The challenge of complexity:  Unit pricing, part 5

By Michelle Leung

Unit pricing presents high operational risk, especially when manual processes are involved. The increased complexity of fund-of-funds structures, cross-country assets, multiple valuation points, and increasingly exotic assets, coupled with stricter enforcement of global regulatory compliance, adds to these risks.

To make it more complex, there is no single best methodology available to adopt unit pricing. In addition, decision making on the approach comes from an assessment of the circumstances and the requirements of the particular fund.

This all makes it tough for those running unit pricing operations to be flexible in how they define the approach and to cater for the complexity in a timely and controlled manner. In addition, unit prices are typically calculated under onerous service level deadlines, which conflict with controls and checking procedures necessary to comply with required levels of accuracy.

Unit pricing processes must be automated and provide end-to-end monitoring and management of all the components against the defined service levels through valuations, unit price calculation, final approval, and price release.

The proprietary technology platform for fund accounting and unit pricing from SS&C meets these challenges efficiently and effectively. It helps define the complex unit pricing structures in a simple and flexible manner and is incorporated in the robust architecture of our core investment accounting platform. Our platform enables automation through state-of-the-art process monitoring, intelligent workflows, and dashboard management, which results in accurate unit prices completed well within the necessary service level agreements.

To learn how we can help you with your fund accounting and unit pricing operations, contact solutions@sscinc.com.

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