M&G begins fund suspensions in Brexit flight from UK

M&G Investments will halt trading on 21 funds as it ploughs ahead with plans to shift £34bn of assets out of the UK amid Brexit concerns.

The suspensions, which will begin midday Thursday and finish on Monday, are the first of four tranches of planned downtime by M&G so as not to suspend all of its funds at once.

The firm has begun telling impacted clients that all the share classes in the funds that are moving to Luxembourg will be affected.

The first tranche includes M&G’s Global Macro Bond, Short Dated Corporate Bond, Japan and Asian funds.

Money Marketing understands that due to the complexity of the move the suspension had to come over a weekend.

M&G first revealed plans to transfer £32bn-worth of UK-domiciled Oeic funds to equivalent Sicav funds in its Luxembourg range in May, saying the move would protect non-UK customers’ interests as Brexit negotiations unfold, ensuring they had access regardless of the outcome.

The next tranche of suspensions should fall in November, followed by another in December, and then finally the £23bn M&G Optimal Income fund will move as part of its own tranche March.

Last August, Prudential said it would be the latest insurance giant to embrace vertical integration by fully merging M&G into its wider UK and Europe business, and has already been building up its financial planning arm, Prudential Financial Planning.

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Comments

There are 24 comments at the moment, we would love to hear your opinion too.

  1. I would like to know, not in particular relation to this story, whether any IFAs, that were keen on leaving, think that the UK would, now, be better off staying in the EU compared to the options of a totally hard brexit or staying in a customs union and/or single market without having any say at the EU table.

    I would also like to know whether they think they have any solutions to the Irish border issue, if Britain leaves, or whether they don’t care about the Northern Ireland/Republic of Ireland problem.

    Not very scientific, maybe, but might be interesting to get some up to date opinions.

  2. I seem to get daily emails from pro-brexit financial commentators saying Brexit is the best thing that ever happened, yet I then keep reading about the CBI, Rolls Royce, Ford, and more discussing the physical harms of brexit. And now this. How much is coming back the other way in the way of stepped up new investment in our country?

  3. Not scientific but here we go.

    I believe that there is a lot of ‘positioning’ going on by MP’s, Corporates and Barnier. Corporates are using Brexit in order to lay the blame for their inefficiencies and lack of forward thinking somewhere other than senior management.

    ‘Brussels’ has shown, in its handling of negotiations, that is certainly not a ‘club’ that I would want to belong to. The ‘Irish’ issue will be resolved with technology, the UK will survive all of this and prosper in trading independently with the ROW as well as Europe and I hope that Boris Johnson, Rees Mogg and the rest of their weak willed cronies all end up with egg on their faces for their attempts at ‘bullying’ parliament into their way of thinking. When the Irish people all realist that they are now ‘net contributors’ to Brussels rather than the ‘net receivers’ that they have always been, they will also want ‘out’. I am an ‘Irish immigrant’ from 1950 and the UK Is still easily the best place in the world to live and I can only see it getting better.

    I hope that helps in some way.

    • Interesting view, coming from an Irishman, Ted. It looks as if you would want to leave whatever the deal (or no deal)? I don’t quite understand your dislike of Johnson and Rees Mogg etc. when you seem to be in agreement with them though. Not that I like them one bit. I may have misunderstood you.

      • Looks like your poll is about 50/50 so far Patrick? I’m agnostic, so can’t really help you either way.

        • You might as well vote remain in the peoples vote then Simon. You may be agnostic but that could also indicate you are happy to stick with the devil you know!

          I was hoping for some honest comments from a few more people though, but thanks for yours.

  4. Ah now we are seeing some results.

    According to the Brexiteers everything will be wonderful even if (or especially if) there is no deal. Now we see M&G, JP Morgan, Toyota, Jaguar, BMW and a whole phalanx of others either slowing down or making contingency plans to leave.

    We Remainers were accused of Project Fear. I would suggest that the Brexit camp should heed the words of Hector Sants “Be afraid, be very afraid” Your wealth (such as it is) and your standard of living is about to go down the pan. The only waves Britannia will be ruling will be the ripples in your bathwater.

    • Thanks for your comment Harry.

      Apart from the economic situation, which nobody can be 100% certain of (even though I am of the same opinion as you) I find it hard to fathom how the fragmentation of a peaceful union of countries, no matter that the EU is far from perfect (and that can be tackled) is a good idea.

      Britain, like most other countries, started off as a land of small villages, that often fought with each other. Gradually larger villages and towns were formed and people integrated and a bit of peace broke out. On a much larger scale that has begun to happen on a continental basis. Surely that has been a good thing but, now, some politicians want to reverse the process. I think that spells trouble going forward.

