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.

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Archived

Effective: 1 March, 2006 - 30 November, 2013

Categories: Calculation Methodology

Source: GIPS Handbook, 2nd Edition

Over the past month, Client X’s portfolio, which had no external cash flows, started with $1000 and ended with $1038. The capital change was $15, and the income earned was $23. What is the portfolio’s total return for the month?

Capital change: $1015/$1000= 1.5%
Income: $23/$1000= 2.3%
Total Return: $1038/$1000= 3.8%