One of our GIPS(R) (Global Investment Performance Standards) verification clients posed the following question: “We have had the question come up here as to whether a potential limited partner in a partnership that we manage (managed in a similar manner to a mutual fund) is required to receive a GIPS compliant presentation?”

This raises the question as to who the client is?, for GIPS purposes. Our client cited a post I did more than a year ago.

As with a mutual fund, I would argue that for GIPS purposes, the “client” is the partnership, not the investors in the partnership (for a mutual fund, the fund is the “client”). The prospective shareholder/limited partner isn’t investing in the composite’s strategy; they’re investing in a particular product, which no doubt comes with loads of disclosures that will give them all the information they require.

Might it be a good idea to include the appropriate composite presentation(s)? I would say, “yes,” though only if doing so doesn’t conflict with local regulators, who might have rules that make this inappropriate. But in my opinion, it’s not required.