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Investors get charging deal as M&G switches funds to Oeics

M&G is to convert its unit trust range to Oeics in a move which will make

its entire fund range available on a dual charging basis.

The conversion, which is set for completion on Nov-ember 1, will offer

investors the choice of two different share classes on each of M&G&#39s

open-ended funds.

For investors who do not want to pay an initial charge, which varies

depending on the fund, the annual management fee will typically rise to 1.5

per cent from 1 per cent.

However, IFAs will still be paid front-end commission on no-load funds,

typically at 3 per cent.

M&G is also set to introduce free switching on all its funds, axing its

current 2.5 per cent charge for all transfers within the M&G fund range.

As with all Oeics, M&G&#39s funds will all be single priced, eliminating the

bid-offer spread, which the company says is confusing for investors.

The company will write to unitholders on September 25 to seek their

app-roval for the changes.

Managing director (UK retail) Phil Wagstaff says: “We wanted to bring nil

initial charge funds across our entire range. In 1994, M&G pioneered no

initial charge funds.

“Although the majority of people want nil initial charge funds, most IFAs

wanted the choice. We now offer both.”


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Level-headed WPA

Western Provident Association has des-igned self-pay protect, a healthcarecash plan that helps with the cost of hospital treatment for short-termillness or injury. The plan is concerned only with inpatient or day-case private hospitaltreatment and follow-up outpatient treatment for 90 days after the patienthas left hospital. It has three levels of cover and a 90-day deferredperiod. […]

KMC offers new loan range

Sub-prime lender Kensington Mortgage Company is offering a raft ofnon-conforming fixed and discount rate loans for borrowers with minorcredit difficulties. The lender, which floated on the London Stock Exchange last November, hasset up seven loans which it believes will attract a more diverse range ofborrowers. Available for purchase or remortgage, the loans are fixed until […]

Your client&#39s future is in the balance

Over the last few weeks, I have been looking at certain aspects of pensiondrawdown which might have escaped the attention of retirement incomeadvisers. Among the issues I have examined, improvements in life expectancy and therisk of interest rate reductions should both be acknowledged as adverselyaffecting any decision in favour of drawdown. Against this, last week […]

InFocus - thumbnail

In Focus — February 2015

Jelf Employee Benefits looks at the issue of paying anaesthetist fees when the patient had no chance to discuss or agree to them prior to care; and provides recommendations for avoiding this scenario.


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