Archived article
Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
AJ Bell has reduced the ongoing charges for its multi-asset income funds, the VT AJ Bell Income Fund and VT AJ Bell Income & Growth Fund. The annual charges, previously 0.65%, have been cut by 15 basis points to 0.50%, effective as of 1 November this year.
The funds have demonstrated strong performance since their launch in March 2019, with the VT AJ Bell Income Fund achieving a five-year total return of 22.51% and the VT AJ Bell Income & Growth Fund reaching 27.58%, as of 31 October 2024. This performance has underscored their importance in AJ Bell’s expanding portfolio, which also includes the Managed Portfolio Service (MPS), Growth, and Responsible investing funds.
In addition to the reduced charges, AJ Bell has introduced a new "smoothed income" payment model for these funds, providing investors with 11 equal monthly income payments followed by a final balance distribution in the 12th month. This approach aims to provide a steady income stream, especially for investors relying on income during retirement.
Ryan Hughes, Managing Director at AJ Bell Investments, said: “After another strong year for our investments business, we are very happy to announce a reduction in charges for our range of income funds. We remain committed to passing on economies of scale to our customers as we continue to grow, ensuring we are delivering excellent value investment solutions alongside top-quartile investment returns.”
Hughes noted that the smoothed income approach will provide reliable income for better budgeting and cash flow planning. “As more investors look to rely on investment income in retirement, this approach will make life easier,” he added.
Written by:
Ryan Hughes
Managing Director - AJ Bell Investments
Ryan Hughes is Managing Director of AJ Bell Investments. He has over 25 years’ experience across a variety of roles covering investment research and fund management, working in a range of companies spanning financial advice through to global asset management. Ryan joined AJ Bell in 2016 and in 2024, he was made Managing Director of AJ Bell Investments. Ryan is a member of the CFA UK Society and has been recognised as one of the leading fund researchers in the UK.
Ways to help you invest your money
Put your money to work with our range of investment accounts. Choose from ISAs, pensions, and more.
Let us give you a hand choosing investments. From managed funds to favourite picks, we’re here to help.
Our investment experts share their knowledge on how to keep your money working hard.