Fair value pricing survey, twelfth edition


Fair value pricing survey, twelfth edition

Positioning for the future

Executive Summary

In the aftermath of the enforcement action against an investment company’s Board of Directors and related settlement, the mutual fund industry enjoyed a comparatively quiet year on the valuation front without any formal valuation guidance issued by the U.S. Securities and Exchange Commission (SEC). The lone exception came as our survey was closing in July, when the Money Market Fund Rule (the Money Rule) referenced several aspects of valuation and fund governance.

Up until then, the relative calm had as much to do with the market’s persistent rise as it did to the lack of SEC activity or another high-profile enforcement case. The Standard & Poor’s 500 Index ended 2013 up 30% , and it has enjoyed mostly smooth sailing again this year. Fixed income markets have participated in the rally as well, owing to supportive easy-money policies enacted by global central banks. Perhaps the best gauge of the current even-keel environment rests in the Chicago Board Options Exchange Market’s Volatility Index — or the “VIX” — which has remained extremely muted by historical standards.

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Performance magazine issue 17, May 2015

Performance is a triannual digest, dedicated to investment management professionals, which brings you the latest articles, news and market developments from Deloitte’s professionals and clients.

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