These days, regulators and investors are under more scrutiny than ever in regards to how they asses funds, investments, and portfolios. The valuation process grows increasingly more difficult and complex, not only because of the current market instability but also because multi-asset funds involve data that is difficult to attain and properly evaluate.
Hedge fund administration includes tasks related to the operations of the fund, such as regulatory and compliance, fund accounting, audit monitoring, investor reporting, and tax needs. The determination of the company’s Net Asset Value, or NAV, is one of the most crucial tasks performed by fund administrators. Determining the NAV includes figuring out the accrued income and expenses of the fund, as well as pricing the securities at current market value. Since the NAV is the price at which investors purchase and sell shares of the fund, its importance and accuracy is vital.
However, even though it’s crucial, the vast majority of fund administrators are still managing this process by manually using spreadsheets to manage asset prices, approvals, and to-do lists to determine the NAV calculation. Fund administrators often feel overwhelmed, especially when they must gather information from a variety of co-workers within their organization for each reporting period.
There are many potential pitfalls to manually calculating the NAV. Trade capture, security valuation, reconciliation, and expenditure calculation are all part of the calculation. The addition of risky investments (investments that are not liquid) to the portfolio through the development of side-pockets has also increased the number of complex variables that go into determining NAV. The manual processes and the tedious, error-prone data collections that have historically accompanied this crucial task have made it even more difficult and time-consuming.
Companies are under pressure to provide evidence-backed management over outsourced fund operations as a result of regulations and industry authorities’ growing attention on operational resiliency and monitoring.
In order to show NAV supervision and resiliency, IVP’s NAV Solutions offers real-time NAV finalization for multiple funds with complete traceability for specific NAV components. It centralizes NAV review in one intuitive experience with automated exception identification and trend analysis, so asset managers can quickly and easily remediate NAV anomalies at the key component, share class, and security level. It also brings the power of automation to daily and monthly NAV reviews, saving time, effort, and cost while improving the accuracy and accessibility of critical data. It replaces inefficient and semi-automated NAV oversight with robust, independent, and intuitive systems with standardized controls and intelligent analytics.
Key Features of the NAV Solution –
- Automated Data Management Solution
- Oversight & Validation
- Efficient Process Automation
- Data Governance
- Configurable Setup
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Remediate anomalies and bring efficiency to the shadow NAV process by automating key controls with full traceability to specific NAV components. Our NAV solution automates exception identification and trend analysis, enabling asset managers to swiftly identify and rectify NAV anomalies at various levels, including key components, share classes, and securities.
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