AJ Bell has reduced its charges on three of its passive multi-asset funds by up to 20 percent as the company fulfils its aim in passing on cost savings as the funds grow in size.

The AJ Bell Balanced Fund, the largest fund which has seen a reduction in its ongoing charge figures (OCF) has been cut from 0.5 percent to 0.47 percent in June 2018. This has now been further reduced to 0.4 percent.

The Adventurous and Moderately Adventurous Funds’ OCF has dropped from 0.5 percent to 0.44 percent, a total drop of 12 percent.

The funds were launched in March 2017.

Kevin Doran, chief investment officer (CIO) at AJ Bell,said: "It is an oddity in the fund management market that despite many costs that fund managers incur being fixed, the percentage charge that customers pay often does not decrease as the funds grow in size.

"The approach we have taken is to fix the charge we levy to run the funds and then any cost savings we can achieve, either through efficiencies of scale or negotiating down underlying fund charges, automatically benefit customers."

The AJ Bell passive funds match six different levels of risk which are cautious, moderately cautious, balanced, moderately adventurous, adventurous and global growth.