M&G simplifies fund charges

1 August 2019 – M&G has simplified the way it charges for its funds. Effective today – and with the exception of its property funds – the company is combining all fund charges into a single annual charge. Only exceptional items such as unforeseen legal and tax expense, will not be included. 

If you are invested in the M&G Property Portfolio or M&G Feeder of Property Portfolio, the annual charge will only contain the costs of running the fund. Expenses related to managing the properties within the fund will be disclosed separately. This will not change the overall amount you pay to invest in these funds, but it will help you compare costs more easily with other property funds.

What do the changes mean in practice? 

• The annual charge will be simpler to understand and easier to compare with other fund charges

• The annual charge should be more predictable, as some costs which varies from year to year under the old structure will effectively be capped under the new annual charge

• Investors may pay slightly less to invest with M&G, depending on the individual fund

• No investor will pay more

M&G Global Dividend, which is on the Chelsea Core Selection, will benefit from a small fee reduction of 0.05%.

M&G Emerging Markets Bond, which is on the Chelsea Selection, will also benefit from a small fee reduction of 0.04%.

M&G has produced a guide detailing the changes.