If your client is 3/31 year end but books investments at NAV using the 12/31 market value adjusting for cash flows, what’s the best way to approach this? They don’t book 3/31 because they don’t get the numbers in time. Curious what other people do

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Pretty standard to book results on a quarter lag with Alternative investment results due to the lack of readily available Financial Statements. As long as there is no blatant event impacting the fund that would cause a material impact to the actual 3/31 valuation the 12/31 detail + known cash flows is a useable practical expedient.

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In terms of material impact, how would COVID impact this assessment

Sensitivity analysis. See what amounts are vs the actual 3/31 numbers. Have paje, move on with life

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Agree with this. Get the 3/31 numbers and do a drift. Also since they aren’t booking to audited numbers I’d expect you need to do a bit more on the valuation from a documentation standpoint

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They need to reflect the value of investments at 3/31. With the situation brought by Covid19, there could be a significant difference in the investment at NAV at 12.31 and at 3.31.

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Bot an expert here at all but wouldnt COVID and related decrease in the interest rates and general market crash prior to 3/31 have impact? Isnt that something they should consider beyond 12/31 adjusted for cash flow?

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At a minimum should be trying up to 3/31 capital statement if material

There's not even time to get a capital statement? How does PY look when you do a look back analysis?

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