Turner Wilferth
Solutions Consultant
At Clearwater Analytics, Turner utilizes his extensive technical knowledge of the system, finance, and accounting to assist investment and accounting teams in optimizing their processes. Turner is passionate about finding innovative solutions to complex problems and is always eager to learn and grow within his field.
Outside of work, he spends every second he can outdoors mostly skiing and fly fishing in Idaho’s beautiful mountains.
Turner’s educational background includes a degree in Economics from Loyola University Maryland in Baltimore.
Accurate and reliable investment data is crucial for making informed decisions and should serve as the foundation of your investment operations.
With that in mind, your Accounting Book of Record (ABOR) and Investment Book of Record (IBOR) should be aligned with a validated investment data set that provides a comprehensive view of your investment positions, transactions, and performance to effectively guide that decision making.
The Importance of ABOR in Asset Management
Modern asset managers deal with a vast amount of data from various sources such as order management systems, portfolio management systems, custodians, and other data providers. Often, this data is scattered across different systems, making it challenging to accurately analyze and report on key investment metrics. Maintaining an accurate and up-to-date accounting book of record is paramount for financial reporting, compliance, making informed business decisions, and ensuring accountability and transparency within the organization. It’s the single source of truth for the middle and back-office investment operations.
An automated ABOR solution, like Clearwater Analytics, that aggregates, reconciles, and validates data from multiple sources, allows asset managers to have a holistic view of their investments in a single pane-of-glass view. This is essential for accurate financial reporting, performance measurement, risk management, and compliance with industry standards and regulatory requirements.
What’s an IBOR, PBOR, and ABOR?
Asset managers rely on multiple books of record, including the accounting book of record, investment book of record and performance book of record – also known as the ABOR, IBOR, and PBOR, respectively.
Each of these records serves an important purpose in helping you understand, track, and report on your portfolio. For this reason, it’s vital that each one is aligned with accurate, reconciled data. First, you need to understand the purpose and difference between each book of record. The IBOR typically captures details like trade executions, settlement dates, pricing, corporate actions, and cash flows related to these investments, often in near real time. The PBOR includes a record of returns across assets to drill into various investments and their performance drivers. The ABOR holds the accounting information an entity uses for their official financial records.
To help you align the IBOR, ABOR, and PBOR:
- Establish clear data integration and determine how data will flow between the different records.
- Ensure your data is reconciled regularly and that you can identify any discrepancies or inconsistencies.
- Coordinate with relevant stakeholders and establish clear communication channels and procedures for sharing and verifying information.
How Clearwater’s SaaS Solution Helps
Clearwater Analytics offers a comprehensive SaaS solution for investment accounting and reporting that addresses the complex needs of asset managers. Each day, Clearwater automatically aggregates, validates, and reconciles your portfolio data. That data then runs through Clearwater’s robust multi-asset accounting and reporting engine to create an accounting book of record. Performance data from that same data set can be used to create the performance book of record and gets sent to your order management system for your investment book of record.
Benefits of Clearwater’s SaaS Solution
Clearwater provides an end-to-end investment management solution that enables asset managers to seamlessly manage the entire investment lifecycle, from trade execution to settlement and reconciliation. Clearwater’s solution includes an integrated order management and portfolio management system and maximized performance management for your performance book of record. Clearwater automates the aggregation, validation, and reconciliation of investment data, reducing manual effort and improving efficiency. It also provides comprehensive coverage of asset classes to deliver an all-encompassing view of your investment data to enable data-driven decision-making.
To learn more about Clearwater’s ABOR solution and how it can help provide accuracy, efficiency, and confidence in your investment decision-making, click here to schedule a meeting with one of our experts.