Which portfolios must be included in a composite?
Explanation
Inclusion is mandatory for all fee-paying discretionary portfolios to prevent cherry-picking.
Other questions
Which of the following parties is eligible to claim compliance with the Global Investment Performance Standards (GIPS)?
Why were the GIPS standards primarily created?
A firm chooses to exclude terminated accounts from its historical performance record to improve its reported results. This practice is best described as:
To claim compliance with GIPS, a firm must comply:
Which of the following best defines a 'composite' under GIPS?
How is the return of a composite calculated?
Who is responsible for determining whether a portfolio is 'discretionary'?
For GIPS purposes, a 'firm' is best defined as:
Independent verification of GIPS compliance is:
GIPS verification must be performed:
What does a third-party verifier attest to regarding a firm's GIPS compliance?
Which of the following is one of the eight sections of the GIPS standards for firms?
When assigning portfolios to composites, firms should do so:
If a firm has different geographic locations doing business under the same name, the definition of the 'firm' for GIPS purposes:
Section 8 of the GIPS standards covers:
A firm manages a portfolio where the client restricts the trading of tobacco stocks, which significantly hinders the firm's ability to implement its standard strategy. This portfolio should be:
GIPS standards require that pooled funds be:
Regarding input data, GIPS standards require:
If a disclosure required by GIPS is not applicable to a specific firm:
Which of the following is NOT a requirement for a firm to claim GIPS compliance?
A firm claims compliance with GIPS but only applies the standards to its US Equity division. This is:
Which statement regarding GIPS verification is most accurate?
Which of the following would constitute a violation of GIPS regarding input data?
Which section of the GIPS standards addresses 'Composite and Pooled Fund Maintenance'?
What is the consequence of a firm excluding terminated accounts from its historical composites?
Which of the following entities may NOT claim compliance with GIPS?
If a firm includes a 'claim of compliance' in an advertisement, it must follow the guidelines in:
Which statement regarding composite creation is TRUE?
What type of return calculation is required for pooled fund reports under GIPS?
When defining the 'firm', an investment management company should:
Does GIPS compliance require firms to present performance for all their composites to every client?
Who is the primary beneficiary of the GIPS standards?
If a firm has met all requirements of GIPS, it may:
Regarding 'discretionary' portfolios, which statement is true?
Section 1 of GIPS is titled:
Can a firm with a single product claim GIPS compliance?
A firm defines itself as 'Global Asset Management' but excludes its Hong Kong office from its GIPS firm definition. The Hong Kong office operates under the name 'Global Asset Management HK'. Is this compliant?
If a client forbids a manager from selling a specific stock in a portfolio, and this restriction prevents the execution of the strategy, the firm should:
Which of the following describes 'survivorship bias' in the context of performance reporting?
The GIPS verification report must be issued by:
Which of the following best describes the assignment of portfolios to composites?
Which of the following is required regarding the presentation of information that is neither false nor misleading?
Can a verification report be issued for a single composite?
A firm decides to report performance using a 'Composite Money-Weighted Return Report'. This is covered under which section?
What does GIPS stand for?
Firms that claim compliance with GIPS must comply with:
Which of the following is considered a 'misleading practice' that GIPS aims to eliminate?
Composite returns are calculated using:
What serves as a 'signal' to the market that a firm's performance reporting is credible?