Thematic: Zeros

The introduction of Reits could revive new issuance of zero dividend preference shares, according to...

The introduction of Reits could revive new issuance of zero dividend preference shares, according to Peter Hewitt, manager of the F&C Progressive Growth fund. Hewitt says the January 2007 launch of UK Reits could be crucial to the emergence of zeros, should property companies become aware of the benefits. Hewitt, whose cautious fund targets high quality zeros and similar investments, says zeros are a class of share designed to pay a fixed sum of money at a pre-determined maturity date, providing the assets of the underlying company are sufficient to do so at the time of maturity. Becaus...