Split caps continue to pay off debt

The boards of split capital investment trusts continue to pay down the debt that has exacerbated the falls in their net asset value. The board of Legg Mason Investors Strategic Assets, a split capital trust with both income and zero shares, has announced plans to repay a further £11.585m in debt. This, according to HSBC, leaves remaining bank debt of £0.5m. In paying down its debt the trust will incur breakage costs, a penalty designed to compensate the lending bank for its loss of revenue, of just under £300,000. The BFS Absolute Return Trust has repaid £2m of its existing bank loa...