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 March, 2006 - 31 October, 2012

Categories: Minimum Asset Level

Source: GIPS Handbook, 2nd Edition

We have a composite of 120 accounts with a 10-year track record. We’d like to reclassify half of those accounts and move them to other composites as they no longer fit the objective of the historical composite. This is largely due to the accounts decreasing in size whereby there are not enough assets to buy all the appropriate number of securities for the style Would we lose the historical performance record of the composite by removing so many accounts (more than half)?

If a firm chooses to implement a minimum asset level or change a minimum asset level for an existing composite, the firm must document and disclose the change to the minimum and apply the new limit consistently going forward. The firm must not go back and restate historical performance figures to include or exclude portfolios using the new minimum asset level.

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