BNY Mellon Alternative Investment Services has launched a service that independently validates a hedge fund’s position records to third parties and verifies the pricing of that fund’s securities.
The new service provides fund managers and their investors with greater transparency and additional assurance that fund assets are independently priced and validated.
The service, with pricing and validation coverage across 50 asset classes, is enabled by BNY Mellon’s relationships with more than 150 prime brokers and counterparties.
It can be used to supplement client interface with accountants and independent auditors and can also be customised to meet specific requirements, including tolerance checking across positions, price or market values.
“Hedge fund clients are telling us their investors are demanding an independent validation of their holdings. The price verification/asset validationservice helps address this need, which in turn helps hedge funds retain and grow their investor base,” says Brian Ruane, chief executive officer of BNY Mellon Alternative Investment Services. “While our broad network of pricing vendors and counterparties are the power behind this new offering, greater transparency is clearly the motivation.”
Currently, the price verification/asset validationservice reconciles more than 27,000 client investment positions, with a total market value in excess of USD24bn. Client coverage rates (assets validated as a percentage of total portfolio scope and value) are in the range of 95 to 99 per cent. Clients can elect the service on a monthly or quarterly basis.