The PZU Group has assumed that it exercises control over a mutual fund if the following conditions are jointly met:
- PZU Group companies jointly have the capacity to exercise their authority over the fund to influence the value of the return on investment, with the prerequisites for this capacity being, among others, control exercised over the mutual fund company and a significant share in the total number of votes at the meeting of investors or board of investors;
- the total exposure of PZU Group companies to variable returns from their involvement in a mutual fund is significant, which means that the total share of PZU Group companies in the fund’s net assets equals or exceeds 20% (whereas the fund’s assets that are net assets of unit-linked contracts are not used to determine this total share). If the involvement is less than 20% of the fund’s net assets then the exposure to fluctuations in the fund’s financial results, considered together with decisionmaking powers, imply that such a fund is not controlled by the Group.
PZU Group accepts that a fund will remain consolidated (or unconsolidated, as the case may be) for a period of two quarters following a quarter that closed for the first time with a decline (or increase, as the case may be) of the share in the fund’s net assets below 20% (or above 20%, as the case may be) if this decline (or increase, as the case may be) resulted from deposits (or withdrawals, as the case may be) made by participants from outside the PZU Group.
In the course of its analysis, the PZU Group also takes into account the rights held by other entities, e.g.,the rights and possibilities to convene a meeting of the fund’s participants.
The mutual funds controlled by the PZU Group are consolidated. Their assets are presented in their full amount in the statement of financial position as financial assets by type and classified to the relevant portfolios, while the liability related to the fund’s net assets owned by third-party investors is recognized in “Other liabilities”. If control over a mutual fund is lost then its consolidation ceases and the fund’s assets and liabilities, as well as liabilities to its participants, if any, are excluded from the consolidated statement of financial position. Instead, the participation units or the investment certificates corresponding to the fair value of shares held by PZU Group companies in the fund’s net assets are presented.