Deloitte recently reported the results of its fourteenth annual Fair Valuation Pricing Survey of 96 mutual fund firms. The findings indicate that a majority of survey participants changed or revised their valuation policies in the past year although that percentage decreased from 73% in the prior year to 63%. The changes included: the addition of more pricing sources and investment types as well as changes to pricing committee composition, responsibilities, and/or meeting frequency. The survey found that about 25% of participants sought ways to improve the efficiency of the valuation process, reduce redundancies and increase the use of automation. With respect to board governance of valuation, the survey found that:
- 60% of participants reported that the full board, a committee of the board, or one or more board members receive information regarding price challenges, compared to 57% in the prior year.
- 36% reported that the percentage of the overall board agenda dedicated to valuation increased.
- 61% reported that their boards are receiving information on instances in which the fund groups did not use the primary pricing source, an increase from 32% in the prior year.
The Deloitte survey aggregates the views of 96 mutual fund firms, and participants hold more than $5 trillion in assets under management in registered funds. The survey took place between June and August 2016.