Reassessing split-capitalinvestment trusts

Professional Adviser
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Despite the well-documented failures over the past couple of years, split-caps are still worth investing in, provided you know what to look for and appreciate the risks involved

Split-capital investment trusts have not had many favourable column inches written about them over the last couple of years. This article does not set out to explore in detail the reasons why this sector has seen a number of trusts fail - those have been well documented elsewhere. Nor does it cover what can be done to prevent something similar happening again ' that is being addressed by the FSA with guidance from the Treasury Select Committee and the AITC. Instead I aim to review what zero dividend preference shares (ZDPs) are and why they are still worth investing in, regardless (or indee...

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