Split caps enjoy lowest volatility

By James Thorneley The spread of betas among investment trusts in the UK Income Growth sector is partly due to the capital structure of the individual trusts. The four trusts with the lowest betas in relation to share price in the sector have split capital structures. After launch shares of split capital trusts are more tightly held than conventional trusts due to the size of geared returns offered by the equity. For instance, the geared ordinary shares of Guinness Flight Extra Income offer a yield of 6.8% while Dunedin Income Growth offers 2.7%. One of the only conventional trusts with ...