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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Effective

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Archived

Effective: 1 March, 2006 - 31 October, 2012

Categories: Performance History/Track Record

Source: GIPS Handbook, 2nd Edition

Our firm has been compliant with the Standards since its inception. Our initial composite with our growth-equity strategy has over five years of performance history. We subsequently added a new mid-cap strategy leading to the creation of a separate mid-cap composite. This mid-cap composite does not have the five years of performance history yet. Is the 5-year building to 10-year requirement on a firm-wide basis or is it on an individual composite basis? May we show the mid-cap composite as compliant without the five years of history?

The 5-year building to 10-year requirement is on a firm-wide basis.

The firm must include all fee-paying, discretionary portfolios in composites. It is not required that every composite have an initial five-year history corresponding to the firm’s first five years of existence. Composites may come and go during the firm’s existence, but all appropriate portfolios within the firm must be in an appropriate composite for the 5-year building to 10-year period.

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