Aegon Asset Management AUM down €76bn in H2

Aegon Asset Management has reported a 55% decline in profits before tax in Q2 2022 compared to the same period last year, as volatile equity markets takes its toll.

Year-to-date, the firm's profit are down 33% totalling €94m, a decrease from €141m this time last year, while AUM decreased by €76bn year-on-year, now standing at €315bn.

According to these half-yearly results, this was due to "unfavourable market movements and a transfer of €49 billion assets under management which reflects the completion of the divestment of LBPAM's 45% stake in Ostrum AM."

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In the same report, the Aegon CEO Lard Friese expanded on the turbulence markets have experienced since the start of the year, commenting that the first six months of the year were "one of the most challenging periods for investors with equity markets experiencing their worst start of the year in over five decades".

Friese backed the firm's performance though, adding that despite the volatility from the central banks' policies on inflation and the war in Ukraine "we performed well, a testament to the strength of our strategy".

The CEO also announced that the group was increasing its cumulative free cash flow expectations for the year: "Looking ahead, considering the active management of our balance sheet and our overall transformation progress, we are comfortable increasing our expectations for cumulative free cash flow over the period 2021 to 2023 from €1.4 to €1.6bn to at least €2.2bn.

"We also raise our 2022 guidance for operating capital generation from the units from around €1.2bn to around €1.4bn."

The outlook was not all positive though as Friese expected the "uncertainty in financial markets and economic outlook is expected to remain, we will continue to stand by our customers and help them navigate through challenging economic circumstances with our expertise and high level of service.

"I want to thank our colleagues for their continued dedication and I am confident that together we will deliver on our 2023 strategic and financial commitments."