Brexit sees M&G shift £34bn of funds out of UK

Brexit sees M&G shift £34bn of funds out of UK

Fund giant M&G is the latest firm to shift European clients out of its UK fund range and into equivalent products domiciled in Luxembourg on fears around the consequences of Brexit.

The company confirmed it is to move European Union clients in 20 of its Oeic funds, with the assets being moved total £34.2bn.

The investors remain in funds managed by the same managers and pursuing precisely the same strategy as if they hadn't moved offshore.

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Ann Richards, chief executive of M&G said: "Our priority is to minimise disruption for our investors by providing as much certainty as we can.

"The proposals we have announced today (16 May) 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."

This move follows Columbia Threadneedle taking similar action.

Adrian Lowcock, investment director at Architas, said: "Whilst the timing might be early that is perhaps a sign of the uncertainty and lack of clarity of the Brexit process.

"Investors don't necessarily need to wait for a resolution so will move or not invest further which begins to impact on a business so it has to also act."