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 October, 2012

Categories: Terminated Portfolios

Source: Investment Performance Council (IPC)

Firm A has a policy of removing terminated portfolios on the first day of the month that the firm was notified of termination. If notification of a portfolio’s termination is received on 25 May, when should it likely be removed from the composite?

The firm’s policy should be based on removing the portfolio from the composite at the start of the performance measurement period when the firm no longer has discretion over the assets. Assuming monthly performance measurement periods, the portfolio should be included in the composite performance calculations through 30 April but should be excluded from the composite calculations for May, if the firm had discretion over the assets through the month of April and no longer had discretion over the assets after 25 May.

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