Pension funds and charities are benefiting from the increase in split-capital type investment trus...
Pension funds and charities are benefiting from the increase in split-capital type investment trusts being launched offshore. While on the surface the trusts offer higher yields at the expense of a higher hurdle rate, retail investors receive limited benefits as they are required to pay income tax on any gross income they receive from the trust. However, certain institutional investors are exempt from this. Over the past year split capital trusts have been set up offshore by groups such as Legg Mason, Exeter, CI, BFS and Edinburgh. Geoff Miller, fund manager of the Exeter Equity Growth & ...
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