Technical Standards for the Submission and Disclosure of Information by Investment Funds

Alameda Juan Pablo II, entre 15 y 17 Av. Norte, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv
CN-04/2017
NDMC-13
TECHNICAL STANDARDS FOR THE SUBMISSION AND DISCLOSURE OF INFORMATION BY INVESTMENT FUNDS Approval: 07/28/2017 Effective: 08/25/2017

THE COMMITTEE OF STANDARDS OF THE CENTRAL RESERVE BANK OF EL SALVADOR, CONSIDERING:
I. That Article 6 of the Investment Funds Law establishes that it is the responsibility of the Central Reserve Bank of El Salvador to issue the Technical Standards necessary for the application of the aforementioned Law.
II. That Article 34 of the Investment Funds Law establishes that it is the permanent obligation of the Manager to disclose any material fact or information regarding the Funds it administers or itself; likewise, the Manager must publish on its website or other medium, a report that contains, among other things, the value of the participation share, commissions and expenses charged to the Fund. Additionally, the value of the Fund's assets and the aggregated structure of its investments must be published each month.
III. That Article 35 of the Investment Funds Law establishes that regarding confidential information, it will be governed by what is provided in the Securities Market Law.
IV. That Article 35, literal h) of the Law on Supervision and Regulation of the Financial System establishes that it is the responsibility of directors, managers and other officials holding management or administrative positions of the members of the financial system, the adequate disclosure of information, the timely availability of relevant information on the performance of their activities, the transfer of operations as well as the economic and financial status for decision-making by their governing bodies.
V. That Article 35, literal m) of the Law on Supervision and Regulation of the Financial System stipulates that directors, managers and other officials holding management or administrative positions of the members of the financial system, must report to the Superintendency all relevant facts, as determined in the technical standards issued for that effect.
VI. That in accordance with Article 99, literals a) and b) of the Law on Supervision and Regulation of the Financial System, the Central Reserve Bank of El Salvador is the institution responsible for the approval of technical standards related to the transparency of information by the supervised entities.
VII. That international best practices establish the need for comprehensive disclosure of any information to the market for investor decisions as an important way to guarantee the protection of their rights, so that the investor has greater capacity to evaluate the associated risks, the potential returns of their investments and thus protect their own interests.

THEREFORE, in virtue of the normative powers conferred by Article 99 of the Law on Supervision and Regulation of the Financial System, AGREES to issue the following:

TECHNICAL STANDARDS FOR THE SUBMISSION AND DISCLOSURE OF INFORMATION BY INVESTMENT FUNDS

CHAPTER I
OBJECT, SUBJECTS AND TERMS

Object
Art. 1.- These Standards have as their objective to regulate the submission and disclosure of information to the participants and to the Superintendency of the Financial System, by the Investment Fund Managers, regarding essential information or relevant facts and information related to the Funds they administer, as well as the disclosure of essential information or relevant facts that affect the legal, economic and financial situation of the Manager and its Funds.

Subjects
Art. 2.- The provisions established in these Standards are applicable to the Investment Fund Managers authorized by the Superintendency of the Financial System for the administration of Investment Funds in accordance with what is established in the Investment Funds Law.

Terms
Art. 3.- For the purposes of these Standards, the terms indicated below have the following meaning:
a) Senior Management: The Chief Executive Officer, General Manager or whoever acts in their place and the executives who report to them; b) Central Bank: Central Reserve Bank of El Salvador; c) Financial Conglomerate: In accordance with Article 113 of the Banking Law, a Financial Conglomerate refers to the set of companies characterized by the fact that more than fifty percent of their respective share capital is owned by a controlling company, which is also a member of the conglomerate; d) Fund: Investment Fund; e) Open Fund: Open Investment Fund; f) Closed Fund: Closed Investment Fund; g) Manager: Investment Fund Manager; h) Business Group: In accordance with Article 5 literal n) of the Securities Market Law, it is that in which a company or set of companies has a common controller, who acting directly or indirectly participates with fifty percent as a minimum in the share capital of each of them or that has common shareholders who, directly or indirectly, are holders of fifty percent as a minimum of the capital of another company, which allows to presume that the economic and financial performance is determined by common interests or subordinate to the group; i) Investor: Natural or legal person interested in acquiring participation shares of an Investment Fund; j) Funds Law: Investment Funds Law; k) Participant: Investor in an Investment Fund; l) Related persons: in accordance with Article 29 of the Funds Law, those regulated in Article 204 of the Banking Law will be considered related persons to the Manager; and (2) m) Superintendency: Superintendency of the Financial System.

CHAPTER II
ESSENTIAL INFORMATION OR RELEVANT FACTS

Essential information or relevant facts
Art. 4.- Essential information or relevant facts is considered to be any concrete fact or non-routine situation, which quantitatively or qualitatively can significantly affect, positively or negatively, the legal, economic and financial situation of the Manager and the Funds it administers as well as the value of the participation shares of the Funds administered by it. The Manager will disclose in each case, if a certain fact or decision constitutes relevant facts in accordance with what is established in their respective internal policies and what is established in these Standards. The disclosure and communication that the Manager carries out regarding the information of relevant facts, must be in accordance with what is established in these Standards.

