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

Discount mechanism applied to larger funds

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. Is the tide finally turning for fund fees? Of M&G's current product ...