InvescoPowerShares is using Interactive Data Corporation’s Fair Value Information Service and Basket Calculation Service as inputs to the valuation processes for its exchange-traded funds (ETFs).
Invesco PowerShares offers investors a broad range of ETFs that include international equities and fixed-income securities, including three recently launched municipal bond funds. For each of these funds, Invesco PowerShares is required to provide an indicative optimised portfolio value (IOPV) throughout the day and the net asset value (NAV) calculation at the end of the day.
With a broad range of holdings in its funds, Invesco PowerShares must have access to thetimely information needed to help make these calculations.Interactive Data offers a combination of services that can help Invesco PowerShares address these challenges. Its Fair Value Information Service provides information that can be used byPowerShares to estimate the price of an international, exchange-traded equity security whenthe local market for that equity security is closed.
This widely used service is a step that Invesco PowerShares has taken in the interest of their shareholders and to meet certain regulatory requirements.The Basket Calculation Service provides the IOPVs for Invesco PowerShares new municipal bond ETFs.
This offering uses Interactive Datas real-time fixed-income valuations, real-time equity pricing and interest rate data to calculate updated IOPVs every 15 seconds. The Basket Calculation Service can help ETF sponsors access the information required to launch funds that contain a broader range of fixed-income securities, facilitating further growth and diversification in the ETF market.
“Interactive Data offers a unique combination of services that deliver information designed tohelp us provide transparency to market makers and investors, as well as meet our requirements for providing intra-day and end-of-day ETF valuations. We are very pleased to be working with Invesco PowerShares to provide them with timely, mission-critical equity and fixed-income information throughout each day.
“It is Interactive Datas objective to harness the expertise and technology across our organisation to develop innovative offerings, such asPress Release the Fair Value Information Service and the Basket Calculation Service, that help meet the needsof our clients and help them address market requirements,” says Mark Hepsworth, president, Interactive Data Institutional Business.