First State Investments plans to transfer up to £4.3bn (€4.8bn) of assets from UK-based to Ireland-based funds as part of its preparations for the UK exiting the European Union next year.
European investors in 18 of the firm’s UK OEIC range will be automatically transferred to an equivalent Dublin-domiciled UCITS vehicle in the first quarter of next year, subject to the approval of investors and regulators, the company said in a press release.
The funds include equity, fixed income, property and infrastructure strategies and are run by either First State Investments or Stewart Investors, the company’s specialist equity subsidiary.
Chris Turpin, managing director for Europe, the Middle East and Africa at First State, said: “Our proposals are intended to protect the interests of all investors, and in particular to ensure that our EU-based clients can continue to invest in our strategies irrespective of the outcome of the Brexit negotiations.
“First State has operated Dublin-based pooled funds for almost 20 years and we have an established presence in Ireland.”
First State said it would send further details of the transfer plans to investors next month, with formal arrangements to be confirmed in November after sign-off from the Financial Conduct Authority.
In addition, the asset manager said it was “seeing the necessary approvals” to establish operations in the Irish capital to provide services to its EU client base.
Affected funds
UK fund | Irish fund receiving |
---|---|
First State Asia Focus Fund |
First State Asia Pacific Select Fund* |
First State Asian Property Securities Fund |
First State Asian Property Securities Fund |
First State Emerging Markets Bond Fund |
First State Emerging Markets Bond Fund |
First State Global Listed Infrastructure Fund |
First State Global Listed Infrastructure Fund |
First State Global Property Securities Fund |
First State Global Property Securities Fund |
First State Greater China Growth Fund |
First State Greater China Growth Fund |
First State Japan Focus Fund |
First State Japan Equity Fund (similar strategy) |
Stewart Investors Asia Pacific Fund |
Stewart Investors Asia Pacific Fund |
Stewart Investors Asia Pacific Leaders Fund |
Stewart Investors Asia Pacific Leaders Fund |
Stewart Investors Asia Pacific Sustainability Fund |
Stewart Investors Asia Pacific Sustainability Fund |
Stewart Investors Global Emerging Markets Fund |
Stewart Investors Global Emerging Markets Leaders Fund (similar strategy) |
Stewart Investors Global Emerging Markets Leaders Fund |
Stewart Investors Global Emerging Markets Leaders Fund |
Stewart Investors Global Emerging Markets Sustainability Fund |
Stewart Investors Global Emerging Markets Sustainability Fund |
Stewart Investors Indian Subcontinent Fund* |
Stewart Investors Indian Subcontinent Sustainability Fund |
Stewart Investors Latin America Fund |
Stewart Investors Latin America Fund |
Stewart Investors Worldwide Equity Fund |
Stewart Investors Worldwide Equity Fund |
Stewart Investors Worldwide Leaders Fund* |
Stewart Investors Worldwide Select Fund |
Stewart Investors Worldwide Sustainability Fund |
Stewart Investors Worldwide Sustainability Fund |
* The names of these funds will change to ensure consistency across both ranges
Source: First State Investments
First State’s plans follow similar moves made by M&G – which has transferred more than €45bn out of UK-based vehicles – and Columbia Threadneedle earlier this year.
According to IPE’s 2018 Top 400 Asset Managers survey, First State Investments ran nearly €13bn on behalf of European institutional investors at the end of 2017. It ranked 102 in the survey with €142.1bn of total global assets under management.
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