Henderson trust seeks objective change

The board of the 64m Henderson Strata investment trust has floated proposals to change its investment objective, lead manager and company name. They will be put to shareholders at an extraordinary general meeting in January.

If approved, the trust’s investment objective will move from UK micro cap to total UK growth and it will be completely unconstrained, says James Henderson, the proposed new lead manager. The name will also change from Henderson Strata to Henderson Opportunities.

Colin Hughes, the former lead manager, will remain within the trust but will concentrate on UK micro caps and existing alternative investment market holdings.

Henderson, who is manager of Lowland Investment Company, says the changes will give the trust more freedom. He adds: “I do believe the value to be in Aim [Alternative Investment Market] at the moment and not so much elsewhere. But some investors felt it was too narrow a brief to be just in fledgling companies.

“At Lowland we can move up and down the cap scale. If we are not finding value in small companies, we are happy to sell them, and it is the same with the big companies.”

The trust will remain mainly invested in Britain and will be geared by no more than 25%. The management fee will be reduced from 0.85% to 0.6% and a capped performance fee will be added.

Whereas Hughes will look for attractive long-term growth stocks, Henderson will look for opportunities elsewhere, particularly recovery stocks and special situations.