Aegon’s UK adviser platform has reduced its outflows to £53m for the third quarter – down 87% from the same quarter last year when it saw £420m in outflows.
The figure is also an improvement on the previous quarter which saw net outflows of £78m.
Aegon has also been working hard to cut costs in line with its wider group target as it struggles to return to profitability.
Platform expenses also fell by 13% year-on-year to 21 bps. The expenses were the same as reported in Q2.
Aegon’s UK adviser platform was beset by technical problems after Aegon merged its in-house platform with Cofunds in 2018. It has faced ongoing struggles with outflows ever since.
The firm has invested heavily in its platform proposition over the past year, including adding a SIPP to one of its platforms and adding more discretionary fund managers.
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Net outflows for the year-to-date now stand at £172m, in comparison with the £785m of net outflows reported at this point in 2020.
However, any gains in retail deposits were more than offset by the platform taking a hit with high net outflows from workplace clients.
Net outflows from workplace clients for the platform rose to £405m, in comparison to the over £1bn net inflows seen in Q2. Aegon said this fall was mainly driven by the termination of a large, low-margin investment-only scheme.
Assets under administration for Aegon UK remained at £200bn.
The Aegon group has been facing a tough time in terms of financial results. For the third quarter the group reported a £51m loss and a 16% decrease in its operating result year-on-year.
The insurance, pensions and platform provider said high claims in the US more than offset increased fees from higher equity markets and any positive contribution from business growth.
The Aegon group as a whole remains on track to deliver its target of £341m in expense savings by the end of 2023.
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