The A-Z of splits

Like all investments, split capital investment trusts (splits) are no different they start with 'A': Assets. Quite simply, assets are the investment holdings of the trust. They can vary from ordinary shares in companies through to fixed interest stocks, such as gilts or corporate bonds. Fund managers tend to put them in the conventional categories such as geographical location, or by type. Most splits, however, need some income producing assets so as to provide a return for investors in their income shares. Some splits have been criticised for investing in other splits to provide this inco...