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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1 Result

Archived

Effective: 1 November, 2012 - 31 December, 2019

Categories: Model Results

Source: GIPS Handbook, 3rd Edition

Firm A wants to offer a new investment management style. To demonstrate its capability to manage assets according to the new balanced strategy, Firm A creates a new balanced composite and produces three years of performance history using hypothetical assets and a back-tested asset allocation strategy. Can Firm A present this hypothetical composite history as a composite in a compliant presentation?

No. Hypothetical and back-tested composite returns do not satisfy the requirements of the GIPS standards. Composite returns must only contain actual portfolios managed by the firm and must not include hypothetical or back-tested results. Firms may present hypothetical or back-tested results clearly labeled as supplemental information.

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