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Investment industry standards setter the CFA Institute issued the latest version of its global investment performance standards on Tuesday, which introduces more flexibility and augments guidance for pension funds and other asset owners.

The new edition of performance reporting standards, which take effect on Jan. 1, 2020, is intended to be more useful for alternative investment managers and private wealth firms, the group said.

Among other things, the revised standards include a choice of using money-weighted or time-weighted returns; fewer specific requirements for asset classes, and more focus on account structure; and more tailored guidance for asset owners (such as pension plans and foundations).

“This update evolves the GIPS standards to reflect the many changes and innovations the investment industry has seen in recent years, particularly adding relevance for managers of alternative investment strategies and pooled funds,” Karyn Vincent, head of global industry standards at CFA Institute, said in a statement.

“The updates are based on industry best practice and input received during a public comment period. We believe the changes will empower more investment managers and asset owners to embrace investment performance transparency and industry-wide comparability,” she added.