Elston Consulting today announces the launch of its Direct Gilts research service for Financial Advisers looking to make individual gilts recommendations, alongside a Direct Gilts MPS solution from Elston Portfolio Management available via Transact.
For higher and additional rate taxpayers, selective near-term direct gilts are a smarter alternative to Cash Deposits or Money Market Funds. This is because a significant portion of their yield comes from tax-exempt capital gains rather than taxable coupon payments. This makes after-tax yields considerably higher for direct gilts than it is for cash deposits and money market funds. The exemption is only valid for directly held Gilts, not for gilts held in funds, ETFs or money market funds.
The research service enables advisers to analyse key characteristics of near-term gilts based on their yield, coupon, and maturity.
Advisers must have the necessary qualifications to recommend individual securities. Alternatively, they can access discretionary managed MPS. For this, Elston has launched a Direct Gilts MPS solution on Transact – one of the few platforms that can readily hold direct gilts in model portfolios. The management fee for the MPS solution is 0.05%, which is the same as for the Elston Money Market Portfolio.
Elston Portfolio Management provides a MPS service to advisers on a platform-agnostic basis using research, analytics and insights from Elston Consulting.
Henry Cobbe, Head of Research at Elston Consulting:
“For higher rate taxpayers, near-term direct gilts might be a better, more tax-efficient, alternative to shopping around for deposit rates, or indeed money market funds. We want to give advisers the tools they need to offer this service themselves. They can do this with our help on an advisory basis or via the new platform-based MPS. Either way there is no longer a need to refer direct gilts clients away to higher cost direct discretionary managers who structurally compete with advisers in the financial planning space.”
Tom Dunbar, Deputy CEO at Transact:
“We have seen growing interest in advisers accessing direct gilts via our platform both on an advisory basis and via MPS. As a manager-agnostic platform for advisers we welcome continued innovation in the pursuit of delivering good client outcomes”
