A BNY Mellon news release said the information is typically provided to prime brokers, custodians, trustees, and agent banks.
to the announcement, 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. 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, in the news release.
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 is a hedge fund administrator with more than $225 billion in assets under administration. In addition to administration the company offers accounting, cash management, collateral management, custody, corporate trust, asset management, and wealth management services to the hedge fund industry.