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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ArchivedEffective: 1 December, 2013 - 31 December, 2019Categories: Carve-OutsSource: GIPS Executive Committee
If a segment of a multi-asset class portfolio is managed with its own cash balance, does the composite with the segment in it require the carve-out disclosures listed in the Guidance Statement for the Treatment of Carve-Outs?
If the asset class segment is managed separately with its own cash balances, the firm is not required to include the disclosures relating to carve-outs. If there is a manual cash allocation performed for periods prior to January 1, 2011, the composite’s compliant presentation must include disclosure of the policy used to allocate cash to the carve-out returns and must present the percentage of the composite that is composed of carve-outs as of each annual period end for periods beginning on or after January 1, 2006 and ending prior to January 1, 2011. Please review the Guidance Statement on the Treatment of Carve-Outs.
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