CD-Rom to help intermediaries to educate their clients
Aberdeen Unit Trust Managers has produced a free CD-Rom for intermediaries explaining how zero dividend preference shares work. The group is also offering a 1% discount on its Progressive Growth fund until the end of September.
The CD-Rom is designed to explain how zero dividend shares work, their tax advantages and the investment options available. It has links to www.zerosonline.co.uk, a provider of daily prices, redemption yields and hurdle rates on all zeros currently in issue, which is sponsored by Aberdeen Investment Trusts.
Gary Marshall, managing director of Aberdeen Unit Trust Managers, said the CD-Rom has been produced to enable intermediaries to educate their clients about zeros.
He said: 'We have produced the CD-Rom because we recognise that, despite their increasing profile, zeros are still not fully understood by many investors.'
Marshall said zeros are tax efficient as they do not distribute income, are not subject to income tax liability and can add an extra £7,500 to existing Isa allowances, via the annual CGT allowance. Moreover, zeros have defined returns and are low risk, he said, with no recorded defaults yet. Intermediaries are also being targeted by Synaptic Systems, which has launched a white-labelling service for those looking to develop their own websites.
The fully customisable website incorporates Synaptic's range of product research, stakeholder and mortgage protection.
Online transactional capabilities will be offered by the year end, following a tie-up with Cofunds, enabling online Isa transactions by the end of the third quarter and unwrapped unit trusts by the year end. Darren Bayley, marketing manager at Synaptic, said the company would be continually looking at developing new partnerships to broaden the site's transactional capabilities.
He added: 'We are also looking to offer general insurance on the site. The margins are tight but it is an area of business most intermediaries are not in.'
The service has a monthly subscription fee of £149 for the first year, rising to £200 in the second year, reflecting the enhancements being made.
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