Fund house M&G is seeking to move the assets of four UK-domiciled portfolios to Luxembourg, in a bid to protect offshore investors from the implications of Brexit.
The asset manager's Dynamic Allocation, Income Allocation, Prudent Allocation and European Inflation-Linked Corporate Bond funds are all to be moved to its Luxembourg platform by the end of this year, under proposals which require shareholder approval.
The funds, which have a cumulative value of £6bn, are distributed exclusively outside the UK.
"The proposals....aim to protect the interests of M&G's non-UK domiciled customers as the UK negotiates its exit from the EU," said the firm in a statement.
The Prudent Allocation product will be renamed as the M&G (Lux) Conservative Allocation fund as a result. The four funds will not change strategies or managers.
Anne Richards, M&G chief executive, said: “With little clarity yet on the outcome of the negotiations between the UK and the rest of the EU on its future trading relationship, we believe it is prudent to take action now to protect the interests of our international customers.
“The proposals to transfer the assets of these four funds have a primary aim – to minimise disruption for our investors. Approval of the transfer will ensure they retain access to the same strategies and the same fund managers.”
