…a description of the frequency of use and characteristics of the instruments sufficient to identify risks.

…the last full measurement period that each portfolio was under management.

…on a timely and consistent basis after each portfolio comes under management.

**YES**. The Standard requires all actual discretionary, fee-paying portfolios be included *at least one composite*.

If a portfolio meets the criteria it may be included in more than one composite.

rcomp = Ending Portfolio Value – Beginning Portfolio Value – Net Cash Flow / Beginning Portfolio Value + Sum of Net Cash Flows Multiplied by Cash Flow Weighting Factors

…the principals of financial accounting.

A measure of the spread of the annual returns of individual portfolios with a composite.

Acceptable measures include:

The length of the interval containing the middle 50 percent of the data.

Thus it is the spread or arithmetic difference between the returns at the 25th and the 75th percentiles.

Ly = (n + 1)(y/100)

n = sample size

y = usually a quartile

*You still need to do linear interpolation.*

rproxy is asset-weighted mean return of portfolios

wi is weight of portfolio i