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.

The GIPS Standards Helpdesk is available for individual questions and typically responds to inquiries within 3 business days.

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Status

Organization Type

Effective

Keyword

1 Result

Archived

Effective: 1 June, 2002 - 31 October, 2012

Categories: Calculation Methodology, Client Reporting

Source: Investment Performance Council (IPC)

Do I violate the GIPS standards if I report money-weighted rates of return for a single portfolio to an existing client?

No. The GIPS standards primarily address the presentation of a firm’s performance to prospective clients. Performance reporting to existing clients is something that should be agreed upon between the firm and the client. While the GIPS standards do not specifically address the issue of performance reporting to existing clients, firms should remember that compliance with the Standards is made on a firmwide basis and the fundamental principles of the Standards, fair representation and full disclosure, must be upheld. Firms must not present any information that could be misleading.

When presenting an existing client the performance of their own portfolio the use of money-weighted returns may be appropriate because it reflects the effects of the client’s cash flows.

Please also see updated Q&A