Hidden extras
Article Abstract:
United Kingdom split-capital investment trusts cannot be judged using the normal methods for judging trusts. The different types of split stocks carry hidden risks. Split-capital trusts cannot be assessed using their discounts, where calculations are based on final redemption values rather than current pricesin the market. Trusts that are wound up have debts repaid using values current when they are wound up, not final values. Split-capital trusts should be assessed on their redemtion yields. Discounts tend to ignore the trusts' debts.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
Buy-back frenzy among investment trusts
Article Abstract:
United Kingdom investment trusts can buy-back their own stocks more easily following the end of advance corporation tax from April 6 1999. This removes the obligation for companies buying back stocks to pay tax on any rise in price since stocks were issued to the time when stocks were bought back. Investment trusts hope that stock buy-backs can help ease wide discounts, which have been a problem for some years. It is unclear, however, whether buy-backs will in fact ease the discount problem.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1999
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: New trust, new choice. On the track of simple investment returns
- Abstracts: Rising on the back of Ford. Dagenham Motors: vroom to grow. Caverdale nears the rainbow's end
- Abstracts: Finally! An IASC standard on financial instruments. New rules for interims. Interim reports: who, what and when?
- Abstracts: Quids in for kids. Bid for kids with quids
- Abstracts: Wierd and wacky fledgling companies. Warning signs