Negative publicity hidingsplit capopportunities

While zeros have been indiscriminately marked down in recent market conditions, they have plenty to offer the careful investor

The recent volatility of world equity markets, and in particular the sharp falls in the aftermath of last month's terrorist attacks in the US, has once again highlighted the risks associated with investing in equities. Split capital investment trusts (split caps), have not been immune in the face of recent equity market volatility and their value has fallen significantly since mid-September. As a result, the share prices of many zero dividend preference shares (zeros) fell dramatically, particularly those that became uncovered or had only low levels of cover. At the end of September, ...