AJ Bell Investcentre launches Gilt MPS charging 0.10% per year

AJ Bell Investcentre is today pleased to announce the launch of a new ‘Gilt MPS’ range that will carry a very low investment management charge of just 0.10% per annum amid rising adviser demand for a low-cost, accessible solution to recommend gilts to clients.

The AJ Bell Gilt MPS range is designed for advisers and their clients who are looking to invest in a tax efficient MPS and will be available across three different maturity preferences, allowing advisers to choose an investment time horizon and gilt maturity dates that suit their clients’ needs.

Advised clients can also invest in the Gilt MPS range with as little as £10,000, meaning more clients across a broad spectrum of wealth profiles can benefit from the opportunities currently offered by gilts.

This comes following the launch of AJ Bell Investcentre’s online gilt dealing service in February 2024, as part of wider efforts to make it simpler and easier for advisers to recommend gilts to clients. The online gilt service saw the number of gilt purchases increase five-fold in 2024, highlighting the surge in demand among advisers and their clients.

Ryan Hughes, AJ Bell Investments managing director, says:

“UK gilts have become highly tax efficient investments in recent times, particularly for higher and additional rate taxpayers given any gains made on gilts are exempt from capital gains tax. With some gilts trading below ‘par’ (£100) and offering a low coupon, it means that a good proportion of the return, if held to maturity, comes from capital gains rather than from income. As a result, when the yields on offer are held up next to the interest rates available on deposit, gilts compare very favourably when focused on the short-dated part of the market.

“Our discussions with advisers found that many were unable to buy gilts directly for their clients and asked if we could build a solution that solved this problem. We are therefore delighted to launch the Gilt MPS which brings a ‘ladder’ approach, providing advisers with a range of maturity options wrapped in an MPS structure. This part of the market has up to now been seen as the preserve of the very wealthy through traditional DFM managers with high minimum investment levels and high costs, but our new MPS range opens the door for many more investors with a suggested minimum investment level of £10,000 and very low charges at just 0.10% per annum.”