Brown Brothers Harriman has announced the launch of NAVqc, described as a new solution to help asset managers, management companies, and service providers more effectively fulfil their NAV oversight obligations across third-party administrators, while reducing cost and risk.
The firm writes that using machine learning, NAVqc analyses individual fund behaviour 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.
The firm writes that key benefits include:
Administrator-agnostic tool, overseeing NAV production across all third-party administrators, systems, and data sources globally
Proactively helps identify true NAV anomalies, significantly reducing the volume of false positive exceptions requiring manual review
Provides a comprehensive, transparent view of NAV component details, with configurable tolerances and alerts that enable managers to quickly pinpoint and remediate errors, reducing risk and cost
Rapid implementation, enabling clients to realise value quickly
As regulators and fund boards place greater focus on managers’ ability to demonstrate effective oversight of NAV production, the process has become increasingly important, the firm says.
For managers overseeing multiple funds, structures, and third-party administrators, it can also be highly complex and time-consuming.
“Managers need a NAV oversight solution that is less manual, error-prone, and resource-intensive than the current solutions in the market today,” says Aish Agrawal, Managing Director, BBH Infomediary Data Solutions.
“We developed NAVqc to answer that call, based on technology that BBH uses to review its own NAV production process for hundreds of clients daily. We’ve seen that NAVqc has reduced the volume of NAV exceptions that require review by more than 75 per cent which saves time, risk, and cost.”
