I know I have seen this on AF, but can’t find it now that stress is setting in. Could someone please confirm this? The min number of portfolios in a composite is 5 or more or is it more than 5 (i.e. 6+)? Thx
There IS NO minimum # of portfolios in a composite. You could have a single portfolio composite if you wanted to. BUT, if there’s less than 6 in that composite, you don’t have to: -List the number of portfolios included in the composite -List an internal dispersion for each period
I have been studying GIPS all day. The minimum number is 1. If there are 6 or more you need to report how many there are and a measure of dispersion. See Question 16 p 316 CFAI Vol 6.
McLeod, thanks for the answer. Sorry my question wasn’t very clear.
I just did an exercise on CFA website.
In this composite there are only 5 portfolio in the first year (2009), while more than 6 in the others.
I made a mistake because I said that it is an error to show the internal dispersion also in the 2009 but I was wrong.
Could someone explain me the reason?
read DNA’s post
I read it.
The problem is that they show the internal dispersion measure also for the year with less than 6 portfolio… So I do not understand how it works. What do you think?
Thank you again
WIth 5 or less in the composite, it is optional to show internal dispersion and also optional to show the # of portfolios.