Composites: Identifying Eligible Portfolios and Establishing Investment Strategies
Defining Discretion Let’s delve into the concept of defining discretion in managing portfolios. These restrictions on the investment process can vary widely, and they should be thoroughly outlined in the client’s Investment Policy Statement (IPS). While they serve as crucial…
Composites: Identifying Eligible Portfolios and Establishing Investment Strategies
Defining Discretion Let’s delve into the concept of defining discretion in managing portfolios. These restrictions on the investment process can vary widely, and they should be thoroughly outlined in the client’s Investment Policy Statement (IPS). While they serve as crucial…
Composite Time-Weighted Return Calculations
Composites are collections of different portfolios grouped together for tracking and measurement purposes. When dealing with composites, it’s essential to follow GIPS® standards diligently because they can potentially distort clients’ perceptions of performance and returns. According to the GIPS standards,…
Topics Related to Calculating Miscellaneous Returns
A firm may opt to report Money-Weighted Returns (MWR) instead of Time-Weighted Returns (TWR) if they have control over external cash flows and meet one of the following conditions: The portfolios have a closed-end, fixed life, or fixed commitment structure….
Time Weighted Return
Time weighted return (“TWR”) is a method of calculating portfolio returns via linking sub-period returns and adjusting for the effect of large external cash flows. Portfolios using TWR must be valued monthly. Portfolios must also be valued at the time…
Objective and Scope of the GIPS Standards
The Global Investment Performance Standards (GIPS)® are designed to promote honesty and accuracy in reporting investment performance. GIPS aims to eliminate deceptive practices in investment reporting and presentation, including: Misrepresenting expertise: Presenting returns of top portfolios as if they represent…
Asset Manager Code
Loyalty to Clients Place client interests before their own. Managers must establish firm policies and procedures that ensure client interests are given precedence over their own. This commitment should encompass all aspects of the Manager-client relationship, including investment choices, transactions,…
Study Notes for CFA® Level III – Ethical and Professional Standards – offered by AnalystPrep
Reading 29: Code of Ethics and Standards of Professional Conduct Los 29 a: Describe the structure of the CFA Institute Professional Conduct Program and the disciplinary review process for the enforcement of the CFA Institute Code of Ethics and Standards…
The General Principles of Conduct and the Asset Manager Code of Professional Conduct
Responsibilities to Clients The following is an excerpt from the 2022 CFA Institute Curriculum: The following are the responsibilities of managers to their clients. A manager must: Be professional and ethical at all times. Focus on the client’s benefit, not…
The Asset Manager Code of Conduct
The Asset Manager Code of Conduct (AMCC) is an extension of the Code of Ethics and Standards of Professional Conduct, but it applies to entire asset management firms rather than individuals. It’s relevant to asset managers overseeing client funds through…
