Glossary · Performance and reporting

Composite

A composite is a grouping of portfolios managed to a similar strategy, reported together to show how that strategy performed across all clients who received it.

Composites exist to prevent cherry-picking. A firm that shows its best account is telling the truth about that account and nothing useful about the strategy.

The discipline is in the inclusion rules: which accounts belong, when they enter and leave, and what happens to accounts that closed.

Read more: Composites, and what they mean →