NAV Contingency

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Overview

FundGuard’s NAV Contingency is the only solution that provides a fully automated true-SaaS accounting-based contingent NAV. No longer must asset managers/fund administrators compromise based on resilient expensive NAV accuracy or affordable short duration solutions. FundGuard’s distinctive technology accounting platform offers repeatable on-the-penny NAVs without dilution, full NAV production operational capabilities – and all for a fraction of the cost of comprehensive legacy solutions.

Some key features:

  1. Daily delivery of NAVs immediately reflective of the last input. FundGuard NAV Contingency takes the same feeds you send to your fund administrator – no processing, no lag time.
  2. Delivery of fully reconciled results between contingency: primary NAVs. FundGuard automatically compares NAV component results back to each primary service provider’s NAV details and prioritizes impacting differences for you.
  3. Board quarterly BCP dashboard to track stats on accuracy and critical timings.
  4. Includes all features exception controls and AI insights described in FundGuard’s NAV Oversight solution.

Key Features

Our view regarding NAV Contingency is that in a true contingency situation you must be able to:

a.Determine an accurate NAV that would exactly match the result that your primary NAV platform/provider would have otherwise produced since at that point this becomes your official NAV regardless of which system produced the NAV. This would require full processing capabilities: expenses, maturities, distribution, income, amortization, full price and FX processing, corporate actions, etc.

b.Continue and operate in full NAV production as with your primary NAV platform over a period of several weeks which would entail the ability to:

i.Process trades and corporate actions manually when needed.

ii.Generate full sets of reports to both internally validate the NAV results and provide relevant outputs/data to the various stakeholders.

c.Operate your full book of business with equal numbers of ops team over a period of several weeks

d.Be truly independent from the accounting system platform for which the backup is designed:

i.Separate data center and network in case of cyber, physical or electrical related outage.

ii.Consume proprietary fund activity (trades, capital) and market reference data from independent sources rather than from the primary.

All this means is that in order to be a true NAV Contingency solution that would genuinely withstand an outage such as what BNYM experienced, or potentially an even worse circumstance such as a cyber-attack etc., you first must be a fund/investment accounting system, then augment with the capabilities to prove out your contingency readiness on a daily basis.