AJ Bell Investments’ Gilt MPS range has surpassed £100m of customer assets, demonstrating the scale of adviser demand for cash-like investments following launch of the product in 2025.
The Gilt MPS provides advisers and clients with access to a managed portfolio of UK government bonds, with a range of maturity dates up to 2032 available following the expansion of the range earlier this year.
Launched in April 2025 Gilt MPS carries low charges of just 0.1% and provides a tax efficient cash-like return across rolling maturity dates to suit clients’ needs.
Gilts are exempt from Capital Gains Tax (CGT), incurring only income tax at the holder’s marginal rate on coupon payments. Short-dated gilts trading below par thereby offer tax-free gains at redemption which can result in higher net returns after tax than comparable cash savings accounts (see table).
The Gilt MPS followed the launch of online gilt dealing through AJ Bell’s Investcentre adviser platform in 2024, making it simpler and easier for advisers to recommend gilts to clients.
Ryan Hughes, AJ Bell Investments managing director, says:
“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. For higher and additional rate tax payers in particular, the post-tax yield can be more attractive than the net return from the leading cash accounts thanks to the CGT exemption which means the bulk of the return is tax free.
“That attractive return net of tax for a cash-like investment, with the added benefit of a wide range of maturity dates, means the Gilt MPS has already gained significant traction with advisers and their clients.”
How gilts can outperform cash savings after tax
Source: AJ Bell. Illustrative based on a gilt held for a single year and leading one year fixed-rate account as at 18 August 2026
Gilt MPS explained
AJ Bell’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 CGT. 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.
The portfolios are designed to be held until maturity to benefit from the ‘pull to par’ and offset fluctuations in value 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.