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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ArchivedEffective: 1 November, 2012 - 31 December, 2019Categories: PortabilitySource: GIPS Handbook, 3rd Edition
At Firm T, Manager D is responsible for Firm T’s Emerging Markets Composite. Although Manager D makes all the investment decisions for the portfolios in the composite, Manager D is supported by Firm T’s research department and trading desk. Firm U is seeking to establish an emerging markets investment strategy and hires Manager D to join Form U. Does Firm U meet the portability test for requiring substantially all investment decision makers to be employed by the new firm?
Firm U must determine if Manager D constitutes “substantially all of the investment decision makers” for the Emerging Markets Composite, considering the research department and trading desk did not join Firm U. Firm U must also determine if all the other portability requirements are met. If the portability requirements are met, Firm U must link the prior performance from Firm T. If the portability requirements are not met, the historical performance from Firm T must not be linked to the performance of Firm U. If the portability requirements are not met, the performance from Firm T can only be shown as supplemental information, provided Firm U has records that document and support the performance of the Emerging Markets Composite. Firms must adhere to all requirements regarding the use of supplemental information.