Screws Tighten on Super Funds Over Valuing Unlisted Assets

DLT and tokenization will transform the addressable market for alternatives. To live up to this opportunity in front of us we must deliver real time solutions to pain points in these markets. Both India and Australia have just put out new guidelines for better valuation of alternative assets in Alternative Investment Funds (India) and in unlisted assets in Superannuation funds (Australia) - this is an opportunity for DLT globally -

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‍https://bit.ly/3LjycmO - A sample of what is required in Australia:

1) “... there are robust processes in place to value unlisted assets.”

2) "...financial regulator will inevitably force trustees to seriously scrutinize the valuations..."

3) “APRA said it expects super funds to “consider the potential impacts on beneficiaries of selling assets at a stale price.”

4) "...evidence that internal and external audit teams were examining the assumptions used in valuing assets.”

5) "If you've got stale valuations, you're penalizing people."

6) "… the bigger the divergence between unlisted and listed asset valuations, the bigger the danger."

7) "… the huge issue is the transparency of valuations."

8) "… question whether the outperformance is being driven by valuations that are not always correct"

Inveniam's multi-party workflow engine allows trustees to implement and demonstrate robust valuation processes with complete transparency and using the blockchain, cryptographic proof of process . (Addressing statements #1 & #7)

I provides transparent data processing, with full traceability in data points back to the asset’s source information with a clickable data audit trail for internal and external audit teams to scrutinize valuations. (Addressing statements #2 and #4)

Inveniam's data operating system provides trusted data in real-time to professional valuation agents, facilitating transparency in the valuation process and reducing the risk of errors or mispricing. (Addressing statements #7 & #8)

Inveniam adds efficiency to facilitate real-time MTM of unlisted assets (no more stale valuations) while providing a trusted and federated method to manage data, eliminating the danger for beneficiaries of divergence between unlisted and listed valuations. (Addressing statements #3, #5 & #6)

Inveniam provides trustees the ability to allow APRA and other stakeholders permissioned access to ensure complete compliance and reliability. (Addressing statements #2 & #4)

SEBI Approves Five AIF Reforms https://bit.ly/3Lfizgd - Look at point number 5 in the SEBI reforms highlighting the data asymmetry and looking to ensure this is solved...This is the business case for DLT. Valuation is the killer app for Blockchain...‍

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