Split caps still offer good investment opportunities

Although the problems relating to split-cap investment trusts only concerned one subset of this sector investors have been overlooking an investment that can offer some really good opportunities

Splits issue more than one type of share to suit the needs of different investors, and first emerged in 1965. The three most common share classes they issue are as follows. Income shares. These aim to provide investors with a regular return in the form of dividends generated from the underlying portfolio of the investment trust. This class of share can be highly volatile and often the capital value at wind-up will only be secure if the underlying trust has achieved sufficient levels of growth to have first met other obligations to debtors and holders of other share classes, notably the zer...