The new offering is intended to help with NAV oversight obligations across third-party administrators.
Brown Brothers Harriman (BBH) has debuted a solution — NAVqc — intended to help asset managers, management companies, and service providers “more effectively fulfill their NAV oversight obligations across third-party administrators,”
officials say.
NAV is an acronym for net asset value and helps industry participants gauge the per-share value of mutual funds or exchange-traded funds (ETFs), for example. The NAV is calculated as the total value of the fund’s assets minus its liabilities, divided by the number of outstanding shares.
“Using machine learning, NAVqc analyzes individual fund behavior based on the fund’s historical data in real market conditions. It predicts NAV movements, flags suspect values, and delivers exception-based alerts on the underlying NAV details to support investigation and resolution,” officials say.
NAVqc’s capabilities include:
• Overseeing NAV production across all third-party administrators, systems, and data sources globally;
• Helping identify true NAV anomalies; and
• Providing component details, with tolerances and alerts that can help managers to quickly pinpoint and remediate errors, reducing risk and cost
“As regulators and fund boards place greater focus on managers’ ability to demonstrate effective oversight of NAV production, the process has become increasingly important. For managers overseeing multiple funds, structures, and
third-party administrators, it can also be highly complex and time-consuming,” officials say.
A private bank, BBH has 6,000 employees serving clients and their investments in more than 90 markets from 18 offices worldwide.
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