Question

The Global Investment Performance Standards least likely require:

A. nondiscretionary portfolios to be included in composites.

B. non-fee-paying portfolios to be excluded in the returns of appropriate composites.

C. composites to be defined according to similar investment objectives and/or strategies.

Answer = A

Composites (Standard IV Composites) must be defined according to similar investment objectives and/or strategies. Terminated portfolios must be included in the historical returns of appropriate composites, and only fee-paying portfolios are to be included in composites. Non-discrectionary portfolios must not be included in a firm's composites.

CFA Level I

"Introduction to the Global Investment Performance Standards (GIPS)," CFA Institute

 

 

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