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Implement accurate and timely net asset
value calculations and unit price validations
SS&C HiPortfolio Unit Pricing
NAV calculations – timely, accurate and fast
Producing Net Asset Values (NAVs) and unit prices is a time-critical daily process, which
requires a high degree of accuracy within a strict delivery timescale. To achieve this level of
performance it requires a efficient end-to-end process that has a high speed of output and
provides for the validation of high volumes of funds with minimum risk.
The demand to meet tighter Service Level Agreements (SLAs) for ever increasing volumes
and more complex pricing methodologies puts great pressure on production teams and
increases the risk of pricing errors. Rapidly changing requirements, in terms of pricing
methodologies, new tax calculations, performance fees and additional share classes, mean
that a flexible method of unit price production is essential.
Reducing risk, while consistently meeting delivery deadlines, requires a high degree of
automation with tight controls to provide the essential price movement validation and
exception checking.
The SS&C HiPortfolio® Unit Pricing Solution
SS&C HiPortfolio’s Unit Pricing capability combines key information from investment
systems, fund valuations and general ledger balances to allow the calculation of NAVs
and unit prices for all types of unitised funds. The NAVs and prices are calculated using
flexible rules-based definitions that can be configured in the unit cost sheets. Whether an
independent unit pricing operation or performing calculations for multiple investors as a
third party administrator, SS&C HiPortfolio Unit Pricing capabilities allows for pricing of high
volumes of funds on an intraday and end-of-day basis.
The SS&C HiPortfolio Unit Pricing module provides a centralised facility for managing
the pricing process and when combined with the Unit Pricing Workbench it provides a
comprehensive control environment for unit pricing operations. SS&C HiPortfolio’s unit
pricing capabilities include a powerful calculation engine and a highly configurable
reporting tool that enables exception-based reporting and drill-down into the detailed
validation of price movements.
Designed to deliver efficient, flexible and accurate operational support
Increased Efficiency: Unit Pricing in SS&C HiPortfolio uses a number of specialised
functions in addition to the core valuation and accounting functions of the investment
system and general ledger to optimise data retrieval and process efficiency. For information
that is not stored within SS&C HiPortfolio there are import capabilities to help streamline the
process for creation and liquidation updates and other user-defined values. Automation of
fund of fund hierarchies is also supported to prevent latency in the process.
These processes are optimised and automated so that maximum time is available for
operations teams to conduct all important compliance checks and investigations for
exceptions.
Designed to help you:
• Increase efficiency through
implementing a highly automated
end-to-end unit pricing process
• Improve ability to consistently meet
internal and external Service Level
Agreements
• Provide flexibility in handling
changes to unit pricing calculation
methodologies
• Improve quality of unit pricing data
using focused price attribution
reporting to validate
• Reduce risk exposures caused by
pricing errors
Implement accurate and timely net asset value calculations
and unit price validations
More Flexibility: SS&C HiPortfolio’s unit
pricing processes are being used by a wide
variety of asset servicers and administrators
globally to price many types of funds
including unit trusts, OEICs, SICAVs and unit
linked life and pension funds. The flexibility
and scalability of these capabilities have
been proven time and again over many
years.
The unit pricing rules are defined in unit
cost sheets which load all the inputs into
a work area similar to a spreadsheet where
the calculation rules are applied. Some
current examples include:
• Tax computations
• Fee calculation, fund or share class level, to
income or capital
• Performance fee calculation e.g. against
benchmark
Unit pricing life cycle management
control within SS&C HiPortfolio
Improved Accuracy: The unit pricing
process relies on referential integrity of
the data to maintain pricing accuracy and
prevent the reworking of prices. Having the
unit pricing process tightly integrated to
the investment system and general ledger
allows coordination of the essential inputs
to unit pricing. This allows the retrieval
of the data needed for the relevant price
point.
Additional Control: Due to demand for
greater automation and control of the
process, the SS&C HiPortfolio Unit Pricing
Workbench module has been developed to
complement core unit pricing capabilities
and provide additional control across the
entire unit pricing process.
• Distribution figures
The Unit Pricing Workbench provides
a centralised facility for managing
the pricing operation for use in
controlling the initiation of pricing
runs, monitoring progress and
investigating exceptions. The Unit
Pricing Workbench has the following
key features:
• Customised displays to highlight
variances against tolerance
thresholds
• Highly configurable pricing
attribution reporting to compare to
expected movements
• Detailed comparisons to single or
composite benchmarks
• Formal price authorisation
• Fund of fund hierarchy awareness
• Fully audited adjustment and
recalculation facility
• SLA monitoring
• Price rounding rules
Collation
Trades, Positions,
Income &
Corporate Actions
Calculation
Price
Dissemination
Unit Cost Sheets
Unit Prices
Multiple Share
Classes
Internal, Market
& Client
Communication
Unit Pricing
Compliance
Validation
Approval
Sign Off
Full Audit Trail
Control Reports
Attribution
Analysis
The combination of a centralised unit
pricing capability integrated with
the investment system and general
ledger facilitates optimal process
efficiency and to ensure that referential
data integrity is maintained between
price-points. In today’s complex
operating environment, transparency
into the process status as well as an
integrated control environment are key
operational requirements to minimise
risk associated with pricing errors.
Exceptions
Management
Backdated Trades
Manual
Adjustments
About SS&C
SS&C Technologies, Inc. is a leading provider of software solutions and services for the international investment
community. Investment managers, broker/dealers, sponsors, and custodians around the world use SS&C’s missioncritical and decision support systems. SS&C brings together experts in investments, providing superior client service
from its headquarters in Windsor, CT and subsidiaries in the Canada, United States, Australia and Europe.
To learn more about how we can assist your organisation in optimising corporate actions processing, please
contact your local office: [email protected] | www.ssctech.com
© 2015 SS&C Technologies, Inc.