A split capital investment trust (split) is a type of investment trust which issues different classes of share to give the investor a choice of shares to match their needs.
Most splits have a limited life determined at launch known as the wind-up date.
Typically the life of a split capital trust is five to ten years.
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.