Contingent and Oversight Net Asset Value: Who Watches the Watchmen?

Regulatory pressure and scrutiny are major reasons for firms to invest in oversight and contingent NAV functions and technologies.

London, 8 July 2021 – Over the past five years, regulators in key jurisdictions have commented on and made into law the need for financial institutions to understand the supply chain risk of third-party vendors, perform greater oversight over outsourced functions, and ensure the operational resiliency of internal processes. Specifically for buy-side institutions, greater regulatory attention is on fund valuation. But deploying in-house fund accounting technology and teams to duplicate the work done by third-party administrators is costly. Can the industry develop newer approaches to overseeing TPAs’ net asset value and create processes to generate backup valuations?

This Impact Report highlights the most salient trends within the oversight and contingent NAV space, examining the operating models and organizational change, the role of technology, and the vendor selection process. Based on Aite Group interviews conducted with buy-side firms and fund administrators between October 2020 and March 2021, it also profiles the following vendors that offer stand-alone solutions or services in the space: Bloomberg, BNY Mellon, Brown Brothers Harriman & Co., FundGuard, Funds-Axis, HSBC, Linedata, and Milestone Group.

This 49-page Impact Report contains 12 figures and three tables. Clients of Aite Group’s Institutional Securities & Investments service can download this report, the corresponding charts, and the Executive Impact Deck.

This report mentions Amazon Web Services, Bloomberg, BNY Mellon, Bridgewater Associates, Brown Brothers Harriman & Co., Calvert Investment Management, FIS, FundGuard, Funds-Axis, HSBC, Intellect Design, KPMG, Linedata, Milestone Group, SimCorp, SS&C, and Temenos Multifonds.

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