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: Partial Period Returns

Source: GIPS Handbook, 3rd Edition

Firm A was established on 1 March 1998 and claims compliance with the GIPS standards. The firm presents the performance history for its balanced composite in annual increments by calendar year. From its inception (1 March 1998) through 31 December 1998, the balanced composite earned a return of 14.6%. Can Firm A annualize the 10-month return and present the result as the annual return for 1998?

No. Firms are not permitted to annualize partial year returns. The firm must clearly disclose that the composite’s 1998 return is for the partial period of 1 March 1998 through 31 December 1998.

Please also see original Q&A