BNY Mellon Asset Servicing Launches New Fair Value Pricing Offering

BNY Mellon Asset Servicing has launched a new fair value pricing offering, allowing clients to undertake a revaluation of equity and futures positions in markets that have closed prior to the valuation point of the fund.

Principal benefits include:

  • More accurate asset valuation and hence a more accurate fund net asset value (NAV).
  • Flexibility to tailor application to client specific requirements.
  • Pre-defined criteria enable automated generation of adjusted values.
  • Process significantly automated with appropriate audit trail and reports.

BlackRock is the first adopter of the new service, which is initially being introduced as a London noon service, covering north and south America markets. As an example, a valuation adjustment of US equity in a fund valued at 12 noon UK time will take into account events after the local market closure that impact the security price up to the valuation point of the fund.

The service also allows for fair value to be invoked at the asset level per fund and can be tailored in line with individual client requirements such as fund specific markets in scope and confidence level. The flexibility of the model also allows for additional valuation points to be added subject to client need.

Tony Stenning, head of UK retail at BlackRock, said: “BNY Mellon’s new fair value pricing offering has allowed us to replace the existing manual service and offers distinct benefits in terms of timeliness, level of detail and flexibility.”


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