Wednesday, April 14, 2010
Composites, from the ground up
The answer is "no," because the standards require composites to include cash and (as of 1 January 2010) cash must be managed separately.
However, if a firm wishes to do this for supplemental information purposes (e.g., to highlight their performance in particular asset classes, market segments, etc.) this would be fine. With supplemental information firms have a lot of options regarding how they can provide prospective clients their performance and risk information.