window dressing

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Window dressing

Trading activity near the end of a quarter or fiscal year that is designed to improve the appearance of a portfolio to be presented to clients or shareholders. For example, a portfolio manager may sell losing positions so as to display only positions that have gained in value. Financial institutions have also been criticized for a different type of window dressing as many moved debt off the balance sheet near the end of the quarter in a temporary manner. This made the bank appear to have less leverage than it actually did.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Window Dressing

The act or practice of buying and selling securities on a portfolio immediately before a report is due in order to make the portfolio look more profitable or otherwise healthier than it has been. For example, the portfolio manager may sell stocks that have performed poorly and buy those that have performed well. Portfolios receive window dressing in order to make them look more attractive to prospective investors, which in turn makes the portfolio manager look more successful. The practice is also called dressing up a portfolio or portfolio dressing. See also: Manager Universe (benchmark).
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

window dressing

An adjustment made to a portfolio or financial statement to create false appearances. For example, a manager may decide to provide window dressing to a portfolio by selling stock that has declined in value and replacing it with stock that has increased in value. Such activity creates the impression of successful portfolio management.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

window dressing

the use of discretion in the application of ACCOUNTING PRINCIPLES so as to report PROFIT and ASSET figures which are flattering to the company. Window dressing is a form of CREATIVE ACCOUNTING which is concerned with making modest adjustment to sales, debtors and stock items when preparing year-end ANNUAL REPORTS AND ACCOUNTS.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson
References in periodicals archive ?
The periodic reporting of non-transparent investments creates an environment for this type of window dressing. While it's reasonable to believe that most non-transparent funds will not engage in this type of activity solely for the optics, the pressure of performance in a very competitive marketplace can bring strong temptations.
'Semester-end window dressing saves the day with the PSEi gaining 127.11 points to close at 7,193.68.
Marita Limlingan, president of Regina Capital Development Corp., said that window dressing is expected to take place in the market this week so more trading can be expected.
The stock barometer firmed up for the fourth straight session on Friday on month-end window dressing activities and as the second quarter corporate earnings reporting season begins.
A window dressing competition for opticians being staged at the NEC from April 13 to 15 will form part of Optrafair, the biennial optical industry show.
And fiery cosmetic surgeon Danielle, 37, feels Lisa has just become "window dressing" to her and the other stars.
And CCAD student Duane Hurn was chosen to turn his artistic talents to window dressing.
Julie set up Decor 80 at Westbourne Road, Marsh, after working in retailing and window dressing, which first gave her an insight into the world of interior design.
TWO teams of students from the University of Glamorgan have won places at the student heats of the UK's only live window dressing contest, skillVM.
LABOUR MP Caroline Flint does not regret accusing Gordon Brown of treating women as "window dressing".
In a debate Alan Duncan, Shadow Leader of the House, told his opposite number, Harriet Harman, that she could never be considered "window dressing".
on Thursday on suspicion of window dressing the company's financial statements.