What does the marked-to-market valuation methodology reflect?

The marked-to-market valuation methodology reflects current market values. This approach involves measuring the value of an asset based on its current market price, rather than historical costs or other estimations. The concept is important in financial reporting, especially for investment vehicles like Unit Investment Trust Funds (UITFs), where the net asset value needs to be updated regularly to provide an accurate representation of what investors could expect to receive if they were to sell their investments at the prevailing market conditions. By using current market values, this methodology ensures that the valuation reflects the most up-to-date financial information available, providing a more accurate and relevant assessment of an investment's worth at a given time.