According to GIPS, can non-fee paying or non discretionary portfolios be included in composite construction?
Apparently, GIPS changed back in 2010/11 and there were some changes to this
According to GIPS, can non-fee paying or non discretionary portfolios be included in composite construction?
Apparently, GIPS changed back in 2010/11 and there were some changes to this
non-fee paying can be included, % needs to be disclosed
non-discretionary must not incdlue
And if a fee-paying portfolio is part discretionary and part nondiscretionary, the discretionary portion must be included in at least one composite, while the nondiscretionary portion may not be included in any composite.
say if investor doesn’t want to hold stocks from any countries that are deemed human rights violators (which is from a schweser question), is the portfolio discretionary or non-discretionary?
If the portfolio manager has scope to choose investments from countries that are not human rights violators (both of those countries), then it’s discretionary, if limited.