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Resolution 11.doc.doc

  1. 1. SECURITIES COMMISSION OF THE REPUBLIC OF LITHUANIA RESOLUTION No. 11 CONCERNING THE RULES FOR THE PREPARATION AND SUBMISSION OF INFORMATION BY MANAGEMENT COMPANIES AND INVESTMENT COMPANIES WITH VARIABLE CAPITAL THE MANAGEMENT OF WHOSE ASSETS HAS NOT BEEN DELEGATED TO A MANAGEMENT COMPANY 23 June 2004 Vilnius The Securities Commission of the Republic of Lithuania has resolved: 1. To approve the Rules on the preparation and submission of information by management companies and investment variable capital companies the management of whose assets has not been delegated to a management company (attached). 2. Recognise as invalidated: 2.1. Resolution No. 9 of 11 April 1997 of the Securities Commission „On the Rules on Filing Annual and Semi-Annual Reports of Investment Companies“(Official Gazette, 1997, No 34-866; 2001, No 54-1936; 2002, No 31-1191); 2.2. Resolution No. 30 of 22 December 1999 of the Securities Commission „On the Rules on the Preparation and Submission of Periodic Reports of Management Companies“(Official Gazette, 2000, No. 2-64). DEPUTY CHAIRPERSON OF THE SECURITIES COMMISSION Eglė Surplienė 1
  2. 2. APPROVED by Resolution No. 11 of 23 June 2004 of the Securities Commission of the Republic of Lithuania THE RULES ON THE PREPARATION AND SUBMISSION OF INFORMATION BY MANAGEMENT COMPANIES AND INVESTMENT COMPANIES WITH VARIABLE CAPITAL THE MANAGEMENT OF WHOSE ASSETS HAS NOT BEEN DELEGATED TO A MANAGEMENT COMPANY I. GENERAL PROVISIONS 1. The Rules on the preparation and submission of information by management companies and investment companies with variable capital the management of whose assets has not been delegated to a management company (further – the Rules) provide for the requirements for contents and the procedure and the time limits of submission to the Securities Commission (further – the Commission) and the public of information of management companies and investment companies with variable capital the management of whose assets has not been delegated to a management company, the procedure for the announcement of the value of accounting units of pension funds and submission of other information related to management companies and investment companies with variable capital the management of whose assets has not been delegated to management companies. 2. The present Rules shall apply to management companies and investment companies with variable capital the management of whose assets has not been delighted to a management company acting in accordance with the Law on Supplementary Voluntary Pension Accumulation and the Law on Collective Investment Undertakings. 3. The legal basis of the Rules are Articles 9, 52, 53 and 54 of the Law on Supplementary Voluntary Pension Accumulation and Articles 10 and 52 of the Law on Collective Investment Undertakings. The Rules have been draw up having regard to the Council Directive of 20 December 1985 on the coordination of laws, regulations and administrative provisions related to undertakings for collective investment in transferable securities (UCITS) (as last amended by Directives No. 2001/107/EC and 2001/108/EC of the European Parliament and the Council of 21 January 2002). 4. Unless the Rules define differently, all concepts of the used in the Rules and annexes thereto shall have the same meaning as in the Law on Supplementary Voluntary Pension Accumulation, the Law on Pension Accumulation, the Law on Collective Investment Undertakings and the Law on Securities Market. 5. Concepts for the purpose of these Rules: 5.1. person related to the management company: 5.1.1. a legal person whose block of shares is held by the management company; 5.1.2. a person controlling the management company; 2
  3. 3. 5.1.3. managers of the management company and their spouses; 5.1.4. a person holding more than 5 percent of votes in the management company; 5.1.5. a person controlled by the management company; 5.2. accounting period – a fiscal year of the management company, the first six months of the fiscal year, the first and the third quarters of the fiscal year, a month of a fiscal year, a day of the fiscal year; 5.3. gross return on investment – return on investment portfolio of a pension fund and a collective investment undertaking for the calculation whereof only trading costs are taken into account; 5.4. total expense ratio – a percentage amount indicating the share of net assets of the fund allocated to cover its management costs. 5.5. net return on investment– return on investment portfolio of the supplementary voluntary pension accumulation fund and the collective investment undertaking for the calculation whereof trading and investment management costs are taken into account; 5.6. net rate on investment of a pension fund accumulating part of the State social insurance contribution for the calculation whereof deductions of pension contributions and pension assets are taken into account; 5.7. investment risk – probability that the expected return on investment portfolio will not be earned; 5.8. standard deviation of return on investment – a statistical risk ratio describing the volatility of return on investment portfolio; 5.9. investment management costs – remuneration to the management company for the asset management services and the pension fund management, paid from the funds of the collective investment undertaking or the pension fund; 5.10. external cash flows – pension contributions, amounts transferred from other pension funds, funds paid from the guarantee fund of the accumulation company, late interest paid by the State Social Insurance Fund, contributions for the purchase of units (shares) of collective investment undertakings, pension benefits, amounts transferred to other pension funds, amounts paid to investors purchasing units (shares) of collective investment undertakings; 5.11. benchmark index - a selected ratio the fluctuation of the value whereof is used as a reference value for the return ration of a collective investment undertakings or pension funds. The benchmark index shall be selected so that it is comparable and is able to truly reflect the investment strategy of the subject, - investment types, proportions and geographic zone, etc. As a benchmark index may be used universally recognised and widely used indexes reflecting the status in the equity or debenture markets, and the indexes reflecting the investment market composed by third countries, the rules on composing whereof are publicly announced; 5.12. supplementary voluntary pension accumulation fund – a pension fund acting in accordance with the Law on Supplementary Voluntary Pension Accumulation; 5.13. soft commissions – the economic benefit received by a management company in connection with the fund‘s payment of commissions on transactions that involve the fund‘s portfolio instruments. The soft commissions shall be typically obtained from the executive broker or a management company of a collective investment undertaking into which the investment has been made; 3
  4. 4. 5.14. pension fund – fund for the supplementary voluntary pension accumulation and the pension fund for the accumulation of part of the State social insurance contribution; 5.15. periodic reports – annual, semi-annual and quarterly reports drafted by management companies and investment companies the management of whose assets has not been delegated to a management company, monthly notifications on the composition of the investment portfolio of a pension fund and daily notifications on the transactions concluded; 5.16. portfolio turnover rate – the rate describing the activity of trading in instruments composing the pension fund or collective investment undertaking; 5.17. trading costs - direct or indirect expenses related to the purchase or sale of investment instruments. These costs shall be composed of commission fees paid to intermediaries, exchanges, etc. 5.18. performance fee – a variable investment management fee the amount whereof depends on the appreciation in the value of the managed investment portfolio; 5.19. umbrella fund – the fund composed of two or more sub-funds pursuing different investment strategies; 5.20. management company – a company acting in accordance with the Law on the Supplementary Voluntary Pension Accumulation or the Law on Collective Investment Undertakings; 5.21. pension fund accumulating part of the State social insurance contribution – a pension fund acting in accordance with the Law on Pension Accumulation. II. GENERAL REQUIREMENTS TO THE CONTENTS AND THE FORM OF SUBMISSION OF PERIODIC REPORTS 6. Periodic reports submitted in written form shall be printed clearly on A4 size white paper and contain no corrections. 7. The data of the report shall be laid down in an understandable and comprehensive manner, and may be illustrated by graphic material. The statements shall be supported by specific relevant projects, concluded contracts, business plans and other estimations. The entire text, including the tables shall be printed with no corrections. All data presented shall refer to the end of the accounting period. 8. The reports shall be filed in the official State language. 9. The information to be submitted by these reports shall be presented according to the requirements established in the Annexes to this Rule, and adhering to the established numbering of items and chapters. Where the information required to be submitted in a specific item (table) of the report is not relevant for the company, the name of the item shall be indicated followed by a dash (blank space of the table). 10. Management companies and investment companies with variable capital the management of whose assets has not been delegated to a management company acting for a period shorter than the indicated accounting period, shall submit the data for the period they have actually in operation. 4
