LR 15.6 Notifications and periodic financial information
Changes to tax status
A closed-ended investment fund must notify any change in its taxation status to a RIS as soon as possible.
Annual financial report
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)
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)
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)
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
1 - (4)
[deleted]1
1 - (5)
the full text of its current published investment policy1; and
1 - (6)
a comprehensive and meaningful analysis of its portfolio.
Annual financial report additional requirements for property investment entities
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)
either:
- (a)
be made in accordance with the Appraisal and Valuation Standards (6th edition)4 issued by the Royal Institution of Chartered Surveyors; or
4 - (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
4
- (a)
- (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.
4
The summary described in LR 15.6.3 R must include:
- (1)
the total value of properties held at the year end;
- (2)
totals of the cost of properties acquired;
- (3)
the net book value of properties disposed of during the year; and
- (4)
an indication of the geographical location and type of properties held at the year end.
3Statement regarding compliance with UK Corporate Governance Code3
- (1)
This rule applies to a closed-ended investment fund that has no executive directors.
- (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
3
Annual financial and half yearly report
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:
Notification of1 cross-holdings1
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
1