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Aegon investments in own funds confuse investors

  • Staff Reporter
  • 2012-12-03
  • 13:21 (GMT+8)
An Aegon booth at a finance expo in Shanghai. (Photo/CFP)

An Aegon booth at a finance expo in Shanghai. (Photo/CFP)

Shanghai-based Aegon Industrial Fund Management's frenetic back-and-forth investments in its managed funds have again drawn speculation about the firm's intentions, especially given the funds in question are not new and have suffered losses in recent years.

Company insiders at Aegon said all investments at its managed funds stem from broad financial considerations, rather than Aegon's performance forecasts for specific funds.

Financial news website Nbd.com, however, has been unable to obtain an official response to any of the questions and rumors circulating.

Aegon announced in November that the company plans to convert 11 million shares it holds in Industrial Global View Securities to shares in the Industrial Social Responsibility Securities and another 10.6 million shares to Industrial Organic Growth Securities. The conversion would be completed in 15 trading days starting from November 21, the company indicated.

Of the total 21.6 million shares that Aegon holds in Industrial Global View Securities, the company indicated that it has held 8.14 million for more than two years and the remainder for over a year. Aegon manages all of the aforementioned funds.

Prior to this round of share conversion, Aegon has already converted 100 million shares at its own Industrial Convertible Bond Hybrid Securities to Global Vision during the latter fund's portfolio manager Dong Cheng Fei's application for short-term leave in September. The conversion came with the recruitment of a new portfolio manager and attractive dividends. These series of actions have triggered speculation about a potential resignation of Dong. In September, Aegon bought 20 million yuan (US$3.2 million) in Social Responsibility and Organic Growth shares.

Aegon has gradually grown its stake in Social Responsibility and Organic Growth over the past three years. The company made share purchases in the former and four in the latter during this period

More inter-fund conversion is planned, says Aegon. The company will convert all of its equity in Industrial CSI 300 Enhanced Index Fund, Industrial Trend Investment Hybrid Securities, and Industrial Herun Structured Equity Securities to Industrial Asset-light Equity Fund and Industrial Green Investment Securities. The conversions are estimated to involve one hundred million shares.

The investment again draws speculation about the performance of Social Responsibility and Organic Growth. According to Nbd.com, these two funds have each accumulated losses of 20% and more than 10% over the past three years. Global View, meanwhile, has registered a fall of 14%.

According to Aegon's website, it currently manages a total of eight funds.

 

Reference:

Dong Cheng Fei  董承非

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