Our charges vary between the funds that you can invest in, and then by the class of share they might hold.
For each fund, you will pay an ongoing charge (which consists of an Annual Charge and extraordinary expenses) plus a share of portfolio transaction costs (the costs incurred when funds buy and sell investments).
The ongoing charge consists of an Annual Charge, extraordinary expenses and underlying charges for closed-ended funds, such as Investment Trusts and Real Estate Investment Trusts. The ongoing charge is mostly, if not exclusively, the Annual Charge paid to M&G to cover all aspects of operating the fund for one year. The ongoing charges figure is calculated in line with regulatory rules and guidance.
If you are invested in the M&G Property Portfolio, the Annual Charge will only contain costs of running the fund. Expenses related to managing the properties within the fund will be disclosed separately. This does not change the overall amount you pay to invest in the fund, but it will help you to compare costs more easily with other property funds.
The transaction costs are the costs incurred when buying or selling underlying Investments. These are made up of direct transaction costs and indirect transaction costs:
Direct transaction costs - Costs incurred when the fund buys and sells investments and includes commission paid to brokers and taxes. These transactions are the result of active investment decisions made by the fund manager for the benefit of all investors
Indirect transaction costs - these indirect transaction costs are caused by the fact many investments have a bid-offer spread which is the difference between the buying and selling prices of investments and their actual value (known as the mid-price). These costs have no specific cash payment (unlike direct transaction costs) but do have an impact on the performance of the fund. Some types of investments, such as fixed income securities, have no direct transaction costs and only the indirect transaction cost is incurred. For the M&G Property Portfolio, please note that there is no market bid-offer spread on property assets.
We believe it is important that you understand our charges when you invest with us. The M&G Fund Charges Calculator can be used to help you see the charges, in pounds and pence, you might expect to pay on the different funds in our range. Please note that this tool should only be used as guidance and charges are subject to change.
The amount you pay, in pounds and pence, relates to the value of your investment and so will depend on fund performance. Charges are calculated annually and taken daily.
Charges are automatically taken from your investment and do not need to be paid separately.
A personalised investment update and statement will be mailed to you twice a year – April and October. The statement booklets include a personalised statement for the review period, and a Cost and Charges Disclosure. You can find more information here on our half-yearly statement mailing.
You can register for My Account and access online valuations on your M&G investments anytime.
Your Investment attracts Costs and Charges and to help you understand these in more detail we will provide you with an annual breakdown each October within your half-yearly statement. Here you will see the Costs and Charges incurred within the reporting period. It is important to note that these have always been applied to your investments. The breakdown is for your information only and you will not need to take any action.
A Costs & charges Illustration can be found by visiting our fund centre, selecting the fund and viewing the documents section.
The total charges deducted for each fund will impact your investment return throughout the course of the year. Whilst performance can’t be guaranteed, the breakdown will show you the effect charges have when comparing the return before and after fees.
View the latest M&G fund prices, performance and commentary in our Fund Centre.