Regulation on the Structure and Content of Annual, Semi-Annual and Other UCITS Fund Reports – Unofficial Consolidated Text (Official Gazette Nos. 105/17, 98/20, 155/22 and 12/24)

Croatian Financial Services 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 PRAVILNIK ON THE STRUCTURE AND CONTENT OF ANNUAL AND SEMI-ANNUAL REPORTS AND OTHER REPORTS OF UCITS FUNDS (Official Gazette, Nos. 105/17, 98/20, 155/22 and 12/24 – Unofficial Consolidated Text) INTRODUCTORY PROVISIONS
Article 1.
This Regulation governs:
– the accounting, content, format, publication, preparation and delivery methods and deadlines of annual and semi-annual reports by which the management company informs the Croatian Financial Services Agency (hereinafter: the Agency) and other external users about the financial position, operational performance and cash flows of UCITS funds managed by it; – other reports prepared for supervisory purposes; – the content of the monthly business report of a UCITS fund; and – the deadlines and methods for delivering documents with key information. ACCOUNTING RECORDS AND PREPARATION OF ANNUAL AND SEMI-ANNUAL REPORTS
Article 2.
(1) The management company is required to maintain accounting records for a UCITS fund, and prepare and publish annual and semi-annual reports in accordance with the Act on Open-Ended Investment Funds with Public Offer (Official Gazette, Nos. 44/16, 126/19, 110/21, 76/22; hereinafter: the Act), regulations governing accounting and International Financial Reporting Standards. (2) The management company is required to record business events in the accounting records of a UCITS fund using accounts at least within the scope defined by the chart of accounts prescribed in Annex 1 to this Regulation. CONTENT AND FORMAT OF ANNUAL AND SEMI-ANNUAL REPORTS
Article 3.
(1) The annual and semi-annual reports of a UCITS fund consist of the reports specified in Article 205(1) of the Act.
(2) The management company is required to prepare annual reports for a UCITS fund for the financial year and semi-annual reports for the first six months of the financial year.
(3) Notes to the financial statements forming part of the semi-annual reports of a UCITS fund under Article 205(1)(g) of the Act shall cover only significant business events and changes in accounting policies relative to the last published annual reports of the UCITS fund. (4) In the notes to the annual reports under Article 205(1)(g) of the Act, the management company is required to disclose each individual investment:

1. in transferable securities and money market instruments issued by related parties of the management company,
2. in shares of investment funds managed by a related party of the management company,
3. the impact of investments under points 1 and 2 of this paragraph on profit or loss and the financial position of the UCITS fund.
   (5) The management company is required to disclose in the notes to the annual reports under Article 205(1)(g) a summary of fees and other transaction costs incurred during the purchase or sale of financial instruments mediated by a related party of the UCITS fund. (6) Annual reports under paragraph 1 of this Article must be audited by an independent external authorized auditor, and prepared in accordance with the structure and content defined on the forms in Annex 2 to this Regulation. (7) A management company managing a feeder UCITS fund is required to disclose in the notes to the semi-annual and annual financial statements of the feeder UCITS fund information under Article 317 of the Act. (8) Audited annual reports, in case of incorrect calculation of the UCITS fund share price and in case of breach of investment restrictions under Article 259(4) of the Act, must contain damage compensation procedures under Article 110(5) of the Act. (9) When preparing the Cash Flow Statement under Article 205(1)(c) of the Act for a UCITS fund, the management company may use either the direct or indirect method. (10) The management company is required to disclose in the notes to the annual reports of a UCITS fund, in fulfillment of the obligation under Article 257(4) of the Act, the maximum percentage management fee charged from the fund's assets and from the assets of another investment fund into which the fund has invested, for all investments in shares or stocks of investment funds if such investments, on an annual basis, accounted for more than 20% of the average annual net asset value of the UCITS fund. (11) In addition to the reports under paragraph 1 of this Article, the Agency may request additional data, information and explanations for certain items in the annual and semi-annual reports of a UCITS fund from the management company. (12) The management company is required to additionally describe in the annual report of a UCITS fund, besides information prescribed by the Accounting Act:
   – significant economic and macroeconomic trends during the reporting period, which directly or indirectly affected the operations of the UCITS fund, or their impact on the movement of the net asset value of the UCITS fund and individual asset classes, including the UCITS fund'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, as well as activities undertaken to manage exposure to significant risks; – achieved effects and results of the measures and activities from the previous bullet. TOTAL EXPENSE RATIO INDICATOR
   Article 4.
