"Fair Value pricing is an important tool for institutions such as mutual funds because it enables them to determine the value of the securities in their portfolios if a significant event occurs after the close of the markets that trade those securities,"
The automated system gathers data from multiple vendors as well as a factoring agency. The factor determines a daily multiplier that is used to alter the closing prices of these securities in their native markets. Using the multiplier brings the prices of the securities to a fair value that reflects events that impact stock prices between the closing of the native markets and the closing of the New York Stock Exchange. Clients have the option of determining the fair value of their securities through either the data vendors or the factor.
"We believe our process is the first in the industry to be automated from start to finish, including the generation of reports that institutional investors can use for control and audit purposes both for determination of fair value use and next-day regression testing against market open prices," said Oris. "These reports enable investors to see how a fair value update changes the values of the securities they hold."
Sauer Capital (http://www.sauercapitalsa.com) Asset Servicing offers clients worldwide a broad spectrum of specialized asset servicing capabilities, including custody and fund services, securities lending, performance and analytics, and execution services.
Sauer Capital S.A. is a financial services advisory company focused on helping clients manage and service their financial assets, servicing a worldwide client base and serving more than 100 markets. Sauer Capital S.A. is a leading provider of financial services for institutions, corporations and private individuals, offering superior investment management and investment services through a worldwide client-focused team. It offers fast execution through various types of accounts which are tailored to an individuals needs, both on an advisory or fully managed basis.