Aegon and China's Industrial Securities have agreed to establish an asset management joint venture. Under the agreement, Aegon will acquire a 49% interest in Industrial Fund Management Company (IFMC), a Chinese mutual fund manager with approximately EUR 1.7 billion in assets under management*). Industrial Securities, one of China's leading securities companies, will retain the remaining 51% of IFMC. The transaction will be submitted to the China Securities Regulatory Commission (CSRC) for approval and is subject to normal closing requirements.
The new partnership with Industrial Securities and the stake in IFMC represent an excellent opportunity for Aegon in entering the asset management market in China. Expanding into the asset management business will serve to strengthen Aegon's long-term commitment to the Chinese market.
The joint venture also offers Industrial Fund Management Company the possibility to extend its activities into the pension market. To support IFMC's ambition, Aegon will contribute its longstanding and broad-based expertise in pensions, innovative product development and risk management.
"China represents one of Aegon's key growth markets, given the significant potential in the coming years for life insurance, pension and related investment products," said Don Shepard, CEO and Chairman of the Executive Board of Aegon N.V. "We welcome this opportunity to combine our expertise with the broad and expert asset management capabilities of Industrial Securities, one of the country's leading securities companies."
"We strongly believe that Aegon's support for Industrial Fund Management Company in the areas of product development, investment processes, operations and risk management will improve our core competencies and raise our quality to allow us to develop our capabilities further as an excellent fund management company", said Lan Rong, Chairman of Industrial Securities.
ABOUT INDUSTRIAL SECURITIES
Founded in 1990, Industrial Securities has a very strict policy of always complying with the supervision guidelines of ‘Governing by law, monitoring and supervision, self-discipline, and standardization’, and is dedicated to the development and implementation of professional service, marketing, and management systems. Over the years, its security underwriting and brokerage businesses have witnessed steady growth and increased market share, with all indicators for its primary business units ranking among the top 20 in the industry.
Industrial Securities is one of the first ten securities companies that got permission for a capital increase and share expansion after the implementation of the P.R.C. Securities Law, and one of the nine comprehensive securities companies approved by the China Securities Regulatory Commission, as well as one of the first six standard securities brokers since the CSRC implemented its classified monitoring and supervision practice.
ABOUT INDUSTRIAL FUND MANAGEMENT COMPANY
Founded on September 30, 2003, Industrial Fund Management Company is a fund management company approved by the China Securities Regulatory Commission. Its main sponsor is Industrial Securities, one of the nation’s comprehensive securities companies. The company’s business scope covers fund establishment, fund management, and other business functions approved by the CSRC. Adhering to the primary objective of ‘maximizing shareholder interests’, it advocates a philosophy characterized by rational, scientific, and long-term investment. The company boasts a group of highly experienced professional talents, and has formulated research systems guided by specialized divisions in the areas of macroeconomics, industry and listed companies, financial engineering, and risk management. It is committed to rewarding its whole range of fund investors with sustained excellent performance.
