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 October, 2007 - 30 November, 2013

Categories: Carve-Outs

Source: GIPS Executive Committee

If two asset class segments of a multi-asset class portfolio are managed independently with their own cash balance, do the composites with those segments in them require the carve out disclosures listed in the Guidance Statement for the Treatment of Carve-Outs?

If the two asset class segments are managed independently with their own cash balances, the GIPS compliant presentations will not require the disclosures relating to carve-outs. If there is a manual cash allocation performed and the portfolios are not managed independently, the composite’s GIPS compliant presentation must disclose the policy used to allocate cash to the carve-out returns and the percentage of the composite that is composed of carve-outs prospectively for each period. Please review the Guidance Statement on the Treatment of Carve-Outs.

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