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LR 15.4 Continuing obligations

Compliance with LR 9

LR 15.4.1RRP

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.

Investment activity and compliance with investment policy

LR 15.4.2RRP

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.

Control of investee companies

LR 15.4.3G

A closed-ended investment fund should have regard to the guidance in LR 15.2.3 G at all times.

Trading activity

LR 15.4.4R

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

Cross-holdings

LR 15.4.5RRP

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.

Feeder funds

LR 15.4.6RRP

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.

Independence

LR 15.4.7RRP

Shareholder approval for material changes to investment policy

LR 15.4.8RRP

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.

LR 15.4.9GRP

In considering what is a material change to the published investment policy, the closed-ended investment fund should have regard to the cumulative effect of all the changes since its shareholders last had the opportunity to vote on the investment policy or, if they have never voted, since the admission to listing.

Conversion of an existing listed class of equity securities

LR 15.4.10RRP

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.

Further issues

LR 15.4.11RRP
  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.

LR 15.4.12R

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LR 15.4.13R

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LR 15.4.14R

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LR 15.4.15R

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LR 15.4.16R

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LR 15.4.17R

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LR 15.4.18R

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LR 15.4.19R

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LR 15.4.20R

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LR 15.4.21R

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LR 15.4.22G

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LR 15.4.23R

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LR 15.4.24R

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LR 15.4.25R

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