MARKET VALUATION AGING MATRIX BY IIAC ASSET CLASS SCHEMA Security Type Subtype (Note: Per IIAC Industry Asset Classification Schema) Primary Pricing Source Secondary Pricing Source Pricing Method Pricing Frequency Max. days price used Action if price stale After 365 days stale Cash and Equivalents Cash (any currency) Face value Cashable (liquid) GICs Face value High-interest savings accounts (HISAs) (fully or partially liquid) Service provider/data vendor Manual/ traders (Note: ABS problematic as systems do not give pool factors) IIROC Rule subpara. 200.1(c)(i) (A) or (B) Daily/ monthly 35 Price goes to ND Price goes to $0 Money market funds Short-term notes (includes ABCP, BAs, CDs, CP, T-bills, savings bonds) Other cash and cash-equivalent products (temporary for new products) Balanced mandates Balanced funds Service provider/data vendor Morningstar, Fundex, FundSERV, asset manager (for below) IIROC Rule 200.1(B) Daily or periodic; (Note 1) 35 (daily/ monthly; 95 if quarterly) Price goes to ND Price goes to $0 Fixed Income Corporate bonds Service provider/data vendor Manual/ traders Subpara. 200.1(c)(i) (A), (C), (E), (F), (G) or (ii) or (iii) (see Note 2) Daily 35 (daily/ monthly; 95 if quarterly; note different approach for illiquid GICs and some other products – duration to maturity) Price goes to ND Price goes to $0 Government (all) bonds with term to maturity from issue date > 1 year Convertible (until exercised) Fixed-income-focused investment funds (e.g., mutual funds, ETFs, closed-end funds (CEFs), pooled/common trust funds, vehicles (IRVs)) Asset-backed securities (MBSs and other products that with a pool factor from iterative/ ongoing return of principal) Non-cashable (illiquid) GICs Strips, coupons, residuals Other fixed-income products (temporary ) Preferred Shares Preferred shares Service provider/data vendor Manual/traders/ market research Subpara. 200.1(c)(i) (A) (Note 2) Daily 35 Price goes to ND Price goes to $0 Convertible pref. shares (until exercise)
Listed Equities Service provider/data vendor Manual/ traders IIROC Rule subpara. 200.1(c)(i) (A) (see Note 2) Daily 35 Price goes to ND Price goes to $0 Other Equities (i.e., not traded on exchange, but has Global identifier, e.g., CUSIP, ISIN, SEDOL) Common shares Service provider/data vendor Manual/ traders/term sheet/price prospectus/ offering memorandum/ duration for rights IIROC Rule subpara. 200.1(c)(i) (C) (see Note 2) Daily 365 goes to ND Price goes to $0 Equity (includes equity mutual funds, ETFs, CEFs, IRVs) Rights Warrants Units (bundled stock and warrants, etc.) Trust units (includes units structured under trust deed but excludes REITs) Limited partnership units (LPUs) Installment receipt Subscription receipt Real estate investment (REIT) Flow-through shares Other equities (temp. for new products) Private securities (i.e., no Global identifier) Private non-publicly traded shares; may not have secondary market; private placements, private equity funds, CCPCs/qualified small business corps.) Service provider/data vendor Manual (also see above) IIROC Rule subpara 200.1(c)(ii) or (iii) (see Note 2) Daily 365 goes to ND Price goes to $0 Alternative investments Physical commodities Service provider/data vendor Manual (also see above); structured products remain a problem as none of the traders apply a premium to the price IIROC Rule subpara. 200.1(c)(i) (A), (B), (C), (D) (see Note 2); 200.1(c)(ii) or 200.1(c)(iii) Daily 35 Price goes to ND Price goes to $0 Segregated funds Leveraged investments (split capital shares, leveraged ETFs and Inverse ETFs) Derivatives (forwards, futures, options, Hedge funds Structured products (includes ETNs, principal-at-risk notes (PRNs), PPNs) Other alternative investments (temporary) new products)
Other Insert others appropriate to firm, e.g.: Restricted securities (linked to freely tradable; not linked to freely tradable) Freely tradable with sweeteners (e.g., stapled) Securities with class restrictions Service provider/data vendor; if linked to freely tradable, then link to it Issue price, third party evaluation, etc. Varies Monthly/ Quarterly (See Note 2) 120 days for restricted linked to freely tradable/ otherwise 365 Price goes to $0 Price goes to $0