Tuesday, June 14, 2011

Total Strategy Assets

I conducted a pre-verification for our newest London client yesterday, and they asked a very interesting question: can they disclose their "Total Strategy Assets," along with the composite and firm assets, in their GIPS(R) (Global Investment Performance Standards) composite presentations?

The answer (drum roll please): of course! Why not?

Let's say they have an emerging markets equity strategy, but for various reasons have more than one composite for it. Thus, they would show a prospect the composite that best aligns with their needs, but in reality they manage more in the strategy then shown in the composite assets field. Wouldn't it be beneficial for both the prospect and the firm to disclose this? I would say "absolutely!"

Great idea!


  1. Old news. Folks have been doing that for years...and was always appropriate. Glad you've caught up. :)

    The only "issue" is making sure that the wording of the disclsure is appropriate, eg, non-misleading. Might also fall under the "supplemental disclosures" guidance, so I would recommend that the client take a look there as well.

  2. An older and wiser fellow like you surely would have known! First time we encountered it; glad you agree :-)
    Thanks for your comments.


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