There was a time when we saw new GIPS® guidance statements introduced on a pretty frequent basis; so much so, many of us were overwhelmed by them.

Well, a new one was just introduced that addresses Outsourced Chief Investment Officers, or OCIOs.

If your firm or organization is an OCIO, or if you’re thinking of entering this market, it is imperative that you review this document and share your thoughts.

I’ve gone through it, and have lots to say. But here, I’ll be very brief.

WHAT HAPPENED TO THE BALANCE?

My initial reaction, even before reading it, was “why is it needed?” TSG performs annual GIPS standards verifications for a few OCIOs who managed to accomplish this (i.e., achieve compliance) without such guidance. Well apparently someone decided it was necessary, so it’s here to be viewed.

Since the Standards began, with the old AIMR-PPS®, 30 years ago, there has been an effort to strike a balance between being too vague and being overly prescriptive. In my view, this document has gone out of kilter, as it seems overly prescriptive, in terms of stating what composites an OCIO must have. 

There’s more to comment on, and we will do so in our formal response, which we will share with you at a later date.

Again, PLEASE have a look and comment. You have until November 20 [i.e., one month and one week from now (now being October 13, or Friday the 13th: perfect for Halloween month)].

And if your firm or organization is considering compliance, please contact Chris Spaulding at CSpaulding@TSGperformance.com or through our contact us page to learn how we can help.