Struggling markets drove investors into zeros

It was struggling markets that drove investors into funds of zeros in 2001, Investment Week's sister magazine Fund Strategies reported in July last year. At that time, the zero universe was expanding rapidly and it was a widely repeated mantra that no zero had ever failed to pay out. Richard Prvulovich, senior investment manager at Gartmore Investment Management, told Fund Strategies at the time: 'There is now more choice than ever and valuations are pretty decent. The equivalent five-year gilt is offering 5.4% against the average zero's 7% to 8%. The risk is not comparable, but the yi...