By Todd Sloan
Investment managers maintain multiple copies of the same data throughout their post-trade environment often relying on manual activities to distribute and reconcile internal data movement. As more investment managers embrace the use of a central data repository to store important investment accounting and client-related information, it is increasingly important for reconciliation to play a key role to ensure all related systems across the front, middle and back offices are fully synchronized using the same golden source data. By doing so, firms can eliminate or significantly reduce the risks associated with delivering inaccurate or outdated information to downstream systems.
There are many challenges when distributing data between the golden source and the systems that rely on this information.
reconciliation, investment operations, investment management, investment accounting, golden source data, salesforce, corporate actions data
A Q&A discussion with Electra’s SVP of Client Services, Paul Chung
How can buy-side investment managers best leverage technology to build a smart and collaborative reconciliation function in the face of unprecedented market volatility and volume? Electra’s Paul Chung explains the increasing importance of reconciliation to reduce risk and improve overall operations, and the technology and outsourcing capabilities that are positioning buy-side firms to conquer the next big operations challenges.
Investment Managers, investment operations, buy-side, investment management, post-trade operations, data aggregation, reconciliation technology, smart reconciliation, outsourcing
By Paul Chung and Jennifer McMackin
In the strains of operating remotely during an uncertain economic environment coupled with high market volatility and more stringent regulations, it becomes even more critical for investment operations managers to have automated and streamlined processes. High volumes of transactions and data is the new norm. The front lines of the industry have received plenty of expert advice to help firms address ongoing concerns of endowments, pension plans and other clients.
But how much attention has been paid to the back office and the important role it plays to support client interactions while also mitigating operational and compliance risk? How resilient will firms’ post-trade operations remain in remote work environments? Should firms outsource key parts of their reconciliation process to reduce the risk of multiple points of failure?
In recent years, and especially now, the asset management community is adopting Electra’s managed services for reconciliation and data aggregation. Here’s why.
investment operations, buy-side, best reconciliation solution, investment management, managed services, post-trade operations, data aggregation, back office, reconciliation services
By Jennifer McMackin
Many investment managers’ trade reconciliation and other post-trade processes are still burdened with the inefficiencies of collecting, normalizing and validating data from third-party sources. A typical investment management firm receives numerous data feeds on securities, positions and transactions. This creates more work for operations teams to manage data and maintain provider links, while causing workflow and settlement risk and delays due to errors and manual effort.
Is this the best way to acquire and aggregate external data, and utilize your staff’s time and resources? Is your firm potentially missing out on opportunities to optimize processes and spend more time on strategic areas? Let’s explore the two main data aggregation challenges investment managers face and what they can do about it.
Data Reconciliation, investment operations, investment management, post-trade operations, data aggregation, back office, Electra Data
By Todd Sloan
Over the last few years, our clients across the investment management community have seen a heightened focus on operational due diligence driven by a surge of institutional money into hedge funds. In addition, several fraud cases have caused significant losses for even the savviest investors. Regulators are also shining a bright light on hedge funds as they have gained popularity across both retail investors and pension plans. Having the right technology and third-party relationships in place is more important than ever before.
reconciliation, Hedge Funds, investment operations, investment management, due diligence, operational due diligence, data aggregation, operational risk, back office
By Doug Fritz
Client fee billing, invoicing and revenue management in the buy-side investment management community can become a significant source of risk and cost without an efficient workflow and audit process to manage review and approval checkpoints. Investment managers must be able to build and retain client trust as well as satisfy auditors. In today’s competitive and challenging market environment, the need for automated, accurate and timely invoicing is greater than ever.
investment management, fee billing workflows, client invoicing, client fee billing, fee billing, chief financial officer, CFO, four eyes, revenue management
By Todd Sloan
Practical artificial intelligence (AI) use cases and applications in buy-side reconciliation and post-trade operations are prevalent, yet many have yielded uneven and questionable results. AI can go only so far to autonomously solve the operational problems investment management firms face. The solution? An intelligence augmentation (IA) approach to AI.
Electra Blog Posts, Buy-Side Technology, Operations Management, Electra Information Systems, reconciliation, Hedge Funds, Investment Firms, Investment Managers, machine learning, buy-side, artificial intelligence, post-trade operations, intelligence augmentation
By Scott Rhodes and Todd Sloan
When we think about the transition from office worker to home worker, we think first about IT security: “lock it down!” Unfortunately, that mantra misses the big picture. McKinsey & Company says the most valuable asset of a firm is its people, and it is the operations-intensive environment of investment management reconciliation that underscores this sentiment. The role of skilled people and automation at the center of mission-critical, post-trade processes is apparent from both the standpoint of security and business continuity to eliminate single or multiple points of failure. That means not only protecting the business from being harmed by others; it also means ensuring business operations remain robust and efficient.
reconciliation, investment operations, buy-side, COVID-19, investment management, managed services, remote workers
By Todd Sloan
Failed trades occur when the seller or the buyer does not meet their trading obligations on or before settlement date. Whenever this happens, the party who failed to deliver cash or securities on their side of the trade could face financial losses, fines and damage to their reputation on the street. Failing to meet their trading obligations may result in rating agencies downgrading their credit score, limiting their ability to shop around for the best counterparty relationships, and paying higher penalties under new T+2 settlement regimes.
While automation can play an important role, many investment operations managers are still dealing with errors and delays that lead to higher operational costs and risks. What is the solution? First, let’s take a look at the reasons why trades fail and their effects on the health of an investment management firm.
reconciliation, failed trades, exception management, trade fails, settlement, investment management