#11 External Manager
'EXTERNAL MANAGER: A third-party investment manager hired by an Asset Owner to manage Assets.'
This term is defined in the GIPS 2020 Exposure Draft as “A third-party investment manager hired by an ASSET OWNER to manage some or all of the TOTAL ASSET OWNER ASSETS.”
Key Points about This Term
- This term is a new one in the Global Investment Performance Standards (GIPS) vocabulary!
- Its meaning, however, is no different from that of a Sub-Advisor
- The difference is that ‘External Manager’ is used with reference to ‘Asset Owners‘, whiles ‘Sub-Advisor’ is used with reference to Firms.
- It has emerged as a result of the inclusion of Specific Standards for Asset Owners in the GIPS2020
- Fun Fact – It appears six (6) times in the Exposure Draft, excluding that in the definitions and executive summary sections.
- Possible Evolution under new Standards – This one is here to stay as a key term under the Asset Owner provisions.