A Carve-out is defined as a portion of a portfolio that is by itself representative of a distinct investment strategy. For example, you can carve out the Equity portion of a balanced portfolio that includes the components, Equity, Fixed Income, and Cash.
As of 1 January 2020, firms are again allowed to allocate cash to carve-outs. When the firm creates a carve-out of a particular strategy, allocates cash to the carve-out, and includes the carve-out in a composite, the firm must create carve-outs with allocated cash from all portfolios and portfolio segments within the firm managed to that strategy and must include those carve-outs with allocated cash in the composite.
To calculate the carve out return for the allocated and adjusted CASH to the particular carved out segment, Performance Calculation report with a flag ‘Fetch Benchmark data but do not Display securities’ enabled provides a solution.
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