Automation in GIPS® Compliance: Lessons from the Frontlines

Composites Insights Series

Gain valuable insights on how automation enhances composites management, simplifies verification and ensures compliance with evolving standards.

As Global Investment Performance Standards (GIPS^®) continue to evolve, asset managers face mounting pressure to maintain compliance while keeping up with the SEC’s Marketing Rule and growing client demands. In our recent webinar —”Leveraging Automation to Maximize the Benefits of GIPS Compliance” — hosted by TSG, Confluence Technologies joined forces with Dennis Lim from AXA IM and Ashley Reeves from TSG to explore how automation is transforming the compliance landscape.

Why automation is no longer optional

If your firm is large enough that you can’t name all your composites from memory, you probably need automation.

Dennis Lim, Senior Performance Analyst at AXA IM

AXA IM, with over €800B in AUM and over 300 composites, relies heavily on Confluence Technologies’ composite solution. Lim emphasized how the platform underpins every step of their GIPS workflow—from account-level return calculations and automatic composite membership to generating reports and managing error corrections.

The key benefit? Automation enables consistency, data integrity, and scalability—allowing AXA IM to confidently manage its vast portfolio structure without the risks of manual error.

Automation enhances verification efficiency

Ashley Reeves echoed the value automation brings—especially from a verification standpoint.

Firms using Excel often face larger sample sizes during verification. Automated systems help reduce that burden, allowing verifiers to focus on actual analysis instead of data cleanup.

Ashley Reeves, a seasoned verifier at TSG.

Reeves praised automation’s role in improving data quality, reporting transparency, and reducing the time required for verifications. Features like clean composite membership tracking and robust reporting exports directly benefit verifiers—and their clients.

What the future holds: model testing, sleeves, and AI

Looking ahead, Lim pointed to the SEC’s requirement to test actual vs. model net returns as a prime opportunity for automation. Currently, many firms—including AXA IM —still resort to Excel to run these tests.

Automating actual vs. ModelNet testing would be a game-changer, especially for European firms that don’t consistently capture actual fees.

Sleeve-level performance and multiple net return streams are also rising in importance. Confluence’s system supports both, helping firms align with GIPS 2020 and SEC Marketing Rule expectations.

Both Reeves and Lim also acknowledged the promise—and limits—of AI. While tools that review marketing materials and flag rule violations are emerging, Lim noted:

AI still hallucinates. Until that risk is minimized, a human will need to validate any output.

Standardization, scale, and strategy

As asset managers face increasingly complex regulatory environments and larger datasets, the business case for automating GIPS compliance is undeniable. From reducing manual burdens and errors to streamlining verification and improving reporting accuracy, automation allows performance teams to focus on analysis—not admin.

How Confluence Technologies empowers firms

Confluence Technologies is leading this evolution by helping clients like AXA stay compliant, agile, and audit-ready—today and into the future. The company provides a sophisticated automation-driven solution to help firms navigate the complexities of GIPS^® compliance effortlessly. By integrating automation into composite reporting, firms can significantly reduce manual workload while ensuring compliance with both current and future industry standards.

Ready to optimize your compliance approach?

Learn how Confluence Technologies can support your firm’s GIPS^® compliance journey.

Learn more