Tuesday 18 September 2018 4:11 pm

First State Investments transfers funds to Dublin ahead of Brexit

First State Investments will move European Union client assets from the UK to Dublin in preparation for Brexit.

The firm, which has 11 offices worldwide including one in The City, will also set up management company operations in the Irish capital next year to continue serving EU investors regardless of the outcome of the Brexit negotiations.

A total of 18 UK First State funds will be exchanged for equivalent share classes in Dublin-based funds and will be run by the same portfolio management teams.

First State EMEA 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.”

The announcement comes weeks after London-based firm Ashmore said it would set up an Irish subsidiary as part of its Brexit contingency planning.

In February, Aberdeen Standard Investments revealed it would set up a European business in Dublin, while Jupiter and M&G opted to establish a presence in Luxembourg to allow European clients to continue to access their funds.

Hargreaves Lansdown analyst Laith Khalaf told City PM last week that the main issue for the asset management industry is selling products and services to European customers after the UK exits the EU.

"A good Brexit for the fund management industry would involve some sort of deal which allowed them to continue servicing European clients from the UK," he said.

"In the event that doesn’t happen, it’s likely firms will find ways to sell into Europe, though that may involve setting up businesses on the continent rather than trading across borders."

First State investors will receive details of the plans next month before formal notifications are sent out in November.

If proposals are approved by shareholders the transfer of assets will take place at the beginning of next year.