Elston GIA Portfolios
- With falling CGT allowances, and the risk of rising CGT rates, there is a growing need for CGT-efficient strategies for general investment accounts (GIA) where CGT is applicable (unlike within ISAs and SIPPs).
- The Elston GIA Portfolios are available for licensing to financial advisers and include 5 risk profiles, with each model built with 3 building blocks: an Equity, a Bond and and an Alternatives fund.
- Each asset-class building block is a fund-of-funds, so funds switches for each asset class are made WITHIN the fund mitigating unnecessary CGT triggered by MPS solutions.
- Advisers can manage - and net off - gains and losses between each asset class.
About the portfolios
The portfolios are designed for financial advisers:
- 5 risk profiles
- Built with 3 "building block" asset class fund-of-funds
- Switches made within funds
About this strategy
Why this strategy
- Whilst Elston understands and supports the shift towards discretionary Managed Portfolio Services (MPS), the MPS rebalancing process uses up shrinking CGT allowances quickly and inadvertently.
- For GIAs, a different approach is needed.
- The Elston GIA Portfolios are a range of 5 risk-rated portfolios constructed with a curated research list of asset allocation “building block” fund-of-funds: one for equities, one for bonds and one for alternatives.
- The advantage of this approach over an all-in-one single-risk-profile multi-asset fund is that it gives advisers the option of netting off gains against losses, when asset class performance is dislocated, as it was in 2022.
- The other key advantage is that gains within each OEIC roll up free of CGT: hence MPS-style switches within each OEIC do not crystallise gains as they do when making switches across an MPS.
- Elston’s new solution for advisers acknowledges that different tax wrappers require different implementation approaches.
