Architas has launched a new share class offering investors a 0% annual management charge (AMC) for its passive range of funds.
Using this share class, investors will have the option of paying an upfront of 2% charge for the funds, in order to receive an annual management charge of 0%.
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There will be an additional charge on the new share class for some ongoing costs for underlying funds and administration, capped at 0.2% per annum.
The company said that this option will deliver an ongoing saving for investors who hold one of the funds for more than 4.5 years, so is likely to be attractive to many advisers, wealth managers and private banks.
Architas head of business development, Cedric Bucher, said: "This is an innovative new pricing structure that may be suitable for long term investors looking for diversified exposure to passive investments."
"We are opening up our funds to more distribution channels and hope that this offer will encourage advisers and institutions to look at the charging structure, and the performance, of our diversified range of funds," he added.
The 0% AMC share class will initially be available via the AXA Wealth Elevate platform and the Cofunds institutional platform, with several others expected to follow.
