Position reconciliation you work through in plain words with seven agents: every break explained from its source, every fix proved before anyone approves it
Every break explained from its source before the NAV is struck, every fix proved first.
See one case, screen by screen ↓Position and Cash Reconciliation is AI software for the middle office's daily position reconciliation and cash reconciliation. Seven agents match the books to custodian, prime broker and bank files, explain every break from the statement line in its original language, draft the correcting entry or custodian query, and replay the fund to prove the fix. An analyst asks about any break and proposes the fix; a different person approves, and the head of middle office signs the daily attestation.
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Position reconciliation is the first job of every middle office morning. The books (the investment book of record portfolio managers trade from, and the accounting book the NAV is struck from) are compared with what custodians, prime brokers, banks and the fund administrator say the funds hold, in positions and in cash. Automated reconciliation engines clear most of it. What is left is hundreds or thousands of cash and position breaks, and each one means opening a statement, an MT535 or MT950, a corporate-action notice or a broker email, often in the local market's language, to find out why.
Then the fix is keyed by hand and checked by eye, never replayed, so an entry booked to the wrong account or at the wrong rate clears one break and opens the next. Queries to sub-custodians sit in inboxes with no one watching their age. A break still open at the NAV run is a potential NAV error, UCITS depositaries monitor fund cash flows line by line, and the evidence for the fund auditor or a custody rule surprise examination is rebuilt months later from screenshots and email.
Estimated split of analyst-days in one week for a desk of four reconciliation analysts at a manager the size of the one in the story, by hand and with the agents. It is in line with the 50–75% target, not a measured result.
Seven agents match, explain, draft and prove every fix; analysts propose, a different person approves.
Quillfield Capital runs 46 funds in three umbrellas (a US trust, an Irish UCITS ICAV and a Luxembourg SICAV) against nine custodians, prime brokers and banks and one fund administrator. It is Monday, October 19, 2026. The reconciliation is as of Friday's close, and the cut-off for the NAV run is 10:30 a.m. ET. Here is the morning, screen by screen, in the working solution: what the people ask, what the agents answer, and who decides.
Daniel owns 418 open breaks in 13 funds. His Today screen opens with a greeting from the Explainer agent: the run finished at 6:58, with 1,214 breaks, 1,163 explained with a source and 51 with an owner. Beside it, every agent's line since 5:30 a.m.: 214 files and 3,862 SWIFT and ISO 20022 messages collected, one file late, one with a new layout. “Needs you” gives one next step each, the Japan Equity dividend fix first. He can ask about any fund, custodian or break, or tell the agents what to do.
“Agents read, match, explain, draft and prove. People propose, approve, send and sign.”
The Matcher agent paired 250,412 positions and 1,514 cash accounts (48,960 cash transactions) under rule set v3.8: 99.59% matched. The Explainer agent read what was left and grouped it into six causes, each sized by value with a confidence and a proposal: timing (612 breaks, $186.4M, 97%), trade not on custodian (99), corporate action not booked (148), FX rate (133), fees and charges (171) and unknown (51). The agents' own account of the night runs down the right, with a box to ask or instruct them.
Timing: “Carry forward: 598 settle today, matched at the custodian.”
Daniel opens “Corporate action not booked” (148 breaks, $41.7M, 93% confidence on average) and then the Japan Equity break. Quillfield Japan Equity Fund's yen cash at Ashcombe Custody, account 4410-778-JPY, is JPY 48,202,702 above the book: $322,168 at 149.62. The Tokyo sub-custody statement, page 2, line 14, shows the Kisaragi Precision dividend credited on Oct 16, 1,423,000 shares at JPY 40, less 15.315% withholding, in Japanese beside English. The issuer's notice also gives Oct 16; the data vendor recorded Oct 19, so the book still holds a receivable. Confidence 98%.
“The dividend was paid a day before the book expected it.”
