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: Composite Construction

Source: GIPS Handbook, 3rd Edition

In the 2005 edition of the GIPS standards, a portfolio is not permitted to be switched from one composite to another unless documented changes in client guidelines or the redefinition of the composite make it appropriate. The 2010 edition of the GIPS standards states that portfolios must not be switched from one composite to another unless documented changes to a portfolio’s investment mandate, objective, or strategy or the redefinition of the composite make it appropriate. Because the word “client” was removed from the provision, does this mean a portfolio can be moved from composite to another based on tactical asset allocation?

No. Portfolios must not be moved into or out of composites due to changes in the tactical asset allocation. Portfolios can only be moved into different composites in the case of client-documented strategic asset allocation changes.