19 January 2021 - M&G has announced it will be cutting the management fee across its range of funds.
As part of an on-going review of charges, performance, service and product range, the annual management fees will be reduced on 15th February 2021. A full list of the changes can be viewed on this interactive pdf.
Commenting on the cuts, Darius McDermott, managing director of Chelsea Financial Services, said:
“The reduction in the annual management charges on the range of M&G funds is great news for investors – especially as M&G’s ongoing charges fees (OCF) are the same as their annual management charges (AMC) – no other charges are added.
“M&G’s largest and most popular offerings will all benefit from a reduction in charges. Some, like M&G Optimal Income, will see fees cut by up to 0.25%.
“When you think that M&G’s 10 biggest funds have more than £20 billion of assets between them, this will make a material difference to a lot of investors and make the funds much better value for money.
“M&G is the first big fund management company to make such substantial cuts and I’d hope this prompts others to do the same.”