Understanding the Definition of "Total Firm Assets" for PPS

A

The question is asking about the definition of "total firm assets" specifically in relation to PPS (Private Placement Securities). Let's examine each statement to determine which ones are true.

I. Total assets include non-discretionary as well as discretionary assets. This statement suggests that both non-discretionary and discretionary assets are included in the definition of total assets. Non-discretionary assets refer to assets that are managed according to specific client instructions, while discretionary assets are managed at the firm's discretion. If both types of assets are considered as part of total assets, then statement I is true.

II. Unless the firm actually manages the assets underlying investment strategies, they are not included in the definition of total assets. This statement implies that only assets that the firm actively manages as part of its investment strategies are included in the definition of total assets. If assets are not actively managed by the firm, they are excluded. If this is the case, then statement II is true.

III. Assets assigned to subadvisors which are not directly under the firm's management should not be included as part of "total assets." This statement states that assets assigned to subadvisors, which are managed by other entities rather than directly by the firm itself, should not be considered as part of total assets. If the firm does not directly manage these assets, they are excluded. If this is the case, then statement III is true.

Based on the analysis above, if statements I, II, and III are all true, the correct answer would be:

A. I, II, and III