LR 15.6 Notifications and periodic financial information

A closed-ended investment fund must notify any change in its taxation status to a RIS as soon as possible.

In addition to the requirements in LR 9.8 (Annual financial report), a closed-ended investment fund must include in its annual financial report:

1. (1)

   a statement (including a quantitative analysis) explaining how it has invested its assets with a view to spreading investment risk in accordance with its published investment policy;

2. (2)

   a statement, set out in a prominent position, as to whether in the opinion of the directors, the continuing appointment of the investment manager on the terms agreed is in the interests of its shareholders as a whole, together with a statement of the reasons for this view;

3. (3)

   a summary of the principal contents of any agreements between the closed-ended investment fund and each of the investment managers, including but not limited to any provisions relating to compensation payable in the event of termination of the agreement;

4. (4)

   the name of the investment managers together with an indication of the terms and duration of their appointment, the basis for their remuneration and any arrangements relating to the termination of their appointment;

5. (5)

   the full text of its investment policy; and

6. (6)

   a comprehensive and meaningful analysis of its portfolio.

A closed-ended investment fund that, as at the end of its financial year, has invested more than 20% of its assets in property must include in its annual financial report a summary of the valuation of its portfolio, carried out in accordance with LR 15.6.4 R.

A valuation required by LR 15.6.3 R must:

1. (1)

   either:

   1. (a)

      be made in accordance with the Appraisal and Valuation Standards (5th edition) issued by the Royal Institution of Chartered Surveyors; or

   2. (b)

      where the valuation does not comply in all applicable respects with the Appraisal and Valuation Standards (5th edition) issued by the Royal Institution of Chartered Surveyors, include a statement which sets out a full explanation of such non-compliance; and

2. (2)

   be carried out by an external valuer as defined in the Appraisal and Valuation Standards (5th edition) issued by the Royal Institution of Chartered Surveyors.

The summary described in LR 15.6.3 R must include:

1. (1)

   the total value of properties held at the year end;

2. (2)

   totals of the cost of properties acquired;

3. (3)

   the net book value of properties disposed of during the year; and

4. (4)

   an indication of the geographical location and type of properties held at the year end.

1. (1)

   This rule applies to a closed-ended investment fund that has no executive directors.

2. (2)

   A closed-ended investment fund's statement required by LR 9.8.6R (6) need not include details about the following principles and provisions of the Combined Code except to the extent that those principles or provisions relate specifically to non-executive directors:

   1. (a)

      Principle B.1 (including Code Provisions B.1.1 to B.1.6): and

   2. (b)

      Principle B.2 (including Code Provisions B.2.1 to B.2.4).

In addition to the requirements in LR 9 (Continuing obligations), half-yearly reports and, if applicable, preliminary statements of annual results must include information showing the split between:

1. (1)

   dividend and interest received; and

2. (2)

   other forms of income (including income of associated companies).

A closed-ended investment fund must notify a RIS of the following:

1. (1)

   within two business days of the end of each calendar month, a list of all investments in other listed closed-ended investment funds, as at the last business day of that month, which themselves do not have stated investment policies to invest no more than 15% of their total assets in other listed closed-ended investment funds; and

2. (2)

   within two business days of the end of each quarter, a list of all investments with a value greater than 5% of the closed-ended investment fund's total assets and at least the 10 largest investments as at the last business day of that quarter.