Meeting performance analysis and reporting standards
A growing global equity manager wanted to be able to demonstrate compliance with the industry’s Global Investment Performance Standards (GIPS) for calculating and presenting investment results — a competitive advantage that lets asset managers access a broader array of clients and opportunities. However, the firm lacked both the technology and the in-house expertise needed to establish and maintain a GIPS-compliant infrastructure. An incomplete performance track record was an additional hurdle.
Rather than bear the costs and inefficiencies of purchasing the necessary technologies, creating processes and workflows, and hiring experienced staff to oversee and manage the function, the firm outsourced its performance analytics and reporting to our service team, who:
- Established GIPS-based requirements for input data, calculation methodologies, composite construction, and performance reporting.
- Used Advent Geneva®, the industry’s leading portfolio accounting platform, to create performance composites and underlying accounts.
- Provided daily calculations of account and composite performance, as well as metrics for performance presentations.
- Filled gaps in performance track records by converting historical performance and geometrically linking that data to calculated returns.
- Expertise. Our deep experience enabled us to recommend best practices, employ best-of-breed technologies, and refer our client to industry-leading vendors such as ACA Compliance Group, a third-party provider of GIPS-compliance verification services.
- Comprehensive scope. Our services covered every aspect of GIPS compliance, including recommending firm policies and procedures and educating staff on the fine points.
- Flexibility. Our multi-asset, multi-currency solution accommodates unique data requirements and even daily composite changes.
- Investment insights. Customized performance analytics, delivered via our Manager Dashboard and enhanced by robust charting tools, help our clients evaluate and refine their investment strategies. Our Manager Dashboard provides instant and totally flexible access to the daily portfolio- , segment- , and composite-level performance data maintained in our data warehouse.
The results: Doors open to opportunity
The firm has successfully established an ongoing system for GIPS-compliance performance analysis and reporting, qualifying it to serve a broader range of investors. Having recently passed its second verification, it has now been verified as compliant from its inception through that date.