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Aegon To Renew Its Asset Management Structure AEGON Nederland will separate its European and Asian share portfolios into an alpha and a bèta portfolio. Effective from the second quarter of 2008, two new subsidiaries will be responsible for the management of these portfolios. This way AEGON expects to generate additional returns. The responsibility for the total portfolio will remain with AEGON. AEGON Nederland has already separated its US equity portfolio. Alpha/bèta separation Separating an investment portfolio into an alpha and bèta part also produces separate returns: the market return (bèta) and the excess return (alpha) a portfolio manager can realise using his skills. By managing the parts separately from one another, better risk-return ratios are possible. This way, more sources of value added will be available and a greater focus can be created in the portfolio. Separating the US share portfolio has created an increase of a yearly average of the total return of 2.5% without any risk increase. New subsidiaries The companies that will manage the alpha portfolios for AEGON are: Pelargos Capital B.V. (Asian equity) and Saemor Capital B.V. (European equity). AEGON Nederland N.V. is a majority shareholder in both companies. The bèta portfolio will be managed by AEGON. AEGON will join the alpha and bèta portfolios and will remain responsible for the aggregate portfolio. The subsidiaries are affiliated with the flexible investment platform that AEGON is building with Citi, as announced in the autumn of 2006. Pelargos and Saemor funds are also available for other providers. Excess return Eric Rutten, CEO AEGON Asset Management Nederland, emphasises the importance of achieving excess returns: “In an environment where returns are lower than they were in the past, excess returns are essential. We want to generate as much as possible return for our clients by creating innovative opportunities and by continuing to respond to market developments. Innovation not only in our investment strategy, but also in creating the right environment that offers room for a focused approach and entrepreneurship. Obviously, the right team of experts is crucial in this context: portfolio managers who are able to assess market opportunities, create a vision and generate excess returns (alpha). In Sven Bouman (CEO/CIO of Saemor) and Roelof Salomons (CEO of Pelargos) we have found two entrepreneurial investors, who will build on the success of our experienced teams with impressive personal track records.” Rutten adds to this: “By now anticipating the trend of alpha and bèta separation, AEGON will be able to serve the market even better. And AEGON likes to be ahead of any trend.” Return to today's INSURANCE NEWSCAST
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