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Professional Indemnity – Asset Management Company

MDD was hired to measure losses incurred by an asset management company due to its failure to book two forward currency contracts into one of its fund’s portfolios, which resulted in the overstatement of the published net asset value per unit of the Fund.

We measured losses to the asset management company, covering the actual cost to the Fund of unwinding part of the forward contracts less the cost to the Fund that would have accrued had the omitted forward contracts been partially unwound at the correct time.  We also reviewed the net over-payment to investors that redeemed their investments at an inflated price.

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