ACA Spotlight Blog

ACA Spotlight Blog

Compliance, risk, and technology insights and alerts for financial services
 

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Performance

 

Asset-Weighted Dispersion
June 26, 2018
A GIPS-compliant presentation contains a number of required statistics. One such metric is the internal dispersion of individual portfolios within a composite. The GIPS standards do not prescribe a specific methodology (as long as the measure that is selected is applied consistently) and thus many firms struggle with this calculation.
GIPS Standards Performance Record Portability
June 7, 2018
Portability refers to the ability of a GIPS-compliant firm to present a track record that was achieved at another firm. When one firm hires a portfolio manager, there is usually a desire to market the portfolio manager’s track record while employed at the prior firm.
Market Exposure
May 31, 2018
In 2002, the Sarbanes Oxley Act was enacted to augment the regulation of accounting and disclosures for public companies. This was in direct relation to aggressive accounting methods, the technology bubble, and other instances of corporate malfeasance.
GIPS Standards Q&A
May 17, 2018
The GIPS Standards Technical Committee recently released three new GIPS Standards Q&A’s that are all effective as of April 18, 2018.
third-party performance attestation
April 26, 2018
Consultant database reporting is an important business consideration for many investment management firms. The databases serve as a gateway for investment managers to reach institutional and retail assets alike. A recent trend in the industry is that of increased due diligence. The top databases are increasingly requiring firms to comply with the GIPS standards or receive an independent third-party certification of the track record.
Third-Party Performance
April 6, 2018
More firms continue to be implicated as fallout from the F-Squared Investments, Inc. enforcement action continues.
ACA White Paper GIPS Committees and Working Groups
April 2, 2018
Firms of all sizes frequently ask about the relevance and importance of forming a GIPS Committee within their organization.
Firm Notification Requirement
March 23, 2018
Firms that claim compliance with the GIPS standards are required to notify CFA Institute of their claim of compliance. Each firm must submit the GIPS Compliance Form annually by June 30.
GIPS Compliance & Verification
March 1, 2018
The decision to pursue GIPS compliance and verification is not always a simple choice. There are many moving parts within a firm’s compliance framework, and thus there are a number of important considerations that must be made before a firm can attain compliance with the GIPS standards.
asset managers
February 5, 2018
Last month I had the opportunity to moderate a panel at the PEI CFOs & COOs Forum in New York on “Performance Calculations: Does the PE Industry Need More Standardization?” The panelists were seasoned CFOs from respected private equity fund managers and exchanged engaging dialogue with over 100 attendees in the breakout discussion.
TWR vs. IRR
January 31, 2018
Investors and portfolio managers alike grapple with the best calculation methodology to use in performance measurement. We've created a fact sheet to help you distinguish the two primary measures: the time-weighted rate of return (“TWR”) and the internal rate of return (“IRR”).
GIPS
December 14, 2017
The Guidance Statement on Broadly Distributed Pooled Funds was approved on 13 March 2017.