Another split capital investment trust has collapsed, dealing a further blow to the troubled sector.

Aberdeen Asset Management announced on Wednesday that it would recommend winding up the Leveraged Income Fund - once worth �150m - to shareholders next month.

The fund is the latest in a string of trusts to find itself in trouble - and it is the third such trust at Aberdeen. Its Media & Income and High Income trusts have already been put into receivership.

Values of many splits, which are popular with people saving for retirement or school fees, have fallen sharply during the past two years due to stock market falls, heavy debts and crossholdings.

Institutional investors

Aberdeen, however, said that few private investors would be affected by this fund's collapse.

Leveraged Income was originally marketed to institutional investors, it said, and any private investors would have come through brokers or other third parties.

As a consequence, Aberdeen said only 5% was owned by private investors.

"It is very different in that respect...the original placing documents came along with the risk warnings that they were for sophisticated investors only.

"It is a different scenario to other situations where compensation has been offered," a spokesman said.

Aberdeen is not the only company to experience problems with the fallout from the collapse of the splits market.

About 40 have suspended dividends or been forced to restructure.

On Tuesday Exeter Enhanced Income Fund, whose assets are managed by Exeter Investment Group said it has suspended dealing in its shares.