Total Portfolio – Operating Model Archetypes

Real-Time Total Fund IBOR Example:

T+1 Data Warehousing Example:

TPV Model Characteristics

Choosing the right TPV operating model means carefully weighing the distinctive features of the two key archetypes to see how well they fit with your firm’s priorities.

With this foundation in place, the focus now shifts to the design considerations that will influence how effectively your chosen TPV model can be implemented and sustained. These considerations span fund size and complexity, investment strategies, technology readiness, data governance, and the crucial element of organizational change management. Addressing these factors is essential for tailoring the TPV operating model to your firm’s unique context and ensuring smooth adoption across teams.

Design Considerations

Our clients span a broad spectrum of size, sophistication, and operational complexity, each with distinct TPV requirements for data timeliness and granularity. As investment capabilities evolve from allocators to active tactical managers, the definition of what constitutes timely, firm-wide exposure information also changes.  Whether a client needs real-time exposures through a unified IBOR, relies on T+1 data warehousing for robust reporting and oversight, or elects a hybrid model to support a maturing investment philosophy, our integrated Charles River Development software and State Street services solutions can provide fit-for-purpose unification of public and private asset data.

• David Eshenower, EVP, Head of State Street Alpha ^®

A) Scale Requirements Based on Fund Size and Complexity

Firms should consider their portfolio’s size and complexity when choosing a TPV model to ensure scalability and alignment with operational demands:

• Firms should consider real-time IBOR if they manage large, complex portfolios that require scalable and responsive systems to handle significant data volumes with minimal delay
• If a fund is smaller or less complex, a T+1 data warehouse may be a simpler and more cost-effective option for delivering consolidated portfolio insights with timely reporting
• Firms might adopt a phased or hybrid approach, starting with T+1 data warehousing across the portfolio and gradually layering in real-time IBOR capabilities for select strategies
• Expect that your TPV operating model may evolve over time, transitioning from batch-oriented solutions toward real-time architectures as your technology stack and data governance

B) Investment Style and Asset Class-Specific Demands

Different investment strategies dictate different data and timeliness needs:

• Firms should consider real-time data solutions if their portfolios include active trading strategies or complex instruments such as derivatives that require timely, granular visibility for decision-making
• If the portfolio primarily consists of long-term holdings or passive investments, next-day T+1 data updates may be sufficient to meet reporting and oversight needs
• Firms managing alternatives like private equity or real estate should recognize the unique data challenges these asset classes present, often requiring strong governance structures and manual oversight to ensure data quality
  • If comprehensive exposure insights are a priority, firms need unified data across asset classes and functions
  • Collaboration between investment teams, data management, and external managers is crucial, especially if consistent data mapping and reconciliation across diverse sources are needed
  • Firms should consider these complexities carefully, as effectively managing alternative assets is key to achieving a truly consolidated and accurate TPV

C) Technology Maturity & Readiness

Firms should assess their technology infrastructure’s ability to integrate diverse external data feeds and manage complex data workflows when selecting or evolving their TPV operating model:

• Firms should consider investing in advanced, real-time TPV models if their technology infrastructure is mature enough to support the complex integration of multiple data feeds from various external managers with differing formats and update frequencies
• If your current ecosystem has limitations in handling diverse data types or lacks flexible ETL processes, a more batch-oriented T+1 data warehouse may be more suitable
• Consider upgrading technology and processes progressively, aligning ecosystem readiness with your TPV ambitions and operational goals

D) Importance of Data Normalization

Firms should ensure robust data normalization to achieve accurate exposure management across both individual securities and underlying assets:

• If your portfolio includes both public and private market holdings, firms should implement processes to accurately align publicly traded securities with their corresponding private assets to prevent double counting and ensure data integrity

E) Effective Change Management

Firms should integrate structured change management to foster collaboration and ensure smooth adoption of new TPV processes and technologies:

• Prioritize change management as your TPV implementation requires coordination across investment, risk, operations, and data management teams to break down silos and build shared accountability
• If the new TPV model involves redefining roles, such as introducing data stewardship or shifting decision-making responsibilities, firms should proactively manage these changes

• Leadership sponsorship and clearly defined accountability across data, investment, and technology teams are critical to sustaining adoption and preventing a reversion to siloed practices
• Firms should establish ongoing communication channels and feedback loops to track adoption progress, identify issues early, and iteratively improve the operating model based on user experience

Conclusion

Choosing the right TPV operating model archetype, whether Real-Time IBOR or T+1 Data Warehouse, is a strategic decision that fundamentally influences the firm’s ability to handle data complexity and deliver timely, actionable insights.

Real-Time IBOR offers detailed, immediate visibility, empowering active portfolio management, but comes with higher operational complexity and significant technology investment. T+1 Data Warehouse provides a well-established, consolidated view suited for performance measurement and regulatory reporting, albeit with less support for intra-day decision-making.

Many firms find success through a hybrid, phased evolution of operating model archetypes; starting with T+1 data warehousing and progressively layering in real-time capabilities as their data governance matures and technology infrastructure strengthens. Recognizing this natural progression can help firms design more flexible and scalable TPV strategies.

Ultimately, success depends on a comprehensive strategic roadmap that aligns technology investment, data governance, and operating model transformation. This roadmap should clearly define roles and responsibilities, establish robust data management frameworks, and foster a culture open to change.

By integrating people, processes, technology, and data thoughtfully, firms can unlock the full potential of TPV and support sustainable, long-term success remaining adaptable to evolving investment strategies and operational demands.

Successfully implementing a TPV is as much a cultural journey as it is a technological one. Our experience supporting clients globally shows that overcoming complexity requires not only scalable platforms and robust data governance, but also proactive change management and a clear strategy for aligning people, processes, and platforms. Talent and capacity gaps are common for firms during this transformation. Leveraging strategic partners with an established platform, global operating model and genuine expertise can enable firms to reach their TPV goals quicker and with less disruption to the business.

• David Eshenower, EVP, Head of State Street Alpha ®

To read the full article series, visit part 1 – Understanding the Total Portfolio Approach, part 2 – Overcoming Total Portfolio’s Challenges, part 3 – Unlocking the Power of Total Portfolio – Unified Data for Asset Managers.