The alternative investment services unit of Bank of New York Mellon is launching a service that will confirm the values of assets that hedge funds hold.
The service will validate hedge funds' position records, verifying the prices of a fund's securities, as they are reported to prime brokers, custodians, trustees and agent backs.
The financial services company said the service will be highly automated, providing pricing and validation across 50 different types of assets. Relationships with 15 prime brokers and counterparties will make the service possible, the company said.
“Hedge fund clients are telling us their investors are demanding an independent validation of their holdings,” said Brian Ruane, CEO of BNY Mellon Alternative Investment Services. "The price verification and asset validation service helps address this need, which in turn helps hedge funds retain and grow their investor base."
The service currently can reconcile more than 27,000 client investment positions, with a total market value in excess of $24 billion.
BNY Mellon Alternative Investment Services is a hedge fund administrator with more than $225 billion in assets under administration.