Definition of Window dressing:
Specious (but usually legal) manipulation of a firms accounting data to make its financial statements look better than they actually are.
Window dressing is a strategy used by mutual fund and other portfolio managers near the year or quarter end to improve the appearance of a fund’s performance before presenting it to clients or shareholders. To window dress, the fund manager sells stocks with large losses and purchases high-flying stocks near the end of the quarter. These securities are then reported as part of the fund's holdings.
The arrangement of an attractive display in a shop window.
Performance reports and a list of the holdings in a mutual fund are usually sent to clients every quarter, and clients use these reports to monitor the fund's investment returns. When performance has been lagging, mutual fund managers may use window dressing to sell stocks that have reported substantial losses, replacing them with stocks expected to produce short-term gains to improve the overall performance of the fund for the reporting period.
Synonyms of Window dressing
Acting, Adjunct, Adornment, Affectation, Anteriority, Appearance, Arrangement, Attitudinizing, Bluff, Bluffing, Bold front, Brave face, Brave front, Cheating, Color, Color patterns, Coloring, Deception, Decor, Decoration, Delusion, Disguise, Display, Dissemblance, Dissembling, Dissimulation, Elaboration, Embellishment, Emblazonment, Emblazonry, Embroidery, Facade, Face, Facet, Facia, Fakery, Faking, False air, False front, False show, Falsity, Feigning, Feint, Flourish, Flower arrangement, Fore, Forefront, Foreground, Forehand, Foreland, Forepart, Forequarter, Foreside, Foreword, Four-flushing, Fraud, Front, Front elevation, Front man, Front matter, Front page, Front view, Frontage, Frontal, Frontier, Frontispiece, Furniture arrangement, Garnish, Garnishment, Garniture, Gilt, Gloss, Head, Heading, Humbug, Humbuggery, Illumination, Imposture, Lap, Masquerade, Meretriciousness, Obverse, Ornament, Ornamentation, Ostentation, Outward show, Playacting, Pose, Posing, Posture, Preface, Prefix, Pretense, Pretension, Pretext, Priority, Proscenium, Put-on, Representation, Seeming, Semblance, Sham, Show, Simulacrum, Simulation, Speciousness, Trim, Trimming, Varnish, Veneer
How to use Window dressing in a sentence?
- Window dressing is a strategy used by mutual fund and other portfolio managers to improve the appearance of a fund’s performance before presenting it to clients or shareholders.
- However, Elfi did also enjoy dress design, interior design and window dressing and these courses did receive the maternal nod, and she graduated with qualifications in them all.
- While window dressing overall can help a fund’s returns in the short term, longer-term effects on a portfolio are typically negative.
- For investors, window dressing provides another good reason to monitor your fund performance reports closely.
Meaning of Window dressing & Window dressing Definition