Investment platform AJ Bell has launched a ‘Money Market MPS’, designed to provide investors with cash-like returns while preserving their existing tax wrappers.
With no annual management charge (AMC), investors will only pay platform fees and the cost of the underlying funds, which have an average ongoing charges figure of 0.1%. AJ Bell said this is the only product of its kind without a management charge.
The new Money Market MPS will invest in near-cash instruments, including money market funds and short duration bonds.
It allows investors to hold their assets within their existing tax-efficient wrappers, eliminating the need for account transfers to off-platform cash savings products.
Mark Rendle, product director at AJ Bell, said: “In an environment where interest rates may sit above 5% for some time to come, a number of advisers and clients are looking for cash-like returns, while maintaining the benefits of remaining in their existing tax wrappers and having the flexibility to easily invest in other assets again at a time of their choosing.”