Disclosure and communication of essential information or relevant facts Art. 5.- The Manager must disclose any essential information or relevant fact regarding the Funds it administers or itself, in accordance with what is established in Articles 6 and 7 of these Standards and will send to the Superintendency no later than the next business day that the fact occurs or is known to the Manager, in accordance with the model established in Annex No. 1 of these Standards. The documentation supporting these facts must be sent to the Superintendency by means of a note signed by the Legal Representative or Attorney-in-fact of the Manager, or whoever is duly accredited before the Superintendency, within a maximum period of 30 days following the disclosure of the essential information or relevant facts.

Without prejudice to what is established in the previous paragraph, in the case that the essential information or relevant facts disclosed by the Manager corresponds to changes related to the Public Stock Register of the Superintendency, the Manager will send the documentation within a maximum period of eight business days from the moment the change is formalized, in accordance with what is established in the "Technical Standards for the Authorization of Constitution, Start of Operations, Registration and Management of Operations of Investment Fund Managers" (NDMC-02).

Essential information and relevant facts related to the Manager Art. 6.- For the purposes of these Standards, examples of essential information or relevant facts about the Manager are any modification or information related to the following aspects:
a) Changes in controlling or relevant shareholders, administrators or legal representatives; b) Changes in the Board of Directors, whether by resignation or appointment of any or all of its members; c) Dividend distribution; d) Strategic alliances with other companies; e) Acquisitions or sales of shares of companies that are part of the business group or financial conglomerate; f) Investments in the capital of other companies, which exceed twenty percent (20%) of the capital of said companies; g) Seizure of assets of the Manager; h) Interventions by supervisory entities; i) Emissions; j) Increase or decrease of the Manager's social capital; k) Appointment of External Auditor; and l) Merger and liquidation process of the Manager. In no case will the above list be considered exhaustive and it will be the Manager's responsibility to treat as essential information or relevant facts that meet the characteristics of what is established in Articles 4, 8 and 9 of these Standards.

Essential information or relevant facts related to the Fund Art. 7.- For the purposes of these Standards, examples of essential information or relevant facts about the Funds administered by the Manager are any modification or information related to the following aspects:
a) Operations carried out with Fund resources with companies that are members of its financial conglomerate, business group or related persons to the Manager; b) Appointment and changes in the composition of the Surveillance Committee; c) Resignation, hiring or substitution of Investment Administrators; d) Calls for meetings of participants, as well as the agreements made by the assembly of participants in their ordinary and extraordinary assemblies; e) Distribution of benefits; f) Form of constitution of the guarantee and changes in its amount; g) Report on the current Risk Classification; h) Signing of a contract with a price supply company; i) Signing of contract with the entity that provides deposit and custody services for securities; j) Start of placement of participation shares of a Fund; k) When the Fund reaches the minimum assets and number of participants in accordance with what is established in the Funds Law or in the internal regulations, as applicable; l) Changes in the company that provides the Manager with the participant registration service; m) Suspension of subscriptions or redemption payment of the Fund's participation shares; n) Acquisition or sale of shares for investments in companies, Securitization Funds or Investment Funds for more than twenty percent (20%) of the capital of these; o) Process of transfer, merger and liquidation of Funds; p) Modifications to the internal regulations and placement prospectuses of the Funds approved by the Superintendency; q) Essential information or relevant facts that the Manager is certain about regarding companies, Securitization Funds, Investment Funds or any emission in whose values the resources of the Funds administered by the Manager are invested; r) Excesses in the investment or borrowing limits of the Fund, in accordance with what is established in the Funds Law, the "Technical Standards for the Investments of Investment Funds" (NDMC-07) approved by the Central Bank through its Committee of Standards, and its respective internal regulations; s) Hiring or resignation of the External Auditor; t) Update of the risk classification of the Fund's emission; u) Appointment of representatives of the beneficiaries of the guarantee; and v) Signing, changes in contracts with commercializing entities and commercializing agents to carry out the commercialization of participation shares. In no case will the above list be considered exhaustive and it will be the Manager's responsibility to treat as essential information or relevant facts that meet the characteristics of what is established in Articles 4, 8 and 9 of these Standards.

CHAPTER III
DISCLOSURE OF ESSENTIAL INFORMATION OR RELEVANT FACTS

Responsible
Art. 8.- The Manager must appoint a person, who will be responsible for the submission of essential information or relevant facts, in accordance with what is established in these Standards. The appointment or modification of said appointment must be approved by the Board of Directors or by an official designated by it and communicated to the Superintendency within a maximum period of two business days, from its appointment. The person who has been appointed as responsible for sending information must have the following powers:
a) Qualify facts of a relevant nature; b) Respond on behalf of the entity to information requests regarding disclosure of essential information or relevant facts made by the Superintendency; c) Have access to the people who make up the Manager's organization, managers, administrators and directors in order to verify the information in cases where it is necessary; and d) Other activities that the Manager's Board of Directors considers necessary.

Internal policies and procedures
Art. 9.- The Manager must have policies and procedures, approved by the Board of Directors, for the identification of relevant facts and for the management of essential information, which include aspects such as:
a) Mechanisms for identifying essential information or relevant facts; b) Security measures for the custody, recording and access to information subject to relevant facts or essential information; c) Policy for the management of relevant fact information in accordance with what is established in these Standards; d) Policy for the management of confidential information in accordance with what is established in Article 35 of the Funds Law, which includes procedures for the identification of confidential information and that incorporates potential events that can be classified as confidential information; and e) Identification of people with access to confidential information; as well as the deduction of responsibilities and behavioral standards of said people. The internal policies and procedures approved by the Board of Directors must be sent to the Superintendency within the first ten business days after their approval or respective modification. The Manager must keep an internal record of the essential information or relevant facts identified and disclosed with their respective supporting documentation, indicating at minimum the information detailed in Annex No. 1 of these Standards.

