Valuation, sometimes called appraisal, is the professional estimate of the value of an asset that has no live market price, such as a building.
How it is done
An independent valuer reviews the asset's condition, location and rental income and compares it with similar transactions. The work is repeated at intervals set in the fund's rules, and the result feeds the fund's net asset value.
Why it matters
A valuation is a judgement at a point in time. It can lag the market, and a real sale may achieve a higher or lower price. A reported unit value that moves little may simply reflect infrequent or cautious valuation. When reviewing a fund, check who the valuer is, how independent they are and how often they revalue.
General information. Not investment advice or a suitability assessment.
