Mutual funds' sticky valuations lead to untimely and opportunistic reporting.
Fair value accounting in the mutual fund industry shows that valuations of non-traded financial assets are often not updated frequently. Funds tend to stick to previous valuations, only adjusting when necessary or when significant gains are expected. Revaluations are more likely to occur around major events and when they can benefit the fund's performance. This suggests that fair value reporting can lead to delayed and opportunistic valuations in the industry.