Skip to content

Fund charges

Get a simple, straightforward view of what
your investments will cost – with no hidden extras

For more information on the financial terms used in this page, please consult the glossary.

Contents

What you'll pay

Before you make any investment it’s important to know how much you will be charged. Our charges apply to all our fund types (sustainability, multi-asset, bonds and equities), and may change in the future.

For each fund, you'll 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 and extraordinary expenses, and is paid to M&G to operate the fund for one year. The ongoing charges figure is calculated in line with regulatory rules and guidance.

If you're 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 portfolio 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 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 bonds, 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.

There are no extra charges or hidden costs, for example there are no entry or exit charges on your investment.

How do you want to invest in our funds?

There are several ways for you to buy (invest in) M&G OEIC (Open-Ended Investment Company) funds. M&G OEIC funds can be bought through a tax-efficient ISA (Individual Savings Account) wrapper or directly via an unwrapped product, such as an OEIC fund or in a Savings Account.

Figuring out which way works for you may involve considering:

  • How you want to manage your investments both now and in the near future – do you prefer dealing with someone over the phone, do you like to receive written correspondence, or do you prefer to self-serve online and receive digital correspondence?
  • Whether you only pay for the service you're using and want, and can you access the same fund cheaper with a supporting service that works for you?
  • If you want to invest only in M&G funds or if you need access to other fund providers.
  • Your initial investment amount.

Broadly, there are three main ways you can invest in M&G retail funds, each offering different levels of service and corresponding charges:

You need to be comfortable managing your investments yourself, but you can choose to do this mainly over the phone or by post, as well as some online capabilities via our My Account service:

  • Investment instructions taken during working hours. Please note that it is not currently possible to top up your investment online using this option.
  • Register for our My Account service for 24/7 access to your investment valuation and full transaction history, switch funds or products, sell your investments, and change your personal details. 
  • Documentation from us, including all acknowledgements, statements and more, sent by post.
  • New investments from £500 and regular contributions from £10.
  • No extra costs to top up, switch or sell your investments at any time.
  • Telephone, post or email facilities to speak with our Customer Relations team. With My Account you can also contact us via online chat and secure message.
  • The choice to receive our monthly e-newsletters covering a wide range of investment topics, new M&G funds, educational articles and service information to support you on your investment journey. You can unsubscribe at any time.
  • Charges – You’ll only pay an ongoing charge plus a share of portfolio transaction costs (the costs incurred when funds buy and sell investments).
  • Funds – You're only able to access funds from M&G Investments.

 

MyM&G is our fully online service and is an easy way for you to invest directly in M&G OEIC funds, and manage your investments online any time, day or night:

  • 24/7 online access to your personalised investment dashboard.
  • Top up, switch or sell your investments at any time at no extra cost.
  • Go paperless – we’ll send you all your documents online.
  • Start a new investment or set up monthly contributions with just £1. 
  • Contact us via instant chat or secure message. 
  • The choice to receive our monthly e-newsletters covering a wide range of investment topics, new funds, educational articles and service information to support you on your investment journey. You can unsubscribe at any time.
  • Charges – You’ll only pay an ongoing charge plus a share of portfolio transaction costs (the costs incurred when funds buy and sell investments). There are no service fees and no entry or exit charges.
  • Funds – You're only able to access funds from M&G Investments.

With this option, 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 most likely pay an ongoing charge plus a share of portfolio transaction costs (the costs incurred when funds buy and sell investments) and you may also pay a ‘platform fee’ on top. These vary with each third-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.                     

Funds – Depending on the platform selected, you can normally access investment funds from a wide range of fund management companies.

Once you've 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. 

Our charges calculator

We believe it's important that you understand our charges when you invest with us.


This tool can help you see the amount of charges, in pounds and pence, you might expect to pay on the different funds in our range. Please note that this tool is for guidance only and charges are subject to change.
 

Calculate now

View our Table of ongoing charges

For more information on the charges applicable to each fund, please refer to the relevant Key Investor Information Document (KIID). You can also refer to the Costs and charges illustration which contains information on the costs applicable to your chosen share classes. Both of these documents are available on each fund page within the Fund Centre. 

To find out more about costs and charges, take a look at the Investment Association's (IA) independent guide.

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.

Value you can trust

We work hard to ensure our charges are fair, transparent and offer the best value to you.

We apply discounts to the Annual Charges on our larger funds based in the UK, to share cost savings that occur from economies of scale with our customers. Therefore, the larger the fund is – in other words, the more money invested in it – the lower the relative proportion of fixed costs of administering and managing it.

Fund Net Asset Value-Discount range Annual charge discount
£0-1bn Nil
£1-2bn 0.02%
£2-3bn 0.04%
£3-4bn 0.06%
£4-5bn 0.08%
£5-6bn 0.10%
More than £6bn 0.12%

For every £1 billion of a fund’s net asset value, a discount of 0.02% will be applied to that fund’s Annual Charge (up to a maximum of 0.12%). We'll assess the size of your fund, and therefore whether it qualifies for any discount, on at least a quarterly basis. 

Here is an example to illustrate how it works. If the Annual Charge on a fund is 1.20% before any discount and it has £1.8 billion in assets at the end of the first quarter of the year, a discount of 0.02% will apply and the net Annual Charge will reduce to 1.18% going forward, applicable as soon as practicable after the start of the second quarter.

If the fund’s assets swell to £2.1 billion at the end of the second quarter, the discount would rise to 0.04%. If the fund then shrinks back to £1.8 billion by the end of the third quarter, the discount would revert to 0.02%. This example is illustrated below. 

However, discounts will not be removed if a fund’s assets fall just below a given threshold. Instead, there will be a buffer of £100 million (£0.1 billion). So, if using our example above, the fund’s assets shrank from £2.1 billion to £1.95 billion by the end of the third quarter, it would fall within this buffer and the discount would remain unchanged at 0.04%, rather than revert to 0.02%. In the case of the largest funds, where the relevant threshold is £5 billion or £6 billion, this buffer will be £200 million (£0.2 billion). To be clear, there is no corresponding buffer when a fund’s assets rise above a given threshold that triggers a discount (or further discount) on the Annual Charge. Please note this is an example and not a recommendation.

Our Annual Value Assessment

A review of our charges, performance, service and products.

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

We'll continue to keep you up to date on further improvements we make for our investors as a result of the findings from our Annual Value Assessment. 

Find out more

How our charges work

We believe it's important that you understand our charges when you invest with us.

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 don't need to be paid separately.

A personalised investment update and statement will be mailed to you twice a year – April and October. The statement mailed in October will include a personalised statement for the review period, and a Cost and Charges Disclosure. 


You can also access online valuations on your investments anytime with our My Account service.

Your investment attracts costs and charges and to help you understand these in more detail we'll provide you with an annual breakdown in the October statement mailing. Here you'll see the costs and charges incurred within the reporting period. It's important to note that these have always been applied to your investments. The breakdown is for your information only and you'll not need to take any action.

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.

The value of investments will fluctuate, which will cause prices to fall as well as rise and you may not get back the original amount you invested. The views expressed on this page should not be taken as a recommendation, advice or forecast. We are unable to give financial advice. If you are unsure about the suitability of your investment, speak to your financial adviser. 

Contact the team

Contact us