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September 20, 2018updated 26 Sep 2018 1:48pm

First State to transfer EU assets to Dublin ahead of Brexit

First State Investments is set to shift up to £4.3bn of its client assets from its UK-domiciled OEIC funds to its Dublin-based funds in preparation for Brexit.

The move will impact 18 strategies including the First State Greater China Growth Fund, Global Property Securities Fund, Asia Focus Fund, and Emerging Markets Bond Fund.

Stewart Investors funds, including the Global Emerging Markets Leaders, Asia Pacific Fund, Global Emerging Markets Funds, and Worldwide Sustainability Fund, have also been affected by the move.

The affected vehicles will continue to be managed by the existing portfolio management teams.

The asset transfer is set to occur during the first quarter of next year, subject to shareholder and regulatory nod. Investors in First State’s UK range will receive further details on the asset transfer next month.

At the same time, the company also plans to launch a management company in Dublin in 2019 in a bid to ensure uninterrupted access to its European Union (EU) clients regardless of the result of Britain’s negotiations with the EU.

First State managing director Chris Turpin 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.”

Several financial firms have zeroed in on Ireland as their next EU base amidst Brexit uncertainty.

Earlier this year, Columbia Threadneedle unveiled plans to transfer its EU client assets to its Luxembourg range while Legal & General Investment Management secured regulatory approval for its new management company in Dublin.

As part of their Brexit strategies, asset managers Baillie Gifford and Ashmore also announced plans to open offices in Dublin.

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