Aegon adds climate corporate bond fund
Aegon Asset Management has launched an Investment Grade Climate Transition fund co-managed by Rory Sandilands (pictured), Alexander Pelteshki and Kenneth Ward.
The fund will invest in global investment grade corporate bonds from companies with credible, actionable decarbonisation plans the team has found throughputs proprietary climate transition research. The strategy targets a 50% reduction in carbon footprint by 2030 and aims for portfolio net-zero alignment by 2040. It also has flexibility to include select high yield bonds and cash in the portfolio.
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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.
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.
“The current market environment – characterised by elevated corporate bond yields, resilient corporate fundamentals, and a supportive rates cycle – offers a compelling opportunity for investment grade investors. At the same time, the need for credible climate action has never been greater. With our proprietary climate transition research, disciplined security selection, and proven track record, we believe the fund is well-positioned to deliver resilient, risk-adjusted returns while supporting the transition to a low-carbon economy.”