IOOF Holdings, the Australian wealth manager, has reduced the investment fee for one of its products as market competition intensifies. 

Effective 1 February, the investment fee for IOOF Multi Series Balanced Trust will be 10 basis points lower at 0.55 per cent. Including administration fees, the total investment charge becomes 0.89 per cent. The company has also increased the trust's exposure to active management from 42 per cent to 60 per cent. 

"Active management is the key to investment  performance. For the low fee for 0.55 per cent, advisors can provide their clients with an investment option that is actively managed by a team of investment professionals," said Renato Mota, general manager of distribution for IOOF.

The Multi Series Balanced Trust is part of IOOF's Pursuit Focus line and has a greater exposure to growth assets, such as property and Australian and international shares, with a moderate exposure to defensive assets such as fixed interest and cash. Total returns are achieved over five years. As of 30 September 2011, the trust's size was A$138.84 million ($144.7 million). 

IOOF Holdings is one of the largest financial services companies in Australia offering financial advice, platform management and administration, investment management and trustee services. Its funds under management, administration, advice and supervision as of 30 September 2011 are at A$100.3 billion.