A large OCIO manager needed a technology solution that could address the Form ADV requirement to provide derivatives exposure for investments made via Separately Managed Accounts (SMAs) based on day-over-day data. The client was receiving SMA transparency positions, but their challenge was how to manage the Security Master data for the individual investments in that transparency. Their existing Data Warehouse and Security Master solutions were set up to process fund investments every month, even though these positions ran the gamut of direct investment types and needed to be prepared daily. Also, the client now needed to get pricing data for those investments daily.
The client selected Portfolio BI Enterprise Data Management (PBI EDM), including the Data Warehouse and Security Master modules, to provide an end-to-end solution for the Form ADV challenges. PBI EDM comes with out-of-the-box connectors to a majority of fund administrators and custodians and provides the ability to bring in transparency to data quickly. PBI provided enterprise integration management and included a step to identify new securities across asset types and automatically create them in the system. This, coupled with the PBI EDM’s integration with various Market Data and Risk systems, provides all of the necessary Security Master reference data needed to enable the firm to run exposure, compliance, and risk reporting in real-time. The resulting outputs are persisted in the easy-to-use Data Warehouse with both “as-of” and “knowledge date” support.
PBI EDM helped the client achieve their primary goal by providing the necessary data for Form ADV reporting. The PBI Security Master module automatically processes data daily and provides the client with a notification mechanism and workflow for addressing potential data issues. PBI EDM also offers automated extracts for the departments responsible for Form ADV processing and provides an automated excerpt to the client’s existing internal Security Master. Also, the firm received a new benefit: whereas before implementing the PBI EDM, they were able to report at the top-level investment, now they can report on total exposures, providing more robust and thorough reporting. PBI has increased the firm’s operational efficiency and streamlined its firm-wide reporting process, as well as delivering compliance functionality that brings in new investors.