Aegon NV plans entry into mutual funds

Netherlands-based Aegon NV, one of the world's largest listed insurance groups with assets of ¤ 233 billion is entering the Indian mutual fund industry.

It has already set the process in motion by appointing N K Sharma, former chief of IL&FS Mutual Fund, as the head of its soon-to-be launched operations in the country.

In June this year, Aegon had appointed Vimal Bhandari, former executive director with IL&FS as country manager to head its insurance foray in the country.

Sharma, who joined the company from August 2, 2004 said Aegon would work out the Indian strategy soon and file an application with the Securities and Exchange Board of India (Sebi) for starting the mutual fund business.

Sharma will be responsible for all asset management-related activities of the group in India including portfolio management services and investment advisory activities.

Currently operating out of a leading hotel in the city, the company is scouting around for an office location.

The financial services entity is looking around for an Indian partner in the insurance sector, while it may also tie up with someone for its asset management business.

Sources said it might look at acquiring some existing mutual fund in India. Operations are expected to start within a year after all the regulatory approvals are in place.

Incidentally Aegon is largely focussed on life insurance, pensions, savings and investment products. The group is also active in accident and health insurance, general insurance, and has limited banking activities.

Sharma said that in the Indian market, Aegon is also looking at offering pension products in the long term since it has an expertise in this area.

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, Hungary, Spain and Taiwan. The group employees 28,000 people worldwide.

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Set for debut

• Aegon NV is a Dutch insurance group with a worldwide presence
• N K Sharma, a former chief of IL&FS Mutual Fund, will be the pointman of the mutual fund operations
• Financial services conglomerate looking for a local partner to foray into the insurance sector
• Vimal Bhandari, an ex-executive director with IL&FS, named country manager to steer local insurance foray