M&G to shift £34bn on Brexit uncertainty

M&G Investments is planning to transfer £34.2bn worth of non-sterling assets ahead of the UK’s exit from the European Union.

M&G to shift £34bn on Brexit uncertainty

The asset manager said the transfer would apply to non-sterling share classes of 21 UK-domiciled Oeics. They would be transferred to equivalent Sicav funds in its Luxembourg range.

M&G said the proposals aim to protect the interests of M&G’s customers outside the UK as the country negotiates Brexit.

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

It will apply to holders of Euro, Swiss Franc, US Dollar and Singapore Dollar share classes and the transfers will take the form of share class mergers.

M&G chief executive Anne Richards (pictured) said their priority is to minimise disruption for investors by providing as much certainty as possible.

Richards said: “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 FCA and Luxembourg’s regulator, Commission de Surveillance du Secteur Financier, have been informed of the proposals.

It is the latest asset manager over the last week to confirm plans for assets in the UK or EU ahead of Brexit.

On Monday, Legal & General Investment Management (LGIM) announced it has the green light from the Irish regulator for its Brexit plans for EU clients.

Last week, Columbia Threadneedle confirmed it plans to shift approximately £6.9bn of European clients’ assets invested through its Oeic range into Sicav alternatives.

AllianceBernstein also told Portfolio Adviser it had a plan in place to launch an Oeics range if Brexit negotiations sour. UK investors currently access its strategies through a Sicav range.

M&G Investments funds impacted

Non-sterling share classes transferring from these UK-domiciled OEICs:… To these Luxembourg-domiciled SICAVsAUM
M&G Asian FundM&G (Lux) Asian Fund£209 million
M&G Emerging Markets Bond FundM&G (Lux) Emerging Markets Bond Fund£593 million
M&G Episode Macro FundM&G (Lux) Episode Macro Fund£248 million
M&G European Corporate Bond FundM&G (Lux) European Corporate Bond Fund£1.4 billion
M&G Global High Yield Bond FundM&G (Lux) Global High Yield Bond Fund£55.7 million
M&G European Strategic Value FundM&G (Lux) Euro Strategic Value Fund£2.4 billion
M&G Global Floating Rate High Yield FundM&G (Lux) Global Floating Rate High Yield Fund£3.1 billion
M&G Global Convertibles FundM&G (Lux) Global Convertibles Fund£1.2 billion
M&G Global Corporate Bond FundM&G (Lux) Global Corporate Bond Fund£12 million
M&G Global Dividend FundM&G (Lux) Global Dividend Fund£2.5 billion
M&G Global Emerging Markets FundM&G (Lux) Global Emerging Markets Fund£909 million
M&G Global Macro Bond FundM&G (Lux) Global Macro Bond Fund£694 million
M&G Global Select FundM&G (Lux) Global Select Fund£97 million
M&G Japan FundM&G (Lux) Japan Fund£147 million
M&G Japan Smaller Companies FundM&G (Lux) Japan Smaller Companies Fund£150 million
M&G North American Dividend FundM&G (Lux) North American Dividend Fund£144 million
M&G North American Value FundM&G (Lux) North American Value Fund£279 million
M&G Optimal Income FundM&G (Lux) Optimal Income Fund£19.9 billion
M&G Pan European Dividend FundM&G (Lux) Pan European Dividend Fund£95 million
M&G Pan European Select FundM&G (Lux) Pan European Select Fund£47 million
M&G Short Dated Corporate Bond FundM&G (Lux) Short Dated Corporate Bond Fund£97 million
Total AUM in non-sterling share classes transferring to M&G’s Luxembourg range£34.2 billion

 

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