AJ Bell is pleased to announce the launch of a new portfolio in its Gilt MPS range, Gilt MPS 4, which is now available via the AJ Bell Investcentre platform
Since launching in April 2025, the AJ Bell Gilt MPS range has been popular with advisers amid a backdrop of record high markets fuelling demand for tax efficient, flexible and lower risk investments to diversify client portfolios. Gilt MPS 4 brings the next step in the maturity ladder with four gilts, maturing between 2026 and 2029, enabling advisers to build cashflow solutions with certainty.
The Gilt MPS range was launched to provide tax efficient solutions for advisers to invest in gilts across rolling maturity dates to suit their clients’ needs. Carrying a low investment management charge of just 0.10% per annum, it also caters to the rising popularity of UK gilts among advisers seeking cash-like returns.
Advised clients can 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 tax planning and investment opportunities currently offered by gilts.
The Gilt MPS 1 portfolio will also no longer be available to invest from 2 January 2026 as one of the two issues is set to mature, leaving one issue remaining in the portfolio.
Ryan Hughes, AJ Bell Investments managing director, says:
“We are really pleased to be expanding our Gilt MPS range at a time when flexible, tax efficient investing is at the forefront of advisers’ minds. Since launching the MPS earlier this year, advisers have told us of the increasing need for clients to be flexibility invested in lower risk assets that provide cash-like returns, something that is particularly helpful for investors in the decumulation phase. On top of this, record high markets have fuelled an appetite to diversify client portfolios and invest as tax efficiently as possible.
“Short-dated, low coupon gilts trading below par in particular offer an extremely attractive option for clients, with the tax advantaged treatment of gains at redemption making them a compelling alternative to cash or near-cash assets for clients seeking risk free returns.
“As the Bank of England base rate eventually comes down and cash interest rates follow, advisers are well positioned to support clients looking for alternative ways to protect their wealth while earning a secure return in a highly tax efficient manner. This is particularly relevant for higher and additional rate taxpayers when considering the gross equivalent yield versus a savings account.
“AJ Bell’s Gilt MPS brings a ‘ladder’ approach, offering gilts with a range of maturity options to advisers and their clients. Clients can benefit from a secure and reliable return with a minimum investment value of £10,000, and very low charges at just 0.10% per annum.”
Gilt MPS explained
AJ Bell Investcentre’s Gilt MPS, designed for advisers and their clients who are looking to invest in a tax efficient MPS, features short-dated gilts issued with a low coupon which trade on discounts to par.
These low coupon gilts benefit from a large element of their total return coming from capital growth at maturity, which is free from capital gains tax. Only the income element from the interest received will be subject to tax at the investors’ marginal rate. Tax treatment depends on individual circumstances and rules may change.
From 2 January 2026, there will be three portfolios in the AJ Bell Gilt MPS range:
- Gilt MPS 2 contains three issues that mature between now and July 2027
- Gilt MPS 3 contains four issues that mature between now and January 2028
- Gilt MPS 4 contains four issues that mature between October 2026 and January 2029
The portfolios are designed to be held until maturity to benefit from the ‘pull to par’ and offset fluctuations and interest rate changes.
As each gilt matures, advisers have the option of withdrawing the proceeds or rebalancing into a new portfolio. When only one issue remains in a portfolio, assuming that issues are still trading at a discount to par, a new four year portfolio will be launched.
Interest payments are made every six months, offering a secure income stream. The Gilt MPS is available in three different maturity preferences, allowing advisers to choose an investment time horizon and gilt maturity dates that suit their clients’ needs.
The tax attraction of the Gilt MPS
Gilts are particularly effective for higher rate taxpayers, as capital returns are free from capital gains tax and short-dated low coupon gilts can offer favourable yields through capital appreciation.
Buying gilts which trade below par, such as those in the Gilt MPS, means returns can be significantly higher than can be earned from traditional fixed rate savings accounts.
Source: AJ Bell Investments. Illustrative example, tax equivalent yield on 1-year gilt, 40% taxpayer.