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Monday, August 31, 2026

What an IBOR actually is (and why ABOR is not the same book)

An IBOR gives portfolio managers an intraday, position-level view built for decisions; an ABOR gives accounting an end-of-day, valuation-grade view built for NAV. Firms that run one book for both jobs end up reconciling forever.

Two books, two jobs

Ask five people in a fund shop what the "book of records" is and you get five answers. That is not sloppiness — it is because two different books genuinely exist.

IBOR — investment book of records. Built for the desk. Intraday, includes pending and expected activity, reflects the manager's economic view of positions right now. It answers: what can I trade?

ABOR — accounting book of records. Built for fund accounting. Struck end-of-day on settled activity with validated prices. It answers: what is the fund worth, defensibly?

Where it breaks

  • Corporate actions land in one book before the other.
  • Cash forecasting differs: the desk wants expected cash, accounting wants settled cash.
  • Multiple custodians deliver positions on different cut-offs.

What a consultant does here

Map the golden source per data object, not per system. Then decide which breaks are worth automating and which are simply timing differences to be explained.