has signed on with FT Interactive Data
for help with the pricing of its international funds. Harford-based ING will us FT Interactive's Fair Value Information Service
for the foreign securities held in its funds.
The Fair Value Information Service
employs a "bottom-up" methodology to allow funds to determine the most up-to-date net asset value (NAV) when major events take place after the close of foreign exchanges. By calculating NAVs closer to the true value of the securities held in the fund, the fund is able to eliminate opportunities for arbitrage, according to Ray D'Arcy
, president, Data Delivery Products, FT Interactive Data.
The service relies on a computer model developed by FT Interactive and a database of historical data on market moves and security valuations. The service allows funds offers both a confidence interval and an adjustment factor, which can both be applied to the local market closing price of an equity that the fund decides to fair value. The service also shows supporting data through its Web site.
"Mutual funds need to fair value increasing numbers of international equities in order to fulfill their legal obligations as well as to protect shareholders from the ill effects of market timers. Our Service delivers data that our clients can use to help meet those needs," he added.
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