Luckraft to broaden remit on Innovative Growth trust

The board of George Luckraft’s Framlington Innovative Growth trust is seeking shareholder approval to change its investment strategy.

Presently, the £71m vehicle's investments are restricted to companies below the median market cap of the FTSE SmallCap (excluding investment companies) index at the time of purchase.

The change would allow Luckraft to buy any share on the index.

In addition, the manager will now seek to achieve a portfolio yield of greater than 110% of the benchmark yield. The FTSE SmallCap yields 3.64%.

The proposals also include the introduction of a performance fee structure. This will be capped at 3% of the company's NAV for the proceeding three-year period.

Luckraft took over running the trust on 31 December 2009. In the six months to 30 June, its NAV rose 3.8% compared to a decrease in the benchmark of 5.3%.

The group will write to shareholders in August detailing the proposals.