Disclosure on website
Art. 10.- The Manager must disclose to the investing public or participants on its respective website a highlighted communication of essential information or relevant facts and keep the same available to participants or investors in its offices, no later than the next business day that the fact occurs or is known to it. The Manager will ensure that the essential information or relevant facts disclosed on its website are published on the date it was sent to the Superintendency and the content thereof cannot differ from that informed to it. The Manager cannot disclose essential information or relevant facts through other means without having previously or simultaneously communicated it to the Superintendency in accordance with what is established in these Standards.

Art. 11.- The Manager must keep the essential information or relevant facts published on its website for a period of two years from its communication.
The Manager may communicate to its participants through alternative means or agreed channels, the essential information or relevant facts related to it and the Funds it administers.

Content of the communication
Art. 12.- The content of the communication of the essential information to be disclosed on the website, must be exposed objectively and not generate confusion or distortions. The communication must contain the elements defined in Annex No. 1 of these Standards, and include at the end of the communication the following note: "The truthfulness and timeliness of this Relevant Facts Communication is the responsibility of [Name of the Manager that discloses the relevant fact(s)]".

Confidential information
Art. 13.- In accordance with what is established in Article 35 of the Securities Market Law, the Manager, with the unanimous approval of the directors, may give the character of confidential to relevant facts or essential information, which if known could harm its results and consequently, affect the interest of the Manager and the Funds administered by it. The directors' agreement must be communicated to the Superintendency no later than the next business day after its adoption, through a note signed by the Legal Representative, considering the following information:
a) A clear and detailed description of the relevant fact or essential information considered as confidential information, specifying the dates on which the fact occurred or that it was known to the Manager specifying the reasons why it is requested to keep the notified fact confidential; b) Period during which the information is declared as confidential, as well as the justifications thereof; c) Certification of the Board of Directors agreement where it was approved unanimously to declare one or more relevant facts as confidential or reserved; and d) Names of the people who have access to the information classified as confidential.

In case that the reasons that motivated the classification as confidential information persist, the Manager may maintain said classification for which it must notify the Superintendency again attaching the reasons that motivate maintaining said classification. If before the expiration of the established period the reasons that gave rise to the relevant fact being considered as confidential or reserved disappear, the Manager must inform the Superintendency and, when applicable, the corresponding stock exchange, for its disclosure.

CHAPTER IV
DISCLOSURE OF MODIFICATIONS OF THE CHARACTERISTICS OF AN INVESTMENT FUND

Publication of modifications of Open Funds
Art. 14.- Any change to the Fund that is the product of modifications to the internal regulations, placement prospectus or the subscription share contract model, must have authorization from the Superintendency, which once authorized can be published by the Manager. The modifications approved by the Superintendency that require the publication of a highlighted notice in the newspaper indicated in the Fund's internal regulations, in accordance with what is established in the "Technical Standards for the Authorization, Registration and Operation of Investment Funds" (NDMC-06) approved by the Central Bank through its Committee of Standards, must include the following:
a) Name of the Manager and the Fund; b) Summary of the modifications to be made, which allows identifying the previous situation and the modified situation; c) Date of authorization by the Superintendency and date of effectiveness of the modifications; d) Indications that the participant has the right to redeem their shares without the redemption fee, when applicable, specifying the deadline for its realization; and e) Place and person designated to attend inquiries related to the publication. The modifications will enter into force fifteen days after the day of their publication in accordance with what is established in Article 56 of the Funds Law. Said publication and clarifying notes must be visible and written in a font size that investors and participants can clearly distinguish. The Manager must send to the Superintendency a copy of the publication made no later than three business days after it has been carried out.

Alameda Juan Pablo II, entre 15 y 17 Av. Norte, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv
CN-04/2017
NDMC-13
TECHNICAL STANDARDS FOR THE TRANSMISSION AND DISCLOSURE OF INVESTMENT FUND INFORMATION Approval: 07/28/2017 Validity: 08/25/2017

Obligation to communicate to Open Fund Participants Art. 15.- Prior to the publication of the notice referred to in the previous article, the Manager must send to the participants, through the means they establish to receive communications, a detail of the content of each of the modifications made that allows identifying the previous situation and the modified situation, the effective date of the modifications, the deadline to perform redemptions without the charge of commissions, when this corresponds, place and persons designated to attend consultations related to the modifications.

Transmission of Closed Fund Modifications
Art. 16.- The modifications made to the internal regulations, placement prospectus, subscription quota contract model, and issuance, once authorized by the Superintendence, must be transmitted by the Manager to the Participants through the means they establish to receive communications and a detail of the content of each of the changes, including the following:
a) Name of the Manager and the Fund; b) Summary of the modifications to be made, which allows identifying the previous situation and the modified situation; c) Date of authorization by the Superintendence and the effective date of the modifications; and d) Place and person designated to attend consultations related to the publication.

The modifications will take effect fifteen days after the authorization of the Superintendence to the Manager has been notified, in accordance with article 70 of the Fund Law.

This transmission must be carried out within two business days following the notification of the modification authorization issued by the Superintendence.

Inconsistencies
Art. 17.- In the event of inconsistencies, errors, or omissions in the publications or in the communications to the participants, the Superintendence may require a new publication or notification by the Manager.

Art. 18.- The Manager must establish procedures that demonstrate the sending and receipt of information and notifications to the participants, referred to in articles 15 and 16 of these Standards.

