XBRL in the investment funds market: The role of private institutions Rubén Lara [email protected] Grupo...
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Transcript of XBRL in the investment funds market: The role of private institutions Rubén Lara [email protected] Grupo...
XBRL in the investment funds market:The role of private institutions
Rubén Lara
Grupo Analistas
Context1) Grupo Analistas is a leading group in the provision of
analytical information in the Spanish investment funds market
2) Provision of analytical information requires:- Availability of homogeneous information (from the market)
- Descriptive aspects of funds subject of analysis- Other market information
- Generation of added-value information (to the market)- Rentability, performance measures, rating…
Grupo Analistas
Context – from the market- Different sources of information
- Supervisor: Regulatory information- Fund management firms: NAV, unit holders- Stock markets: NAV, other market information
- Different information models and exchange formats- Ad-hoc validation and integration procedures- Costly and error-prone maintenance
Grupo Analistas
Context – from the market
Grupo Analistas
Mgmt. firmMgmt. firm
Mgmt. firm
Aggregatedinformation
NAV
Validationand
conversion
Regulatory information
Aggregation
NAV
Heterogeneity!
Context – to the market- Analytical information
- More than 5000 investment funds (Spanish market + major foreign funds)
- Information such as:- Rentability/risk relation- Performance measures- Ranking- …
- Different customer profiles- Search, comparison and personalization capabilities- Recommendations
Grupo Analistas
Context – to the market
Context – to the market
Aggregatedinformation Analysis
Added-valueinformation
Mgmt. firms
Sellers
PotentialInvestors
Unitholders
The problem- Lack of agreed, explicit models that cover the compete information
life-cycle- Lack of automated validation- Ad-hoc processing- Costly and error-prone maintenance
- Ingredients for a solution- Common language
- Appropriate expressivity- Mechanization support- Platform-independent
- Common information model- Consensus required!
Grupo Analistas
Ingredient 1: XBRL
Grupo Analistas
Mgmt. firmMgmt. firm
Mgmt. firm
Aggregatedinformation
NAV
Validationand
conversion
Regulatory information
Aggregation
Ingredient 1: XBRL
Aggregatedinformation Analysis
Added-valueinformation
Mgmt. firms
Sellers
…
Unitholders
Ingredient 1: XBRL1) Uniform processing and validation
2) Cost and error reduction
3) Gain in information quality
4) Improved market transparency
5) Increase in investor confidence
Grupo Analistas
Ingredient 1: XBRL- XBRL gaining momentum in Spain
- Backed by regulators and supervisors e.g. Bank of Spain and CNMV
- Increasing attention from financial institutions- Results in 2005:
- DGI taxonomy- IPP taxonomy- ES-BE-FS taxonomy- PGC-90 taxonomy- COREP taxonomy (international)
Grupo Analistas
Ingredient 1: XBRL- The role of regulators in the Spanish market
- XBRL early adopters- Taxonomy definition- Information reception
- XBRL promotion
- XBRL prescriptors
- Provision of solid bases for the definition of taxonomies in the private sector
- Compulsory use of regulators’ and supervisors’ taxonomies. High-quality information base.
- Initial public information
Grupo Analistas
Ingredient 2: Common info model- Grupo analistas is working on an initial model
- In cooperation with Universidad Autónoma de Madrid and Gestifonsa
- Dependent on the (possible) future information model from CNMV- Extension to include analytical information- Full coverage of funds information life-cycle
- Beyond supervisor and regulators competency!
- Proof-of-concept model- Evolving- Simulation of usage in progress
Grupo Analistas
Ingredient 2: Common info model- DGI taxonomy reused
- Description of institutions e.g. funds management firms
Grupo Analistas
Ingredient 2: Common info model- Four main information groups
1) Funds descriptive information2) Relevant facts3) Periodic descriptive values4) Analytical information
- Different nature, sources, and periodicity
Grupo Analistas
Ingredient 2: Common info model
- Partial example: analytical information
Grupo Analistas
Ingredient 2: Common info model- Challenges
- Consensus among market agents- Adoption
- Opportunities- Solid ground set by supervisors and regulators- Sufficient awareness (?)- Improved efficiency in information exchange
Grupo Analistas
XBRL: future directions- Increasing awareness- Increasing adoption
But
- Limitations in expressivity (calculation links)- Formal semantics?
- XBRL could be influenced by other languages e.g. OWL- Formalization of validation rules using e.g. RIF (to come)- Improved validation possibilities and new applications
Grupo Analistas
XBRL vs OWL- Ontologies: Formal, explicit, and shared
conceptualizations of a domain of application
- Automatic translation mechanism of XBRL taxonomies into OWL ontologies
- Comparison in progress- Possible application e.g. automatic funds
classificationGrupo Analistas
XBRL vs OWL- OWL has a formal basis (Description Logics)
- Allows for inferences e.g. characterization of funds a given investor is interested in
Grupo Analistas
</XBRL in the investment funds market:The role of private institutions>
Grupo Analistas