ConvergEx Group, a provider of global brokerage and trading-related services, has launched a service to help hedge funds and mutual fund companies manage liquid alternatives.
Liquid alternatives are investment products that feature an alternative strategy that has been packaged into a mutual fund, ETF or other exchange-traded product.
Developed in cooperation with Portfolioshop Inc, a software development and data management firm based in New York, the service provides daily reconciliation of complex data between the three parties that are required to support liquid alternatives: the trust bank, the prime broker and the fund administrator. This reconciliation helps to ensure greater accuracy and reliability of daily reports that can range from VAR analysis and stress tests, to details on performance attribution and analysis.
“Reconciliation between multiple custodians and administrators can be a big expense for any firm, especially for 40 Act registered funds that are required to use certain types of custodians. Our new service significantly simplifies this process, saving our clients time and money, and reducing staffing needs,” says Douglas M Nelson, ConvergEx Group executive managing director. “We are excited to be offering our clients innovative new tools for the burgeoning liquid alternatives market.”
