composite construction-switching portfolios investment, original, change

brain_wash_your

curriculum vol 6 page 304 says in the blue box that when a portfolio is to be switched to a new composite then its historical performance must remain with appropriate composite...
then 4 lines below in the text it says historical performance must remain with original composite...

which is it?

if i change composites due to change of investment strategy then historical performance of portfolio will remain with original composite which is not applicable anymore??

thanks in advance...

dyga

I don't get your question:

In both cases the history must remain with the original composite. You say so yourself.

You must not discard or wish away a composite simply because it has not performed well in the past for you . You can add disclosures that it is discontinued and any existing retained strategies are now moved to a new composite ( for new results only , not the original results).

If you can move portfolios between composites at will , managers will simply attempt to mix and match strategies after the fact , just to look good. The intent is clearly to leave results as they are up to the point of any change . New results only should be included in new composites