Acquisition of Aegon Capital Management Inc. and Aegon Fund Management Inc.

Foresters^TM President and Chief Executive Officer Anthony M. Garcia today announced that Foresters has entered into a definitive agreement with Proj Fox Acquisition Inc. to acquire 100 per cent of the shares of Aegon Capital Management Inc. ("ACM") and Aegon Fund Management Inc. ("AFM"). The transaction, which is subject to Canadian regulatory approvals, is expected to close in May 2016. Through this transaction, Foresters will acquire approximately CAD $10 billion in Canadian fixed income and equity assets bringing its total amount of funds under management to CAD $44 billion.

When the transaction is complete, ACM and AFM will be known respectively as Foresters Asset Management Inc. (FAM) and Foresters Financial Investment Management Company of Canada (FFIMCO). Bill Lipkus, President and CEO, Foresters Financial Holding Company, will oversee the management of both entities.

Just as our 2011 acquisition of First Investors (now Foresters Financial Holding Company) expanded our retail investment management footprint in the U.S., we are confident that this acquisition will yield similar results for our Canadian business.

My team and I will begin work immediately to identify the financial solutions, products and services we can leverage to meet the changing needs of our members, customers and distribution partners across Canada.

The acquisition significantly strengthens our competitive position and is a clear signal that Foresters intends to drive sustained, profitable growth in the Canadian marketplace.

Cheryl Neal
Executive Vice President & President, North America Life & Annuity Division