Trust but verify

Often fund managers delegate fund administration and the calculation of the official NAV to an administrator. Regardless, it is the fund manager that is ultimately responsible to investors for the accuracy of NAV calculations. Managers that are solely reliant on their 3rd party administrator have difficulties with confirming the validity of the information received.

Depowise Full NAV Reconciliaton provides Fund managers with an independent tool to verify administrator’s results.

Automating Reconciliations

The fund manager’s back office can verify Investment Book of Record (IBOR) they receive from administrators against the official data from custodians, banks and market data providers. The reconciliation of assets, cash balances, instrument prices, and FX rates can be executed in an efficient manner. Our solution is capable of automatically matching ~99% of your data, leaving only a handful of items for your back office to review. After the implementation of Depowise Full NAV Reconciliaton, fund managers will be able to verify administrator work, identify problems early and fix discrepancies in due course.

Net Asset Value (NAV) Reconciliation Tool for Funds

Depowise covers reconciliation of the following NAV components:

  • Holdings reconciliation – holding-by-holding comparison of the positions for different parties involed. 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 the valuation information with official market data, users are able to pre-set the limit of discrepancy for 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 price is within y% of market price)
    • price has to be between low and high of the day
  • Cash reconciliation – Depowise compares cash balances of various accounts in multiple currencies.
  • Reconciliation of pending trades – 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 data from various 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 – 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 the fund manager to check unit price calculation, using reconciled total NAV of fund and shares outstanding from TA.

3-Step Personal Intro

Wish to see the benefits of using Depowise with your own data?

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