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M&G begins Brexit-linked shift of funds to Luxembourg

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Following the referendum decision by the UK to leave the European Union, M&G announced that it intended to move the four funds to protect the interests of its non-UK domiciled customers.

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.

All four funds are distributed exclusively to customers outside the UK, and the transfer of assets is subject to fund shareholder approval.

The Commission de Surveillance du Secteur Financier (CSSF) in Luxembourg and the Financial Conduct Authority (FCA) have both given their approval to M&G’s proposals.

Anne Richards, chief executive of M&G, said: 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.”

Part of the Mark Allen Group.