Portfolio Reconciliation

Advisors and clients need to trust the numbers on a portfolio. A position snapshot records, for one trading account and instrument as of a date, the quantity held, the cost basis, the mark price and the custodian’s snapshot ID. A portfolio snapshot brings a household’s position together with the as-of date, the custodian reference, the market value, the related instruction and order and the instrument concerned.

A portfolio snapshot is prepared as Draft, Submitted for approval, then Approved or Rejected by the Operations Analyst, who records the decision date. Approved snapshots move to Completed once the reconciliation is closed.

• Positions from the custodian. Position snapshots are loaded from the custodian feed as of a date, with the custodian’s own snapshot ID.
• Household snapshot complete before approval. A snapshot cannot be approved without the household, as-of date, market value and custodian reference.
• Approval by operations. The Operations Analyst approves the reconciliation, and the approval is kept with a receipt.

Agree how households are named and which trading accounts belong to each. Decide how often position snapshots are loaded and at what time of day. Agree the tolerance for differences between the platform and the custodian, and who approves reconciliations. Decide how values in other currencies are translated for reporting.

At month end, the Portfolio Accountant loads position snapshots for the Alvarez household’s two custodian accounts. The ETF bought earlier in the month shows 400 shares at a mark price of $518.10, matching the filled order. She prepares a portfolio snapshot with the as-of date, custodian reference and market value and submits it.

The Operations Analyst checks the snapshot against the custodian statement. In the second account, a dividend reinvestment shows two more shares on the statement than in the loaded position. The analyst rejects the snapshot with that reason. The accountant reloads the position after the custodian confirms the reinvestment and submits the new version, which the analyst approves with the decision date recorded.

• Portfolio Snapshots Awaiting Approval — Submitted snapshots with household, as-of date, custodian reference and market value.
• Portfolio Reconciliation Board — Every snapshot grouped by status.
• Position Snapshots — Positions by account and instrument with quantity, cost basis and mark price.

• Custodian portfolio reconciliation: Load positions, prepare the snapshot and approve it.
• Order to fill: See where position snapshots support order authorization.

Map your custodian accounts before the first load.