SERVICES
Reconciliation that turns breaks into owned, aged and resolved exceptions.
Match trades, positions and cash across internal books and appointed institutions—and make every unresolved difference visible.
Overview
Reconciliation compares independent records of the same economic activity to identify missing, duplicated or inconsistent trades, positions, cash and balances. The control value comes from classification, ownership, ageing and resolution—not simply a match percentage.
It is foundational to hedge-fund and asset-manager operations and feeds NAV, treasury, collateral, reporting and oversight. It also matters in private credit and multi-bank family-office environments.
Why it matters
Unresolved breaks propagate into P&L, NAV, liquidity and reporting. Spreadsheet reconciliations often lack ownership, materiality and reusable root-cause logic.
Common operating challenges
- Different formats/identifiers across PBs, custodians and banks.
- Timing differences create large false-break populations.
- No materiality-based prioritisation.
- Breaks remain open without owner/SLA.
- Recurring root causes are investigated repeatedly.
What we deliver
| Capability | What it covers |
|---|---|
| Trade reconciliation | Match internal/executed trades to broker/custodian records. |
| Position reconciliation | Compare holdings by instrument and account. |
| Cash reconciliation | Compare internal/expected cash to bank/provider balances. |
| Break classification | Identify timing, mapping, economic or missing-record causes. |
| Ownership & ageing | Assign responsibility and monitor SLA. |
| Root-cause improvement | Convert recurring breaks into approved mapping or process fixes. |
Our role can be configured around a defined operating mandate: a recurring managed service, a technology-enabled client workflow, or a co-sourced model in which execution and review are split between Kelton, the client and appointed providers.
Inputs, workflow and outputs
Typical inputs
- OMS/PMS data
- PB / custodian files
- Bank statements
- Administrator books
- Security master / identifiers
- Prior exception rules
Controlled workflow
| Step | Activity | What happens |
|---|---|---|
| 1 | Normalise | Map formats, identifiers, accounts, currencies and dates. |
| 2 | Match | Apply deterministic approved matching logic. |
| 3 | Classify | Group unresolved differences by cause and materiality. |
| 4 | Assign | Route to Kelton/client/provider owner. |
| 5 | Resolve & evidence | Record correction or explanation. |
| 6 | Improve | Update mappings/rules after approved root-cause analysis. |
Typical outputs
- Daily reconciliation dashboard
- Break queue with owner/age/materiality
- Cash / position / trade reconciliations
- SLA / aged-break report
- Root-cause analytics
- Resolution evidence
Controls and review
The workflow is designed so that automation does not obscure responsibility. Routine processing can be standardised; exceptions, material judgements and formal approvals remain visible and attributable.
- Independent-source comparison.
- Tolerance/materiality rules.
- No silent write-off of breaks.
- Maker/checker for rule changes.
- Full history of resolution and mapping updates.
Responsibility boundary
We support reconciliation and exception management. The underlying books, custody records and formal provider responsibilities remain with their owners.
Technology & expertise
Our operating model combines specialist knowledge with controlled technology. Domain experts define the rules, review logic and exception criteria; the technology layer makes the workflow repeatable, traceable and scalable.
Technology
- Multi-format data ingestion.
- Identifier/account mapping.
- Rule-based matching.
- AI-assisted break classification with human confirmation.
- Workflow/SLA and root-cause analytics.
Expertise
- Middle-office reconciliations.
- Data mapping across PB/custodian/admin files.
- Materiality/escalation design.
- Operational root-cause analysis.
Expert knowledge is converted into controlled rules, SOPs, checklists, validation tests and exception criteria so that the operating standard is embedded in the workflow rather than dependent on one individual.
Delivery models
| Model | How it works |
|---|---|
| Managed Operations | We execute the agreed recurring workflow. Client and appointed-provider approvals remain explicit. |
| Technology Enablement | We implement the data, workflow and control layer for the client team to operate. |
| Hybrid / Co-sourced | Execution and review are shared through a documented responsibility and escalation model. |
| Transition & Implementation | We mobilise the workflow during a launch, provider change or target-operating-model transition. |
Frequently asked questions
What should a reconciliation service explain?
Sources, matching logic, break taxonomy, ownership, ageing, escalation and evidence—not just “automated matching”.
Can AI resolve breaks?
It can classify breaks and propose explanations, but material corrections follow approved rules and review.
Does it duplicate the administrator?
It can be a focused manager-side control or integrated operations layer rather than a duplicate of every administrator process.
Discuss Reconciliation
Start with one workflow, one operating issue or one provider transition. We will map the current process, responsibility boundaries, required data and a practical first engagement.