The first of July 2011 was the deadline for the implementation of the UCITS IV directive into national law. One of the directive’s implementation measures was the replacement of the simplified prospectus by the key investor information document (KIID). In Germany the KIID must already be published according to the guidelines and formatting constraints of the regulation. In Luxembourg existing funds are subject to a grandfathering clause ending on 30 June 2012. However, for new UCITS or share classes the KIID has to be produced at the issuing date.

For Axxion, an investment management company based in Luxembourg, the challenge was to produce KIIDs before June 2012 because of upcoming requests formulated by German customers. The KIID had to include all relevant key figures, the information had to be published on the company’s website and, additionally, an application for the measurement and management of liquidity risks according to the German InvMaRisk (CSSF circulars 11/508 and 11/512 in Luxembourg) had to be implemented.

Due to the high degree of outsourcing, the company using multiple external administrators, the information was not available at a central source. Within the framework of the project, acarda’s Risk and Reporting Integration Framework permitted to establish the integrated internal data storage. Then the data, provided by multiple sources, different fund administrators, portfolio management systems and markets reference data providers, was automatically consolidated. As a next step the KIID reporting process, including the SRRI calculation and fund performance on a PDF, was implemented. The first KIIDs were available in only two weeks.

Moreover, via web services, acarda realized a data supply system for Axxion’s internet presence. Therefore, key figures such as the Sharpe Ratio, volatility or fund performance were dynamically calculated. In addition, a document administration system was implemented in order to publish, for instance, annual reports on the internet.

Finally, RC Banken’s Liquidity Analyzer, our partner’s solution for liquidity risk issues, was added to the framework, with the entry data being automatically provided by the central data supply system and the calculated risk figures being recorded.

The processes of the application can be monitored and controlled on a dashboard. The different challenging modules of the application were implemented in four months.