Aegon Asset Management (AM) has launched a strategy designed to support the global transition to a low-carbon economy while delivering attractive, risk-adjusted returns.
The Aegon Investment Grade Climate Transition 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 Aegon AM’s proprietary climate transition research, the new fund will focus on companies with credible, actionable decarbonisation plans, also relying on a broader ESG assessment to help mitigate potential risks. The strategy targets a 50% reduction in carbon footprint by 2030 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. It complements existing strategies such as the Aegon Investment Grade Global Bond Fund and the Aegon Global Short Dated Climate Transition Fund.
“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,” said Sandilands. “At the same time, the need for credible climate action has never been greater. We believe the fund is well-positioned to deliver resilient, risk-adjusted returns while supporting the transition to a low-carbon economy.”
Aegon AM manages assets worth US$351 billion in public and private markets across fixed income, real assets, equities, and multi-asset platforms.
