It came to my attention yesterday that a new GIPS(R) (Global Investment Performance Standards) rule is being introduced into the GIPS Handbook regarding the treatment of significant cash flows (SCF): compliant firms will no longer be able to use the "number of...
Performance Perspectives Blog
Thoughts on performance measurement from David Spaulding and other members of our team.
A new GIPS rule being introduced in a non-standard way
read more
What is the difference between functions and features?
John Simpson and I are spending this week working on a new service which we will introduce later this year (stay tuned for details!). During the course of our conversation, a question arose: what's the difference between functions and features? I must confess that I...
A skill worth learning: the phonetic alphabet
There are a lot of benefits to spending time in the military, and one that's not often thought of is the requirement to learn the phonetic alphabet. What's the phonetic alphabet? The phonetic alphabet is essentially reciting the alphabet with words rather than...
Will 2025 Usher in “The Great Fixed Income Decade?”
Bonds continue to be poorly understood and underutilized, especially among risk managers and performance analysts. Our session on maximizing the value of the fixed income investments within the asset owner portfolio dispels the misunderstandings regarding how bonds are issued, traded and allocated in multi-asset portfolios.
A bit of history on the NYSE
When I was an undergrad there were only two subjects I considering majoring in: history and mathematics; I chose the latter, but have continued to enjoy the former. In today's Wall Street Journal, Jason Zweig begins with a reference to the possible NYSE Euronext and...
Risk management gone amuck
By now you're aware of Washington's funding of Solyndra, the now bankrupt energy company that received something north of a half billion dollars in government loans. In Wednesday's WSJ, Deborah Solomon had an article ("Solyndra Said to Have Violated Terms of Loan")...
10 Key points about rates of return
At the core of performance measurement is the rate of return. While we are often distracted by attribution, risk, and the Global Investment Performance Standards (GIPS(R)), the ROR is fundamental. And so, there are some key points we should agree on. 1. Use...
Guidance Statement for OCIO Portfolios – TSG’s Key Takeaways and Summary
The CFA Institute has introduced a new Guidance Statement specifically for Outsourced Chief Investment Officer (OCIO) firms, providing a tailored framework designed specifically for OCIOs under the broader Global Investment Performance Standards (GIPS®)
Preparatory steps to GIPS Compliance
Steps to GIPS compliance, if you're not quite ready to comply We were recently asked the following: “Do you have any recommendations or best practices we should be employing now to provide an easier transition to GIPS® reporting in the future?” I guess we'd call these...
Valuing securities with stale prices for GIPS compliance
I am preparing to meet with a hedge fund client who wants to comply with GIPS(R) (Global Investment Performance Standards). As part of this preparation I am revisiting the recently published Guidance Statement on Alternative Investment Strategies and Structures. This...