Architas has introduced a new charging option on its range of risk-rated passive investment funds to benefit longer-term investors.
A new share class gives retail and institutional investors in the range the option of paying a 2 per cent upfront fee on their investment in order to receive an annual management charge of 0 per cent. The asset manager says this option will deliver an ongoing saving for investors who hold one of the funds for more than four-and-a-half years.
The share class will still feature a charge for some ongoing costs for underlying funds and administration, which is capped at 0.2 per cent.
The new share class will be made available on Axa Wealth’s Elevate platform and Cofunds’ institutional platform.
The firm says it is in discussions with several other platforms.
Consilium Financial Planning managing director Kevin Morgan says: “This is a positive move as the focus is on transparency.”