Valtech’s valuation team has recently completed several projects for investment funds, assisting them to perform valuation for financial reporting and mark-to-market for proper disclosures to investors and their financial statements.

Unlike typical valuation practice, valuation for funds requires most sophisticated valuation techniques and strong accounting concepts. Fund investments can include public and private bonds. Some private bonds may be thinly traded. Some private bonds may also include conversion or other derivative features, tranches, collateral, guarantees etc. In some special circumstances, the underlying investments may have defaulted or suspended for trading (for bonds and equity). These special scenarios require valuers to consider very carefully the relevant financial reporting standards and rational pricing models to opine on the valuation results. The concept of fair value hierarchy and suitable disclosure should be made in order to fulfill the increasing requirements for financial reporting.

In a typical valuation project for a sizable fund, Valtech’s team in charge usually includes at least a Chartered Financial Analyst, Certified Public Accountant and a Financial Professional with background in quantitative modelling. The strength in our team structure together with our in-house developed supporting system has helped us gained foothold in the fund valuation market.