Active strategy proposed for Edinburgh US Tracker trust

Investors in the Edinburgh US Tracker investment trust are to be consulted on a change to a more active investment policy that could see it rebranded.

The investment trust currently tracks the S&P 500 index. However, under new proposals the closed-end fund would take a more active approach.

The changes have been proposed by the board and Aberdeen Asset Managers.

The new investment policy will aim to provide investors with “above average dividend income and long-term capital growth”.

Under the proposals, the trust will continue to invest in S&P 500 companies, but will be able to invest up to 20% in Canadian and US mid and small cap stocks; it will continue to be benchmarked against the S&P 500.

The trust will aim to provide an initial annual net dividend yield of 3.5%, payable in quarterly dividends. However, during the first twelve months dividends will continue to be paid semi-annually.

The trust’s board believes the move would attract new investors and benefit existing shareholders.