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STP’s Proprietary Dashboards Deliver Reconciliation Transparency.

May 15th, 2016
Damon Wioskowski

EXTON- Accurate and timely reconciliations between investment manager and custodian records are the foundation of sound investment accounting records and accurate performance measurement. Swift identification and resolution of all exceptions is critical. Reconciliation gaps caused by inefficient processes not only leave investment managers exposed to a multitude of operational risks, but also erode the accuracy of stated performance returns. To mitigate these risks, STP Investment Services utilizes a highly automated, exceptions based reconciliation application that allows us to quickly identify and process required global reconciliation adjustments. When combined with our experienced operations support staff and proprietary interactive dashboards, we are able to deliver real time, detailed reconciliation results to our clients.

STP Investment Services performs full reconciliations at regular intervals for all client accounts, ensuring up to date and accurate accounting records. Full reconciliations include comparisons of security identifiers, quantity, prices, market values, transactions and cash balances. Properly reconciled transactions and cash balances allow an investment manager to maintain adequate liquidity levels and avoid overdraft fees. A complete reconciliation of positions can reduce the potential of trade fails and ensure accurate corporate actions processing. With increased scrutiny on the performance of institutional portfolio managers, it is more important than ever to have properly reconciled accounting records to support a manager’s stated returns.

Investment managers that rely on manual reconciliation practices do not have sufficient controls in place to mitigate operational risks. Their staff will spend more time completing the reconciliation and less time researching and correcting exceptions. Scaling a manual reconciliation process across new accounts can be difficult and often requires a significant upfront investment of time. Automating a reconciliation can be difficult and expensive. Standardizing data, scheduling automating data delivery and defining matching rule sets requires a certain level of technical expertise. The difficulties of performing full reconciliations is one reason many investment managers decide to outsource their back office operations.

STP Investment Services has developed a series of interactive, web-based reconciliation dashboards that enable our clients to access real time reconciliation statistics via our client portal. Our clients can see the status of all of their account reconciliations at a glance, or they can drill into a particular account and see details pertaining to a specific break. This ability to quickly navigate from a macro view to a micro view offers tremendous value for our clients.

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