Swiss tech vendor Temenos has confirmed a new collaboration with Bloomberg to offer its fund administration product to its buy-side users.
The Temenos Multifonds Global Accounting product will be made accessible to buy-side institutions via the Bloomberg Terminal.
The partnership will allow asset managers to generate net asset value (NAV) estimates independent of and in parallel to their fund administrators, enabling accurate daily oversight and ensuring continuity of operations in the event of an outage.
“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,” said Jean-Paul Zammitt, global head of financial products, Bloomberg.
The partnership reflects the rise of ‘shadow’ fund administration, with an independent third-party providing oversight and validation of NAV.
Bridgewater Associates, the world’s largest hedge fund, helped launch the industry’s first dual-outsourcing model, using BNY Mellon as its middle-and back-office provider and Northern Trust as an independent verifier of fund accounting, investment book of record (IBOR), trade reconciliations and reporting.
Initially focused on the US and Europe, the collaboration opens a new business opportunity for Temenos in the $5 billion buy-side technology space, representing 40,000 buy-side firms of which two-thirds are based in North America.
“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,” said Max Chuard, chief financial officer and chief operating officer, Temenos.
“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.”