  5. “Interesting view, coming from an Irishman” – that sounds a little patronising Patrick. Regarding your comment about Johnson and Rees-Mogg, it is quite feasible to dislike someone you agree with or like someone with whom you disagree – it’s called taking an adult view. If those people, who voted remain but could not accept the result, had instead spent the last two years constructively engaged rather than trying to undermine the decision then we could have been in a very different position right now. You might want to take a look at a book by R Eatwell & M Goodwin when it comes out later this month titled ‘National Populism, the Revolt Against Liberal Democracy’ to understand the essential greyness of the voter mindset! PS I agree with Ted, as an example I believe BMW announced a one moth shut down ‘because of Brexit’, a contact in the car industry told me that they were going to do this anyway to retool their assembly line for a new model! What! A ‘big’ business trying to tilt the playing field in their favour, who would ever have believed it?!

    • Unpleasant of you to make my comment sound patronising Chris. I think that says more about you than my comment does about me. I was talking about the Irish border and Ted didn’t seem concerned about it, which I thought was surprising for an Irishman. I’m 25% Irish and have been visiting friends and family since the age of 10, by the way, and I am concerned.

    • ‘If those people, who voted remain but could not accept the result, had instead spent the last two years constructively engaged rather than trying to undermine the decision then we could have been in a very different position right now’.

      I guess if i had been a little more supportive about Brexit I could have solved the Irish border issue, we would have amazing trade deals in place and the 000’s of other issues would miraculously be solved.

      What a stupid comment, how would we be in a better position on complex and unsolvable issues with wider public support??

      Brexit was always, and is more obviously becoming a disaster for this country.

    • A prominently brexit supporter, Mr Dyson, has just announced he will be building his cars in Singapore rather than the UK.

      Is that the kind of ‘constructive engagement’ you are advocating?

      The money, jobs and tax leaving this country is shameful. None of this was needed.

  6. I think that those keen on leaving fully understood that in the short term – definitely, and in the long term possibly, the UK would be financially worse off.

    As for Ireland the UK has long maintained an open border with Ireland, and on that basis there is no “problem” to solve. It is the EU that is adamant that their members cannot share an open border with a non-EU country. They appear willing (even eager) to put peace in Ireland at risk over this problem of their own invention.

    A good example of the ethics that made people willing to pay a price to leave.

    • You seem to have forgotten, David, that neither nation was in the EU when we had an open border with Ireland. The situation will be totally different when we leave, so your point about ‘no “problem” to solve’ has no foundation.

      If you have an open border with the EU (in Ireland) that is not having control over your borders, which is what we were told we would have. It is, therefore, a huge “problem ” of the our making, not the EU’s, thus it is up to us to solve it. I feel, also, that you don’t really grasp the complexities of the Republic’s and Northern Ireland’s relationship, like most Brits (apologies if you are not British, of course).

      Thanks for your comments however.

  7. Christopher Petrie 22nd October 2018 at 10:37 pm

    My suspicion is that the U.K. will benefit from being outside the EU.

    When we refused to join the euro, the pro-Europeans said stuff like “slow lane of Europe” and London would suffer etc.

    The opposite turned out – London boomed as an international Centre, and Paris and Frankfurt bombed.

    The shame is the original debate was awful (on both sides). Everyone keeps predicting economic outcomes (without any shred of proof) when the reality is the EU is about “the European Project “ – the aim of creating a federal EU country. The continentals know all about this and are broadly in favour of The Project. In the U.K, the pro-remainers preferred to pretend it doesn’t exist.

    I’m pretty sure in 5 years people will wonder what the fuss was all about. In 30 years I suspect the EU won’t even exist. All empires fall eventually, and this one appears to be built on sand.

    • Your suspicion, as you say yourself Chris, could be right or wrong because nobody knows for sure. Is a suspicion enough to take such a massive risk on though? For some people the answer is yes but for me, given all my other feelings about fragmentation, it would be a no.

      Thanks for sharing your current view.

  8. Define worse off. If the government in power, do something about the foreign aid, the Eu donation to the gravy train etc, we will do ok. All I’m seeing is Turkeys praying Xmas never comes. The remainers only think of themselves as do the brexit voters Only time will tell. But it’s democracy p. If we have an election.
    It’s like having a people’s vote if Labour get in because we didn’t know what we were voting for, and believe me we don’t

    • I’m one of those turkeys I guess, Thomas. Things never stay the same forever, I believe, and the EU will change, as time goes on, but we might not be able to influence it. I don’t think it will disappear but, rather evolve, which it does need to do.

