The term 'Representative Accounts' in performance reporting refers to:

• A. Selecting only top-performing portfolios to represent overall results
• B. Including all portfolios including those no longer managed
• C. Having a standardized "what-if" scenario
• D. Using only accounts with no performance history

Answer: (A)

The idea behind Representative Accounts is to use a sample of client portfolios that truly mirrors the entire population of accounts managed under a given mandate. This includes accounts that have been terminated, not just those that are still active, so the performance shown isn’t distorted by survivorship bias.

Including all portfolios, including those no longer managed, is the best approach because it reflects the full history and range of outcomes under the strategy. If you only show certain accounts (for example, the best performers), the presentation would mislead about what the strategy actually delivered.

The other options miss the point: picking only top performers would distort reality; a standardized what-if scenario isn’t about choosing representative accounts; and using only accounts with no performance history would provide no meaningful performance signal.