Aegon Asset Management has become one of a leading group of international asset managers to sign a memorandum of understanding with Shanghai Lujiazui Administration Bureau in China, with a view to jointly support its build-up of a global asset management center.
By signing the MOU with the Shanghai Lujiazui Administration Bureau, AAM has signaled its intention to taking its first steps to establishing a wholly foreign-owned enterprise in Shanghai, which will allow it to sell world class offshore investment products and services to the domestic Chinese institutions and high net worth investors in China.
The move by AAM to establish a WFOE will allow the business to further strengthen and deepen its strategic relationships in the region specifically with its Chinese joint venture Aegon Industrial Fund Management Company Limited ("AIFMC"). Aegon entered into partnership with Industrial Securities in 2008 to provide fund products and asset management services to the local public domestic market. The new WFOE aims to complement AIFMC's distribution strategy and investment capabilities.
The modern skyline of Shanghai Lujiazui
Commenting on the MOU, Martin Davis, head of Aegon Asset Management Europe says: 'As signatories we will be one of an early group of global asset managers able to bring world class investment strategies to the domestic Chinese high net worth and institutional market. As such we are extremely pleased to be working with the Shanghai Lujiazui Administration Bureau to establish this new centre of asset management excellence.'