Automated reconciliations lead to greater efficiency and internal control

With volumes and complexity increasing, FundBPO has automated its stock reconciliation processes to increase risk control and give our clients better insight and control over their holdings.

FundBPO now manages the reconciliation control requirements of over 100 funds with a value of approximately USD $40 billion. This equates to transaction volumes of more than 11,000 per day.

Historically, reconciliations were undertaken manually through a variety of processes. As volumes have increased, asset classes have expanded and controls have tightened, we have moved to automate and standardise our reconciliation functions.

Last year FundBPO selected Gresham Computing’s Clareti Transaction Control (CTC) system to automate the intersystem and stock reconciliations we handle on behalf of our clients. CTC has now been implemented across our investment administration processes as a single-enterprise solution, with integration across our IRESS, Hi-Portfolio and Hi-Trust platforms.

Benefits to our reconciliation processing include:

  1. Stricter controls on how data is matched, reducing user error
  2. Improved client on-boarding due to easier reconciliation set-up with our major custodian clients

Post-CTC implementation, reconciliations are now handled on an exceptions basis.  The majority of transactions are matched straight-through, with no manual intervention. This means the focus of our investment administrators has shifted to investigating anything irregular rather than time-consuming data matching. Any errors can be identified and rectified from the start (T+0), preventing potential discrepancies or loss events later in the transaction lifecycle. Our exception reports have halved since automating reconciliations. Our SWIFT processing capability is also greatly enhanced.

The end result is optimised processing efficiency and reduced financial transaction loss events for all parties involved. The next phase of the project is to extend CTC to investment administration’s cash reconciliations as well as application and redemption bank reconciliations in unit registry.

More information

All of FundBPO’s investment administration clients now benefit from the greater efficiency and control of automated reconciling of their stock holdings. If your current reconciliations program involves manual processes, inevitably adding unnecessary risk and cost to your funds’ administration, we would be happy to discuss possible options for streamlining your operations. For more information, please contact us.


This article is not intended to be financial advice and is of a general nature only that does not take into account your individual objectives, financial situation or needs. While all efforts have been made to ensure the information contained in this article is accurate, errors may occur.

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