A firm manages 40 actual, fee-paying discretionary Global Equity portfolios. The firm forms a Global Equity composite. Under GIPS, which portfolios must be included?
Explanation
GIPS require composites to include all fee-paying discretionary portfolios with the same mandate to ensure comprehensive and unbiased representation.
Other questions
What primary objective do the GIPS standards serve for investment firms and investors?
Which entity may legitimately claim compliance with the GIPS standards?
A firm chooses to claim partial compliance with selected GIPS provisions. Is this acceptable under the standards?
Which abusive practice did the GIPS standards specifically aim to eliminate?
Which statement about composites is correct under the GIPS standards?
How should a firm define 'the firm' for GIPS compliance according to the standards?
A client imposes specific restrictions that prevent a portfolio from implementing the firm's intended strategy. Under GIPS, how should that portfolio be treated in composite inclusion?
Which of the following best describes GIPS verification?
Which of these is TRUE about the scope of verification under GIPS?
A GIPS-compliant firm must do which of the following regarding pooled funds?
Why does the GIPS standards emphasize integrity of input data and valuation?
Which action is consistent with GIPS guidance when a firm makes a change to its composite definition?
A firm claims GIPS compliance and is approached by a prospective client asking for verification evidence. Which statement about verification is correct?
Which of the following best describes the GIPS position on pooled funds and composites?
A firm adopts GIPS recommendations in addition to minimum requirements. Why might this be beneficial?
Which of the following statements about the mandatory nature of GIPS is correct?
A firm consolidates composites and changes its reporting policies. Under GIPS, what is the firm's obligation?
Which of the following is NOT a key benefit of GIPS compliance listed in the reading?
A firm claims compliance and engages a verifier. Which of the following is accurate about that verifier's role?
Which of the following best captures the GIPS requirement for the compositing decision timing?
Under GIPS, why is full disclosure emphasized alongside fair representation?
A firm claims compliance and presents a composite return history from 2010 to 2020 for a strategy that began in 2015. Under GIPS, what must the firm do?
Which of the following is NOT a component of the GIPS verifier's assurance?
Under GIPS, how should a firm treat terminated portfolios when calculating composites?
If a firm wants to increase investor confidence in its GIPS claim, which action is most directly helpful?
The GIPS standards are described as 'practitioner-driven.' What does this imply about their development and use?
A firm claims compliance but only has composites for its largest strategies and omits smaller fee-paying discretionary strategies. Under GIPS, is this acceptable?
If a firm receives an independent verification report, what limitation must users understand about that report?
Which of the following best describes survivorship bias that GIPS seek to prevent?
A firm claims GIPS compliance and includes a Compliance Statement in marketing materials. Which is true about that statement?
Which of the following practices would most likely undermine a GIPS claim?
If a firm claims compliance but uses inconsistent return calculation methodologies across composites, what is the primary concern under GIPS?
Under GIPS, what is the role of guidance statements, interpretations, and Q&A documents?
Which of the following is true about the relationship between GIPS and local laws/regulations?
A firm that claims GIPS compliance wants to market to institutional clients worldwide. Which advantage listed in the reading is most relevant for this marketing effort?
If a firm is being verified, which of the following is an obligation of the firm?
GIPS requires firms to adhere to certain calculation methodologies primarily to achieve what outcome?
Which of the following statements about the evolution of GIPS is supported by the reading?
A firm preparing to claim GIPS compliance should most importantly ensure which of the following?
A firm that markets a strategy developed by a single portfolio manager but uses multiple accounts managed to the same strategy must do what under GIPS?
Which of the following is a correct statement about a firm's discretion definition under GIPS?
A firm has accurate composite returns but omits fee disclosures in its GIPS report. Under GIPS principles, why is this problematic?
Which of these is accurate regarding a firm's choice to publish verified GIPS compliance?
Which of the following best reflects how GIPS treat the reporting of performance time periods?
A firm claims GIPS compliance but cannot demonstrate that composite membership determinations were made ex ante. What is the primary concern?
Which of the following best states how GIPS treats firms that use third-party calculation providers?
Which of these is a correct assertion about GIPS and marketing to prospective clients?
Which of the following best characterizes the reason GIPS require inclusion of all fee-paying discretionary accounts in composites?
A prospective client asks whether GIPS verification guarantees a firm's performance accuracy and future results. What is the best response according to the reading?