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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ArchivedEffective: 1 December, 2001 - 30 November, 2013Categories: Sub-AdvisorsSource: Investment Performance Council (IPC)
An investment management firm uses a sub-advisor to manage a portion of the assets for a strategy that the firm manages. Should the assets managed by the sub-advisor be excluded from the composite performance?
If the firm has discretion over the selection of the sub-advisor, then the assets managed by a sub-advisor on behalf of the firm should be included in the firm’s composite performance and total firm assets. Once the assets are given to a sub-adviser to manage, the firm will not have control over exactly how those assets are invested by the sub-advisor. Nevertheless, the firm chose to invest the assets by placing them with a sub-advisor and has the discretion to hire or fire the sub-advisor.
The firm can only include the sub-advisor’s performance record relevant to those assets assigned by the firm.
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