Treasury Regulation § 20.2031-2 (b) 1 addresses inversely weighted means. Means are inversely weighted with respect to the number of trading days between the valuation date and pricing dates. Because neither Saturday nor Sunday are trading days, the mean for a weekend Date-of-Death is the straight average between Friday and Monday.
Methodology
If a weekend evaluation date gives the average of Monday and Friday, why do Mutual Funds only show Friday’s price?
Treasury Regulation § 20.2031-8 (b) 1 addresses the valuation of mutual funds. It states “If there is no public redemption price quoted by the company for the applicable valuation date (e.g., the valuation date is a Saturday, Sunday, or holiday), the fair market value of the mutual fund share is the last public redemption price […]
How does EVP Systems calculate mean prices?
For calculating inversely weighted mean prices, Treasury Regulation § 20.2031-2 (b) 1 states, “The average is to be weighted inversely by the respective numbers of trading days between the selling dates and the valuation.” The data to be collected and calculation are straightforward but very prone to error. To obtain the weighted mean price of […]
Why are EVP Systems prices sometimes different from what I see on-line?
EVP Systems, by default for evaluations on or after April 30, 2017, uses “primary exchange” prices where available, meaning quotes from the exchange were a security is primarily traded. Most data available for free on-line comes from “composite” prices, meaning the average of all the exchanges were a security is traded. We favor the primary […]