Asset management valuation survey (PricewaterhouseCoopers)

December 2010

KEYWORDS: SEC, Securities and Exchange Commission, Survey, hedge funds, Private Equity, valuation, Institutional Investors, risk management, transparency, market data, hedge fund registration, Dodd-Frank Act, Investment Advisers Act of 1940, valuation committee, Volatility, real estate asset managers

Authors:

Barry P. Benjamin

Organizations:
  • PricewaterhouseCoopers

Summary:

In recent years asset management firms have faced increasing challenges in valuing their investments due to rapid changes in liquidity and volatility in the securities, derivatives, and real estate markets. At the same time, in the wake of several high-profile enforcement actions, the SEC has placed a priority on identifying industry trends and activities that pose a higher risk to investors and the marketplace — including valuation and related governance processes. Investors are also demanding greater risk management and transparency, as well as independence in, and oversight of, the valuation of securities. This increased demand for transparency is particularly challenging for asset management firms, given the wide variety and massive scale of market data available.

To address these challenges, asset managers need to identify, understand, and prioritize the most valuable information from the best sources. In order to help asset management respond effectively to regulatory and investor demands, PwC conducted a web-based survey designed to gather, analyze and share information about emerging trends in the valuation governance process. The survey was designed to gather data from industry participants in order to help executives and other stakeholders benchmark their valuation governance practices against their peer group across the asset management industry , including the traditional/registered, alternative, private equity and venture capital and real estate sectors.

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