M&G Investments has begun building out an Irish fund business in preparation for the UK leaving the EU.
The fund manager has already started work on building Irish funds, to be domiciled in Dublin, amid concerns that Brexit could dent its UK funds business, the FT reports.
Prudential’s asset management arm says it does not plan to move UK operations into the EU as a result of Brexit, but may relocate some staff to Dublin to oversee the fund management business there.
Currently the majority of M&G’s funds are domiciled in the UK, with around 10 per cent of its assets coming from non-UK buyers.
Anne Richards, chief executive of M&G, says: “The referendum result doesn’t change who we are as a business, nor our commitment to our customers, wherever they are.”
The asset management industry has raised concerns about its ability to access the rest of the EU if fund passporting is not retained when the UK leaves the union.
The current passporting regime allows asset managers in member states to take funds domiciled within the EU and market them either in their own country or in other member states. The UK leaving the EU has raised questions over whether that cross-border access will cease.