by David Spaulding | Aug 26, 2015 | annualization, Investment Performance Guy, performance measurement
We teach how to annualize rates of return in our Fundamentals of Performance Measurement course. Invariably, someone will ask whether using trade days might be better than calendar days. I normally give a brief explanation as to why it wouldn’t, and then...
by David Spaulding | Aug 12, 2015 | discretion, GIPS, GIPS standards, Global Investment Performance Standards, Investment Performance Guy, performance measurement
Let’s face it, there’s a lot about the Global Investment Performance Standards (GIPS(R)) that can be confusing, and much is owed to some of the terminology that’s used. This post will only focus on one of those terms: discretionary, as in “all...
by David Spaulding | Jul 15, 2015 | cash flow timing, cash flows, Investment Performance Guy, performance measurement
Mixed Treatment of Cash Flows Today marks the third day of our three-part installment on handling cash flows. The first part saw us treat cash flows as end-of-day events and the second had flows as start-of-day events. To quickly summarize the challenges with...
by David Spaulding | Jul 6, 2015 | cash flows, Investment Performance Guy, performance measurement
As was mentioned in our previous post, one of the critically important decisions when it comes to calculating rates of return is how to handle cash flows. At a minimum, we need to contend with its timing. This is the second in a three-part series dedicated to...
by David Spaulding | May 21, 2015 | GIPS, GIPS Annual Registration, GIPS standards, Global Investment Performance Standards, Investment Performance Guy, performance measurement
Firms that claim compliance with the Global Investment Performance Standards (GIPS®) are now required to register with the CFA Institute on an annual basis. We’ve touched on this new requirement in both this blog and our newsletter, and had a webinar...
by David Spaulding | May 19, 2015 | arithmetic linking, geometric linking, Investment Performance Guy, performance measurement
I’ve opined on the subject of linking across gaps in the past. Recently, I’ve had discussions with a client who wants to be able to link the returns of securities, which were held at various times during a period. I think this is okay, as it would...
