External Valuation

Independent valuation of the assets in the portfolio is part of the AIFMD Directive (article 19.4 ). RiskConcile will provide an independent valuation of both the price and the pricing model that is used. Acting as an external valuer we provide the required input to the administrator for the valuation process.

Model Validation

Very often, AIF’s use complex models, dedicated algorithms which are not always waterproof. Having those models tested to the extremes, provides a level comfort required by the portfolio manager. Riskconcile has the dedicated resources with first class mathematical & IT skills to provide such comfort.

Independent Valuation

Riskconcile, through its market practitioners’ and academic background is well placed to provide fund managers, plan sponsors, endowments, investors, board members, administrators and other stakeholders with INDEPENDENT VALUATION of complex or illiquid products. Portfolio valuations are delivered monthly, weekly or daily as required by the client. Riskconcile thereby offers full transparency into both the pricing models and inputs used for the computation:

  • Independent fair value computation of custom-built OTC derivatives, complex loan products, hard to value assets.
  • Valuations for illiquid, less frequently traded securities
  • Challenging “sell-side counterparty” valuations, often the sole pricing source for fully customised products
  • Valuations for illiquid, less frequently traded securities
  • Avoiding conflicts of interest, valuation subjectivity
  • Cloud based access through personal log-in

“The main tension in the valuation of complex assets which hedge funds sometimes trade is that between independence and competence. It is clearly preferable that the responsibility for the valuation of the portfolio, position by position, is taken by a Valuation provider who is not only independent of the Investment Manager but also has no other interests that materially conflict with its duties to the fund”

AIMA’s guide to sound practices for hedge fund valuation

Our expertise is based on our practical experience of structuring, pricing and risk-managing complex financial derivatives at blue-chip investment banks. Our different publications in this domain are a testimony of this:
 

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