Portfolio transaction costs

What are portfolio transaction costs?

Portfolio transaction costs are incurred when investments are bought or sold by a fund. They include broker execution commission and taxes. To protect existing investors, portfolio transaction costs incurred as a result of investors buying and selling shares in the fund are recovered from those investors through a ‘dilution adjustment’ to the price they pay or receive.

In addition to the direct costs described above, there are indirect portfolio transaction costs arising from the ‘dealing spread’ – the difference between the buying and selling prices of underlying investments in the portfolio; some types of investment, such as fixed interest securities, have no direct transaction costs and only the dealing spread is paid.

Portfolio transaction costs for M&G funds

The table below shows the historical direct portfolio transaction costs for each of M&G’s funds. If the fund has been launched in the past three years, the portfolio transaction costs figure will be shown as “N/A”. The figure will be shown as “0.00” if there have been no applicable charges in the past three years. The table is updated yearly in February.

The Investment Association (IA) has produced an independent guide to charges and costs, which you can view on their website. Please note this will open in a new window.

Fund Portfolio transaction costs (three-year average as a % of net asset value) Date
Asian Fund 0.04  31/08/2016
Corporate Bond Fund 0.00  30/06/2016
Dividend Fund 0.17  30/06/2016
Emerging Markets Bond Fund 0.00  30/06/2016
Episode Allocation Fund 0.00  30/04/2016
Episode Defensive Fund 0.06  31/07/2016
Episode Growth Fund 0.06  30/04/2016
Episode Income Fund 0.37  30/04/2016
Episode Macro Fund 0.11  30/06/2016
European Corporate Bond Fund 0.00  30/06/2016
European Select Fund 0.10  31/08/2016
European High Yield Bond Fund 0.00  30/06/2016
European Index Tracker Fund 0.00  31/08/2016
European Smaller Companies Fund 0.20  31/08/2016
European Strategic Value Fund 0.08  31/07/2016
Fund of Investment Trust Shares
0.01  30/06/2016
Gilt & Fixed Interest Income Fund 0.00  31/05/2016
Global Basics Fund 0.05  31/08/2016
Global Convertibles Fund 0.01  31/07/2016
Global Corporate Bond Fund  0.00   30/06/2016
Global Dividend Fund 0.06  31/03/2016
Global Emerging Markets Fund 0.08  31/07/2016
Global Floating Rate High Yield Fund 0.00  31/07/2016
Global Government Bond Fund  0.00  30/06/2016
Global High Yield Bond Fund 0.00  31/05/2016
Global Leaders Fund 0.08  31/08/2016
Global Macro Bond Fund 0.00  30/04/2016
Global Recovery Fund
 0.05  31/07/2016
Global Select Fund 0.05
Index-Linked Bond Fund 0.00  31/05/2016
Index Tracker Fund 0.01  31/05/2016
Japan Fund 0.11  31/08/2016
Japan Smaller Companies Fund 0.11  31/08/2016
Managed Growth Fund 0.00  30/04/2016
North American Dividend Fund 0.03  31/08/2016
North American Value Fund 0.01  31/08/2016
Optimal Income Fund 0.00  31/03/2016
Pan European Dividend Fund 0.14  31/07/2016
Pan European Select Fund 0.06  31/08/2016
Property Portfolio -0.01
Recovery Fund 0.03  30/06/2016
Short Dated Corporate Bond Fund 0.00  31/05/2016
Smaller Companies Fund 0.15  30/06/2016
Strategic Corporate Bond Fund 0.00  31/08/2016
UK Income Distribution Fund
UK Select Fund 0.20  31/05/2016
UK Inflation Linked Corporate Bond Fund 0.01  31/03/2016

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