AllianceBernstein confirms Brexit plans for UK clients

AllianceBernstein has confirmed it has a plan in place to launch an Oeic range for UK clients if Brexit turns sour.

AllianceBernstein confirms Brexit plans for UK clients


Global client group managing director Jose Cosio said UK investors currently access its products through its Sicav range, but it is ready to create an Oeic range in four to six months if Brexit hinders the current arrangement.

AllianceBernstein manages approximately $5bn (£3.7bn) for UK clients, although Cosio estimates 85% of that is through segregated mandates.

“We don’t have a big mutual fund business to protect here in the UK, but we do have the opportunity cost of not raising assets,” Cosio told Portfolio Adviser.

He said: “The launch of the Oeic range could take four, five, six months. It’s a decision of business opportunity, not a decision of desperation. It’s a very different place to be from managers who have to do something tomorrow to protect what they have.”

AllianceBernstein emphasised a decision has not yet been made and would be subject to further developments in Brexit negotiations.

Columbia Threadneedle this week confirmed it plans to shift European clients’ assets invested through its Oeic range into Sicav alternatives, including 13 products that would need to be launched to facilitate the move.

Columbia Threadneedle’s shift of assets from the UK to Luxembourg represents £6.9bn.

M&G Investments announced last year it plans to shift four funds with a cumulative value of £9.3bn to Luxembourg.