What must McGregor Investment Management do under the Global Investment Performance Standards regarding its growth equity portfolios?

Under the Global Investment Performance Standards (GIPS), firms are required to present performance information in a manner that is consistent, transparent, and comparable. Including discretionary portfolios in a composite allows for a fair assessment of the investment performance across similar strategies.

In the context of McGregor Investment Management's growth equity portfolios, the requirement to include them in a composite stems from their discretionary nature. Discretionary portfolios are those for which the investment manager has the authority to make investment decisions on behalf of clients without their prior approval. The main objective of GIPS is to ensure that all relevant client accounts that follow the same investment mandate are represented, allowing for a comprehensive view of performance.

By including the growth equity portfolios in a composite, McGregor Investment Management adheres to the GIPS principles of providing full and fair disclosure, thereby allowing clients and potential clients to accurately assess the investment performance in relation to their peers. This inclusivity creates a standardized way to evaluate and compare the firm’s performance data, ultimately benefiting all stakeholders involved.