Statutory Instrument 1991 No. 1209

The Common Investment Scheme 1991

(The document as of February, 2008)

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STATUTORY INSTRUMENTS

1991 No. 1209

SUPREME COURT OF ENGLAND AND WALES

COUNTY COURTS

The Common Investment Scheme 1991

Made	17th May 1991

Laid before Parliament

23rd May 1991

Coming into force

13th June 1991

The Lord Chancellor in exercise of the powers conferred on him bysection 42(1) of the Administration of Justice Act 1982^[1], hereby makes the following Scheme:

    1.    This Scheme may be cited as the Common Investment Scheme 1991 andshall come into force on 13th June 1991.

    2.    In this Scheme, unless the context otherwise requires—
"accounting date" and "dividend date" mean the dates respectively specified in Schedule 2 in relation to each fund;


"the Act" means the Administration of Justice Act 1982;


"the Committee" means the Lord Chancellor's Investment Advisory Committee;


"fund" means a common investment fund;


"Funds Rules" means rules made under section 38(7) of the Act;


"unit" means a share in a fund;


"valuation day" means a day appointed by the investment manager in accordance with paragraph 3(2) of Schedule 1 for the valuation of a fund.

    3.    There shall continue to be three funds, known respectively as the"Capital Fund", the "High Yield Fund" and the "Gross Income Fund", for the purpose of the investment of money to be invested incommon investment funds in accordance with Funds Rules.

    4.    An investment manager appointed by the Lord Chancellor shall manageand control the funds to which this Scheme applies.

    5.—(1)  The investment manager shall administer the funds referred to inparagraph 4 in accordance with the following objectives—
 (a) in the case of the Capital Fund, with a view to securing highlong-term capital growth with some growth in annual income but with lessemphasis on the level of annual income; and
 (b) in the case of the High Yield and Gross Income Funds, with a view tosecuring a high annual income with some long-term capital growth;
and the investment manager shall frame an investment strategy (which may be revised as and when the investment manager thinks fit) designed to achieve these objectives.

    (2)  The investment manager shall consult the Committee and the Accountant General before framing or amending the investment strategy referred to above.

    (3)  The investment manager shall ensure that the person responsible for the management of the funds or his deputy attends all meetings of the Committee and supplies to the Committee all information it reasonably requires.

    6.    Dividends payable on the Gross Income Fund shall, in so far as arrangements in that behalf made between the investment manager and the Commissioners of Inland Revenue may permit, be paid without deduction of income tax.

    7.    The provisions of Schedule 1 shall apply to each fund.

    8.    Schedule 2 shall have effect in relation to each fund.

    9.    It shall be the duty of the investment manager to manage and control each fund and, without prejudice to the generality of the said duty, the investment manager shall have the powers and be subject to the duties set out in Schedule 3 in respect of each fund.

    10.    The Common Investment Funds Scheme 1965^[2] and the Common Investment Funds (Amendment) Scheme 1972^[3] are hereby revoked.

Mackay of Clashfern, C.

Dated 17th May 1991

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Notes:

[1] 1982 c. 53.

[2] S.I. 1965/1467.

[3] S.I. 1972/528.

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