BBH gives asset manager oversight of NAV outsourcing

The new tool by BBH will give asset managers greater oversight of the net asset value (NAV) function performed by fund administrators. 

By Joe Parsons

Brown Brothers Harriman (BBH) has launched a new tool allowing asset managers to oversee the net asset value (NAV) function performed by their third-party administrators.

Designed for the asset manager’s middle-office and treasury teams, BBH’s InfoNAV allows them to not only monitor the process, but it can create a secondary or informational NAV which can then be compared to the fund administrator’s NAV.

This will highlight specific variations that may require review or risk mitigation by the fund administrator.  

“While an asset manager’s underlying fund administrator will always be responsible for the ‘official’ NAV calculation, InfoNAV facilitates an independent secondary NAV capability without the overhead of an additional administrator or duplicate operations,” said Christian Bolanos, senior vice president and global head of BBH’s outsourcing discipline.

“Both asset managers and regulators are demanding new oversight models, so control and transparency into the operational process and output are imperative.  Our clients have seen the value InfoNAV provides in creating a daily secondary NAV for comparison to their administrators.”

BBH is also planning to leverage its use of machine learning, artificial intelligence and other emerging technologies to introduce new tools to allow further control and transparency in the outsourcing process for asset managers.

These tools will be designed to detect NAV anomalies, provide NAV calculation status and classify reconciliation breaks.