Architas has introduced a new charging option on its range of risk-rated passive investment funds to benefit longer-term investors.
A new share class gives retail and institutional investors in the range the option of paying a 2 per cent upfront fee on their investment in order to receive a annual management charge of 0 per cent.
The asset manager says this option will deliver an ongoing saving for investors who hold one of the funds for more than 4.5 years. The share class will still feature a charge for some ongoing costs for underlying funds and administration, which is capped at 0.2 per cent.
Architas head of business development Cedric Bucher says: “This is an innovative new pricing structure that may be suitable for long-term investors looking for diversified exposure to passive investments. In the post-RDR world advisers are looking for asset managers to help them deliver value to their clients.
“We want to give advisers and investors a number of options for them to deliver the best and most appropriate service to their clients. This new structure will provide an ongoing saving for those who remain invested for longer than 4.5 years so is likely to be attractive to many advisers, wealth managers and private banks.”
The new share class will be first made available on the Axa Wealth Elevate platform and the Cofunds institutional platform. The firm is “in discussion” with several other platforms to make the share class available to a wider range of advisers and institutional clients.