AEGON The Netherlands and Citigroup Create First to Market Flexible Investment Platform
Innovative Platform To Facilitate Portable Alpha Strategies Across a Range of Asset Classes Through Pooling
London, The Hague — 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. The transaction represents a total of £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."
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
Citigroup Corporate and Investment Banking
Our Corporate and Investment Banking group achieves the extraordinary for our clients around the world. No financial institution is more committed to understanding and advancing the goals of its clients – our diverse and talented staff in some 100 countries advises companies, governments, and institutional investors on the best way to realize their strategic objectives. We create solutions for and provide the broadest possible capital and market access to thousands of issuer and investor clients, and no institution better executes the increasingly complex payment and cash management solutions required in today's global economy. Core business lines under Citigroup Corporate and Investment Banking include Global Capital Markets, Global Banking and Global Transaction Services.