AJ Bell has changed the fee structure across its entire fund range, leading to charges being cut on most of its multi-asset funds.
The firm set a single 0.31 per cent ongoing charges figure for its six multi-asset growth funds, alongside a charge of 0.65 per cent for its two income funds and 0.45 per cent for its responsible growth fund.
This means the majority of funds will see a reduction in cost with only the balanced fund seeing a slight increase.
AJ Bell old and new fund charges
Current Model OCF
New Model OCF
Income & Growth
Source: AJ Bell
Kevin Doran, chief investment officer at AJ Bell, said the change would give greater clarity and certainty to customers and advisers.
“The new model ultimately means cost cuts for most customers and fixes our pricing extremely competitively versus peers,” he added.
“Over time, we expect that with continued fund asset growth, we will be able to take advantage of economies of scale and decrease the level of the fixed OCF, further delivering value to customers.”
The changes were implemented in January this year and will be reviewed annually.