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.

Content from prior Q&As was included in the GIPS Standards Handbook as much as possible and many Q&As were archived. Change the Status drop-down filter to "Archived" to see the archived Q&As.

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Archived

Effective: 1 November, 2012 - 31 December, 2019

Categories: Terminated Portfolios

Source: GIPS Handbook, 3rd Edition

We have a portfolio for an individual in one of our composites, but the client passed away and the portfolio had to be closed and re-opened in another legal status. How do we treat this change for composite reporting purposes?

From the perspective of the firm, it does not seem that the portfolio was actually “terminated,” in that the portfolio did not leave the firm and the firm never lost its discretion over the portfolio. The portfolio’s change in legal status alone would not be a valid reason to remove the portfolio from the composite if the assets never left the portfolio, the firm was never restricted in its management of the portfolio, and the strategy of the portfolio remains unchanged.

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