标题: what the GIPS is a carve-out? [打印本页] 作者: brain_wash_your 时间: 2011-7-11 19:08 标题: what the GIPS is a carve-out?
Can somebody please explain in plain english?
Thanks作者: oneboy 时间: 2011-7-11 19:08
My understanding--
Say account XYZ ($1 million) contains three sub-accounts Equity(60%) + FI(30%) + Cash(10%). For simplicity assume firm has two composites Equity and Fixed income, then old GIPS standards used to allow the the XYZ account to be split and reported into the two separate composites. BUt in doing that you'd have to "carve-out"/allocate the $100,000 Cash between the fictitious separate accounts XYZ-Equity and XYZ-Fixed income.
Starting this year carve-out are not allowed, i.e. unless you had two separate Sub-accounts Cash-Equity and Cash-FI, presumably the Equity and FI are two separate managers deciding how much cash to maintain.
