Aegon and China's Industrial Securities have completed the establishment of their asset management joint venture following the recent final approval by the regulatory authorities.
Under the agreement, Aegon has acquired a 49% interest in Industrial Fund Management Company (IFMC), a Chinese mutual fund manager with approximately EUR 3 billion assets under management*). Industrial Securities, one of China's leading securities companies, will retain the remaining 51% of IFMC. The initial agreement was announced on May 28, 2007.
The joint venture will be renamed Aegon Industrial Fund Management Company. Both shareholders will be equally represented in the Board of Directors. The current management team led by CEO Yang Dong will continue to lead Aegon Industrial FMC with the objective of becoming one of the top players in the Chinese fund management market. Over the past two years, assets under management have increased from EUR 600 million to EUR 3 billion.
The new partnership with Industrial Securities and the stake in Aegon Industrial FMC represent an excellent opportunity for Aegon in entering the fast-growing asset management market in China. Expanding into the asset management business will broaden Aegon's presence in the Chinese market. To support Aegon Industrial FMC's ambition to become a leading fund manager in China, Aegon will contribute its longstanding and broad-based expertise in asset management, including investment skills, innovative product development and risk management. Furthermore, Aegon Industrial FMC will support Aegon's entry into the Chinese pension business.
"Asia is an essential pillar of Aegon's international growth strategy, as demonstrated by our continued investment in greater China, and in our newest markets of India and Japan", said Alexander Wynaendts, Chief Operating Officer of Aegon N.V. "We welcome this opportunity to further expand in this fast growing market and look forward to combining our expertise with the excellent management capabilities of Industrial Securities."
"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.
*) As of March 31, 2008
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 Industial 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.