Elston Consulting - Our Portfolios & Adviser Support

Supporting UK Advisers.

At Elston, we provide financial advisers with the resources and insights they need to deliver exceptional results for their clients, so they can focus on what matters most.

How we help UK advisers.

Our Portfolios (Elston MPS).

Our ready-made Elston MPS portfolios are built for financial advisers. Portfolios are managed by Elston Portfolio Management using research, anlaytics and insights from Elston Consulting. Performance track record is available from FE MPS DIrectory, Morningstar Managed Portfolio and ARC MPS directory (launching May 2025).

For accumulation
> Our Portfolios (Elston MPS)

For decumulation
> Our Retirement Portfolios

Adviser Support.

With advisers under increasing regulatory pressure to ensure they are delivering good outcomes to clients, having a professional partner to support your investment committee and broader investment proposition can help UK advisers enhance business value and reduce business risk in a way that helps keep advisers in control.

> Adviser Support

Fund solutions.

Delivering investment strategies using a fund format brings access, convenience and efficiency. Some of our specialist strategies are available in unitised fund format
> Our Funds

We can assist larger adviser firms with the design, build and launch of their own Custom fund or fund range for unitisded solution either on a turnkey basis or with their selected ACD. Adviser firms should be confident of a minimum £50m AUM per fund within 12 months to ensure viability.
> Custom Funds

Custom Portfolios (Custom MPS).

For adviser firms wanting their own adviser-defined range of model portfolios, we are one of the earliest pioneers of designing and building Custom Portfolios for UK advisers.

This enables adviser firms to retain oversight and control of the mandate whilst transferring the responsibility for managing the portfolios to the Custom MPS manager. It enables adviser firms to deliver solutions designed uniquely for their target market and client base and create a stepping stone for obtaining their own permissions.

> Custom Portfolios (Custom MPS)

CGT Solutions.

For advisers wanting additional capabilities to navigating the changing CGT landscape, we have developed a range of solutions to help UK advisers extend their capabilites.

> Our CGT Solutions

Index Solutions.

We are a UK-based independent Benchmark Administrator and have been managing indices since 2014. Our multi-asset indices enable MPS and Multi-Asset Fund performance analysis. Our Indices are available via Bloomberg, FE, Morningstar and other data vendors.
> Our Indices

We can work with asset managers, investment consultants or research providers to design and build Custom Indices.
> Custom Indices

Frequently Asked Questions.

PORTFOLIO MANAGEMENT SERVICE

What is a portfolio management service?

Portfolio management services relates to the ongoing management of an investment portfolio. Also known as a Managed Portfolio Service (MPS) or Model Portfolio Service (MPS). It can be further differentiated by the following categories:

Bespoke Portfolio Manamagement Service: this is when a portfolio is designed and managed for an individual client. This is the typical approach used by private client investment managers (aka direct discretionary managers) who also provide their own custody arrangements. As the service is individual, there is VAT on the investment management fee.
Managed Portfolio Service (MPS): A portfolio management service for financial advisers is when advisers link their clients whose assets are held on a custoday and admnistration platform to a multi-asset model portfolio, where the investement decisions are made by a third party Discretionary Portfolio Manager (DPM) (also known as a Discretionary Fund Manager (DFM) or Discretionary Invetment Manager (DIM)). There is no direct client relationship between the client and the manager. The adviser firm is the client of the manager.

Managed Portfolio Service can be further divided into two broad categories:

Custom Managed Portfolio Service (Custom MPS): this is when a range of multi-asset model portfolios are designed for a specific target market, set by the Distributor, for example, a client segment for financial advisers. The financial adviser can be a co-manufacturer in the arrangement and define the model range objectives, constraints and parameters. As the service is collective, there is no VAT on the investment management fee. Elston Consulting was one of the earlier pioneers of this approach in 2018, fusing their experience from building and governing strategies for large cohorts of pension scheme members, with the FCA Product Governance (PROD) rules that came in force or advisers and managers. Custom MPS represents the bulk of assets we consult on, but is a small but growing part of the overall industry.
Ready-made Managed Portfolio Service (Ready-made MPS): this is when a range of multi-asset model portfolios are designed for a generic target market, set by the manufacturer. The financial adviser is not a co-manufacturer in the arrangement and has no input into defining the model range objectives, constraints and parameters. There are many Discretionary MPS providers to choose from. This represents the bulk of assets for the indutry.