The Fix agent drafts JE-1016-0417 (debit yen cash, credit the Kisaragi Precision dividend receivable, value date Oct 16), with a note to corporate actions and a challenge to the data vendor. The Proof agent copies the fund's book into a sandbox (3,912 positions, 14 cash accounts), applies the entry and re-runs the match: the break goes from JPY 48,202,702 to zero, no new breaks, NAV impact $0. The same event sits in Asia Pacific Equity and Global Equity Income; at 7:34 one click drafts and proves both.
The entry “goes to the accounting system only after approval.”
Daniel proposes the three entries with reason code CA-PAY, corporate action: pay date corrected. The screen tells him plainly: he is the maker, and a different person must approve. Ken Ito, controller for the Asia and global equity funds, opens the approval, reads the Japanese statement line and the replay, confirms he reviewed both, and approves all three at 7:52. The entries post, and Japan Equity no longer holds up sign-off.
“I reviewed the evidence and the Proof agent's replay for each entry.”
In Korea Equity, a KRW dividend repatriation was dealt by the custodian at 1,389.20; the book used 1,391.03. The Fix agent's first draft booked the conversion at the book rate, and in replay it left a USD 1,204.18 residual, so the Proof agent sent it back with the reason. The redraft at the custodian's dealt rate clears with no new break and waits for a checker in a batch of 22 FX entries.
Proof agent: “In replay it left a USD 1,204.18 residual, so I returned it to the Fix agent: the custodian dealt at 1,389.20.”
Brenford Logistics in Global Equity Income is 12,400 shares long at Northgate Trust, $299,388. The Explainer agent found no trade, corporate action or transfer to explain it and could not defend a cause above 80% confidence, so it said so and suggested Daniel as owner. He types “Check the securities lending reports”. It reads Northgate's lending returns file and finds a recalled loan of 12,400 shares returned Oct 16. The break moves to Timing, explained at 96%.
Explainer agent: “Northgate's lending returns file, row 412 … That is the whole difference. I moved it to Timing.”
The Fix agent drafted 96 queries, 23 of them in the custodian's own language with the English beside: Korean to Ashcombe for an instruction missing on a Seoyeon Biologics sale, Japanese for Hoshizora Logistics, Portuguese to Banco Itacolomi. Each names the fund, the trade and the break reference. Asked to “send them all”, the agent declines. Sofia, the team lead, reviews and approves them; the Chaser agent then runs the 24-hour reply clock.
Fix agent: “I can't do that: agents never approve, post, send or sign. I prepare the evidence and the draft; the button is yours.”
684 breaks are new today, 453 are 1–2 days old, 51 are 3–5 days and 23 are older than five. The Chaser agent escalated those 23 to Laura at 7:02 a.m., each with its owner and a status in plain words. Asked what to chase first, it names Banco Itacolomi: a custody fee query sent Oct 9, unanswered, BRL 7,162.55 above the agreed schedule, with a reminder drafted in Portuguese. Laura approves the reminder and gives the second approval on the $6.2 million Korea Equity rights posting.
Chaser agent: “Reminders go out only after a lead or Laura Pemberton approves them.”
A fund signs off only when nothing above its materiality limit (the lower of $250,000 or 0.5 bp of NAV) is unexplained or waiting for a fix. With Japan Equity's fix approved, the Evidence agent shows 13 funds ready and 33 held, each hold linked to the break behind it. Ken and Owen Clarke sign their own funds. By 10:15 every one of the 1,214 breaks has a cited cause or a named owner. Laura signs the daily attestation before the 10:30 cut-off, and the day's breaks, causes, fixes, replays, approvals and sign-offs export as one evidence pack.
Evidence agent: “A fund is held only by a break above its materiality limit that is unexplained or whose fix waits for approval.”
The same morning, seen by five of the people who carry it: what it looked like with statements, spreadsheets and email, and what it looks like now.
Seven agents match, explain, draft and prove every fix; analysts propose, a different person approves.
