Citi launches Form PF reporting toolkit

Fund Administration
02 Jul, 2013

Citi's fund administration business has unveiled a Form PF reporting tool for hedge fund managers.

The system will help managers aggregate information from multiple service providers including prime brokers and other counterparties. It will assist hedge fund managers in analysing and filing these data points to the Securities and Exchange Commission (SEC).

Form PF is a regulatory requirement mandated under the Dodd-Frank Act and forces hedge fund managers with more than $150 million in Assets under Management to submit detailed risk data to the SEC on either a quarterly or annual basis depending on Assets under Management (AuM).

Data requirements include Regulatory Assets under Management (RAuM), which incorporates leverage and the notional value of derivatives contracts, as well as counterparty risk exposures and information on trading and investment positions.

While most Form PF filings with the SEC went smoothly, a new challenge for hedge funds surrounds institutional investors demanding to see copies of the form. Some fund administrators are starting to create redacted or “investor-friendly” versions of Form PF for hedge fund clients whereby sensitive data is omitted. Quite how beneficial this information will be to investors is open to debate.  

A number of fund administrators have launched Form PF toolkits over the last two years. In May 2013, Northern Trust Hedge Fund Services unveiled an online tool to help managers with the Form PF compilation process, while BNY Mellon launched a similar service back in March 2013. 

COOConnect recently published a survey on manager attitudes towards disclosing Form PF to their investors, which can be viewed by our hedge fund members here

CitiForm PFSECNorthern Trust Hedge Fund ServicesBNY Mellon