M&G to launch new D2C online service offering lower fund charges

Will stop charging investors for external research at start of 2017

M&G Investments will offer lower fund charges to direct customers who sign up for its new online service set to launch later this summer, while the group will also stop charging all investors for external research from 1 January 2017.

All current and future customers invested directly in M&G ISAs and funds will be eligible for the new service, being built by wrap platform specialist FNZ, which will provide a more modern way to manage their investments. Any direct investor with a combined total of £5,000 invested in funds with M&G will also qualify for lower online fund charges. M&G has approximately 190,000 direct investors, of whom around three quarters have portfolios of this amount or higher. The deal means the ongoing charge figure (OCF) for those who choose the online service and have £5,000 in their portfolio...