All actual fee-paying, discretionary portfolios must be included in at least
one composite. Actual non-fee paying discretionary portfolios may be
included in at least one composite with appropriate disclosure.
Ethical And Professional Standards MCQ - Ethical And Professional Standards Section 2
A composite is an aggregation of one or more portfolios managed
according to a similar investment mandate, objective, or strategy.
A gold ETF will least likely fit in a composite with a fixed income
investment strategy.
Verification does not ensure the accuracy of any composite. It merely
tests if all the composite construction requirements have been met, and
if policies are in place for the firm to calculate, present performance and
claim compliance with the GIPS Standards.
