M&G slashes fees across fund range in 'simplification' shake-up

Discount mechanism applied to larger funds

clock • 3 min read

M&G Investments has reduced charges on 90% of its funds' share classes and moved to a single-fee model in a bid to simplify its client charges.

From 1 August, UK OEIC investors will be charged an ongoing charge figure (OCF) that includes a single annual charge and "extraordinary expenses". Transaction costs will be charged on top. M&G is also introducing a discount to funds with over £1bn in assets under management (AUM). Under the new charging system, a 2 basis points (bps) discount will be applied to funds with over £1bn in AUM, which increases by 2bps for every £1bn in the fund up to those with £6bn in AUM, at which point the cut is capped at 12bps. Gill Hutchison: When does OCF = VFM? Of M&G's current product range,...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Companies

Söderberg & Partners takes stakes in four more advice firms

Söderberg & Partners takes stakes in four more advice firms

‘We are not a consolidator, our goal is to support passionate entrepreneurs’

Isabel Baxter
clock 16 April 2024 • 2 min read
Single-adviser firm sells to local IFA as he 'shuns consolidators'

Single-adviser firm sells to local IFA as he 'shuns consolidators'

Simon Aucott sells his firm to Staffordshire-based IFA Bank House

Isabel Baxter
clock 27 February 2024 • 2 min read
MKC Wealth acquires female-focused financial planning firm

MKC Wealth acquires female-focused financial planning firm

The firm will operate under the new brand MKC Wealth for Women

Isabel Baxter
clock 26 February 2024 • 2 min read