Aegon Poland has received approval by the Polish Financial Supervision Authority to take over the management of the Nordea open pension fund (OFE) between September 1 and November 17, 2017.
Update to original announcement June 21, 2016 (see below)
As a result of the merger of Aegon open pension fund (OFE) and Nordea OFE, members of the pension funds will benefit from a reduction in asset management fees due to its higher total value.
By end of June 2017, Aegon OFE had 889,000 members and managed net assets of PLN 6.99 billion (approx. EUR 1.6 billion), while Nordea OFE had 979,000 members and net assets of PLN 8.14 billion (approx. EUR 1.9 billion).
Fourth largest OFE in Poland
Taking into account the current number of members of both funds, the fund that will be created from the merger will be the fourth largest open pension fund on the Polish OFE market, both in terms of the number of members and the value of assets.
This will provide improved investment opportunities for the fund, in particular the ability to make larger investments with less risk. The merger will also make it possible to strengthen the investment team and to combine the experience and exchange best practice of investment teams from both companies.
Original Announcement - June 21, 2016
Aegon Poland has signed a major agreement with Nordic financial services firm, Nordea. The deal, subject to regulatory approval, will bring economies of scale and further improve quality of service to customers.
As Aegon Poland celebrates its 10 year anniversary, agreement was reached to take over the management of Nordea's Polish Pillar II pension fund. The deal will make Aegon Poland the fourth largest pension fund in the country.
As of April 2016, Aegon Poland's pension fund Aegon PTE S.A. had assets under management of PNL 5.9 billion (€1.3 billion) and 919,000 members. Following the merger, the fund will grow to PLN 12.4 billion (€2.79 billion).
"The transaction will help us further improve the quality of services to our customers, and strengthen our market position," says Michał Biedzki, the Chairman of the Supervisory Board of Aegon PTE S.A.
Economies of scale
During the transition Aegon and Nordea will focus on optimizing the combined fund's investment capability and providing customers with stable and attractive investment results.
This latest transaction clearly supports Aegon's ongoing strategy in key areas. In addition to divesting remaining non-core operations over recent years, it is Aegon's ambition to further grow distribution and scale in core activities, including pension administration and asset management.