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...
Performance Perspectives Blog
Thoughts on performance measurement from David Spaulding and other members of our team.
Preparatory steps to GIPS Compliance
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Did you fill out the GIPS survey, yet?
GIPS Survey Time The GIPS(R) Executive Committee has posted a survey here, and they'd like your input. The survey will only take you a few minutes. One question they ask is what changes you'd make to the Standards. I offered three: Change the composite return from an...
Ranking financial advisers … actual performance doesn’t count
Ranking financial advisers ... skip their actual performance Many individuals and institutions rely on the help of financial advisers to assist them in making investment decisions. They go by a variety of names (and spellings), including registered reps, wealth...
Combining risk and return: how and where
Integrating risk and return Last week I moderated a panel on integrating risk and return at the Rimes User Conference in New York City. Rimes was celebrating their 20th anniversary, and did so in a grand fashion. Panel members were Sean Murray (Bisam), Steve O'Brien...
A Fundamental Rule of Contribution (Absolute Attribution)
Some background on the derivation of this fundamental rule of contribution (absolute attribution) I think it's worth providing some background into how this fundamental rule for contribution came about. I've been working with a client on their implementation of...
Draft revisions to the GIPS Asset Owner Guidance Statement Planned
This post, on the proposed changes to the GIPS Asset Owner Guidance Statement, was done by a guest blogger: John D. Simpson, CIPM. Last month, the GIPS® Technical Committee issued a proposed revised Guidance Statement on the Application of the GIPS Standards to...
Why we CANNOT link monthly standard deviation results to obtain annual
Linking monthly standard deviation has its root within the AIMR-PPS One advantage to being a bit older than most folks in performance measurement is that I have been exposed to a lot of ideas, and quite a bit of history. This includes the predecessor standard to...
Why revaluing for large cash flows is more difficult than it seems
The Global Investment Performance Standards (GIPS(R)) has evolved over the past several years. And some of these changes have been in regards to how to calculate rates of return. Today, revaluing for large cash flows is the minimum GIPS requirement. The reason:...
Changes in performance measurement
While Mark Twain might not have been totally correct, his comment no doubt applies to many folks and/or situations. But as for me, I think changes in performance measurement are generally welcome, as they mean improvements in what we do. The 3 Cs of Performance...
Cash returns: we can do this the easy way or the hard way
I think one challenge a lot of folks have is calculating cash returns. The problem stems from the intra-day flows that typically occur, from trades, contributions, withdrawals, income, FX transactions, etc. We recently had a conversation with a software vendor who is...