M&G to transfer £34bn of non-sterling customer assets to Luxembourg ahead of Brexit

M&G Investments, the asset management business of M&G Prudential, is planning to transfer £34.2bn worth of non-sterling assets from UK-domiciled funds ahead of the country’s withdrawal from the EU.

M&G Investments is preparing to transfer billions of pounds worth of customers’ money from UK-domiciled funds to Luxembourg in a preemptive move ahead of Brexit. The company is proposing to transfer the non-sterling share classes of 21 of its UK-domiciled OEIC funds to equivalent SICAV funds in its Luxembourg range.

M&G said its proposals aim to protect the interests of M&G’s customers outside the UK as the country negotiates its unpredictable exit from the European Union.

Subject to FCA and fund shareholder approval, holders of euro, Swiss franc, US dollar and Singapore dollar share classes will have their assets transferred to SICAV funds which follow the same investment strategies and which are run by the same fund managers as their OEIC equivalents.

Formal notification of the proposals, including details on timings, will be sent to shareholders from September this year.

Anne Richards, chief executive of M&G, explained: “Our priority is to minimise disruption for our investors by providing as much certainty as we can. 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 Commission de Surveillance du Secteur Financier and the Financial Conduct Authority (FCA) have, according to M&G, been informed of the proposals.

Christopher Copper-Ind
Christopher Copper-Ind is Publisher and Editor of International Investment. His previous publishing experience focused largely on the Middle East and emerging markets, and he was Editorial Director of The Business Year, based in Istanbul, for three years before moving back to London in 2017. He is the author of How to Negotiate, to be published by Macmillan in 2019.

Read more from Christopher Copper-Ind

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