by admin | Oct 18, 2011 | GIPS, Global Investment Performance Standards
Let’s start with a joke: As a salesman approaches a farmhouse door, he notices a three-legged pig hobbling about on the front porch. The salesman knocks on the door and is greeted by the farmer. Before making his pitch he asks “what happened to this...
by admin | Oct 14, 2011 | GIPS, Global Investment Performance Standards, Standard Deviation
A verification client called me with the following question: they have historically calculated dispersion around the composite’s return; however, their new GIPS(R) (Global Investment Performance Standards) system measures it around the average of the accounts...
by admin | Oct 10, 2011 | GIPS, Global Investment Performance Standards, net of fees
We received a question from a client recently, who cited the GIPS(R) (Global Investment Performance Standards) Fees Guidance Statement.On page 5 we find the following:Let’s focus on the sentence that reads “In these situations, it is most appropriate to...
by admin | Sep 28, 2011 | AIMR-PPS, GIPS, Global Investment Performance Standards
Brian Chapman (of KPMG, London) reminded me that the AIMR-PPS(R)’s view of composite return is that it’s “a single value that reflects the overall performance (the ‘central tendency’) of the set. The objective in reporting the returns of...
by admin | Sep 23, 2011 | GIPS, Global Investment Performance Standards
Earlier this month I posted a question regarding what the definition of “composite return” is. Given the importance of this value within the GIPS(R) standards (Global Investment Performance Standards), there should be an answer.I promised to expand on this...
by admin | Sep 14, 2011 | GIPS, Global Investment Performance Standards, verification
I stumbled upon an asset manager’s website this week, which served as a good example of some of the problems that exist within the world of firms claiming compliance with GIPS(R) (Global Investment Performance Standards).This firm apparently has undergone a...
