AJ Bell has reduced ongoing charges for its multi-asset income range by 15 basis points to 0.50% from 1 November.
The change will effect the VT AJ Bell Income fund and VT AJ Bell Income & Growth fund, which have returned 22.51% and 27.58% across the past five years, respectively.
In addition to the change in fees, the income structure of the fund will now include 11 equal monthly income payments, with a final balance distribution in month 12.
See also: Ian Aylward to lead AJ Bell’s MPS as head of investment partnerships
Ryan Hughes, AJ Bell Investments managing director, said: “After another strong year for our investments business, we are very happy to announce a reduction in charges for our range of income funds. We remain committed to passing on economies of scale to our customers as we continue to grow, ensuring we are delivering excellent value investment solutions alongside strong investment returns.
“At the same time, the move to a ‘smoothed income’ approach helps customers using our income funds manage their investment income. As more investors look to rely on investment income in retirement, this approach will make life easier, with a consistent, reliable income enabling better budgeting and cashflow planning.”
In AJ Bell’s 2024 fiscal year, assets under administration rose 22% while its investment arm increased assets under management by 45% to £6.8bn.
This story was written by our sister title, Portfolio Adviser
