Rulebook on the Structure and Content of Annual and Semi-Annual Reports and Other Reports of Alternative Investment Funds

Croatian Financial Services Supervisory Agency, 10000 Zagreb, Franje Račkoga 6, P.O. Box 164, Croatia t: 01 6173 200, f: 01 4811 507, e: info@hanfa.hr, OIB: 49376181407, MB: 02016419, w: www.hanfa.hr

RULEBOOK
ON THE STRUCTURE AND CONTENT OF ANNUAL AND SEMI-ANNUAL REPORTS AND OTHER REPORTS OF ALTERNATIVE INVESTMENT FUNDS (Official Gazette No. 155/22 and 12/24 – Unofficial Consolidated Text)

INTRODUCTORY PROVISIONS
Article 1.
This Rulebook regulates the keeping of accounting records, the content, form, publication, method, and deadlines for the preparation and submission of annual and semi-annual reports by which the Alternative Investment Fund Management Company (hereinafter: AIFMC) reports to the Croatian Financial Services Supervisory Agency (hereinafter: HANFA) and other external users regarding the financial position, operational performance, and cash flows of the Alternative Investment Fund (hereinafter: AIF) it manages, as well as other reports prepared for supervisory purposes.

KEEPING OF ACCOUNTING RECORDS AND PREPARATION OF ANNUAL AND SEMI-ANNUAL REPORTS
Article 2.
(1) The AIFMC is obliged to keep accounting records for the AIF, and to prepare and publish annual and semi-annual reports in accordance with regulations governing accounting and International Financial Reporting Standards, unless otherwise prescribed by the Act on Alternative Investment Funds ("Official Gazette", No. 21/18; hereinafter: the Act), or subordinate acts adopted on the basis of the Act. (2) The AIFMC is obliged to record business events in the accounting records of the AIF using accounts at least to the extent equal to the chart of accounts prescribed in Annex 1 of this Rulebook.

CONTENT AND FORM OF ANNUAL AND SEMI-ANNUAL REPORTS
Article 3.
(1) The annual and semi-annual reports of the AIF are:
– Statement of Financial Position,
– Statement of Comprehensive Income,
– Statement of Cash Flows,
– Statement of Changes in Net Assets/Equity of the AIF, and – Notes to the Financial Statements.

(2) An integral part of the audited annual reports of the AIF referred to in paragraph 1 of this Article is the Report on Activities for the Financial Year pursuant to Article 105 of Commission Delegated Regulation (EU) No 231/2013 (hereinafter: the Regulation).

(3) The AIFMC is obliged to prepare annual reports for the AIF it manages for the period of the financial year, and large and medium-sized AIFMCs are obliged to prepare semi-annual reports for the first six months of the financial year.

(4) The notes to the financial statements that are an integral part of the semi-annual reports of the AIF referred to in paragraph 1, item 5 of this Article shall cover only significant business events and changes in accounting policies compared to the last published annual reports of the AIF.

(5) In the notes to the annual reports referred to in paragraph 1, item 5 of this Article, the AIFMC is obliged to publish each individual investment:

1. in transferable securities and money market instruments issued by persons associated with the AIFMC,
2. in units of investment funds managed by a person associated with the AIFMC,
3. the impact of investments from points 1 and 2 of this paragraph on profit and loss and the financial position of the AIF.

(6) The AIFMC is obliged to publish in the notes to the annual reports referred to in paragraph 1, item 5 of this Article a summary of fees and other transaction costs incurred during the purchase or sale of financial instruments through an associated person of the AIF.

(7) The annual reports referred to in paragraph 1 of this Article must be audited by an independent external authorized auditor, and are prepared in accordance with the structure and content defined on the forms in Annexes 2, 3, and 4 of this Rulebook.

(8) The AIFMC is obliged to publish in the notes to the annual reports data on transferable securities by groups as follows:
– those traded on a regulated market,
– those traded on another regulated market,
– recently issued ones for which listing is provided by the prospectus, – unlisted.

(9) An internal AIFMC is obliged to publish management costs and other administrative costs in the notes to the annual reports.

(10) When preparing the Statement of Cash Flows referred to in paragraph 1, item 3 of this Article for the AIF, the AIFMC may use either the direct or indirect method.

(11) In addition to the reports referred to in paragraph 1 of this Article, HANFA may request additional data, information, and explanations of certain items in the annual and semi-annual reports of the AIF from the AIFMC.

(12) The content of the annual and semi-annual reports of the AIF referred to in paragraph 1 of this Article is prescribed by Annexes 2, 3, and 4 of this Rulebook.

