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)

   the names of the fund's investment managers and 1a 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:1

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   1. (a)

      an indication of the terms and duration of their appointment;1

   2. (b)

      the basis for their remuneration; and1

   3. (c)

      any arrangements relating to the termination of their appointment, including compensation payable in the event of termination;1

4. (4)

   [deleted]1

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5. (5)

   the full text of its current published investment policy1; and

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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 (6th edition)4 issued by the Royal Institution of Chartered Surveyors; or

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   2. (b)

      where the valuation does not comply in all applicable respects with the Appraisal and Valuation Standards (6th edition)4 issued by the Royal Institution of Chartered Surveyors, include a statement which sets out a full explanation of such non-compliance; and

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2. (2)

   be carried out by an external valuer as defined in the Appraisal and Valuation Standards (6th edition)4 issued by the Royal Institution of Chartered Surveyors.

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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 Principles P, Q and R and Provisions 32 to 415 UK Corporate Governance Code3 except to the extent that those Principles or Provisions5 relate specifically to non-executive directors.5

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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 to 1a RIS within five business days of the end of each quarter a list of all investments in other listed closed-ended investment funds, as at the last business day of that quarter, 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.1