Resources

Navigating Actual vs. Model Net-of-Fee Performance

One of the more common questions we get asked by firms is whether they should use model or actual fees to calculate net-of-fee composite returns.  With the soon-to-be-implemented SEC Marketing Rule requirements for net-of-fee composite performance calculations, many firms will need to reconsider their current calculation methodology to make the best decision going forward.
August 12, 2021/by Janice Kitzman

FINRA Compliance: Calculating Private Equity IRRs

Now that it is a regulatory requirement, we are working with private equity/venture capital firms to review their IRR calculations and marketing decks to ensure they meet the requirements established in the FINRA 20-21 notice.
June 30, 2021/by Janice Kitzman

Pooled Fund Net Returns & Expense Ratios

Looking for a little distraction to kick-start the spring?  We are highlighting five top performance Q&A's focused on pooled fund expenses.



1. Someone said that the expense ratio should be annualized. What is the source for this requirement?
April 1, 2021/by Janice Kitzman

GIPS® Error Correction Basics

Einstein said to make mistakes, because that’s how we learn and grow. And we all make them. That’s why the GIPS Standards include error correction requirements to provide transparency in reporting after a material error has been made. Below are our answers to error correction questions from attendees at this past year’s GIPS Conference.
March 18, 2021/by Janice Kitzman

Money-Weighted Returns in Excel

Beyond “Don’t Use” – How (Not) to Calculate Money-Weighted Returns in Excel

If cost was of no matter, then asset managers would all own (fill in the blank with your favorite accounting system).  For emerging asset management firms, cost does matter.  When managing a start-up commingled fund, an investment firm only needs to calculate a single return stream to comply with best practices in the GIPS® standards.  It’s hard to justify a six-figure expense when Microsoft Excel is free, never mind the pitfalls.
November 13, 2018/by Kim Cash