D&P examines impact of coronavirus on asset values

BVWireIssue #209-2
February 12, 2020

valuation method
fund valuations, risk analysis, investment, private equity, investment value, coronavirus, COVID-19

Duff & Phelps is monitoring the financial impact of the coronavirus on businesses and asset values across the investment funds sector globally, according to a client alert. There are direct impacts of investments with exposure to sectors the outbreak directly affects, such as travel and leisure in China. There are indirect impacts of investments with exposure to sectors where the full effect of the epidemic won’t be known for some time, such as manufacturing and industrial businesses with supply chain links to China. The net asset value (NAV) statement is the “primary measure in which investors will monitor performance,” D&P says. “Thus, establishing credible and independent valuation communication is essential to maintaining the trust of your investors.”
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