IFAs who aren't so well versed in zeros will welcome news that Aberdeen Unit Trust Managers has p...
IFAs who aren't so well versed in zeros will welcome news that Aberdeen Unit Trust Managers has produced a free CD Rom called 'Zeros made Simple'.
Designed to explain how zero dividend preference shares (zeros) work, the CD Rom also explains their tax advantages and investment options available.
Access is interactive with Aberdeen's website - www.zerosonline.co.uk - where investors can obtain full details including, daily prices, redemption yields and hurdle rates on all the zeros currently in issue.
Launch of the CD marks the first anniversary of Aberdeen's Progressive Growth Unit Trust, which says Aberdeen is also being offered at a discount.
A discount of 1% is being offered on all unit trust and Isa lump sum investments made into the Progressive Growth fund during July, August and September.
Gary Marshall, managing director of Aberdeen Unit Trust Managers, says: "The low risk characteristics of zeros are ideal, particularly as an antidote to the current stockmarket volatility, but also as a core holding for saving towards known future expenses such as school fees or university costs. The fact that they are also incredibly tax efficient is the icing on the cake. For example to match the returns of the Aberdeen Progressive Growth fund, a higher rate payer using his CGT allowance would need to find a bank or building society account offering an interest rate of 11.66%.
"The fund has had an excellent first year and has not only outperformed the other zero funds on the market, but has also showed its low risk credentials during a period when markets have been very volatile. Since launch the fund has produced a positive return of 12.2% while the FTSE All Share Index has fallen 11.3%, resulting in a 23.5% outperformance. Furthermore it has beaten 95% of the funds in the UK All Companies sector.
"We have produced the CD Rom because we recognise that, despite their increasing profile, zeros are still not fully understood by many investors. The CD Rom format is perfect for demystifying them and makes a great sales aid for IFAs to use with their clients."
Free copies of Aberdeen's 'Zeros Made Simple' CD Rom, are available by calling the broker helpline on 0800 59 24 87.
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