Widening discounts and the distribution of inherited estates are making teps more attractive
Traded endowment policy investment trusts offer an attractive alternative to investing in zero dividend preference shares, according to David McFadyen, investment fund research analyst at ABN Amro. Widening discounts have overcompensated for the expectation of future cuts in reversionary and terminal bonus rates, creating undervalued situations, he said. A further potential for growth, not priced in by the market, is the distribution of inherited estates, something likely to provide a significant uplift to Teps. McFadyen said: 'Tep trusts present an attractive alternative for zero ...
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