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Reclaimable withholding taxes from foreign dividends and income present challenges for asset managers and asset owners. This paper examines operational challenges associated with investment performance calculations, specifically pertaining to a global portfolio with investments in multiple countries. Challenges discussed include jurisdictional nuances, uncertainty of collecting receivables, and delayed reclaims. Additionally, this paper addresses the advantages
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Unlocking GIPS® Compliance Benefits for Asset Owners
Introduction For asset owners, the investment performance function effectively serves the Chief Investment Officer (CIO) and Risk, both of whom have a vested interest in overseeing and optimizing the fund’s total performance and maintaining a cross-asset class view. The lack of access to complete and reliable data from asset class silos can hinder cross-firm evaluations
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Don’t Be Afraid of the Mesh
You cannot avoid hearing the term, but what is implied by the term ‘data mesh’? It is the latest step in architecture, governance, and data management evolution. We have lived (or view the history) through the databases to data warehouses, data virtualization, and then to data lakes and now lake-houses. Companies in our industry acknowledge the shortcomings of these frameworks, including accrued technical debt, ongoing and rising costs, and sprawling data lakes, which have not delivered the promised land to analysts and operational business users.
by Andrew Jacob, CFA
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Top 3 Reasons Why Asset Owners Should Claim GIPS® Compliance
Compliance with the GIPS standards is widely adopted within the institutional asset management industry as it is considered the industry’s best practice for calculating and reporting investment performance. Asset owners’ need for reliable and transparent investment performance when evaluating and hiring outsourced investment managers is a major reason for the rise in the Standards’ popularity. In recent years, the industry has seen a trend in asset owners’ turning their attention to their own investment performance reporting and adopting the GIPS standards. This movement has now gained momentum with CFA Institute’s release of guidance specific to asset owners to make adoption of the standards easier. Aside from better-fit guidance allowing for easier implementation, why are asset owners interested in claiming compliance with the GIPS standards?
by Alicia Spencer, CIPM, Senior Manager
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Composites: Considering the New SEC Marketing Rule and the GIPS Standards
The November 4, 2022 deadline for the new SEC Marketing Rule requires firms to create and maintain composites in order to market their performance. Many investment managers are looking to the Global Investment Performance Standards (GIPS®) for guidance and best practices, leading some to consider taking the necessary steps to claim GIPS compliance. Here, we address some of the most frequently asked questions about this process.
by Jonathan A. Boersma, CFA
Natasha E. Romanova, CIPM
Outsourced Chief Investment Officer (OCIO): Key Selection Factors
The Outsourced Chief Investment Officer (OCIO) space has grown dramatically during the past decade, with new institutions moving into the market daily offering OCIO services. Plans and endowments are dealing with changing investment mandates, complex market structures, hundreds of investment manager options, and challenges finding talent. Additionally, OCIOs are offering more and building models that support all types of delegated services and clients. For organizations, the number of choices and internal pressures can be daunting and difficult to navigate. The challenges include determining how to work with an OCIO provider, how to find the right fit, and how to implement and incorporate one into your organization. Meradia offers the expertise to help answer those questions, and to lead a successful transition.
by Joshua B. Levitt, Principal
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