AJ Bell Funds and MPS

At AJ Bell, we believe in providing advisers and their clients with choice. It’s why we offer a wide range of investment solutions, from income to growth, active to passive, and funds to model portfolios.

Choosing between funds and the MPS is often a matter of personal preference, but to help you make that decision we have put together this quick comparison table, showing where they differ and where they’re similar.

Where are they the same?
Funds and model portfolios
Risk profiling

All of the solutions in our growth range are mapped to the five major risk profilers.

For users of the Dynamic Planner profiling system, the portfolios are ‘gold badged’ to offer reassurance about their ongoing suitability.
Asset allocation Combining data science with human intelligence, all of the portfolios and funds benefit from our innovative approach to strategic asset allocation, plus the flexibility of our tactical asset allocations.
Discretionary management As discretionary managed products, both our funds and model portfolios are able to anticipate and react to market conditions, meaning they are continuously updated and monitored.
Consistency of outcome Thanks to the rigorous manner in which portfolios are managed, clients with similar objectives can be sure to receive a consistent outcome.
Charges Regardless of what form the portfolio is delivered in, the annual fee payable to AJ Bell for investment is just 0.15%.
Investment universe Thanks to the flexibility of the AJ Bell platform, our model portfolios are not restricted by the type of investments that can be used. So, just like funds, only the best and most appropriate investment solutions can be used, regardless of structure.
Where are they different?
Funds Model Portfolio Service
Legal structure UCITS (Mutual) Fund. A single, open-ended portfolio collectively owned by all unit/shareholders. Segregated portfolio of assets owned individually by the client.
Composition The funds and Passive model portfolios are made up of a range of passive ETFs & funds, bonds and cash. Due to minimum trading sizes, this may result in a different choice of investment for some asset classes. The Active model portfolios are made up of a range of both actively managed and passive strategies.
What the client sees A single line investment with a single price. A portfolio of investments (typically between 10-15). All individually priced and valued.
Portfolio rebalancing Consistently according to cash flows. Rebalanced quarterly on 18th (or next working day) after each calendar quarter.
Ad hoc rebalancing made in exceptional circumstances.
Charging Initial No initial fee No dealing charge
Investment Management Charge 0.15%. No VAT payable on fund AMC. 0.15% + VAT. Makes it 0.18%
Portfolio OCF Depends on portfolio but lack of restrictions on minimum size usually leads to lower OCF on funds. Depends on portfolio. Utilises the scale of the AJ Bell platform to access institutional share classes where appropriate that typically have lower costs.
Other costs ACD, Audit, Depository and FCA fees to cover fund charges. Become negligible as fund size increases. None
Platform Standard platform fees (from 0.2%) apply.
Exit No exit fees.
Exit subject to capital gains tax (if applicable).
No dealing charge.
Exit subject to capital gains tax (if applicable).
Tax Stamp Duty UCITS vehicles exempt from Stamp Duty.
Capital gains All internal fund transactions free from Capital Gains Tax. Portfolio transactions subject to Capital Gains Tax (if applicable).

AJ Bell Growth funds
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AJ Bell Income funds
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Managed Portfolio Service
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