The investing institution’s assets are valued in accordance with recognized international or national accounting standards where appropriate, as well as industry best practice. Valuations are performed, or at least verified, independently.
Guideline code
INVEST_02300
Mechanism
Mechanism
- An independent third party, such as a custodian, should be appointed to perform, or at least verify, valuations for the portfolio as a whole, asset classes, direct investments and managers.
- Valuations should be conducted in accordance with recognized international or national accounting standards, as well as industry best practice. Mark-to-market (or fair value) accounting should be undertaken wherever possible to value assets held by the social security institution and its managers. Where mark-to-market accounting is not considered appropriate or possible, the investing institution should seek appropriate external advice on the best approach to value assets.
- Valuations obtained using recognized international or national accounting standards, as well as industry best practice, should be disclosed to stakeholders. The frequency and format of reporting should be in line with best practice.
Parent
Structure
Structure
- Valuations of the investing institution’s portfolios and managers should be performed, or at least verified, by an independent third party.
- Investment and accountancy best practice should be adopted when valuing the portfolio as a whole, asset classes, direct investments and managers.
- The investing institution should endeavour to ensure that information about investments is as transparent as possible.
Title HTML
Guideline 20. Valuation of the investment portfolio
Type
Guideline_1
Weight
27