Collects custodian, prime broker, bank and fund administrator files, SWIFT and ISO 20022 messages and PDF statements in any language, and checks them against the expected-file calendar. This morning: 214 files from 10 sources, one late, and one with a new column it mapped for the administrator to confirm.
Pairs book records (the investment book of record and the accounting system) with custodian records under the firm's rules and tolerances by asset class.
Finds the cause of each break from statements, SWIFT narratives, issuer notices, the order blotter, securities lending reports and emails, in Japanese, Korean, Chinese, German, French, Portuguese and English, and groups breaks by cause with a confidence. It looks again when someone asks.
Drafts the correcting entry, the custodian query in the custodian's own language with the English beside, or the hand-off of a failing trade to settlements.
Replays the fund's reconciliation in a sandbox with each drafted fix and checks three things: the break goes to zero, no new break appears, and the NAV impact is what the entry says.
Runs the reply and cut-off clocks, ages breaks, sends approved reminders, reads custodian replies and escalates breaks over five days to the head of middle office with a plain status.
Checks which funds are ready to sign, and assembles the daily sign-off pack and the audit export: breaks, explanations, sources, fixes, replays, approvals and sign-offs.
Propose, approve, sign off, attest. The agents propose; a named person decides.
Every screen has the agents beside it. Ask about a fund, a custodian or a break, or tell the agents what to do. Every answer cites the statement line; anything that moves the book or leaves the desk waits for a person.
Why is Japan Equity cash off?
Quillfield Japan Equity's JPY cash at Ashcombe is JPY 48,202,702 higher than the book. The Tokyo statement shows the Kisaragi Precision dividend credited on Oct 16; the issuer's notice says Oct 16 too, but the data vendor said Oct 19, so the book still holds a receivable. The fix is drafted and proved.
What did the Proof agent check?
For each entry I copied the fund's book, applied the entry and re-ran the match under rule set v3.8. Three checks: the break goes to zero, no new break appears, and the NAV impact is what the entry says. 316 drafts passed first time; one failed (Korea Equity, book rate 1,391.03 against the custodian's 1,389.20) and went back to the Fix agent.
Check the securities lending reports
Northgate's lending returns file, row 412: a recalled loan of 12,400 Brenford Logistics shares returned Oct 16. That is the whole difference. I moved it to Timing.
Send them all for me
I can't do that: agents never approve, post, send or sign. I prepare the evidence and the draft; the button is yours, and the audit trail records who pressed it and why.
13 screens from the working solution, on its sample data. Pick one to see it large.
Tolerances, clocks and approval limits are settings. Only the operations administrator changes them, and rule, limit and agent changes also need the head of middle office.
| Setting | Default | Choose from |
|---|---|---|
| Cash tolerance | USD 1.00 or 0.5 bp of the account balance, whichever is larger | Changed by a proposal from a team lead, or an agent with a back-test, that the head of middle office approves |
| FX conversions (rule FX-04) | Proposed: custodian rate within 0.05% of the WM 4 p.m. London rate | Waiting for the head of middle office as rule set v3.9 · 20-day back-test: 2,214 breaks closed, 0 real errors missed |
| Equities, fixed income and listed derivatives | Quantity exact · par exact, accrued within USD 1.00 · contracts exact, margin within USD 5.00 | Rules by asset class, versioned (rule set v3.8) |
| Break cut-off before the NAV run | 10:30 a.m. ET | 10:00 · 10:30 · 11:00 a.m. ET |
| Custodian reply due | 24 hours | 12 · 24 · 48 hours |
| Reminder to the custodian | 20 hours, approved by a team lead | 16 · 20 · 24 hours |
| Escalation to the head of middle office | 5 days | 3 · 5 · 10 days |
| Materiality limit per fund | The lower of $250,000 or 0.5 bp of NAV | Holds a fund's sign-off while a break above it is unexplained or waiting for a fix |
Every figure is labelled: a target the solution is built to, an estimate, a typical published result, or a proven one.
