Dresdner RCM, the asset manager, is betting on UK gilts to provide the stability investors are looki...
Dresdner RCM, the asset manager, is betting on UK gilts to provide the stability investors are looking for this ISA season, and is currently promoting a new product that seeks to take advantage of being linked to government coffers.
The Gilt-to-Equity ISA offers investors the chance to invest the maximum £7,000 tax-free stocks and shares ISA allowance in gilts, which will then be changed into equities through the following tax year, a Dresdner RCM spokeswoman says.
"The money is drip fed from gilts into equities through the year at the discretion of the fund management," she says.
The initial investment goes into the DRCM Gilt Yield Trust, from which it feeds through into the DRCM UK Equity Income Trust or the DRCM UK Equity Fund.
The firm is pitching the product at IFAs whose clients are "reluctant to invest in an equity ISA because of market volatility."
Further information is available from the Dresdner RCM website at www.dresdnerrcm.co.uk.
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