Which valuation method is NOT applicable to UITF?

The valuation method that is not applicable to Unit Investment Trust Funds (UITF) is the marked-to-market approach. UITFs, which are collective investment schemes, primarily use valuation methods that are aligned with the way they are structured and the nature of their investments.

Marked-to-market valuation involves adjusting the value of assets to reflect current market prices. This method is typically associated with actively managed portfolios and financial products that trade frequently, as it aims to provide the most accurate, real-time value of an investment based on current market conditions.

In the context of UITFs, the valuation is typically done using other methods, like the historical cost method or the net asset value calculation, which reflects the aggregate value of the underlying assets at a specific point in time rather than frequent market fluctuations. The amortized cost method may also be applicable, particularly for fixed-income UITFs, where investments are held until maturity and valued based on their original cost adjusted for any principal repayment.

By contrast, marked-to-market would not be suitable for UITFs because they are structured to be liquid in nature through regular pricing, rather than continuously adjusted to reflect market variances. This provides a stable assessment of the fund's worth, aligning better with the investment goals and regulatory requirements of UIT