Building a Scalable, Auditable Valuation and Pricing Process - How automation can reduce risk and improve controls in month-end pricing and valuation

The asset management industry has grown steadily since the recession, with global AUM predicted to reach US$15.3 trillion by 2020. This growth has been coupled with a comparable increase in regulatory burden and competitive pressure.

Automation is a popular strategy for addressing both of these challenges simultaneously. Replacing manual processes improves overall efficiency, while also reducing the risk of error. These benefits are driving the automation of reconciliation and the management of security, reference, and portfolio data.

However, pricing remains a notable exception with most large funds still performing critical calculations with customized spreadsheets. In this white paper, we explore why this is the case, why the conventional approach contains hidden risks, and how funds can increase automation, reduce risk, and improve controls in a strategic way.