M&G is proposing to transfer four UK-domiciled funds to equivalent Sicavs on its Luxembourg platform in a “prudent” move amid uncertainties around the Brexit negotiations.
The £275bn fund group, which has already outlined plans to launch Sicav funds in Luxembourg, will move £6bn in assets to the continent by November of 2017.
Subject to shareholder approval, which is due in early November, non-UK domiciled customers will be able to invest in the four funds without fearing the asset manger might lose its passporting rights as the UK’s negotiation with Europe continue to unfold.
The Luxembourg regulator, The Commission de Surveillance du Secteur Financier, and the FCA have already approved the plans.
The affected funds, which are exclusively distributed outside the UK, are:
· M&G Dynamic Allocation fund
· M&G Income Allocation fund
· M&G Prudent Allocation fund (To be renamed as M&G (Lux) Conservative Allocation fund)
· M&G European Inflation Linked Corporate Bond fund
The four Sicav funds will continue to follow the same strategies as their UK-domiciled versions and the managers will remain the same.
M&G chief executive Anne Richards says: “With little clarity yet on the outcome of the negotiations between the UK and the rest of the European Union on its future trading relationship, we believe it is prudent to take action now to protect the interests of our international customers.
“The proposals to transfer the assets of these four funds have a primary aim – to minimise disruption for our investors. Approval of the transfer will ensure they retain access to the same strategies and the same fund managers.”