“demo” = seen in the working solution, on its sample data · “target” = the design goal, measured in the live solution · “estimated” = our estimate · “typical” = published figures (a reconciliation vendor's October 2026 report of production trials at 12 banks and financial institutions: an average 76% less manual post-trade reconciliation work, the vendor's own figure; a Datos Insights survey of 300 senior capital-markets technology and operations executives, sponsored by a reconciliation software vendor: 73% on data sourcing and integration; the SEC's Investment Company Act Rule 2a-5 adopting release: the $0.01 a share and 0.5% of NAV benchmark). Rules named on this page: SEC Rule 206(4)-2 (custody rule); Commission Delegated Regulation (EU) 2016/438, Article 10 (UCITS depositary cash-flow monitoring). Quillfield Capital and the people, funds, custodians, banks, issuers and accounts named on this page are fictional: characters and sample data in the working solution.
Position and Cash Reconciliation is AI software for the middle office's daily position reconciliation and cash reconciliation. Seven agents match the books to custodian, prime broker and bank files, explain every break from the statement line in its original language, draft the correcting entry or custodian query, and replay the fund to prove the fix. An analyst asks about any break and proposes the fix; a different person approves, and the head of middle office signs the daily attestation.
A break is a difference between the book and the custodian on a position or a cash balance that the matching rules cannot clear. In the working solution the Explainer agent sorts them into timing (booked on trade date, settling later), trade not on custodian, corporate action not booked, FX rate, fees and charges, and unknown. Each break carries the statement line that explains it, so break management starts from six causes, not 1,214 rows.
The Explainer agent reads custodian statements, SWIFT narratives, issuer notices, the order blotter, securities lending reports and emails, in Japanese, Korean, Chinese, German, French and Portuguese as well as English, and gives each break a one-line cause with the exact passage. Below 80% confidence it says the break needs a person and suggests an owner. An analyst can ask it to look somewhere else, as Daniel did when a Brenford Logistics break turned out to be a lending recall.
People stay in control. The agents draft and prove; they never post an entry, send a message, widen a tolerance or sign, and they say so when asked. An analyst proposes, a different team lead or fund controller approves every posting, a team lead approves every custodian query, and postings over $5 million also need the head of middle office.
Before the NAV run, each fund's controller signs it off only when no break above its materiality limit (the lower of $250,000 or 0.5 bp of NAV) is unexplained or waiting for a fix. The head of middle office signs the daily attestation once all funds are signed. The target is every break with a cited cause or a named owner by the cut-off.
Yes. The Matcher agent pairs records from the investment book of record and the accounting system with custodian SWIFT and ISO 20022 messages, local PDF statements, prime broker position and cash files, bank statements and the fund administrator's accounting positions. Prime broker reconciliation is part of the same morning run: the position and cash files from the prime brokers, Halvorsen Prime and Merriton Securities, are matched beside the custodians'. In the working solution that is one middle office reconciliation across nine custodians, prime brokers and banks, one administrator and 41 currencies.
An append-only audit trail of who did what, when, why and on which evidence, for people and agents, each entry fingerprinted and kept 7 years. The day's custody reconciliation (breaks, causes, sources, fixes, replays, approvals and sign-offs) exports as one evidence pack for the NAV file, the fund auditor and a custody rule examination.
The Agentic Solution Engine builds and deploys it from your requirements and documents (your reconciliation procedure, matching rules and a sample of past custodian files), and it goes live once every quality gate has passed. First-time setup connects the sources, maps your accounts, loads your rules and roles, and back-tests 20 days before go-live.
Target 20–30% fewer fails, each fix cited and checked before the market’s cut-off.
1-min demoStandard Settlement Instruction ManagementEvery SSI change proven at the source and called back before a dollar moves.
1-min demoCorporate Actions ProcessingEvery event one cited golden record, every election made before the custodian’s cut-off.
1-min demoWe'll run Position and Cash Reconciliation on a few mornings of your own custodian files and books.