Competition in main locations Overview of business lines Organizational structure  Overview of Aegon Asset Management  83 Aegon Asset Management was formed in October 2009, and brings together  Aegon’s asset management businesses from around the world. Aegon reports  results from Aegon Asset Management through the New Markets reporting line.  Aegon Asset Management has three main brands; Aegon Asset Management has offices in the Netherlands, the  United Kingdom, the United States, Canada, Central & Eastern  Europe, Spain, Hong Kong and mainland China.  The main operating entities are Aegon USA Investment  Management LLC, Aegon USA Realty Advisors LLC, Aegon  Investment Management B.V. (the Netherlands), TKP Investments  B.V. (the Netherlands), Kames Capital plc (United Kingdom)  and Aegon Industrial Fund Management Company Ltd (China,  49% owned).  Aegon Asset Management is managed by a global board  representing a number of global functions and local  leadership roles.  Aegon Asset Management manages significant funds on behalf  of other Aegon insurance units. Asset inflows are derived from  insurance company sales invested into the general account or  insurance funds, depending on the product sold. Aegon Asset  Management receives funds either in a ‘closed architecture’  structure (the insurance affiliate seller delegates funds to Aegon  Asset Management) or through competition with external asset  managers in an ‘open architecture’ structure (the insurance  affiliate seller may choose to delegate funds to an external fund  manager other than Aegon Asset Management). Aegon Asset  Management also services third party retail and institutional  customers investing through collective investment schemes or  segregated mandates. Aegon Asset Management competes with other asset  management companies on insurance platforms to acquire  business from open-architecture Aegon insurance units and third  parties. Aegon Asset Management’s competitors include global  asset managers, which either belong to a financial conglomerate  or are stand-alone, and local specialists in the countries where it  is active. Generally, there are different competitors for different  types of asset class or different styles of management.  For  third party  business, product design and distribution are  typically controlled by Aegon Asset Management (whereas  for general account and affiliate sales business these are  controlled by the insurance companies). Some third party  business is sourced through co-operation arrangements with  insurance affiliates. The retail businesses typically sell collective  investment vehicles (mutual funds) to the public through  wholesale distributors and independent intermediaries. The  main asset classes are fixed income and equities, and the funds  are usually managed against a benchmark or peer group target.  The institutional businesses typically sell tailored services to  large corporations or pension funds. They employ a full range  of asset classes and manage the funds against objectives,  targets and risk profiles agreed with clients. Both absolute and  relative return products are offered. Aegon Asset Management  distributes these services internationally.  Affiliate sales  business generally consists of funds sold by  affiliate insurers where the policyholder return is determined  by the investment return of the fund, so that the risk is for the  policyholder rather than Aegon. The funds have various legal  structures, and are usually managed against a benchmark or  peer group target. The main asset classes include fixed income,  equities, real estate, mortgage loans and alternatives. In the  United States and the United Kingdom, a significant element of  affiliate sales is conducted on an open architecture basis. General account  business consists of funds held on the balance  sheet of Aegon insurance companies to meet policyholder  liabilities, typically where the insurer has given the policyholder  a guarantee. These assets are managed to match the insurers’  liabilities. As a rule, general account assets are managed in  a closed architecture structure, and the main asset classes are  fixed income and mortgage loans. Aegon Asset Management  also manages the general account derivatives book.  ■ Aegon Asset Management  specializes in providing fixed  income, real estate loan and asset allocation solutions to  a range of customers. It benefits from long-standing  experience in managing these asset classes for Aegon. ■ Kames Capital  is a United Kingdom based asset management  company providing fixed income, equities, real estate and  multi-asset solutions to United Kingdom and international  clients. ■ TKPi  is a Netherlands-based fiduciary manager recognized for  its manager selection and tailored advice to the Dutch  pension market.