M&G is proposing to transfer £34bn of non-sterling assets sitting in its UK-domiciled OEIC range to equivalent SICAV funds in the group's Luxembourg range ahead of the UK's departure from the European Union.
The changes, which are subject to approval from shareholders and the Financial Conduct Authority will see holders of euro, Swiss Franc, US dollar and Singapore dollar share classes have their assets transferred to SICAV funds.
They will follow the same investment strategies and run by the same managers.
There is a total of £34bn in non-sterling share classes, the largest of which is the Optimal Income fund at £19.9bn, Global Floating Rate High Yield fund at £3.1bn and Global Dividend fund at £2.5bn. In total, 21 funds are affected by the possible changes.
Further details of the changes and timings will be given in September.
M&G is the second company to propose this move, following a move by Columbia Threadneedle earlier this month to transfer its EU customer assets, some $9.7bn, from UK OEICs to equivalent funds in its Luxembourg range.
Anne Richards, chief executive of M&G, said the decision had been taken as a way to "minimise disruption" for investors.
"Our priority is to minimise disruption for our investors by providing as much certainty as we can. The proposals we have announced today 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."
Considering adding Income Focus fund
Industry Voice: Two decades of experience have shown us that deploying an ESG focus is entirely complementary to long-term performance goals.
Russ Mould, investment director at AJ Bell, looks at four contributors to the upward march of the FTSE 100.
Next stage of development
Poor practice highlighted