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Ninth Annual Fair Value Pricing Survey

Managing risk through time-tested practices


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Talk to acclaimed athletes, corporate strategists or military leaders, and they will tell you that one of the key ingredients to their success is preparation. What separates many of them from the pack is a finely honed ability to game out a wide variety of scenarios and have an answer for each.  Preparedness is no less important for asset managers, particularly in these uncertain times. In the years we have conducted this survey, we have seen mutual fund groups continually make changes, to their valuation policies and procedures in order to address lessons learned from the past and help them prepare for future risks.

These efforts appeared to bear fruit over the last year. Although several major international crises and other events occurred during the year that required the attention of asset managers -- such as the BP oil spill, civil unrest in the Middle East and in Africa, and the devastating environmental disaster in Japan -- none of them had the same impact on the valuation process as the global credit crisis that preceded them. Indeed, our survey results seem to reflect a certain comfort level with where things stand, as a larger percentage of fund groups than last year reported making no changes to their valuation policies and procedures. Nonetheless, many survey participants continue to make slight changes, and the fact that we experienced more than a 10 percent uptick in the number of survey participants this year lends added credence to the conclusion that fair value is still top of mind. For the past eight years, Deloitte has conducted an annual Fair Value Pricing Survey and it continues to serve as an effective tool in tracking valuation policies, industry practices, and governance and oversight procedures used by leading asset managers.

In this ninth year, survey participants consisted of 79 asset managers who advise more than 3,300 mutual funds with assets under management (AUM), exceeding $2.6 trillion. The survey population included those from fund complexes of varying sizes and investment types.

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