AJ Bell has entered the fund management space with the launch of a range of passive-only multi-asset portfolios.
The five risk-rated multi-asset portfolios have ongoing charges figures capped at 0.5 per cent a year, with AJ Bell also waiving its platform charge for holding the products until January 2019. The portfolios will be run by fund selection head Ryan Hughes, who joined from Apollo last year, and head of investments Leon Diamond.
The asset allocation for the range will be reviewed on a quarterly basis.
Andy Bell, chief executive at the financial services firm, said the focus on passive had been adopted to reflect behaviour from intermediaries.
“Advisers are increasingly turning to passive investment solutions to keep costs low for their clients, and many are choosing to outsource investment management to third parties so they can focus on their core financial planning services,” he said.
The use of passive portfolios has been on the increase as fund firms respond to fee pressure by offering lower-cost alternatives. Last month IBoss Asset Management said it would cut charges on its multi-manager funds by upping the use of trackers and exchange-traded funds, while a number of discretionary fund managers have launched passive-only model portfolio services.
The AJ Bell range’s investment allocations will be split across four asset classes: equities, bonds, property and cash.
| | Moderately Cautious | Balanced | Moderately Adventurous | Adventurous | |
| Cautious | |
| Equity | 20% | 30% | 40% | 50% | 60% |
| Bond | 60% | 55% | 45% | 35% | 20% |
| Property | 5% | 10% | 10% | 10% | 15% |
| Cash | 15% | 5% | 5% | 5% | 5% |
| | | | | | |
