Daily and intraday reconciliation has become a key measure for improving asset managers’ internal controls. However, due to the rise in volume of reconciliations, teams are only given a small window of opportunity to identify and resolve breaks – igniting a process known as exception management that involves exception prioritization, escalation and documentation.
The correct business decisions can only be made if the data being used to generate insights is clean and accurate. With this requirement, data management has become crucial for funds, especially within the reconciliation process as data is constantly extracted and processed from a variety of different sources.
In today’s market environment, it has become increasingly important for hedge fund managers to focus primarily on the responsibility of maximizing performance alpha for their clients. By leveraging a reconciliation service provider, this focus becomes even greater and easier to maintain as hedge funds can simultaneously drive operational alpha by tapping them for the below advantages and services:
With the continued acceleration of asset management’s digital transformation, many managers have begun fully automating the routine, resource-intensive operational burden of reconciliation. However, some managers have opted to settle for disparate and semi-automated reconciliation systems, which can increase operational risks and oftentimes opportunity loss due to the unclear picture it presents on resident cash. Read More
In this environment of information overload and increasing operational complexity, understanding the gaps between a client’s internal financial system data workflow and the counterparty or administrator’s external data is crucial for ensuring the integrity of positions held. With both artificial intelligence and machine learning-enabled capabilities, a position reconciliation solution can be used to automatically match all equivalent positions and ensure break management on a daily basis, ultimately helping funds maintain efficiency, accuracy and flexibility.