Share classes

What is a Share Class?

A share class is a type of fund shares held by investors in a fund. Share classes differ by levels of charge and/or by other features, for example hedging against currency risk. Each M&G fund has different share classes, such as A, R and I, and each share class has a different level of charges and minimum investment.

If you are an existing customer and invest directly with M&G using our postal and phone-based service, details of your holding can be found in your 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.

For the majority of M&G funds, investors can choose between the following share classes:

  • Sterling Class A Shares
  • Sterling Class I Shares
  • Sterling Class R Shares

Each share class has been designed with different investment needs in mind.

Sterling Class A Shares

Available to invest in The M&G ISA, The M&G Junior ISA, M&G OEIC and The M&G Savings Plan.

  • Minimum investment level (lump sum): £500

Sterling Class I Shares

Available to invest in The M&G ISA, M&G OEIC and The M&G Savings Plan.

  • Minimum investment level (lump sum): £500,000

Sterling Class R Shares

Available to invest in The M&G ISA, The M&G Junior ISA and M&G OEIC when you invest via a financial adviser.

  • Minimum investment level (lump sum): £500

Our Sterling Share Classes do not carry an entry charge or exit charge. However, an ongoing charge will still apply. The ongoing charge is made up of the Annual Charge which may be discounted depending on the size of the fund, and extraordinary expenses. For property funds, the ongoing charge does not take into account the property operating expenses, also known as PER. For information on all our charges, please refer to our Fund Charges page.

On our Fund availability and fund types table (in the M&G Important Information for Investors document) you will find information about the specific share classes available in your choice of fund(s).

Certain funds have other share classes available for direct investment (outside The M&G ISA, The M&G Junior ISA and The M&G Savings Plan). For more information on these, please see the relevant Prospectus.

Within each share class you are also required to choose between:

  • Taking a regular income from your investments by choosing Income shares
  • Reinvesting the income they generate through choosing Accumulation shares

Income shares entitle the holder to be paid the income attributed to those shares on the payment date. This is usually paid twice a year but can be paid annually, quarterly or monthly depending on the fund.

Accumulation shares don’t pay income. Instead, they automatically reinvest any income accruing to the fund and this is reflected in the share price. If a fund only offers Income shares, any net income can be reinvested to buy more shares. However please note that where income from underlying investments is saved up within the fund throughout the accounting period and reinvested to buy more shares on the reinvestment date, the income is not exposed to any market movements (up or down), unlike accumulation shares which reinvest income automatically once received.

This means you can choose the best investment options for your individual requirements.

Please read the Important Information for Investors document for further information on share classes and fund choices or call our Customer Relations team on 0800 390 390.

However, please remember that the value of your investment can go down as well as up so you might not get back the amount you put in.

To summarise, when making your investment with M&G, please be sure to indicate:

  1. The M&G fund(s) you wish to invest in
  2. Your preferred share class(es)
  3. Whether you would like to invest in Income or Accumulation shares

Remember, your application may be rejected if it is only partially completed.

We are unable to give financial advice. For impartial guidance about investing with M&G we recommend you speak to a financial adviser.

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