Hawksmoor eyes split-cap launch after pensions overhaul

Discretionary investment manager Hawksmoor Investment Management is considering the launch of a split capital investment trust later this year, following the sweeping changes to UK pension rules.

Jim Wood-Smith (pictured), the group’s head of research, believes the sector is due for a renaissance as investors use the new flexibility around pension pots to secure themselves alternative sources of income. He said split-cap trusts – which were hit by a huge scandal in the 1990s which cost investors hundreds of millions of pounds – could enjoy a revival thanks to the removal of an effective requirement to purchase an annuity. “A renaissance is opening up for sensibly structured and managed split level trusts. There is the potential for a vast new market in zero-dividend shares, in...