Art. 19.- The disclosures indicated in this Chapter must be published on the Manager's website and kept prominently until the entry into force of the respective modifications, being the responsibility of each Manager to ensure that the internal regulations, placement prospectus, and subscription quota contract model of the Fund available to the public correspond to the version in force in the Superintendence's Registry.

CHAPTER V
DISCLOSURE OF INVESTMENT FUND INFORMATION ON WEBSITE

Disclosure of Open Fund Information
Art. 20.- For each Open Fund it administers, the Manager will have available on its website a copy of the Fund's internal regulations, an extract of it, the placement prospectus and its extract, Work Report, reference on procedures regarding complaints and claims related to the Fund, as well as participant service contacts for consultations.

Additionally, the Manager will include the following information on its website:
a) Name of the Manager; b) Name of the Fund; c) Purpose of the Fund, indicating the destination of most of the investments or the use of the Fund's resources, specifying the type of Fund based on its investment policy; d) Type of Investor to whom the Fund is directed in accordance with the internal regulations; e) Fund's current risk classification; f) Investment Administrator; g) Investment Policy; h) Fund's net asset value; i) Number of Fund participation quotas by class, when applicable, with daily periodicity; j) Participation quota value of the day; k) Participation quota value of the previous day; l) History of the participation quota value, considering at least the last two years, in the case that the Fund does not have two years of operation, the start of operations date will be taken; m) Daily performance, of the last thirty (30), ninety (90), one hundred eighty (180), three hundred sixty (360) days, two (2) years, three (3) years of the Fund. This calculation will be carried out through the discrete daily return moving average of each period applying annualization through a compound interest scheme, considering eight decimals for its calculation and four decimals for its disclosure; (1) n) Applicable commissions according to its internal regulations: subscription and redemption commissions of participation quotas borne by the participant and administration commission detailing the base for its determination; o) Expenses borne by the Fund: The Manager must disclose these expenses in a segregated and detailed manner, specifying the different concepts that compose them, which will be expressed in amounts or percentage terms in accordance with the internal regulations, specifying the periodicity of their application; p) Relevant facts or essential information: relevant facts or essential information disclosed must be included; q) Fund risk factors: identify and explain the main risks inherent to the Fund; r) Reference date of the disclosed information;

s) Monthly and semi-annual Financial Statements; t) Name of the entities commercializing the Fund's participation quotas; and u) Consignment of the following literal reasons:
i. "The Investment Fund (Fund Name) has been registered in the Public Stock Registry of the Financial System Superintendence which does not imply that it recommends the subscription of its quotas and opines favorably on the profitability or quality of said instruments"; and
ii. "The amounts of money received as contributions for an Investment Fund are investments at the account and risk of the investors, they are not bank deposits and do not have the guarantee of the Deposit Guarantee Institute".

Disclosure of Closed Fund Information
Art. 21.- For each Closed Fund it administers, the Manager will have available on its website a copy of the Fund's internal regulations, an extract of it, the placement prospectus and its extract, Work Report, reference on participant service contacts for consultations, procedures regarding complaints and claims related to the Fund.

Additionally, the Manager will include the following information on its website:
a) Name of the Manager; b) Name of the Fund; c) Purpose of the Fund: indicate the destination of most of the investments or the use of the Fund's resources, specifying the type of Fund based on its investment policy; d) Type of Investor to whom the Fund is directed; e) Fund's current risk classification; f) Investment Administrator; g) Investment Policy; h) Fund's net asset value; i) Number of Fund participation quotas; j) Participation quota value and its nominal value; k) Reference of the participation quota price of the stock exchange in which it is registered for negotiation; l) History of the participation quota value considering at least the last two years, in the case that the Fund does not have two years of operation, the start of operations date will be taken; m) Daily performance, of the last thirty (30), ninety (90), one hundred eighty (180), three hundred sixty (360) days, two (2) years, three (3) years of the Fund. This calculation will be carried out through the discrete daily return moving average of each period applying annualization through a compound interest scheme, considering eight decimals for its calculation and four decimals for its disclosure; (1) n) Applicable commissions according to its internal regulations: subscription and redemption commissions of participation quotas borne by the Participant and administration commission detailing the base for its determination; o) Expenses borne by the Fund: The Manager must disclose these expenses in a segregated and detailed manner, specifying the different concepts that compose them, which will be expressed in amounts or percentage terms in accordance with the internal regulations, specifying the periodicity of their application; p) Relevant facts or essential information: relevant facts or essential information disclosed must be included; q) Fund risk factors: identify and explain the main risks inherent to the Fund; r) Reference date of the disclosed information; s) Monthly and semi-annual Financial Statements; t) Name of the entities commercializing the Fund's participation quotas; and u) Consignment of the following literal reasons:
i. "The Investment Fund (Fund Name) has been registered in the Public Stock Registry of the Financial System Superintendence which does not imply that it recommends the subscription of its quotas and opines favorably on the profitability or quality of said instruments"; and
ii. "The amounts of money received as contributions for an Investment Fund are investments at the account and risk of the investors, they are not bank deposits and do not have the guarantee of the Deposit Guarantee Institute".

For Real Estate Closed Funds, it must include the gross or net yield, considering for its elaboration the daily yield generated by the Fund's investments, without considering the administration commission and other expenses charged to the Investment Fund. (2)

Monthly Report
Art. 22.- Managers must publish on their respective website for each Fund administered a report with monthly periodicity, which must include the Fund's net asset value and the aggregated structures of its investments, within five business days following the month being reported, this report must include as minimum the information detailed in Annex No. 2 of these Standards.

