BondView Releases Fintech Solution to Assist Funds in Setting Highly Liquid Investment Minimum (HLIM) to Comply with SEC Rule 22e-4

NEW YORK, Nov. 7, 2018 /PRNewswire/ -- BondView, a leading provider of fund liquidity information, launched today the first fintech platform to assist mutual funds with the challenge of setting and monitoring Highly Liquid Investment Minimums (HLIM) as prescribed under the new SEC rule 22e-4.

The SEC defines HLIM as the minimum amount of the fund's net assets that must be invested in highly liquid investments to ensure that they are prepared to meet redemption requests without significant dilution of remaining investors' interests in the fund. In determining HLIM, a fund is required to consider investment strategy and cashflow factors as they apply during both normal and reasonably foreseeable stressed conditions.

Rather than determining HLIM based on a purely hypothetical guess about future circumstances, a more robust and defensible method is to review actual fund redemption data for both the fund and its peer group over a sufficiently long period of time to encompass both normal and stressed conditions. This approach offers funds a strong and defensible argument in SEC Examinations and other audits.

BondView's LiquidityRisk^™ provides Implied HLIM Targets based on actual historical redemption data. This allows fund management to review the real-world performance of both their specific fund and its peer group over varying historical periods. Peer group members can be filtered by fund size to ensure that smaller sized funds are fairly assessed when compared with larger funds.

The tool also has several customization options for funds to fine tune HLIM based on their specific circumstances as required under the rule. This includes the application of available credit facilities designed to better manage short term liquidity

By basing HLIM on real data and not theoretical assumptions, funds are able to offer strong and defensible arguments for their decisions. BondView provides the necessary data and analytics to support this process. The product will initially be available for Municipal Bond Funds.

About BondView: BondView offers comprehensive information on municipal bond fund liquidity and holdings as well as coverage on 3 million municipal bonds from over 50,000 issuers including prices, ratings, financial disclosures, stress testing and more. BondView clients include institutions, financial advisors, compliance, issuers and retail investors.

Media Contact:  Jim Walker, BondView, [email protected], 866-261-9533

SOURCE BondView