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SEC’s unwavering focus on disclosure of valuation methods and calculation of IRRs by fund sponsors

Michael P. Earley (Chicago, IL USA office of Jones Day)
Jessica Panza (Chicago, IL USA office of Jones Day)
Katherine Thrapp (Chicago, IL USA office of Jones Day)

Journal of Investment Compliance

ISSN: 1528-5812

Article publication date: 6 November 2017

44

Abstract

Purpose

To explain the SEC’s historical focus on the calculation of investment performance and to highlight important issues for fund sponsors in the future.

Design/methodology/approach

This article discusses the SEC’s recent subpoena of at least one fund sponsor for information related to the firm’s practices in calculating internal rates of return and then explains the history of SEC enforcement in this area.

Findings

The SEC continues to be focused on how fund sponsors calculate investment performance metrics, such as IRRs, and the related disclosure.

Originality/value

This article contains valuable information for fund sponsors, such as best practices for valuation methods and related investment performance disclosures, including the calculation of IRRs from experienced investment fund lawyers.

Keywords

Acknowledgements

Editor’s Note: The views and opinions set forth herein are the personal views or opinions of the authors; they do not necessarily reflect the views or opinions of Jones Day.

Citation

Earley, M.P., Panza, J. and Thrapp, K. (2017), "SEC’s unwavering focus on disclosure of valuation methods and calculation of IRRs by fund sponsors", Journal of Investment Compliance, Vol. 18 No. 4, pp. 29-30. https://doi.org/10.1108/JOIC-08-2017-0060

Publisher

:

Emerald Publishing Limited

Copyright © 2017 Michael P. Earley, Jessica Panza and Katherine Thrapp. All rights reserved

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