The asset management arm of Aegon has signed a memorandum of understanding (MOU) with the Shanghai Lujiazui Administration Bureau, a free trade zone in China, in a bid to support its build-up of a global asset management centre.
By signing the MOU, Aegon Asset Management (AAM) has taken its first steps to establishing a wholly foreign-owned enterprise (WFOE) in Shanghai.
This will allow it to sell offshore investment products and services to the domestic institutions and high net worth investors in China.
Martin Davis, head of Aegon Asset Management Europe said: “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.”
Growing its China business
AAM is looking to bolster its business in China with the establishment of the WFOE.
The firm already has a Chinese joint venture Aegon Industrial Fund Management Company (AIFMC).
Aegon also entered into partnership with Industrial Securities in 2008 to provide fund products and asset management services to the local public domestic market.
The WFOE aims to complement AIFMC’s distribution strategy and investment capabilities.
