Fundamental Asset Managers claims compliance with the CFA Institute Global Investment Performance Standards (GIPS®) and manages both discretionary and non-discretionary accounts. When constructing a single composite for Fundamental, Juma Dzuya includes all discretionary, fee-paying accounts with both value and growth strategies. Does the composite constructed by Dzuya most likely meet GIPS criteria?
B is correct because a composite must include all actual, fee-paying, discretionary portfolios managed in accordance with the same investment mandate, objective, or strategy (Standards IV Composites).
By including both value and growth portfolios, the composite is made up of portfolios with different investment mandates or strategies.