High yield index turnover

The skewed nature of the FTSE 350 High Yield Index is creating problems for fund managers who benchmark against it. The index is particularly in use by managers of split capital investment trusts. James Henderson divisional director of investment trusts at Henderson Investors, says: "The FTSE 350 High Yield is not a very good index. It is configured from the FTSE 350, taking the top-yielding companies and weighting them according to market capitalisation. There are a lot of banks and oils that make up the index. As a result of the way it is formed you have to hold very large weightings in...