Globally from 1st January, 2018 it has become mandatory for all entities to implement IFRS 9 for valuations of its assets and liabilities. This effectively means that all investments need to valued at fair value to reflect the true realisable value. Even for debt securities held to maturity which can be valued at cost (subject to SPPI test), the standard still calls for ECL ( extended credit loss) model of testing these debt securities for impairment to reflect the realisable value based on market developments.
Hence for a huge sovereign portfolio like the EPFO, it is imperative that the portfolio is valued at net asset value to reflect the true value of the portfolio. This would also benefit people who are withdrawing funds whereby they receive funds at market value and further equate the fresh contributions to equalise with current return of the portfolio.