Art. 23.- The information referred to in articles 20, 21 and 22 of these Standards may be transmitted by the Manager to its participants, through alternate information sending channels, such as: computer platforms, email, physical mail or any other means that guarantees the confidentiality, integrity and security of the information, considering the means indicated by the participant at the time of the request or upon entry into the Fund.

CHAPTER VI
STATEMENT OF ACCOUNT

Statement of Account
Art. 24.- The Manager must monthly remit a statement of account to each Participant physically or electronically according to the request made by this, said statement of account will include and explain the main aspects produced in the Fund's management since the previously reported period. The statement of account will contain as minimum the following information:
a) Name of the Manager; b) Name of the Fund; c) Period of the information presented in the statement of account and its reference date; d) Code and name of the participant; e) Identification of the currency type; f) Net asset value of the Fund corresponding to the reported period; g) Evolution of the participation quota value taking into consideration the last six months, in the case that the Fund does not have six months of operation, the Fund's start of operations date will be taken; h) Movement of participation quotas that includes the date, amount, number of quotas and value of the participation quotas, for the following operations:
i. At the beginning of the period to be reported;
ii. Contributions made;
iii. Redemptions made;
iv. Movements of participation quotas between classes in the same Fund; and
v. At the end of the period to be reported.
i) Average yields:
i. Yield of the last thirty (30) days of the Fund;
ii. Yield of the last ninety (90) days of the Fund;
iii. Yield of the last one hundred eighty (180) days of the Fund; and
iv. Yield of the last three hundred sixty (360) days of the Fund.
j) Commissions charged: specifying those corresponding to the Fund's administration and to the participant in the reported period, when applicable, which must be expressed as percentages or amounts according to what is defined in the internal regulations; k) Expenses incurred with charge to the Fund in the reported period, expressed as percentages and amounts, clearly including the detail of their concepts; l) Specification of the reception means, office address, telephone, email in which the participant can make consultations, concerns, claims regarding the statement of account or other concerns related to the Fund's administration; m) Reference to the Manager's website, on which the relevant facts or essential information of the Fund are disclosed; and n) Consignment of the following literal reason: "The amounts of money received as contributions for an Investment Fund are investments at the account and risk of the investors, they are not bank deposits and do not have the guarantee of the Deposit Guarantee Institute".

The Manager must include in an annex to the statement of account, the entire investment portfolio by instrument type, including repos, deposit certificates and bank accounts of the Fund, indicating the appreciation amount per instrument at the close of the reported month. In the case of investment in repos, it must be specified to which issuer the values correspond.

To calculate the average yield, it will be carried out through the discrete daily return moving average of each period applying annualization through a compound interest scheme, considering eight decimals for its calculation and four decimals for its disclosure. (1)

Transmission of the Statement of Account
Art. 25.- The Manager must request from the Participant the indication of the physical or electronic means for the receipt of the statement of account, in accordance with what is established in the "Technical Standards for the Authorization, Registration and Operation of Investment Funds" (NDMC-06), approved by the Central Bank through its Standards Committee.

Likewise, the Manager must establish control mechanisms to demonstrate the receipt of the statements of account by the participants.

CHAPTER VII
PERIODIC TRANSMISSION OF INVESTMENT FUND INFORMATION TO THE SUPERINTENDENCE

Information Transmission
Art. 26.- The Manager must transmit to the Superintendence the information relative to the administration of the Funds, according to the following detail:
a) Annex No. 1: "Essential Information or Relevant Facts", which must be transmitted on the next business day after the relevant fact or essential information has occurred; b) Annex No. 2: "Report on the Net Asset Value and Investments of the Investment Fund", with monthly periodicity, which must be transmitted within five business days following the month being reported; c) Annex No. 3: "Information on Operations Carried Out by Entities and Natural Persons Related to the Manager", which must be transmitted on the next business day after the operation has been carried out; d) Annex No. 4: "Information on the Net Asset Value of Investment Funds and Participants", with daily periodicity, which must be transmitted on the next business day following the date corresponding to the information; e) Annex No. 5: "Information on Investments with Resources of Investment Funds", with daily periodicity, which must be transmitted on the next business day following the date corresponding to the information, no later than 12:00 noon; (2) and f) Annex No. 6: "Information on the Total of Participation Quotas and Number of Participants", with daily periodicity, which must be transmitted on the next business day following the date corresponding to the information.

Technical Details of Information Sending
Art. 27.- The Superintendence will transmit to the Manager, within a maximum period of ninety (90) days subsequent to the validity date of these Standards, with a copy to the Central Bank, the technical details related to the sending of the information required in article 26 of these Standards. The information requirements will be limited to the collection of information as regulated in these Standards.

The Manager must implement the necessary mechanisms for the transmission of information mentioned above within a maximum period of one hundred twenty (120) days after receiving the communication of the previous clause, in accordance with the technical details transmitted by the Superintendence.

The Manager must transmit the information relative to Annexes Nos. 1, 2, 3, 4, 5 and 6 electronically from the first business day following, after the placement of the Fund's participation quotas has begun.

CHAPTER VIII
OTHER PROVISIONS AND VALIDITY

Advertising
Art. 28.- The information of the Investment Funds, as well as the advertising that is made about them, whether physical or electronic, disclosed by the Manager about the administered Funds, must not be false nor induce errors to the participants or investors. This information must be clear, truthful, complete, timely and the same must be congruent with the characteristics of the Fund indicated in its internal regulations and its placement prospectus.

