If the market movement makes the portfolio below the composite defined min size, should the portfolio be excluded from composite?
Yes. Question 17 in CFA reading 33 is similar. There answer is: ‘The portfolio must be removed from the composite when the portfolio’s assets fall below the minimum, and eturn it to the composite when it once again qualifies for inclusion.’
Thanks a lot!
It should be long term. A temporary dip does not call for removal.
But based on Question 17 in CFA reading 33, we must remove it…