Royal London Asset Management (RLAM), which owns 0.72% of Unilever, said it would be forced to sell its shares if the move goes ahead.
“Unilever might be able to convince European shareholders that the move makes sense for the company and for them as investors in the long term, but it’s hard for a UK investor to see an incentive to vote in favour,” said Mike Fox, head of sustainable investments at Royal London Asset Management.
Unilever, the owner of the Marmite and Dove brands, wants to move the business from London to Rotterdam as part of a plan to simplify its corporate structure. The plan will see the company switch from two classes of shares to one.
The worry for investors is that Unilever will be ousted from the FTSE 100 if it moves its base to the Netherlands, meaning passive funds that track FTSE indices would be forced to sell.