Increased industry demands on institutional asset management operations demand an Investment Book of Record (IBOR) architecture. However, just piecing together IBORs is not the solution. Firms need to advance to the IBOR Services Matrix for a complete Service-Oriented Architecture framework.

The competition within institutional asset managers has never been greater, with clients now demanding improved performance, increased portfolio transparency, and auditable operational trading and portfolio processes at a minimum.

Asset managers are broadening their investment portfolios by incorporating cross-products, running quantitative macro/micro portfolio construction models, and extending global reach within investments. At the same time, they need to adhere to all new regulatory requirements and reporting demands, in addition to maintaining and improving the efficiency of operations.

Asset management firms (AMFs) and their management need to understand the advantages of IBOR and the further sophistication of the IBOR Services Matrix.

“Asset managers need to be careful not to get caught in the hype of IBOR,” says Jay Wolstenholme, a senior analyst with Celent’s Securities & Investment practice and author of the report. “In order to reach an optimal SOA framework, the fundamentals of the IBOR Services Matrix need to be understood.”