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 Asset...
Performance Perspectives Blog
Thoughts on performance measurement from David Spaulding and other members of our team.
Draft revisions to the GIPS Asset Owner Guidance Statement Planned
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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...
Announcement: Rates of Return (ROR) 101 Class to be presented July 27
A client asked us to construct a one-day class dedicated to rates of return. Unfortunately, we had to cancel. But, it took me hours, and hours, and hours (actually, more like days, and days, and days) to put it together. And rather than just forget about it, we...
Announcement: Performance Measurement Boot Camp (October 17-21, 2016)
Almost ten years ago, 25 investment professionals gathered in New Brunswick, NJ for an intensive week of performance measurement training at the first ever Performance Measurement Boot Camp. And while demand for this class has never gone away, we just didn't have the...
The truth behind geometric attribution and residuals
My friend, occasional sparring partner, Statpro chairman, and recently inducted member to the Performance & Risk Measurement Hall of Fame, Carl Bacon, CIPM and I recently engaged in a brief exchange via blog messages regarding the presence of residuals in...
True Confessions: my recent weight loss journey
I have two things to confess, right from the start: #1 - no, this picture isn't of me #2 - this is quite an unusual blog post for me. Okay, so now that this is settled, let's move on. I, like many men, have been struggling with my weight for a long time. When I was in...
How a book on the EU and the relating of Homer’s “The Odyssey” made it’s way to this blog, relative to money-weighting
On the first day of this long July 4th weekend, I'm reading a book that is quite timely, which just came in: "Towards an Imperfect Union," by Dalibor Rohac. It's excellent, simply excellent, and I'm learning a great deal. The author includes the following: "The role...