scope globally, capturing perspectives from pension funds, endowments, insurance companies, sovereign wealth funds, and family offices across the Americas, EMEA, and Asia Pacific. Its aim: to better understand how asset owners approach performance measurement and reporting and how the GIPS standards factor into their evaluation of internal practices and external partners.

Nearly half of the 2024 survey respondents are headquartered in the Americas (48%), with 43% from Europe, the Middle East, and Africa (EMEA) and 9% from Asia Pacific.

A Few Key Takeaways

The vast majority (93%) of respondents have some level of familiarity with the GIPS standards.
Currently, 31% of respondents claim compliance with the GIPS standards. An additional 9% plan to claim compliance in the future.
When asset owners select external managers:
- More than two-thirds (68%) of survey respondents require or ask about GIPS compliance for liquid asset classes.
- 41% of survey respondents require or ask about GIPS compliance for illiquid asset classes.
Although most asset owners (56%) provide only time-weighted returns (TWRs) for total funds to oversight bodies, more than 40% of survey respondents provide both TWRs and money-weighted returns (MWRs).
Whereas 59% of respondents use only one benchmark, 41% use more than one. Some respondents indicated using three, four, or even five total fund benchmarks.

TIle for Global Investment Performance Standards (GIPS)

This survey offers a rare window into how asset owners around the world are approaching performance reporting, benchmarking, and GIPS® compliance. I was pleased to see that instances of asset owners demanding GIPS compliance and considering claiming compliance have increased and surprised with some of the other conclusions. Whether you’re an asset owner, consultant, or service provider, the findings can help benchmark your practices, uncover blind spots, and spark ideas for strengthening transparency and accountability.

Explore the full report for deeper insights and a detailed look at the data that’s shaping performance standards globally. Please respond to [email protected] with comments and questions.

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About the Author(s)

Beth Kaiser Schwartz, CFA, CIPM

Beth Kaiser Schwartz, CFA, CIPM, is a director of global industry standards at CFA Institute. She maintains the GIPS standards through management of the interpretations process, develops standards and guidance for new technical areas for firms and asset owners, and works extensively with volunteer committees. Kaiser Schwartz creates best practices for other performance-related topics as well. She also does outreach and education on the GIPS standards and other performance-related topics.