How to choose a Custom Managed Portfolio Service provider?

We think the three key characteristics of a good Custom Portfolio provider are:
How experienced are they running Custom Portfolio strategies?
How differentiated is their Custom Portfolio proposition from their ready-made proposition?
How can they manage the scale of running multiple Custom Portfolio strategies?

How to choose a Ready-made Managed Portfolio Service provider?

We think the three key characteristics of a good Ready-made Portfolio provider are:
How experienced are they running Ready-made Portfolio strategies?
What are their risk-adjusted returns relative to 1) their objectives, 2) a multi-asset benchmark, and 3) a peer group
Is their data readily available for comparison on leading comparison tools such as FE MPS Directory and Morningstar MPS Directory

What is discretionary fund management? What is discretionary investment management? What is discretionary portfolio management?

Discretionary investment management is when a professional investment manager can make changes to a multi-asset model portfolio (in line with its objectives) without the consent of the end-investor (end-client).
Discretionary investment managers (DIMs) also known as Discretionary Fund Managers (DFMs) or Discretionary Portfolio Managers (DPM) typically refers to managers of a Managed Portfolio Service.
Private Client Investment Managers offering Bespoke Portfolio Management service also work on a discretionary basis.

What is the difference between Discretionary or Advisory Model Portfolios?

A multi-asset portfolio or "Model Portfolio" can be designed the same way and consists of a list of selected funds, and a target weight for each fund in that list. Whether a model portfolio is "Discretionary" or "Advisory" impacts the operational aspect of the portfolio.
A Discretionary Model portfolio is a portfolio recommended by an adviser to a number of clients, where the assets are held on platform, and portfolio's discretionary portfolio manager (DPM) can make changes (in line with the portfolio's objectives) to that portfolio without consent of the end client. The advantage of this approach is that portfolios are kept up to date, and there is a consistent performance journey for all clients invested in that portfolio. From a regulatory perspective, the manager of the portfolios is the Manufacturer of the portfolio, and the adviser is the Distributor.
An Advisory Model portfolio is a portfolio recommended by an adviser to a one or a number of clients, where the assets are held on platform, and the adviser can make changes (in line with the portfolio's objectives) to that portfolio following written consent of the end client. The advantage of this approach is that clients have final say as regards portfolio changes. The disadvantage is inconsistency: different clients can end up in different versions of the same portfolio depending on when they last formally engaged with the portfolio review process. From a regulatory perspective, the adviser is the Manufacturer & Distributor of the portfolio.

What's the difference between a "portfolio" and "fund"?

We try and ensure best practice and disambiguation by differentiating between the word "portfolio" and the word fund. In our framework, we differentiate between portfolio and fund as follows:

The term "portfolio" and "portfolio manager" only refes to the investment in (or management of) a number of investments, each with their own Individual Security Identification Number (ISIN).
A multi-asset portfolio portfolio typically consists of a 12-20 funds. Within each of those funds, there may be a portfolio of securities.
The term "fund" and "fund manager" only refers to the investment in (or management of) a single investment with a single Individual Security Identification Number (ISIN).
A multi-asset fund consists 1 fund. Within that fund, there may be a portfolio of other funds. Within each of those funds, there may be a portfolio of securities. A multi-asset fund is sometimes known as "unitised portfolio" or "wrapped portfolio".

INVESTING FOR INCOME

What is income investing

Income investing is where the objective is to maximise income yield for a given asset class, whilst considering the risks related to obtaining that income.

Why do investors like income investing

Some Retail and professional investors like income investing because the concept that initial capital is left untouched (but will fluctuate in value), whilst an income is generated. This is a classic form of investing and differs from “Total Return” investing (which is agnostic to whether returns from capital gains or income yield).

Why does income investing make sense for Trustees

Income investing makes particular sense for Trustees because some Trust structures (for example Life Interest Trusts) split out the beneficiaries of capital and income.

What is Equity Income investing?

Equity Income investing is when the preferred asset class is Equities, which has the highest risk-return potential, and with a focus on high dividend paying equities to generate a regular income. The invested capital could fluctuate materially. Equity Income investing is seen as a defensive form of Equity investing because dividend paying companies tend to show consistency as part of their total returns is underpinned by income yield. Equity income investing is also known as Yield Factor and in the UK is also associated with a bias to the Value-factor.

