M&G reveals unexpected Brexit bonus (www.igniteseurope.com)
Brexit proofing its business has created “counter-intuitive” sales opportunities for M&G, a senior executive at the UK asset manager says
M&G was compelled to transfer almost €40bn of fund assets to new Luxembourg-domiciled funds following the UK’s decision to leave the EU in June 2016. Despite acknowledging that Brexit has been a large undertaking, M&G says it has found a silver lining from the UK’s departure from the single market. Speaking at an event held by the Association of the Luxembourg Fund Industry last week, Micaela Forelli, head of European distribution at M&G, says: “Counter-intuitively it worked really well.”
Ms Forelli tells Ignites Europe that M&G can “go deeper into Europe and offer a greater breadth of investment opportunities to clients globally” thanks to its new capabilities.
“It brings our product range in line with our clients’ investment vehicle preferences: [open-ended investment companies] for UK clients and Sicavs for international clients,” Ms Forelli says.
The signs are becoming clearer that it may be:
"Of the asset managers polled, 64 per cent said they planned to set up product ranges in other countries in the next five years.
Luxembourg, which has styled itself as an international centre for fund management distribution, is expected to be the main beneficiary of these moves. Of those responding to the State Street survey, 46 per cent said they use the grand duchy for product distribution, but 62 per cent said they planned to in five years."
Luxembourg Debt Fund Structuring Options
The training session will explore the extensive options that Luxembourg offers when it comes to structuring debt funds (RAIF, SIF, SV, Sarl). We will also look at what challenges GPs and LPs may face in this process, including:
Loan origination activities
Accommodating all categories of debt investments (CLOs, distressed debt, RE debt, loan acquisitions and more)
Reducing tax leakage in a BEPS environment
Achieving segregation of assets
Current trends in the Brexit environment
Francis Kass, Partner, Arendt & Medernach
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