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.

Search by category, status, date range, and/or keyword.

to
1 Result

  • Current

    Effective: 1 November, 2021
    Categories: Carve-Outs
    Source: GIPS Standards Technical Committee

    Is there a specific methodology we must use when synthetically allocating cash and any related income to a carve-out?

    The GIPS standards do not require a specific calculation methodology for synthetically allocating cash and any related income to carve-outs. The firm must develop a calculation methodology that generates performance that is not misleading, presents performance fairly, and is applied consistently. The firm must document policies and procedures for how cash is allocated to carve-outs on a composite-specific basis.

    Examples of some acceptable methodologies that may be used to allocate cash synthetically to a carve-out are included on the Tools page of the GIPS standards website under the Firms section. There is a spreadsheet named Carve out TWR Calculations that includes methodologies when time-weighted returns are used, and a spreadsheet named Carve out MWR Calculations that includes methodologies when money-weighted returns are used.