What does CVG mean in GENERAL

Country Version of GIPS (CVG) is a set of policies, practices and standards which require investment firms to provide comparable performance results for their investment products in different countries. It was created by the Global Investment Performance Standards (GIPS) Board as an international benchmark for measuring and reporting performance results. CVGs are designed to reduce country-related differences in the way performance is measured and reported.

CVG differs from GIPS in that it takes into account local regulations and conditions which may influence how investments are treated in individual countries. For example, some countries may restrict the type or amount of capital an investor can invest in certain asset classes, or limit access to certain products. CVGs therefore provide additional guidance on how performance should be calculated and reported when these restrictions are taken into consideration.

Yes, compliance with CVG can help firms demonstrate their commitment to providing clear and consistent performance information, which can significantly increase investor confidence in their product offerings. Additionally, compliant firms may gain competitive advantage over non-compliant competitors due to investors’ increased trust.

Country Version of GIPS applies to all entities involved in portfolio/investment management, including asset managers, broker-dealers, banks, insurance companies and pension funds among others.

While Country Version of GIPS was primarily designed for investments such as stocks, equities and other asset classes; it can also apply to derivatives including options and futures contracts as well as structured products such as hedge funds or exchange traded funds (ETFs).

Yes – prior adoption of Global Investment Performance Standards (GIPS) is recommended before a firm adopts its own Country Version(s) of GIPS. This helps ensure the firm meets international performance standards before customizing its policies further for specific national markets.

A firm should regularly monitor its compliance at least twice per year; however routine reviews should take place whenever there is significant change occurring involving relevant regulations, products or services offered or changes within personnel responsible for managing the portfolios/investments covered by the applicable country versions(s).

Not necessarily - depending on a country’s specific approved laws regarding portfolio/investment management many jurisdictions may choose not to adopt customized versions but opt instead for Global Investment Performance Standards (GIPS). In such cases regional variations would still need to be taken into consideration when calculating and reporting performance data while adhering strictly to global standards.

While existing staff can initiate the process using existing knowledge resources such adopting internal guidelines developed from past experience; external assistance may be necessary from time to time during strategic decision making processes requiring specialized expertise that individual employees may not possess.

Generally most organizations should be able to become fully compliant between 6-12 months depending on their complexity but more complex organizations could take up towards 18 months before becoming fully compliant. Additionally many countries have implemented regulatory requirements which must be met before obtaining full compliance.