BNY Mellon Asset Servicing Introduces Fair Value Pricing to Provide Updated Equities Valuations after European and Asian Markets
August 18 2009 - 9:17AM
PR Newswire (US)
BOSTON, Aug. 18 /PRNewswire-FirstCall/ -- BNY Mellon Asset
Servicing, the global leader in securities servicing, announced
today that it has introduced Fair Value Pricing, the financial
services industry's most automated system for valuing non-U.S.
equities after the European and Asian markets close. The system,
which recently was launched with a major mutual fund complex,
provides the updated valuations up until the closing of the New
York Stock Exchange. "Fair Value pricing is an important tool for
institutions such as mutual funds because it enables them to
determine the value of the securities in their portfolios if a
significant event occurs after the close of the markets that trade
those securities," said Steve Berggren, global accounting product
manager for BNY Mellon Asset Servicing. "This enables us to
calculate a more accurate net asset value (NAV) or Unitized Value.
It also provides our clients with a standard method for a fund
close price where securities are traded in multiple markets,
providing more accuracy in price for participants entering or
exiting a fund or plan." The automated system gathers data from
multiple vendors as well as a factoring agency. The factor
determines a daily multiplier that is used to alter the closing
prices of these securities in their native markets. Using the
multiplier brings the prices of the securities to a fair value that
reflects events that impact stock prices between the closing of the
native markets and the closing of the New York Stock Exchange.
Clients have the option of determining the fair value of their
securities through either the data vendors or the factor. "We
believe our process is the first in the industry to be automated
from start to finish, including the generation of reports that
institutional investors can use for control and audit purposes both
for determination of fair value use and next-day regression testing
against market open prices," said Berggren. "These reports enable
investors to see how a fair value update changes the values of the
securities they hold." BNY Mellon Asset Servicing offers clients
worldwide a broad spectrum of specialized asset servicing
capabilities, including custody and fund services, securities
lending, performance and analytics, and execution services. BNY
Mellon Asset Servicing provides services through The Bank of New
York Mellon and other related companies. The Bank of New York
Mellon Corporation is a global financial services company focused
on helping clients manage and service their financial assets,
operating in 34 countries and serving more than 100 markets. The
company is a leading provider of financial services for
institutions, corporations and high-net-worth individuals,
providing superior asset management and wealth management, asset
servicing, issuer services, clearing services and treasury services
through a worldwide client-focused team. It has $20.7 trillion in
assets under custody and administration, $926 billion in assets
under management, services $11.8 trillion in outstanding debt and
processes global payments averaging $1.8 trillion per day.
Additional information is available at http://www.bnymellon.com/.
DATASOURCE: The Bank of New York Mellon Corporation CONTACT: Mike
Dunn, BNY Mellon Asset Servicing, +1-212-922-7859, Web Site:
http://www.bnymellon.com/
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