Merrills shakes up UK gilt fund

group plans to re-engineer its £16.7m uk gilt portfolio because of lack of investor interest

Merrill Lynch Investment Managers (MLIM) is planning to re-engineer its £16.7m UK gilt fund owing to lack of investor interest. Michael Jones, head of retail at the group, said the tax treatment of gilts, tax-free if held directly by investors but not if held within a fund, is the key reason for the decision to alter Merrill Lynch Government Securities. "It will still be a fixed-income fund but we have not determined what we will do with it. It has plenty of supporters but it is not going to take significant flows in the foreseeable future because of the tax treatment of gilts," he said...