Posts by: Richard Mailhos

PBOR: Aligning the Middle Office to Meet Escalating Front-Office Demands

Rich Mailhos, Product Manager, Performance Measurement

Rich Mailhos recaps a recent webcast featuring Eagle clients TIAA-CREF and Fort Washington Investment Advisors on the far-reaching value of PBOR

Those with graying hair may still remember the old days of performance reporting and the nascent technology that supported these efforts, marked by dedicated offices housing DEC VAX machines and rows of computers running Fortran code. A holdover of this era is the continued reliance on monthly custodial data and spreadsheets, even as data volumes grow and the various forms of data multiply. Those in the middle office tasked with performance measurement are all too familiar with the problems posed in trying to manage siloed data through Excel and in a way that meets the escalating demands of the front office. As these challenges reach critical mass, asset managers are increasingly turning to a Performance Book of Record (PBOR), a term Eagle introduced to the market in early 2015.

Such was the subject of the webcast I recently participated in that was hosted by WatersTechnology. Also participating in the discussion were Eagle clients, TIAA-CREF’s Senior Director of Performance and Reporting, Nancy Carola, and Fort Washington Investment Advisors’ Manager of Performance and Reconciliation, Tom Anderson. WatersTechnology Editor in Chief, Victor Anderson, served as moderator. Read More…

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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Performance Book of Record (PBOR): A new approach to measuring performance, exposure and risk

Rich Mailhos, Product Manager, Eagle Investment Systems

pbor_coverMost investment managers have a range of spreadsheets or desktop applications that may ‘tactically’ calculate performance and carry out risk analysis for specific asset classes. While there will always be a place for these discrete quantitative tools, increasingly firms are looking for an enhanced, comprehensive view of performance that accurately captures the investment activity across the entire enterprise. This trend, which is being driven by growing internal needs of global asset managers, more exhaustive regulatory requirements, new client demands and the ongoing drive for a competitive advantage, will only pick up more steam in 2015 and beyond.

To help clients address these demands, we released a new white paper that outlines how a data-centric approach can enable firms to achieve a ‘true’ total view of performance results and exposures, as well as other enriched information, across all business lines and asset classes to effectively create a Performance Book of Record or PBOR.

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Top Two Reasons You Should Consider Economic Exposure-Based Performance Analysis

By Richard Mailhos, Product Manager, Eagle Investment Systems

What is the exposure of your investment portfolio? Is it the daily priced market value of each position in your portfolio? Or is it the total economic exposure of all positions? Economic exposure is the notional market value of all positions, providing a more accurate picture of leverage in a portfolio. Notional values are often ignored or simply not supported by most custodians and accounting systems. At Eagle, we produce notional values through our enrichment engine as a value-add to accounting processes. Here we list some key reasons you may be missing the full picture if you aren’t looking at notional market value:

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