How to Handle Investment Data from External Portfolio Managers

Data Integration & Investment Data Management for External Portfolio Management

The creation of a single source of truth across investment (IBOR) and accounting (ABOR) data can be a challenge for insurers with external managers or acquired books of business. Using data management technology to clean, standardize and unify data can provide a cleaner enterprise architecture and stronger data governance.

Insurance companies often rely on external partners to manage parts of their portfolio, but external portfolio management can complicate their data infrastructure. Investment data and accounting data can be split across external and internal systems, in different formats, connected through legacy or infrequent interfaces. The data challenges that a fragmented infrastructure present are especially compounded by the acquisition of new business, which requires the integration of an entirely new set of systems and partners.

Insurers with multiple Investment Books of Record (IBOR) and Accounting Books of Record (ABOR) not only operate at a higher cost but without an enterprise view of their assets. Limited visibility of this data can prevent effective coordination with the liability side of their business as well as operating effectiveness and resiliency.

Learn how one Insurance company implemented a multi-manager
operating model using Grandview’s Rivvit

Data Integration in a Hierarchical Manner Will Facilitate a Single Version of Truth

A data hub can bring together fragmented data, including multiple IBOR and ABOR records, but this presents technical as well as business challenges. Even if data formats and interfaces are standardized, there is usually considerable overlap of redundant data. A common example of redundant data are security identifiers or prices, which can come from different market vendors and be applied inconsistently across an enterprise.

To achieve a single enterprise view of IBOR and ABOR data, format and interface must be standardized, but business rules must also be applied to select preferred data sources. The work to define these business rules usually reveals data governance or quality work that is already happening, so transparency over these rules helps to create a data hub as well as centralized data quality.

Data Integration Flow Chart

Incorporate data feeds from external managers into your single source of truth

Rivvit is Grandview’s data management and reporting platform – our answer to the data integration challenge. Rivvit was built to accelerate the integration of investment and financial data to create a single source of truth and centralized data quality.

In the case of multiple external managers, Grandview would use Rivvit’s enterprise data management (EDM) solution to ingest data sets from each external manager and then clean and standardize the data so it’s ready for use in downstream systems and by data consumers. Frameworks customized for the investment industry allow you to dictate the source of truth for every data field, including source hierarchies and source-to-target value pairing. The result is gold copy records based on your preferred sources of truth, which enables enterprise-level data management practices.

Learn how Grandview’s data integration, management, and reporting platform, Rivvit,
can streamline the integration of data from multiple sources in one place.

ABOUT GRANDVIEW ANALYTICS

Grandview Analytics is a technology consulting and investment data management software company serving financial institutions. We offer data strategy, technology implementation, systems integration, and analytics consulting services as well as an outsourced investment data management and reporting service powered by our proprietary, cloud-based platform, Rivvit.

Our services drive improved business processes, integrated technologies, accurate and timely data, and enhanced decision-making capabilities. Our seasoned team of financial industry professionals brings deep business and technical domain expertise across asset classes and trade lifecycle. With hands-on financial industry experience, we execute on complex initiatives that help clients optimize ROI on data and technology investments.

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