Back to Archived News
Landmark US Patent Granted to Infonic Recognizes Solution for Handling Uncertainty in Accounting Information
Thursday, May 06, 2010
Historic Award Recognizes Infonic's Creative Ownership of Information Availability and Transparency for Investments in Hedge Funds Where Data Is Supplied From Multiple Sources in Varying Quality and Often Substantially Time Delayed
Zurich, Switzerland & New York, NY -- Infonic AG, the leading provider of front, back and middle office software solutions to the funds of hedge funds (FoHF) industry and other institutional investors in hedge funds, today announced it has been awarded a United States Patent, No. 7,653,578 B2. This patent addresses a key issue in the portfolio accounting and tracking of investments into hedge funds: the challenge of handling uncertainty in accounting information due to time delay in the issuance of related information. The patent, issued Jan 26, 2010, was awarded based on Infonic's unique use of streams of account flows. These provide additional depth and detail to the tracking of account information; beyond the traditional dimensions of value and date. By overlaying these flows, information may be tracked and navigated over the life cycle of the account including dynamic changes over time. As a result, a hedge fund pricing universe may be accurately built while simultaneously capturing complex business transactions, such as redemptions from hedge funds that may take 90 days or more from transaction decision to final cash settlement.
"After submitting our patent application back in 2004, we are delighted to be ultimately rewarded with its grant. We have always considered ourselves as leaders in this particular aspect of portfolio accounting unique to alternative investments. The industry investing in hedge funds runs on estimates, while accounting runs on facts. We bring these disconnected worlds together with our systematic approach, managing the timeliness versus accuracy conundrum. It is very gratifying to have the official endorsement of our work in this area that this US patent provides," said Tom Furrer, CEO of Infonic AG. "Asset Managers and Administrators need to be able to make frequent investment or cash management decisions. They can't stop and wait for final numbers to come out. It doesn't make sense from a business perspective either to stop pricing or transaction processing to wait on portfolio valuations. Investors and regulators want near-real-time information. However, time periods are inherently overlaid when running on estimated information. Our HedgeSphere product incorporates our patented methods at its core to deliver our clients with the most robust operations solution for the industry, allowing our clients to be on top of their Hedge Fund investments at any time with the best available, quality-assessed information."
About Infonic AG
Headquartered in Switzerland, and with offices in Zug, Zurich and New York, Infonic AG is the leading provider of front, middle and back software solutions to the global fund of hedge fund industry. Its HedgeSphere product range debuted in 1999 and has been adopted by the largest and most innovative players in the industry. For more information about Infonic AG, visit www.infonic.net.
Back to Archived News