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: Portability

Source: GIPS Handbook, 3rd Edition

At Firm X, portfolio managers A, B, and C are part of a six-person investment management team responsible for managing Firm X’s Growth and Income Composite. Firm Y hires managers A, B, and C to start a growth and income strategy at Firm Y. Does Firm Y meet the portability test for requiring substantially all investment decision makers to be employed by the new firm?

Firm Y must determine if portfolio managers A, B, and C constitute “substantially all of the investment decision-makers” for the Growth and Income Composite. Firm Y must also determine if all the other rules of portability are met. If the portability requirements are met, Firm Y must link the prior performance from Firm X. If the portability requirements are not met, the historical performance from Firm X must not be linked to the performance of Firm Y. If the portability requirements are not met, the performance from Firm X can only be shown as supplemental information, provided Firm Y has records that document and support the performance of the Growth and Income Composite. Firms must adhere to all requirements regarding the use of supplemental information.

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