Monthly Archives: November 2015

PBOR – One Year On

A year after the concept of the Performance Book of Record was introduced, Rich Mailhos takes a look at its role in the global asset management industry now and in the future

Rich Mailhos, Product Manager, Eagle Performance


The Emergence of PBOR
It is nearly a year since the concept of a Performance Book of Record (PBOR) emerged from a research study we conducted in conjunction with WatersTechnology. The study highlighted the shortcomings among investment management companies when it comes to generating accurate and transparent performance and risk analysis across the enterprise and the need for a specialized solution to address these challenges.

Only 21% of the companies surveyed were very satisfied with their ability to access timely, accurate and relevant performance data with the overwhelming majority (72%) having to use multiple systems to aggregate their investment and performance data for management and client reporting.

The study started an important industry dialogue about the growing need for enterprise-level performance and risk reporting which has continued and intensified over the course of the year. It also appears to have, by reference, helped crystalize the industry’s thinking about the Investment Book of Record (IBOR), when it is appropriate and what its limitations are. Rather than a panacea, IBOR is one part of a solution to a more fundamental set of challenges facing the industry.

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Absorbing Complexity:
Build the Moat

Investment managers and financial services firms are confronting a rapidly changing competitive landscape and their infrastructure can be a critical gating item in their pursuit of new opportunities

Mal Cullen, Chief Executive Officer


Clayton Christensen, in his seminal book The Innovator’s Dilemma, catalogued the various patterns of innovation that can occur within a sector, establishing a spectrum that begins with the repackaging of known technologies and ends with truly disruptive innovation that can turn an industry on its head, such as Uber or Napster. While the financial services sector has not faced the latter scenario in the past quarter century, the rapid growth of the alternatives space, coupled with new advances that have commoditized what were once considered exclusive and esoteric strategies, means that investment managers today are only now being faced with the question that Christensen so poignantly addressed in his book: How do you introduce new products and capabilities without being bound to servicing the customary needs of existing clients. The difference, at least for most financial institutions, is that, it is their existing clients who are calling for disruption.

Traditional asset managers realize that product innovation has become more critical than perhaps ever before. As McKinsey identified in a December, 2014 research paper (“The $64 trillion question: convergence in asset management”), certain secular factors are driving asset managers to build out their product set to meet the heightened and more expansive demands of their clients. The McKinsey research cited that a bifurcation is occurring between large and small institutional investors, with each group approaching their strategies differently to fulfill diverging portfolio needs. Whereas smaller institutions want access to a broad range of brand-name managers with product depth and perceived stability, larger institutions are migrating to more cutting-edge portfolio construction to build new capabilities and embrace “risk-factor-based methodologies.”

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Fixed Income in an Evolving Europe: Can You Measure the Permanent Impact of the Eurozone Crisis?

João Sousa Dias, Solutions Specialist, Eagle Investment Systems


Financial and political events since the onset of the financial crisis in 2008 have redefined sovereign risk in the eurozone. The disruption and its lasting impact has left fixed income investors searching for answers when it comes to measuring their “true” European exposure and determining the appropriate government yield curves to benchmark against. Many existing portfolio analysis and performance attribution platforms struggle to accommodate the new paradigm, which requires a new approach to fixed income performance reporting.

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