Decision on the announcement of the introduction of the EURO

Companies for the management of UCITS funds and companies for the management of alternative investment funds are members of the Association of Investment and Pension Funds of the Croatian Chamber of Commerce (HGK), and also signatories of the Code of Ethics for the introduction of the euro as the official currency in the Republic of Croatia, based on Article 63, paragraph 2 of the Law on the Introduction of the Euro as the official currency in the Republic of Croatia (Official Gazette No. 57/2022; hereinafter: Law) and articles 2 and 3 of the Ordinance on informing clients of financial service providers about the introduction of the euro as the official currency of the Republic of Croatia (Official Gazette No. 90/2022; hereinafter: Rulebook) hereby publish to investors (clients) the General Notice on the procedure and conditions for recalculation of prices and other monetary statements of value. This information applies to all categories of investors (clients) of the signatory's investment funds.
On January 1, 2023, the euro will become the official currency of the Republic of Croatia, and on that day prices and other monetary statements of value will be recalculated free of charge, using a fixed conversion rate in accordance with the rules for recalculation and rounding from the Act.
The fixed conversion rate is established by Council Regulation (EU) 2022/1208 of July 12, 2022 amending Regulation (EC) no. 2866/98 regarding the euro conversion rate for the Republic of Croatia, published in the Official Journal of the European Union, i.e. the Decision on the announcement of the introduction of the euro as the official currency in the Republic of Croatia, adopted by the Government of the Republic of Croatia at the session held on July 21, 2022 (NN 85/22) , and is HRK 7.53450 for one euro.
On January 1, 2023, the recalculation will be carried out based on the net asset value of the funds (net asset value - NAV) using a fixed conversion rate, and the resulting amount will be rounded in accordance with the Law and regulations governing the operation of these funds, that is, the prospectus of an individual fund.
Each investor (client) will retain the same number of shares that he had before the conversion and will be notified of the same through an individual notification in accordance with the Law and Regulations, which will be sent to clients no later than 30 days after the introduction of the euro as the official currency of the Republic of Croatia. The aforementioned individual notification will be sent to clients who, until the date of the introduction of the euro, had contracted a financial product or service in kuna whose value was expressed in kuna, i.e. to those clients whose assets or receivables from financial service providers were expressed in kuna, i.e. who before the introduction bought a financial product in euros or received a financial service in kuna. The recalculation of the fund's assets and the price of the fund's shares will not have an impact on the rights and obligations of investors from the contractual relationship of that fund.
Investors (clients) in the period from September 5, 2022 until December 31, 2023, will be presented with a dual display of monetary values for funds whose value was expressed in kuna (HRK) before January 1, 2023. namely the financial statement of value, i.e. the price of shares in funds, the price of shares for the initial and final balance and the initial and final balance of shares, in the extract on the balance and turnover of shares in the fund, the price of shares and the balance after the transaction in the confirmation of the share transaction and the aggregated amount ex ante information on costs and fees.