Knowledge is power, but rarely have investors been as powerless as they are in the field of split-...
Knowledge is power, but rarely have investors been as powerless as they are in the field of split-cap investment trusts. This makes the FSA's report last week that it would launch an investigation into the listed investment trusts welcome news. The FSA voiced concern back in August that split-capital investment trusts were holding too many of one another's shares in a so-called 'magic circle' of cross shareholdings, which could become a collapsing house of cards driving up to 40 trusts to technical insolvency if markets deteriorated by 30%. It said individual cross holdings of a split c...
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