Both terminated and active accounts must be included as part of performance history…
Yes, as long as they meet the minimum Asset requirement to be included in a composite.
thanks, it’s safer to stick to YES… although it’s recommended under III(D)
Terminated accounts must stay in performance history until the last full reporting period in which they were actively managed, discretionary accounts. Active accounts must stay in the performance history until they either no long are active, become non-discretionary, or no longer meet criteria such as minimum asset size or what not. However, if they are deemed to be removed from the performance going forward, the historical performance will remain until the last full reporting period.
thanks for bringing the GIPS ref.
“Terminated accounts must stay in performance history until the last full reporting period in which they were actively managed, discretionary accounts.” That is an inaccurate statement as they MUST STAY IN PERFORMANCE HISTORY forever. You cannot remove terminated accounts from your Historical returns. Going forward yes of course b/c they have no returns or assets. I understand what the above statement means is that if you are terminated mid-way thru May you would end the performance as of April no matter how long it takes to unwind the find. It doesn’t mean that you can remove the performance history from the composite return history. Does that make sense to you??
sorry bigwilly - i didn’t type what i meant - what i meant is what i said, they stay part of performance history forever, but not long count towards performance history afte the last full reporting period.
that’s exactly my interpretation Willy. I think I can definitely pass if the exam is worded as clear as your post…
what about terminated composites?
CSK, if you have a terminated composite you must keep the composite data and any relevant info backing it up.
And also, cash allocation strategy should be disclosed ( i think ) willy?
bigwilly Wrote: ------------------------------------------------------- > CSK, if you have a terminated composite you must > keep the composite data and any relevant info > backing it up. i realize that, but for how long should we keep performance of terminated composites. I thought for 5 years…
Yes in regards to cash allocation for Carve outs… Keeping terminated composites - Forever. I think.
yeah, you are right, as we are not required to report all composites in one report, we just have to disclose that list of all composties is available upon request