The Association for Investment Management and Research completed a draft of global performance presentation standards for international money managers.
The standards are an effort to create a single set of rules for presenting investment management results around the world, said Michael S. Caccese, general counsel for AIMR, Charlottesville, Va.
There are two chief reasons behind the worldwide standards, said Mr. Caccese. Multinational investment firms want a single standard for their various markets, and the development of investment management industries around the world is leading groups to adopt different standards, which could lead to a confusing mix of rules similar to the situation now existing among accounting standards.
The standards will be similar to current AIMR standards used by U.S. managers but address several country-specific issues, such as the Japanese use of book-value accounting instead of market-value accounting.
The AIMR standards are favored by many overseas managers because the firms want to enter the U.S. market and U.S. clients increasingly are requiring AIMR-compliant performance, he said.
The rules will be reviewed and then circulated to investment associations in various countries for comment through October. A final version should be completed in 1998, and Mr. Caccese said he expects the standards will be effective by 2000.
Mercedes M. Cardona