Implementation Shortfall definition

Implementation Shortfall means the arithmetical difference between the return on the IPOPIF Account and the return on the Target Portfolio over the Transition Term. Calculations shall be made in accordance with the T-Standard concepts enunciated in Phase I of the “Performance Standards for Transition Management” published in the Journal of Performance Management (2002-2003), which is incorporated herein by reference.
View Source

Examples of Implementation Shortfall in a sentence

  • The Implementation Shortfall estimate should cover the entire Transition Term.

  • The Implementation Shortfall tends to be low when a trade is executed swiftly without impacting on the market price.

  • The Transition Manager shall use Implementation Shortfall in creating such report.

  • The pre-trade analysis report should provide an estimate of all costs that are applicable such as: explicit costs (i.e., commissions, custody, taxes, duties, foreign exchange); implicit costs (i.e., market impact, opportunity costs, bid/ask spread); and Implementation Shortfall estimate.

  • It will employ various algorithmic trading techniques such as P% of V, Pegged, VWAP, TWAP, Target Close and Implementation Shortfall.

  • The Transition Manager shall also report the performance of any liquidation or restructuring, and the costs associated therewith, as determined by the Implementation Shortfall.

  • The proposal will include the transition firm’s analysis of the risks and costs associated with the transition, its trading strategy for minimizing the risks and costs, a timetable for completing the transition, and an estimate of all costs (i.e., explicit and implicit) using the T-Standard for Implementation Shortfall for the recommended course of action.