Final answer:
A member providing a six-month portfolio valuation must include the market or fair value of each investment, total fees and charges, and the beginning and ending cash balances. This ensures transparency in the portfolio's performance and costs.
Step-by-step explanation:
In a six-month portfolio valuation, a member is required to provide specific information to ensure transparency and allow for informed decision-making by the investor. This would typically include:
- The market value of each designated investment, or its fair value if the market value is unavailable, to understand how the individual investments have performed over the period.
- Total fees and charges paid within the reporting period, which impacts the net return on the investments.
- The cash balance at the beginning and end of the reporting period, to track liquidity and cash flow changes within the portfolio.
A portfolio manager or investment advisor must ensure that all relevant data is comprehensively disclosed to the client in a portfolio valuation report.
This practice aligns with financial regulations that aim to provide investors with full disclosure of their investment positions and the costs associated with their portfolios.