Property fund managers will have a whole new set of regulations to deal with when global investment performance standards for property are introduced next year.
GIPS – which are a form of self-regulation, rather than a legislative measure – are already in place for both equities and bonds.
They are used to produce balanced performance measures that allow institutional investors to accurately compare the performance of different managers and funds.
The standards prevent fund managers from cherry-picking their best fund and time performances to improve apparent performance.
Property fund managers attending an IPF seminar last week heard that the costs involved would vary, but would be significant only where a fund manager was not already producing significant amount of performance data.
The IPF will look at updating the Property Performance Record it drafted in 1999 to take account of the new requirements.
