AJ Bell today (14 November) unveiled reduced ongoing charges (OCF) across its multi-asset income range, the VT AJ Bell Income Fund and VT AJ Bell Income & Growth Fund.
The OCF for both funds is reduced by 15 basis points, from 0.65% to 0.50%, effective from 1 November.
AJ Bell Investments’ multi-asset income range has delivered strong performance since launch in March 2019, with a five-year total return of 22.51% and 27.58% for the VT AJ Bell Income Fund and VT AJ Bell Income & Growth Fund respectively, as at 31 October 2024.
The funds will also now offer a smoothed income profile, with 11 equal monthly income payments and a final balance distribution in month 12.
Since launch, the multi-asset income range has formed an important part of the success of AJ Bell Investments, alongside its Managed Portfolio Service (MPS), Growth and Responsible investing funds. The Investments business has grown to assets under management (AUM) of £6.8 billion as at 30 September 2024, up 45% in the year and with inflows of £1.5 billion.
Today’s announcement follows charge reductions on its Investcentre adviser platform earlier this year, with fees cut to between 0.2% and 0.075% and capped on accounts over £2m.
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.”