(13) The AIFMC is obliged to additionally describe in the annual report of the AIF, in addition to the information prescribed by the Accounting Act:
– significant economic and macroeconomic trends during the reporting period that directly or indirectly affected the operations of the AIF, or their impact on the movement of the net asset value of the AIF and individual asset classes, including the AIF's exposure to significant risks, – measures and activities undertaken to implement investment policy and make investment decisions in relation to market, economic, and macroeconomic trends, and activities undertaken to manage exposure to significant risks, – achieved effects and results of the measures and activities from the previous item.

REPORTING ON CLASSES OF UNITS OF THE AIF
Article 4.
(1) If units in the AIF grant different rights to their holders (classes of units) in accordance with Article 87 of the Act, the AIFMC is obliged to disclose for each class of units of the open AIF in the notes to the audited annual and semi-annual reports:
– details regarding the rights granted by each class of units of the AIF, – the number of issued units by individual classes of units of the AIF for the date of preparation of the annual and semi-annual reports and for the date of the previous financial year, – the price of units by individual classes of units of the AIF for the date of preparation of the annual and semi-annual reports and for the date of the previous financial year in the case where rights from a particular class of units result in a different unit price, – distributed profit by individual classes of units of the AIF for the annual and semi-annual reporting periods and for the previous annual and semi-annual reporting periods.

(2) If rights from a particular class of units result in a different AIF unit price, the AIFMC does not report data on the Net Assets of the Fund, Number of Issued Units, and AIF Unit Price positions in the Statement of Financial Position of the AIF.

ADDITIONAL REPORTS OF THE AIF
Article 5. (OG 12/24)
(1) Additional reports of the AIF are:
– report on realized profits (losses) from the sale of financial instruments of the AIF, the content of which is prescribed by Annex 5 of this Rulebook, – report on unrealized profits (losses) of financial instruments and impairment of assets of the AIF, the content of which is prescribed by Annex 6 of this Rulebook, – report on AIF unit holders, the content of which is prescribed by Annex 7 of this Rulebook, – report on the first 10 investors of the AIF, the content of which is prescribed by Annex 8 of this Rulebook, – report on the currency exposure of the AIF, the content of which is prescribed by Annex 9 of this Rulebook, – statistical reports, – reports on the internal rate of return for the Economic Cooperation Fund, according to the content determined by the provisions of this Article.

(2) Large and medium-sized AIFMCs are obliged to prepare additional reports from paragraph 1, items 1 and 2 of this Article for the AIF they manage for the period of the financial year and for the period of the first six months of the financial year.

(3) Large and medium-sized AIFMCs are obliged to prepare additional reports from paragraph 1, items 3 and 4 of this Article for the AIF they manage as of June 30 and December 31.

(4) The AIFMC is obliged to prepare an additional report from paragraph 1, item 5 of this Article for the AIF it manages, whose net assets on the working day for which the report is submitted are equal to or exceed 6,500,000.00 euros. The report is prepared for those working days on which the net asset value of the AIF is calculated.

(5) Exceptionally from paragraph 4 of this Article, the AIFMC is not obliged to submit the report from paragraph 1, item 5 of this Article for an AIF whose rules or prospectus, when applicable, prescribe that it must not have currency exposure.

(6) In addition to the additional reports from paragraph 1 of this Article, large and medium-sized AIFMCs are obliged to prepare reports from Annex IV of the Regulation Forms for Reporting: AIFMC for the AIF they manage.

(7) The statistical reports from paragraph 1, item 6 of this Article are reports on the work of the AIF whose content, form, and submission deadlines, depending on the need for research/analysis of the non-banking financial services system, public reporting and service users, and exchange of information with other supervisory authorities and/or institutions responsible for statistics, are created by HANFA.

(8) Exceptionally from paragraph 7 of this Article, without prejudice to the principles of competence, confidentiality, and data protection, HANFA may accept statistical questionnaires or methods of data collection created by other supervisory authorities and/or institutions responsible for statistics.

(9) The AIFMC is obliged to prepare and submit the reports from paragraphs 7 and 8 of this Article in the manner and within the deadlines requested by HANFA.

(10) In addition to the reports from paragraph 1 of this Article, the AIFMC is obliged to submit a report on the investments of the Economic Cooperation Fund it manages on the last day of each half-year, which contains a list of all investments and a summary of loans granted.

