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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Effective

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Archived

Effective: 1 November, 2012 - 31 December, 2019

Categories: Minimum Asset Level

Source: GIPS Handbook, 3rd Edition

Is there a difference between a product minimum and a composite minimum?

Yes. There is a difference between a product minimum and a composite minimum. A composite minimum represents the size below which a portfolio is considered non-discretionary for a specific strategy because the strategy cannot be fully implemented. A composite minimum determines whether a portfolio is included in a composite. A product minimum is used for marketing purposes as a guideline for accepting new portfolios. A firm may accept new clients that have less than the stated product minimum. A firm may have a product minimum and no composite minimum or vice versa or may have different amounts for a product minimum and a composite minimum. If a firm does have a composite minimum, the composite’s performance should not be presented to a prospective client known not to meet the composite’s minimum asset level.