Thanks to a new Securities and Exchange Commission (SEC) rule, BNY Mellon's asset servicing unit just landed a deal with ING Funds. BNY will "model the impact of interest-rate shocks, credit risk shocks and liquidity risk shocks" on ING's six money market funds, as the SEC's rule 2a-7 (which requires money funds to "examine combinations of potential stresses."
The tests BNY will use were developed by Investor Analytics, based in Berkeley Heights, New Jersey.
Company Press Release
NEW YORK, May 13 -- BNY Mellon Asset Servicing, the global leader in securities servicing, and Investor Analytics, a global leader in risk measurement and risk management solutions, have been selected by ING Funds to model the impact of interest-rate shocks, credit risk shocks and liquidity risk shocks on its six money market funds.
This service, available through BNY Mellon's strategic alliance with Investor Analytics, will help money market funds comply with Rule 2a-7 issued by the U.S. Securities and Exchange Commission (SEC). The rule, which became effective May 5, 2010, requires money market funds to examine combinations of potential stresses.
"Our selection by ING reinforces our commitment to providing a broad range of services to the mutual fund industry," said Joseph Keenan, managing director and head of relationship management for financial institutions at BNY Mellon Asset Servicing. "We see this capability as a foundation for providing risk analysis and stress testing for our clients globally as regulatory pressures continue to rise."
The suite of stress tests was developed by Investor Analytics and is available through BNY Mellon's sophisticated asset servicing technology platform. The tests examine changes in fund NAV resulting from parallel and non-linear shifts in yield curves, changes in credit spreads, increasing redemption requests, downgrade/default simulations and combinations of these stresses.
"Large and small firms alike are not only looking to satisfy existing and contemplated regulations, but more importantly, they are looking for ways to better understand how market dynamics -- interest rates, credit events and redemptions -- can each affect the portfolio individually and in combination," said Damian Handzy, chief executive officer of Investor Analytics.
Investor Analytics LLC, headquartered in Berkeley Heights, New Jersey, with offices in midtown Manhattan, has been providing portfolio and risk management services to the investment management industry since 1999. Investor Analytics employs proprietary methodologies to analyze complex investment portfolios of hedge funds and fund of hedge funds and provides clients with a suite of award-winning risk and transparency analyses.
BNY Mellon Asset Servicing offers clients worldwide a broad spectrum of specialized asset servicing capabilities, including custody and fund services, securities lending, performance and analytics, and execution services. BNY Mellon Asset Servicing provides services through BNY Mellon and other related companies.
BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation ( BK). BNY Mellon is a global financial services company focused on helping clients manage and service their financial assets, operating in 34 countries and serving more than 100 markets. BNY Mellon is a leading provider of financial services for institutions, corporations and high-net-worth individuals, providing superior asset management and wealth management, asset servicing, issuer services, clearing services and treasury services through a worldwide client-focused team. It has $22.4 trillion in assets under custody and administration, $1.1 trillion in assets under management, services $11.8 trillion in outstanding debt and processes global payments averaging $1.5 trillion per day. Additional information is available at www.bnymellon.com.
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