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 January, 2006 - 31 December, 2019

Categories: Portability

Source: Guidance Statement on Performance Record Portability

The Guidance Statement on Performance Record Portability states “Performance track records of a past firm or affiliation must be linked to or used to represent the historical record of a new firm or new affiliation if,” certain conditions are met. What does performance track record refer to in this instance? Can a firm create the composite history based on the portfolios that transfer to the new firm if the history is representative of the old composite?

The concept of portability revolves around the ability to bring a track record from one firm to another. It would not be representative to recreate a record with only selected portfolios. The performance track record refers to the entire composite from the old firm. In addition to meeting all the elements of the Guidance Statement, in order for a firm to be able to link the composite from the old firm to the on-going performance of the new firm, the entire composite performance history, including all portfolios, must be used. The firm must have all the records needed to substantiate that performance history.