Net Asset Value (NAV) Reconciliation

The Depowise Net Asset Value (NAV) reconciliation tool enables users to save time by splitting NAV reconciliation into various subtasks (e.g. reconciliation of different NAV components).

With the help of our configurable filter solution, users are able to focus on major discrepancies and hide components that are fully matched and/or fall within pre-set limits. Our solution enables simultaneous operations by multiple users at the same time. In cases of more complex reconciliation tasks, it is possible to add information in the form of Excel calculations or documents.

Depowise NAV components:

• Holdings reconciliation – holding-by-holding comparison of the Fund Management Company (FMC) Holding report with the Custody Holding report. If a pending transactions report is available from the Custodian, the Custody Holding report can be adjusted to include pending transactions for reconciliation purposes.
• Price reconciliation – comparison of FMC valuation information with official market data, users are able to pre-set the limit of discrepancy for FMC prices being approved automatically, only material differences will be checked by the user.
  • Price difference should not be more than the defined percentage (e.g FMC price is within y% of market price)
  • FMC price has to be between low and high of the day
• Cash reconciliation – cash reconciliation is performed based on the daily cash reconciliation report provided by FMC. Depowise compares cash balances of various custody accounts in multiple currencies with cash balance reported by FMC; depending on NAV reporting principles of FMC, cash balance can be adjusted by unsettled cash.
• Reconciliation of pending trades – pending trades reconciliation enables fund managers to verify FMC-reported pending trades against custody reports; Depowise supports reconciliation of payable and receivable accounts with transactions report, reconciliation of dividends with securities basic data and reconciliation of other payable/receivable amounts included in NAV; if needed, data from alternative source(s) could be added manually.
• FX reconciliation – FX reconciliation is similar to the price reconciliation functionality with the ability to set discrepancy limits in order to focus only on significant differences between FMC data and data from various other data sources.
• Fees reconciliation – automatic management fee reconciliation will be done using fund management fee rate and total assets under management provided by FMC; performance fee must be checked manually and the system will keep track of the manual check results executed by the user.
• Reconciliation of other assets and liabilities – FMC-reported information about other assets and liabilities is compared with data from custody or registrar, which could be entered into the system manually if needed.
• Unit price reconciliation – unit price reconciliation allows fund managers to check unit price calculation, using reconciled total NAV of fund and shares outstanding from TA.