Spain’s Mapfre to sell funds from Luxembourg
Spanish insurer Mapfre will strengthen its asset management division by expanding operations in Luxembourg to support sales growth.
The plans to setup an asset management arm in Luxembourg were unveiled at the company’s last shareholders meeting by Mapfre’s president Antonio Huertas, who was quoted by the newspaper Cinco Dias.
Mapfre will distribute Spanish equity funds in Luxembourg, as well as global and European equities funds, in addition to multi-strategy products.
The final product portfolio is yet to be defined, but the goal is to distribute funds in countries where Mapfre operates already as insurer, as well as targeting institutional investors.
“We want to take advantage of our global presence to fine-tune our skills in asset management,” said Jose Luis Jimenez, CEO of Mapfre Asset Management.
The executive, who worked previously in Banca March, said the current situation of near zero interest rate in deposits is suitable for the insurance group to develop its full potential in the funds business.
One of the first steps to make this project possible is the establishment of an asset management platform in Luxembourg, which is expected to be fully operational before the end of the year.
“The idea is to select our best products, those that may be more attractive to international customers, and start distributing them from our Luxembourg platform,” Jimenez said.
Mapfre currently manages assets totaling €2.3bn in Spain, which compares with AUM of €60bn globally.