  5. 5. 11. Management companies and investment companies with variable capital the management of whose assets has not been delegated to a management company shall have a right in the reports to present the information other than in the Annexes to this Rule, related to their activities. 12. Each copy of the written report shall be signed by members of the bodies of management, employees and the head of administration of the management company and investment companies with variable capital the management of whose assets has not been delegated to a management company responsible for the accuracy of the submitted information. 13. Where the reports are prepared by the consultants or with the assistance of the consultants, each copy of the report together with the persons referred to in item 12 shall be signed by consultants, identifying parts of the report prepared by the consultants or with the assistance of the consultants and specifying the scope of the liability of the consultants. 14. The signatures of members of the bodies of management, employees and the head of the administration of the management company and the investment company with variable capital the management of the assets whereof has not been delegated to a management company, and the consultants shall constitute a certification that information contained in the report is in accordance with the facts and that there are no omissions capable of producing a material impact upon the activities of the management company or the investment company with variable capital the management of the assets whereof has not been delegated to a management company. 15. The head of the administration of a management company or an investment company with variable capital the management of the assets whereof has not been delegated to a management company shall be responsible for the correctness of only electronically submitted information. III. THE PROCEDURE AND THE TERMS FOR THE DRAWING UP AND FILING WITH THE SECURITIES COMMISSION OF PERIODIC REPORTS 16. Management companies and the investment company with variable capital the management of the assets whereof has not been delegated to a management company shall file their annual report (2 copies) with the Securities Commission not later than within 4 months from the end of the financial year. The annual report of management companies shall be prepared in accordance with the requirements specified in Annex 1 to the Rules. The constituent parts of the annual report of the management company shall be the annual reports of pension funds managed thereby and those of collective investment undertakings which shall be attached as Annexes to the annual reports of the management company. The annual report of an investment company with variable capital the management of assets whereof has not been delegated to a management company shall be mutandis mutandis subject to the requirements of Sections I and VI, and clause 11.2 of Annex 1 and Annex 5 (except Section I). Financial statement of investment company with variable capital the management of assets whereof has not been delegated to a management company shall be submitted in accordance with the legal requirements set forth for this type of undertakings. The report shall be drawn up by first submitting the data specified in Annex 1, and further 5
  6. 6. by submitting data specified in Annex 5. The numbering established in the Annexes shall not apply to the report submitted by investment company with variable capital the management of assets whereof has not been delegated to a management company, and the data submitted in the report shall be numbered in succession. The report of the investment company with variable capital the management of the assets whereof has not been delegated to a management company shall be subject to requirements specified in Annex 5. The original copy of an independent auditor‘s opinion and auditor‘s report shall be attached to the copy of the annual report submitted to the Securities Commission. 17. Management companies and the investment company with variable capital the management of the assets whereof has not been delegated to a management company shall file their semi-annual report (2 copies) with the Securities Commission not later than within 2 months from the end of the six-months period of the financial year. The semi-annual report of a management company shall be drawn up in accordance with the requirements specified in Annex 2. The constituent parts of the semi-annual report of the management company shall be the semi-annual reports of pension funds managed thereby and those of collective investment undertakings which shall be attached as Annexes to the semi-annual reports of the management company. The semi-annual report of an investment company with variable capital the management of assets whereof has not been delegated to a management company shall be mutandis mutandis subject to the requirements of Sections I and V, and clause 9.2 of Annex 2 and Annex 5 (except Section I). Financial statements of an investment company with variable capital the management of assets whereof has not been delegated to a management company shall be submitted in accordance with the legal requirements set forth for this type of undertakings. The report shall be drawn up by first submitting the data specified in Annex 1, and further by submitting data specified in Annex 5. The numbering established in the Annexes shall not apply to the report submitted by investment company with variable capital the management of assets whereof has not been delegated to a management company, and the data submitted in the report shall be numbered in succession. The report of the investment company with variable capital the management of the assets whereof has not been delegated to a management company and the investment fund shall be subject to the requirements specified in Annex 5. 18. Management companies and investment companies with variable capital the management of the assets whereof has not been delegated to a management company shall file their quarterly report (2 copies) with the Securities Commission not later than within 1 month from the end of the quarter (first, third) of a financial year. The quarterly report of management companies shall be prepared in accordance with the requirements specified in Annex 3. The constituent parts of the quarterly report of the management company shall be the quarterly reports of collective investment undertakings, which shall be attached as Annexes to the quarterly reports of the management company. The quarterly report of an investment company with variable capital the management of assets whereof has not been delegated to a management company shall be mutandis mutandis subject to the requirements of Section I of Annex 3 and Annex 5 (except Section I). Financial statements of investment company with variable capital the management of assets whereof has not been delegated to a 6
  7. 7. management company shall be submitted in accordance with the legal requirements set forth in respect of this type of undertakings. The report shall be drawn up by first submitting the data specified in Annex 1, and further - data specified in Annex 5. The numbering established in the Annexes shall not apply to the report submitted by investment company with variable capital the management of assets whereof has not been delegated to a management company, and the data submitted in the report shall be numbered in succession. The report of the investment company with variable capital the management of the assets whereof has not been delegated to a management company and that of the investment fund shall be subject to requirements specified in Annex 5. 19. The annual, semi-annual and quarterly reports of pension funds shall be drawn up in accordance with the rules set forth in Annex 4. The semi-annual and quarterly reports of the pension fund shall be drawn up in accordance with the rules specified in Annex 4 (with an exception of Section V, - the information specified in this Section shall not be provided in semi-annual and quarterly reports), and financial statements referred to in Section VI shall be provided in the semi-annual reports for the accounting six months period and compared with the data of the first six months period of the previous financial year, quarterly reports shall be submitted for the accountable quarter of the year and shall be compared with the data of the previous respective quarter. The management company shall draw up the reports under the present Rules and submit them to the Commission in respect of each fund managed thereby. The report specified in Annex 4 to the present Rule is a constituent part of the annual, semi-annual and quarterly report of the management company. 20. The annual report of the collective investment undertaking shall be drawn up in accordance with the rules set forth in Annex 5 of the present Rule. The semi-annual and quarterly reports of a collective investment undertaking shall be drawn up in accordance with the rules of Annex 5 (with an exception of Section V – information specified in this Section is not provided in semi-annual and quarterly reports), and the financial statements referred to in Section VI shall be submitted in the semi-annual reports for the accountable six months period and shall be compared with the data of the first six months period of the previous financial year, in the quarterly report the financial statements shall be submitted for the accountable quarter and compared with the data of the previous respective quarter. In accordance with the present Rule the management company shall draw up reports and submit them to the Commission in respect of each individual collective investment undertaking managed thereby. The report referred to in Annex 5 of the Rule is a constituent part of the annual, semi-annual and quarterly report of the management company. 21. The management company managing pension funds shall, within 5 working days from the end of the calendar month, notify the Commission of the composition of the investment portfolio of the pension funds managed thereby. The management company shall draw up and submit such notifications in respect of each pension fund managed thereby individually. The notification about the composition of the investment portfolio of the pension fund shall be drawn up in accordance with the requirements of clause 12 of Section IV of Annex 4. 22. The management company managing pension funds shall, by noon, submit to the Commission a notification about all transactions concluded by assets of the pension funds 7
