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: Portability

Source: GIPS Handbook, 2nd Edition

Manager Q leaves Firm S to join Firm V. Manager Q was the sole investment decision maker for the composite, all of the assets in the composite transferred with Manager Q to Firm V, Manager Q obtained copies of the historical records supporting performance (with permission of Firm S) and the investment process for the composite will remain intact and independent at Firm V. Because all the rules of portability apply, Firm V links Manager Q’s performance history to its composite’s ongoing results at Firm V. Can Firm S continue to claim the historical track record even though the manger responsible for the performance is no longer with the original firm?

Yes. The Guidance Statement on Performance Record Portability states, “Performance is the record of the firm, not of the individual.” If Firm S continues managing new portfolios according to the same style and objectives by replacing manager Q with a new manger, Firm S must use the historical performance of the composite to represent the ongoing performance achieved by the new manager. However, the firm must disclose any significant events within the firm (such as personnel changes) that would help a prospective client interpret the performance record (see Provision 4.A.19).

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