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 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 official currencies in the Republic
of Croatia (Official Gazette No. 57/2022, 88/2022; hereinafter: Law) and Articles 2 and 3 of the Ordinance on Informing Clients of Financial Service Providers on the Introduction of the Euro as the Official Currency of the Republic of Croatia (Official Gazette No. 90/2022; hereinafter) in the text: Ordinance) hereby publish to investors (clients) the General Notice on the procedure and conditions for recalculating 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 following 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 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 so that the price of shares in the UCITS fund and the price of shares in the AIF, which for the day preceding the day of the introduction of the euro is determined in kuna, on the day of the introduction of the euro is expressed in euros based on the value of the fund’s net assets, which has been converted into euros using a fixed conversion rate, and the resulting amount is rounded by the Law and regulations governing the operation of these funds, or 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 following 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 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 the shares, in an 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 transaction of shares and the aggregated amount of ex-ante information on costs and fees.
Given that the prices of services (fees) of UCITS fund management companies and alternative investment fund management companies are expressed as a percentage, they will not be displayed twice on the business premises and the website during the specified period, while the fixed conversion rate will be displayed in the business premises and the website.