M&G Investments is beginning the transfer process for the assets of four UK-domiciled open-ended funds to equivalent funds on its Luxembourg platform. All four funds are distributed exclusively to customers outside the UK. The transfer of assets is subject to fund shareholder approval.
With a cumulative market value of £9.3 billion, the four funds are: M&G European Inflation Linked Corporate Bond Fund, M&G Dynamic Allocation Fund, M&G Income Allocation Fund and M&G Prudent Allocation Fund. Their assets will be merging into the M&G (Lux) European Inflation Linked Corporate Bond Fund, M&G (Lux) Dynamic Allocation, M&G (Lux) Income Allocation and the M&G (Lux) Conservative Allocation funds respectively.
The Commission de Surveillance du Secteur Financier (CSSF) and the Financial Conduct Authority (FCA) have both given their approval to M&G’s proposals.
Anne Richards, CEO of M&G said, “Following the referendum decision for the UK to leave the European Union, M&G has taken a series of precautionary measures aimed at protecting the interests of our international investors. These measures, which range from building up our SICAV offering to establishing a legal structure in Luxembourg, will ensure that our clients outside the UK retain access to our investment strategies regardless of the final agreement between the UK and the rest of Europe.”
M&G is a leading international asset manager. M&G’s customers include private investors, members of pension schemes and life insurance policyholders. M&G manages over £285.3 billion in assets for its customers.
Headquartered in London, M&G employs over 2,000 people worldwide in 16 countries, managing assets in Europe, Asia and the US. M&G Investments is the investment arm of Prudential in the UK and Europe.