The Split Capital Investment Trust Crisis

Split capital investment trusts (splits) became fashionable in the late 1990s, but the splits boom led to some spectacular collapses as the bear market unfolded. Despite warnings from certain analysts, academics and journalists, over twenty splits have gone bust leaving many private investors seeking redress. A major FSA investigation is continuing.

This book, with contributions from specialists intimately involved with the crisis, provides an in-depth and authoritative review of splits, discussing their history, what went wrong, and lessons for the future. The contributors express a wide range of views.

The Split Capital Investment Trust Crisis

• provides an historical background to the crisis
• describes the underlying reasons for the crisis and the media, regulatory and political response
• outlines theoretical models for the risk assessment and valuation of shares in splits
• considers key management issues highlighted by the crisis
• discusses the main lessons to be learned

"Andy Adams, with his impressive team of authors has put together a lucid critique of this highly complex subject. Whose fault - managers, advisers, investors or whoever? The evidence and commentary thereon are here for you to decide. Essential reading for the student of any age."
--Lord Remnant, Former Chairman AITC

"Andrew Adams has compiled the definitive account of not just the splits crisis, its political impact and the lessons for the future, but also the history of splits and the most up to date ways in which they can be valued. The chapters are written in contrasting styles by experts and are self-contained so that readers will be able to dip in and out of whatever interests them. The book is required reading for all those with an interest in financial markets and what happens when they fail."
--Christopher Brown, Head of Investment Companies Research, Cazenove