About a-team Marketing Services
The knowledge platform for the financial technology industry
The 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: Streamlining trading and investment processes with data standards and identifiers

Financial institutions are integrating not only greater volumes of data for use across their organisation but also more varieties of data. As well, that data is being applied to more use cases than ever before, especially regulatory compliance and ESG integration. Due to this increased complexity of institutions’ data needs, however, information often arrives into...

BLOG

Experts Probe Data Management Best Practices for Regulatory Reporting: Webinar Preview

Compliance with regulators is getting harder for data professionals as economic volatility and geopolitical strains look set to reshape how global financial markets are overseen. As data professionals brace to take the brunt of the work needed to comply with these rapid and unpredictable changes, A-Team Group will host a webinar that will probe the...

EVENT

Data Licensing Forum 2025

The Data Licensing Forum will explore industry trends, themes and specific developments relating to licensing of financial market data from Exchanges and Data Vendors.

GUIDE

AI in Capital Markets: Practical Insight for a Transforming Industry – Free Handbook

AI is no longer on the horizon – it’s embedded in the infrastructure of modern capital markets. But separating real impact from inflated promises requires a grounded, practical understanding. The AI in Capital Markets Handbook 2025 provides exactly that. Designed for data-driven professionals across the trade life-cycle, compliance, infrastructure, and strategy, this handbook goes beyond...