View more on these topics

Dresdner RCM reflects gilt trip

Dresdner RCM has introduced the gilt-to-equity Isa, which offers two ways to invest.

Investors can initially go into Dresdner RCM gilt yield unit trust, then make a phased switch into the Dresdner RCM UK equity income unit trust or the Dresdner RCM UK equity fund, an Oeic. The switching occurs in three stages on predetermined dates.

Alternatively, investors can choose one or more of the funds without the phasing option. They can then switch between the funds when they choose, but a charge of 1 per cent for every switch is payable.

Looking at the funds, the Dresdner RCM gilt yield trust invests in British Government securities. It has a current yield of 4.07 per cent, which is tax-free if held within an Isa.

The Dresdner RCM UK equity income trust is managed on a value basis and invests in undervalued UK companies that provide the highest dividend yield or look like good prospects for a growing dividend yield. The Dresdner RCM UK equity fund is an institutional fund which Dresdner has now opened to retail investors. It focuses on UK large caps such as Vodafone and Shell.

This Isa could suit investors who want to use their Isa allowance rather than lose it, but who occupy the lower end of the risk ladder. The automatic phasing may be attractive to cautious investors who want to tiptoe into UK equities. But as the switching dates are predetermined, investors run the risk that the timing may be wrong.

According to Standard & Poor&#39s, Dresner RCM gilt yield is ranked 14 out of 28 funds, Dresdner RCM UK equity is ranked 83 out of 294 funds and Dresdner RCM UK equity income is ranked 33 out of 79 funds based on £1,000 invested on a bid-to-bid basis with net income reinvested over three years to February 8, 2002.


MGM Assurance – Capital Investment Bond

Monday, February 11, 2002.Type: Unit-linked bond.Aim: Income and growth by investing in up to 12 funds.Minimum investment: Lump sum £7,500.Fund links: Bonus growth, deposit, European, fixed interest,international equity, Lazards managed, managed, North American,Pacific Basin, property, special situations, UK equity.Allocation rates: Clients up to age 75, £7,500-£14,999 – 101 per cent,£15,000-£29,999 – 103 per cent, £30,000-£39,999 […]

Swiss Life and BMA target doctors with IP plan

The medical arm of the British Medical Association and Swiss Life are targeting doctors with a bespoke income protection plan to meet their needs throughout their careers.The BMA Services Income Protection Plan reflects the changing salaries and work patterns as doctors move from their last year of medical school through work in hospitals, general practice […]

Pink Home Loans discount through Bristol & West

Pink Home Loans discount through Bristol & WestType: DiscountDiscounted rate: 2.51 per cent — 3.24 per centDiscounted term: Two yearsUnderlying rate: Bank base rate plus 1.75 per cent Minimum loans: £15,001 (purchases), £25,001 (remortgages)Maximum loan: Unlimited up to 75 per cent loan to valueIncome multiples: 3.5 times principal plus second, 2.75 jointArrangement fee: £299Redemption fees: […]

Most IFAs back Aifa on CP121 tactics

Aifa&#39s declaration this week that its battle tactics on CP121 will be to concentrate on detail rather than on the main principle of polarisation has split IFA opinion.Some have condemned the tactics, claiming Aifa should focus on attacking the proposals on principle, but most seem to concede that a more pragmatic app-roach should be adopted.In […]

Bonds in 2017: Stick or twist?

Royal London Asset Management Bond Fund Managers Paola Binns and Craig Inches look at why short duration could be a key tactic for fixed income investors during 2017. Read the full article here The value of investments and the income from them is not guaranteed and may go down as well as up and investors […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers. Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and thought leadership.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm