Can a firm include a single portfolio in more than one of the firm’s composites?
Yes. The Standards state that firms must include all actual, discretionary, fee-paying portfolios in at least one of the firm’s composites. If the portfolio meets the defined criteria for inclusion in more than one composite, the firm must include the portfolio in all the firm’s appropriate composites. For example, a firm may have a large-cap composite and a large-cap growth composite. If the firm manages a portfolio that meets the criteria for inclusion in the large-cap composite as well as the large-cap growth composite, the firm must include the portfolio in both composites.
Source: GIPS Handbook, 2nd Edition
Date Added: March 2006
Reprinted from the GIPS Q&A database http://www.gipsstandards.org/standards/index.html