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M&G hands Standard Life biggest fund crown with Brexit transfer

M&G's transfer of £34 billion held by overseas investors to Luxembourg will see Standard Life Investments' Gars fund overtake M&G Optimal Income as UK's biggest.

 
M&G hands Standard Life biggest fund crown with Brexit transfer
 

M&G Investments is to transfer £34 billion held in its UK-based funds by overseas investors into equivalent funds based in Luxembourg ahead of the UK's exit from the European Union.

The fund group said the non-sterling share classes of 21 of its funds would transfer to Luxembourg funds run by the same managers with the same strategies.

It said the plans 'aim to protect the interest of M&G's customers outside the UK as the country negotiates its exit from the European Union'.

'Our priority is to minimise disruption for our investors by providing as much certainty as we can,' said M&G chief executive Anne Richards.

'The proposals we have announced today aim to protect the interests of our non-UK customers by offering continued access to the current range of M&G’s investment strategies, regardless of the final outcome of the negotiations.'

The bulk of the £34 billion is accounted for by £20 billion held by non-sterling investors in the £23 billion M&G Optimal Income fund run by Richard Woolnough.

The fund is the UK's biggest, but the shrinking of the UK-based portfolio will see the £19 billion Standard Life Investments Global Absolute Return Strategies  regain the title. M&G Optimal Income overtook Gars at the end of last year.

M&G last year moved £6 billion of UK-based funds marketed to non-UK investors to Luxembourg.

Rival fund group Columbia Threadneedle last week announced it would shift €7 billion (£6.1 billion) held by non-UK investors to Luxembourg.

The funds affected are:  

UK-based funds To be transferred to: Non-sterling assets 
M&G Asian Fund  M&G (Lux) Asian Fund  £209 million 
M&G Emerging Markets Bond Fund M&G (Lux) Emerging Markets Bond Fund  £593 million 
M&G Episode Macro Fund M&G (Lux) Episode Macro Fund  £248 million 
M&G European Corporate Bond Fund  M&G (Lux) European Corporate Bond Fund  £1.4 billion 
M&G Global High Yield Bond Fund  M&G (Lux) Global High Yield Bond Fund  £55.7 million 
M&G European Strategic Value Fund  M&G (Lux) Euro Strategic Value Fund  £2.4 billion 
M&G Global Floating Rate High Yield Fund  M&G (Lux) Global Floating Rate High Yield Fund  £3.1 billion 
M&G Global Convertibles Fund  M&G (Lux) Global Convertibles Fund  £1.2 billion 
M&G Global Corporate Bond Fund  M&G (Lux) Global Corporate Bond Fund  £12 million  
M&G Global Dividend Fund M&G (Lux) Global Dividend Fund  £2.5 billion  
M&G Global Emerging Markets Fund  M&G (Lux) Global Emerging Markets Fund  £909 million 
M&G Global Macro Bond Fund M&G (Lux) Global Macro Bond Fund  £694 million 
M&G Global Select Fund  M&G (Lux) Global Select Fund  £97 million 
M&G Japan Fund  M&G (Lux) Japan Fund  £147 million 
M&G Japan Smaller Companies Fund  M&G (Lux) Japan Smaller Companies Fund  £150 million 
M&G North American Dividend Fund  M&G (Lux) North American Dividend Fund  £144 million 
M&G North American Value Fund  M&G (Lux) North American Value Fund  £279 million 
M&G Optimal Income Fund  M&G (Lux) Optimal Income Fund  £19.9 billion 
M&G Pan European Dividend Fund  M&G (Lux) Pan European Dividend Fund  £95 million 
M&G Pan European Select Fund M&G (Lux) Pan European Select Fund  £47 million 
M&G Short Dated Corporate Bond Fund  M&G (Lux) Short Dated Corporate Bond Fund  £97 million 

Source: M&G 

The plans are subject to Financial Conduct Authority and investor approval. Luxembourg regulator the Commission de Surveillance du Sectuer Financier has been informed.

3 comments so far. Why not have your say?

nigel morris

May 17, 2018 at 10:23

Very patrotic I don't think-wouldn't invest with them.

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eyeboy

May 17, 2018 at 11:14

I don't think it's got anything to do with patriotism (or lack of) - they're only moving money held by overseas investors. It's a practical measure based on the uncertainty regarding Brexit. Shifting investments held by overseas investors to Luxembourg means that they know the rules to play by, rather than what the rules may become after Brexit.

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cutlass

May 22, 2018 at 10:40

I agree that this has nothing to do with patriotism. It was an entirely predicable result of the Brexit vote. Indeed those who voted for Brexit were voting for exactly these sort of movements of money to occur, whether they realized it or not.

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