Annual Financial Reports

(a)At least once during each 12-month period, the financial institution administering a fund shall arrange for an audit of the fund by auditors responsible only to the board of directors of the financial institution.

(b)At least once during each 12-month period, the financial institution shall prepare an annual financial report based on the audit required by Subsection

(a)and containing the following information: COL08222024 CH. 162 COLLECTIVE INVESTMENT FUNDS ACT

(1)The fund’s fees and expenses.

(2)A list of the investments in the fund with their costs and market values on the date of closing of the report.

(3)A statement summary of transactions for the year, organized by type of investment, including the following transactions:

(A)a summary of purchases, including costs;

(B)a summary of sales, including profit or loss and any other investment changes;

(C)income to and disbursements from the fund; and

(D)a description of any investments in default.

(c)The financial institution may include in the financial report a description of the fund’s value on previous dates, as well as its income and disbursements during previous accounting periods. The financial institution may not publish in the financial report any predictions or representations as to future performance.

(d)The financial institution shall provide a copy of the annual report (or provide notice that a copy of the report is available upon request or online) to each person or entity who would ordinarily receive a regular periodic accounting statement.

(e)A copy of the annual financial report shall be filed with the Commissioner.