Find out about our UK Equity Income fund
> Our UK Equity Income fund

What is Multi Asset Income investing

Multi Asset Income investing is when the preferred asset class is a mix of equities and bonds, which has a moderate risk-return potential, and a focus on dividend-paying equities and income-generative bonds to generate a regular income. The invested capital could fluctuate moderately.

Find out about our Multi-Asset Income portfolios
Find out about our Multi-Asset Income fund
> Our Multi-Asset Income solutions

What is Fixed Income investing?

Fixed Income investing is when the preferred asset class is bonds, which has a moderate risk-return potential, and a focus on dividend-paying equities and income-generative bonds to generate a regular income. The invested capital could fluctuate, but to a lesser extent than equities. Fixed Income investing means investing across different types of Bond or Bond fund with due consideration of currency, credit quality and duration.

What is the lowest risk form of Income investing?

The lowest risk form of Income investing is when investors are looking for near-nil volatility investments (such as Cash, Money Market Funds and near-term Direct Gilts), and yields that are aligned to SONIA (Sterling Overnight Index Average”, which is influenced by the Bank of England “Bank Rate” or “Base Rate.” Money Market Funds and near-term Direct Gilts can provide more attractive yields than Fixed Term Deposits offered by banks, because the bank is “disintermediated” from the investors accessing wholesale money markets.

Find out about our Money Markets portfolio
> Our Money Market portfolio

Find out about our Direct Gilts portfolio
> Our Direct Gilts portfolio

What is Retirement Income investing?

Retirement Income investing is nothing to do with a portfolio’s yield and everything to do with its ability and durability to support regular withdrawals on a total returns basis.

Find out about our Retirement portfolios
> Our Retirement portfolio

MULTI-ASSET PORTFOLIOS

What is a multi-asset portfolio?

A multi asset portfolio combines a mix of assets (Equities, Bonds, Alternatives and Cash) to deliver a diversified portfolio with a defined risk-return objective. The % equity allocation is the main determinant of overall risk-return characteristics. Each of the funds are held by the end client who therefore holds several funds making up that portfolio on a platform. Find out more about our Adapative portfolios which are available for licensing to DPMs.
> Portfolio Solutions: Our Adaptive range

What is a multi-asset fund?

A multi asset fund combines a mix of assets (Equities, Bonds, Alternatives and Cash) to deliver a diversified portfolio with a defined risk-return objective. The % equity allocation is the main determinant of overall risk-return characteristics. Each of the funds are held within a single fund who therefore holds a single fund on a platform. Multi-asset funds are sometimes referred to as unitised portfolios.
The performance of multi-asset funds can be compared on databases such as Bloomberg, Financial Express and Morningstar.
> Research & Consulting - helping you choose a multi-asset fund for your advice business

What is a multi-asset income portfolio?

A multi asset income portfolio provides exposure to a diversified mix of income-generating asset classes including equities, bonds, property, and infrastructure etc. The aim is to deliver sustainable income with lower volatility than equity income alone.
Find out more about our multi-asset income strategy which is available for licensing to DPMs.
> Our Multi-Asset Income solutions

What is a multi-asset income fund?

A multi-asset income fund is a unitised version of a multi-asset income portfolio. It combines income-generating assets into a single fund. This simplifies access and management while still aiming to deliver diversified, steady income.
Find out more about our multi-asset income index strategy available for licensing to Fund Providers.
> Our Multi-Asset Income solutions

What is an all-weather portfolio?

An All‑Weather Portfolio is a multi‑asset strategy designed to deliver steady returns across all market conditions, while constraining drawdowns and managing volatility.
Find out more about our All Weather Portfolio strategy available for licensing to DPMs.
> Our All-Weather Portfolio solutions

What is an all-weather fund?

An All‑Weather Fund is the same multi‑asset strategy implemented within a unitised fund structure. It offers the same diversified, risk-balanced approach but with the benefits of simplicity, automatic rebalancing, and ease of access through a single investment.
Find out more about our All Weather investment strategies available for licensing to Fund Providers.
> Our All-Weather Portfolio solutions