Source: Interactive Data
Interactive Data Corporation (NYSE: IDC), a leading provider of financial market data, analytics and related services, today announced that Invesco PowerShares is using its 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 optimized 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 the timely 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 by PowerShares to estimate the price of an international, exchange-traded equity security when the 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 utilizes Interactive Data's 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 to help us provide transparency to market makers and investors, as well as meet our requirements for providing intra-day and end-of-day ETF valuations," said Rudolf E. Reitmann, Vice President and Director of Portfolio Administration, Invesco PowerShares.
"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," said Mark Hepsworth, president, Interactive Data Institutional Business. "It is Interactive Data's objective to harness the expertise and technology across our organization to develop innovative offerings, such as the Fair Value Information Service and the Basket Calculation Service, that help meet the needs of our clients and help them address market requirements."