Guggenheim Partners Chooses Milestone's pControl for NAV Computation

Boston-based fund processing solutions provider Milestone Group has announced that Guggenheim Investments, the investment management arm of Guggenheim Partners, with $127 billion in assets under management, will use Milestone’s pControl platform to manage and automate net asset value (NAV) calculations.

NAV is formulated by taking the total value of all the securities in a mutual fund portfolio, less any liabilities, and dividing by the number of fund shares outstanding. Traditionally completed manually using spreadsheets, NAV is developed by pControl by aggregating multiple data sources, validating computations automatically, and presenting a consolidated view of all funds in across a dashboard.

Mike Scalzi, head of investment valuation at Guggenheim Investments, says a number of features attracted the firm to pControl's solution that will reduce risk and improve efficiency. 

The first is speed. "NAV production must be completed in a timely fashion: We run a lean operation and any efficiencies gained during the period from when the markets close to when we need to release the NAV are very valuable. Once pControl is implemented, my group can focus its time and efforts resolving outages rather than identifying them," he says.

The solution's modular architecture, combined with enhanced rules-based intelligence, will also help mitigate operational risk by reducing errors. "PControl provides much more flexibility with creating new rules and takes considerably less time. Our NAV error rates are low to begin with, and there is not any one type of error that pControl will address, but the big benefit for us is the ability to process large amounts of information and the automation of our past rules-based approach," says Scalzi.