  8. 8. during the previous day. Such notifications shall be drawn up in accordance with the rules set forth in Annex 6. The management company shall draw up and submit such notifications in respect of each individual pension fund managed thereby. 23. The periodic reports referred to in clauses 16, 17 and 18 of the Rule shall be filed with the Commission in written form and electronic format in MS Word format, additional the tables on the composition of the investment portfolios shall be submitted in MS Excel format. Notifications referred to in clauses 21 and 22 of the Rule shall be filed with the Commission in electronic format in MS Excel format only. 24. Written reports shall be mailed to the Commission by mail and delivered personally. 25. Electronic reports shall be sent to the Commission by electronic mail at the address indicated by the Commission or delivered in electronic media. IV. THE CONTENT, PROCEDURE AND TERMS OF SUBMISSION OF REPORTS SUBMITTED TO THE PUBLIC 26. The management company and the investment company with variable capital the management of assets whereof has not been delegated to a management company shall publish the annual and semi-annual reports of established contents and shall publish the value (price) of accounting units (shares) and investment units. 27. The management company and the investment company with variable capital the management of assets whereof has not been delegated to a management company shall publish the annul report of the contents as specified in clause 28 in the national daily indicated in the Articles of Association of the company, and shall publish the full annual report by uploading it in the internet website not earlier than on the 15th and not later than the 30th calendar day from the submission of the annual report to the Commission in any case not later than within four months from the end of the accounting financial year. 28. The annual report of the management company published in the national daily shall contain the balance sheet and the profit (loss) account of the accounting year of the management company drawn up in accordance with the requirements set forth in Section V of Annex 1, and the financial statements of the pension funds managed by the management company and the collective investment undertakings, i.e., the balance sheets of accounting year and the statements of changes in net assets (drawn up, respectively, in accordance, with the requirements of Section VI of Annex 4 and Section VI of Annex 5), and the independent auditor‘s report. The report shall also indicate the annual return on net investment of each undertaking with an indication of the venue for persons interested to get acquainted with the complete annual report. The annual report of an investment company with variable capital the management of the assets whereof has not been delegated to a management company published in the daily shall contain the balance sheet for the accounting year, profit (loss) account of the investment company with variable capital and the independent auditor‘s report. The report shall also specify the annual net return on investment and the information on the place where persons interested may get acquainted with the complete annual report. 8
  9. 9. 29. The management company and the investment company with variable capital the management of the assets whereof has not been delegated to a management company shall publish in their Internet website the semi-annual report not later than within 2 months from the end of the accounting six months period. 30. The management company and the investment company with variable capital the management of assets whereof has not been delegated to a management company shall ensure that their annual and semi-annual reports are made available to the public in venues designated in advance. 31. Copies of the most recent annual reports and the subsequently drawn up semi-annual report must be at no charge provided to the buyers of the investment units (shares) of the collective investment undertakings, if they request so. 32. Upon request of participants of the collective investment undertakings, copies of annual and semi-annul reports shall be provided to them at no charge. Where such reports are provided to the participants of pension funds, a fee may be charged which shall, however not exceeding the costs of production of such copies of the reports. 33. The management company and the investment company with variable capital the management of the assets whereof has not been delegated to a management company shall, within 10 calendar days from the publication of the annual report in the national daily, provide the Securities Commission with a copy of the publication in which the annual report has been published. 34. The pension funds management companies shall on each working day publish in their websites the value of the accounting unit of each pension fund managed thereby (with an indication of the date). The published value of the accounting unit of the pension fund shall indicate the initial value of the accounting unit, the last available value of the accounting unit, the value of the accounting unit preceding the last available value and the change thereof expressed in percent. V. THE PROCEDURE FOR THE CALCULATION OF THE RATIOS PRESENTED IN THE REPORT 35. Total expense ratio (TER) shall be calculated by dividing the total operating costs incurred (accrued) during the respective accounting period from the average net assets value of the same period. 35.1. For the purpose of the calculation of the TER of a pension fund accumulating part of the State social insurance contribution the total operating costs shall include deductions from pension assets and pension contributions. 35.2. For the purpose of the calculation of the TER of a collective investment undertaking and of a supplementary voluntary pension accumulation funds the total operating costs shall include: 35.2.1. investment management costs including performance fee; 35.2.2. administration costs; 35.2.3. fees linked to depository duties; 35.2.4. audit fees; 9
  10. 10. 35.2.5. payments to services providers, providing services to holders of units (shares), including payments to transfer agents, also intermediaries managing the accounting of a collective investment undertaking or a pension fund and providing additional accounting services to holders of units; 35.2.6. payments to lawyers; 35.2.7. any costs related to distribution, issue, redemption and conversion of investment (accounting) units (shares), charged to the assets of a collective investment undertaking or a pension fund; 35. 2.8. registration fees, State duties and other similar taxes; 35.2.9. any other payments to a management company or other persons in accordance with fee-sharing agreement as defined in clause 35.4. 35.3. The total operating costs shall not include: 35.3.1. transaction costs incurred by a collective investment undertaking of a pension fund in connection with transactions on its portfolio. They include brokerage fees, taxes and charges, and the market impact of the transaction taking into account the remuneration of the broker and the liquidity of the concerned assets; 35.3.2. interest on borrowing; 35.3.3. payments incurred because of financial derivative instruments; 35.3.4. distribution and(or) redemption and other fees paid by the investor directly; 35.3.5. soft commissions in accordance with provisions of clause 35.4. 35.4. Where a management company has concluded a fee-sharing agreement with an intermediary or another management company (where it invests the funds of a fund managed thereby into funds managed by another management company), part of the fee received under the fee-sharing agreement shall be included into the total operating expenses for the purpose of calculation of the TER (provided such expenses has not been included into other expenses of a pension fund or a collective investment undertaking directly included for the purpose of calculation of the). Part of the fee received in accordance with the fee-sharing agreement shall be also included into the total operating costs for the purpose of the calculation of TER also in cases when the management company uses the refunded part of the fee to cover the fund‘s operating costs which are to be taken into account when calculating TER. The total operating costs shall also include soft commissions, where the soft commissions are used to cover the costs to be taken into account for the purpose of calculation of TER. 35.5. Where more than 10 percent of net assets of a collective investment undertaking or a pension fund were invested into other collective investment undertakings, publishing their TER in accordance with the rules established in this Section, a synthetic TER equal to such fraction of the investment shall be calculated and disclosed in respect of such undertaking or funds. Such synthetic TER shall be equal to the ratio in which the numerator is equal to the average net assets of a respective period of a pension fund or a collective investment undertaking, and the denominator is derived by adding the total operating costs of the collective investment undertaking or the pension fund which are taken into account for the calculation of their TER, and all other costs related to the investment by the collective investment undertaking or the pension fund into other collective investment undertakings 10
