Our charges vary between the funds that you can invest in, and then by the class of share you might hold. The more you invest in a fund, the lower your charges will be as a percentage of your investment.
For each fund, you will pay an ongoing charge plus a share of portfolio transaction costs.
Ongoing charges include payments made to M&G – for investment management and administration – and to providers of services independent of M&G.
Portfolio transaction costs
The transaction costs are the costs incurred when buying or selling underlying Investments. These are composed 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.
To protect investors, portfolio transaction costs incurred as a result of investors buying and selling shares in the fund are recovered from those investors
through an adjustment to the price they pay or receive. Total portfolio transaction costs can appear as negative if the amount recovered through the adjustments is more than the costs paid by the fund.
Entry and Exit charges
There are no entry or exit charges on Sterling share classes in any M&G funds.
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.
In "Our funds" page, under the tab called 'Fund Charges' you will be able to view the charges for each of M&G’s funds.