Fund charges

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

Before you make any investment it’s important to know how much you will be charged. Our charges apply to all our fund types (Planet+, multi-asset, bonds, equities, property).

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). 

The ongoing charge consists of an Annual Charge, extraordinary expenses and underlying charges for closed-ended funds, such as Investment Trusts and Real Estate Investment Trusts, 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 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 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?

As a Direct customer 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 are using and want, and can you access the same fund cheaper with a supporting service that works for you?

Broadly, there are two options available for Direct customers looking to invest in M&G funds:

You need to be comfortable managing your investments yourself, but you can choose to do this over the phone or by post. With this option you can also view your investments online via the My Account service:

  • Investment instructions taken during working hours.
  • Register for our My Account service for 24/7 access to your investment valuation and full transaction history. Please note that it is not possible to transact online using this option.
  • Documents 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.
  • The choice to receive our monthly e-newsletters covering a wide range of investment topics including sustainability and impact ideas, 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 are only able to access funds from M&G Investments.

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 pay an ongoing charge plus a share of portfolio transaction costs (the costs incurred when funds buy and sell investments) and you’ll also pay a ‘platform fee’ on top. These vary with each 3rd 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. *Source: www.which.co.uk as at June 2023.                        

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

Once you have 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. The value of your investment can go down as well as up so you might not get back the amount you put in. 

Our Charges Calculator

We believe it is 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 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 in our Fund Centre

The Investment Association (IA) has produced an independent guide to costs and charges, which you can view on their website

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 will 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.

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 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. 

Find out more

How our charges work

We believe it is 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 do not need to be paid separately.

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


You can register for My Account and access online valuations on your M&G investments anytime.

Here, you can elect to receive our monthly e-newsletters covering a wide range of investment topics including sustainability and impact ideas, new M&G funds, educational articles and service information to support you on your investment journey. You can unsubscribe at any time.

Your Investment attracts costs and charges and to help you understand these in more detail we will  provide you with an annual breakdown. Here you will see the costs and charges incurred within the reporting period. It is important to note that these have always been applied to your investments. The breakdown is for your information only and you will 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.




Further information

Looking for advice

If you’re looking to invest, switch funds or transfer an investment, there’s a few reasons you might consider getting financial advice.
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Glossary

We’ve put together a list of the most common financial jargon you might hear when investing and explained it all in plain English. 
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Your questions answered

You can quickly find the answer to most investment questions by searching our range of FAQ categories below.
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