A type of share issued by an investment company which has no rights to dividends but aims to deliver a fixed capital payment at a fixed point in the future.
For example, a ZDP might be issued today at 100p and aim to deliver a fixed payment of 135p in five years' time.
These payments are fixed, but not guaranteed. Holders of ZDPs will not be paid unless there are sufficient assets within the investment company at the time.
ZDPs may have tax advantages for some investors, if they pay a lower rate of tax on capital gains than they do on income.
