M&G pins hopes on £34bn fund migration to 'Brexit-proof' business

Fund sizes to reduce

M&G's global head of distribution Jonathan Willcocks has said the firm's migration of assets, which is believed to be the largest by any asset manager in history, is "crucial" to ensure all European clients can own its funds after Brexit, although there will be repercussions for the UK range including very small OCF increases following their reduction in size.

Last week, the firm announced it would begin the process of migrating £34bn of non-sterling assets across 21 UK-domiciled OEIC funds into equivalent Luxembourg strategies in four phases over the next six months. The vehicles will be suspended for a day on either side of different weekends over the period, in order to avoid suspending them all at once. M&G said it had "fully engaged" with platforms over the suspensions and how investors would be affected.  However, the changes will mean the ongoing charges figure (OCF) will be very slightly increased for the remaining UK funds as a res...