Legal & General has confirmed it is releasing a new share class to its existing multi-manager fund range offering no performance fee for an increased annual fee.

The new ‘A' share class will have an annual management fee of 1.5 per cent and will be launched later in the summer, once the Financial Services Authority has approved the product.

At present, the existing multi-manager share class has an annual management charge of one percent with an additional one per cent annual performance fee.

Legal & General today confirmed that the new share class would be made available through its existing platform distribution partners and through independent financial advisers.

L&G has three funds within its existing ‘R’ share class – the Multi-Manager (MM) Growth fund, MM Income fund and MM Balanced managed fund.

As it stands, the company currently waves the initial charge to 0 per cent for those investors who invest directly online and there are no exit fees on the product.

For those customers who apply by post or over the telephone, there is an additional 3 per cent initial charge to cover administration.

These funds have a medium to long term investment horizon of five years or more and the minimum investment is a £500 lump sum or £50 on monthly direct debit.

Investors wishing to find out more information can do so at the L&G MM website (click here).