UK, single market and regional index funds will now have an AMC of 0.20%, while global funds will have an AMC of 0.30%.
The institutional fund charges cover I, G and X unit classes and additional expenses for all of these classes have also been reduced across the full range of L&G’s active and passive funds.
L&G Investments said the growth of its intermediary business had enabled it to reduce the registration fee element of additional expenses from 0.03% to 0.01%.
This means in some cases the TER has been reduced by as much as 12bps.
Simon Ellis, managing director L&G Investments, said: "Over the last two to three years, L&G Investments has experienced a strong increase in demand for our passive investments, notably from fee-based advisers.
“This review of the pricing structure means advisers will get a better deal when using our simple, low cost and high quality index funds to construct client portfolios.
"The change will enable advisers to use passive strategies as part of their asset allocation and portfolio construction decisions more easily and cleanly, while supporting the move to a fee-based advice market," he concluded.
