Archer Insights

Improving Investment Management Operations: Reconciliation

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Several factors contribute to the industry’s angst surrounding investment management reconciliation, not the least of which is the differing purposes of the books-of-record to which investment managers attempt to reconcile. Institutional managers reconcile their IBOR to fund accountants’ ABOR, where income and expense accruals are factored into the process of striking of daily NAVs. Retail-focused investment managers reconcile their IBOR to custodians’ books, and are often faced with the challenge of having one client account with holdings across multiple custodians, each working from a different technology platform and with unique file exchange and information requirements.

Assuming that IBOR must fully match ABOR and CBOR does not always fit with an investment manager’s need for its records to be trading-ready. Indeed, an investment manager may consider its accounts fully reconciled when discrepancies between its records and other parties’ have been identified, understood, and adjusted on the IBOR system. In this way, managers can be fully confident that cash and shares are correct, and can claim proper oversight of fund accountants.

A highly automated reconciliation technology, including predictive capabilities to identify false breaks, is the foundation for any successful reconciliation process. When coupled with experienced operations support able to implement global reconciliation adjustments for such breaks as missed corporate actions, managers reduce trade and performance reporting errors. And angst.

 

 

More on this topic is available here.

 

Bill O’Toole
Bill O’Toole
Senior Vice President, Senior Account Executive

Bill O’Toole has more than 30 years’ experience supporting investment managers in various roles including Solutions, Onboarding and Operations to ensure an efficient and productive transition and support for all Archer clients. As a Senior Account Executive, Bill leads the Business Development Team in helping investment managers streamline operations, launch new products, and expand distribution through services available across Archer's solution.

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