Best Practices: Market Timing and Fair Value Pricing
The Best Practices Review provides an overview of the major issues and legislative environment surrounding market timing and fair value pricing. It provides clear perspectives of industry practitioners through interviews with leading fund companies, the NSCC, pricing vendors, third party providers of transfer agency and fund accounting systems and services, and the legal community. Summarized findings provide a unique and practical perspective on the market timing issue.
Research Process: The research for this Review was conducted as follows:
- Barrington Partners reviewed the report outline with senior personnel in the industry to ensure all regulatory, operational and marketplace imperatives were included.
- Interviews were conducted with senior executives from the fund companies, regulators, law firms, third party service providers, and pricing vendors to discuss the solutions and best practices being utilized or considered.
- Barrington Partners reviewed the research results and developed conclusions. By addressing our findings with selected industry professionals, we are able to provide strategic insights into the issues.
Interviews: The mutual fund companies that participated requested that we not attribute interviews to specific companies so that market timers would have no insight into practices employed to thwart their activities. Consequently, there is no correlation between the ordering of the Review’s contents and the ordering of the names of the interviewed firms.
Participating firms included:
- Armada Funds
- Drinker, Biddle & Reath
- Goodwin Proctor & Hoar
- Grantham Mayo Van Otterloo
- Hancock Funds
- Heritage Funds (owned by Raymond James Financial)
- ICON Funds
- Jefferson Pilot Financial
- JPMorgan Chase
- Legg Mason Funds
- Northern Funds
- Ultimus Fund Solutions
- State Street
The information collected by Barrington Partners is sensitive in nature. Client firms must agree to keep the documents confidential and not share information outside their immediate firm.