514 564-9955

January 17, 2018

Is Your Firm a Leader at Detecting Money Laundering?

As each year goes by the world becomes more and more complex. ‎With respect to the investment management industry we can point to many topics. Included in that list is the topic of money laundering. Regulators have made inroads at heightening prevention. However, they have no time to rest on their laurels as criminals will
January 11, 2018

Shhhhhhh…..the Big Secret: What the Industry Does Not Want to Divulge About Custodian, Administrator Output Accuracy

The degree of profitability for custodian and administrator service providers is predicated on keeping costs low and scaling the business with volume. Typically, many of these firms’ employees are tainted by certain stigmas: insufficiently trained, underpaid, poorly incented and over-worked. This is especially true in the case of public entities obsessed with meeting or exceeding
January 4, 2018

Considerations to Replace Portfolio Managers Run Aplenty – Investors Must Be Mindful Not to Pull Trigger Without Following Thoughtful Process

Heisler and Nipp (2017) produced a solid text that touches on the broad topic of investment manager selection inclusive of considerations and process about changing managers. In essence, they make the point of there being costs associated with switching investment managers, and that changes should only take place following a thorough process that incorporates both
December 31, 2017

Some Investment Proposals Produce Nightmares as Opposed to Providing Sound Solutions

High net worth investors are highly sought by investment professionals and are often presented with a slew of solutions, which can be overwhelming for them. Though a preponderance of professionals do make proper recommendations, several do not. This article will explore examples of sub-optimal investment recommendations. Beware of Poorly Performing‎, Highly-Conflicted Investment Offerings ‎When it
December 12, 2017

Private Equity Nuisances Require Ongoing Reassessment

The demand for Private Equity investment since the Financial Crisis has been nothing short of insatiable. Without question this segment of equity provides welcome portfolio diversification. Having said that, from time-to-time, it is most prudent to review a few of the items on Private Equity’s long list of nuisances. This article does just that. ‎‎Fees
December 6, 2017

GIPS Adoption Ensures That Managers Properly Select and Present Their Benchmarks

The adoption of GIPS standardizes performance measurement and reporting across the industry. One may argue that GIPS goes too far while others may say that it does not go far enough. This kind of debate is constructive and provides excellent feedback to the industry. Within the North American context we commend US-based managers’ GIPS adoption
December 5, 2017

No Room to Gamble With Fair Dealing Which Sits at Core of Market Integrity

The structure of client fair dealings is an investment industry practice that is often implemented in a sub-optimal manner. Treating investors fairly is at the forefront of reinforcing market confidence. Should the  preponderance of market participants deem themselves to be unfairly treated, the market will be prone to fall apart. ‎This article brings fair dealing
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