Aegon Asset Management has launched an investment grade climate transition fund, designed 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.
Leveraging proprietary climate transition research, the fund focuses on companies with credible, actionable decarbonization plans.
This is complemented by a broader ESG assessment to help mitigate potential risks. The strategy targets a 30% reduction in carbon footprint by 2029 and aims for portfolio net-zero alignment by 2040.
Co-managed by Rory Sandilands, Alexander Pelteshki and Kenneth Ward, the fund is supported by Aegon AM’s global credit research platform of 25 professionals and a dedicated team of 16 responsible investment experts.
Sandilands said: “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.”
