AJ Bell has launched a new fund adding a higher expected return option to its passive multi-asset range. 

The firm said it was launching the new passive global growth fund in response to the “increased global outlook of advised clients” and the ongoing demand for higher risk investment strategies from long-term investors.

The new fund differentiates itself from the rest of the range and similar funds through its focus on asset classes, such as emerging markets and technology, which are likely to make up a larger part of future indices.

The fund will invest in shares across different regions, including Europe, North America, Asia and the UK, with minimal exposure to lower risk assets such as bonds and cash.

The ongoing charges figure (OCF) will be capped at 0.5% per annum. 

A launch offer period opens today (24 May) with a fixed price of £1 per unit, with the fund to start trading on 11 June.

AJ Bell has waived its platform charge for holding its passive funds until January 2019 and there will also be no trading fees for purchasing the funds.

The fund is available for investment via AJ Bell’s ISAs, pension and general investment account.

Kevin Doran, CIO and managing director of AJ Bell Investments, said: “As globalisation continues its march forward, it’s no surprise that investors are thinking more globally and seeking ways to access the potential growth of global markets.

“Our exposure to the top EM countries, known as the EM7, (Brazil, China, India, Indonesia, Mexico, Russia and Turkey) and innovative technology companies is higher than similar multi-asset funds on the market, enabling the global growth fund to truly harness the countries and sectors which are driving growth across the

globe, giving investors the opportunity to buy the portfolio of the future, today.”

He added: “The fund will be a popular option for clients looking to build that long-term nest egg, be it for their own retirement or for children or grandchildren, who can tolerate a higher level of risk.”