M&G Investments to set up management company in Luxembourg

London-based asset manager M&G Investments has announced that it plans to set up a management company in Luxembourg, ending speculation that it might establish part of its business in Dublin.

M&G is also planning to launch a family of Luxembourg SICAV funds in March 2019.

The SICAV range will include funds following the same investment strategies as those of M&G’s UK open-ended funds held by European investors.

Pending regulatory approval, M&G is to establish a new legal structure in Luxembourg consisting of two entities:

A management company that is both a UCITS manager and an Alternative Investment Fund Manager (AIFM)
A firm to carry out distribution of the Luxembourg management company’s funds and services.

Continued access for European clients

Anne Richards, Chief Executive at M&G Investments, said: “With the launch if this range of SICAV funds, our international clients will be able to choose how they gain access to our fund strategies and their managers.

“It also ensures our European clients can continue to have access to our investment expertise after March 2019, regardless of the eventual shape of the trading relationship between the UK and the rest of the European Union.”

As at the end of June 2016, M&G managed 255.4 billion pounds of assets through a wide range of investment strategies across equities, fixed income, real estate and multi asset.

It employs over 1,900 people worldwide, operating from offices across Europe and Asia.