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The Nine Principles set out by IOSCO in relation to the valuation of hedge fund portfolios:  

1. Comprehensive, documented policies and procedures should be established for the valuation of financial instruments held or employed by a hedge fund.  

2. The policies should identify the methodologies that will be used for valuing each type of financial instrument held or employed by the hedge fund.  

3. The financial instruments held or employed by hedge funds should be consistently valued according to the policies and procedures.  

4. The policies and procedures should be reviewed periodically to seek to ensure their continued appropriateness.  

5. The Governing Body should seek to ensure that an appropriately high level of independence is brought to bear in the application of the policies and procedures and whenever they are reviewed.  

6. The policies and procedures should seek to ensure that an appropriate level of independent review is undertaken of each individual valuation and in particular of any valuation that is influenced by the Manager.  

7. The policies and procedures should describe the process for handling and documenting price overrides, including the review of price overrides by an Independent Party.

8. The Governing Body should conduct initial and periodic due diligence on third parties that are appointed to perform valuation services.

9. The arrangements in place for the valuation of the hedge fund's investment portfolio should be transparent to investors.