This product is just what the market has been asking for – alternative investment transparency at a reasonable cost.
Tampa, FL (PRWEB) July 12, 2011
Axiom Valuation exhibited AIRAS, its new solution for the “Alternative Investment Fair Value Roll Forward” problem facing many university endowments, at the National Association of College and University Business Officers’ 2011 Annual Meeting in Tampa from July 10 to July 12, 2011. Endowments are among the most heavily invested in hedge funds and private equity funds among institutional investor groups. These alternative investments funds generally have a calendar year end, when they provide their investors with their audited values and returns. Most endowments have a different fiscal year end than the calendar year end, and thus have to report their fiscal year end fair values of their alternative investments based on non-audited interim estimates from their fund managers. Endowment officers and their auditors have become increasingly concerned about this “Roll Forward” problem, but up till now, there has been no reasonable solution to this problem.
The company has been conducting hedge fund and private equity fund return authentication consulting projects at the request of endowment investment committees and auditors of endowments for the last few years. These clients were concerned both about the validity of the self-reported returns by hedge funds and private equity funds and about the “Roll Forward” problem of using fair values from several months prior to close their books at June 30. In response to this growing demand, Axiom Valuation developed AIRAS, the Alternative Investment Return Authentication Service, to provide a fund-specific, independent validation report of an alternative investment fund’s reported interim returns and a fair value result as of the end of the endowment fiscal year. AIRAS enables endowments and endowment auditors to meet their obligations under the FAS 157/ASC 820 fair value standards. According to Dr. Stanley Jay Feldman, Chairman of Axiom Valuation, “This product is just what the market has been asking for – alternative investment transparency at a reasonable cost.”
The AIRAS analysis is based on established financial research on portfolio replication and uses a sophisticated mathematical optimization procedure. An AIRAS report for a hedge fund documents whether the return and NAVs reported by the manager are reported properly based on a manager’s reported investment allocations (by industry, by country, and by asset type) as of the fiscal year end and for the last several quarters. An AIRAS report for a private equity fund documents whether the return and NAVs reported by the manager are reported properly based on a manager’s reported valuation methods, generally based on public company comparables. AIRAS provides investors with an independent authentication of what their AI managers are reporting – hence our slogan of “Trust But Verify”.
AIRAS reports are very cost-effective, as the report cost is spread over the potential client base for each AI fund. For more information, please contact: Dr. Stanley Feldman or John Roberts at 781 486-0100 or visit http://www.avairas.com.
About Axiom Valuation
Axiom Valuation is a financial security and business valuation firm. Founded in 1999, the company is based in Wakefield, Massachusetts, USA. The company is a global leader in the development of analytical tools based on empirically-driven financial models for determining fair value.