Q & A Database

The GIPS Standards Q&A database contains questions and answers (Q&As) on various searchable topics that provide additional interpretation on an issue. Q&As are considered to be authoritative guidance and must be followed in order to claim compliance with the GIPS standards.

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Effective: 1 January, 2020

Categories: Composite Construction

Source: 2020 GIPS Standards

We have a client whose assets are divided between several portfolios, but the assets are managed to the same investment strategy. The client wants to maintain the portfolios separately. Do we consider each portfolio for this one client as separate portfolios or do we combine the separate portfolios into a single combined portfolio for composite inclusion purposes?

If each portfolio is managed such that each portfolio reflects the composite strategy, then the firm may include each portfolio in the composite. Alternatively, the firm could aggregate the portfolios into a single combined portfolio and include that single portfolio in the composite. The choice the firm makes will affect the number of portfolios in the composite and the internal dispersion calculation.

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