Instruction for Compiling the Monthly Statistical Report of an Investment Fund – IFON, Applicable from 1 May 2018

1 INTRODUCTION

1. The Croatian National Bank (hereinafter: HNB) collects statistical data from investment funds in the Republic of Croatia through this reporting system. The collected data will be used by HNB to prepare official statistics within its competence, such as: financial accounts, balance of payments, monetary and financial institutions' financial statistics, investment funds' financial statistics, securities statistics, and other statistics, as well as for reporting in accordance with the requirements of the European Central Bank (hereinafter: ECB) and the statistical office of the European Union (EUROSTAT).
2. Data from investment funds will be collected via the HANFA secure website.
3. The legal basis for collecting statistical data from investment funds includes: the Act on the Croatian Financial Services Agency (NN, No. 140/05, 154/11 and 12/12), the Act on Open Investment Funds with Public Offer (NN, No. 44/16), the Act on Alternative Investment Funds (NN, No. 16/13 and 143/14), the Rulebook on the structure and content of annual, half-yearly, and other reports of UCITS funds (NN, No. 105/17), and the Rulebook on the structure and content of annual, half-yearly, and other reports of alternative investment funds (NN, No. 105/17).
4. The obligation to collect, compile, and submit statistical data to competent institutions of the European Union is prescribed by ECB Regulation No. 1073/2013 on statistics on the assets and liabilities of investment funds (ECB/2013/38), ECB Regulation No. 1071/2013 on the balance of monetary financial institutions sector concerning money market funds (ECB/2013/33), Regulation (EU) No. 549/2013 of the European Parliament and of the Council on the European System of National and Regional Accounts (ESA 2010), and ECB Guidelines on statistical reporting requirements in the field of financial accounts (ECB/2013/24).
5. An integral part of this Instruction consists of:
    the file "IFON.xls" containing appendices supporting the Instruction, and  the corresponding XSD file which the Investment Fund Management Company (hereinafter: IFMC) must adhere to when compiling the monthly statistical report.

2 REPORTING POPULATION AND INSTITUTIONS OBLIGED TO SUBMIT REPORTS
6. The reporting population consists of all investment funds established in the Republic of Croatia under the Act on Open Investment Funds with Public Offer (NN, No. 44/16) and the Act on Alternative Investment Funds (NN, No. 16/13 and 143/14), which have obtained operational approval from the Croatian Financial Services Agency (hereinafter: HANFA) or are established by a special Act, provided that they were active for at least one day within the reporting period.
7. For the purposes of this reporting system, a newly established investment fund was considered active if it executed its first transaction or issued at least one share/unit.
8. Institutions obligated to compile and submit the monthly statistical report of investment funds as defined by this Instruction are Investment Fund Management Companies (IFMCs) acting as legal representatives of the investment funds they manage.

3 REPORTING RULES
3.1 Reporting Frequency and Data Submission Deadlines
9. The statistical report defined by this Instruction is submitted on a monthly basis.
10. The submission deadline for the monthly statistical report is prescribed depending on the type of investment fund's investments:
1. For money market investment funds, by the end of the 6th working day after the end of the reporting period (i.e., month),
2. For all other types of investment funds, by the end of the 18th working day after the end of the reporting period (i.e., month).
11. For the purposes of this Instruction, working days in a week are understood as Monday through Friday, excluding holidays and public holidays.
12. The IFMC's reporting obligation for a specific investment fund is considered fully and properly fulfilled if, within the prescribed deadline, a report meeting all formal and logical controls described in Chapter 5 (technical part) of this Instruction is received on the HANFA server.

3.2 Type of Report
13. The monthly statistical report provides unaudited data on an unconsolidated basis. The term "unaudited" refers to a report where data have not been revised by the authorized auditor of the reporting institution.
3.3 Data Format and Submission Channel
14. Data are submitted in the form of an XML file. The submission of reporting XML files is carried out via the HANFA secure website, regardless of whether it is an initial submission or a correction. The website address and acceptance interface are defined by HANFA.
3.4 Reporting of Amounts
15. Each line item must contain an amount that, depending on the type of amount, refers to a monetary value or quantity.
16. All amounts are expressed rounded to two decimal places.
17. The amount is generally presented as a positive value, unless the description of modalities explicitly states that the amount is presented with a negative sign.
18. The unit price associated with instrument I007 is exceptionally expressed in the original currency of issuance of the unit.
19. Amounts associated with all other instruments are expressed in Croatian kunas and lipas or as absolute numbers rounded to two decimal places.
20. The Croatian kunas equivalent of amounts for all instruments (except I007) denominated in foreign currency is calculated using the HNB's average exchange rate, applying:

• for balance calculations, the HNB's average exchange rate on the last day of the reporting period,
• for transaction and realized price adjustment calculations, the HNB's average exchange rate on the transaction date,
• for unrealized price adjustment calculations, the monthly average HNB exchange rate during the reporting period,
• for write-offs (deletions), the HNB's average exchange rate on the date of the decision to write off, or if not possible, the monthly average HNB exchange rate.

