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.