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Splits are among top performing trusts in last year

Despite the tarnished image of split-caps, some of them are among the best performers in the market, according to AITC figures.

Its research reveals that 25 of the 60 investment trust shares that have managed to make a profit in the last 13 months are splits.

However, the AITC also found that the investment sector downturn has been so severe since the end of October 2001 that 85 per cent of investment trust shares have made an average loss of more than 20 per cent.

Following the suspension of 19 split-capital trusts and a pending FSA ruling, the news that some splits are outperforming the rest of the sector is surprising.

But Aberforth, BFS, Henderson, Edinburgh, Invesco and Jupiter all have splits that are beating the bear market.

Henderson head of investment trusts Stephen Westwood says: “Our funds have substantial assets to rely on, based on a solid track record of investment, with no cross-holdings, which is what distinguishes them from the splits that have got into real trouble.”

AITC spokeswoman Jemma Jackson says: “Markets have taken a bit of a beating so any performance static or otherwise is positive.”


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