Wednesday, May 11, 2011
Equal-weighting ... can it be done?
Yes! Provided (a) you have an asset-weighted version which is your actual presentation, (b) that you don't use the equal-weighted version as the presentation, but rather, (c) label it as "supplemental information."
Firms can use supplemental information to go well beyond the requirements of GIPS. The rules deal with the materials GIPS requires, but not items outside of GIPS, other than provisions as outlined in the Supplemental Information Guidance Statement, which you should familiarize yourself with.