A growing fixed income asset management firm with approximately $20B in assets under management (AUM) had business challenges due to a lack of integrated portfolio compliance and straight-through processing in their trading-workflow. Their order management software did not have needed portfolio management features, and it did not have a robust, built-in compliance engine. To track investor guidelines, the firm maintained a collection of Microsoft®Excel® spreadsheets and relied on spot checks throughout the month to ensure adherence to those guidelines. This process was inefficient and error-prone, resulting in unnecessary work and causing concerns for investors during their due diligence processes.
Portfolio BI successfully implemented the Portfolio BI Portfolio Management System (PMS) with the Security Master, PBI Order Management System (OMS), Trading Compliance, and Portfolio Management modules.
The Portfolio BI Security Master leveraged PBI’s built-in Bloomberg connection to bring in security reference data that improved the firm’s reporting. Also, the automated feed to downstream systems eliminated the need to double-book securities in the OMS and the accounting system, which had previously been the case.
The PBI OMS enabled a full end-to-end process, from resolving new securities to quickly booking trades, to allocating per the firm’s strategies and having that allocation process integrated into Portfolio BI Trading Compliance, and finally to feeding downstream systems, eliminating the need to print and email trade tickets.
The Portfolio BI Trading Compliance module centralized the management of portfolio restrictions, concentration limits, and risk guidelines, and integrated those rules into the trading process.
Finally, the Portfolio BI Portfolio Management module enabled the firm to migrate a large portion of their intraday and end reporting from manually managed Microsoft Excel spreadsheets to views accessible from the system, ensuring consistency and reducing errors.
Implementing the PBI Platform benefited the firm in many ways, including:
• Integration of previously disparate systems, eliminating the need for duplicate data entry;
• Upgraded order and portfolio management workflows;
• Real-time intraday portfolio views;
• Trading strategy management without the need for spreadsheets; and
• Real-time checks on account guidelines, allowing the firm to bring in more investors.