AJ BellMay 24 2018

AJ Bell launches global passive fund

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AJ Bell launches global passive fund

AJ Bell has launched a fund in its passive multi-asset range which aims to offer a higher expected return.

The Passive Global Growth fund was launched in response to the increased global outlook of advised clients, as well as the ongoing demand for higher risk investment strategies from long-term investors.

It focus on asset classes such as emerging markets and technology which are likely to make up a larger part of future indices.

Kevin Doran, chief investment officer and managing director of AJ Bell Investments, said: "As globalisation continues its march forward, it’s no surprise that investors are thinking more globally and seeking ways to access the potential growth of global markets.

"True to our guiding principle of making it easy for people to invest we are delighted to extend the AJ Bell passive fund range with a unique higher risk and higher expected return option that offers the access to global growth opportunities that so many advisers and their clients are seeking.

"The fund will be a popular option for clients looking to build that long-term nest egg, be it for their own retirement or for children or grandchildren, who can tolerate a higher level of risk."

The fund will invest in shares across different regions, including Europe, North America, Asia and the UK, with minimal exposure to lower risk assets such as bonds and cash.

Like all funds in the AJ Bell passive funds range, the Global Growth fund will be monitored and updated so that it consistently performs in line with the designed level of risk and exposure.

AJ Bell’s passive funds give advisers and their clients a hassle-free way to access investment markets via a choice of six fully managed, risk-targeted portfolios.

The new fund's launch offer period opened today (Thursday) with a fixed price of £1 per unit, with the fund starting trading on 11 June 2018.

The company has waived its platform charge for holding its passive funds until January 2019 and there will be no trading fees for purchasing the fund.

AJ Bell said this meant the total annual charge of 0.5 per cent for investing in the Global Growth fund was among the cheapest in the market for a passive multi-asset fund.

Mel Kenny, a chartered financial planner from London-based Radcliffe & Newlands, said: "AJ Bell are certainly making big strides in their proposition and their latest passive offering will be an interesting watch as it’s very much the stomping ground of active manager."