M&G Investments is preparing to transfer £6bn in assets to a new Luxembourg-based funds division as a "precautionary move" ahead of the UK's exit from the European Union.

The £6bn sits in four UK-domiciled open-ended funds: M&G's £4.2bn dynamic allocation fund; the £823m M&G income allocation fund; the £982m M&G prudent allocation fund; and the £68m M&G European inflation linked corporate bond fund.