Architas has introduced a new charging option for its passive fund range.
This option will allow retail and institutional investors the choice of an upfront two per cent fee to Architas. This will then mean they benefit from a zero per cent annual management charge.
The only additional charge will be ongoing costs for underlying funds and administration which is capped at 0.2 per cent per annum.
Architas said the option would be most suitable for long-term investors who want diversified exposure.
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Cedric Bucher, head of business development at Architas, said: "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.
"This new structure will provide an ongoing saving for those who remain invested for longer than four and a half years so is likely to be attractive to many advisers, wealth managers and private banks."
He said the offer would initially be available via the AXA Wealth Elevate platform and Cofunds institutional platform and Architas was looking at expanding it onto other platforms in the future.

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