A Word About IBOR: A Few Critical Items You Need to Know

by Jay Wolstenholme, June 23, 2015
Industry Trends
Global

Abstract

The Investment Book of Record (IBOR) has become the architectural vision for the buy side. That is definitely good, but of course comes with caveats. One size does not fit all, and asset owners and asset managers need to be careful of being oversold and over-engineered. This report categorizes who really needs the IBOR architecture, the different definitions of IBOR, the different levels of functionality, and some of the critical issues clients need to know about IBOR capabilities.

 

The perfect Investment Book of Record (IBOR) definition reads as follows:

The Investment Book of Record is the real time golden copy of all transactions that comprise all the portfolios of owned and managed assets. Transactions can consist of all historical events from the beginning of financial conception to the end of financial life. All transactions can then be aggregated into asset positions, concluding in an aggregate portfolio view for the complete financial firm.

In reality, virtually no asset management firm can cleanly meet this real time universal definition of an IBOR. However, it helps to start at the top of the pyramid and then work toward more realistic scenarios matching actual buy side firms’ needs and requirements with practical technology.

The architectural blueprint vision of an IBOR is exactly what is needed within the buy side technology portfolio. But firms need to execute careful analysis and supplier assessments to ensure that they don’t overbuy or over-engineer a burdensome solution.

“IBOR is a great concept but has also become a marketing phenomenon,” says Jay Wolstenholme, a senior analyst with Celent’s Securities and Investments practice and author of the report. “Not only are there now multiple vendor IBOR solutions to be evaluated and vetted, but sourcing options must be matched to your current and future business model. The concept is what the industry needs, but smart, realistic evaluations are critical.”

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1

 

Key Research Questions

1

Introduction

2

 

Key Research Questions

3

The Buy Side Players and IBOR

4

 

Who Really Needs an IBOR, and To What Degree

4

More on the Definition of IBOR

8

 

Getting More Complex

9

 

Why Isn’t an IBOR Just an EDM?

13

IBOR Issues That Can Put a Spanner in the Works

15

Conclusion

17

Leveraging Celent’s Expertise

18

 

Support for Financial Institutions

18

 

Support for Vendors

18

Related Celent Research

19

Sign in to download reports and access personalized information