Per 12 CFR 9.18, how frequently must collective investment funds be valued?

The requirement outlined in 12 CFR 9.18 specifies that collective investment funds must be valued monthly, particularly in relation to the timing of contributions and withdrawals by investors. Monthly valuations allow for accurate tracking of the fund's performance and ensure that all participants receive fair treatment based on the most current value of their investment. This requirement also helps in maintaining transparency within the fund, as valuations directly impact investors’ accounts during the contribution or withdrawal process.

The reference to monthly valuations reflects a crucial aspect of maintaining equitable treatment of all investors, ensuring that changing market conditions are adequately reflected in the fund's reported value. This practice allows for adjustments based on the latest financial information, which is especially important in the context of fluctuating markets.

Understanding the regulatory framework around investment funds, such as the stipulations in 12 CFR 9.18, is vital for professionals when managing or advising on collective investment funds since adhering to valuation requirements is essential for investor confidence and compliance with federal regulations.