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DAS INVESTMENTFund of funds managers, fund seers & Co.1 MIN READING TIME2018-01-12

Brexit episode: M & G launches fund move to Luxembourg

The London-based investment company M & G Investments has begun to transfer the assets of four of its funds for foreign investors from the UK to Luxembourg. The reason for this is the upcoming withdrawal of the United Kingdom from the EU.

"Following the referendum on the UK's exit from the United Kingdom, we have taken precautions to protect our international investors," said Anne Richards, M & G Investments' head of London.

As of now, the assets of four United Kingdom mixed and fixed income funds will be transferred to comparable investment products of their Luxembourg fund platform.

The following funds merge with their corresponding counterparts in the Grand Duchy:

  • M & G European Inflation Linked Corporate Bond Fund (ISIN: GB00B3VQKJ62)
  • M & G Dynamic Allocation Fund (ISIN: GB00B56H1S45)
  • M & G Income Allocation Fund (ISIN: GB00BBCR3283)
  • M & G Prudent Allocation Fund (ISIN: GB00BV8BTV53)

The four funds, which are distributed only to M & G customers outside the UK, together have a market value of £ 9.3 billion (equivalent to just under € 10.5 billion).

At the end of 2016, M & G launched a new Sicav fund platform for private investors in Luxembourg. The reason for this is that London's investment strategies are "accessible and available to all clients in every conceivable scenario," a spokeswoman told DAS INVESTMENT.

By March, additional funds should be launched in Luxembourg, "pursuing the same investment strategies as UK open-ended M & G funds held by European investors."

"In addition, we are establishing a new legal structure in Luxembourg, consisting of two companies: a management company that is both a UCITS manager and an alternative investment fund manager (AIFM), and a company that distributes the funds and services of the Luxembourg Management company. "

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