European Asset Backed Securities

Asset-backed securities represent a mature and attractive asset class.

They can offer investors distinct benefits including:

         

Attractive risk/return characteristics

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Low sensitivity to interest rates

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Exposure to a range of consumer-backed opportunities

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Diversification

 

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A transparent view of collateral quality 

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How our clients are incorporating ABS into their asset allocation

Seeking alternative investments
Diversifying credit exposure
Access to the consumer

Overview of our key European ABS strategies

At Aegon AM we offer a range of ABS strategies to suit various investor preferences for yield and risk. Past performance does not predict future returns.

 

  European AAA Strategy* European ABS Fund ABS Opportunity Fund
Average credit quality AAA AA/A BB
Yield (in Euro) 4.75% 6.24% 9.57%
Spread (in Euro) 126 bps 254 bps 595 bps
Effective duration 0.25 0.29 0.20
Spread duration 4.00 2.94 4.60
Liquidity Daily Daily Daily
Investment vehicle Segregated UCITS, segregated Irish QIF

As of 31 December, 2023. Source: Aegon AM. *Product to be launched in 2024.

How pension schemes are allocating to asset backed securities

Listen to our latest webinar where Egbert Bronsema discussed the key features of asset backed securities (ABS) and the benefits that the asset class can offer within a portfolio.