Annual Value Assessment

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 2022, 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 are the criteria for value? 

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

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.

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 2021 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 labelled 'Go to fund ratings'.

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 of the report.

How do I check which fund and share class I invest in?

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.

• 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.