The Investment Book of Record (IBOR)

Mal Cullen, Head of the Americas and Eagle ACCESS℠


As the investment management landscape has become more complicated and sophisticated, the need for the front-office to have access to timely and accurate data has become increasingly important. This has led to a resurgence of interest in technology that can produce an Investment Book of Record (IBOR); a set of investment data that is maintained with the primary purpose of supplying timely and accurate data to the front office of an investment manager to support the investment decision process.

Based on our experience, large asset managers typically have multiple accounting systems, which makes capturing IBOR easier said than done. Virtually any firm that needs to look at investment decisions across multiple views – for example by asset class, exposure, strategy or geography – will need to consolidate and enrich data across multiple platforms. The trend towards outsourcing and externally managed assets adds a further layer of complexity in the consolidation of assets into one system that is required to deliver an IBOR.

We believe a successful IBOR delivery has enterprise data management (EDM) at its core. Trying to force the complex web of accounting and trading platforms into a single accounting platform to achieve IBOR will most likely result in data ending up in the wrong place or applications being used for purposes they have not been designed for.

Eagle employs two approaches to achieve IBOR. The first, which Eagle has been at the forefront of developing, is the data-centric approach. It’s an approach that permits a single, consolidated view of all assets with the level of detail required with data loaded directly from multiple best-of-breed systems. This single source of data helps firms make investment business decisions providing access to the underlying, granular details they need. Furthermore, because data is not being created there is less need for reconciliation creating more accurate data available more immediately. If a firm has internally and externally managed assets, Eagle can get to an IBOR without reprocessing the data.

The second, the accounting-centric approach, requires the reprocessing of all investment data into an accounting system to create a single consolidated view of assets. With Eagle’s accounting system, which is coupled with a robust data management solution, we can bring in any reference data, pricing or corporate action information continuously independent of the accounting data. When a financial event impacting IBOR – such as a trade, pending corporate action or what-if scenario– takes place, we can process that into our accounting platform with a near real-time impact on the IBOR.

Because we offer the flexibility of either approach, our solutions do not require clients to have an independent IBOR engine.

Eagle provides enterprise-wide IBOR with multiple systems coming together rather than an asset-class view. This results in an investment decision-making IBOR that is consolidated and enterprise-wide.

Ultimately, Eagle can help an entire organization use a single, qualified version of the truth, which is a supportable, sustainable solution, balancing current and future technology requirements with new regulatory- or client-driven demands.

 


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