Facing valuation challenges

Global Administration Round Table: Confronting a challenging environment

jumble-of-letters-alphabet

The main challenges relate to valuations of private securities, over-the-counter (OTC) securities and thinly traded securities, according to Sharon Grosman and Brendan Conlon at SGGG Fexco. Generally, they say administrators value these instruments based on the policies set out in the legal offering documents.

Problems arise when the values provided are reviewed and are found to be inconsistent with available information or with values provided by other investment managers of other funds. This c