Electra Information Systems (Electra), a provider of software solutions for the asset management industry, has released Electra Reconciliation Dynamic Snapshot, a real time month-end reconciliation feature.

Gabriel Khanan, director of consulting services at Electra Information Systems, said this component gives users the ability to re-reconcile a final month-end reconciliation incorporating real-time transaction and cash balance changes.

“The Dynamic Snapshot helps the users automatically reconcile their month-end, which includes all of the new adjustments. Without this feature the users have to rely on manually making adjustments to their reconciliation. It helps the users to eliminate the manual intervention of month-end reconciliation,” he said.

The product is used by money managers, hedge funds and organizations that require a reconciliation between multiple sources in 12 countries worldwide including South Africa.

Money managers typically close out their month-end processing during the first two weeks of the month following the statement period.

While reconciliation of positions and transactions may be a daily activity, month-end reconciliation is of particular importance because the correct calculation of net asset value can only occur once all information has been obtained and recorded.

It is common for additional items to be reported by prime brokers and custodians after month-end and the Dynamic Snapshot features built-in logic to identify these back-dated transactions and apply them to the previous period’s reconciliation.

Due to items such as dividends and interest accruals, which may apply to a previous period, it is important that managers are able to back-date them in their accounting system.

This new functionality supports compliance and audit requirements, as the manager would need to detail the back-dated transactions and show how they affect the month-end reconciliation for the previous period.

With the new functionality, late-reported items can be automatically integrated into the reconciliation record and net asset value calculations can be accurately reflected, both in client statements and in the manager reconciliation.

Ian Danic, executive director at Electra, said: “We are confident that our comprehensive portfolio of solutions, which is now further enhanced with the addition of Dynamic Snapshot, will empower hedge funds and other buy-side constituents to conquer their back office challenges, which are often a result of legacy or DIY systems.”