21. The Croatian kunas equivalent of amounts for all instruments (except I007) contracted with a currency clause is calculated using the contracted exchange rate.

3.5 Reporting Level
22. For instruments Investments in debt securities (A003), Investments in shares (A012), Investments in investment funds (A014), Options (A004 and P003), Forward contracts – maturities (A007 and P006), Warrants (A008 and P007), Issued units/shares of the investment fund (P001), Securities received or given as collateral under repo transactions (I001, I002, I003, I004, I005 and I006), and Unit price (I007), reporting is performed at the ISIN level, i.e., counterparty level.
23. For other instruments, the reporting level is:

1. For resident natural persons collectively using a predefined OIB (Tax ID): 11111111111,
2. For resident self-employed persons collectively using a predefined OIB: 22222222222,
3. For other residents at the counterparty level (i.e., OIB), and
4. For non-residents collectively at the sector and counterparty country level.

4 REPORTING REQUIREMENT
24. The data collected via the monthly statistical report enables regular compilation and presentation of balances, transactions, and other changes in financial instruments of the assets and liabilities of investment funds within the Republic of Croatia.
4.1 Concept of the Reporting Requirement
25. The reporting system is based on a reporting record consisting of a header line and item lines.
26. The header consists of attributes that identify: the report code, reporting date, and reporting unit (i.e., investment fund).
27. The items consist of attributes that identify: the item, instrument and its characteristics, counterparty description, type of amount, and amount.
28. A schematic representation of the reporting record for the monthly statistical report is shown in Appendix 1 (IFON.xls table).
29. The subject of reporting is an amount that needs to be uniquely described by:
1. attributes identifying the type of report and reporting date to which the data relate,
2. a set of attributes identifying the reporting institution,
3. a set of attributes identifying the instrument,
4. a set of attributes identifying the counterparty,
5. an attribute identifying the type of amount for which the amount is submitted.
30. Types of amounts for which data (amounts) are submitted in reporting lines relate to:
1. balances on the reporting date, i.e., on the last day of the reporting month according to the investment fund's accounting policy, whether market values, fair values, or other forms of balance sheet recording. Balances are submitted separately for:
a. principal – undue principal (amount type 01) and due principal (amount type 16), and b. interest/dividend – undue interest/dividend (amount type 02) and due interest/dividend (amount type 03),
2. transactions during the reporting month – transactions include increases and decreases and are presented, like balances, separately for:
a. principal – increase (amount type 04) and decrease (amount type 05), b. interest/dividend – increase (amount type 19) and decrease (amount type 20),
3. price adjustments during the reporting month (amount type 06),
4. write-offs (deletions) during the reporting month are presented separately for:
a. principal (amount type 17), b. interest/dividend (amount type 18),
5. quantities of securities, on the reporting date, i.e., on the last day of the reporting month (amount type 07), and
6. contracted values of financial derivatives representing off-balance sheet items (amount type 08).
31. The IFMC reports for the investment fund in the reporting month an item with an amount for each "Instrument" for which:
1. on the last day of the reporting month, it had a principal or interest/dividend balance greater than zero regardless of amount type (due or undue), and/or
2. during the reporting period, it had a change in principal or interest/dividend balance compared to the previous reporting month due to an increase/decrease transaction, write-off, or price adjustment.
Instruments that did not meet the conditions under 1 and 2 are not reported in the reporting file.
32. The number of items reported by the IFMC via the XML file is variable for an investment fund across different reporting periods depending on investments and fund obligations in each specific reporting month. Similarly, the number of items varies from fund to fund within the same reporting month. Identical values in all fields (except amount) are not allowed to be submitted separately; such items must be aggregated for submission purposes and reported as a single item.

