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...
Performance Perspectives Blog
Thoughts on performance measurement from David Spaulding and other members of our team.
Don’t Overlook the Draft GIPS Guidance Statement on OCIOs
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Is the SEC Silently Cheerleading for the GIPS Standards?
Thirty-Plus years ago, when the Association for Investment Management & Research (AIMR) launched its Performance Presentation Standards (AIMR-PPS®), the United States Securities & Exchange Commission (SEC) showed support, but never formally endorsed it. Now...
Six best practices to ensure proper distribution and tracking of GIPS® reports
The Global Investment Performance Standards (GIPS®) are a set of guidelines created to help firms calculate and report investment performance to their clients. Compliance with the GIPS standards is voluntary but is considered a best practice for firms looking to differentiate themselves and provide transparency to their clients.
One important aspect of GIPS compliance is the distribution of GIPS reports to prospective clients and/or prospective investors in a Limited Distribution Pooled Fund (“prospects”).
As verifiers, some of the most common deficiencies we see relate to the requirements around the distribution of GIPS reports. In fact, it’s at the top of our Common Mistakes list that we provide to all new clients.
This post may help you explain odd returns caused by the #coronavirus
Odd returns are surfacing, and the coronavirus is the culprit I'll confess to a bit of hyperbole or misdirected blame here. We can't really credit the coronavirus, but the markets have been extremely volatile, and whenever that happens, we are bound to see some odd...
Making sense out of nonsensical returns
My colleague, Jennifer Barnette, CIPM, suggested that this blog post from many years ago be published again. I was flattered that she felt it was worthy of reappearing. She was also kind enough to do some edits. It has been quite some time since I've done a blog post....
Modified Dietz as an alternative to the IRR: does it make sense?
One of those confusing things in the world of performance measurement: Modified Dietz Modified Dietz is one of the most commonly used return measures. Granted, Peter Dietz probably never referred to it as "Modified" (he called it "Day-Weighted," as opposed to...
Clarifying the dates: composite creation vs. composite inception date
A video to help explain the difference: composite creation vs. composite inception date With the introduction of the 2020 version of the GIPS(R) Standards, a new requirement is surfacing: for firms to report the composite's inception date. This is defined in the...
Annualization of returns: it’s more challenging than you may think
When it comes to the annualization of returns, most folks think that the rules are pretty straightforward and agreed by all. However, that truly is not the case. And, it is most notable when we're dealing with a "point-to-point" cumulative return such as June 15, 2016...
Who should take the lead on coming up with software design ideas?
In this video, I present my thoughts on who should take the lead when it comes to software design; that is, who should be the primary one to come up with the ideas for reports, screens, functions, etc. Having spent roughly three decades developing and designing...
Emotion in performance measurement
I'm going to be doing more "VBlogs" (Video Blogs), as I'm finding them an interesting way to share my thoughts and insights. This one deals with emotion in performance measurement, as stated in the title: that is, having some degree of enthusiasm, passion, etc. for...