InvestSoft Technology, a provider of innovative portfolio management, accounting and analytics software, today announced the addition of a new Performance module that integrates fully with its IBOR (Investment Book of Record). The IBOR is a trade, tax-lot and portfolio position management solution that buy- and sell-side firms use to monitor and analyze portfolio holdings across asset classes and trading/accounting platforms in real time, thus allowing for optimal business and investment decisions.
The new module allows users to calculate performance on a daily basis or on demand throughout the day. The exceptionally high-speed performance reporting stems from the unique design of the IBOR, and therefore supports high volume reporting. Performance is calculated per individual portfolio, account, security, and date, and may be aggregated to higher levels. Performance includes changes to a holding’s principal value, plus any cash flows attributed to the holding (e.g. cash from transactions, corporate actions and variation margin payments). Performance is reported in multiple currencies: system currency, account reporting currency, and account operating currency, for example. The module calls InvestSoft’s extensive BondPro Library of analytic calculations for calculating accrued interest and security factors for factorable securities such as I/L bonds, MBS, PIK bonds, Toggle bonds and Total Return Swaps, etc. The Performance module supports Equities, Bonds, Mutual Funds, Currencies, Options or Warrants, Futures and Swaps. Advanced features include the valuation of Forwards using interpolated forward FX rates, the adjustment of cash flow from bond trades for trade interest paid through settlement date, and easy/automatic correction of performance results after back-dated changes to holdings due to “as-of” transactions.
InvestSoft’s IBOR has been in production for over 10 years and was completely rewritten in 2012 to take advantage of the latest service-oriented architecture and web technology. Corporate action processing was added in 2013 to automatically update the security and cash positions of the account(s) holding the security. The Corporate Actions module automatically generates upcoming corporate actions affecting fixed-income and other securities (e.g. Coupon Payments, Maturities, Calls, Puts, Sinks, Futures Expiration, etc.) for user review before processing. It alerts users when “as-of” trade activity impact historical corporate actions, and can automatically process any needed corrections. It can also be customized to receive corporate actions feeds from vendors. A variation margin module was also added in 2013 to allow the automatic creation and processing of daily cash in/out transactions due to “mark to market” variation margin activity on futures and other securities.
InvestSoft’s IBOR links directly to any trade order management or source system, schedules and processes corporate actions and maintains portfolio security and cash positions (in any currency) at both the tax-lot and position level, and on a settle- and trade-date basis. It integrates seamlessly with InvestSoft Technology’s BondPro Library of analytics & accounting calculations and its fixed income portfolio modeling module, thus accessing fixed income and derivatives analytics for securities and portfolios, and optionally providing book value accounting calculations. InvestSoft has developed a unique design of web services calls to its modules allowing easy custom development of the GUI to meet any firm’s specific needs and desired layout. This comprehensive solution allows complete flexibility for GUI design coupled with a very cost-effective core IBOR solution.