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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1 Result

Archived

Effective: 1 October, 2009 - 31 October, 2012

Categories: Discretion

Source: GIPS Executive Committee

A firm is hired to manage a multiple-strategy mandate. Must a discretionary, multiple-strategy portfolio be included in a multiple-strategy composite? Would the answer be the same if each of the portfolio’s segments are included in a corresponding composite? For example, if a firm manages a discretionary balanced strategy that contains equity and fixed income segments, must the balanced portfolio be included in a balanced composite if the equity and fixed income segments (including cash) are included in their respective composites?

The GIPS standards require that all fee-paying discretionary portfolios must be included in at least one composite. Accordingly, a discretionary, multiple-strategy portfolio must be included in a multiple-strategy composite.

The answer would be the same if each of the portfolio’s segments are included in the relevant composites. Including all the segments of a discretionary multiple-strategy portfolio in composites does not eliminate the requirement to include the total portfolio in a composite.

When generating the total firm assets number, an asset must be counted only once, even if it is included in more than one composite.

Note: This guidance represents a change from a previously issued AIMR-PPS Q&A on this topic.

Please also see updated Q&A