Brexit: your questions answered

At M&G we are, first and foremost, stewards of our customers’ money, and we take seriously the responsibilities that come with this role. Part of this involves navigating the political environment in which we operate.

The UK is shortly due to leave the European Union, but what form Brexit will take, and the implications this will have for investors, remains uncertain.

This section contains answers to some of the most common questions we get asked about Brexit, to help you with any queries you may have.

Is there any impact for me?

There could be no direct impact. For example, if you’re domiciled in the UK and invest with a UK-registered company, such as M&G Investments, from a UK bank account, it’s unlikely that Brexit will have a direct impact on your investment.

However, investments of any nature carry risk and the value of your investment has the potential to fall as well as rise. Political uncertainty and various other factors, such as exchange and interest rates, can all affect how your investment performs over any period.

Potential volatility

Periods of political change are often accompanied by market turbulence, which we understand can be uncomfortable for many investors.

To check how well your investments are positioned to weather market volatility, and to ensure they continue to be aligned with your goals and circumstances, you may find it worthwhile speaking to a financial adviser.

If you don’t already have one, you can find a financial adviser here. The Money Advice Service has also provided details on how to obtain financial advice on its website.

Important information

The value and income from a fund's assets will go down as well as up. This will cause the value of your investment to fall as well as rise and you may get back less than you originally invested.

Unfortunately, we’re not able to give any financial advice, and the views expressed in this article should not be taken as any kind of recommendation or forecast. If you’re unsure about the suitability of your investment, please speak to a financial adviser.

What are your Brexit plans?

At M&G we constantly monitor all factors including the political environment in which we operate. The Brexit negotiations to date have been detailed and complex, and at present there is still uncertainty as to what the final outcomes will be.

However, we have developed a range of contingency plans. Our customers’ interests, whether resident inside or outside the European Economic Area, are at the very heart of our thinking and any actions we might take. Our priority is to diligently manage your investments with us through these times. We’ll keep our website updated as more information becomes known.

Some of M&G’s funds are being redomiciled to another country in the EU — how will this affect me?

We have taken several steps to ensure the interests of all of our investors are protected, regardless of the outcome of the Brexit negotiations between the UK and the EU, and to minimise any disruption.

Following the approval of our shareholders and regulators, we have successfully transferred certain share classes of our UK-domiciled OEIC funds to equivalent Luxembourg-domiciled SICAV funds. These mergers, which protect our customers’ interests by ensuring they have continued access to the current range of M&G investment strategies, are now complete. 

Are my investments safe due to the uncertainty over Brexit at present?

The performance of any investment can never be guaranteed, whatever the circumstances. There is always a risk that the value and income from a fund's assets will go down, as well as up, and you may get back less than you originally invested.

While we cannot guarantee what impact Brexit will have on the value of your investments, please rest assured that our priority is, and always has been, to minimise disruption for you and your investments. M&G has a long history of operating through changing economic conditions and navigating the challenges and opportunities that accompany political uncertainty is a key aspect of active fund management.

If you have concerns about how wider economic conditions and political change may affect your investments, you should consider speaking to a financial adviser. M&G are not authorised to give financial advice.

Is M&G in favour of Brexit?

Our focus for over 85 years has been to protect the long-term interests of our customers, whatever the local, national and global economic and political landscape. This remains the case, whether the UK is part of the European Union or not.

Where can I get more information?

You can get the latest official information on Brexit from the UK Government website.

You can also contact your financial adviser if you have one. Note that advisers may charge for their services.

For further market-related insights from M&G, you can visit our Brexit page.