Every Split Capital Trust will have at least two classes of share:
In order of (typical) priority and increasing risk
The type of share invested in is ranked in a predetermined order of priority, which becomes important when the trust reaches its wind-up date. If the Split has acquired any debt, debentures or loan stock, then this is paid out first, before any shareholders. Next in line to be repaid are Zero Dividend Preference shares, followed by any Income shares and then Capital. Although this order of priority is the most common way shares are paid out at the wind-up date, it may alter slightly from trust to trust.
Splits may also issue Packaged Units combining certain classes of share, usually reflecting the share classes in the trust usually in the same ratio. This makes them essentially the same investment as an ordinary share in a conventional Investment Trust.
Capital Investment Process Deficiencies: In the First in a Two-Part Series on Capital Investment Gene Boyd Flags Some Common Deficiencies That Occur in Organisational Processes
Jun 01, 2013; For the majority of organisations capital investment is a significant activity. This obviously applies to large capital-intensive...