Aegon recorded £432mn in net outflows from its retail investment platform in the final quarter of last year, as inflows dropped due in large part to investor caution.
The platform provider briefly returned to net inflows at the beginning of last year, but slipped back into net outflows later in the year. Net outflows have since been climbing.
In Q2 of last year, outflows rose to £89mn following net inflows of £23mn the previous quarter. By Q3, they had jumped to £379mn, before reaching the figure reported today (February 9) of £432mn in Q4.
Aegon's UK chief executive Mike Holliday-Williams told FTAdviser that while clients are still using Aegon as their primary platform, investment sentiment has been down and it's hard to predict when it will pick back up again.
"Isa season is coming up, so this will help with predictions. But the first quarter will be key for the rest of the year," said Holliday-Williams.
"For now, it's not getting any easier for us or our clients."
The UK boss said outflows have remained relatively consistent, but that inflows have been the problem.
"They've [inflows] been coming down because investors are being more cautious," Holliday-Williams explained.
In its quarterly results, Aegon said gross deposits decreased compared with the fourth quarter 2021 following "reduced customer activity" as a result of weak investor sentiment.
Overall, net deposits amounted to £500mn, compared with net deposits of £9.2bn in the fourth quarter of 2021. This figure spans both the retail platform business and Aegon's workplace arm.
Aegon said the main drivers of net deposits last quarter were the workplace and institutional businesses.
The company has gone live with a new digital face to its workplace platform, but advisers are yet to feel the benefit.
Holliday-Williams previously said the new platform face for advisers would be ready by the end of last year.
Today, the UK platform boss said the intention is still to roll it out to advisers, but that his team wants to take it slow.
Overall, Aegon UK's operating income was £175mn, up 11 per cent up - but again, this was largely down to the workplace business.
ruby.hincliffe@ft.com
