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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
Core Principles To Abide By for Effective Outsourcing
What processes are poised for outsourcing, and what areas should be kept in-house? These are the first questions investment managers should ask before delegating specific business processes to external providers. Outsourcing is complex, but abiding by these three principles will ensure your firm’s decision supports enhanced business operations well into the future.
by Benjamin P. Smith, Client Partner
Why It Pays To Analyze Data on Day One of a Business Transformation
When conducting a system-wide transformation, there are certain details that tend to be neglected. While some missing pieces can be less harmful than others, there is one that can derail your plans completely: Data.
Elizabeth M. Colebrooke, Senior Manager
Demystifying Sleeve-Level Reporting: Creating Operational Efficiencies While Satisfying Demand for Accuracy and Transparency
Today, many wealth management firms seek to find the right balance between meeting client needs and achieving scalability. Using model portfolios and technology to efficiently implement trade decisions across an entire book of business optimizes the operating model. However, this approach may cause significant hurdles when it comes to client reporting and Global Investment Performance Standards (GIPS®) composite reporting. This article dives into the concept of sleeves – what they are, why they exist, common performance reporting problems and how one technology provider aims to address these challenges.
by Tina M. Madel, CFA, Wealth Practice Lead
Blinded by Pageantry: the Perils of Neglecting Performance Data Readiness
Once the decision to replace an investment performance system has been made, most firms kick off the effort by mobilizing a formidable complement of resources, all charged with a single objective: selecting the vendor(s) who will make it so. Sponsors, steering committees, stakeholders, managers, experts and analysts are convened. RFPs listing thousands of criteria, elaborate scoring schemes, long lists and short lists are constructed. Initial and targeted demos, proof-of-concept, final selection, management approvals and contract negotiations are conducted. Boxes are ticked. This elaborate pageant commands vast amounts of both internal resources and calendar time — once the winner has finally been announced, a festive celebration is held, and backs are patted all around.
by Mark R. David, CFA
The Wave of Mandatory ESG Financial Disclosures Has Begun. When Will the Wave Hit the U.S.?
Over the past two years, the world has seen Environmental, Social and Governance (ESG) disclosure requirements grow at a rapid pace, and the first sets of ESG financial disclosures go into effect. Now, a trend of mandatory ESG financial disclosures has begun. From required stress tests in Q1 2022 mandated by the European Central Bank to New Zealand’s new law enshrining a global climate-related disclosure framework, 2022 will go down in history as a period of change. Here, we help investment managers understand mandated requirements and what U.S.-based companies can expect in 2022.
by Andrew R. Jacob, CFA, Consultant
2022 Industry Outlook: Investment Performance
Investment performance teams are under pressure to adapt to economic and market volatility amid rapid industry consolidation, operational outsourcing and technological disruption. When working with institutional asset managers, asset owners, wealth managers, insurers, and asset servicing vendors, Meradia has observed the impact of these trends firsthand. Here, we examine the forces at play and how the industry may evolve in 2022 and beyond.
by the Meradia Investment Performance Practice
U.S. ESG Disclosure Rules Are Coming. Here Are 3 Key Challenges for Investment Managers
ESG disclosure rules are evolving, and there is much uncertainty. While we await further developments in the U.S. and abroad, let’s explore potential challenges investment managers may face in complying with these regulations.
by Andrew R. Jacob, CFA, Consultant
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