Collins Stewart sees NAV increase for fund of zeros

Launched the day the FSA began its investigations into the split capital trust sector, the Collins Stewart Zero Dividend Recovery Fund has seen its NAV rise by approximately 6.78% to May 30. The fund, managed by John Davey, launched on 11 April with an NAV of 96p, six weeks later, as at 30 May the NAV had risen to 102.5p. Davey said that while all the press comment on splits has been broadly negative, there has in fact been a powerful rally taking place in the splits sector, which he said is down to short-term technical reasons and long-term structural reasons. He added: 'Stocks fell ...