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AJ Bell cuts MPS management charge by 40%

AJ Bell has cut the annual management charge on its managed portfolio service from 0.25 per cent to 0.15 per cent, plus VAT.

AJ Bell claims that this 40 per cent reduction makes this one of the cheapest options for financial advisers and their clients looking for a managed investment portfolio.

At the same time AJ Bell is moving to a new in-house asset allocation strategy, which will be benchmarked against Distribution Technology’s Dynamic Planner Risk Ratings.

The portfolios offered will use the ‘risk targeted’ approach rather than the ‘risk rated’ approach, to ensure portfolios consistently target the right level of volatility.

AJ Bell launched its managed portfolio service in August 2016. It offers five risk-rated portfolios constructed from passive investments.

These latest prices cuts mean that the total ongoing charges for these portfolios will be between 0.33 per cent and 0.36 per cent, depending on the risk level selected.

AJ Bell Investments chief investment officer Kevin Doran says: “Our aim with the MPS is to deliver a high quality investment solution to advisers, whilst leading the market on price.

“We’ve been focusing on making our investment process as efficient as possible and are able to pass the cost savings back to advisers and their clients in the form of lower annual fees.”

He says an MPS service made it easier for advisers to offer clients a comprehensive portfolio service without having to manage it themselves, leaving them free to focus on core financial planning advice.


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The Financial Guidance and Claims Bill is debated by the Public Bill Committee today as the Government faces pressure to back a House of Lords amendment which would see savers automatically enrolled into guidance when they access the pension freedoms. Pensions minister Guy Opperman’s decision to remove the amendment last month has been heavily criticised […]


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