Capital show by split funds

SHARES in the pounds 70m Touche Remnant Property investment trust had already risen sharply before the international fund manager, George Soros, announced his plans last week to buy heavily into the UK property industry.

TR Property invests mainly in property management companies rather than construction firms. Manager Peter Duffy said its shares began recovering last September after interest rates were cut. But he was cautious about the outlook for the trust's share price now after its strong run.

He said rents for commercial property were still falling because of over-supply, and should be stable or preferably rising before long-term recovery would be assured.

Recent performance by capital shares of split-level trusts has lived up to predictions, although a month's gains can quickly be reversed. The Jos trust - named for a Nigerian tin mine that was sold to provide the proceeds to set up the trust about 30 years ago - was converted to a split trust last year. It concentrates on medium-sized companies whose shares were bound to do well in an economic recovery. Barratt Developments, the house-builder, was one of the fund's best recent performers.

Kleinwort manages the Endowment trust, the first of its type, which invests in second- hand endowment policies. It is designed as a relatively low- risk fund.

Henderson Eurotrust, a split capital fund, issued new shares just over a month ago and this probably affected the price of its ordinary shares. Manager Richard Harding said there had been no deterioration in the trust's underlying asset value.