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Matthias Knab, Opalesque for New Managers:

The International Organization of Securities Commissions (IOSCO) today published the Consultation Report ("Report") on Valuing Collective Investment Schemes (CIS).

This report invites comments and feedback from IOSCO members and market participants on a combined set of recommendations. The proposed recommendations will update IOSCO's 2007 Principles for the Valuation of Hedge Fund Portfolios and its 2013 Principles for the Valuation of Collective Investment Schemes (collectively, the "Principles").

Robust valuation practice is a critical component of asset management, ensuring that assets are properly valued and investors are not disadvantaged. Asset valuations determine the net asset value (NAV) of a fund, and the NAV is then used to calculate the price at which investors transact in units of a fund. Proper valuation also serves as important information for investors when making asset allocation decisions and selecting funds as well as financial reporting, performance reporting, and calculating fees paid to CIS service providers. If asset valuations are improper, investors may unfairly pay more or receive less for their shares which can lead to diminished returns for investors as well as a loss of investor confidence.

IOSCO found from its preparatory review of the Principles that, whilst they have been broadly implemented and remain effe......................

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