Collins Stewart Fund Management, based in the UK, is set to launch its first zero dividend recovery fund, aimed at private investors who want to exploit the hard-hit asset class.

The fund will be actively managed, and aims to raise £20m (€32.5m) to invest in a concentrated portfolio of actively managed zero dividend preference shares (ZDPS). The market for ZDPS, a class of share within a split capital investment trust, has fallen heavily in the last twelve months after underperformance.