  11. 11. (i.e., costs expressed as the TER of the collective investment undertaking in which the investment has been made and calculated as a share of the investment of the collective investment undertaking or the pension fund in the net assets of that undertaking), also by adding the subscription and redemption fees paid to the target collective investment undertaking. n TOC + ∑ ( qi ⋅ ki ⋅ KBVI i ) + PL Synthetic , where TER = i =1 NAV TOC – total operating costs of the collective investment undertaking or the pension fund taken into account while calculating TER in accordance with clauses 35.1 or 35.2; qi – the ratio showing the share of the investment by the collective investment undertaking or the pension fund in the net assets of the target collective investment undertaking i. This ratio shall be derived by dividing the number of the units (shares) of the collective investment undertaking i by an average number of outstanding units (shares) during the period in respect of which TER is computed; ki – time coefficient showing the period of investment into the collective investment undertaking i of the accounting period in respect of which the collective investment undertaking is calculating its TER (e.g., 60/365, where investment units are held for 60 days, and the collective investment undertaking i is computing its annual TER); KBVIi – total operating costs of the collective investment undertaking i under clauses 35.1 taken into account for the purposes of the computing of TER, equal to the product of TER of the collective investment undertaking i and its NAV, where TER of the fund is computed as a ratio of the costs and the net assets; n – the number of collective investment undertakings targeted by a collective investment undertaking or a pension fund; PL – the subscription and redemption fees related to the investment into other collective investment undertakings paid by the collective investment undertaking or the pension fund during the accounting period; NAV – the average value of the net assets of the collective investment undertaking or the pension fund. 35.6. Where the target collective investment undertaking does not compute the TER in the manner described in this Section, the costs shall be disclosed as follows: 35.6.1. the fraction of the investment in respect of which the calculation of the synthetic TER is impossible shall be disclosed; 35.6.2. the maximum proportion of the management fee of the target collective investment undertaking shall be disclosed; 35.6.3. the synthetic ratio of the total expected costs which shall be calculated as a ratio of costs incorporated into the synthetic TER adding the estimated expected costs of collective investment undertakings not computing their TER (incorporating the maximum management fee, the last available performance fee proportionate to the investment by the 11
  12. 12. undertaking or a fund into that collective investment undertaking), and the average net assets. n m TOC + ∑ (qi ⋅ k i ⋅ KBVI i ) + PL + ∑ (q j ⋅ k j ⋅ TKBVI j ) Expected synthetic TER i =1 j =1 , where = NAV TOC – total operating costs of the collective investment undertakings or the pension funds which in accordance with clause 35.1 shall be incorporated for the purpose of the calculation of TER; KBVIi – total operating costs of the collective investment undertaking i under clause 35.1 included for the purpose of the calculation of TER, equal to the product of the TER and NAV of the fund i, where TER of the fund is calculated as the ratio of the costs and the net assets; n – the number of collective investment undertakings calculating TER and in which a collective investment undertaking or a pension fund invests by acquiring units (shares); m – the number of collective investment undertakings not calculating TER and in which a collective investment undertaking or a pension fund invests by acquiring units (shares) thereof; qj – same as 35.5; ki – same as 35.5; kj – time coefficient showing the period of investment into the collective investment undertaking i during the accounting period in respect of which the collective investment undertaking or a pension fund calculates its TER (e.g., 60/365, where the collective investment undertaking or the pension fund calculate the annual TER, and was holding the investment units of the collective investment undertaking i for 60 days during that year); PL – subscription and redemption fees paid by the collective investment undertakings and the pension funds in relation to investment into all other collective investment undertakings; TKBVIj – total expected operating costs of the collective investment undertaking i which under clause 35.1 should be included for the purpose of calculation of TER, although TER is not calculated. For the purpose of the assessment of the expected operating costs, account shall be taken of most probable cost values, e.g., maximum management fee, the last available performance fee; NAV – the average net assets value of a collective investment undertaking or a pension fund. 35.7. In the case of umbrella funds, the TER should be calculated for each sub-fund. 35.8. If, in the case of multiclass funds shares of different classes are subject to different tax modes, a separate TER should be calculated fore each unit (share) class. 36. Pension fund investment portfolio turnover rate (PTR) computed in accordance with the formula: PTR= [(Total 1 – Total 2)/M]∙100, where Total 1 (value of transactions in portfolio instruments) = X (purchase) + Y (sale); Total 2 (total value of converted pension fund accounting units) = S+T, where S – value of converted accounting units (converting funds into accounting units); T – value of converted accounting units (converting accounting units into funds); M – total average of net assets of the period. 12
  13. 13. 37. Collective investment undertaking (UCITS) investment portfolio turnover rate (PTR) shall be computed in accordance with the formula: PTR= [Total 1 – Total 2) /M]∙100, where Total 1 (value of transactions in portfolio instruments) = X (purchase) + Y (sale); Total 2 (total value of transactions in units (shares) of UCITS) = S+T, where S= value of subscribed units (shares) of the fund; T= value of redeemed units (shares); M= total average net asset value for the period. 38. The procedure for the calculation of return on investment portfolio: 38.1. the gross and net return on investment portfolio shall be calculated on a daily basis in accordance with the following formula: D Ti − Si − NAVi -1 − pi Gross return on investment R i = , NAVi -1 Ti − Si − NAVi -1 − pi − vm Net return on investment R = D , NAVi-1 Si = Pi – Ii + Ki , where RiD – return on investment portfolio on day i; Ti – investment portfolio value as of the end of the day i; NAVi-1 – net assets value at day (i-1); Ii – value of investment/accounting units redeemed/converted during day i; Pi – value of investment/accounting units sold/converted during day i; Ki – receipts from accumulation company guarantee reserve on day i; Si – value of received external cash flows on day i increasing the value of investment portfolio; pi – trading costs on day i; vm – investment management fees on day i. 38.2. The net return on investment on a pension fund accumulating part of the State social security contribution shall be computed in accordance with the formula: D Ti − S ' i − NAVi -1 − ai − at Ri = , NAVi -1 S‘i = Pi – Ii + Ki + Di, where RiD – return on investment portfolio on day i; Ti – value of investment portfolio on the close of day i; NAVi-1 – net assets value on day (i-1); Ii – value of accounting units converted during day i (where the accounting units are converted into funds); Pi – value of accounting units converted on day i (where funds are converted into accounting units); 13
  14. 14. Ki – receipts from guarantee reserve of the pension accumulation company on day i; Di – late interest paid by the State social security fund on day i; S‘i – value of external cash flows received on day i which has appreciated the value of the investment portfolio of the pension fund of the accumulating part of the State social insurance contribution; ai –total deductions from contributions on day i; at – deductions from assets accrued as of day i. The gross return on investment may also be calculated in respect of pension funds accumulating part of the State social insurance contributions in the manner provided in clause 38.1, provided the trading costs can be calculated. 38.3. Where during the accounting period for which the gross and net return on investment are calculated there were any receipts or payments of external cash flows, such cash flows shall be deemed invested or paid as of the beginning of the next day; 38.4. Annual investment return shall be equal: Rannual = ∏ (1 + RiD ) − 1 = (1 + R1D ) ⋅ (1 + R2D ) ⋅ ... ⋅ (1 + RnD ) − 1 , where R annual– annual return on investment portfolio; RDi –return on investment portfolio of day i. 39. Standard deviation of return on investment shall be calculated in accordance with the formula: n ∑ (R i mD − av( R mD )) 2 , σR = t =1 n −1 RmDi = (1 + RDi )n - 1, n av(RmD) = ∑R i=1 mD i , where n σR –standard deviation of return on investment; RmDi –return on investment portfolio of day i recalculated for the year; av(RmD) – arithmetic mean of returns on investment (RmDt) recalculated for the year; n – number of days in the year (period in which the standard deviation of return on investment is computed). VI. FINAL PROVISIONS 40. The Commission in the course of fulfilling its supervisory functions shall have a right to: 40.1. require to submit additional information or explanations; 40.2. having examined the submitted reports, to prepare a commentary, in which shortcomings, misleading information or discrepancies be indicated. The Commission shall send this commentary to the management company or the investment company with variable capital the management of assets whereof has not been delegated to a management 14
