Alt Valuations’ Post

Securities and Exchange Board of India (SEBI) turns to the public for the enhancement of AIFs valuation framework. The proposal rational is simple: To seek public opinion on AIFs valuation framework in hopes of guiding the adoption of a simple, consistent and standardized approach for valuing investment portfolios. "The key proposals include (a) the applicability of valuation norms under SEBI (Mutual Fund) Regulations to compute the valuation of AIFs’ investment portfolios, (b) the eligibility criteria for independent valuers to be appointed by AIFs and (c) extending the timeline to report valuation of investments to performance benchmarking agencies to 7 months." Read Taxmann's full blog here: https://lnkd.in/eFqNvRV7

Key consultation, have your voice heard! Only 22 plain English questions

The OSC published its Summary Report for Investment Fund and Structured Product Issuers, which provides an overview of key activities undertaken by the Investment Management division for the fiscal year. https://lnkd.in/g9tuQMFE

On September 19, the Canadian Securities Administrators (CSA) - Autorités canadiennes en valeurs mobilières (ACVM) published for comment a series of proposed amendments aimed at modernizing the continuous disclosure regime for investment funds. The proposals are designed, among other things, to provide investors with more legible and valuable disclosure.   The proposed amendments contemplate requiring some new information in the Fund Report as compared to the actual MRFP including a brief summary of the investment fund manager's assessment of the investment fund’s success in respect of achieving its investment objectives, and using its investment strategies to achieve those investment objectives, during the period covered by the report.   In this context, we have included instructions that specifically assist investment funds that have environmental, social and governance (ESG)-related aspects to their investment objectives and/or investment strategies, in providing this disclosure. For example, we highlight that it is appropriate to include an analysis of the following elements that apply:   ➡️ key quantitative metrics used by the investment fund manager to assess whether the investment fund has satisfied the stated ESG-related aspects of the investment objectives of the investment fund;   ➡️ key quantitative metrics used by the investment fund manager to assess whether the investment fund has satisfied the stated ESG-related criteria for the investment strategies of the investment fund;   ➡️ how the investment fund’s use of proxy voting, shareholder engagement and issuer engagement, as applicable, as principal investment strategies satisfied the stated ESG-related aspects of the investment fund’s investment objectives or the stated ESGrelated criteria for the investment strategies; and   ➡️how significant changes made to the composition of the investment portfolio of the investment fund align with the stated ESG-related aspects of the investment fund’s investment objectives or the stated ESG-related criteria for the investment strategies.   🔗 The CSA Consultation Notice is available at the following link: https://lnkd.in/eFJbrDQY    🗓️ The consultation ends on January 17, 2025.   🌎📊

SEBI has updated its framework for determining the value of AIF investment portfolios. Investments in securities with limited trading or non-traded securities will be assessed using a standardized process by March 31, 2025.

The staff of the Securities and Exchange Commission published a new report of Investment Adviser Statistics, which is based on aggregated data filed by investment advisers on Form ADV. The new report, which will be updated on an annual basis, is designed to give the public a view into the investment advisory industry, with insights into areas such as business activities, client composition, and the types of funds advised. The report shows trends over time. Click here to view: https://lnkd.in/gMFmTj67 #SEC #News #IA #BD #RRSCompliance #RIA #Examinations #RiskManagement #MarketingRule #ComplianceReviews

We are excited to announce that the Aoris International Fund has been upgraded to a Recommended rating by Lonsec. Lonsec based the rating on a number of key attributes, including the credentials and experience of the investment team, impressive track record and robust nature of the business. The Recommended rating is a testament to our disciplined investment processes and the Fund’s ability to deliver on its investment objectives. Over five years to March 2024, the Fund’s Class A delivered a return of 17.0% p.a. (after fees), outperforming the benchmark by 4.1% p.a. Aoris has grown to more than $1.3b in Funds Under Management. Well done to the entire team. ----------------------------------------------------------------------------------- This information has been prepared and issued by Aoris Investment Management Pty Ltd ABN 11 621 586 552 / AFSL 507281 (Aoris) as the investment manager of the Aoris International Fund (Fund). The Trust Company (RE Services) Limited ABN 45 003 278 831 is the responsible entity and the issuer of units in the Fund. For general advice only and does not take into account the objectives, financial situation or needs of investors. Read the PDS and Target Market Determination (TMD) available at https://lnkd.in/gMCKKEVU to see if the product is right for you. All investments contain risk and may lose value https://lnkd.in/g3pSx9U

