Under the terms of the partnership, Aegon will purchase a 49% share in Industrial Fund Management Company (IFMC), a Chinese mutual fund manager with approximately E1.7 billion in assets under management. Meanwhile, Industrial Securities will hold onto the remaining 51% stake in IFMC. The transaction is subject to approval from the China Securities Regulatory Commission.
The agreement offers a great opportunity for Aegon to enter China’s asset management market and further strengthens the group’s long-term commitment to serve the Chinese market.
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. 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.
