On Friday, Pinnacle Advisory Group completed an extensive, independent verification of our GIPS presentation for the period of November 1, 2002 through December 31, 2011. This confirms that our firm presents performance in full compliance with the GIPS standards. In the investment world, that’s big news.
You see, a lot of financial firms try to spin their investment performance numbers in an effort to make them look better than they actually are — and the law gives them a lot more leeway than you would think. Because most consumers have neither the time nor the expertise to fully evaluate those claims, they often fall prey to deceptive or confusing marketing
That’s why in February 1999, the Association for Investment Management and Research (now known as the CFA Institute) created the Global Investment Performance Standards (GIPS) — a standardized, ethical, and industry-wide means of reporting performance numbers. Firms that are GIPS compliant are held to a standard of integrity and clarity that is much too rare in the investment world.
Here at Pinnacle, we’re committed to the idea that the relationship between a client and his or her financial advisor must be founded on trust. That’s an easy thing to say (and a lot of firms do), but we back it up with action. Our GIPS compliance is one more indication of that.