Split Capital Investment Trusts
What Are Split Capital Investment Trusts?
Investment trusts are collective investments (stocks, shares, property, commodities etc.) similar to unit trusts and mutual funds but with some big advantages. They are, however more complicated and to make things even more complicated some investment trust companies are divided into different share classes; so-called Split Capital Investment Trusts (zero-dividend preference shares, income shares, capital shares and highly geared ordinary shares) I have written a separate general article abo...

Investment Trust Subscription Shares
What are Investment Trust Subscription Shares?
Investment trusts are collective investments similar to mutual funds or unit trusts (See my related article for a detailed description of these). When these investment companies are created they often issue warrants to the initial share-holders to help finance the launch of the company. A less common practice is to issue a subscription share at a later stage in the company's life to secure extra funding (similar to a rights issue) Like warrants, subscription shares are issued to each share h...

Investment Trust Warrants
Investment Trust derivatives: Warrants
Investment trusts are collective investments similar to mutual funds or unit trusts, but generally with lower fees and are actual investment companies with shares that can be traded, rather than units representing the underlying investment holdings (See my related article for a detailed description of these). When these investment companies are created they often issue warrants to the initial share-holders to help finance the launch of the company. These warrants are long-dated call options ...