The Journey to Real-Time Investment Data

In January 2017, our asset management lient firm faced a critical challenge: portfolio managers needed faster, more accurate access to investment data. The existing Accounting Book of Record (ABOR) system, while reliable for end-of-day reconciliation, couldn’t meet the demands of modern investment decision-making. This is the story of how we transformed our client’s access to investment data through the implementation of an Investment Book of Record (IBOR) system.

Understanding the Challenge

The limitations of our previous setup became apparent during a particularly volatile period from June 2015 to June 2016. Portfolio managers needed to make crucial investment decisions based on rapidly changing market conditions, but the available position data was several hours old, missing real time order execution information and minute by minute changes to incoming and outgoing cash flows. This incident highlighted the urgent need for real-time investment book of record - IBOR.

Our client’s existing infrastructure relied on overnight batch processing, handing it off to OMS at SOD and hourly cash flow updates, creating significant delays between trading activity and position updates. Portfolio managers often resorted to maintaining separate systems and spreadsheets to track their positions, orders, and cash balances leading to inconsistencies and inefficiencies.

The Vision

By April 2017, we had defined our client’s vision for the IBOR implementation: create a single source of truth that would provide real-time visibility into positions, cash flows, and order information. The system needed to serve multiple stakeholders:

  • Portfolio managers requiring immediate position updates
  • Risk managers monitoring exposures
  • Trading desks tracking order status
  • Operations teams managing cash flows and balances

Building the Foundation

The summer of 2017 was spent laying the groundwork for our IBOR implementation. We began by mapping our client’s data ecosystem, identifying critical data sources and potential integration points. This phase revealed the complexity of our challenge: we needed to integrate data from multiple systems, including:

  • Order Management System (OMS)
  • Portfolio Management System (PMS)
  • Multiple custodian feeds
  • Fund administrator reports
  • Corporate action processing within Accounting System

The Technical Architecture

By September 2017, technical architecture began taking shape. We opted for a hybrid approach that would combine:

  • Event-driven processing for real-time updates
  • REST APIs for system integration
  • A central data lake for historical analysis
  • Real-time validation rules engine
  • Automated reconciliation processes

The architecture was designed to handle multiple data types while maintaining sub-second latency for critical updates.

Solving the Data Challenge

One of our biggest breakthroughs came in November 2017 when we implemented our “golden source” strategy. Instead of treating all data sources equally, we established a hierarchy:

  1. Trading system data for intraday positions
  2. Custodian data for settled positions
  3. Fund administrator data for official records

This hierarchy helped resolve data conflicts and provided clear audit trails for position differences across different asset classes.

The Human Element

The technical implementation was only part of the challenge. Throughout early 2018, we focused on the human aspect of the change. This included:

  • Weekly workshops with portfolio managers to understand their needs
  • Regular feedback sessions with the trading desk
  • Collaboration with compliance teams
  • Training sessions for all stakeholders

Real-World Impact

By March 2018, the impact of our IBOR implementation became clear:

  • Portfolio managers gained immediate visibility into their positions
  • Trading teams could track order impact in real-time
  • Operations teams reduced manual reconciliation work

Quantitative improvements included:

  • 97% reduction in position data latency
  • 60% decrease in manual position tracking
  • 40% improvement in cash forecasting accuracy
  • 30% reduction in reconciliation efforts

Lessons Learned

The implementation taught us valuable lessons about large-scale data projects:

  1. Start with clear use cases rather than technical specifications
  2. Involve end-users early and often in the design process
  3. Plan for gradual adoption rather than big-bang implementation
  4. Build robust audit trails to maintain trust in the system
  5. Focus on data quality as much as system functionality

Conclusion

The IBOR implementation represents more than just a technical achievement. It marks a fundamental shift in how our client manages investment data. By providing real-time access to accurate position and cash flow information, we’ve enabled our client’s investment professionals to make better-informed decisions and improved operational efficiency across their organization.

The success of this project demonstrates that with careful planning, strong stakeholder engagement, and a focus on end-user needs, even complex data management challenges can be overcome, leading to tangible business benefits.