HSBC has responded to calls for a more transparent approach to calculating funds’ net asset value (NAV) by developing a number of apps.
The NAV Oversight suite is designed to strengthen oversight for asset owners and managers, enabling them to track the timetable for NAV production and review their accuracy and the underlying market movements.
According to HSBC, the apps will also provide more transparency into the NAV quality control process and explain the reasons why these controls might be exceeded.
The NAV process has come under examination following the market turbulence of March 2020 that saw the NAVs of some fixed income ETFs deviate by as much as 8%.
In July fund manager Invesco issued a call for NAV providers with better analytics and more transparency to prevent any confusion among investors regarding changes to ETF prices.
Sebastien Danloy, HSBC’s global head of asset owners and managers, securities services, said: “Regulators and investors are increasingly focused on ensuring that asset owners and managers are effectively monitoring the operations they outsource to service providers such as HSBC.”
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