(11) For investments of the Economic Cooperation Fund, Venture Capital AIF, Private Equity AIF, and Real Estate AIF realized through Special Purpose Vehicles (hereinafter: SPV), the AIFMC is obliged to submit general data about the SPV (members/owners of the SPV, share of ownership of SPV members, management board members, rights of the AIF arising from the establishment/investment in the SPV, etc.), as well as data on the assets and liabilities of the SPV:
– list of financial instruments: name of the issuer or other contracting party, nominal value, rights arising from the investment such as e.g. share of ownership, right to profit, interest, etc., – list of tangible, intangible, and other assets and liabilities: type of asset/liability, name of the other contracting party, book value.

(12) The AIFMC is obliged to submit the data from paragraph 11 of this Article:
(a) for Economic Cooperation Funds, on the last day of each half-year in the report from paragraph 10 of this Article, (b) for other AIFs from paragraph 11 of this Article, on the day for which the AIFMC is obliged to calculate the net asset value of that AIF.

(13) The internal rate of return of the Economic Cooperation Fund for the period of the fund's operation includes all cash flows from the beginning of the fund's operation to the reporting date and the fair value of unrealized assets of the fund on the reporting date.

(14) The internal rate of return of the Economic Cooperation Fund for the period from the beginning of the fund's operation to the date of calculation of the internal rate of return is calculated as follows:

• IRR Formula Excel = (values, date)
• Payments from the ECF: negative sign
• Payments to the ECF: positive sign
• Unrealized fair value: positive sign

(15) The internal rate of return of the Economic Cooperation Fund for the period of the fund's operation is calculated semi-annually and annually on the date of preparation of the semi-annual and annual financial reports.

(16) The internal rate of return of an individual investment includes all cash flows for the individual investment in the period from the acquisition of the investment to the date of divestment (disposal) of the individual investment.

(17) The internal rate of return of an individual investment is calculated on the date of divestment of the individual investment.

(18) In addition to the additional reports from paragraph 1 of this Article, the AIFMC is obliged to prepare a report from Annex to Commission Implementing Regulation (EU) 2018/708 of 17 April 2018 laying down implementing technical standards with regard to the template that money market fund managers shall use for reporting to competent authorities as provided for in Article 37 of Regulation (EU) No 2017/1131 of the European Parliament and of the Council (Text with EEA relevance); Reporting template for money market fund managers for each cash AIF it manages.

DEADLINES AND METHOD OF SUBMISSION
Article 6.
(1) Semi-annual reports of the AIF from Article 3, paragraph 1 of this Rulebook, which are prepared for the period of the first six months of the financial year, are submitted to HANFA within 2 months from the end of the first six months of the financial year.

(2) Audited annual reports of the AIF from Article 3, paragraph 1 of this Rulebook, which are prepared for the financial year, are submitted to HANFA within 4 months from the end of the financial year for AIFs with a public offer and within 6 months from the end of the financial year for AIFs with a private offer.

(3) Additional reports from Article 5, paragraph 1, items 1 and 2 of this Rulebook, for the period of the first six months of the financial year, are submitted to HANFA within 2 months from the end of the first six months of the financial year, while for the period of the financial year they are submitted within 4 months from the end of the financial year for AIFs with a public offer and within 6 months from the end of the financial year for AIFs with a private offer.

(4) The deadline for submitting additional reports from Article 5, paragraph 1, items 3 and 4 of this Rulebook is one month from the expiration of the reporting date from Article 5, paragraph 3 of this Rulebook.

(5) The deadline for submitting the additional report from Article 5, paragraph 1, item 5 of this Rulebook is by 10:00 on the second working day from the day for which the report is submitted.

(6) The deadline for submitting the report on investments of the Economic Cooperation Fund from Article 5, paragraph 10 of this Rulebook is one month from the end of the half-year.

(7) The deadline for submitting the report from Article 12, point b) of this Rulebook is identical to that for the submission of the calculation of the net asset value of that AIF.

(8) The AIFMC is obliged to submit the Report on the Internal Rate of Return of the Economic Cooperation Fund for the period of the fund's operation in accordance with the deadlines for the submission of annual and semi-annual financial reports.

(9) The internal rate of return of an individual investment is submitted within 30 days from the date of divestment (disposal) of the individual investment.

(10) The deadline for submitting the additional report from Article 5, paragraph 18 of this Rulebook is twenty days from the expiration of the reporting period in accordance with Article 37, paragraph 1 of Regulation (EU) No 2017/1131 of the European Parliament and of the Council of 14 June 2017 on money market funds (text relevant to EEA, Official Journal of the European Union L 169/8, 30. 6. 2017.) and Guidelines on reporting to competent authorities in accordance with Article 37 of the Money Market Funds Regulation ESMA34-49-173 HR of 22 June 2020 adopted by the European Securities and Markets Authority (ESMA).

