ING Funds is to use FT Interactive Data's Fair Value Information Service to support fair valuation procedures for equities held in its international portfolios.
The service is designed to help firms that must fair value foreign securities when market quotations are not readily available due to events that have occurred since the local market closed, but before a fund's daily NAV calculation. The service combines a computer model with historical data to provide tools to assess the impact of volatile markets on foreign security valuations.
Fair Value Information Service creates a confidence interval, which can help users decide when to fair value a given security, and an adjustment factor that can be applied to the local market closing price of the equity.
FT Interactive says the service provides information for each security rather than for broad industry sectors or countries or entire portfolios.