US asset manager, MFS, is seeking the approval of Luxembourg’s financial regulator (CSSF) to strengthen its presence and to create its EU hub in Luxembourg.
At present, MFS has a Luxembourg fund range with 36 equity, multi-asset and fixed-income sub-funds that are sold primarily into Europe, Britain and Latin America.
Madeline Forrester, managing director, UK Institutional Business, told Reuters: “We’re all investing time and money planning for the most unfavourable outcome. We view this as making a long-term investment in our Luxembourg office, but whatever the result of the final deal, we have to look after our clients and that means preparing for a ‘hard’ Brexit.”
Besides MFS, also T Rowe Price, MJ Hudson, M&G and many other asset managers are in the process of consolidating their presence in Luxembourg, which is the largest investment fund center in Europe and the second largest in the world after the US. In addition, more than 20 financial institutions (banks, insurers, asset managers, private equity) have been reported to relocate or expand parts of their business activities in Luxembourg following the UK’s decision to leave the European Union.
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