ABN AMRO and LÃ¤nsfÃ¶rsÃ¤kringar (LF Insurance Group) have signed an agreement to cooperate in asset management. As from June 2002, ABN AMRO Asset Management will provide day-to-day management for a majority of the investment assets of the LF Insurance Group, providing its expertise and experience to the LF Insurance Group and its 600,000 life insurance customers and about 200,000 fund customers in Sweden. The agreement underlines ABN AMRO?s corporate strategy of further strengthening the retail and asset gathering franchises in Europe.
ABN AMRO is paying EUR 140 mln for the right to manage assets with a total value of EUR 13 bn for ten years. This increases ABN AMRO Asset Managements? global assets under management to EUR 185 bn. In return, ABN AMRO receives a fixed management fee and a variable, performance-based fee depending on the additional investment return delivered to clients. Combined with the existing activities of ABN AMRO Asset Management and ABN AMRO?s Swedish subsidiary Alfred Berg, this cooperation offers attractive scale advantages in core competence areas.
ABN AMRO Asset Management gains access to LF Insurance Group?s distribution network via the 24 LÃ¤nsfÃ¶rsÃ¤kring companies in Sweden. The agreement provides the customers of LF Insurance Group additional access to several international funds under the brand names of ABN AMRO, Banco and Alfred Berg, both for direct fund saving and saving in unit-linked insurance. The LF Insurance Group will exercise ownership responsibility, determine the investment orientation and hold the voting rights of all shares.
(source: ABN AMRO)