AJ Bell plc

05/10/2022 | Press release | Distributed by Public on 05/10/2022 12:53

AJ Bell shares economies of scale with customers via 38% fund charges cut

  • AJ Bell fund charges have reduced by 38% as the range benefits from economies of scale (current AUM £1.3 billion)
  • AJ Bell committed to continuing to reduce costs for customers
  • Four out of the five funds delivered top quartile performance on their five-year performance milestone

Investors in five AJ Bell multi-asset funds have benefited from falling charges and leading investment performance as the funds have grown in size since launch five years ago.

As the fund range has grown to £1.3 billion in assets under management, AJ Bell has steadily reduced the annual charges from 0.5% at launch to 0.31% today, a reduction of 38%.

The new five-year performance track record places the majority of the five funds in the top quartile of their sector. AJ Bell's multi-asset funds are diversified globally across equities, bonds, alternatives and cash, using low-cost passive funds to keep charges low. The funds are managed in line with five different risk levels so that investors can choose the fund that matches their individual risk profile.

AJ Bell multi-asset fund performance:

Fund name

1yr

3yr

5yr

VT AJ Bell Cautious

-0.53%

9.9%

14.14%

Performance vs peers (Quartile)

1

1

1

VT AJ Bell Moderately Cautious

0.63%

15.07%

22.23%

Performance vs peers (Quartile)

2

2

1

VT AJ Bell Balanced

3.11%

21.77%

32.98%

Performance vs peers (Quartile)

1

1

2

VT AJ Bell Moderately Adventurous

4.67%

24.97%

38.39%

Performance vs peers (Quartile)

1

1

1

VT AJ Bell Adventurous

6.81%

30.65%

45.84%

Performance vs peers (Quartile)

1

1

1

Past performance is not a guide to future performance.

Kevin Doran, managing director of AJ Bell Investments, comments:

"As the AJ Bell funds have grown in size we have stayed true to our commitment on costs to pass back the benefits of scale to investors. With a five-year track record under our belts, we are proud of the performance achieved to date and are committed to cutting costs further as the range continues to grow."