Calculating Inflationary Losses for Comparison to Loss Thresholds

FRT Admin
Site administrator
October 30, 2019

Understanding Your Losses: Market Loss, Recognized Loss, and Inflationary Loss

 

More institutional investors are implementing investment recovery board policies that contain loss thresholds.  When losses exceed pre-set amounts the fund considers material, they trigger consideration of direct action in the US or abroad.
As a result, more institutions are now asking how their losses should best be calculated for comparison purposes. The answer is estimated Inflationary Losses. Understanding why requires an appreciation of the differences between Market Loss, Recognized Loss, and Inflationary Loss.

What you will learn:

  • Best practices to calculate your losses for comparison purposes
  • Three types of losses: Market Loss, Recognized Loss, and Inflationary Loss
  • Estimating Inflationary Loss

 

 

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Founded in 2008, Financial Recovery Technologies (FRT) is a leading technology-based services firm that helps the investment community identify eligibility, file claims and collect funds made available in securities and other class action settlements. Offering the most comprehensive range of claim filing and monitoring services available, we provide best-in-class eligibility analysis, disbursement auditing and client reporting, and deliver the highest level of accuracy, accountability and transparency available. For more information, go to www.frtservices.com.

 

This communication and the content found by following any link herein are being provided to you by Financial Recovery Technologies (FRT) for informational purposes only and does not constitute advice. All material presented herein is believed to be reliable but FRT makes no representation or warranty with respect to this communication or such content and expressly disclaims any implied warranty under law. Opinions expressed in this communication may change without prior notice. Firms should always seek legal and financial advice specific to their unique situation and objectives.