It's not surprising that risk management and cost containment remain high priorities for fund companies and service providers. Investment portfolios such as mutual funds, hedge funds, separate, and institutional accounts require investment accounting to help manage risk and produce financial statements to prove to investors that their portfolios are accurately represented. The industry is moving towards implementing one accounting system, whether in-house or outsourced, to help streamline processes and reduce systems cost.
An Investment Book of Record (IBOR) is 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. Equally important to servicing front office needs, a well-constructed IBOR supports middle-office business functions such as calculation of daily security level performance measurement and portfolio attribution, oversight of the back office or custodian, management reporting, client billing, and client statements. The IBOR is typically processed on a trade date basis, meaning any trades are recognized as part of the investment book on their market trade date.