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: 1 March, 2006 - 31 October, 2012

Categories: Terminated Portfolios

Source: GIPS Handbook, 2nd edition

We have an account for an individual in one of our composites, but the client passed away and the account had to be closed and re-opened in another legal status. How do we treat this change for composite reporting purposes?

From the perspective of the investment management firm, it does not seem that the portfolio was actually “terminated,” in that the portfolio did not leave the firm and the firm never lost its discretion over the portfolio. The change in legal status of the portfolio would not be reason to stop and start the performance, especially in light of the fact that the assets never left the portfolio, the firm was never restricted in its management of the portfolio, and the strategy of the portfolio remains unchanged.

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