About the GIPS Composite Management Workflow

Build Composite Membership with the Composite Builder

Eagle allows you to maintain composite membership manually or automatically. You can use the Eagle Performance Composite Builder to define specific composite ownership rules for including portfolios in composites, such as minimum market value. You can access the Performance Composite Builder by selecting Submit Build on the Performance Center ribbon.

After you define constituent membership rules and define composite benchmarks through a one-time setup process, you can use the composite builder on a regular basis to add and remove constituent portfolios from composites based on the rules defined for each composite. If you maintain a large volume of portfolios, automating this process can save time and improve accuracy.

After you update composites using the composite builder, you can use the Composite Approval module to review and approve or reject the assignments made for the composite. This tool simplifies the review and approval process of composites with a large volume of membership changes. Use of this approval process is optional. You can configure the system to automatically approve membership changes made by the composite build process. The Composite Monitor helps you validate that your composites have the correct constituents defined for each period going back in time and allows you to produce standard auditor verification reports. You can perform validation activities before or after you calculate GIPS composite returns.

Configure the Performance Calculation Report

The Performance Calculation report you use to calculate and commit composite level single-period returns varies based on the methodology you use to weight composite funds by asset size. You can use the:

• Composite Weighted Returns report profile to calculate asset-weighted returns for composites and related benchmarks.

• Performance Returns report profile to calculate aggregate-method returns for composites and related benchmarks. This is the same report used to calculate single-period returns for portfolios.

Eagle's GIPS Composite Management component builds its analysis results from the single-period returns and index information you upload and/or calculate using the Performance Returns report profile, supplemented by detailed information about your portfolios and composites. Eagle uses single-period portfolio returns to build composite level returns. The Performance Returns report profile uses accounting and benchmark data stored in the data warehouse to calculate returns, and lets you commit the single-period composite level returns to the PERFORM database.

If you use Eagle's Retail Fund Performance component, you can create composites and calculate composite level returns based on retail fund data or on a combination of retail fund and institutional fund data.

Configure the Performance Analysis and Composite Analysis Reports

Just as you can calculate multi-period returns and risk statistics for portfolios, you can calculate multi-period returns and risk statistics at the composite level. You can use the:

• Performance Analysis report to calculate multi-period returns at the composite level. Eagle Performance uses the single-period composite level returns stored in the PERFORM database to calculate multi-period composite level returns.

• Composite Analysis report to display multi-period composite returns, market values, and other composite data, and provide on-the-fly calculation of common composite dispersion statistics for specified time periods. This report calculates composite, constituent, and comparison benchmark rolling and fixed period returns, such as return for the last month, year-to-date, last year, 2-years ago, 3-years ago, and since-inception, and asset-and equal-weighted composite dispersion and membership statistics over these periods.

After you calculate multi-period returns, you can use the Eagle Eye Analysis tool to research Performance Analysis and Composite Analysis report results and troubleshoot reporting issues. You can use the Composite Monitor and its related verification reports to verify composite return results, if you have not already done so.

Eagle recommends storing multi-period returns in Eagle's Data Mart. See the Data Mart User Guide for detailed information.

Publish GIPS Composite Performance Reports

You can use Eagle's analysis and reporting tools to communicate GIPS composite information to internal and external audiences. Eagle Performance includes standard composite reports as part of the Performance Toolkit, and lets you create customized reports for on-line drill down analysis. You can create OLAP drill down reports, presentation-quality Advanced Reports, and/or Portal views that use information stored in Eagle's data warehouse or optionally, in Data Mart. You can also use the Performance Query Tool to analyze GIPS composite risk and return information.

Many of Eagle's GIPS performance clients provide reports to outside parties, such as auditors, for verification. The Composite Monitor helps you produce standard auditor verification reports.

See the PACE Reporting Reference Guide for detailed information about OLAP reports. See the PACE Advanced Reporting User Guide for detailed information on Advanced Reports. See the Portal System Administration User Guide for more information about Eagle Portal.