First State to transfer EU investor assets to Irish-domiciled fund range

Ridhima Sharma
clock • 1 min read

First State Investments (UK) Limited intends to transfer EU investor assets to its Irish-domiciled fund range.

Under First State’s proposal, Euro class shares of 18 funds within its UK-domiciled OEIC range are to be exchanged for equivalent Euro class shares in Ucits-compliant funds run by the same portfolio management teams within its Irish-domiciled fund range. The exchange of shares will allow First State’s European investors continued access to its current range of investment strategies.

Chris Turpin, managing director, EMEA at First State said: “Our proposals are intended to protect the interests of all investors, and in particular to ensure that our EU-based clients can continue to invest in our strategies irrespective of the outcome of the Brexit negotiations. First State has operated Dublin-based pooled funds for almost 20 years and we have an established presence in Ireland.”

Investors in the First State UK OEIC range will receive the detail of the plans in October this year. Following this, formal notification of the exchange of fund share classes will then be sent to investors in November, subject to Financial Conduct Authority (FCA) approval. If the proposals are approved by shareholders, the planned transfer of assets would take place during Q1 of 2019.

As part of its wider Brexit preparations, First State is also seeking the necessary approvals to set up management company operations in Dublin in 2019 to ensure it is well placed to service and grow its client base across the EU member states, regardless of the Brexit outcome.