Brexit effect: M&G looks towards Luxembourg

M&G, the asset management division of British insurer Prudential has announced that iti is seeking permission by Luxembourg regulator CFFS to launch a new Sicav fund range aimed at retail investors outside of the UK.

Subject to regulatory approval M&G aims to offer two sub-funds with new investment strategies by the end of the year.

The move was triggered by the UK’s decision to leave the European Union, as Grant Speirs, M&G’s Group finance director confirms: “A Luxembourg retail SICAV platform will enable us to offer fund strategies to European retail investors if the UK loses financial services passporting rights in several years’ time as a result of its exit from the EU,” he says.

Immediately following the British vote to leave the EU, M&G already announced that it will build a fund business in Dublin in order to replicate funds for overseas investors in the event that a Brexit will affect its ability to distribute UK domiciled funds in Europe.

M&G currently manages about £255.4 billion of assets, of which approximately 10% is held by non-UK based investors.

The group stressed that it will continue to have Ucits funds domiciled in the UK and Ireland, as well as in Luxembourg.

Mona Dohle
Mona Dohle speaks German and Dutch, she is DACH & Benelux Correspondent for InvestmentEurope. Prior to that, she worked as a journalist in Egypt and Palestine. She started her career as a journalist working for a local German newspaper. Mona graduated with an MSc in Development Studies from SOAS and has completed the CISI Certificate in International Wealth and Investment Management.

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