𝐄𝐧𝐬𝐮𝐫𝐢𝐧𝐠 𝐂𝐨𝐦𝐩𝐥𝐢𝐚𝐧𝐜𝐞 𝐚𝐧𝐝 𝐓𝐫𝐚𝐧𝐬𝐩𝐚𝐫𝐞𝐧𝐜𝐲: 𝐓𝐡𝐞 𝐑𝐨𝐥𝐞 𝐨𝐟 𝐏𝐨𝐫𝐭𝐟𝐨𝐥𝐢𝐨 𝐕𝐚𝐥𝐮𝐚𝐭𝐢𝐨𝐧𝐬 𝐢𝐧 𝐔𝐊 𝐈𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭 𝐅𝐮𝐧𝐝𝐬. How confident are you in the accuracy of your current portfolio valuations, and could independent expertise help ensure compliance with UK regulations and enhance investor trust? In the UK, several regulatory frameworks mandate regular portfolio valuations to ensure transparency and investor protection. The primary regulations include the 𝐅𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐂𝐨𝐧𝐝𝐮𝐜𝐭 𝐀𝐮𝐭𝐡𝐨𝐫𝐢𝐭𝐲'𝐬 (𝐅𝐂𝐀) 𝐫𝐮𝐥𝐞𝐬 𝐮𝐧𝐝𝐞𝐫 𝐭𝐡𝐞 𝐂𝐨𝐥𝐥𝐞𝐜𝐭𝐢𝐯𝐞 𝐈𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭 𝐒𝐜𝐡𝐞𝐦𝐞𝐬 𝐒𝐨𝐮𝐫𝐜𝐞𝐛𝐨𝐨𝐤 (𝐂𝐎𝐋𝐋) 𝐚𝐧𝐝 𝐅𝐔𝐍𝐃 𝐒𝐨𝐮𝐫𝐜𝐞𝐛𝐨𝐨𝐤 for alternative investment fund managers. These frameworks require asset managers to adhere to fair valuation practices, particularly ensuring that illiquid or hard-to-value assets are marked to market, or fair value is determined, in a consistent and transparent manner. This is critical for investor confidence and compliance. Under 𝐈𝐅𝐑𝐒 𝟏𝟑 (𝐈𝐧𝐭𝐞𝐫𝐧𝐚𝐭𝐢𝐨𝐧𝐚𝐥 𝐅𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐑𝐞𝐩𝐨𝐫𝐭𝐢𝐧𝐠 𝐒𝐭𝐚𝐧𝐝𝐚𝐫𝐝𝐬), fair value measurement is a key requirement for reporting, obliging investment funds to disclose how their portfolio assets are valued. For private equity and venture capital funds, 𝐈𝐧𝐭𝐞𝐫𝐧𝐚𝐭𝐢𝐨𝐧𝐚𝐥 𝐏𝐫𝐢𝐯𝐚𝐭𝐞 𝐄𝐪𝐮𝐢𝐭𝐲 𝐚𝐧𝐝 𝐕𝐞𝐧𝐭𝐮𝐫𝐞 𝐂𝐚𝐩𝐢𝐭𝐚𝐥 𝐕𝐚𝐥𝐮𝐚𝐭𝐢𝐨𝐧 𝐆𝐮𝐢𝐝𝐞𝐥𝐢𝐧𝐞𝐬 (𝐈𝐏𝐄𝐕) are also widely adopted. These standards provide a framework for determining the fair value of unquoted or illiquid investments, aligning with the broader regulatory demands. Moreover, the 𝐀𝐥𝐭𝐞𝐫𝐧𝐚𝐭𝐢𝐯𝐞 𝐈𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭 𝐅𝐮𝐧𝐝 𝐌𝐚𝐧𝐚𝐠𝐞𝐫𝐬 𝐃𝐢𝐫𝐞𝐜𝐭𝐢𝐯𝐞 (𝐀𝐈𝐅𝐌𝐃) imposes additional valuation obligations, focusing on risk management, governance, and safeguarding investors' interests in alternative investment funds. 𝐀𝐈𝐅𝐌𝐃 𝐫𝐞𝐪𝐮𝐢𝐫𝐞𝐬 𝐭𝐡𝐚𝐭 𝐯𝐚𝐥𝐮𝐚𝐭𝐢𝐨𝐧𝐬 𝐛𝐞 𝐜𝐚𝐫𝐫𝐢𝐞𝐝 𝐨𝐮𝐭 𝐢𝐧𝐝𝐞𝐩𝐞𝐧𝐝𝐞𝐧𝐭𝐥𝐲 𝐭𝐨 𝐚𝐯𝐨𝐢𝐝 𝐜𝐨𝐧𝐟𝐥𝐢𝐜𝐭𝐬 𝐨𝐟 𝐢𝐧𝐭𝐞𝐫𝐞𝐬𝐭, 𝐟𝐮𝐫𝐭𝐡𝐞𝐫 𝐞𝐧𝐬𝐮𝐫𝐢𝐧𝐠 𝐭𝐡𝐞 𝐢𝐧𝐭𝐞𝐠𝐫𝐢𝐭𝐲 𝐨𝐟 𝐟𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐫𝐞𝐩𝐨𝐫𝐭𝐬. These regulations underscore the critical importance of accurate and timely portfolio valuations in maintaining transparency, trust, and regulatory compliance in the UK’s and in the EU's investment management sector. Get in touch with me if you would like to know more about how independent valuation expertise can assist you to ensure compliance with UK and EU regulations and enhance investor trust and to support your investment funds' reporting requirements. #CFOs #InvestmentFunds #PortfolioValuation #AIFMD #FCACompliance #FundCFOs #PrivateEquityValuation #VentureCapital #IPEV #UKFinance #FairValue #AssetManagement #PrivateEquity #PrivateDebt #VentureCapital

