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). Please see below for an explanation of both costs.
There are no extra charges or hidden costs, for example there are no entry or exit charges on your investment.
At M&G we continuously aim to improve the services and products we offer customers.
As part of our ongoing commitment of continuing to deliver value to our customers, we are pleased to announce that we have reduced our annual charge on a wide range of funds effective 15 February 2021. This reduction in our charges is part of our commitment to provide value for money to you.
Click on the link below to find the new charges for our funds. Please note this will only work on your pc or laptop – unfortunately it is not compatible on mobile or tablet.
You may notice that the reduction in charge isn’t the same across all our funds. That’s because the initial results of our pricing review weren’t the same for every fund. Our analysis identified that the reduction for some funds should be higher, and some funds were already offering better value for money than others, so didn’t need any or the same level of reduction.
We haven’t just looked at charges. In order to offer better value to our customers, we’re undertaking a full review – looking at our charges, our performance, our service and our product range, to ensure we are offering you value for money.
Our first annual assessment of the value provided to investors in each of M&G’s UK-based funds was published in July 2020. It was designed to help you to see whether M&G’s charges are justified in the context of the overall service we deliver. You can find a link to our Annual Value Assessment report on the Annual Value Assessment page.
We will 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.
The ongoing charge consists of an annual charge and extraordinary expenses.
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.
We also 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. View our charges.
The ongoing charges figure is calculated in line with regulatory rules and guidance that apply to all funds that produce a Key Investor Information Document (KIID). This document is intended to help investors understand the impact of charges on their investment each year and to compare the level of those charges with the level of charges in other funds.
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 portfolio 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 - In addition to direct portfolio costs, there are indirect transaction costs 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 are different from direct costs since there is 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
For more information on the charges applicable to each fund, please refer to the relevant KIID. You can also refer to the Costs and charges illustration which contains information on the costs applicable to your chosen share classes.
The Investment Association (IA) has produced an independent guide to costs and charges, which you can view on their website. Please note this will open in a new window.