can someone please explain what the standards say in regard to carveouts/cash - what does that even mean?
You run a balanced fund that is 50% US 40% US bonds and 10% cash. A carve out would be using the 50% equity returns in a US equity composite. You have to allocate a portion of the cash to the equity part (in one of two ways) if it is going to be used in a composite.
perfect - thanks