I thought this was an easy #2 but answer turned out to be #1. I had thought large/significant ECF would render necessary temporary account isolation and then inclusion back into the composite once invested. Am I missing something?
A charitable foundation transfers securities in kind to Taurus Asset Management Ltd. to fund a new private equity portfolio. Taurus estimates that, after liquidating the transferred securities, it will take five months to invest the foundation’s assets in privately held companies. Which statement best describes a requirement of the GIPS standards? Taurus must include the foundation’s portfolio in the appropriate private equity composite:
- on a timely and consistent basis.
- when the assets are substantially invested.
- as of the beginning of the next full measurement period.