  15. 15. company. The reporting companies shall, not later than within 10 calendar days from the receipt of the commentaries, amend and supplement the reports reviewed and file them with the Commission. 41. Having noticed any inaccuracies in the reports already submitted to the Commission the management company or the investment company with variable capital the management of assets whereof has not been transferred to a management company shall without delay notify the Commission thereof and submit to the Commission the amended or supplemented versions of the reports. 42. The Commission shall not be liable for the accuracy and explicitness of the data disclosed in reports. 43. Managers of the management company or an investment company with variable capital the management of the assets whereof has not been delegated to a management company shall be liable for the failure to submit a periodic report or a delayed submission of the report, as well as presentation of incorrect data in the report. 15
  16. 16. Annex 1 Rules on the preparation and submission of information by management companies and investment companies with variable capital the management of whose assets has not been delegated to a management company CONTENTS OF THE ANNUAL REPORT OF THE MANAGEMENT COMPANY I. GENERAL INFORMATION 1. Principal data of the management company: 1.1. name; 1.2. registered office (address); 1.3. telephone, fax numbers, electronic mail address, Internet website address; 1.4. number of the management company licence; 1.5. date, place and code of the registration of the management company with the Register of Legal Entities. 2. Name, address, telephone and fax number of the auditor. 3. The accounting period for which the annual report has been prepared. 4. The beginning and the end of the financial year. 5. Information on the venue and time where one can get acquainted with the report and the underlying documents (financial statements, auditor‘s reports, etc.). 6. Persons responsible for the information provided in the report: 6.1. members of the managing bodies of the management company, employees and the head of the administration responsible for the report (first and last names, their office duties, telephone and fax numbers); 6.2. where the report is prepared by consultants or with the assistance of consultants, the report shall contain: first and last names of the consultants (where the consultant is a legal person, its name, telephone and fax numbers and the names of the persons representing the consultant), specifying which particular parts of the report were prepared by the consultants or which parts of the report were prepared with the assistance of the consultants, indicating the scope of the consultant’s liability. 7. Declaration by the members of the managing bodies, employees, the head of the administration of the management company and the consultants or their representatives that the information contained in the report is in accordance with the facts and that the report makes no omission likely to have an effect on the performance of the management company and the collective investment undertakings (pension funds) managed thereby. Original signatures of the above-mentioned persons must confirm the declaration. 16
  17. 17. II. INFORMATION ON THE MANAGEMENT COMPANY‘S CAPITAL, SECURITIES ISSUED AND SHAREHOLDERS 8. Authorised capital of the management company: 8.1. amount and composition of the authorised capital, its changes in the course of the last three years, and the date of registration of the relevant amendments with the Register of Legal Entities; 8.2. number and nominal value of shares issued by the management company, as well as the rights carried thereby. 9. Amount of the borrowed capital (in percent) as compared to the own capital, purpose of the borrowing, period of the borrowing and the interest rate paid. 10. Amount of own capital invested into the diversified investment portfolio. 11. Shareholders: 11.1. total shareholders and the change in the number of shareholders during the previous three years; 11.2. shareholders holding or managing over 5 percent of the authorised capital of the management company: full names of natural persons, personal codes (to be provided only in the first copy of the Report submitted to the Commission), names and types of the companies, registered office (address), code in the Register of Legal Entities, number of shares held by the shareholders, the percentage share of the authorised capital and votes held by the shareholders, breaking into the percentage of votes belonging to him/her personally and the percentage of votes held in concert with other persons); 11.3. dividends accrued and paid, the period in respect of which the dividends were paid; 11.4. number of shares held by heads and members of administration of the management company and other related persons, specific weight in the authorised capital (in percent). III. DATA ON THE ACTIVITIES OF THE MANAGEMENT COMPANY 12. Membership in associated structures (belonging of the management company to associations of enterprises and organisations, - financial industrial associations, concerns, consortia, associations etc.; description of the association, position of the management company in the association, its participation in the capital of the members of the association and the participation of other members of the association in the authorised capital of the management company, legal basis for the incorporation of the association). 13. Customers of the management company: 13.1. collective investment undertakings (investment companies with variable capital, investment funds, collective investment undertakings of limited distribution): Type of the Name Total Average Annual net Num- Annual Annual collective net annual value return on ber of accrued actually investment assets of net assets investment mem- remuneration paid remu- undertaking bers to the neration to management the mana- company gement company 17
  18. 18. Total: 13.2. pension funds: Type of the Name Total Average Annual net Numb Annual Annual pension net annual value return on er of accrued actually fund assets of net assets investment membe remuneration paid remu- rs to the neration to management the mana- company gement company Total: 13.3. information on management of portfolios of individual customers (persons whose portfolios are managed, main characteristics of individual portfolios, total amount of the portfolios, characteristic customers – natural , legal persons, professional investors, number of customers by types); 13.4. information on the custody and management of units and shares of collective investment undertakings. 14. Intermediaries of public trading in securities with which the management company has concluded the service agreements (names, addresses and types of agreements). 15. Total remuneration paid to the intermediaries of public trading in securities (by intermediaries). 16. Information on delegation of functions (specifying the delegated functions, and subjects to which the functions have been delegated, totals of remuneration paid). 17. Characteristics of the management company (providing data and changes thereof in the course of the 3 previous financial years): list of services rendered in accordance with the types of licensed services, revenues by individual types of services, total managed net assets, number of customers, other relevant information on provided services. 18. Immovable property (description of main buildings and structures – functional purpose, balance sheet and market value, age and conditions; changes thereof, as compared to those of the previous financial year and short description thereof). 19. Risk factors related to the activities of the management company (economic, political, other). 18
  19. 19. 20. Judicial and third party (arbitration) proceedings (information on judicial and arbitration proceedings in the course of the accounting period which are likely to or have affected the performance of the management company). 21. Number of employees, educational background, average monthly wages; changes as compared to the previous financial year, and a short description thereof. 22. Competitors (main competitors in domestic and foreign markets). IV. INVESTMENT ACTIVITY 23. Composition of the investment portfolio (as of end-of-financial year). Name of the State ISIN Num- Total Total Acquisi- Total Market on the Vote share Share issuer code ber nominal acquisition tion market basis of which the in the in the (units) value value value value market value was issuer (%) portfol per unit established (web io (%) address) Equity securities admitted to the Official Trading List Total: Equity securities admitted to the Current Trading List Total: Equity securities traded on other regulated markets Total: New equity securities issued Total: Total equity securities: Name of the State ISIN Num- Total Total Acqui- Total Interest rate Redemp- Share issuer code ber nominal acquisition sition market tion/conver in the (units) value value value value -sion date portfol per unit io (%) Debt securities admitted to the Official Trading List Total: Debt securities admitted to the Current Trading List Total: Debt securities traded on other regulated markets Total: New debt securities issued Total: Total debt securities: Name of State ISIN Num- Manager Total Acqui- Total Source referred to Share of Share UCITS code ber acquisition sition market establish the UCITS in the (units) value value value market value assets portfol 19
