Valuation (NAV)

The Administrator calculates the net asset value (NAV) on each valuation date. Net profits and losses are determined on the accrual basis.

In accordance with FASB ASC Topic 820, the fair value of assets are measured through the use of a hierarchy that prioritizes the inputs to valuation techniques. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The three levels of the fair value hierarchy are described below:

Level 1 - Financial assets and liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market.

Level 2 - Financial assets and liabilities whose values are based on the following:

a) Quoted prices for similar assets or liabilities in active markets

b) Quoted prices for identical or similar assets or liabilities in nonactive markets

c) Pricing models whose inputs are observable for substantially the full term of the asset or liability

d) Pricing models whose inputs are derived principally from or corroborated by observable market data through correlation or other means for substantially the full term of the asset or liability

Level 3 - Financial assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement.