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.

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).

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.

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.
References in periodicals archive ?
The periodic reporting of non-transparent investments creates an environment for this type of window dressing.
On Friday, an NCB in-house investigation panel concluded that the current bank management should file a criminal complaint with prosecutors and police against former executives, seeking damages over the alleged window dressing.
Even if Mr Kinnock is not of bad will he should change his policy very quickly and not go for just window dressing.
There has never been anything that can be described as window dressing," Sakaiya said.
Opulent window dressing can be expensive, since it calls for generous lengths of material.
If the facts of a situation indicate that contingent beneficiaries are merely window dressing to increase the number of $10,000 annual exclusions, the IRS will challenge the arrangement (and probably win).
An Institute of Managers report says: "Vigilante consumers are wised up and no amount of window dressing, from loyalty cards to price promises, will fool them if the messenger doesn't believe the message.
The ritualistic, mortuary, Gothic-futuristic aspects of her fantasy settings--all extremely pumped up in Lustmord--are, in effect, window dressing for her excursions into brooding romanticism and the poetics of perversity.
Philippine markets started their window dressing to kick of the last trading week of the first half capitalizing on US equities surging on opening.
VOLUNTEERS with a passion for breathing new life into old clothes went head to head in a window dressing competition which took place during Adult Learners' Week.