In this article, we break down how smoothing mechanisms work, why they divide opinion, and how we are using them at Elston to build industry-first blended portfolios that aim to deliver a more stable journey for both accumulation and retirement.
The Smoothed Funds Survey provides a valuable look at adviser's current opinions, utilisation, and strategies regarding smoothed and with-profit funds.
Find out more about the Elston Smart-Beta UK Dividend Index (ticker: ELSUKI)
For latest UK Equity Income index factsheet click here
At Elston Consulting, we design investment solutions delivered as portfolios, funds and indices for our financial adviser, investment manager and fund provider clients. In the same way that advisers need to think about their target market of retail customers, we as a co-manufacturer need to think about our target market of UK financial advisers. Target market research and testing forms an important part of our solutions design process to ensure what we develop is helpful to UK advisers and solves a client need and can be clearly communicated. Thank you to those advisers that are participating in our market research surveys. It might give a clue as to what is currently in the laboratory!
As asset allocators we are aware of the surplus of funds in some areas, and glaring gaps in others. That’s why we maintain a wishlist which we share in our catch ups with fund houses. We are now making this public to drive industry engagement.
Long-term UK gilt yields are rising despite falling inflation expectations and BoE rate cuts. Explore how debt sustainability concerns and reduced demand for bonds are driving this unusual market shift.
UK equity income stocks are lower valuation/value bias so provide diversification against higher valuations/growth bias inherent in US equity exposure.
Find out more about the Elston Smart-Beta UK Dividend Index (ticker: ELSUKI)
For latest UK Equity Income index factsheet click here
With the dollar down 20% since 2022, hedging looks tempting. But UK debt, housing risks, and BOE policy suggest sterling could be even more vulnerable.
Parallels are drawn between the mid-1990s tech revolution and today's AI-driven surge in the US equity market. While valuations appear stretched, the underlying conditions are more measured than the dot com era. The US economy continues to show resilience with AI-led productivity gains and potential rate cuts shaping the outlook.
In our latest investment outlook for 4q25, we discuss how markets have moved towards resolution.
Please join Natasha Sarkaria (BlackRock) and Henry Cobbe, Hoshang Daroga and new arrival Mike Bell (Elston) for this updated Outlook webinar on Thu 9 Oct 2025 at 1030am. Subscribe to our weekly newsletter to get all our insights to your inbox (for UK financial advisers only) Read more to register Medium-term concerns remain on US growth and equities valuations. Any US recession would likely be global. Near term downside risks to the economy are greater in Europe and the UK.
Gold has defied rising real yields since 2022. Central bank buying, debt sustainability fears, and currency debasement risks continue to drive demand.
Is bitcoin a reliable hedge against currency debasement, or does gold still lead? We explore risks, volatility, and why central banks continue to back gold.
 Some platforms pay decent rates on cash. Others trouser the "net interest margin" - when the interest they earn on platform cash is more than they pay on platform cash. This is something the FCA has flagged in a Dear CEO to platform providers when the rates have been unfair to Consumers.
So, advisers: if you like a platform, but don't like their cash rates, then consider smarter cash management solutions. Basic rate taxpayers: if your client is a basic rate taxpayer then use a money market fund. This is a way of accessing wholesale sterling money markets, whilst disintermediating the banks who have a regulatory requirement to hold money markets too. Additional or higher rate taxpayers: if your client is an additional or higher rate taxpayer then use near-term low-coupon direct Gilts. The capital and interest is guaranteed by HM Treasury, and the amounts are unlimited. Their low coupon means the bulk of the quoted "Yield To Maturity" is capital gains which are CGT exempt for Gilts, meaning higher overall Gross Comparable Yield relative to money markets and cash for higher rate taxpayers. By sticking to near-term (<3 year) gilts, there is very low (<3 year) duration risk.  Read Henry Cobbe’s latest interview with Professional Adviser about why adviser-built model portfolios could be the real winners in the MPS market.
https://www.professionaladviser.com/interview/4519429/adviser-built-portfolios-win-mps-race 
‘Income’ as an investment strategy should not be viewed as a catch-all. Drill down, and there are a variety of different strategies, each with their own outcome.
The whole world of retirement advice is undergoing a fundamental shift, and rightly so. The old frameworks simply don’t cut it anymore. Asking a client what their risk profile is and then slotting them into a generic box is meaningless. Retirement isn’t about labels it is about outcomes. And targeting particular outcomes requires proper modelling.
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