You’ll only pay an ongoing charge plus a share of portfolio transaction costs (the costs incurred when funds buy and sell investments). The ongoing charge may vary from year to year, and is mostly, if not exclusively, the Annual Charge which may be discounted depending on the size of the fund. There are no extra charges or hidden costs, which means no service fees and no entry or exit charges on your investments.
Our second annual assessment of the value provided to investors in each of M&G’s UK-based funds was published on 22 July 2021. 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.
As part of changes introduced in August 2019, making charges clearer, simpler and better, M&G 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.
To see what you might pay for the funds you are interested in, click on our charges calculator (on the right hand side).
As you can see from the examples below, we have two charging levels based on the overall value of your investment with us, which are set at £1 and £250,000.
|Overall value of investments||£1 - £249,999
(R share class)
(I share class)
|M&G Recovery Fund (Equity)||0.93%||0.68%|
|M&G Corporate Bond Fund (Bond)||0.66%||0.41%|
|M&G Episode Income Fund (Multi Asset)||0.90%||0.65%|
The funds shown are for example purposes. Other funds are available. Please note that where funds do not offer an R Share Class, the A Share Class will be available for portfolios up to £249,999. The ongoing charges for the M&G Recovery Fund and M&G Episode Income Fund are accurate as at 26 February 2021. The ongoing charge for the M&G Corporate Bond Fund is accurate as at 23 August 2021. Each fund’s annual report will include details of the exact charges made in that financial year.
You can view the ongoing charges for all our funds in the fund selector.
Our approach is based on the idea of active fund management, which means we’re constantly looking for the best opportunities for your investments.
As a result, different funds have different levels of charges because of the varying investment approaches that they follow. But we believe that our actively managed funds, with all the added benefits of our hands-on style and investment expertise, have the potential to outperform passively managed funds.
When you’re deciding how to invest, it's important to remember that the value and income from a fund’s assets will go down as well as up. This will cause the value of your investment to fall as well as rise and you may get back less than you originally invested.