AJ Bell Investments‘ Gilt Managed Portfolio Service (MPS) has exceeded £100 million in customer assets following its April 2025 launch, signaling substantial adviser demand for tax-efficient fixed-income alternatives to traditional cash savings.
- Launch date: April 2025
- Current AuM: £100 million
- Management fee: 0.1%
- Maturity range: Up to 2032
- Tax treatment: Capital gains exempt; coupon payments subject to marginal income tax
The product provides advisers and clients with access to managed portfolios of UK government bonds with varying maturity dates, structured to offer cash-like returns with enhanced tax efficiency. Following an expansion earlier this year, the range now extends to gilts maturing in 2032. The underlying investment strategy relies on short-dated, low-coupon gilts trading below par value, where the majority of returns derive from capital appreciation at redemption, with income that remains exempt from Capital Gains Tax.
The tax structure creates particular appeal for higher and additional rate taxpayers. Since only coupon payments face taxation at the investor’s marginal rate while capital gains remain CGT-exempt, post-tax yields can exceed returns from leading cash accounts. The portfolios are designed for holding until maturity to benefit from the “pull to par” mechanism, offsetting interest rate fluctuations. Upon maturity of individual gilts, advisers may withdraw proceeds or rebalance into new positions, with new four-year portfolios launching when single issues remain.
Gilt MPS offers flexible gilt laddering designed for clients with different time horizons and gives them the opportunity to realise extremely tax efficient cash-like returns.
The product builds on AJ Bell‘s expansion of gilt accessibility through its Investcentre adviser platform, which introduced online gilt dealing in 2024. The firm structured the MPS to simplify gilt recommendations and provide advisers with structured, maturity-aligned investment options.
