By SIMON MOORE 01/10/2009
There are three existing split capital investment trusts which wind up on 31/10/09 and have rollover options into a new split capital trust managed by Philip Gibbs. The expiring trusts are: Jupiter Second Split (JSS,JSSZ,JSSU), Jupiter Second Enhanced (JSE,JSEZ,JSEU) and Defined Capital Return (DCR). The new trust will be called (New) Jupiter Second Split and will have three share classes: zero dividend preference shares, geared ordinary shares and units. The units will comprise 1 geared ordinary share and 2 ZDPs and are the equivalent of an ungeared ordinary share of an orthodox investment trust, albeit with a fixed 5 year life.
We hold Philip Gibbs in high regard (his MRI is 100%) and rate his other funds. The portfolio of this new trust will be large cap international financial stocks and he will be able to hold some short positions. We will give the units in this new split a 3 star rating. The ZDPs and geared ordinary shares will not get a rating as these share classes are more suitable for our discretionary clients.