Diversification grows in split cap trust sector

The increased issuance of investment trust income shares is producing higher and higher headline yields but with increased amounts of risk. So far this year £254m worth of income shares have been issued, yielding between 8% and 10% per annum. Managers have been able to become more selective when it comes to purchasing the paper. They are testing to see the downside potential of these higher risk issues although they welcome the greater diversification of the market. Richard Prvulovich, manager at Investec Guinness Flight Income Share unit trust, says: "The fund is fully invested so any n...