The Challenges and Solutions for the Production of an IBOR

Mal Cullen, Head of the Americas and Eagle ACCESS℠


IBOR Whitepaper

Earlier this week, I had the privilege of sitting on a panel at a breakfast meeting in New York hosted by Waters Technology to discuss best practices and guidelines for the development of an effective IBOR capability.

IBOR has become an increasingly valuable tool for investment managers in recent years as they face a burgeoning volume of information and the need to meet new financial regulations. However, inflexible portfolio management infrastructures are hindering many firms’ abilities to adapt to these organizational and market changes with the effective and efficient production of an IBOR.

It’s an issue we are particularly interested in and we recently sponsored a white paper to help quantify the challenges faced by investment managers. As part of the study, A Data-Centric Approach to Portfolio Management, a survey of senior executives at investment management companies and asset managers revealed that a quarter are not satisfied with their current portfolio management solution when it comes to sourcing, organizing and managing data.

This is hardly surprising when more than half of organizations are using multiple disparate systems to compile an IBOR, using anywhere between two and eight systems to complete the process.

Many of these firms may have inherited numerous systems through acquisitions or added new systems as the have expanded their products or entered new geographies, leaving the underlying information in silos. This can make the production of an accurate IBOR hugely time-consuming and fraught with difficulty. Such is the issue that nearly one-in-three data managers surveyed conclude the effective management of the data required to produce an IBOR remains out of reach for their organization.

Firms in this position need to consider adopting a data-centric approach to their portfolio management and IBOR, where the investment data for all assets is available through a single, centralized database.

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