Your humble blogger has served in many a volunteer capacity and attended many a CFA related event at the society and institute level. They all have one thing in common: their production and content are first rate. This year’s GIPS® conference proved no different. After three years in the desert, so to speak, attendees and speakers gathered in a spirit of comity and good cheer at Boston’s Park Plaza Hotel to discuss the current state of global investment performance standards. Spirits were high and the sessions and exchanges lively as all were eager and happy to be intermingling.
CFA Institute’s CEO Marg Franklin opened with an inspiring message on the critical importance of performance reporting in the investment management process, highlighting the benefits of transparency and high ethical standards. Current CFA Boston President Heather Young kickstarted the event with verve and jocular self-deprecation. Exclusive of the thirty-one speakers, approximately 355 people attended the conference, filling the entirety of the hotel’s Grand Ballroom. The agenda was designed to keep current with recent developments. In particular, the applicability of the SEC’s new marketing rule to GIPS® reporting spanned two sessions. The growing prominence of ESG investing was the topic for ESG Attribution – Fact or Fiction? and Exploring Connections Between the GIPS Standards and ESG Standards. Navigating Ethical Questions in Performance was engaging, utilizing case studies to illustrate the application of the ethical decision-making framework. As attendees learned – and probably already knew – ethical dilemmas are not always clear-cut. One burgeoning area that is receiving increased attention is Outsourced Chief Investment Officer (OCIO) Performance where a lack of consistent and ascertainable reporting standards can be problematic. Confluence’s Chief Advisor Carl Bacon, CIPM, held forth on the forbears of performance measurement and analysis, a history lesson that at once informed and delighted. Performance analysis and data science have a long history with many contributors, from Sir Isaac Newton to Florence Nightingale over to Alan Turing. Carl interspersed the accomplishments of these personae with insightful discussion of various performance metrics. An homage to the late Sir Dennis Weatherstone, former CEO of JP Morgan who pioneered the use of Value at Risk, better to get a handle on the bank’s risk exposure in the 1990s was particularly interesting and inspiring, given the fact that Mr. Weatherstone joined the bank at the tender age of 16.
Attendees had access to the Cvent Events app to follow the sessions and participate in polls on various questions which enabled the speakers to offer teachable moments in real time. As one speaker intoned, the standards are about influencing and changing behavior. Factset was the lead sponsor. Performance consulting heavyweights Spaulding Associates, ACA, and Ashland were among the group of exhibitors. The panel discussions were well-paced, allowing for intermittent networking opportunities and discussions with the various exhibitors.
The meeting began with a highlight reel on the progress of performance measurement, known at its inception as Performance Presentation Standards. Candid footage of CFA Institute (AIMR) staff and volunteers that included session outtakes made for enjoyable viewing and a good way to launch the conference. Wednesday’s final session addressed GIPS® help desk scenarios. Karyn D. Vincent CFA, CIPM Senior Head, Global Industry Standards at The CFA Institute concluded the proceedings, thanking the many volunteers and reminding the audience that opportunities to volunteer would become available in the spring.
Application of the global investment performance standards is evolving art and science. Its future will be anything but uneventful.
Rooms with a view
The Grand Ballroom at the Park Plaza amply accommodated conference presenters and attendees.