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