Tag Archive for: assets

Getting Year-End Assets Right

It’s time for calendar year updates to assets under management.  Three questions from the attendees at the GIPS conference are worth a little extra attention when updating your GIPS reports with year-end composite assets.

Q. Our performance system requires us to include accounts in a composite on the day prior to the first month – e.g. we have to include an account as of 12/31 for it to be included in the composite for January. We included these accounts in composite assets as of 12/31. Is this an error?

A. This would be an error. Accounts should not be included in composite assets until they are included in the composite (1/1) for the performance period. Depending on the accounting system there are different ways to ensure that these accounts are not included in the assets of the month prior. These assets should always be included in 12/31 firmwide AUM regardless of composite inclusion.

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