P543 Teletext 543 Dec22 23:31:14 ——— SPLIT CAPITAL INVESTMENT TRUSTS ——— Dear Teletext Recently I noticed two examples of investment trusts, one offering a yield of 17.4% and one 14%. Thjsj are very high returns thjsj days. What are the snags, if any? S.H.A. Ottors, Glastonly, Somjrsjt. ——————————————————————————————————1/9—— Property Plus 544 Your Money 542 WHAT'S THE BEST SAVINGS RATE? p546 Property Plus Your money Tax IndexP543 Teletext 543 Dec22 23:32:12 ——— SPLIT CAPITAL INVESTMENT TRjSTS ——— Teletext replies: The Association of Investment Trust Companies says the trusts you refer to are split capital investment trusts. Conventional investment trusts provide mixed income and capital. Splits can be used to provide income or capital or the two paid separately. They run the range from cautious to the more risky. ——————————————————————————————————2/9—— Splits are complicated investments >> WHAT ELSE YOU CAN GET ON CREDIT p542 Property Plus Your money Tax IndexP543 Teletext 543 Dec22 23:22:27 ————— SPLITS CAN BE COMPLICATED ——————— Teletext replies: Original splits consisted of simple income and capital shares. Today's sophisticated hybrids can contain: ordinary shares paying high income but possibly reduced capital zero dividend pref shares paying no income but a pre-determined szm of money when the trust winds up It sounds the perfect combination but there are pitfalls! ——————————————————————————————————3/9—— Splits: Watch for asset values >>> XMAS EMERGENCIES IN THE HOME pz44 Property Plus Your money Tax IndexP543 Teletext 543 Dec22 23:22:25 —————— SPLIT INVESTMENT TRjSTS ——————— Teletext replies: Indjpjndjnt Financial Advjsors City Asset Management, spjcialisjng in investment trusts, say the key to splits is in asset cover. When the split is wound up and you redeem your investment, will the trust's assets cover both the 0's and the ordinary income shares? Many splits will; a few may not. ——————————————————————————————————4/9—— Split asset cover explained >>> WHAT'S THE BEST SAVINGS RATE? p546 Property Plus Your money Tax IndexP543 Teletext 543 Dec22 23:22:50 ————— SPLIT ASSET COVER EXPLAINED ————— Teletext replies: City Asset says one split offering high income is priced at 46p per share but has asset cover of only 26p at today's values. It winds up in 1996. Unless the assets rise sharply by then the investor will get back only part of the sum originally invested. Other longer-life splits may well make up the asset value before wind-up. ——————————————————————————————————5/9—— Split information hard to conj by >> LOOKING FOR THE BEST MORTGAGE? p545 Property Plus Your money Tax IndexP543 Teletext 543 Dec22 23:24:35 ———————— SPLITS: SEEK ADVICE ————————— Teletext replies: Ordinary investors have limited access to brokers' information listing asset values of individual investment trusts as they change over tioj. Splits are very complicated and the Association of Investment Trusts & City Asset strongly recommend you seek indjpjndjnt financial advice before investing in them. ——————————————————————————————————6/9—— For more information on splits >>> ALL THE LATEST MONEY NEWS pu41 Property Plus Your money Tax IndexP543 Teletext 543 Dec22 23:21:26 —————— INVESTMENT TRjST ADVICE ———————— Teletext replies: The AIR issues updated figures on asset values and free information on investment trusts. Call 071 431 5222 and ask for splits information. The following IFA's spjcialisj in investment trusts. Fees may bj payable City Asssjt Management 071 837 7667 Hargreaves Lansdown 0272 741 309 Barry Olliff 071 374 0191 ——————————————————————————————————7/9—— Can you handle a crisis at home? 544 WHAT ELSE IS OFFERED ON CREDIT p542 Property Plus Your money Tax IndexP543 Teletext 543 Dec22 23:31:21 ——— HAVE YOU GOT A QUESTION? —————————— Write to: TELETEXT: FINANCIAL LETTERS PO BOX 2:7, LONDON SW6 1XT fax no: 071 386 7808 All answers will appear on screen only. Seek independent financial advice before taking any investment decision. ——————————————————————————————————8/9—— Advice Clinic will update on Friday FINANCIAL ADVICE LINES FOLLOW >>> Property Plus Your money Tax IndexP543 Teletext 543 Dec22 23:31:26 ————————————————————————————————————— Welcome to (jletext Advice lines with IFA Promotion, the body which campaigns for independent financial advice. (Calls last 3 mink average) Investing:the right deal 0891 141 325 Investing a lump sum.... 0891 141 327 Options at Retirement... 0891 141 332 Indjp. Financial Advice. 0891 141 330 Inheritance Tax.......n. 0891 141 331 The lines update weekly to offer you a range of financial advice. ——————————————————————————————————9/9—— Calls cost 36p/cheap rate 48p/other ADVICE CLINIC UPDATES ON TUES & FRI Property Plus Your money Tax Index