514 564-9955

Archive for November 2017

November 27, 2017

GIPS Guideline Statement Outlines Proper Disclosure When Changing Benchmarks

Most would agree that benchmarks are fundamental to fair representation as they provide a point of reference for both performance and risk. As well, they serve as a focal point for the relationship between investor and manager as they assist in defining expectations (i.e. what is considered a success and failure). Given their importance, it
November 15, 2017

Existence of NAVs Does Not Dictate Manager Performance ‎Accuracy

Throughout our discussions with industry professionals a pervasive concept often emerges: a confusion between financial and performance accounting. In particular, when managers are asked whether they ensure the accuracy of their performance system’s outputs by annually reconciling their system, they often respond “no” citing that their administrator calculates net asset value (NAV). Notably, this answer
November 10, 2017

Bullying Runs Rampant Throughout Investment Industry

Society is afflicted by a bullying epidemic. ‎Though the investment industry is made up of fine, intelligent people from Wall Street, to London, Hong Kong and other parts of the world, many can attest to being the recipient of some form of bullying. Phocion’s mission is to assist the global investment industry to elevate its
November 9, 2017

Index Managers Require Skills that Benefit Investors Seeking to Avoid Excessive Fees and Under-Performance in Efficient Large Cap Equity Markets

A growing segment of investors desiring exposure to highly efficient equity markets (i.e. large caps in the U.S., Canadian and European markets) see little reason to seek alpha. Instead, they are content with owning cheap beta. For these investors, index managers are not paid to outperform and doing so would constitute a red flag. Rather,