Introducing a new player in municipal bond investing: the iMGP APA Enhanced Income Municipal Fund (APAMX)! iM Global Partner, in collaboration with @Asset Preservation Advisors—specialists in municipal bonds—is thrilled to announce the launch of APA Enhanced Income Municipal Fund (APAMX). Designed to provide tax-exempt income, this fund offers diversified exposure to lower investment-grade-rated municipal bonds. The investment strategy focuses on uncovering pricing inefficiencies through a bottom-up, fundamental credit analysis. By targeting lower-rated municipals, APAMX emphasizes risk management and relative-value investing, generating competitive risk-adjusted returns. The strategy leverages APA’s 30-year track record in municipal bond management making it a truly valuable solution for today’s market environment. Explore more about APAMX and how it aligns with your investment goals at www.imgpfunds.com/apamx. For detailed insights, read our full press release here: [Link]. #AssetManagement #MunicipalBonds #InvestmentManagement #NewFundLaunch #PeoplePerformance The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The Fund’s investment objectives, risks, charges, and expenses must be considered carefully before investing. The statutory and summary prospectuses contain this and other important information about the investment company, and it may be obtained by calling 800-960-0188 or visiting www.imgpfunds.com. Read it carefully before investing. The Fund is distributed by ALPS Distributors, Inc.

Valuation framework for Alternative Investment Funds One of the key aspects of SEBI (Alternative Investment Funds) Regulations is the standardization of the approach to carry out valuation of investment portfolios. AIFs are required to carry out the valuation of their investments in the manner specified by SEBI from time to time. In the case of securities for which valuation norms have already been prescribed under SEBI (Mutual Funds) Regulations, 1996 (‘MF Regulations’), the valuation shall be carried out as per the norms prescribed under the MF Regulations. For securities that are not covered under the MF Regulations, valuation guidelines endorsed by any SEBI recognized AIF industry association, which represents at least 33% of the number of SEBI registered AIFs, shall be taken into account. The guidelines must be endorsed after taking into account recommendations of Alternative Investment Policy Advisory Committee of SEBI. Investment Managers of AIFs are also required to disclose in the Private Placement Memorandum (PPM), the details of the valuation methodology and approach adopted under the relevant guidelines for each asset class of the scheme of the AIF. To ensure the integrity of these valuation processes, investment managers bear significant responsibilities. Responsibilities of Investment managers Include: 1.    To ensure that the independent valuer computes and carries out the valuation of the investments of the schemes of the AIFs in the manner as specified by the board. 2.    To deviate from the established valuation policies and procedures only in exceptional circumstances when it is determined that such deviation is necessary to achieve a fair and appropriate valuation. The Investment Manager shall provide rationale for such deviation. 3.    To inform the investors of reasons/ factors for deviation of more than 20% between two consecutive valuations or deviations of more than 33% in a financial year. 4.    To comply with the relevant process in case of any material change in the valuation methodology and approach for the valuation of investments of the scheme of AIF. The AIF must appoint an independent valuer with at least three years of experience in the valuation of unlisted securities. The independent valuer shall not be an associate of the manager, sponsor, or trustee of the AIF. The independent valuer shall comply with the criteria specified by SEBI. The Investment Manager of AIF shall submit a report on compliance with the provisions of the circular on the SEBI Intermediary Portal in the format as specified. Investment managers must adhere to the valuation standards and leverage independent expertise to safeguard investor interests. ANB Legal #AIFs #Valuation #SEBI