Why Chelverton is backing a split capital trust renaissance

Firms argues split-cap crisis was caused by poor management not by structure of zero dividend preference shares.

Small-cap specialist house Chelverton Asset Management is backing a split capital trust renaissance, investing £8.5m into zero dividend preference shares through its investment trust. David Horner, manager of the firm’s Small Companies Dividend trust, argues investors need to finally move on from the negative connotations associated with zeros. Horner said with an average yield of about 5.8%, zero dividend preference shares are one of the highest yielding asset classes around. “The proceeds have been used to repay the existing borrowing facilities, and have helped to put new financ...