Article 7.
(1) The AIFMC is obliged to submit to HANFA in electronic form, in accordance with HANFA's technical instruction, the reports from Article 3, paragraph 1, Article 5, paragraph 1, items 1, 2, 3, 4, 5, and 7, and Article 5, paragraph 6 of this Rulebook for the AIF it manages, where applicable.

(2) The AIFMC is obliged to submit the annual reports from Article 3, paragraph 1 of this Rulebook for the AIF it manages, together with the auditor's report on the completed audit of the annual reports and the annual report of the AIF, and, where applicable, the report on investments of the Economic Cooperation Fund from Article 5, paragraph 10 and the data from Article 5, paragraph 11 of this Rulebook, in the manner and in accordance with HANFA's technical instruction.

(3) In addition to the reports prescribed by Articles 3, 4, and 5 of this Rulebook, the AIFMC is obliged to submit other documentation or data upon HANFA's request for supervisory purposes or for the performance of other tasks within the competence and scope of HANFA in connection with the operations of the AIF, in the manner prescribed by the provisions of this Article and within the deadline specified in the request.

(4) HANFA may, in case of need, request the AIFMC to submit certain documentation prescribed by this Rulebook in the original or certified copy, regardless of the electronic submission.

PUBLICATION OF REPORTS
Article 8.
(1) The AIFMC is obliged to publish audited annual reports (together with the auditor's report on the completed audit of the annual reports and the annual report of the AIF) and semi-annual reports from Article 3, paragraph 1 of this Rulebook for the AIF with a public offer on its website within the deadlines from Article 6, paragraphs 1 and 2 of this Rulebook.

(2) The AIFMC is obliged to publish audited annual reports and semi-annual reports from Article 3, paragraph 1, items 1, 2, 3, and 4 of this Rulebook for the Venture Capital AIF with a private offer operating in accordance with the Rulebook on the Participation of the Government of the Republic of Croatia in Economic Cooperation Funds ("Official Gazette", No. 47/13) on its website within the deadlines from Article 6, paragraphs 1 and 2 of this Rulebook.

(3) The AIFMC is obliged to make audited annual reports and, where applicable, semi-annual reports from Article 3, paragraph 1, items 1 and 2 of this Rulebook available to investors of the AIF with a private offer, except those referred to in paragraph 2 of this Article, by agreed communication method, within the deadlines from Article 6, paragraphs 1 and 2 of this Rulebook.

(4) The AIFMC is obliged to have published on its website the reports from paragraphs 1 and 2 of this Article for at least the last 5 financial years or from the beginning of the establishment of the AIF with a public offer, if the AIF with a public offer has been operating for less than 5 years.

TRANSITIONAL AND FINAL PROVISIONS
Article 9.
(1) This Rulebook enters into force on January 1, 2023.

(2) The Management Company is obliged to submit the first reports in accordance with Annexes 1, 2, 3, 4, 5, 6, 7, 8, and 9 of this Rulebook for reporting periods starting from January 1, 2023.

(3) Reports for periods until January 1, 2023 are submitted in accordance with Annexes 1, 2, 3, 4, 5, 6, 7, and 8 of the Rulebook on the Structure and Content of Annual and Semi-Annual Reports and Other Reports of Alternative Investment Funds ("Official Gazette" No. 16/19, 82/19, 31/20, 98/20, and 137/21) in the manner prescribed by Article 7 of this Rulebook.

(4) With the entry into force of this Rulebook, the Rulebook on the Structure and Content of Annual and Semi-Annual Reports and Other Reports of Alternative Investment Funds ("Official Gazette" No. 16/19, 82/19, 31/20, 98/20, and 137/21) ceases to be valid.

FINAL PROVISION
The Rulebook on Amendments and Supplements to the Rulebook on the Structure and Content of Annual and Semi-Annual Reports and Other Reports of Alternative Investment Funds (OG 12/24) entered into force on February 8, 2024.

Article 3.
This Rulebook enters into force on the eighth day from the date of publication in the "Official Gazette".

