AJ Bell adds four targeted income funds to MPS range

AJ Bell has added four more funds to its managed portfolio service range, citing growing demand for income solutions.

AJ Bell adds four targeted income funds to MPS range


The four funds are made up of two different income strategies available in a passive and active version.

The first strategy, Income 1, has a target yield of 4% and focuses on long-term capital protection. Income 2 also has a target yield of 4% but emphasises long-term inflation protection.

The passive versions of Income 1 and Income 2 have an ongoing charges figure (OCF) of 0.34% and 0.35%, respectively, while the active versions have an OCF of 0.66% and 0.73%.

This is the latest fund launch to come from the investment platform in a matter of months, bringing the total number of portfolios in its MPS range to 16.

Last month, the firm launched active versions of the six passive risk-managed portfolios within the MPS.

AJ Bell also recently announced it would be chopping the annual management charge (AMC) of its MPS from 40% to 15% + VAT, following changes to its in-house strategic asset allocation approach.

As with the existing 12 risk-managed portfolios the four income-targeted funds will be benchmarked against Distribution Technology’s Dynamic Planner risk ratings and are mapped to Finametrica’s risk levels.

On the addition of the income funds, Kevin Doran (pictured), chief investment officer and managing director of AJ Bell Investments, said: “The search for income remains a key investment priority for many investors, particularly in the extended low interest rate environment and with many more people remaining invested in retirement and utilising the new pension freedoms.

“Advisers have told us that an income option in the MPS would suit a significant number of their clients and we are pleased to be able to launch these four new portfolios for them.”

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