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标题: composite construction-switching portfolios [打印本页]

作者: brain_wash_your    时间: 2011-7-11 18:57     标题: composite construction-switching portfolios

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...
作者: dyga    时间: 2011-7-11 18:57

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




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