AEGON and Industrial Securities Agree on Asset Management Joint Venture

AEGON and Industrial Securities Agree on Asset Management Joint Venture

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.