Accuracy is integral to your confidence, and the BFP Fund Administration platform has multiple components to ensure investor net asset values are independently and accurately valued, reconciled and reported in a timely manner.
Most hedge fund platforms only provide monthly valuations, making it more difficult for investors to make accurate investment and reallocation decisions. BFP provides daily valuations and risk metric reporting on data such as industry and geographic concentrations. This up-to-the-minute information allows investors to confidently plan investment and reallocation strategies in a timely way.
Pricing Accuracy
The Fund Administration platform uses a client-specified pricing hierarchy. Using a rules-based methodology, these customized pricing guidelines allow for accurate, daily, automated pricing selections based on security types, price sources and price age. These guidelines reflect fair value prices as provided by independent pricing service providers. FAS 157 fair value price levels are reported for
each security and in aggregate.
Checks and Balances
To ensure fair market values are accurately
reported, comparative valuations are drawn
from many sources. For exchange-traded
and bank debt positions, many third-party
pricing sources are used. OTC derivative
pricing is retrieved directly from counterparties.
Additional price confirmations are received
from prime brokers and fund managers.
Prices and their associated attributes are stored in the Fund Administration platform for historical research, reasonableness and audit purposes. Selected and non-selected prices per security, price sources, and effective date of the prices are all examples of the data received and maintained within the Fund Administration platform.