View more on these topics

Fund firms reassuring investors over safety of zeros

Leading fund managers are fighting back against speculation that the split-capital investment trust industry is in danger of spiralling out of control.

Last week, Framlington wrote to its IFA clients to reassure investors in its recently launched absolute growth fund, which invests in zero-dividend prefer- ence shares, that they should not be alarmed by negative media coverage.

Gartmore has also come out fighting for the splitcap market, urging investors to remember that the majority of splits are stable investments.

The move follows recent warnings from the consumer press that zeros may not be as safe as providers have stated.

While no zero has yet failed to pay out, pundits have predicted that the market may soon see some zeros defaulting.

Framlington marketing director Craig Walton says a few splits have run into trouble but there is no need to condemn the whole industry. He says: “Zeros are not the simplest thing but we are trying to put out a product which avoids the pitfalls.”

Gartmore stable growth fund manager Richard Prvulovich says: “There has been considerable concern about the sector. Some of this is justified owing to some of the more highly geared companies also concentrating their portfolios in the more volatile sectors of the market.

“However, it is important to recognise that the vast majority of splits have sustainable capital structures and well diversified portfolios.”


Terrorism paralyses Wall Street

Trading was suspended in the City and Wall Street after the terrorist attacks on the World Trade Centre in the heart of New York&#39s financial district, the Pentagon and other Washington targets. The FTSE continued trading to close down 287 points at 4746, a fall of 5.7 per cent from the start of the day. […]

Standard & Poor&#39s Micropal Top 10s

Fund returns have continued to fall over the summer, with the average unit trust now down by more than 20 per cent for the past year. Govett US Bear continues to top the tables, reflecting the poor performance of US equity markets. Corporate bond funds have been the best performers of the past 12 months, […]

PMI costs rising

The cost of private medical insurance is increasing as more individuals are claiming on their policies, with individual premiums increasing by 5 per cent a year, a survey shows.And the PMI market may be approaching saturation as the number of individuals with cover has only risen by 3 per cent to 6.2m in 2000 from […]

SG Life & Pensions – SG Life International Bond

Tuesday, 11 September 2001.Type: Traditional offshore bond.Aim: Growth by investing in a choice of three risk graded portfolios,cautious, balanced, aggressive or a self-select option with a choiceof 94 unit trusts, oeics, managed bond funds and investmenttrusts.Minimum investment: £50,000.Place of registration: Guernsey.Investment split: Choice of three risk graded portfolios, cautious,balanced, aggressive or a self-select option with […]

Nigeria cover image - thumbnail

White paper — Nigeria International Insights

Jelf Employee Benefits closely examines healthcare provision and challenges within Nigeria. This will be of particular interest to HR decision makers with employees based in Nigeria, and assesses the environment, risks, facilities and safeguards that are relevant to organisations that are actively deploying expatriate staff in this location.


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm