Valuation Issues For Investment Funds

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Executive Summary

When collateral or positions are fundamentally revalued to the point of illiquidity or frozen, funds holding assets or positions associated with affected assets may be unable to complete month-end valuations necessary for calculating the net asset value per share ("NAV"). The media has reported that many funds affected have suspended NAV calculations which means redemption requests from investors will also most likely be deferred. Many funds have been looking for ways to properly mark and disclose NAV's.