Roughly 40% of workforce being let go. Mostly grade HH we were told today sad to report!
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Sure we invested in a NAV application… more than three decades after the rest of the custody banks.
“After all, the world was watching our every move at the time and we were failing.”
The world isn’t watching our every move, which is a good thing for us as we were and are failing and lagging.
Over staffed and under automated. Why can’t we ever seem to get the low hanging fruit automated. Shiny new GF servers delivering circa 1990s applications.
@2eiq+1
Yes, and they get the NAV whether they’re buying or selling.
The only thing unique about us is the lack of automation. The very fact that you think of NAVs in terms of overnight NAV teams and daylight teams, not what they really are or do.
We are literally 37 years behind other custodians,
Honestly a lot of these comments bother me as they are from people who don’t really know what goes on in Fund Accounting (NAV Ops). Absolutely zero clients use custody’s NAV to determine the price investors get to invest in a mutual fund or redeem out of a fund. TA processes these transactions based on the price they receive from Fund Accounting each night. Custody does not have all the necessary information to provide a correct NAV. Based on OP’s post it sounds like a decent number of people will be losing their jobs and to me that is sad.
NAV is Net Asset Value. It’s mostly a term used for determining the end of day value of a mutual fund, which is derived from hundreds or even thousands of holdings within the fund. Just the total value divided by the shares.
All of the custody banks that I’ve worked for except for BNYM have had it automated since the mid-late 1980s. Our tech is so poor that Operations are doing this… hopefully not with slide rules.
I hope it's the right people this time.
Happy Thanksgiving!
...a lot of leadership changes but none suited to lead.
It's funny that OP mentions HH as the target level for layoff. MF/NAV Ops (however senior management wants to slice it up - it's all the same) is a very bloated group. Majority of staff are VP and above. Do we need management level staff clicking a button at 8PM?
We have seen a lot of leadership changes in the global fund accounting world over the last 5 years. When Invest1 crashed, we invested (pun intended) in a “shadow” NAV application. After all, the world was watching our every move at the time and we were failing. And the obvious intent was to automate this process once we felt comfortable with the shadow nav application being correct. Our new leadership helped us get to the point. This action will help deliver more revenue to the firm and deliver higher returns to our shareholders. Great example of being more commercial and acting like owners. Well done team!
Net Asset Value (NAV) calculations for mutual funds have been automated since the early 1980s by every custody bank. How is it that we missed the memo, and more…. how is it that we’re even still in business?
My theory is that we’re too obsolete to be worth acquiring. Moving us forward 4 decades would be a seriously nasty conversion.
NAV Ops is mutual fund accounting. Mostly useless people
Nav ops is fund accounting. Are we losing any major clients to warrant that level of cutting??
What is NAV Ops?
Location?