Tag Archives: Global Investment performance Standards

2017 GIPS Survey

Have you had a chance to participate in the 10-question survey that was released earlier this month? The results of the survey will aid Ashland Partners in assessing some of the challenges of being a GIPS® compliant firm. The survey will close this Friday, March 31.

If you do not claim compliance with the GIPS Standards, you can help us by answering the first two questions so that we can gather data on those reasons.

https://www.surveymonkey.com/r/PGDFPPB

Thank you again for taking a quick moment to reply to this survey. We look forward to sharing industry best practices with you soon.

2017 GIPS Compliance Form Now Available

This feature contains important information about the GIPS® firm notification requirement. Specifically, we will cover:

  1. Important information on what is required and not required with respect to completing the form;
  2. New information concerning some of the form’s optional information;
  3. New information regarding firms that have previously submitted a claim of compliance;
  4. A change in procedure regarding submitting corrections to CFA Institute; and
  5. A look at what is anticipated in the future regarding this requirement.

Continue reading 2017 GIPS Compliance Form Now Available

2016 GIPS® Compliance Form Now Available

The enhanced, user-friendly GIPS compliance form is now available for submission. The new form features an improved confirmation screen listing all information submitted as well as an email confirmation to facilitate firms’ recordkeeping. The deadline for firms to notify CFA Institute of their claim of compliance is 30 June 2016 with information as of 31 December 2015.

For questions related to this requirement, please contact: gipscompliance@cfainstitute.org.

The Principles for Investment Reporting

By Geoffrey Allan Hecht

Most investment advisers are familiar with the Global Investment Performance Standards (GIPS®), which are a set of ethical standards that address transparency issues regarding performance measurement and presentation to prospective clients. As beneficial as GIPS is with providing guidance on full disclosure and fair representation to prospective clients, it does not address reporting for existing clients.  The Principles for Investment Reporting (Principles) were created by CFA Institute and its Investment Reporting Working Group to bridge the gap between the information that preparers of investment reporting (investment advisers, custodians, etc.) intend to provide and the information that users of the investment reporting (investors, consultants, etc.) expect to receive.  These Principles are meant to create transparency for existing clients and ensure client reports either include sufficient information or indicate where this information can be obtained so that existing clients understand the contents of the report and the reasons behind the selection presented.  There is no intent to restrict or define what information should be included in client reports.  It is also important to note that the Principles are not part of the GIPS standards. Continue reading The Principles for Investment Reporting

Ashland Assist Improves Productivity

By Travis Morgan, CFA, CIPM

In September, Advent Software and Ashland Partners announced the release of the Ashland Assist Extract report. Since then, we’ve received positive feedback from firms that have started using it, mainly how much time the report is saving them. Continue reading Ashland Assist Improves Productivity

Ashland Partners and Advent Software Release Ashland Assist

Ashland Partners & Company LLP and Advent Software have co-developed the Ashland Assist extract to support the GIPS® verification process through increased automation of data extraction for Ashland Partners’ clients.

Ashland Assist is designed to minimize the number of reports that are needed for verification, greatly increasing the clients’ efficiency in fulfilling Ashland Partners’ sample requests. Ashland Assist will enable clients to extract holdings, transactions, revaluation details and other composite-level statistics while minimizing the need for additional requests and follow-up.

“Ashland Partners is pleased to have joined with Advent Software to provide this unique tool to increase efficiency and reduce the need for additional requests during a verification. When used with the Ashland Performance Extract, Ashland Assist will now allow our clients to manage fewer reports to fill Ashland Partners’ data requests. The increased efficiency for both the client and Ashland Partners will enable smoother verifications and a quicker turnaround of the verification opinion,” said Jason Millard, CFA, CIPM, Partner at Ashland Partners.

For more information on how to incorporate this utility into your verification procedures, please contact Travis Morgan at 1.541.842.8405 or travis@ashlandpartners.com.

Managed Accounts in 401(k) Plans: Can the GIPS® Standards help support a plan sponsor’s due diligence process?

In June 2014, the U.S. Government Accountability Office (GAO) issued a letter to the House of Representatives’ Committee on Education and the Workforce regarding the use of managed accounts in 401(k) plans. The letter was based on extensive research conducted to determine how service providers structure managed accounts, the advantages and disadvantages of managed accounts for 401(k) plan participants, and the challenges plan sponsors face in selecting and overseeing managed account providers. A number of issues were noted, including limited fiduciary liability for managers of this service compared to other product offerings, inconsistencies in the fees and service offerings from managed account providers, and a lack of adequate performance and benchmark reporting from managed account providers to plan sponsors.

While regulations regarding fiduciary duty may be beyond the control of plan sponsors, steps should be taken by plan sponsors to conduct due diligence on their managed account providers by comparing their provider’s investment processes, historical performance, and fees charged to other available providers, to ensure their plan’s participants are getting the best service available for the fees charged. Given the issues noted in GAO’s report and the lack of guidance yet to be issued by the DOL, industry best practices for standardizing the reporting of returns-based performance information, such as the Global Investment Performance Standards (GIPS®), should be utilized to help ensure a meaningful comparison between firms is made during the due diligence process.

Please watch our recorded webinar on this important topic to learn more.