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

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.

Related content

WEBINAR

Recorded Webinar: Managing the transaction reporting landscape post Brexit: MiFID II, SFTR, EMIR

The transaction reporting landscape has, for many financial institutions, expanded considerably in size since the end of the UK’s Brexit transition period on 31 December 2020 and the resulting need for double reporting of some transactions to both EU and UK authorities. It has also changed dramatically following the UK government’s failure to reach equivalence...

BLOG

Opensee Platform Provides Self-Service Big Data Analytics for Business Users

Paris-based ICA, a provider of big data analytics, has rebranded as Opensee, marking its evolution from an innovative capital markets data analytics platform to a market challenger. The company’s offer is to make hundreds of terabytes of structured data accessible to business users easily and quickly through self-service data analytics tools. The company was initially...

EVENT

Data Management Summit Virtual

The Data Management Summit Virtual brings together the global data management community to share lessons learned, best practice guidance and latest innovations to emerge from the recent crisis. Hear from leading data practitioners and innovators from the UK, US and Europe who will share insights into how they are pushing the boundaries with data to deliver value with flexible but resilient data driven strategies.

GUIDE

Evaluated Pricing

Valuations and pricing teams are facing a much higher degree of scrutiny from both the regulatory community and the investor community in the glare of the post-crisis data transparency spotlight. Fair value price transparency requirements and the gradual move towards a more harmonised accounting standards environment is set within the context of the whole debate...