  20. 20. per unit (web address) invested io (%) into other UCITS (%) Units (shares) of collective investment undertakings complying with the requirements of Art. 40(1) of the Law on Collective Investment Undertakings Total: Units (shares) of other collective investment undertakings Total: Total UCITS units (shares): Name of the State Name Num- Currency Total Interest rate Expiry date Share issuer of the ber market in the instru (units) value portfol ment io (%) Money market instruments traded on regulated markets Total: Other money market instruments Total: Total money market instruments Credit State Currency Total Interest rate Deposit Share institution market expiry in the name value portfol io (%) Deposits in credit institutions Total: Name of the Na- State Trans- Currency Investment Value Total Name of the Validity Share instrument me action transaction (posi- market market (web term in the of counte (position) tion) of value address) portfol the r-party invest- io (%) iss- ment uer trans- action Derivative investment instruments traded on regulated markets Total: Other derivative investment instruments Total: Name of the Currency Total Interest rate Share bank market in the value portfol io (%) Monies Total: Name Short description Total value Purpose Share in the portfolio 20
  21. 21. (%) Other instruments not specified in Art. 36(1) of the Law on Collective Investment Undertakings Total: V. FINANCIAL STATUS 24. The following financial statements prepared in accordance with the requirements of the Law on the Securities Market shall be submitted: 24.1. statements of the balance sheet and off-balance sheet items account for the last three financial years presented in a comparative table; 24.2. profit (loss) account of the last three financial years presented in a comparative table; 24.3. cash flow statements of the last three financial years presented in a comparative table; 24.4. statement of changes in own capital for the last three financial years presented in a comparative table; 24.5. explanatory letter. 25. Present other information necessary to present a true view of the financial status of the company. 26. The text of the independent auditor‘s report. VI. MANAGEMENT BODIES OF THE COMPANY 27. Organisational structure of the managing bodies of the company. 28. Rights and duties of the bodies of management of the company. 29. Members of the bodies of the company (members of the Supervisory board, the Board, head of the administration of the company, deputy heads of the company, Chief financier): 29.1. names and last names, data on the participation in the authorised capital (percentage share of the authorised capital and votes), position in the management company; 29.2. additionally the following information shall be provided about the chairman of the Board, head of the administration, and the chief financier: educational background, employment and positions in the course of the previous 10 years; 29.3. data on the participation in the activities of other companies, enterprises and organisations (name of the company, enterprise or organisation and position therein) and the capital (name of the company, enterprise or organisation, the percentage share of capital and votes held); 29.4. date on the beginning and the expiry of the term of office of each member of the managing bodies of the company. 30. Names, last names, dates of birth, personal codes (to be provided only in the first copy of the report submitted to the Commission), addresses, telephone numbers, education, name 21
  22. 22. and number of qualification certificates recognised by the LSC held by managers and employees of the management company. 31. Information about payments and loans extended to the members of managing bodies (members of the Supervisory Council, the Board, the administration (head of the administration, his/her deputies, and chief financier): 31.1. information about total and average amounts of tantiemes, salaries and other payments made during the accountable period from profit of the issuer per person (according to the categories mentioned above); 31.2 total amounts of tantiemes, salaries and other payments made during the accountable period from profit to members of the Supervisory Council, the Board and the administration (to every category of the above mentioned persons), received from enterprises wherein the management company’s share in the authorized capital makes up more than 20 per cent; 31.3. loans granted to members of managing bodies over the accountable period, guarantees and warranties given with respect to fulfilment of their obligations. 32. Indicate persons related to the management company: 32.1. persons controlled by the management company and persons controlling the management company (name, company code); 32.2. where the controlled or controlling person is a legal person, provide the information on managers of such persons, - names, last names and their personal codes in one copy of the report submitted to the Commission. 33. Transactions in relation to the assets of the collective investment undertakings or pension funds managed by the management company concluded by persons related thereto (as defined in item 5.1); share held by such persons in the managed portfolios of such collective investment undertakings. VII. UPDATED AND MATERIAL EVENTS IN THE ACTIVITIES OF THE MANAGEMENT COMPANY AND ITS PERSPECTIVES 34. The most recent events in the activity of the management company. 35. Material events in the activity of the management company (characteristics of the material events during the accountable period, their date (period). 36. Activity strategy and the anticipated changes during the immediate financial year. 22
  23. 23. Annex 2 Rules on the preparation and submission of information by management companies and investment companies with variable capital the management of whose assets has not been delegated to a management company CONTENTS OF MANAGEMENT COMPANY’S SEMI-ANNUAL REPORT I. GENERAL PROVISIONS 1. Main data about the management company: 1.1. name; 1.2. registered office (address); 1.3. telephone and fax numbers, e-mail address, Internet website address; 1.4. number of the licence to engage in the management company activity; 1.5. date, place and code of the registration of the management company in the Register of Legal Entities. 2. Accountable period for which the report has been prepared. 3. Information about where and how one can get acquainted with the report and the documents on the basis of which it was prepared (financial statements, auditor’s reports, etc.). 4. Persons responsible for the accuracy of the information submitted in the report: 4.1. members of the managing bodies of the issuer, employees and the head of the administration responsible for the report (first and last names, their office duties, telephone and fax numbers); 4.2. where the report has been prepared by consultants or with the assistance of consultants, the report shall contain: first and last names of the consultants (where the consultant is a legal person, its name, telephone and fax numbers and the names of the persons representing the consultant, specifying which particular parts of the report were prepared by the consultants or which parts of the report were prepared with the assistance of the consultants, indicating the scope of the consultant’s liability). 5. Declaration by the members of the management company’s managing bodies, employees, the head of the administration and the management company’s consultants or their representatives that the information contained in the report is in accordance with the facts and that the report makes no omissions likely to have an effect on operations of the management company or the collective investment undertakings (pension funds) managed thereby. The declaration must be confirmed by original signatures of the above mentioned persons. II. INFORMATION ON THE CAPITAL OF THE MANAGEMENT COMPANY, ITS ACTIVITY AND ISSUED SECURITIES 23
  24. 24. 6. The authorised capital of the management company: 6.1. amount and composition of the authorised capital during the accounting period; 6.2. total number and nominal value of shares issued by the company. 7. Share of the borrowed capital (in percent) in the own capital. 8. Amount of own capital invested into the diversified investment portfolio. 9. Shareholders: 9.1. total shareholders; 9.2. shareholders holding or managing over 5 percent of the authorised capital of the management company: full names of natural persons, personal codes (to be provided only in the first copy of the report submitted to the Commission), names and types of the companies, registered office (address), code of the Register of Legal Entities, number of shares held by the shareholders, the percentage share of the authorised capital and votes held by the shareholders, breaking into the percentage of votes belonging to him/her personally and the percentage of votes held in concert with other persons); 9.3. number of shares held by managers, members of administration and other related persons of the management company, shares of the authorised capital held thereby (in percent). 10. Customers of the management company: 10.1. collective investment undertakings (investment companies with variable capital, investment funds, collective investment undertakings of limited distribution): Type of the Name Total Average net Semi-annual Num- Accrued Actual re- collective net assets value of net return on ber of remuneration to muneration investment assets the period investment parti- the mana- to the mana- undertaking cipants gement gement company company Total: 10.2. pension funds: Type of Name Total Average net Semi-annual Num- Accrued Actual re- pension net assets value net return on ber of remuneration muneration fund assets of the period investment parti- to the to the mana- gement cipants management company company Total: 10.3. information on management of portfolios of individual customers (persons whose portfolios are managed, main characteristics of the individual portfolios, total amount of 24
