LR 15.4 Continuing obligations

A closed-ended investment fund must comply with all of the requirements of LR 9 (Continuing obligations) subject to the modifications and additional requirements set out in this section.

A closed-ended investment fund must, at all times, invest and manage its assets:

1. (1)

   in a way which is consistent with its object of spreading investment risk; and

2. (2)

   in accordance with its published investment policy.

A closed-ended investment fund must comply with LR 15.2.4 R at all times.

A closed-ended investment fund must, when making an acquisition of a constituent investment, observe the principles relating to cross-holdings in LR 15.2.5 R.

If a closed-ended investment fund principally invests its funds in another company or fund ("A") and A invests in a portfolio of investments, the closed-ended investment fund must ensure that LR 15.2.6 R is complied with at all times.

LR 15.2.11 R - LR 15.2.13 G apply at all times to a closed-ended investment fund.

A closed-ended investment fund must obtain the prior approval of the holders of the majority of its ordinary equity shares to any material change to its published investment policy.

An existing listed class of equity securitiesmay not be converted into a new class or an unlisted class unless prior approval has been given by the holders of the majority of the closed-ended investment fund's ordinary equity shares in that existing class.

1. (1)

   Unless authorised by the holders of the majority of its shares, a closed-ended investment fund may not issue further shares of the same class as existing shares (including issues of treasury shares) for cash at a price below the net asset value per share of those shares unless they are first offered pro rata to existing holders of shares of that class.

2. (2)

   When calculating the net asset value per share, treasury shares held by the closed-ended investment fund should not be taken into account.