Intermediaries are to receive 0.25% less trail commission on 13 M&G funds sold through Cofunds, as the group moves from X to A share classes on the platform.
The group currently sells many of its funds using the X share class, which does not feature an initial charge and carries an annual management fee of 1.25%. The X share class pays trail commission of 0.5% and has a decreasing exit penalty. In comparison, the A share class features a 5% initial charge, has no exit penalties, and carries a lower annual management charge of 1% and a lower trail commission of 0.25%.
The range of 13 funds that must make the change include the M&G Strategic Corporate Bond fund run by Richard Woolnough, the M&G Capital fund headed by Mike Felton and the M&G Global Basics fund, managed by Graham French.
The impact will only be felt on direct purchases via Cofunds and will not affect the trail commissions paid if the funds are purchased via an Isa wrapper. The change will not affect commission levels paid if the funds are purchased via rival FundsNetwork. The majority of M&G funds sold through FundsNetwork are currently X shares and M&G has no plans to change this.
Our weekly heads-up for advisers
More than £167,000 raised
Beware ‘temporary’ vulnerability
Partner Insight: A renewed focus on 'knowledge-intensive' companies should help investors realise that these entrepreneurial companies are found in sectors other than biotech or technology.
Celtic WM and Active Wealth