XBRL for Mutual Funds: Are you ready?

For the past several weeks, this blog has been covering some of the key components of XBRL as it pertains to open-end mutual funds, specifically the requirement to translate the Risk/Return Summary section into XBRL format, as well as to publish the XBRL files to a fund’s website, when one exists.

Merrill Corporation announced its answer to the XBRL question last week – XBRL Complete. This solution provides open-end mutual funds with a robust, end-to-end service offering that produces accurate and reliable data in XBRL format through a cost effective and efficient process.

As we know, starting January 1, 2011, all open-end mutual funds are required to file the Risk/Return Summary section in XBRL format as an exhibit. In addition, the XBRL files must be published to the fund’s website, when one exists. The core functions that are needed to meet these requirements include: tagging, filing and publishing.

This is a simple synopsis of the mandate, and while there are also complex elements to the implementation, when choosing a vendor, there are two basic success factors to be considered:

1. Subject matter experts who are familiar with the ruling and its detailed implications.

• Taxonomy? Element? Dimension? Extension? If these words are not in your vernacular, then an XBRL expert who is focused on U.S. mutual funds (not corporate filings or foreign mutual funds) will be a necessary addition to your team.

2. Systematic process for expeditiously and accurately tagging, filing and publishing your data in XBRL format.

• An automated tagging solution ensures that your data is tagged correctly – the 1st time and every time. In addition, classes are handled with ease in a well-designed tagging platform.
• Once your XBRL-tagged data is ready for filing – it flows seamlessly in our filing engine.
• Afterwards, once the XBRL data is accepted by the SEC, our standard publishing option converts the XBRL data into human-readable, HTML-rendered format. Both the XBRL data as well as the HTML version are published to your fund’s website on the same day that it is filed. The HTML view helps your investors understand the content of the XBRL files.
  

Additionally, because the mandate only requires the XBRL files to be published to your website, few of a fund’s investors will be able to harness the true power of XBRL unless they have access to XBRL-enabled software. An enhanced publishing solution uses the XBRL data within a viewer that allows your investors to compare any combination of your funds – side-by-side – in a matter of seconds.

As of the posting of this blog, there are 108 days remaining until the mandate goes into effect. Are you ready? Over the next several weeks, we will continue to answer some of the critical questions regarding the mandate and solutions that demonstrate how ready you need to be.

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Merrill Corporation is proud to offer XBRL Complete, a suite of services that meets - and has options to exceed – the mandated requirements for XBRL for mutual funds.

For more information, please click here or call 866-367-9110.