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AITC factsheet explains split-cap trust details

The Association of Investment Trust Companies is publishing a new factsheet to explain the complex world of split-capital investment trusts.

The guide is the latest move in the AITC&#39s “its” campaign and is intended to bea learning aid for IFA clients as well as direct investors.

The free factsheet breaks down the type of investor best suited to investing in split caps, explaining the different types of share classes.

The split-cap market has £11.2bn under management, representing around 14 per cent of the total investment trust industry.

This month has seen the launch of several new split-cap trusts, with further launches this autumn. Aberdeen Asset Management and LeggMason Investors have both launched US split-cap funds while BFS Investments has launched a UK-based fund. Investec Asset Management is considering a new European split-cap trust to be managed in part by Blackrock&#39s star fund manager Albert Morillo.

AITC PR manager Annabel Brodie Smith says:”Splits are unique. They provide the flexibility to suit investors&#39 individual needs by issuing different types of shares.

“Split-capital investment trusts can suit the needs both of cautious and high-risk investors and are also a good option for those seeking inccome or capital growth.”

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Strong dollar can be a powerful driver of UK dividend growth in 2015

By Robin Geffen, fund manager and CEO 

This year threatens to be a challenging one for UK dividend hunters. Last year saw an all-time record amount paid out in UK dividends — some £97.4bn, according to research from Capita Dividend Monitor. Yet as Capita also pointed out, out the biggest single factor driving the growth in the fourth quarter of last year was easy to identify: the rising US dollar. 

In our view, this trend is much more than simply a one-quarter phenomenon. It is actually the most profound issue to get right as a UK equity income investor in 2015. We believe that the US dollar will continue to strengthen significantly from its current level. This is due more to the US economy’s demonstrable de-coupling from the rest of the world than to a view on the UK. The US has a strong chance of tightening monetary conditions this year without jeopardising growth or de-stabilising its housing market. The same can unfortunately not be said about the UK.

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