CFA Practice Question

CFA Practice Question

Which one of the following is incorrect with respect to GIPS?
A. A composite is an aggregation of individual portfolios representing a similar investment mandate, objective or strategy and is the primary vehicle for presenting performance to prospective clients.
B. Total firm assets should include non-fee-paying assets under management.
C. Non-fee-paying portfolios may not be included in the firm's composites.
Explanation: Non-fee-paying portfolios may be included in the firm's composites; however, firms are required to disclose the percentage of composite assets represented by non-fee-paying portfolios as of the end of each annual period.

User Contributed Comments 2

User Comment
Clude It is NON-DISCRETIONARY accounts that need not to be included in a comp.
lynserious tell me the difference of may be and may not be, that's the same sht. I choose B
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