GIPS - terminated portfolio business, management, 2011, period, include

John10

Question, if a firm loses a client, say May 15, 2011 when do they remove them from the historical performance composite?

The text says that you must include a terminated portoflio in the historical performance of the appropriate composite up to the last full measurement period that the portfolio was under management.

Does this mean that we include them througth April 30? And even though we lost their business, we still include them in past composites from their inception until they were terminated?
Ie, a year from now (2012) they are still in our historical composites through April 30, 2011?

Darien

mcap11 Wrote:
-------------------------------------------------------
> Question, if a firm loses a client, say May 15,
> 2011 when do they remove them from the historical
> performance composite?
>
> The text says that you must include a terminated
> portoflio in the historical performance of the
> appropriate composite up to the last full
> measurement period that the portfolio was under
> management.
>
> Does this mean that we include them througth April
> 30? And even though we lost their business, we
> still include them in past composites from their
> inception until they were terminated?
> Ie, a year from now (2012) they are still in our
> historical composites through April 30, 2011?

I was actually talking to one of our GIPS consultants about this yesterday. If your measurement period is monthly, you remove them the first day of the next measurement period. In your example, the account would be removed from the composite as of 05/01/2011 but the historical performance of the account prior to 05/01/2011 remains in the composite.

bpdulog

Although keeping in mind, you are removing that account from future reports, the old reports should include the account. Old reports are locked tight, and should never be modified unless an error is found.



Edited 1 time(s). Last edit at Wednesday, May 11, 2011 at 07:19PM by jbaphna.

NakedPuts00

^Even new reports need to keep that account within the historical performance record. Not sure if that's what you're saying there. Just clarifying.

A side note about the May 15 termination: a key reason you would stop at the April 30 performance is because for the last half of the month of May the account is likely to go into liquidation mode and is at that point non-discretionary.

mp3bu

that's what I thought - thanks