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Sector switch boosts zeros

The newly created UK zeros sector should boost interest in funds which invest in the much criticised share class, according to Investec Asset Man- agement.

Zeros, which were at the centre of the split-cap scandal, had until recently been lumped in the UK other bond sector, which contains a hotchpotch of virtually incomparable funds. But Investec says the new sector should highlight the ability of zeros to deliver “tax-efficient equity exposure at low risk”.

In particular, it says zeros funds are well suited to investors seeking to utilise their capital gains tax allowance, which is currently £8,200.

Alastair Mundy, Investec&#39s capital accumulator fund manager, says the bad press that engulfed zeros during the height of the splits scandal has masked the fact that there are many quality zeros in the market.

He says: “Today, the market has sorted the good from the bad and, with the other defensive option, corporate bond funds, at risk from rising oil prices and growing inflation threat, zeros should once again be considered by the cautious investor looking for lower-risk growth.”


Ship&#39s home-reversion code &#39does not include compensation scheme&#39

Safe Home Income Plans&#39 final draft for the voluntary regulation of home-reversion schemes is understood not to include financial compensation for complainants. Sources close to Ship say the complaints procedure for the new code will include the possibilities of fining the provider, suspending it or terminating its membership of the organisation but there will be […]

Product Matters

It is refreshing to be able to write about a Northern Rock two-year fixed rate as over the past month or so it has had a good few. It started with an extremely competitive rate and then for three consecutive weeks it repriced upwards each week by 10 basis points, resulting in huge volumes of […]

MEP wants FSA trumpets silenced

The Treasury and the FSA have been singing each other&#39s praises over ach-ievements in Europe for far too long, says Liberal Dem-ocrat MEP Chris Huhne. The representative for the South-east region says he thinks there is far too much trumpet-blowing from the regulator and the Government. Huhne says that in terms of implementing regulations, of […]

Legal & General slashes rates for online business

Legal & General is slashing life and critical-illness cover rates for online business, emphasising that brokers will have to become more active in the e-protection market. Its reduction in rates for online submission reflects its e-philosophy. A couple aged 35 next birthday applying for a £150,000 joint level term policy over 25 years would pay […]

When is £1m not £1m?

Neil Jones is technical support manager with Canada Life’s ican Technical Services Team. Canada Life offers a range of wealth management solutions, including retirement income planning, estate planning and investment solutions from a choice of jurisdictions, including the UK, Isle of Man and Republic of Ireland. The residential nil-rate band (RNRB) was first announced in […]


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