A new managed portfolio service, thought to be the first with no annual management fees, has been launched by AJ Bell Investcentre.
The Money Market MPS includes no annual management charge and includes access to money market funds and short duration bonds.
Customers will just need to pay platform fees and the cost of underlying funds with an average 0.1 per cent ongoing charge figure.
AJ Bell product director, Mark Rendle, said: “In an environment where interest rates may sit above 5 per cent for some time to come, a number of advisers and clients are looking for cash-like returns, while maintaining the benefits of remaining in their existing tax wrappers and having the flexibility to easily invest in other assets again at a time of their choosing.
“To help advisers service those clients we’re bringing to market the first Money Market MPS solution which carries no AMC. Combined with AJ Bell’s low-cost platform it makes this a highly attractive proposition for advisers and their clients.
He added: “The on-platform Money Market MPS solution will allow customers to retain all their assets within existing tax wrappers, without the need to move to a different product to access cash-like returns.
"For a variety of reasons, clients may require a cash solution for both short and medium-term financial planning, particularly in a higher interest rate environment. This offering from AJ Bell Investments provides a new option for those customers, demonstrating our commitment to offering advisers the right investment choices with low costs.”
The Money Market MPS service is available to advisers through the AJ Bell Investcentre platform and allows customers to hold assets within their existing tax wrappers, without the need to transfer their accounts to access cash savings products off-platform.
tara.o'connor@ft.com
