Trust sells split cap holdings due to aggressive accounting

The City of Oxford Geared Income Trust has sold down its holdings in other split cap trusts because ...

The City of Oxford Geared Income Trust has sold down its holdings in other split cap trusts because of what it sees as the sector's over aggressive accounting policies, unstable balance sheets, and the increasing levels of cross-shareholdings. Historically, the portfolio has had up to 30% invested in split capital shares, but as a result of these characteristics and increasing concern over the high level of new issuance, the trust made significant sales earlier this year. Fred Carr, chairman of the trust, said: 'We continue to believe there is nothing wrong with split capital trusts tha...