All publications must be legible and visible and must consign the following literal reasons:
a) "The Investment Fund (Fund Name) has been registered in the Public Stock Registry of the Financial System Superintendence which does not imply that it recommends the subscription of its quotas and opines favorably on the profitability or quality of said instruments"; and b) "The amounts of money received as contributions for an Investment Fund are investments at the account and risk of the investors, they are not bank deposits and do not have the guarantee of the Deposit Guarantee Institute".

The Manager or the commercializing entity cannot guarantee the result of the investment or profitability to the participants. Guaranteeing profitability will be understood as the offer made by a Manager to all or certain participants, to obtain a certain gain on the invested capital, or to obtain a gain that fluctuates in a certain range, a minimum or a maximum, or the offer to maintain the investment made by the Participant.

Art. 29.- In all advertising for the commercialization of participation quotas, what is regulated on the subject must be considered, according to what is established in the "Technical Standards for the Authorization, Registration and Operation of Investment Funds" (NDMC-06) and the "Technical Standards for the Commercialization of Participation Quotas of Open Investment Funds" (NDMC-10) approved by the Central Bank through its Standards Committee.

Information Disclosure
Art. 30.- Managers, when contracting services with Fund resources with societies members of their financial conglomerate, business group or related persons, must reveal on their website the name of the society providing the service, as well as reveal the type and degree of linkage.

Sanctions
Art. 31.- Non-compliance with the provisions contained in these Standards will be sanctioned in accordance with what is stipulated in the Law on Supervision and Regulation of the Financial System.

Transitory
Art. 32.- In the case of Managers and Funds that were previously authorized prior to the validity of these Standards, they will continue to send information to the Superintendence, which has been requested from their authorization, through the means previously established by it until the end of the adaptation period stipulated in article 27 of these Standards. Likewise, they must continue to disclose the relevant facts or essential information related to the Fund or about itself in accordance with what is established in article 34 of the Fund Law.

From the validity of these Standards, the Manager must disclose on its website the relevant facts or essential information, as well as the information relative to the Funds they administer.

Unforeseen Aspects
Art. 33.- The aspects not provided for in regulatory matters in these Standards will be resolved by the Central Bank through its Standards Committee.

Alameda Juan Pablo II, entre 15 y 17 Av. Norte, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv
CN-04/2017
NDMC-13
TECHNICAL STANDARDS FOR THE TRANSMISSION AND DISCLOSURE OF INFORMATION ON INVESTMENT FUNDS Approval: 07/28/2017 Validity: 08/25/2017

Article 34.- These Standards shall enter into force as of August 25, 2017.

MODIFICATIONS:
(1) Modifications approved by the Standards Committee of the Central Reserve Bank of El Salvador, in Session No. CN-12/2017, dated December 1, 2017, with validity as of December 8, 2017. (2) Modifications approved by the Central Reserve Bank through its Standards Committee, in Session No. CN-12/2018, dated November 21, 2018, with validity as of December 10, 2018.

Alameda Juan Pablo II, between 15 and 17 North Ave., San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv
CN-04/2017
NDMC-13
TECHNICAL STANDARDS FOR THE TRANSMISSION AND DISCLOSURE OF INFORMATION ON INVESTMENT FUNDS Approval: 07/28/2017 Validity: 08/25/2017

Annex No. 1
ESSENTIAL INFORMATION OR RELEVANT FACTS

No. Name Description
1 Manager's Name Corresponds to the name of the Manager.
2 Fund Name Corresponds to the name of the Investment Fund in accordance with its internal regulations.
3 Date of file transmission of information Corresponds to the date on which the Manager transmits the information to the Superintendence.
4 Date of essential information Indicate the date or dates on which the fact, event, or decision-making occurred.
5 Title "COMMUNICATION OF ESSENTIAL INFORMATION OR RELEVANT FACTS".
6 Relevant fact or essential information to communicate Indicate the essential information or relevant fact in accordance with what is established in articles 6 and 7 of these Standards. In the case of operations related to resources of the Funds with member companies of its conglomerate, the Manager must indicate the relationship of the Manager:
a) Member companies of the financial conglomerate; b) Member companies of the business group; and c) Persons related to the Manager.
7 Description The essential information must communicate clearly and completely, specifying if the essential information or relevant facts require any subsequent ratification or legalization process, for the purposes of its official concretization. 8 Value Indicate the amount of the transaction or operation when applicable, consigning the effect that the fact or the information could produce in the Manager or in the Fund it administers.

Annex No. 2
REPORT ON ASSETS AND INVESTMENTS OF THE INVESTMENT FUND

No. Name Description
1 Periodicity Monthly.
2 Report Date Establish the date on which the information was published.
3 Date of essential information Specify the reference month of the information.
4 Manager's Name Name of the Manager.
5 Fund Name Name of the Investment Fund.
6 Custodian Detail the name of the entity in which the values acquired with the Fund's resources are deposited.
7 Object and classification of Fund based on its investment policy (2) Establish the object and classification of Fund based on its investment policy with reference to its offering prospectus. (2) 8 Start of operations date Indication of the date of start of operations of the Investment Fund. 9 Fund's net asset value Indicate the Fund's net asset value, expressed in United States Dollars. 10 Number of participation shares of the Investment Fund Indicate the number of participation shares, detailing them by class if they exist. 11 Number of participants in the Fund Indicate the number of participants that make up the Investment Fund. 12 Share Value (2) The share value must be indicated. (2) 13 Nominal Value Indicate the nominal value of the participation share (Closed Fund). 14 Market price of the participation share Indicate the market price of the participation share of the stock exchange in which it is registered for negotiation (Closed Fund). 15 Evolution of share value Indicate the evolution of the share value over the last six months.

