M&G Investments is preparing to transfer £34.2 billion of non-sterling share classes from Britain to Luxembourg.
The money held in the non-sterling share classes of 21 of its UK-domiciled Oeic funds will be transferred to the equivalent Sicav funds in the firm's Luxembourg range.
The switch is subject to Financial Conduct Authority and fund shareholder approval.
Holders of euro, Swiss franc, US dollar and Singapore dollar share classes will have their assets transferred to Sicav funds.
The Sicav funds will be newly created to accommodate the assets and the same fund managers will the new funds as their Oeic counterparts and follow the same investment strategies.
|FUNDS IMPACTED. Source: M&G Investments, as of 30 April 2018|
|Non-sterling share classes transferring from these UK-domiciled OEICs:||… To these Luxembourg-domiciled SICAVs||AUM|
|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|
|Total AUM in non-sterling share classes transferring to M&G’s Luxembourg range||£34.2 billion|
‘Our priority is to minimise disruption for our investors by providing as much certainty as we can,’ said Anne Richards (pictured), chief executive of M&G.
‘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.’
This latest move represents a continuation of what the firm did in June last year when it moved £6 billion of funds from UK as a Brexit risk hedge.
M&G is not alone in acting on its worries over the UK's exit from the European Union. Earlier this month Columbia Threadneedle Investments stated plans to move as much as €7 billion (£6.12 billion) managed for EU clients out of its UK Oiec range to its Luxembourg Sicavs.