Cash Allocations for Carve Outs

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 January 1, 2020, you are allowed to allocate cash to carve-outs. When carving out a particular strategy with allocated cash, and then including the carve-out in a composite, you must create a carve-out with allocated cash from all portfolios and portfolio segments within your company associated 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, the Performance Calculation report has been enhanced with the option Fetch Benchmark data but do not display securities.

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