Success for UK Zeros despite shrinking funds

Sector enjoys positive returns despite a decline in the number of funds, with talk of mergers still rife

Funds in the UK Zeros sector have faced shrinking portfolio sizes as well as a falling number of investable zero dividend preference shares in recent years. Despite this, however, the seven funds in the sector have shown positive returns over the past three calendar years, with growth ranging from 24.31% to 63.96% bid to bid, according to Standard and Poor's. The most successful discrete year of the past three was 2004, which saw average sector performance of 18.77%. The following years saw growth of 13.69% and 7.84% respectively. Despite the positive returns seen in the sector, the top ...