The data and processing needs of an institutional asset owner or allocator are very unique when it comes to the calculations, analysis and business activities that are being performed. Asset owners and allocators can look at an IBOR as a delineated version of a performance book of record (PBOR). Because of the heavy investment in manager-of-manager or fund-of-fund products, a CIO and investment team typically base their investment decisions on things like:
·Portfolio, manager and asset class performance
·Performance of any direct investments and investment products
·Correlation and risk characteristics of the products and overall portfolio
·Resulting overall exposure and liquidity relative to specific business needs
When an asset owner/allocator attempts to make an unfit system work, it can lead to a drain on time, resources and moneywhile never actually achieving the desired result – leading to frustration on the part of both the investment team and the operation team.
The Solovis platform functions off of one central repository, which is architected from the ground up to receive, normalize, and slice and dice data (without data loss) as desired. Audit trails are preserved back to the original data sources. Solovis' IBOR is designed specifically for the asset owner/allocator and is able to report upon timely, up-to-date information as well as locked-down accounting data, providing the asset owner/allocator with transparency into how the two data sets differ.
Generally, there are two key concepts of the Solovis platform design that “get it right” with an IBOR built for an asset owner/allocator:
- Data is stored in such a way as to allow an investment to be evaluated both according to its own asset class specific metrics and according to broader total portfolio metrics and measurements
- Calculations are able to accommodate the most up-to-date information available, without becoming untethered from the custody/accounting data which underlies the official NAV
While these may seem like simple enough concepts, they have proven difficult for most software and technology infrastructures to follow because legacy systems in the asset owner space were not designed to work in this manner. Numerous problems emerge in the absence of either of these two critical elements for success.
Solovis has the ability to pull together all asset class types, acting as a central repository for meta data, normalizing all incoming investment data to produce meaningful, consistent output on a timely basis. The platform does this without sacrificing the ability to accommodate asset class specific data and reporting requirements (e.g., daily valuations, daily flows, transaction attributes that permit the calculation of unfunded liabilities, etc.)
Solovis enables multiple books of record on a single platform, utilizing knowledge dating capability and consistent operational processes that allow constant reconciliation of information across an asset owner’s or allocator’s world, while also giving each asset class investment team the power to look at data in their own novel way.