Fortis Investment Management NV and CIT Finance Investment bank are to establish a Russian asset management joint venture: CIT Fortis Investment Management.

The aim of the joint venture is to offer both Russian and international clients investment management products in Russia and the CIS markets. Through CIT Fortis Investments, the partners will combine their interests and activities in the above-mentioned markets.

AO CIT Finance, a Kazakhstan-based asset management company and subsidiary of CIT Finance Asset Management Company is part of the agreement.

Fortis Investments and CIT Finance will own equal shares in the joint venture and will co-manage the company, which will have offices in Moscow and St Petersburg.

Vladimir Kirillov, CEO, and Vladimir Tsuprov, CIO of CIT Finance Asset Management Company will remain as CEO and CIO respectively of the joint venture. Christian Fendt, Director EEMEA (Eastern Europe, Middle East & Africa), Fortis Investments, will become COO of the joint venture, relocating to St Petersburg.

The joint venture is expected to be completed by the end of 2006. It will initially consist of 55 employees.

Patrick Van de Steen, Managing Director of Fortis Investments and Vice-Chairman of the joint venture said: 'We are delighted to set up this venture with CIT Finance. Combining Fortis Investments' global investments infrastructure, sales reach and experience gained with its Chinese joint venture, together with CIT Finance's proven Russian expertise and brand recognition means that CIT Fortis Investments will establish itself immediately as a leading Russian asset manager.'

He added: 'Through CIT Fortis Investments, we can capture the nascent affluent investor class in Russia as well as develop the potential of Russia and the CIS as a new asset class for international investors'.

Alexander Vinokurov, Chairman of CIT Finance Investment Bank stated: 'When we created our asset management company back in 2002 we set ourselves very ambitious targets which we now feel we have secured with this joint venture.
Looking forward, we see the future of Russian asset management in globalisation, where clients have the choice of a global product offering and a range of quality, management services. We are establishing the partnership with Fortis Investments because we see asset management as one of the key businesses for CIT Finance and a joint venture as the right way to achieve international exposure'.

Vladimir Kirillov, CEO of CIT Finance Asset Management Company said:  The opportunities the cooperation offers: increased credibility, team strengthening, a broader product range and innovation across all levels of the investment management process will afford us serious competitive advantages and enable us to deliver added value to clients'.

The joint venture will focus on introducing international best practice, systems and processes, launching global products for investments in Russia and offering new local and international products to Russian clients.

Background notes: CIT Finance Asset Management Company is a leading Russian asset manager and part of the CIT Finance Group. With more then RUR 13.5 billion (USD 500 million) of assets under management, the company has the largest mutual fund range in Russia, consisting of 20 funds and more than 27,000 shareholder accounts. The distribution network for these mutual funds includes more then 350 sale points throughout Russia.

The company's offering also includes segregated account management across all the main asset classes and the management of pension savings and the savings of the state military mortgage system.

CIT Finance is an independent Russian investment bank and a market leader in securities, investment management and advisory services to corporations, financial institutions and individuals. With more then 25 offices in Russia and Eastern Europe, CIT Finance provides a wide range of services which include trading and underwriting of securities and derivatives, M&A advisory, asset management, brokerage, wealth management and mortgage banking services.

Fortis Investments is a multi-centre, multi-product asset management company. As the asset manager of Fortis, Fortis Investments has EUR 111 billion of assets under management.

       

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