4 min read 1 Sep 21
Investing in M&G funds
As a Direct customer there are several ways for you to buy (invest in) M&G OEIC (Open-Ended Investment Companies) funds. Figuring out which way works for you may involve giving consideration to:
Broadly, there are three options available for Direct customers looking to invest in M&G retail funds:
You need to be comfortable managing your own investments online to benefit from:
Charges – You’ll only pay an ongoing charge plus a share of portfolio transaction costs (the costs incurred when funds buy and sell investments). Check out the table below for information on how our charges vary between the options selected.
Funds – You are only able to access funds from M&G Investments.
Taking the example of a typical investor choosing to invest £10,000, the total costs incurred are detailed below:
Option 1 | Option 2 | Option 3 | ||||
Charges as at August 2021 | Asset Class | As a myM&G customer, you invest in the R share class |
You pay 0.15% less than: |
Buying through the traditional M&G offline service - A share class |
But 0.25% more than: |
Buying through a 3rd party platform - I share class |
M&G Recovery Fund | Equity | 0.93% | 1.08% | 0.68% | ||
M&G Corporate Bond Fund | Bond | 0.64% | 0.79% | 0.39% | ||
M&G Episode Income Fund | Multi Asset | 0.90% | 1.05% | 0.65% |
As a myM&G customer, you’ll invest in the Recovery Fund R share class and incur an ongoing charge of £93, which is 0.15% cheaper than the traditional offline M&G investor service (A share class). This is because myM&G is primarily an online service, allowing us to pass on cost savings. The R share class is 0.25% more expensive than that received via a 3rd party platform (I share class), but please note that investing via a 3rd party platform will incur a platform fee on top of the figures quoted & that combined fee could be more than both the A or R share class price but it could also be lower than A or R share class price. It likely goes without saying that it’s really important to think about what matters most to you, what service options best suit you and that the overall fee you are paying is competitive.
You need to be comfortable managing your investments yourself, but you can choose to do this over the phone or by post. With this option you can also view your investments online via the read-only My Account service:
Charges – You’ll only pay an ongoing charge plus a share of portfolio transaction costs (the costs incurred when funds buy and sell investments). Check out the table below for information on how the charges vary between the Option selected.
Funds – You are only able to access funds from M&G Investments.
*Please note that it is not possible to transact online using this option.
Taking the example of a typical investor choosing to invest £10,000, the total costs incurred are detailed below:
Option 1 | Option 2 | Option 3 | ||||
Charges as at August 2021 | Asset class | As an M&G customer, you invest in the A share class |
You pay 0.15% more than: |
Buying through the low cost online myM&G service - R share class |
And 0.40% more than: |
Buying through a 3rd party platform - I share class |
M&G Recovery Fund | Equity | 1.08% | 0.93% | 0.68% | ||
M&G Corporate Bond Fund | Bond | 0.79% | 0.64% | 0.39% | ||
M&G Episode Income Fund | Multi Asset | 1.05% | 0.90% | 0.65% |
As an M&G customer, you’ll invest in the Recovery Fund A share class and incur an ongoing charge of £108, which is 0.15% more expensive than the low cost online myM&G investor service (R share class). The A share class is 0.40% more expensive than that received via a 3rd party platform, (I share class), but please note that investing via a 3rd party platform will incur a platform fee on top of the figures quoted & that combined fee could be higher than both the A or R share class price but it could also be lower than A or R share class price. It likely goes without saying that it’s really important to think about what matters most to you, what service options best suit you and that the overall fee you are paying is competitive.
You need to be comfortable managing your own investments. Each platform will have their own service proposition (online, telephone, paper, or sometimes a combination of options is available).
Charges* – You’ll pay an ongoing charge plus a share of portfolio transaction costs (the costs incurred when funds buy and sell investments) and you’ll also pay a ‘platform fee’ on top. These vary with each 3rd party platform provider, sometimes these are fixed monetary amounts, sometimes they are percentage based and other times there’s more than one additional charge depending on what you would like to do. Check out the table below for information on how the charges vary between the Option selected.
Funds – Depending on the platform selected, you can normally access investment funds from a wide range of fund management companies.
Taking the example of a typical investor choosing to invest £10,000, the total costs incurred are detailed below:
*Source: www.which.co.uk as at September 2021.
Option 1 | Option 2 | Option 3 | ||||
Charges as at August 2021 | Asset class | Investing via a 3rd party platform, you invest in the I share class |
You pay 0.25% less than: |
Buying through the low cost online myM&G service - R share class |
And 0.40% less than: |
Buying through the traditional M&G offline service - A share class |
M&G Recovery Fund | Equity | 0.68% | 0.93% | 1.08% | ||
M&G Corporate Bond Fund | Bond | 0.39% | 0.64% | 0.79% | ||
M&G Episode Income Fund | Multi Asset | 0.65% | 0.90% | 1.05% |
As 3rd party platform customer, you’ll invest in the Recovery Fund I share class and incur an ongoing charge of £68, which is 0.25% cheaper than the low cost online myM&G investor service (R share class). The I share class is 0.40% cheaper than the traditional offline M&G service, but please note that investing via a 3rd party platform (I share class), but please note that investing via a 3rd party platform will incur a platform fee on top of the figures quoted & that combined fee could be more than both the A or R share class price but it could also be lower than A or R share class price. It likely goes without saying that it’s really important to think about what matters most to you, what service options best suit you and that the overall fee you are paying is competitive.
2021 Value Assessment
The M&G Securities Limited (MGSL) Board in their 2021 Value Assessment looked at the additional services & fees charged for those services provided to both customers invested in the A share class and the R share class, and were satisfied that the value being offered for the additional fees over and above the ‘clean’ I share class (accessible via 3rd party platforms charging their own servicing fees on top, which don’t form part of the Value Assessment undertaken by MGSL Board).
Once you have weighed up the options, all which may have advantages and disadvantages based on your personal circumstances, you can invest your money, and manage your investments in a way that works for you.
There’s a lot to consider, and if you’re unsure about what option is right for you, you should speak to a Financial Adviser who will be able to help you decide on the right option for your circumstances. Get financial advice.
The views expressed here should not be taken as a recommendation, advice or forecast.
The value and income from any fund's assets will go down as well as up. This will cause the value of your investment to fall as well as rise. There is no guarantee that any fund will achieve its objective and you may get back less than you originally invested.