Portability is the ability of an investment management firm to present a performance track record that was produced at a separate firm. This includes situations where investment managers merge or are acquired, as well as when a portfolio manager or management team leaves one firm for another. In each of these scenarios, the general principle is that investment performance is earned by and is the property of the investment management firm, not any individual. In order for an investment management firm to present a track record earned at another firm, certain requirements must be adhered to both for investment advisers registered with the U.S. Securities & Exchange Commission and for firms that claim compliance with the Global Investment Performance Standards (GIPS®).
Guardian’s Performance Portability Assessment services include:
- Explaining the requirements and options for presenting a track record that was achieved at a different firm.
- Discussing and documenting the details of the portability event (merger, acquisition, spin-offs) to identify any potential gaps or compliance concerns.
- Assessing the quality of books and records maintained and whether they are sufficient to meet the requirements for portability.
- Documenting our analysis and conclusions in a formal memo.