BNY Mellon AIS Unveils Hedge Fund Validation Service

Dec 14 2009 | 10:25am ET

Fund administration firm BNY Mellon Alternative Investment Services has launched a service that independently validates a hedge fund's position records and verifies the pricing of that fund's securities.

According to the firm, the new service provides fund managers and their investors greater transparency and additional assurance that fund assets are independently priced and validated.

The service, which can be used to supplement client interface with accountants and independent auditors, can also be customized 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 validation service helps address this need, which in turn helps hedge funds retain and grow their investor base," said 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 validation service reconciles more than 27,000 client investment positions, with a total market value in excess of $24 billion. Client coverage rates (assets validated as a percentage of total portfolio scope and value) are in the range of 95-99%. Clients can elect the service on a monthly or quarterly basis.

BNY Mellon Alternative Investment Services currently has more than $225 billion in assets under administration. In addition to administration the company offers a wide range of accounting, cash management, collateral management, custody, corporate trust, asset management and wealth management services to the hedge fund industry.

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