Annex No. 2

No. Name Description
16 Return on participation share Indicate the return on the share over the last six months.
This calculation will be carried out through the daily discrete return moving average of the last six months, applying annualization through a compound interest scheme. Considering eight decimals for its calculation and four decimals for its disclosure. (1) 17 Fund Risk Value at Risk (VaR) indicator. 18 Commissions Indicate the commissions to be charged by the Manager, indicating their periodicity, the basis for determining their calculation and if they are charged to the Fund or to the investor, must be expressed as percentages or amounts, in accordance with the Fund's internal regulations. 19 Expenses Indicate the expenses that will be charged to the Fund, clearly detailing their concepts and will be expressed as percentages or amounts according to what is defined in the Fund's internal regulations. 20 Risk Classification Classification granted to the Fund by a rating agency, specifying the reference date of the risk classification report. 21 Investment policy Summary of the objectives and investment policies of the Investment Fund. 22 Composition of the Investment Fund (2) Indicate the type of instrument: (2) a) Portfolio composition by type of investment:

Deposits (include savings, current and fixed-term deposit accounts);
Fixed income (debt);
Variable income (stocks);
Open National Investment Funds;
Closed National Investment Funds;
Securitization values;
Foreign values;
Foreign Investment Funds (include ETFs);
Repos; and
Real estate.

Annex No. 2

No. Name Description
22 Composition of the Investment Fund (2) b) Portfolio composition by economic sector:

Agriculture, livestock, forestry and fishing;
Manufacturing industry;
Electricity, gas and water;
Construction;
Commerce, Restaurants and Hotels;
Transportation, Storage and Communications;
Financial and Insurance Activities; and
Other sectors.
c) Portfolio composition by issuer, indicating the ten main asset issuers; d) Information by investment terms: 0-180 days; 181-365 days; 1 to 3 years; 3 to 5 years; more than 5 years; e) Portfolio composition by risk classification; f) Portfolio composition by currency type; and g) Portfolio composition by issuer's country of origin. 23 Amount by type of instrument Specify the amount by type of instrument detailed in item 22. 24 Participation Percentage Corresponds to the participation percentages of assets that make up the Fund's investment portfolio by type of instrument. 25 Contact Information Specify place and person designated to handle inquiries about the Fund's information.

Annex No. 3
INFORMATION ON OPERATIONS CARRIED OUT BY ENTITIES AND NATURAL PERSONS RELATED TO THE MANAGER

No. Name Description
1 Periodicity The next business day after the operation was carried out.
2 Transmission serial number Serial number of transmission of information for each resending.
3 Date of information Corresponds to the reference date of the information.
4 Date of information transmission Corresponds to the date on which the Manager transmits the information to the Superintendence.
5 Manager's Name Name of the Manager.
6 Fund Name Corresponds to the name of Investment Funds in accordance with the respective internal regulations.
7 Social name or natural person The name or social name of the company member of the financial conglomerate, Fund or business group or entities or natural persons related to the Fund is placed. 8 Participant code Corresponds to the code assigned in the Fund. 9 Relationship Type of Relationship: Shareholders; Members of the Board of Directors; Administrators; Employees of the Manager; spouse or cohabitant, relatives within the fourth degree of consanguinity and second of affinity, person with commercial or business relationship, with Shareholders, Directors, Administrators, Managers or Employees of the Manager. Additionally, entities that are members of the financial conglomerate and the business group, companies with which business relationships are maintained, must be included. 10 Type of operation carried out Corresponds to the operations or transaction that the Fund has carried out with the entity, Fund or natural person related to the Manager. 11 Investment or transaction value Corresponds to the value of the investment or transaction in the Fund on the date of the information, which will be expressed in United States Dollars. 12 Participation percentage Corresponds to the ratio of investment amount between the Fund's net asset value expressed in percentage points (%).

Annex No. 4
INFORMATION ON THE ASSETS OF INVESTMENT FUNDS AND PARTICIPANTS

No. Name Description
1 Periodicity Daily.
2 Transmission serial number Serial number of transmission of information for each resending.
3 Date of information Corresponds to the date of the information.
4 Manager's Name Name of the Manager.
5 Fund Name Corresponds to the name of the Investment Fund approved by the Superintendence.
6 Concept Information related to the Fund and movement of participation shares of the day being reported.
7 Total value of assets Corresponds to the total value of the Fund's assets, duly valued and expressed in United States Dollars.
8 Total value of liabilities Corresponds to the total value of the Fund's liabilities duly valued and expressed in United States Dollars.
9 Operations with repurchase agreement Indicate the transacted value of the sale repo operation.
10 Operations with resale agreement Indicate the transacted value of the purchase repo operation.
11 Fund's Net Asset Value Corresponds to the value of the result of subtracting from the value of assets, its liabilities and expressed in United States Dollars.
12 Share classes Indicate the classes of participation shares of an Open Fund.
13 Nominal value of participation share Corresponds to the nominal value of the participation share for a Closed Fund.
14 Share value of the day Corresponds to the value of the participation share of the reported day, expressed in United States Dollars.
15 No. of participation shares of the previous day Corresponds to the total number of participation shares with which the previous day closed (Open Funds).
16 No. of participation shares subscribed on the day No. of shares entered into the Investment Fund, as a result of contributions or subscriptions made by the Participant (Open Funds). 17 Value of share subscriptions on the day Corresponds to the total subscription amount expressed in United States Dollars of the day (Open Funds).

