1. The concept of fund asset valuation
Total fund assets
Total fund asset value refers to the sum of the value of all assets of the fund
Fund net asset value
The net asset value of the fund is obtained by deducting all liabilities from the total asset value of the fund.
Net value of fund shares
The fund's net asset value divided by the fund's current total shares
2. Factors that need to be considered in the valuation of fund assets
1. Valuation frequency
Funds generally value fund assets at fixed time intervals , and relevant regulations usually stipulate a minimum valuation frequency.
China's open-end funds are valued on each trading day, and the net value of shares is announced no later than the next trading day; closed-end funds and regular open-end funds are valued every trading day during the closed period, but are disclosed once a week Net value of fund shares.
2. Fairness of transaction price
When a fund invests in actively traded securities , it is easier to value its assets.
In this case, the underlying asset can be valued directly by using market transaction prices .
Solving the Valuation Problem of Inactive Securities - Side Pocket Mechanism
The side pocket mechanism is to separate specific assets in the fund investment portfolio from the original account to a special account for disposal and liquidation. The purpose is to effectively isolate and resolve risks and ensure that investors are treated fairly. It is a liquidity risk management tool.
During the implementation of the side pocket mechanism, the original account is called the main pocket account, and the special account is called the side pocket account .
3. Consistency and openness of valuation methods
3. Principles of Fund Asset Valuation in my country
Responsible person for fund asset valuation
According to the provisions of the Securities Investment Fund Law, the person responsible for the valuation of fund assets in China is the fund manager .
Basic principles of valuation
There is an active market
If there is a quotation on the valuation date , the quotation shall be applied to the fair value measurement of the asset or liability without adjustment , except for exceptions stipulated in accounting standards .
If there is no quotation on the valuation day and no major event that affects the measurement of fair value has occurred since the most recent trading day, the fair value shall be determined using the quotation on the most recent trading day .
There is no active market
For investment varieties that do not have an active market, fair value should be determined using valuation techniques that are applicable under the current circumstances and supported by data and other information . When using valuation techniques to determine fair value, priority should be given to using observable input values . Unobservable input values can only be used when observable input values for relevant assets or liabilities cannot be obtained or are impractical to obtain.
major changes