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 – a subsidiary of British life insurance and financial services multinational Prudential – said the proposals aim to protect the interests of M&G’s customers outside the UK as the Britain negotiates its exit from the European Union.
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 said their priority is to minimise disruption for investors by providing as much certainty as possible
“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 European Union 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 sister publication 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.
Funds impacted
| Non-sterling share classes transferring from these UK-domiciled OEICs: | … To these Luxembourg-domiciled SICAVs | AUM |
| M&G Asian Fund | M&G (Lux) Asian Fund | £209 million |
| M&G Emerging Markets Bond Fund | M&G (Lux) Emerging Markets Bond Fund | £593 million |
| M&G Episode Macro Fund | M&G (Lux) Episode Macro Fund | £248 million |
| M&G European Corporate Bond Fund | M&G (Lux) European Corporate Bond Fund | £1.4 billion |
| M&G Global High Yield Bond Fund | M&G (Lux) Global High Yield Bond Fund | £55.7 million |
| M&G European Strategic Value Fund | M&G (Lux) Euro Strategic Value Fund | £2.4 billion |
| M&G Global Floating Rate High Yield Fund | M&G (Lux) Global Floating Rate High Yield Fund | £3.1 billion |
| M&G Global Convertibles Fund | M&G (Lux) Global Convertibles Fund | £1.2 billion |
| M&G Global Corporate Bond Fund | M&G (Lux) Global Corporate Bond Fund | £12 million |
| M&G Global Dividend Fund | M&G (Lux) Global Dividend Fund | £2.5 billion |
| M&G Global Emerging Markets Fund | M&G (Lux) Global Emerging Markets Fund | £909 million |
| M&G Global Macro Bond Fund | M&G (Lux) Global Macro Bond Fund | £694 million |
| M&G Global Select Fund | M&G (Lux) Global Select Fund | £97 million |
| M&G Japan Fund | M&G (Lux) Japan Fund | £147 million |
| M&G Japan Smaller Companies Fund | M&G (Lux) Japan Smaller Companies Fund | £150 million |
| M&G North American Dividend Fund | M&G (Lux) North American Dividend Fund | £144 million |
| M&G North American Value Fund | M&G (Lux) North American Value Fund | £279 million |
| M&G Optimal Income Fund | M&G (Lux) Optimal Income Fund | £19.9 billion |
| M&G Pan European Dividend Fund | M&G (Lux) Pan European Dividend Fund | £95 million |
| M&G Pan European Select Fund | M&G (Lux) Pan European Select Fund | £47 million |
| M&G Short Dated Corporate Bond Fund | M&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 | |
