Introduction to Fund Pricing and Asset Valuation

Course Outline and Objectives

Fund Managers, Administrators and Depositaries all need to ensure funds are fairly and accurately priced. Today, this is a greater challenge than ever because of a wider range of assets, increased number of share classes and the challenges of market volatility. Demands for increased efficiency and robust risk management processes only add to the complexity.

This focused one day workshop will provide delegates with a thorough understanding of NAV calculation, the challenges of share class accounting, illiquid securities, fair pricing and derivatives. The course will concentrate on pricing errors with examples and the measures that could be used to identify and prevent them.

The course will give practical answers to questions such as:

1. How can I prevent pricing errors?
2. What controls does the depositary expect?
3. What do I do if I have a pricing error?
4. How much can I outsource?
5. What oversight arrangements should I have?
6. How do I handle derivatives?
7. What are the challenges with volatile markets?
8. What should be in the service level agreement?

Who will benefit?

This event will be of value to anyone seeking a practical introduction or refresher to fund accounting. This will include individuals responsible for fund accounting, valuation, taxation, oversight and operations at Fund Managers, Depositaries and Third Party Administrators.

Training Approach

This workshop uses a combination of trainer input, interactive syndicate work and case studies. Group size is kept to a maximum of 16 to ensure a high quality learning environment.

Course Agenda

Topics covered may include but are not limited to:

• Introduction to fund valuation
• Share class accounting
• Difficult to price securities
• Dilution levies and swinging pricing
• Fair valuation techniques
• Developing effective control environments
• Pricing errors
• Performance fees
• Effective yield
• Derivatives
• Taxation
• UCITS IV
• Report & Accounts
• Roles and Expectations of the Depositary
• Governance of fund accounting