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 January, 2007 - 30 November, 2013

Categories: Leverage/Derivatives

Source: GIPS Executive Committee

Do the GIPS standards include an example of how to value a portfolio that includes both long and short futures?

At the beginning of the period the portfolio consists of $130 long stocks and $30 short stocks. Then beginning market value of the total portfolio is $100 (=$130 – $30). If long stocks become $142 and short stocks become $27 at the end, then ending market value of the total portfolio is $115 (= $142 – $27).

R = (115-100)/100 = 15%

Please also see updated Q&A