window-dressing

1. 1. Decorative exhibition of retail merchandise in store windows.
   2. Goods and trimmings used in such displays.
2. A means of improving appearances or creating a falsely favorable impression: "The realignment ... may be more window dressing than a substantive change in how the company does business" (Connie Guglielmo).

A strategy used by mutual fund and portfolio managers near the year or quarter end to improve the appearance of the portfolio/fund performance before presenting it to clients or shareholders.

Investopedia Says:
Performance reports and a list of the holdings in a mutual fund are usually sent to clients every quarter. To window dress, the fund manager will sell stocks with large losses and purchase high flying stocks near the end of the quarter. These securities are then reported as part of the fund's holdings.

Another variation of window dressing is investing in stocks that don't meet the style of the mutual fund. For example, a precious metals fund might invest in stocks that are in a hot sector at the time, disguising the fund's holdings, so clients really have no idea what they are paying for.

Window dressing may make a fund appear more attractive, but you can't hide poor performance for long.

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If he or she has left, you need to re-evaluate a big factor affecting whether the fund is still suitable for you. Should You Follow Your Fund Manager?

Special adjustments in financial position to give the appearance of adequate liquidity, often to comply with reporting requirements. It gives the appearance of a healthy balance sheet, whereas actual conditions may state otherwise. For example, an organization might buy U.S. Treasury securities and other cash equivalent securities to build up its cash position.

Window dressing, or sprucing up the balance sheet, takes place just before the statement date, for example, at the end of a fiscal year or quarter, and is intended to add size to the financial institution. Mutual funds sell off securities not preferred by the public, and purchase securities preferred by the public. Fund managers sell junk bonds held for yield, in favor of AAA-rated securities for appearance.

noun

A deceptive outward appearance: cloak, color, coloring, cover, disguise, disguisement, façade, face, false colors, front, gloss, guise, mask, masquerade, pretense, pretext, semblance, show, veil, veneer. Slang put-on. See show/hide.

The trim, 2, usually of wood or stone, around a window.