Are split capital trusts the solution to the income versus capital dilemma?

Split capital trusts are regarded as higher risk by the industry but it is important to recognise the choice their unusual structure provides for investors, says Simon Crinage, head of investment trusts at J.P. Morgan Asset Management

Investment trusts usually offer just one class of share representing a claim on the performance of the trust in question. Split capital trusts, by contrast, provide different shares with varying entitlements to the assets and income of the trust. Usually there are two types of shares, but there is no reason why there cannot be more. Split capital trusts are established in recognition of the fact different investors can be looking for different aspects of the trust's performance, with some keener on a regular income and others more interested in sharing in capital growth. But althou...