Alert February 19, 2008

ICI Issues Model FAS 157 Note Disclosures for Investment Companies

The Investment Company Institute (the “ICI”) published sample note disclosures designed to help registered funds comply with the additional requirements imposed by Statement of Financial Accounting Standards No. 157, Fair Value Measurements, regarding the methodologies used to value fund holdings.  The sample note disclosures are accompanied by a matrix of types of securities and financial instruments intended to assist investment companies in determining where different types of pricing fall in FAS 157’s hierarchy of valuation inputs.  FAS 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007.  See the September 26, 2006 Alert for additional information on FAS 157.