      As for a people’s vote I can still see it happening so if the public want a hard brexit another ‘out’ vote would settle it (as that option should be on the ballot paper) at least for another ten or twenty years until there is a another rethink. After all the 2016 referendum was the second vote, in which case a lot of people could have said it was anti democratic as we decided what was best in June 1975.

      A people’s vote on Europe is not like having one after a general election, however, as any new government is for a maximum of five years. We certainly didn’t know what a shambles the conservatives would make of almost everything they have touched over the last few years. We can get rid of them soon though. Their decision making is pathetic and the only praise they seem to get now is when they nick Labour ideas (although they never actually do anything with them).

      Do you really think Labour would do a worse job? That’s hard for me to believe, quite honestly.

      Really interesting to hear all these opinions. It does look (albeit in a very limited survey) as if most people have retained their original stance, despite the likely changes to what Johnson, Gove and company first suggested we would have.

      Can’t wait for it to be over and done with though.

      • OK Patrick, so shall we agree not to be deliberately disingenuous with eachother’s posts then? I absolutely agree with your last comment by the way. Obviously we are on opposite sides of the fence on this and my reason was simply down to not wanting to continue down the path of creeping federalism and, however we getting there, that is the inevitable journey’s end. And my problem with this is that it will be under the control of an unaccountable and fallible bureaucracy that will never change despite whatever the ‘people’ wish, not while we have the current crop of politicians across the continent anyway. However the 2016 referendum came about (which did not reflect well on Cameron) maybe it was about time the country took stock of where it was in relation to Europe bearing in mind the question for the first referendum over 30 years ago. The 2016 referendum question was not a good one for sure but I cannot see how any one question can encapsulate what needs to be asked of the electorate bearing in mind your own comments of inevitable change. Now you could say we should still be inside the EU to influence matters but, really, it is Germany and France who pull the strings, they always have and always will being the two largest economies in the eurozone and with the largest number of compatriots ensconced in Brussels (and Strasbourg of course).

        Have a good day.

        • OK Chris. I tend to get the hump when people take the rise out of the Irish or give them a hard time (my Irish wife was chucked off a bus, by the conductor, many years ago for just being Irish) and then you suspected me of making fun of the Irish myself.

          You might have hit the nail on the head yourself though when you said

          “And my problem with this is that it will be under the control of an unaccountable and fallible bureaucracy that will never change despite whatever the ‘people’ wish, not while we have the current crop of politicians across the continent anyway.”

          Because you said it will never change but then added that it was the current crop of politicians that make you feel that. It is only temporary and how many things can you think of that never change? Although, technically Britain is not federal there is not much difference but the Welsh, Scots and Northern Irish all have their own cultural foibles, which is great. If Europe is like that in 50 years it wouldn’t worry me (although I would be 112).

          Thanks for your reply. I hope you have a good day too.

  9. I am reminded of what my dear old mum used to say before ripping off the plaster over a nasty graze or cut ……

    “yeah its going to hurt but only for a short while, and it will heal better once you let the air get to it, you don’t know what nasty bugs are lurking under that plaster”

    Nothing like a good fire cracker up the rear end, to get some bureaucrats to stand up straight and take notice !

    Yep the plaster is soon going to be ripped off…yeah it will hurt for a while but the pain will subside and the scar will fade.

    • Hurt for a while? 50 years according to
      Rees-Mogg. And you’ve got to be careful to keep the wound clean. Otherwise it will get infected.

      The UK will get dirt in the wound, I fear, and prostitute itself to nations run by people like Donald Trump and Rodrigo Duterte and even nations that chop people up in their consulates while bombing the crap out of the Yemen with weapons we sold them. I think they are a tad worse than the EU.

      I hope I’m wrong.

      Thanks for your input though DH.

  10. Look, let’s call a spade a spade.
    In the main it was the old who voted out and the young (when they could be bothered) voted in. That being so it is untenable of the old to thwart the future of the young.
    In the main it seems that the educated voted in and the others voted out. Yes, there are plenty of exceptions, but every university town (apart from Birmingham, where the result was incredibly close) voted remain.
    Whether it is PC or not and no matter how many wish to deny it, the plain fact is that ‘the Great British Public’ are dim. That’s why the believed the £350 million a week to the NHS, why they make the UK the most obese nation in Europe, why they don’t save (those who are able), why they don’t exercise, why the UK has the fewest foreign language speakers in Western Europe, why we have the highest illiteracy in the EU and on and on and on.
    Yes I know there will be screams and I will be accused of heaven knows what and the brickbats will come thick and fast, but that doesn’t alter facts.

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