SGSS Wins Swing Pricing Mandate in France

Société Générale Securities Services (SGSS) has won a mandate from Paris-based Ellipsis Asset Management for swing pricing calculation for a selection of funds in France.

Since June 20, 2014, stemming from the publication of the French Asset Management Association’s charter, France has authorized swing pricing, which is a mechanism for NAV calculation that reduces the dilution effect from signification subscriptions or redemptions. This in turn can cause NAV changes, and without swing pricing, the existing shareholders would bear the cost, rather than those entering or leaving the fund.

SGSS notes that Ellipsis, which is part of the Exane Group, is among the first asset managers in France to put a swing pricing mechanism in place. SGSS adds that it won the mandate due to its “expertise in this area and for its capacity to offer, in a short period of time, a robust and secure solution adapted to the French market.”