M&G will pay an extra 1% initial commission on top of its standard 3% offer on Pep transfers into th...
M&G will pay an extra 1% initial commission on top of its standard 3% offer on Pep transfers into three of its funds until the end of the tax year, writes Jane Wallace.
The offer lasts from this week until 5 April and applies to Managed Income, Managed Growth and Corporate Bond. Trail commission of 0.5% is also available on the managed funds but not on the bond fund.
The two funds are both in-house funds of funds. Managed Income is managed by Richard Plackett and Managed Growth by Graham French.
M&G has also launched a European tracker fund, which does not pay commission to IFAs. M&G European Index Tracker Fund will track the FTSE Europe ex UK index which comprises some 500 stocks from 15 countries, such as Nokia, L'Oreal, Philips and Volkswagen. The portfolio will be managed by Prudential.
The fund has a 50p fixed price offer until 4.30pm on 31 January. It has no initial charge, a 0.5% annual management charge and total other annual charges of 0.31%, which incorporate trustee, registrars and custodian fees. There is no withdrawal fee.
The minimum lump sum investment is £500 and £10 per month regular savings. The Isa version of the fund meets the Cat standard. M&G said it is expecting several key factors to drive the European market forward in 2000.
The first is the recovery of the euro and stronger economic growth, combined with inflation remaining low.
Second, it said the effects of corporate restructuring will begin to be felt in the stock market, as well as additional takeover and new issue activity. It has argued this will not lead to oversupply, as investor demand for equities will increase.
For more information contact the IFA Linkline on 0800 328 3191 or visit the website at www.mgisa.co.uk/eurotracker.
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