Aegon Asset Management became a separate reporting segment for the first time in 2016, a reflection of its success and how much it has grown in recent years.
Aegon Asset Management, with headquarters in The Hague, the Netherlands, uses its investment management expertise to help people achieve a lifetime of financial security.
Aegon Asset Management aim to continue the strong growth by developing and distributing global and regional strategies, deepening its presence in existing markets, and furthering its geographical expansion. As part of the strategy, new sales force channels were launched in Denmark and Germany, focusing on the Dutch Mortgage Fund and Kames Capital’s Global funds.
Aegon Asset Management also enlarged its European strategies offering with a Government Related Investment Fund. The fixed income fund invests in private placements and bonds, predominantly from European public entities. The fund also aims to invest more than 50% of the fund assets in Sustainable and Responsible Investments-oriented assets.
2016 was a milestone year which marked the increased importance of Asset Management.Sarah Russell, CEO Aegon Asset Management
"I am proud of the wide scope and quantity of accomplishments that we managed to achieve this year. Aegon Asset Management has become a stand-alone reporting unit within the Aegon Group. This is an important milestone that marks the increased importance of asset management in the Aegon Group.
"Our strategy to offer the best products from across our locations in our chosen markets has borne fruit in 2016. The preparations to market a select number of US strategies in Europe is in a very advanced state and will become a reality in 2017. We successfully entered the German institutional market and strengthened our Asia presence. In France, La Banque Postale Asset Management’s multi-asset retail position continues to attract strong gross inflows.
"The cooperation between Multi Asset Teams at Aegon Asset Management the Netherlands and Kames Capital intensified over the year. Despite a volatile year politically and economically, we have worked hard to deliver our promises to our stakeholders in 2016."
- Sarah Russell, CEO Aegon Asset Management
In 2016, we were the first company to receive approval from the Dutch Central Bank (DNB) to launch ‘Stap’, a General Pension Fund (APF) in the Netherlands. The independent pension pooling vehicle enables separate financial administration for multiple pension plans from multiple employers. This means smaller pension schemes can benefit from economies of scale and comply with complex pension regulations, meaning that a greater percentage of the employees’ pension premium is invested. The fiduciary investments for Stap are carried out by TKP Investments, a subsidiary of Aegon Asset Management.
Approximately 1,500 professionals work for Aegon Asset Management worldwide.
In 2016, total earnings in Aegon Asset Management were €149 million.
Aegon Asset Management had €130 billion third-party assets under management at end of 2016 (of a total €332 billion).
The UK’s decision to leave the EU had a dramatic effect on daily traded UK commercial property funds in the weeks after the Brexit vote. The illiquid nature of the commercial property assets held in these funds meant that they were at risk of not being able to meet all redemption requests if enough investors decided to leave at once. About 15% of investors across all these funds served redemption notices, causing six out of ten funds in the market to suspend trading to allow time to raise cash by selling properties to meet redemptions. Kames Capital was one of only three funds to stay open for business.
A bull run
Over the past eight years, Aegon Asset Management’s Shanghai-based Chinese joint venture, Aegon Industrial Fund Management Company (AIFMC), has been a six-time winner of the Golden Bull Fund Manager Company Award.
Our global digital ambition and strategic objective to empower employees, were brought together to good effect by having managers complete a ‘People Managers Program’ focusing on becoming more effective leaders. The program aims for management to have the knowledge, skills, and confidence to ensure the high performance of their teams.