PriceWaterhouseCoopers has issued its annual survey of valuation practices. The survey of 50 US based asset managers of various sizes is designed to gather, analyze and share information about emerging trends in the valuation governance process.
According to PWC:
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.
The survey may be valuable to fund directors, particularly those serving on their board's valuation committee, in identifying and understanding the most current valuation issues, as well as some insights on how firms are addressing difficult valuation challenges.
The full text of the PWC 2010 Asset Management Valuation Survey is available at: http://www.pwc.com/us/en/asset-management/investment-management/publications/assets/asset-management-valuation-survey.pdf