Key takeaways:
- As our lives constantly change, it’s useful to have a flexible investment strategy.
- CT Global Managed Portfolio Trust allows investors to switch between income and growth once per year.
- This switch can be made without incurring capital gains tax liabilities , which is useful for tax planning (see the section on tax efficiency below).
Markets don’t stay still, and neither do our lives. Change is one of the few constants we face, and our finances need to keep up. A fund with flexibility could enable our finances to keep pace with our changing lives.
CT Global Managed Portfolio Trust offers investors an income or growth strategy (more on these below) which they can convert between without incurring capital gains tax liabilities. This offers the flexibility to keep up with changing personal circumstances. It also offers the flexibility to keep up with changing market conditions.
A flexible structure
CT Global Managed Portfolio Trust’s flexible structure allows for changing personal circumstances, and for changes in market conditions.
The fund has a unique feature. It has a simple conversion facility which allows investors to switch between income or growth once a year. The income strategy aims to deliver a regular payment. The growth strategy aims to increase the value of the original investment, or capital.
The flexibility to switch annually means CT Global Managed Portfolio Trust can serve changing needs and preferences. As your growth or income requirements change, so can your strategy. For example, you may begin with the growth strategy as you build your wealth. But as you get closer to retirement, you may want to switch to the income strategy to supplement your salary.
Or perhaps the income strategy may be more attractive in some market conditions, and the growth in others. For example, in a higher interest rate environment, yields on bonds (also known as fixed income) rise, which could suit an income investor. Bonds pay out a regular income which rises and falls with interest rates. But when equities are doing well, investors may consider moving into a growth strategy, to capitalise on the growth in the markets.
To be clear, these are just ideas, and making a decision about investment strategy according to market conditions is very nuanced. If you ever feel at all unsure about what’s best for you, please seek professional advice. But the important point is the CT Global Managed Portfolio Trust has the flexibility to make adjustments according to market conditions. When markets change, so can the fund’s strategy.
Tax efficiency
What do we mean by ‘making changes tax efficiently’? Well, when investors sell assets which have risen in value since they were acquired, they typically have to pay capital gains tax on the increase. This means rebalancing and reallocating investments typically incurs capital gains tax liabilities. But with CT Global Managed Portfolio Trust, you can switch between income and growth without worrying about incurring capital gains tax liabilities.
That’s because with CT Global Managed Portfolio Trust, the conversions between income and growth are not treated as disposals for capital gains tax purposes. Investors can adjust their investment strategy without facing immediate capital gains tax consequences.
This tax efficiency contributes to the strategy’s flexibility and helps with long-term investment planning. Investors can switch according to their needs, without worrying about the capital gains tax consequences.
That’s handy for investors as they can delay potential tax liabilities until a more favourable time, such as when they have losses to offset, or are in a lower tax bracket. This is very useful for tax planning.
It also means investors can make the right decision for their finances according to market outlook and personal financial planning, without being held back by potential tax liabilities. This tax efficiency is crucial for investors who try to manage their portfolios actively, while keeping the potential tax burden of doing so to a minimum.
Flexibility is important for personal finances
CT Global Managed Portfolio Trust’s simple conversion facility allows investors the flexibility to switch between income and growth once a year. Importantly, they can do so without incurring capital gains tax liabilities. This is handy for planning your own finances as you can switch strategy according to your changing needs and do so tax efficiently. It is also useful for those that want to capitalise on changing market conditions, switching between income and growth as new opportunities arise. A flexible investment strategy is key to the changes we face throughout our lives.
Investment Risks
The value of your investments and any income from them can go down as well as up and you may not get back the original amount invested. Gearing is used for investment purposes to obtain, increase or reduce exposure to an asset, index or investment. The use of gearing can enhance returns to investors in a rising market, but if the market falls the losses may be greater.