Annex No. 4

No. Name Description
18 No. of participation shares redeemed Corresponds to the number of participation shares redeemed on the day (Open Funds).
19 Value of share redemptions on the day Corresponds to the total amount of redemptions expressed in United States Dollars carried out on the day (Open Funds).
20 No. of participation shares on the day Corresponds to the total number of participation shares with which the day closed.
21 No. of participants in the Fund Corresponds to the number of participants with which the day closed.

Annex No. 5
INFORMATION ON INVESTMENTS WITH RESOURCES FROM INVESTMENT FUNDS

Deposits in savings accounts;
Deposits in current accounts 1;
Time deposits;
Marketable securities;
Investment certificates of financial entities;
Public bonds;
Bonds of local private financial entities;
Bonds of foreign private financial entities;
Bonds of private non-financial entities;
Bonds of foreign private non-financial entities;
Foreign public bonds;
Foreign private bonds;
Investments in Securitization Funds;
Other fixed income instruments of public entities;
Other fixed income instruments of private entities;
Other fixed income instruments of private non-financial entities;
Shares;
Exchange Traded Funds (ETFs) and other participations;
Investments in Investment Funds;

1 Include all current accounts that have been opened for the Funds. For accounts that accrue interest, the amounts, terms and rate associated with each of the amounts or tranches that make up the account balance must be detailed.

Annex No. 5

No. Name Description
7 Type of instrument 20. Investments in foreign Investment Funds;
21. Other variable income investments;
22. Operations with resale agreement;
23. Financial instruments pledged as collateral; and
24. Derivatives used for hedging.
8 Emission code of the value Indicate the mnemonic name or the one that allows it to be identified in the investment register. In the case of bank accounts and deposits, the certificate number or the account number assigned by the Bank must be indicated. 9 Tranche or series of the emission Indicate the tranche or series of the instrument's emission acquired by the Fund. For the case of bank accounts and deposit certificates, it must indicate the account number assigned by the bank or the deposit certificate number. 10 Currency in which the instrument was issued Indicate the currency of the issuance. 11 Full name of the issuer Indicate the name of the issuer. 12 Status of the instrument Indicate if the instrument is available or reported. 13 Issuer's country of origin Indicate the issuer's country of origin. 14 Negotiation date Date of acquisition of the instrument. 15 Type of operation Purchase, purchase repos. In the case of derivatives, it must be indicated if it is a forward, futures, swap or options contract. 16 Instrument maturity date DD/MM/YYYY, indicate the date of maturity of the issuance or settlement of the operation. 17 Nominal value Indicate the nominal value of the instrument. 18 Transacted value Indicate the value at which the instrument was acquired in the market. 19 Market value Indicate the market value of the instrument. 20 Market price Price used to value the instrument 21 Source of market value Indicate the name of the price source:
a) Specialized Agent in Securities Valuation authorized by the Superintendence; b) International stock exchange or financial information systems recognized by the Superintendence; or c) Own methodology.

Annex No. 5

No. Name Description
22 Term Indicate the term of the instrument or operation.
23 Days to instrument maturity Indicate the days for the instrument's maturity.
24 Interest rate Interest percentage defined by the issuer of the title issuance.
25 Accrued interest Indicate the accrued interest of the instrument.
26 Payment periodicity Indicate the payment periodicity.
27 Risk classification Indicate the risk classification of the issuance, when it has it.
28 Rating agency Indicate the name of the rating agency.
29 Custodian Indicate the entity in which the instrument or value is deposited.
30 Quotation (2) Indicate if the Instrument quotes or does not quote on a Stock Exchange. (2) 31 Portfolio Standard Deviation (2) Indicate the volatility of the investment portfolio. (2)

Annex No. 6
INFORMATION ON THE TOTAL NUMBER OF PARTICIPATION SHARES AND NUMBER OF PARTICIPANTS

No. Name Description
1 Periodicity Daily.
2 Transmission serial number Serial number of transmission of information for each resending.
3 Date of information Corresponds to the date of the information.
4 Manager's Name Indicate the name of the Manager.
5 Fund Name Indicate the name of the Fund.
6 Concept Corresponds to the Information on the total participations and number of participants by range.
7 Range No. of ranges Types of Range (US$)
1 0.00 to 1,000.00
2 1,000.01 to 5,000.00
3 5,000.01 to 8,500.00
4 8,500.01 to 25,000.00
5 25,000.01 to 50,000.00
6 50,000.01 to 75,000.00
7 75,000.01 to 100,000.00
8 100,000.01 to 500,000.00
9 500,000.01 to 1,000,000.00
10 More than 1 million
8 Type of persons Specify the type of persons: Natural or Legal.
9 No. of shares Indicate the total number of participation shares that are within each of the ranges.
10 Share class Indicate the information by share class, for the case of Open Funds.
11 No. of participants Indicate the number of participants that are within each of the ranges.
12 Participant balance Corresponds to the total investment amount of the participants for each of the ranges.
13 Participation Indicate the percentage of participation of the total investment amount of the participants for each of the ranges in relation to the Fund's net asset value.

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