   (1) The Total Expense Ratio indicator, expressed in the UCITS Fund Special Indicators Report, is calculated by summing total costs under Article 247(2) and Article 248(2) of the Act, excluding costs under points 2 and 7, dividing by the average annual net asset value of the UCITS fund, and multiplying by 100. (2) Fees and costs payable to the depositary under Article 248(2)(1) of the Act include fees paid to the depositary for performing depositary functions under Article 218 of the Act. (3) Costs, commissions or fees related to the acquisition or sale of assets under Article 248(2)(2) of the Act refer to costs, regardless of whether payable to the depositary or another entity, incurred exclusively due to the acquisition or sale of assets of a UCITS fund, and may include but are not limited to commissions and fees paid to the investment company, stock exchange, clearing house, trustee, payment transaction costs, etc. (4) The management company is required to periodically monitor the movement of the Total Expense Ratio indicator on an annual basis, at least once quarterly. (5) Based on the data monitoring the movement of the Total Expense Ratio indicator, the management company is required without delay to take measures ensuring compliance with Article 251 of the Act. (6) The management company is required to take measures under paragraph 5 of this Article exclusively within the year for which the Total Expense Ratio indicator is calculated. (7) When taking measures under paragraph 5 of this Article, the management company is required to ensure equal treatment of all investors in a UCITS fund on an annual basis. REPORTING ON UCITS FUND SHARE CLASSES
   Article 5.
   (1) If shares in a UCITS fund grant different rights to their holders (share classes) in accordance with Article 104 of the Act, the management company is required to disclose for each share class of a UCITS fund in the notes to annual and semi-annual reports:
   – details regarding the rights granted by each share class of a UCITS fund; – the number of issued shares per individual share classes of a UCITS fund as at the date of preparation of annual and semi-annual reports and as at the previous financial year-end; – the share price per individual share class of a UCITS fund as at the date of preparation of annual and semi-annual reports and as at the previous financial year-end in cases where rights from a specific share class result in different share prices; – distributed profit per individual share classes of a UCITS fund for annual and semi-annual reporting periods, as well as for the previous annual and semi-annual reporting periods. (2) If rights from a specific share class result in different UCITS fund share prices, the management company does not report data on Net Assets of the Fund, Number of Issued Shares and Share Price of a UCITS fund in the Financial Position Report. (3) Additional reports under Article 6(1)(third and fourth bullet points) of this Regulation must be prepared by the management company for each individual share class of a UCITS fund. ADDITIONAL REPORTS OF A UCITS FUND
   Article 6. (NN 12/24)
   (1) Additional reports of a UCITS fund are:
   – report on realized profits (losses) from the sale of financial instruments of a UCITS fund, whose content is prescribed by Annex 3 to this Regulation; – report on unrealized profits (losses) and asset impairment of a UCITS fund, whose content is prescribed by Annex 4 to this Regulation; – report on shareholders of a UCITS fund, whose content is prescribed by Annex 5 to this Regulation; – report on the top 10 investors of a UCITS fund, whose content is prescribed by Annex 6 to this Regulation; and – report on the currency exposure of a UCITS fund, whose content is prescribed by Annex 7 to this Regulation; – statistical reports. (2) The management company is required to prepare additional reports under paragraph 1, first and second bullet points of this Article for a UCITS fund it manages for the financial year period and for the first six months of the financial year. (3) The management company is required to prepare additional reports under paragraph 1, third and fourth bullet points of this Article for a UCITS fund it manages with balances as at 31 March, 30 June, 30 September and 31 December. (4) The management company