AJ Bell simplifies and reduces fund charges

by | Feb 4, 2022

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AJ Bell has simplified the charging structure across its entire fund range which will see charges cut on its range of multi-asset funds.

AJ Bell has set a single 0.31% ongoing charges figure for all six of its multi-asset growth funds, making it easier for customers and advisers to understand. Its two income funds will both charge 0.65% and its responsible growth fund will charge 0.45%.  The simplified new charging structure and the old charges can be seen in the below table and makes the funds the lowest cost, unfettered, options available in the multi-asset marketplace

Fund Current Model OCF New Model OCF
Cautious 0.34% 0.31%
Moderately Cautious 0.32% 0.31%
Balanced 0.30% 0.31%
Moderately Adventurous 0.31% 0.31%
Adventurous 0.31% 0.31%
Global Growth 0.32% 0.31%
Income 0.68% 0.65%
Income & Growth 0.69% 0.65%
Responsible Growth 0.46% 0.45%

 

Implemented in January 2022, the OCFs will be reviewed annually with a goal to continuously pass on the benefits of scale to customers.

 
 

Kevin Doran, chief investment officer at AJ Bell, comments:

“We’re delighted that the change in our charging will give greater clarity and certainty to customers and advisers around what they’ll be charged when they invest in an AJ Bell product.

“The new model ultimately means cost cuts for most customers and fixes our pricing extremely competitively versus peers. Over time, we expect that with continued fund asset growth, we will be able to take advantage of economies of scale and decrease the level of the fixed OCF, further delivering value to customers.”

 

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