Monthly Archives

July 2020

Reconciliation for the Buy Side

Reconciliation for the Buy Side

By | Blog, Recon | No Comments

For any hedge fund or alternative asset manager, the day starts with reconciling positions, cash balances and transactions amongst internal portfolio accounting systems and external counterparties, including prime brokers, custodians and fund administrators. At its core, this daily task is operationally complex, making the use of manual Excel-based processes inefficient, error-prone and a drain on overall productivity. Due to this complexity, along with the fact that managers have to routinely deal with high transaction volumes and esoteric instruments, many are now seeking solutions that systematically analyze the root cause of repetitive exceptions, automatically escalate aging exceptions, establish multi-level approval workflows and ensure a robust audit trail of all actions.

With that being said, establishing a simple and unified reconciliation output across funds and brokers is emerging as a critical requirement for asset managers, and it can be done by implementing a solution to perform the below set of core processes and steps:
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Understanding the Risks Involved in the Pricing and Valuation Process

Understanding the Risks Involved in the Pricing and Valuation Process

By | Blog, Price Master | No Comments

Pricing and valuation is an inherently complex process. Funds are pricing hundreds, sometimes thousands, of instruments in dozens of portfolios, using inputs from multiple market data vendors and broker quotes. These are typically categorized as listed, over-the-counter (OTC) and private securities. Since most funds have a relatively small team devoted to the task of calculating both daily and monthly prices, they have developed over time highly customized spreadsheets for each category of securities to make the process easier.
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Automating Bank Recociliation Statement

Automating Bank Statement Reconciliation

By | Blog, Recon | No Comments

Bank reconciliation involves the matching of an individual transaction between a bank statement and business finance system.

Traditionally, this time-consuming and detailed process has been performed manually. However, with recent changes in the scale of business, increase in volume of transactions, daily limitations and evolution of accounting systems, account managers have been increasingly seeking ways to automate the entire process to reduce risk and drive operational efficiency. Read More

SEC Continues Its Focus on the Misappropriation of Fund Assets

SEC Continues Its Focus on the Misappropriation of Fund Assets

By | Blog, Expense Manager | No Comments

Expense allocation is a critical process for private equity, hedge funds, pension funds and other asset managers often performed manually through the use of Excel-based spreadsheets. However, due to the complex nature of fund expense rules that differ from fund to fund, managing this process manually can lead firms down a path of operational risks that have the potential to result in hefty regulatory fines, a loss of reputation or monetary loss to the management company.

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