Multi-asset funds 'make much more sense' following CGT changes

Advisers show their interest in a multi-asset fund approach

Isabel Baxter
clock • 3 min read

Investing in multi-asset funds ‘make much more sense’ following the recent capital gains tax (CGT) changes, Newton Investment Management head of mixed asset investment Paul Flood has said.

When investing in a multi-asset fund, as the investment is in one fund rather than several different funds, there is no CGT charge when the manager sells underlying funds. Meanwhile, with a model portfolio service (MPS), investments are held directly by the client, which means gains or losses will usually contribute to the client's annual CGT exemption allowance. MPS would be subject to CGT if it exceeds the new limits of £6,000 and soon-to-be £3,000. Flood explained that given the Autumn Budget CGT changes, multi-asset "just makes much more sense now" for financial advisers. "We'r...

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Isabel Baxter
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Isabel Baxter

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