Annual Value Assessment


 

 

M&G’s purpose is to help people manage and grow their savings and investments. Delivering value is a key aspect of this.

This annual assessment of the value provided to investors in each of M&G’s UK-based funds is designed to help you understand whether M&G’s charges are justified in the context of the overall service we deliver.

Why are M&G doing this?

Our regulator, the Financial Conduct Authority (FCA), has published new rules and guidance to improve the quality of the information available to consumers about the funds they invest in.

As part of its duty to act in the best interests of investors, the Board of M&G Securities Limited (MGSL), will be publishing an annual assessment of the value provided to our investors. It is their responsibility, as the Authorised Corporate Director of M&G Investment Funds, to think and act on your behalf.

M&G Annual Value Assessment Report

Read our latest annual assessment report.

Read our previous report:
2020 Value Assessment

We would love your feedback on the report. Let us know your thoughts.

What does this involve?

The Board of MGSL has objectively evaluated the value delivered to M&G’s investors, in the year ending 31 March 2021, according to seven criteria set out by the FCA (see below).

The Board have awarded an overall value rating to each share class of every UK-based M&G fund. Their conclusions for each share class, and according to each of the seven value criteria, are presented on a five-point scale, ranging from “outstanding” to “unsatisfactory”.

What is in the report?

The best efforts to present this analysis in a fair and useful way have been reflected in this published report.

After an introduction from the Board of MGSL, you will find a full list of the issues that we flagged in our 2020 report, and what has been done to address them. You can also read about the progress that has been made by M&G over the last year to improve the overall value delivered to investors. We then have information to help you interpret the report and each fund has its own section in the report.

You can find the fund – or funds – you are interested in by navigating directly from the Fund Ratings page by clicking on each fund name. You can then find your way back to the Fund Ratings page from anywhere in the document by clicking on the blue button on the top-right of every page.

You can read more about the methodology of the Value Assessment, as well as some of the terminology used in the report, in the Appendix at the end.

How do I check my fund and share class?

To find the name of the fund you are invested in, like the “M&G Optimal Income Fund”, and the share class you hold, for instance “Sterling Class A Shares”, you can check the following:

  • If you invest directly with M&G using our postal and phone-based service, details of your holding can be found in your April half-yearly statement (example shown below).
  • If you invest directly through our online service, myM&G, you can log in to find details of your holdings on your Valuation page.
     
  • If you invest in M&G funds through an online platform, you should be able to find details of your holdings on your online account.

What are the criteria for value? 

In line with FCA requirements, the Board of MGSL have considered each of the following criteria:

  1. Quality of services — They consider the quality of each service delivered to investors. Key services include not only those directly supporting investors, but also those vital to the good running of our funds.
  2. Investment performance — They measure investment performance against all the stated objectives of a fund, and against its comparator, to evaluate whether value has been delivered over an appropriate time period.
  3. Costs of the Authorised Fund Manager (AFM) — They assess the overall costs of the AFM, in relation to the overall charges paid by investors, for the full range of UK-based M&G funds.
  4. Economies of scale — They assess the extent to which any savings arising from the scale of a fund are reflected in value for investors.
  5. Comparable market rates — They compare the charges for each of our funds to those of competitors in the same sector, to find whether relative value is being offered to investors.
  6. Comparable M&G services — They compare the charges for each of our funds to those of similar funds and mandates managed by M&G, to find whether relative value is being offered to investors.
  7. Share classes — They analyse who invests in the share classes of each fund, and evaluate whether investors are in the most appropriate share class.
 

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