AEGON The Netherlands and Global Transaction Services, a
business of Citigroup Corporate and Investment Banking, announced
today that they have signed an agreement to create and implement a
first to market flexible investment platform that will facilitate the
use of a range of asset strategies, including portable alpha, through
pooling. The platform is the first full service solution to support
the process and administrative needs of investors, institutions, asset
managers and pension funds who operate in multiple jurisdictions
throughout Europe.
The solution enables each participating entity to fulfill the
different tax, accounting, regulatory requirements and reporting
obligations of the various countries and jurisdictions where its
investors reside. The platform also offers the capacity to achieve
higher investment performance through the ability to invest in a wide
range of asset classes and investment styles. It is expected that the
platform will be fully operational by the third quarter of 2007.
As part of the agreement, AEGON's investment management affiliates
in The Netherlands will outsource their back and middle office
activities to Citigroup (NYSE:C). The transaction represents a total
of EUR 40B assets under custody with Citigroup providing funds
administration, performance management, transition management, a range
of customized equity-related solutions and post-trade compliance
functions in addition to custody, securities lending, and fund
accounting. It is anticipated that the migration of current funds will
take place in the second quarter of 2007.
Erik van Houwelingen, boardmember of AEGON The Netherlands, is
proud of the platform currently being developed. "In Citigroup we have
found a partner that understands our desire to come up with a highly
innovative product. The platform's possibilities are almost infinite
and supports AEGON's strategy to provide our clients with innovative
asset management solutions efficiently and effectively, allowing our
clients to benefit from the product and scale benefits that can be
achieved."
Francesco Vanni d'Archirafi, Chief Executive Officer of Citigroup
Global Transaction Services for Europe, Middle East and Africa, said,
"Citigroup is thrilled to be extending our relationship with AEGON to
create this innovative platform. This agreement further demonstrates
our commitment to create first to market opportunities and to leverage
our technology and scale for the long-term benefit of our clients."
Notes to Editors
AEGON
AEGON The Netherlands is part of AEGON N.V. The Group,
headquartered in The Hague, is one of the world's largest life
insurance and pension companies, and a strong provider of investment
products. AEGON's three major markets are the United States, the
Netherlands and the United Kingdom. In addition, the Group is present
in a number of other countries including Canada, China, Czech
Republic, Hungary, Poland, Slovakia, Spain and Taiwan. In 2005
revenues of the Group amounted to 30 billion euro, of which 20% was
earned in the Netherlands.
Citigroup Corporate and Investment Banking
Citigroup Corporate and Investment Banking is the most complete
financial partner to corporations, financial institutions,
institutional investors and governments in the world. As a global
leader in banking, capital markets, and transaction services, with a
presence in many countries dating back more than 100 years, Citigroup
Corporate and Investment Banking enables clients to achieve their
strategic financial objectives by providing them with cutting-edge
ideas, best-in-class products and solutions, and unparalleled access
to capital and liquidity.
Citigroup
Citigroup (NYSE:C), the leading global financial services company
has some 200 million customer accounts and does business in more than
100 countries, providing consumers, corporations, governments and
institutions with a broad range of financial products and services,
including consumer banking and credit, corporate and investment
banking, securities brokerage, and wealth management. Major brand
names under Citigroup's trademark red umbrella include Citibank,
CitiFinancial, Primerica, Smith Barney and Banamex. Additional
information may be found at www.citigroup.com
