FE Investments, which provides discretionary Managed Portfolio Services (MPS), has joining a growing band of fund managers in axing VAT from its fund sales. 

Sanlam UK ceased charging VAT on its MPS in April and others who have done the same recently include Charles Stanley, 7IM, Brooks Macdonald and AJ Bell.

FE Investments, the investments arm of fund data company FE fundinfo, says the removal of VAT payments will apply to all of its portfolios, including its Hybrid, Mosaic, Responsibly Managed and Income ranges.

FE Investments was formed in 2015 and has £4bn in Assets Under Management, up £1bn in less than a year. 

The firm says it has increased its presence on third party platforms in recent months and its range of managed portfolios is now available to advisers using 14 different investment platforms.

Rob Gleeson, chief investment officer at FE Investments, said: “We are pleased to announce we will no longer have VAT applied to our range of portfolios. By reducing our fees through the removal of VAT charges, we are making our offering even more competitive so even more end investors can benefit from our investment approach.”