标题: GIPS: is this portfolio discretionary? [打印本页] 作者: ramzes 时间: 2013-4-17 19:27 标题: GIPS: is this portfolio discretionary?
Some of the clients are very conservative, and some are very aggressive. Two separate clients are so conservative that, four years ago, they stipulated that their entire portfolio simply be invested equally across US Treasury strips with two, four, six and eight years to maturity. As each group matures, as the first set did two years ago, it would be rolled over into the eight years to maturity strips again. These clients put their money with Graham and Crickenburg Associates so that the company would take care of the rollover, the paperwork, and computing the tax liability. The clients pay a fee for this service.
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At first, I thought it is, because if a composite uses US Treasury strip as benchmark or intended to be very conservative, then why this 2 portfolios are not discretionary?作者: giants2010 时间: 2013-4-17 19:27
my understanding says non-discretionary reason being since clients have decided what they want to invest in to, but whats is the answer, where is this q from.作者: tarik64 时间: 2013-4-17 19:27
yes, discretionary means that the manager can decide what is added to the portfolio. In this case, he is just the won handling allt he mess while the clients tell him what to buy or sell. That’s not discretionary, he can’t take credit for the performance of the portfolio.
