AdvisorShares Restates NAV for MSOX ETF After Correcting Income Accrual for Total Return Swaps
AdvisorShares restates NAV for MSOX ETF after correcting income accrual accounting for total return swaps, enhancing transparency and investor confidence.
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AdvisorShares recently announced a NAV restatement for the AdvisorShares MSOS Daily Leveraged ETF (MSOX) after identifying and correcting an income accrual accounting error related to total return swaps. The restatement underscores the fund manager’s commitment to accurate net asset value reporting, regulatory compliance, and investor transparency.
The issue involved how income from total return swaps was accrued in the fund’s accounting records. Total return swaps are derivative instruments commonly used by leveraged ETFs to gain exposure to underlying assets without direct ownership. When income from these swaps was improperly accrued, NAV calculations for affected periods did not reflect the correct amounts. AdvisorShares conducted a review, corrected the accruals, and issued a formal restatement to adjust historical NAV figures.
For ETF investors, accurate NAVs are essential. NAV restatements can affect performance reporting, tax reporting, and investor records. AdvisorShares has explained the scope and time frame of the correction, and has provided revised NAV data to custodians, recordkeepers, and regulatory bodies where required. The fund manager’s proactive disclosure helps minimize investor confusion and allows market participants to reconcile their positions and performance metrics.
This restatement also highlights best practices in fund accounting and risk management. Managers of ETFs that use derivatives, including total return swaps, must maintain robust accounting controls and timely accrual processes. Regular reconciliation, independent audits, and clear communication channels are critical to prevent similar errors and to preserve investor confidence in leveraged products like MSOX.
AdvisorShares emphasized that corrective action was taken promptly after the discrepancy was discovered. The firm will continue to monitor accounting processes and work with auditors to ensure future NAV calculations remain accurate. Investors with specific questions about how the restatement affects their accounts should contact their broker, financial advisor, or the fund’s shareholder services team for detailed guidance.
In summary, the NAV restatement for the AdvisorShares MSOS Daily Leveraged ETF reflects a corrective adjustment to income accrual accounting for total return swaps. While restatements can be concerning, transparent disclosure and rapid remediation reinforce a fund’s dedication to accurate reporting and investor protection.
Published on: March 7, 2026, 7:07 am
