About a-team Marketing Services
The leading knowledge platform for the financial technology industry
The leading knowledge platform for the financial technology industry

A-Team Insight Blogs

Northern Trust Supports Fair Value NAV Pricing for EMEA Clients

Subscribe to our newsletter

Northern Trust has implemented a daily Fair Value NAV Pricing tool for its fund management and institutional clients in Europe, Middle East and Africa (EMEA). Through an automated system, Northern Trust can fair value securities on a daily basis to deliver NAV (net asset value) unit prices significantly reducing opportunities for market timing in different time zones and after markets close.

“Fair Value NAV Pricing enables investors to gain a much clearer picture of the estimated value of the securities in their portfolio by taking into account the time between the investment market being closed and the NAV valuation point,” said Mark Schoen head of global product and strategy for EMEA at Northern Trust.

“This is an important tool, particularly where securities are traded in multiple markets, as it applies a standard adjustment to the closing price which is more accurate than other pricing methods,” he added.

Factors are applied to the closing prices to create a new fair value price, which is used to calculate the fund’s NAV. Clients can also receive reports that enable them to analyze the effect of Fair Value NAV Pricing on their funds and underlying securities.

“We are seeing an increasing demand from clients in Europe, particularly fund managers, for Fair Value NAV Pricing,” said Peter Cherecwich global chief operating officer for Northern Trust’s asset servicing business. “Around 90 percent of US mutual funds investing internationally are fair valued on a daily basis and this trend is spreading to EMEA, particularly as a result of market volatility.”

Northern Trust’s Fair Value NAV Product suite also caters for the fair valuing of annual financial statements around IFRS 7 and FAS 157.

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: How to optimise the business value of your data using agile data governance

Data governance is transforming from a risk management and compliance tool with limited and prescriptive controls, to a solution that can help you optimise the business value of your data. In this role, data governance must scale to manage rising volumes of data, more and different data types, and changing user requirements, while continuing to...

BLOG

SIX Financial Information Sets Out Expansion Plans

SIX Financial Information will focus on expanding its sanctions, regulatory compliance, Environment, Social and Governance (ESG), exchange traded funds (ETFs), and digital assets capabilities over the coming year, the whole based on the company’s foundation of reference, pricing, corporate actions and index data. To find out more about the company’s plans, Data Management Insight caught...

EVENT

Data Management Summit New York

Now in its 12th year, the Data Management Summit (DMS) in New York brings together the North American, capital markets enterprise data management community, to explore the evolution of data strategy and how to leverage data to drive compliance and business insight.

GUIDE

The Data Management Implications of Solvency II

This special report accompanies a webinar we held on the popular topic of The Data Management Implications of Solvency II, discussing the data implications for asset managers and their custodians and asset servicers. You can register here to get immediate access to the Special Report.