Temenos (SIX: TEMN), a banking software company, has formed a strategic collaboration with Bloomberg to deliver contingency Net Asset Value (NAV) calculations to buy-side institutions.
The company will make its leading Temenos Multifonds Global Accounting product accessible via the Bloomberg Terminal, so it operates with data, analytics, and other investment workflow services Bloomberg offers. This innovative and unique offering allows asset managers to generate NAV estimates independent of and in parallel to their fund administrators, enabling accurate daily oversight, and ensuring continuity of operations in the event of outages. As part of this global collaboration – initially focused in the US and Europe – Bloomberg will build on its strong and trusted relationships within the buy-side industry to provide sales, marketing, and services support. This collaboration opens up a new business opportunity for Temenos of 40,000 buy-side firms, of which two-thirds are in North America.
NAV calculations can be impacted by errors and outages with detrimental results for a firm’s fund operations, performance and reputation. Delivered via Bloomberg, this innovative solution delivers shadow NAV oversight, with no need for onsite infrastructure or associated overhead. This gives asset managers and other buy-side institutions a scalable and efficient way to validate calculations provided by third-party fund administrators, making the most of Bloomberg’s buy-side reach and Temenos’ fund accounting software and expertise. This offering is complementary to the Temenos Fund Administration product being made available to a new set of addressable customers, including buy-side institutions that have already outsourced their back-office operations to fund administrators.
Jean-Paul Zammitt, Global Head of Financial Products, Bloomberg, says: “This strategic collaboration with Temenos enables us to help buy-side firms meet their need for dependable and independent NAV oversight, to support operational contingency plans and satisfy investors. By combining Temenos’ distinctive accounting capabilities with Bloomberg’s data and services, we will provide asset managers with a more comprehensive investment lifecycle workflow, support their relationships with fund administrators, and pave the way to deliver additional innovative solutions to buy-side institutions in the future.”
Max Chuard (pictured), Chief Financial Officer and Chief Operating Officer, Temenos, says: “We are excited to partner with Bloomberg, whose capabilities and expertise in the buy-side space are proven and trusted. This highly strategic global collaboration dramatically increases our growth into the USD5 billion buy-side technology space. For Temenos there is the opportunity to grow our reach among asset managers, who already use Bloomberg’s buy-side solutions, as well as alternative investment segments such as hedge funds. We will offer an easy, plug and play solution with a low TCO, starting with NAV oversight and contingency through Bloomberg’s Terminal customers, with a view to unlocking further opportunities into the front and middle office over time.”