AJ Bell is launching five diversified passive funds to suit different levels of risk
Gives DIY investors an easy, no hassle way to access investment markets
Annual charge capped at 0.5% (OCF) - cheaper than 90% of funds in the market
In addition, AJ Bell is waiving its platform charge for the new funds until January 2019
Fixed offer launch period opens on 27 March 2017 for last minute ISA and SIPP subscriptions
About the funds
The AJ Bell Passive funds give investors a choice of five ready-made portfolios diversified across shares, bonds, commercial property and cash, taking away the need for them to worry about which companies, markets or assets to invest in.
Investors just need to choose how much risk they want to take, with the funds matching five different levels of risk - cautious, moderately cautious, balanced, moderately adventurous and adventurous.
The funds will be constantly monitored and updated so that they consistently perform in line with the level of risk selected by the investor, providing them with an easy, no hassle way to access investment markets.
This is the first fund launch by AJ Bell, the investment platform with 140,000 customers and £32 billion assets under administration.
The ongoing charges figure (OCF) will be capped at 0.5% per annum so investors can be sure they will never pay more than that. This is unlike many other multi-asset funds currently in the market where the OCF varies depending on what underlying holdings they are invested in at any one time.
The AJ Bell Passive funds are cheaper than 90% of funds in the market today.
In addition, AJ Bell is waiving its platform charge for holding the funds until January 2019. There will also be no trading fees for purchasing the funds.
This means the total annual charge of 0.5% for investing in the new funds is amongst the cheapest in the market for a passive multi-asset fund.
The launch offer period opens on 27 March to enable investors to utilise any unused ISA or SIPP allowances before the tax year end. There is a fixed price of £1 during that period before the funds start trading on 18 April 2017. Investors can apply via www.youinvest.co.uk.
Andy Bell, chief executive of AJ Bell, comments:
“The guiding principle behind everything we do is to make it easy for people to invest. There is an increasing number of DIY investors who want a ready-made portfolio that takes away the hassle of having to select and monitor the individual investments. That is what these funds deliver and they use a passive investment approach to keep costs low for investors. We are also waiving our platform fee until at least January 2019, meaning the total cost investors will pay is amongst the lowest in the market for an investment solution like this.”
The indicative asset allocations for the funds are shown below. The full portfolios will be disclosed at launch.