In order to complete an accurate NAV, the cash has to be reconciled to all brokers and custodians. Unreconciled items should be escalated and resolved in a timely manner. If the cash is not reconciled correctly, this could result in NAV errors that could cost the administrator in both fines and reputation.
Automating this process removes the risk of minor error, which reduces the risk of NAV errors. Automation also allows for the day count and basis point impact to be monitored and with accurate and live MIS, management are aware of the breaks to carry the greatest risk.
With automated data feeds, auto-completion, data enrichment, smart matching, MIS and live chat support a cash rec on Fund Recs can be completed with little or no manual intervention. This then allows the user to concentrate on clearing the breaks and adding more value, rather than spending time correlating and manipulating data.
Let's take a look at a sample fund. For each fund there are multiple file types: admin transactions, admin balances, broker transactions and broker balances. Files are received automatically via SFTP or can be manually uploaded. The Cash Rec summary displayed at the bottom of our screen gives us a heads up before we even go into the rec.
When we click on options, we can set our rec as day one, which is useful for testing, open rec if changes are needed, view matches and re-run our auto match rules with full search functionality and there's a full audit trail available.
When we click into the Cash Rec we were presented with a summary table. This table tells us exactly what we need to focus on. Namely, the breaks, which are highlighted in orange. All of the auto match data's hidden from view until we need it.
In this example, this first break here is simply rounding. When we click into it, we can clear it by clicking on the spanner. Alternatively, an admin user could set a tolerance to auto-clear this. Next, we'll take a look at the second break. When we click view, we can see it's made up of two transactions. We select both of them and we submit them as breaks. We must give a reason. In this instance, "Not settle at admin".
We can add any backup we wish by clicking on the icon here. And it's only at this point where all of the breaks moves off that we can now submit for approval.
All uploaded files can be found here. This makes it very easy to access all import files where required. For fund setup, this can be accessed at any time by admin users and amended as required.
Fund Recs has a powerful rules engine that optimizes the matching process. These rules can be refined to whatever level of detail is required. The Cash Rec SFTP setup is a point and click exercise where the user creates folders for the automated processing of the files.
At Fund Recs, we can handle any format type from PDF to SWIFT, turning unstructured data from this, into this. Once everything has been set up and tested in our UAT, we can export to the live environment. You can get help at any time through our live in-app support.