Bestinvest rates zeros

Intermediary group Bestinvest has introduced a rating system to help investors select individual zero dividend preference shares and avoid those still at major risk. The system is based on the group's evaluation of three factors to identify the main characteristics of each zero. These are its portfolio quality, its gearing and its hurdle rate. The quality of a zero's portfolio is split into four categories labelled A to D. Category A shows the zero is invested in mainstream equities, category B indicates it is invested in specialist companies, or up to 10% in income shares or high yield...