Aegon Ltd. · EURONEXT:AGN
Aegon — Aegon Asset Management — Aegon Analyst & Investor Conference 2016
21 slides from Aegon's conference presentation, Jan 13, 2016
Slide 1: Aegon Asset Management
Aegon Asset Management Sarah Russell Sander Maatman CEO CFO Analyst & Investor Conference - London - January 13, 2016
Slide 2: Today's storyline
Today’s storyline Achievements • Created a successful asset manager since 2010 • Strong growth of attractive third party business • Leverage fixed income and multi-asset capabilities and optimize product development Priorities going forward • Develop and launch global and regional products, utilize
Slide 3: Achievements since 2010
Achievements since 2010 3
Slide 4: Overview of Aegon Asset Management
Overview of Aegon Asset Management Active asset manager for different clients segments • Institutional • Wholesale • Aegon Global provider of Solutions & Strategies • Fixed Income • Multi Asset • Balance sheet solutions • Equities • Real Estate USA Europe Asia Dedicated investment professionals • Ba
Slide 5: Developed into successful asset manager
Developed into successful asset manager 2009 2010 2011 2011 2011 2014 2015 Formed from US, NL AAM Central & AAM Spain and Global credit Kames Capital Global house view Strategic partnership and UK divisions Eastern Europe TKPi added research platform brand launch implemented with LBPAM including AIF
Slide 6: Strategic partnerships opening up markets
Strategic partnerships opening up markets • Leveraging investment capabilities and expertise through partnerships • Entered major markets with strong local partners • Accelerated earnings growth by adding scale and distribution power China France At a glance At a glance • Joint venture established i
Slide 7: Third party business and investment outperformance drive growth
Third party business and investment outperformance drive growth Asset flow AuM split (in EUR billion) 9% >10% 36% 39% CAGR 2010 2015 36% 55% 342 YTD 43 25% 82 General account Affiliates Third party 193 38 43 AuM split by asset class 32 3% 22 20 1% 1% 6% 5% 6% 13% 18% 2015 2010 YTD Closing Netf
Slide 8: Profitable third party business drives earnings growth
Profitable third party business drives earnings growth Earnings development by business line and by region (in EUR million) • Tripled third party netflows between 2012 132 132 and 2015 NL • Strong growth mainly driven by third party UK business leveraging scale and capabilities from general account
Slide 9: Serving customers with strong performing investment solutions
Serving customers with strong performing investment solutions Relative performance vs benchmark** as of November 30, 2015 (%) Key products / funds* 1 year 3 years 5 years NL Dutch Mortgage Fund 6.23 - - NL Aegon Strategic Allocation Fund 75-25 0.63 1.18 1.09 NL Aegon European Credit Fund 0.38 0.69 0
Slide 10: Significant progress has been made in changing the company
Significant progress has been made in changing the company Global Distribution Asset Allocation and Solutions • Leveraging key capabilities and • New integrated house view developed and implemented strengthened compliance functions leading to improved communication • Constant development of state of
Slide 11: Continue to improve Responsible Investments (RI) approach
Continue to improve Responsible Investments (RI) approach 2011: 2015: Approach going forward: • Global RI policy • New governance • RI team works closely with all adopted and set structure, ensuring investment centers to develop and up RI–Committee RI is embedded in implement RI policies business pr
Slide 12: Priorities going forward
Priorities going forward 12
Slide 13: Markets grow but face changes
Markets grow but face changes Active markets drive market growth 5-Year new active net new flows ex-China (cumulative, in USD trillion, 2014-2018E) • Active solutions remain attractive: 4.1 - Strong growth in benchmark agnostic products - Flows largely driven by multi asset strategies, real estate /
Slide 14: Accelerate and improve execution to realize growth
Accelerate and improve execution to realize growth • Thought leadership in asset • Optimize product development allocation and solutions offering across units best breed products to our • Focus on technology convergence, customers data and centers of excellence • Develop and distribute global • Impr
Slide 15: Initiatives are well underway
Initiatives are well underway • Leveraging fixed • Expanding reach into • Focus on target • Implementing income and Multi selected new operating model engagement strategy Asset capabilities markets • Enhancing data • Finalizing refined across markets strategy recruitment strategy • Implement La • Ne
Slide 16: Investing for growth will lead to greater efficiency
Investing for growth will lead to greater efficiency • Cost / Income ratio expected to increase in 2016 as a result of investments for growth leading to a higher level of efficiency going forward • Focus on higher margin third party business leads to a temporary rise in Cost / AuM ratio but creates
Slide 17: Asset Management adds strategic and financial benefits
Asset Management adds strategic and financial benefits Underlying earnings before tax Benefits of growing 2015 YTD Aegon Asset Management • Conversion rate of net income to cash nearly 8% 100% AAM • Very limited balance sheet risk incurred EUR • Revenue not as sensitive to low interest rate 1.5 bn e
Slide 18: 2018 targets
2018 targets 18
Slide 19: Continuing strong growth in Asset Management
Continuing strong growth in Asset Management Management actions Delivering results Operational excellence • 20% increase in underlying • Optimize product development across units earnings by 2018 • Focus on technology convergence, data and • Third party assets under centers of excellence management
Slide 20: For questions please contact Investor Relations
For questions please contact Investor Relations +31 70 344 8305 [email protected] P.O.Box 85 2501 CB The Hague The Netherlands
Slide 21: Disclaimer
Disclaimer Cautionary note regarding non-IFRS measures This document includes the following non-IFRS financial measures: underlying earnings before tax, income tax and income before tax. These non-IFRS measures are calculated by consolidating on a proportionate basis Aegon’s joint ventures and assoc
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