Assets of KIT Fortis Investments increased by EUR 640 m

St.Petersburg, 1.04.08. Total AUM of KIT Fortis Investments, an international asset management company, has reached around RUR 60 bln (EUR 1.7). The growth of assets resulted from the transfer to the company of EUR 640 mln, made up of a number of international funds and segregated accounts registered in the Nordics. The assets were transferred under the terms of the acquisition by one of KIT Fortis Investments’s main shareholders, Fortis Investments, of ABN AMRO Asset Management (AAAM).

“The decision to transfer the AAAM assets to KIT Fortis Investments was based on the success of the first joint initiative between KIT and Fortis Investments, namely the launching of the Fortis L Fund Equity Russia, a Russian equity fund for foreign investors. The fact that a large institutional client deposited EUR 150 m in the funds after the decision to transfer them to our company speaks for itself”, commented Vladimir Kirillov, Chief Executive Officer of KIT Fortis Investments.

The transfer of assets to the Russian management team is fully aligned to the main principle of Fortis Investments investment strategy – i.e. the management team should operate in the home market of the assets in question. “We believe that given our in depth knowledge of the Russian market and issuers the performance of the AAAM funds will confirm the validity of this decision and will furthermore underline the potential for cooperation with other international investors”, stated Vladimir Tsuprov, Chief Investment Officer of KIT Fortis Investments.
Following the integration with AAAM, Fortis Investments’ assets will rise to EUR 245 bln. With a global network across some 33 countries throughout Europe, Asia and the Americas, the integrated company will have around 40 dedicated investment centres and some 600 investment professionals. The combined entity will be dominant in Europe, have an enhanced position in the Americas and will command a substantial presence in the Asia region.

Fortis Investments has also recently announced the signing of a Memorandum of Understanding (“MOU”) with China’s second largest insurer, Ping An Insurance (Group) Company of China, Ltd. (“Ping An”), to form a global asset management partnership. Ping An intends to acquire a 50% equity stake (minus one share), in Fortis Investments, with Fortis retaining the other 50%. This unique asset management partnership will provide unrivalled access to the fast-growing Chinese and Asian markets and would see Fortis Investments established as a true global asset manager with a greater profit growth potential in the future. The partnership will see Fortis Investments renamed Fortis Ping An Investments. The name KIT Fortis Investments will not change.

“We are convinced that the recent developments at Fortis investments will only serve to enhance our company’s reputation and maximize our position in the market”, adds Vladimir Kirillov. “This extension of our shareholder’s business increases their financial stability and will enhance the brand of KIT Fortis Investments. We have become part of a powerful international company and we will work to use this to our advantage — for further dynamic development, gaining global experience, broadening our product range and improving our quality of service. We also anticipate increased interest from international investors, in particular Asian clients, which will help us in our plans for further development and the strengthening of international institutional sales”.

KIT Fortis Investments (www.kfim.com)

KIT Fortis Investments (JSC) is one of the largest asset management companies in Russia, and is a joint-venture between two leading financial brands in Russia and Europe: KIT Finance Investment Bank and Fortis Investments. KIT Fortis Investments has the broadest range of mutual funds in Russia including sector and mid cap funds, that are managed by one of the largest investment teams in Russia. The fund managers have been working together successfully for many years and are supported by a dedicated buy-side research team. KIT Fortis Investments has around EUR 1,7 bn. of assets under management, more than 70,000 retail clients, 60 distribution partners and 650 points of sale across Russia. In 2007, KIT Fortis Investments was assigned a AAA rating — the highest safety rating by the Russian National Rating Agency (NRA). The company also manages the assets of national pension funds, pension accruals and housing accruals of the military, assets of legal bodies and individuals. KIT Fortis Investment is actively developing its business in Russia and other CIS countries. In 2006 it opened a subsidiary in Almaty, Kazakhstan and in 2007, the first mutual fund was launched in Kazakhstan that invests in Kazakhstan equities and bonds “KIT Fortis – Balanced Conservative Kazakhstan”.

Fortis Investments (www.fortisinvestments.com)

Fortis Investments is a multi-centre, multi-product global asset management company. Following the integration with the asset management activities of ABN AMRO Asset Management, Fortis Investments will have proforma assets under management of EUR 245 billion* with over 50% of its revenues generated by third party clients. With dominance and strength in Europe, a substantial position in Asia and an enlarged presence in the Americas, the company has a true global presence, with both sales offices and some 40 dedicated investment centres in Europe, Asia and the USA. Fortis Investments offers international investment solutions, while meeting the requirements and needs of local investors, both institutional and wholesale retail. Employees in the combined entity will number over 2,000 of whom around 600 will be dedicated investment professionals. Activities range from institutional portfolio management to the development and management of mutual funds, such as the Fortis L Fund, which will have some 160 sub-funds. Fortis Investments is a client-driven organisation using a disciplined investment process to satisfy its clients’ varied needs.
* All proforma figures per April 1st, 2008

Ping An is the first integrated financial services conglomerate in China that blends its core insurance operations into securities brokerage, commercial banking, asset management and enterprise annuities to create a highly efficient and diversified business profile. It was established in 1988 and headquartered in Shenzhen, China, and has about 244,000 sales agents and more than 50,000 full-time employees as of 30 June 2007. Market capitalization is EUR 44.7 billion as of February 29, 2008. Ping An Life is the second largest life insurance company and Ping An Property & Casualty is the third largest P&C insurance company in China.
Fortis is an international financial services provider engaged in banking and insurance. With a market capitalisation of EUR 32.3 billion (29/02/2008), Fortis ranks among the 15 largest financial institutions in Europe. Sound solvency position, presence in over 50 countries and dedicated, professional workforce of 65,000 enable Fortis to combine global strength with local flexibility and provide clients with optimum support.