Note 7 – Other assets


Other assets	March 31,		Dec. 31,
(in millions)	2012		2011
Corporate/bank owned life insurance	$	4,230	$	4,216
Accounts receivable		3,801		4,208
Equity in joint ventures and other investments (a)		2,774		2,677
Income taxes receivable		2,714		2,573
Fails to deliver		1,157		961
Software		1,019		986
Fair value of hedging derivatives		1,035		1,600
Prepaid expenses		624		784
Due from customers on acceptances		300		321
Prepaid pension assets		160		144
Other		1,619		1,369
Total other assets	$	19,433	$	19,839

(a)

Includes Federal Reserve Bank stock of $432 million and $429 million, respectively, at cost.

Seed capital and private equity investments valued using net asset value per share

In our Investment Management business, we manage investment assets, including equities, fixed income, money market and alternative investment funds for institutions and other investors; as part of that activity we make seed capital investments in certain funds. BNY Mellon also holds private equity investments, which consist of investments in private equity funds, mezzanine financings and direct equity investments. Seed capital and private equity investments are included in other assets. Consistent with our policy to focus on our core activities, we continue to reduce our exposure to private equity investments.

The fair value of these investments has been estimated using the net asset value (“NAV”) per share of BNY Mellon’s ownership interest in the funds. The table below presents information about BNY Mellon’s investments in seed capital and private equity investments.

Seed capital and private equity investments valued using NAV – March 31,
2012

(dollar amounts
in millions)

Fair
Value

Unfunded
commitments

Redemption
frequency

Redemption
notice
period

Hedge funds (a)

Monthly-quarterly

3-45 days

Private equity funds (b)

121

N/A

Other funds (c)

Monthly-yearly

(c)

Total

213

(a)

Hedge funds include multi-strategy funds that utilize a variety of investment strategies and equity long-short hedge funds that include various funds that invest over both long-term investment and short-term investment horizons.

(b)

Private equity funds primarily include numerous venture capital funds that invest in various sectors of the economy. Private equity funds do not have redemption rights. Distributions from such funds will be received as the underlying investments in the funds are liquidated.

(c)

Other funds include various market neutral, leveraged loans, real estate and structured credit funds. Redemption notice periods vary by fund.

N/A – Not applicable.