Our Knowledge Leadership

Global Investment Performance Standards (GIPS®): A new definition of transparency

Global Investment Performance Standards has emerged as the global benchmark for investment performance measurement and reporting. GIPS are “a set of standardized, industry-wide ethical principles that provide investment firms with guidance on how to calculate and report their investment results to prospective clients.” They have been designed to be the premier set of standards globally, representing best industry practices in “quantifying and presenting investment performance that ensure fair representation and full disclosure.” GIPS delivers compelling value for investment managers as they enable institutional investors to compare manager performance against a single set of global standards. In addition, adhering to such standards enables firms to demonstrate the quality of their reporting and their strong internal control policies. (www.gipsstandards.org) Download the PDF

Exchange Traded Funds: Leveraging insight to deliver operational efficiency

Since the early nineties, Exchange Traded Funds (ETF) have been playing an increasingly prominent role in the portfolios of institutional and retail investors alike. Liquidity, transparency and the fee structure of ETFs have given them a presence and appeal that resonate well in today’s highly volatile market. Risk focused managers are looking to ETFs as a source of diversification and hedging. Institutional investors see the potential of being a market maker. Sophisticated retail investors understand the accessibility and leverage that ETFs can offer. Collectively the appeal has resulted in a more than 200 per cent increase in assets in Canada since June 2006. Download the PDF

Redefining collaboration: From custodian to asset servicing provider

With the looming possibility of a double-dip recession and the lingering lessons of the financial crisis, institutional investors are actively seeking ways to boost performance while managing significantly increased reporting and accountability requirements. Though creating returns for investors while appropriately managing risk remains the central focus, institutional investors are seeing more and more of their time taken up in reporting to regulators, governments and their own internal stakeholders. Risk management, transparency and good governance are no longer mere buzz-words, but are now requirements for participating in the global capital marketplace. Download the PDF

Institutional investors from around the world count on CIBC Mellon to settle trades quickly, identify and correct issues promptly and reconcile accounts precisely.  The accurate execution of time-sensitive investment strategies is central to the management of any institutional investment portfolio. This trade settlement process hinges on the provider having a well-established connection with its central depository for securities. Canada’s central depository, Canadian Depository for Securities Ltd. (CDS Ltd.) supports the smooth operation of the Canadian capital market, maintains a clear view to market changes, and provides market participants with the information they need. CIBC Mellon’s relationship with CDS goes beyond trade settlements, however: we collaborate with CDS to develop industry standards and introduce operational efficiencies in the capital markets that support our clients’ investment management needs. Download the PDF

IFRS: A changing landscape for Canada

The International Financial Reporting Standards (IFRS) were developed as a response to the growing need among companies and institutional investors worldwide for uniform standards around accounting, reporting and financial statement interpretation. As companies continue to expand their operations outside their home country, a common set of standards ensures consistency of information and empowers auditors, analysts and regulators with the transparency necessary to compare companies and make informed assessments. Founded on April 1, 2001, IFRS have quickly been adopted on every continent with new countries regularly coming on board. In early 2008, Canada’s Accounting Standards Board (AcSB) announced the implementation of IFRS. Since then, CIBC Mellon has been working closely with its clients to assess these changes and develop solutions that meet clients’ accounting and reporting needs during the transition and well into the future. Download the PDF

Basel III: Update and implications to Canadian investors

Across the globe, organizations are beginning to react to the new, more stringent regulations required as a result of Basel III. Firms in all sectors of the financial services  industry are looking closely at the new capital requirements and working to understand the impacts of the redefinition of capital and how best to achieve and maintain the minimum requirements. Canadian regulators, working closely with the Basel Committee and the Bank for International Settlements, are looking to Canadian financial institutions to act responsibly and continue making prudent decisions. CIBC Mellon continuously monitors the regulatory environment to respond effectively to the rapidly changing needs of clients. Download the PDF