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AJ Bell makes further cuts to charges for passive multi-asset funds

4 March 2019

AJ Bell has cut the annual charge across its range of six passive multi-asset funds to 0.35%, in a bid to keep its investments “simple and easy” for investors to understand.

The AJ Bell passive funds launched in March 2017 with an Ongoing Charges Figure capped at 0.5%. Within this, the firm’s Annual Management Charge was fixed at 0.15%.

However, since its introduction two years ago, the AJ Bell Balanced Fund, the largest in the range, has already had its price reduced twice taking it down to 0.40%. The next two largest funds by assets, Adventurous and Moderately Adventurous also saw their charges reduced to 0.44% in January.

Kevin Doran, chief investment officer, AJ Bell, said: “When we launched our funds almost two years ago we put a cap on the OCF so that customers knew in advance the most they were likely to pay. We also made a commitment to reducing the OCF over time as the funds grew in size.”

Doran said that with the OCF now capped at 0.35% across all funds, its passive range “stands toe-to-toe” with the cheapest multi-asset funds in the market.

He added: “Offering true multi-asset exposure and an unfettered approach to investment selection, we make the same low price available to all investors, regardless of which platform they use and irrespective of whether they’re advised or not. We just think it’s about time investment was made easy.”

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