Aegon AM Launches New Investment Grade Climate Transition Fund

Aegon Asset Management has launched its Investment Grade Climate Transition Fund, which aims to provide investors with a low-risk and environmentally focused investment option. The fund will focus on companies that are actively working towards a low-carbon future and have a proven track record of reducing their carbon footprint. The fund will be managed by Aegon's experienced team of sustainability-focused investment professionals.

Aegon Asset Management has introduced the Investment Grade Climate Transition Fund, a low-risk investment option focused on environmentally responsible companies. The fund aims to provide investors with a pathway to support the global transition to a low-carbon economy while delivering attractive, risk-adjusted returns.

The fund primarily invests in global investment grade corporate bonds, with flexibility to include select high yield bonds and cash. Its objective is to outperform the Bloomberg Global Aggregate Corporate Index over rolling 36-month periods, net of fees, while aligning with clients’ financial, climate, and ESG goals. This strategy targets a 30% reduction in carbon footprint by 2029 and aims for portfolio net-zero alignment by 2040 [1].

The fund leverages proprietary climate transition research to focus on companies with credible, actionable decarbonization plans. It complements this with a broader ESG assessment to mitigate potential risks. The fund is co-managed by Rory Sandilands, Alexander Pelteshki, and Kenneth Ward, supported by Aegon AM’s global credit research platform of 25 professionals and a dedicated team of 16 responsible investment experts.

Sandilands stated, "The launch of the Aegon Investment Grade Climate Transition Fund draws on our longstanding expertise in investment grade credit and deep commitment to responsible investing. It complements our broader suite of climate-aware solutions and reflects our leadership in aligning fixed income portfolios with net-zero goals."

This new fund offers investors a unique opportunity to align their portfolios with sustainable and responsible investment practices, while also benefiting from potential financial returns.

References:

[1] https://funds-europe.com/aegon-am-launches-climate-transition-fund/