  25. 25. portfolios, characteristics of individual portfolios, typical customers – natural, legal persons, professional investors, number of customers by types); 10.4. information on custody and management of units or shares of the collective investment undertakings. 11. Intermediaries of public trading in securities with which the management company has concluded the service agreements (names, addresses, nature of the contracts). 12. Total remuneration paid to the intermediaries of public trading in securities for the provision of services (by intermediaries). III. INVESTMENT ACTIVITIES 13. Composition of the investment portfolio end-of-accounting period: Issuer’s State ISIN Numb Total Total Acquisi- Total Market on the Share of Share name code er nominal acquisition tion market basis of which the votes in the in (units) value value value value market value was issuer (%) portfol per unit established (web io (%) address) Equity securities admitted to the Official Trading List Total: Equity securities admitted to the Current Trading List Total: Equity securities traded on other regulated markets Total: New issued equity securities Total: Total equity securities: Issuer’s State ISIN Numb Total Total Acquisi- Total Interest rate Redemp- Share name code er nominal acquisition tion market tion/conver in (units) value value value value -sion date portfol per unit io (%) Debt securities admitted to the Official Trading List Total: Debt securities admitted to the Current Trading List Total: Debt securities traded on other regulated markets Total: New issued debt securities Total: Total debt securities: 25
  26. 26. Name of the State ISIN Num- Manger Total Acquisi- Total Source referred to Share of Share UCITS code ber acquisition tion market establish market assets of in the (units) value value value value (website UCITS portfol per unit address) invested io (%) into other UCITS (%) Units (shares) of the collective investment undertakings complying with the requirements of Art. 40(1) of the Law on Collective Investment Undertakings Total: Units (shares) of other collective investment undertakings Total: Total units (shares) of UCITS: Issuer’s State Name Num- Currency Total Interest rate Expiry date Share name of the ber market in the instru- (units) value portfol ment io (%) Money market instruments traded on regulated markets Total: Other money market instruments Total: Total money market instruments: Name of the State Currency Total Interest rate Deposit Share credit market maturity in the institution value portfol io (%) Deposits in credit institutions Total: Name of the Issu- State Coun- Currency Investment Value of Total Name of the Term of Share instrument er’s terpar- transaction the market market (website validity in the na- ty (position) invest- value address) portfol me ment io (%) trans- action (posi- tion) Derivative investment instruments traded on regulated markets Total: Other derivative investment instruments Total: Name of the Currency Total Interest rate Share bank market in value portfol io (%) 26
  27. 27. Monies Total: Name Short description Total value Purpose Share in portfolio (%) Other instruments not specified in Art. 36(1) of the Law on Collective Investment Undertakings Total: IV. FINANCIAL STATUS 14. Balance sheet and the off-balance sheet items account (the balance sheet and the off- balance sheet items account for the beginning and the end of the accounting period, set out in a comparative table with the data of the first six months period of the previous financial year). 15. Profit (loss) account (profit (loss) account set out in a comparative table with the data of the first six months period of the previous financial year). 16. Cash flow statement. 17. Explanatory letter. V. MANAGING BODIES OF THE COMPANY 18. Members of the managing bodies (members of the Supervisory Board, the Board, the administration (head of the administration, his/her deputies, chief financier): 18.1. positions held, names and surnames, personal codes (in the first copy of the report only), data about participation in the issuer's authorized capital (percentage of the authorized capital and votes held); 18.2. data about participation in the activities of other companies, enterprises and organizations (name of the company, enterprise, or organization and position held), and the capital and votes held in other enterprises (percentage); 18.3. data about the beginning and the end of the term of office of each managing body member. 19. Full names, years of birth, personal codes (to be provided only in copies of the report submitted to the Commission), address, telephone, education background, of persons holding certificates recognised by the Securities Commission, the name and the number of the certificates. 20. Persons related to the management company: 20.1. persons controlling the management company, and controlled thereby; 20.2. where the controlled or controlling person is a legal person, heads of such legal person. 27
  28. 28. 21. Transactions in assets of the collective investment undertakings or pension funds managed by the management company concluded by persons related to the management company (as defined in item 5.1 of the Rules); share in the portfolios of the collective investment undertakings held by such persons. VI. MATERIAL EVENTS IN THE ACTIVITIES OF THE MANAGEMENT COMPANY 22. Material events in issuer's activity (brief characteristics of the material events that occurred during the accountable period, the date (period). 23. Judicial or arbitration proceedings (information on the judicial or arbitration proceedings likely to have or which has had an effect upon the activities of the management company). 28
  29. 29. Annex 3 Rules on the preparation and submission of information by management companies and investment companies with variable capital the management of whose assets has not been delegated to a management company CONTENTS OF THE QUARTERLY REPORT OF THE MANAGEMENT COMPANY I. GENERAL PROVISIONS 1. Principal data of the management company: 1.1. name; 1.2. registered office (address); 1.3. telephone, fax numbers, electronic mail address, Internet website address; 1.4. number of the management company licence; 1.5. date, place and code of the registration of the management company with the Register of Legal Entities. 2. The accounting period for which the quarterly report has been prepared. 3. Persons responsible for the accuracy of the information presented in the report: 3.1. members of the managing bodies of the management company, employees and the head of the administration responsible for the report (first and last names, their office duties, telephone and fax numbers); 3.2. where the report is prepared by consultants or with the assistance of consultants, the report shall contain: first and last names of the consultants (where the consultant is a legal person, its name, telephone and fax numbers and the names of the persons representing the consultant), specifying which particular parts of the report were prepared by the consultants or which parts of the report were prepared with the assistance of the consultants, indicating the scope of the consultant’s liability. 4. Declaration by the members of the management company managing bodies, employees, the head of the administration and the consultants or their representatives that the information contained in the report is in accordance with the facts and that the report makes no omission likely to have an effect on the performance of the management company and the collective investment undertakings (pension funds) managed thereby. Original signatures of the above- mentioned persons must confirm the declaration. II. INFORMATION ON THE ACTIVITIES OF THE MANAGEMENT COMPANY 5. Customers of the management company: 5.1. collective investment undertakings (investment companies with variable capital, investment funds and collective investment undertakings of limited distribution): 29
  30. 30. Type of the Name Total Average Quarterly Num- Accrued Actual collective net value of net net return on ber of remuneration remunera- investment assets assets for the investment partici to the tion to the undertaking period pants management manage- company ment company Total: 5.2. pension funds: Type of the Name Total Average Quarterly Num- Accrued Actual pension net value of net net return on ber of remuneration remunera- fund assets assets for the investment partici to the tion to the period pants management manage- company ment company Total: 5.3. information on management of portfolios of individual customers (persons whose portfolios are managed, main characteristics of the individual portfolios, total amount of portfolios, characteristics of individual portfolios, typical customers – natural, legal persons, professional investors, number of customers by types); 5.4. information on custody and management of units or shares of the collective investment undertakings. 6. Intermediaries of public trading in securities with which the management company has concluded service agreements (names, addresses, nature of the contracts). III. INVESTMENT ACTIVITIES 7. Own capital invested into the diversified investment portfolio. 8. Composition of the investment portfolio as of end-of-accounting period: Issuer’s State ISIN Num- Total Total Acquisit Total Market referred to Share of Share name code ber nominal acquisition ion market establish the votes in in (units) value value value value market value issuer (%) port- per unit (website address) folio (%) Equity securities admitted to the Official Trading List Total: Equity securities admitted into the Current Trading List Total: Equity securities traded on other regulated markets 30
