Composite Management

May 29, 2015

Actually calculating composite performance is relatively straightforward once all the inputs are compiled. However, the tasks involved before the calculations can be performed can be daunting and time consuming depending on where data is stored and the technology available to construct composites.

Some firms utilize spreadsheets for calculating composite results while others rely on their portfolio accounting system which generally requires manual composite assignment. A trend we are seeing though is that more and more firms are utilizing composite management systems. A composite management system facilitates a systematic process to apply composite rules, construct composite membership, calculate returns and generate composite performance reports which can save time and improve the process. Firms that make the decision to use a system to maintain composites might do so because they have several years of performance history to construct or maybe the firm has a large number of accounts or complex composite rules that are difficult to maintain manually.


If you have questions about maintaining composite or the technology options available please contact us at

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