Performance Book of Record (PBOR)
Walk into any investment management firm, large or small, and you’ll generally find a host of spreadsheets, desktop applications and performance measurement tools that “tactically” calculate and analyze performance and risk. Usually these “systems” (such as they are) deal effectively with one specific asset class. But even taken together they fail to provide a view into all assets under management, firm-wide investment performance, leverage, exposure and risk. Factor in greater levels of complexity, increased regulatory pressure and stricter internal compliance—not to mention the imperatives of speed and accuracy—and the need for a “true” total view, achieved with maximum efficiency, is clear.
The numbers tell the story.
In a recent Waters Technology survey of senior performance, data management and financial technology decision-makers, 54% of respondents said they were not able to access a single consolidated view of investment performance data. In day-to-day terms, more than half of all CIOs, investment committee members, portfolio managers and operational teams are cobbling together disparate pieces of information in an attempt to meet performance reporting goals. Not only is this process astoundingly inefficient, but also the resulting performance analyses may differ depending on the audience or client. Increased operational risks and costs, plus potential penalties for misreported information, are the consequences.
The survey revealed even starker scenarios of inefficiency and risk. For instance, 72% of respondents said that they needed to aggregate data across multiple systems to produce management- and client-level reports. Sixty percent of them use two or more systems to calculate performance across different client types. Surprisingly, 9% of firms use 10 or more systems.
It’s not surprising that only one in five (21%) survey respondents are very satisfied with his or her organization’s ability to access timely, accurate and relevant performance data. Clearly, many firms need to produce a consolidated performance book, yet few are able to do so efficiently, if at all.
Why a PBOR?
There will always be a place for asset-specific quant tools to meet certain tactical analysis needs. But the landscape is changing. The investment management industry is buzzing as firms are recognizing the need for enhanced, comprehensive Investment Book of Record (IBOR) solutions. Vital as IBOR is, however, it is just one solution for asset managers coping with industry change.
Asset managers are seeking a ‘true’ total view encompassing not only basic investment information, but also integrating performance results, exposure analysis and other enriched information across all lines of business and all asset classes. This is a complex endeavor for diversified asset pools that include alternative and other non-marketable investments like derivatives, private equity, real estate and structured products.
With a Performance Book of Record (PBOR), investment management firms have visibility into all investments and results. A PBOR enables performance and risk analysis in one consistent and efficient system. Eagle Investment Systems provides a strong and innovative data management solution, plus a broad product offering, that uniquely positions us to help organizations meet these objectives and achieve their PBOR each day, seamlessly.