Interactive Data Corporation, a provider of financial market data, analytics and related services, has announced that Invesco PowerShares is using its fair value information and basket cal
Interactive Data Corporation, a provider of financial market data, analytics and related services, has announced that Invesco PowerShares is using its fair value information and basket calculation services as inputs to the valuation processes for its exchange-traded funds.
PowerShares offers investors a broad range of ETFs that include international equities and fixed-income securities, including three new US municipal bond funds. For each of these funds, PowerShares is required to provide an indicative optimised portfolio value throughout the day and the net asset value calculation at the end of the day, and must have access to the timely information needed to help make these calculations.
Interactive Data says its combination of services helps PowerShares address these challenges. The fair value information service helps the ETF provider estimate the price of an international exchange-traded equity when its local market is closed.
The basket calculation service provides the indicative optimised portfolio values for PowerShares’ municipal bond ETFs, using Interactive Data’s real-time fixed-interest valuations, real-time equity pricing and interest rate data to calculate updated values every 15 seconds. The service help ETF sponsors create funds containing a broader range of fixed-interest securities.
‘Interactive Data offers a unique combination of services that deliver information designed to help us provide transparency to market makers and investors, as well as meet our requirements for providing intra-day and end-of-day ETF valuations,’ says Rudolf E. Reitmann, a vice-president and director of portfolio administration at PowerShares.
Mark Hepsworth, president of Interactive Data’s institutional business, adds: ‘We are very pleased to provide Invesco PowerShares with timely, mission-critical equity and fixed-income information throughout each day.
‘Interactive Data’s objective is to harness the expertise and technology across our organisation to develop innovative offerings, such as the fair value information service and basket calculation service, that help meet the needs of our clients and help them address market requirements.’
Bedford, Massachusetts-based Interactive Data supplies real-time market data, time-sensitive pricing, evaluations and reference data for millions of securities traded around the world, including hard-to-value instruments, to many leading financial services and software companies in support of their trading, analysis, portfolio management and valuation activities. The company has some 2,300 employees at offices in North America, Europe, Asia and Australia.