CrossBorder Capital, a London-based independent investment advisory firm, has implemented SunGard’s FastVal, an independent valuation service for vanilla and complex over-the-counter (OTC) derivatives. CrossBorder Capital expanded into alternative investments in 1999 and the FastVal solution, a cost-effective service provided on an ASP basis, is helping the firm comply with UCITS directives covering the independent valuation of complex derivatives.
UCITS Chapter VII Section V sets out that UCITS funds may invest in OTC derivatives provided that the OTC derivatives are subject to reliable and verifiable valuation on a daily basis. SunGard’s FastVal solution processes daily valuations for all derivatives in CrossBorder Capital’s portfolio, helping it take advantage of opportunities in the derivatives market while staying compliant with these regulatory requirements. FastVal is used by CrossBorder Capital’s London-based staff and by the fund’s Dublin-based fund administrators. Since going live with FastVal, CrossBorder Capital has launched a UCITS III version of its offshore Pulsar Alpha Fund, the New Vision Strategies Pulsar Global Alpha (UCITS) Fund.
Pablo Carbajal, head of quantitative research at CrossBorder Capital, commented: “We needed a fast, reliable and cost-effective system for the independent valuation of the complex derivatives in our UCITS fund. Having identified SunGard’s FastVal as a premier independent derivatives valuation solution in the market, we were able to start using it within days of selection. Our primary aim was to find a system suitable for the imminent launch of our UCITS fund that could be easily integrated for both us and our fund administrator. With Fastval we now have a system that has the scope and scale to be the same long-term solution for all of our future UCITS funds.”
Gavin Lee, chief operating officer of SunGard’s FastVal business unit, said, “With UCITS funds continuing to attract significant interest from investors, FastVal provides an easy and efficient independent valuation solution that helps fund managers spend more time focusing on generating returns. While helping with UCITS compliance, FastVal also offers the advantages of transparency and a standard application programming interface (API) for seamless integration into downstream processes.”
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