Virgin Money has cut the fee on its controversially priced £2.7bn FTSE All-Share Tracker fund which has been heavily criticised by buyers for some time.
The fund's 1% annual management fee has been reduced to 0.6% as of Friday 25 January.
Though the fee is still high compared to many FTSE trackers out in the market, it does include the cost of the ISA wrapper, which means investors save money on any additional brokerage fees.
The lang cat's Mark Polson told Telegraph Money although investors should not have to pay more than 0.5%, including brokerage fees, for a UK tracker fund, the reduction in cost was still a "great move".
In comparison, the cheapest UK tracker fund on the market, the iShares UK Equity Index fund, has a management fee of just 0.06%.
A key reason for the change of pricing is considered to be the fact that the management of Virgin Money's funds is being taken over by Aberdeen Asset Management, which has entered into a joint venture with Virgin Money's new owner, CYBG.
Polson told Telegraph Money: "Aberdeen Standard has a reputation to maintain and the potential for running what is a very simple product at a full 1% probably sits uncomfortably with that business."
Virgin Money has also made the same reduction on its annual charges for the Bond and Gilt fund.
A spokesperson at Virgin Money said: "The changes are reflected on our website and we will be proactively communicating to customers during February and March."
The move now leaves the Halifax UK FTSE All Share Index Tracker as one of the last remaining UK tracker funds charging a 1% fee.
European Fund and Asset Management Association
Will join IA sectors Q1 2020
Inflows of $99.1bn in Q1
Reportedly cutting fee to 0.6%
Range launched in March 2017