AJ Bell removes VAT from managed portfolio service
AJ Bell has announced it is removing VAT from its Managed Portfolio Service (MPS), as of October last year.
The change follows a similar move by the firm's rival Brooks Macdonald just last week.
VAT is being removed from AJ Bell's annual management charge of 0.15%, reducing it from 0.18% to 0.15%. This will bring the total cost of all AJ Bell's passive MPS options below 0.50%, inclusive of the MPS ongoing charges figure (OCF) and core platform fee of up to 0.20%.
The impact of the removal of VAT on the OCF of AJ Bell's Balanced Growth MPS and Income MPS options is:
|
|
Balanced Growth |
Income |
||
|
|
Old OCF |
New OCF |
Old OCF |
New OCF |
|
Passive MPS |
0.31% |
0.28% |
0.37% |
0.34% |
|
Active MPS |
0.75% |
0.72% |
0.66% |
0.63% |
|
Pactive MPS |
0.64% |
0.61% |
N/A |
N/A |
The AJ Bell Investcentre core annual platform charge for SIPP, ISA and General Investment Account remain 0.20%, reducing on assets over £1m.
The annual charge for the AJ Bell Retirement Investment Account remain 0.25% on assets below £500,000 and 0.20% on assets above £500,000.
The new charges for all of AJ Bell's MPS options and its full platform pricing options can be found at AJ Bell Investcentre
AJ Bell is also preparing to launch a Responsible MPS over the coming months, which will give advisers a low-cost managed portfolio for clients who want diversified exposure to companies with strong environmental, social and governance (ESG) credentials.
Kevin Doran, chief investment officer at AJ Bell, commented: "These changes take all our Passive Growth MPS options below the 0.30% mark which means with our platform charge of 0.20% for our SIPP, ISA or General Investment Account, advisers now have access to a suite of risk-managed portfolios, on platform, at less than 0.50% per annum."
"That's exceptional value in a highly competitive market, consistent with our commitment on costs. We are always looking at how we can evolve the MPS in line with the needs of advisers and are working towards launching a responsible investment option within the MPS over the coming months."
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