4.2 Header Description
33. This part of the Instruction details the attributes whose values must be entered to enable correct identification and classification of submitted data.
Attribute 1. "Report Code"
34. This attribute enables unique identification of the report.
35. The value for the monthly statistical report is "IFM02", which indicates: IF – investment fund as reporting unit, M – month as reporting frequency, 02 – statistical unaudited unconsolidated report.
Attribute 2. "Reporting Date"
36. This attribute enables unique identification of the reporting date.
37. The date field is filled in the following format: "yyyy-mm-dd" and must refer to the last calendar day of the reporting month.
Attribute 3. "OIB (Tax ID) of Investment Fund"
38. This attribute enables unique identification of the reporting institution, i.e., investment fund. The Personal Identification Number (hereinafter: OIB) assigned to the investment fund by the competent authority is submitted in this attribute.
Attribute 4. "Contact Person's Name"
39. This attribute serves to identify the contact person filling out the report for a specific investment fund. Only one contact person's data can be submitted in this attribute.
Attribute 5. "Contact Person's Phone"
40. This attribute serves for up-to-date and accurate tracking of the contact person's details filling out the report.
41. The phone number with the area code of the IFMC person filling out the report is entered in this attribute.
Attribute 6. "Contact Person's E-mail Address"
42. This attribute serves for up-to-date and accurate tracking of the contact person's details filling out the report.
43. The e-mail address of the IFMC person filling out the report or a generic e-mail address (e.g., back office of the IFMC) is entered in this attribute.
Attribute 7. "Note"
44. Filling out this attribute is optional and is used when the reporting institution wishes to clarify specifics related to data in the file for a specific reporting month.

4.3 Item Line Description
45. This part of the Instruction describes a set of attributes enabling unique identification of the item, instrument and its characteristics, counterparty, and type of amount.
46. Reporting institutions must ensure tracking the chronological sequence of data in preliminary databases so that distribution according to all item attributes is enabled in the monthly report items of the investment fund.
4.3.1 Attributes enabling identification of item, instrument and its characteristics
Attribute 8. "Item Serial Number"
47. This attribute enables unique identification of the item within the reporting file.
48. Each XML file line must contain a unique value for this attribute in the same report, for the same reporting date.
Attribute 9. "Instrument"
49. Each XML file line must contain the value of the "Instrument" attribute entered as one of the predefined instrument codes. Within a single reporting file, multiple lines may contain the same value for the "Instrument" attribute, provided that individual lines differ in at least one field describing the instrument (e.g., counterparty or type of amount). If lines are identical in all fields except the amount, they must be summed for reporting purposes.
50. The value of the "Instrument" attribute is entered by selecting one of the predefined values, where the instrument code consists of four characters. The first character indicates whether the instrument is an asset (A), liability (P), or off-balance sheet item (I). The remaining three characters refer to the instrument code.
51. If a line represents the balance/transaction of a financial instrument with an embedded derivative, where the derivative cannot be presented as a separate financial instrument, the value of the financial instrument is adjusted for the embedded derivative's value and presented together with the corresponding instrument.
Asset Instruments
Value | Name and Description of Instrument
A001 | Transaction Accounts
The instrument "Transaction Accounts" refers to funds in current or checking accounts opened with a resident or non-resident bank in domestic or foreign currency. Funds in current or checking accounts can be immediately converted into currency or are transferable by check, bank order, booking, or similar means, without significant restrictions or penalties. A transaction account is an account opened with a bank based on an account opening agreement, for the purpose of paying its obligations and collecting receivables. This instrument can only be used to show funds in an account with a debit balance. A002 | Deposits Deposits, savings, and term deposits refer to monetary funds of the reporting institution deposited with resident or non-resident banks, savings banks, and housing savings associations, excluding transaction accounts. Unlike funds in current and checking accounts, deposit funds cannot be used for payments at any time. A share in a money market investment fund is not classified as a deposit but as instrument A014 Investments in Investment Funds. A003 | Investments in Debt Securities Debt securities include all debt securities regardless of the contracted original maturity term and regardless of the contracted interest (discounted securities (e.g., treasury bills) or coupon-bearing securities (e.g., most bonds)). Debt securities do not give the investor a share in the issuer's principal, but obligate the issuer to pay the investor a fixed amount of interest over an agreed period and repay the borrowed amount in full upon maturity. Investments in debt securities also include ADRs (American Depositary Receipts) and GDRs (Global Depositary Receipts) issued based on debt securities. A004 | Options An option is a forward contract by which the buyer, by paying a certain compensation (commission or premium), acquires the right to sell or buy a specific financial instrument or commodity of the counterparty at an agreed price on a specified date in the future. For the seller of the option who received compensation, an obligation arises to...