I just commented on a response to someone who commented on yesterday's post, regarding "catch-all" composites. Many firms utilize "administrative" composites to keep track of accounts that aren't in GIPS(R) (Global Investment Performance Standards) composites. For example:
- accounts below the firm's minimum
- non-discretionary (for GIPS purposes) accounts
- accounts transitioning from one composite to another
- accounts that haven't yet been added to a composite
- accounts that have terminated.
- don't prepare presentations for them
- have them listed in your "list of composites."
p.s., if an account that should be in a GIPS composite isn't, but is in an Admin composite instead, the requirement that it be in a composite won't be fulfilled.
p.p.s., "catch-all" composites aren't permitted. However, if the firm uses these to bring together all those accounts which are non-discretionary, that's fine.