  31. 31. Total: Issued new equity securities Total: Total equity securities Issuer’s State ISIN Num- Total Total Acquisit Total Interest rate Redemp- Share name code ber nominal acquisition ion market tion/conver in (units) value value value value -sion date portfo- per unit lio (%) Debt securities admitted to the Official Trading List Total: Debt securities admitted to the Current Trading List Total: Debt securities traded on other regulated markets Total: Issued new debt securities Total: Total debt securities UCITS name State ISIN Num- Manager Total Acquisit Total Source referred to Share of Share code ber acquisition ion market establish market UCITS in (units) value value value value (website assets port- per unit address) invested folio into other (%) UCITS (%) Units (shares) of collective investment undertakings complying with the requirements oaf Art. 40(1) of the Law on Collective Investment Undertakings Total: Units (shares) of other collective investment undertakings Total: Total units (shares) of UCITS: Issuer’s State Name Numb Currency Total Interest rate Validity Share name of the er market expiry date in the instru (units) value portfol ment io (%) Money market instruments traded in regulated markets Total: Other money market instruments Total: Total money market instruments 31
  32. 32. Name of State Currency Total Interest rate Deposit Share credit market term expiry in the institution value date portfol io (%) Deposits in credit institutions Total: Name of the Issu- State Coun- Currency Investment Value of Total Name of the Validity Share instrument er’s ter- transaction invest- market market (website term in the na- party (position) ment value address) portfol me transact- io (%) tion (posi- tion) Derivative investment instruments traded on regulated markets Total: Other derivative investment instruments Total: Name of the Currency Total Interest rate Share bank market in the value portfol io (%) Monies Total: Name Short description Total value Purpose Share in the portfolio (%) Other instruments not specified in Art. 36(1) of the Law on Collective Investment Undertakings Total: V. FINANCIAL STATUS 9. Balance sheet and the off-balance sheet items account (the balance sheet and the off- balance sheet items account for the beginning and the end of the accounting period, set out in a comparative table with the data of the relevant previous quarter). 10. Profit (loss) account (profit (loss) account set out in a comparative table with the data of the relevant previous quarter). VI. MATERIAL EVENTS IN THE ACTIVITIES OF THE MANAGEMENT COMPANY 11. Material events in the activity of the management company (characteristics of the material events during the accounting period, their date (period)). 12. Judicial and arbitration proceedings (information on judicial and arbitration proceedings which are likely to or have had an effect upon the activities of the management company). 32
  33. 33. Annex 4 Rules on the preparation and submission of information by management companies and investment companies with variable capita; the management of whose assets has not been delegated to a management company CONTENTS OF THE REPORT OF A PENSION FUND I. GENERAL PROVISIONS 1. Name of the pension fund, name of the rules underlying the activities of the pension fund, number of the pension fund regulations assigned by the Securities Commission. 2. Data on the management company: 2.1. name and company code; 2.2. registered office (address); 2.3. telephone, fax numbers, e-mail and website addresses; 2.4. activity licence number; 2.5. full name and position of the manager of the pension fund (person or persons authorised to make investment decisions). 3. Persons responsible for the accuracy of the information provided in the report: 3.1. members of the managing bodies, employees and the head of the administration responsible for the report (names, last names, telephone and fax numbers, electronic mail addresses); 3.2. where the report has been prepared by consultants or with the assistance of consultants, the report shall contain: first and last names of the consultants (where the consultant is a legal person, its name, telephone and fax numbers and the names of the persons representing the consultant, specifying which particular parts of the report were prepared by the consultants or which parts of the report were prepared with the assistance of the consultants, indicating the scope of the consultant’s liability). 4. Name, code, address, telephone and fax numbers of the depository. 5. Accounting period for which the report is prepared. II. CHANGES IN THE NET ASSETS, THE NUMBER AND VALUE OF THE ACCOUNTING UNITS 6. Indicate the changes in the net assets, number and value of the accounting units: Beginning of End of the A year ago Two years ago the accounting accounting (date) (date) period (date) period (date) NAV Value of the 33
  34. 34. accounting units (LTL) Number of the accounting units 7. Indicate the number of the converted accounting units and the total conversion amounts during the accounting period: Number of the accounting Value (LTL) units Number of units (converting the funds into accounting units) Number of units (converting units into funds) III. DEDUCTIONS FROM PENSION ASSETS 8. Deductions from pension assets (to complete the relevant table according to the type of the fund): Deductions from the pension assets of the pension funds accumulating part of the State social insurance contribution (where in the course of the accounting period the amount of the contribution has changed, submit amounts by each rate); in case of calculation of the synthetic expected total expense ratio, additional information specified in item 35.6 of the Rule shall be submitted: Deductions Maximum rates Actually applied Accrued Amount of deductions provided for in deduction rates deductions during the accounting the Rules during the period accounting period From contributions From assets value Changing fees: Change of the fund within the same company more than once a year Change of the pension accumulation company once a year Change of the pension accumulation company more than once a year 34
  35. 35. Change of the pension fund more than once a year Total: TER (total expense ratio): PTR (portfolio turnover ratio): Deductions from the supplementary voluntary pension accumulation fund (where the amount of the contribution has been changed during the accounting period, submit the amounts by each rate): Deductions Fee Amount of the fee % of NAV (LTL) Management fee: Flat-rate fee Performance fee Fees related to depository duties Transaction costs Audit costs Other operating costs (indicate types of costs) Amount of costs included into TER TER % of NAV* Total costs PTR (PTR of the previous equivalent period)** *Total expense ratio (TER) – a percentage ratio showing the average share of net assets of the fund allocated to cover the management costs. These expenses directly reduce the return of the investor’s investment. Notable, that for the purpose of calculation of TER transaction costs are not taken into account. **Portfolio turnover rate – the rate reflecting the volatility of the instruments composing the pension fund portfolio. The funds of high PTR incur higher transaction costs. 9. Fees to intermediaries (indicate the specific intermediaries and amounts of fees paid thereto, as well as services rendered). Indicate the intermediaries related to the management company. 10. Information on all effective fee-sharing agreements and soft commissions (service provider, value of provided services and (or) the nature of the services, etc.). 11. Provide a specific example of the effect of the fees on the final return on investment in respect of a participant (to be submitted only in the annual report). 35
  36. 36. IV. INFORMATION ON THE INVESTMENT PORTFOLIO OF THE PENSION FUND 12. Composition of the investment portfolio at the end of the accounting period: Issuer’s State ISIN Num- Total Total Acquisit Total Market referred to Share of Share name code ber nominal acquisition ion market establish the votes in the in NA (units) value value value value market value issuer (%) (%) per unit (website address) Equity securities admitted to the Official Trading List Total: Equity securities admitted to the Current Trading List Total: Equity securities traded on other regulated markets Total: Issued new equity securities Total: Total equity securities: Issuer’s State ISIN Num- Total Total Acquisit Total Interest rate Redem- Share name code ber nominal acquisition ion market ption/con- in NA (units) value value value value version (%) per unit date Debt securities admitted to the Official Trading List Total: Debt securities admitted to the Current Trading List Total: Debt securities traded on other regulated markets Total: Issued new debt securities Total: Total debt securities Name of State ISIN Num- Manager Total Acquisi- Total Source referred to Share of Share UCITS code ber acquisition tion market establish the UCITS in NA (unit) value value value market value assets (%) per unit (website address) invested in other UCITS (%) Units (shares) of collective investment undertakings complying with the requirements of Art. 40(1) of the Law on Collective Investment Undertakings Total: Units (shares) of other collective investment undertakings Total: Total units (shares) of 36

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