M&G reveals plans to create Luxembourg hub post-Brexit

Hopes to offer two sub-funds by year end

M&G has set out plans to launch Luxembourg-based SICAVs as Brexit plans threaten to create problems with distributing UK-based funds abroad.

The £255bn UK-based asset manager is seeking permission from the local regulator to launch Luxembourg-based SICAVs for retail investors outside the UK, first reported in the Financial Times.  If approved by the CSSF (Commission de Surveillance du Secteur Financier), M&G hopes initially to offer two sub-funds by the end of the year. These would be new investment strategies rather than replications of existing funds. Grant Speirs, M&G's group finance director, said this is a prudent move in light of June's referendum on the UK's membership of the European Union. "A Luxembourg retail ...