AJ Bell, a UK-based provider of online investment platforms, has unveiled four new funds within its managed portfolio service (MPS) in response to increasing demand for income solutions.
The new funds comprise two different strategies- Income 1 and Income 2- with an active or passive underlying portfolio.
Income 1 focuses on long-term capital protection, while Income 2 emphasises long-term inflation protection. Both the strategies have target yields of 4% each.
AJ Bell Investments CIO and MD Kevin Doran 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. They can choose from capital or inflation protection with a target yield of 4% and as with the rest of the MPS, there are both passive and active options.”
The new funds will be sold to advisers via the AJ Bell Investcentre platform and will annually charge 0.15% plus VAT as management fee.
The launch of the new funds increases the total number of portfolios in the MPS range to 16. Last month, the firm launched an active version of its managed portfolio service, comprising six portfolios.