Changes to the way calculations of net asset values are performed by the Association of Investment Trust Companies (AITC) are expected to reduced share price to net asset value discounts by an average of 1%, the Association says.
The changes mean the AITC will incorporate into its calculations “fair value”, or current market price of debt, rather than the final repayment value, or “redemption” value. Along with the technical changes, the Association is encouraging members and non-members alike to adopt the standards in order to “ensure consistency and comparability in regularly published data”. With professional advisers and institutions already allowing for fair value calculations, it makes sense to extend the practice to enable private investors to take a similar view with regard to debt. Fair value is al...
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