ANNEX 1.
CHART OF ACCOUNTS OF THE AIF
0 Tangible and Intangible Assets
00 – Tangible and Intangible Assets in Preparation (Investments in Progress) and Valuation Adjustment 01 – Tangible and Intangible Assets for Own Use and Valuation Adjustment 02 – Tangible Assets Held for Rental Income and Valuation Adjustment 03 – Tangible Assets Held for Increase in Market Value and Valuation Adjustment 04 – Tangible Assets Held for Sale and Valuation Adjustment 05 – Investments in Business Shares and Valuation Adjustment 06 – Goods and Valuation Adjustment 07 – Other Investments and Valuation Adjustment 1 Cash and Receivables 10 – Cash 11 – Receivables from the sale of transferable securities and money market instruments 12 – Receivables from the sale of other investments 13 – Receivables from dividends, cash deposits, and bond repayments 13x – Receivables from dividends 14 – Receivables from advance payments 15 – Receivables from the Management Company 16 – Receivables from Custodian and Broker 16x – Receivables from Custodian 16y – Receivables from Broker 17 – Other Fund Assets 18 – Receivables from accrued interest 19 – Prepaid expenses of future periods and undelivered revenue 19x – Prepaid expenses of future periods 2 Fund Liabilities 20 – Liabilities from investments in financial instruments 21 – Financial liabilities measured at fair value 21x – Liabilities from returns on borrowed securities 22 – Financial liabilities measured at amortized cost 22x – Liabilities from bank loans received 22y – Liabilities from loans received from other contracting parties 23 – Liabilities to the Management Company 23x – Liability for management fees 23y – Liability for performance fees 24 – Liabilities to Custodian and Broker 24x – Liabilities to Custodian 24y – Liabilities to Broker 25 – Liabilities from allowed fund costs 26 – Liabilities to Unit Holders 26x – Liabilities from unit payments 26y – Liabilities from dividend payments and distributable dividends 27 – Other Fund Liabilities 27x – Liability for advisory service fees 28 – Liabilities for accrued interest 29 – Deferred payment of costs and revenue of future period 29x – Deferred payment of costs 29y – Revenue of future period 3 Financial Assets at Fair Value through Profit or Loss 30 – Transferable Securities and Valuation Adjustment 34 – Derivatives and Valuation Adjustment 35 – Money Market Instruments and Valuation Adjustment 36 – UCITS Fund Units and Valuation Adjustment 37 – Units in Other Undertakings for Collective Investment and Valuation Adjustment 38 – Investments in Deposits and Valuation Adjustment 39 – Other Financial Instruments and Valuation Adjustment 4 Financial Assets at Fair Value through Other Comprehensive Income 40 – Transferable Securities and Valuation Adjustment 43 – Other Financial Instruments and Valuation Adjustment 5 Financial Assets at Amortized Cost 50 – Transferable Securities and Valuation Adjustment 51 – Money Market Instruments and Valuation Adjustment 52 – Investments in Deposits and Valuation Adjustment 53 – Receivables from Loans Granted
and Valuation Adjustment 55 – Other Financial Assets Measured at Amortized Cost 6 Expenses 60 – Negative Exchange Differences 60x – Negative Exchange Differences of Financial Assets at Fair Value through Profit or Loss 61 – Expenses from relations with the Management Company 61x – Management Fee 62 – Unrealized Losses from Investments and Fair Value Adjustment 63 – Realized Losses from Sale of Investments 63x – Realized Losses from Sale of Financial Instruments at Fair Value 63y – Realized Losses from Sale of Financial Instruments at Amortized Cost 63z – Realized Losses from Sale of Other Investments 64 – Impairment of Assets 64x – Losses from Impairment for Expected Credit Losses 65 – Custodian Fee 66 – Transaction Costs 67 – Other Fund Expenses 67x – Interest Expenses 68 – Expenses from Internal AIFMC 69 – Other Fund Costs 69x – Administrative Fees 69y – Professional Fees 69z – Custodial Service Fees 69w – Investment Advisory Service Fees 7 Revenues 70 – Interest Revenues 71 – Positive Exchange Differences 71x – Positive Exchange Differences of Financial Assets at Fair Value through Profit or Loss 72 – Unrealized Gains from Investments and Fair Value Adjustment 73 – Realized Gains from Sale of Investments 73x – Realized Gains from Sale of Financial Instruments at Fair Value 73y – Realized Gains from Sale of Financial Instruments at Amortized Cost 73z – Realized Gains from Sale of Other Investments 74 – Dividend Revenues and Other Profit Shares 74x – Dividend Revenues 74y – Profit Share Revenues 75 – Other Fund Revenues 75x – Revenues from Fees on Borrowed Securities 75y – Rental Revenue 75z – Profit from Reversal of Impairment Reserves for Expected Credit Losses 78 – Other Revenues of Internal AIFMC 79 – Difference between Revenues and Expenses 9