We had our March Performance Measurement Think Tank call earlier this week, and as usual, it was a good session of questions and polls. What did we cover? Discussion topics/questions included: Do GIPS requirements extend to third-party performance preparers? Is there GIPS guidance planned for ETF strategy managers? If I don’t register my firm’s claim […]
Read More Brinson-Fachler, CFA Institute, CIPM, ETFs, GIPS, GIPS standards, John D. Simpson, large cash flow, off-benchmark decisions, performance attribution, performance measurement, The Spaulding GroupBack in November, I spoke on GIPS and hedge funds at a conference hosted by Rimes. I was reminded the other day that I planned to share this video snippet here, but hadn’t gotten around to sharing the post. But, the topic is still quite relevant, so, here it is…
Read More CIPM, GIPS, hedge funds, John D. Simpson, performance measurement, RIMES, The Spaulding GroupWe had our September Performance Measurement Think Tank call earlier this week, and it was another interesting session of questions and polls. What did we cover? Discussion topics/questions included: What are we seeing in the industry with respect to software vendor consolidation? What is required/recommended with respect to intra-month valuations of alternative assets? What are […]
Read More alternative assets, attribution analysis, carve-outs, composites, credit default swaps, fair value, GIPS, interest rate swaps, John D. Simpson, performance attribution, performance measurement, Performance Measurement Think Tank, software vendors, strategy level tagging, The Spaulding Group, valuationsIn a previous blog post, I covered how one can make use of the statistics worksheet on the TI BA II Plus calculator to calculate standard deviation. In today’s post, I will cover the keystrokes for doing this on the statistics calculator on the HP 12C calculator. CIPM candidates are required to be able to […]
Read More CFA, CIPM, CIPM Expert, CIPM Principles, GIPS, HP 12C, John D. Simpson, performance measurement, risk measurement, standard deviation, statistics, The Spaulding Group, tracking errorReaders of my blog at the former location may remember that I covered this subject in a previous post… somehow that post did not get converted to the new location of the blog on this website, so I am re-addressing the subject here. Thus, most of the content is from the post on the previous […]
Read More CIPM, CIPM Expert, CIPM Principles, CIPM Program, GIPS, internal rate of return, IRR, John D. Simpson, money-weighted return, rate of return, return calculations, SI-IRR, since-inception internal rate of return, The Spaulding Group, time-weighted return, TWROccasionally when I am doing GIPS verifications, I come across situations where a firm has a fixed-life, fixed-commitment investment vehicle that they want to present performance for in compliance with the GIPS standards. Because the firm controls the external cash flows (in the form of capital calls), they want to follow the private equity provisions […]
Read More CIPM, CIPM Expert, CIPM Principles, external cash flows, GIPS, internal rate of return, performance measurement, private equity, rate of return, real estate, SI-IRR, TWRWhat’s new with the GIPS standards? CIPM Candidates should tune in to a webinar we’re hosting on February 5 @ 11:00 AM EST: What’s New With the GIPS Standards? While this webinar will not focus the CIPM Program, GIPS is, of course a significant part of the curriculum, and I believe there is likely to […]
Read More CFA Institute, CIPM, CIPM Expert, CIPM Principles, GIPS, GIPS interpretationsQuestion: do after-tax returns have to be labeled as supplemental information in GIPS compliant composite presentations? Answer: No. Explanation: Supplemental information is performance information that is not covered by the requirements and recommendations of the GIPS standards. If you search the requirements and recommendations of the GIPS standards, you may come to the conclusion that, […]
Read More after-tax performance, CIPM, CIPM Expert Level, GIPS, GIPS interpretationsSeveral years ago I coined the “3 Cs of Performance Measurement“: Confusion, Change, and Controversy. GIPS(R) (Global Investment Performance Standards) is all three, and today’s post will touch on the “confusion” part, specifically the seven most confusing things about the GIPS® standards. Confusing things about the GIPS standards 1. Discretion In my view, “discretion” deserves the […]
Read More composites, GIPS, Global Investment Performance Standards, verificationCandidates at the Principles Level and at the Expert Level in the CIPM program should be aware that the Code of Ethics and Standards of Professional Conduct require “covered persons” to remember their “Duties to Employers” – but also it should be remembered that duties to the employer do not require the covered person to […]
Read More CIPM, CIPM Expert, CIPM Principles, Ethics, GIPS, SEC, whistle-blowing