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Aegon AM refocuses high yield short dated bond fund to Climate Transition

Aegon Asset Management has evolved its USD 61 million1 Aegon Short Dated High Yield Global Bond Fund to focus on the transition to a net-zero global economy.


To reflect the change, the fund has been renamed the Global Short Dated High Yield Climate Transition Fund from 18 December 2023 to better represent its climate transition investment criteria. The Fund will be categorised as Article 8 fund under the EU’s Sustainable Finance Disclosure Regulation. 

 

The change builds on the success of the Aegon Global Short Dated Climate Transition Fund launched in January 2020, which is now $985m in size2.

 

The Aegon Global Short Dated High Yield Climate Transition Fund will continue to be managed by Thomas Hanson and Mark Benbow, co-managers of Aegon AM’s successful $1bn Global High Yield franchise3, using the same high conviction investment philosophy and process with a focus on bottom-up, fundamental credit analysis. The managers will be supported by Aegon AM’s responsible investment and credit research teams. 

 

The Fund’s enhancements aim to deliver an innovative solution to align with investors’ financial, ESG and climate-related goals. In addition to pursuing competitive financial returns, the Fund will incorporate proprietary ESG and climate research to improve the fund’s ESG profile and increasingly invest in companies with credible climate transition plans.

 

As part of the Fund’s climate focus, the team will rely on internal climate transition research to evaluate companies’ climate transition readiness. This forward-looking research framework assesses companies’ net-zero ambitions, performance and management of climate risks. Issuers are then categorized according to their level of alignment with progress towards a net-zero economy. The Fund will follow a climate transition pathway that increasingly allocates to companies who are actively and credibly taking steps towards a net-zero transition. In addition, the Fund will adhere to a carbon intensity reduction target and employ a focused climate transition engagement program to encourage companies to improve target setting and reduce emissions.

 

The Fund will aim to deliver cash (SOFR) plus 3% per annum over rolling three years (gross of fees). It will continue to invest in global high yield corporate bonds, with a legal maturity of less than 5.5 years. In addition to the climate criteria, the team will apply an enhanced exclusion screen and utilise internal research to invest in companies with better ESG characteristics and avoid high ESG risks.

 

Hanson said: "The enhanced short dated high yield global bond fund aims to continue maximising returns for investors seeking attractive risk-adjusted returns and strong capital preservation, while now aligning with issuers who have clear and credible decarbonisation plans and net zero goals. 

 

“Our team has strong experience in managing high yield strategies. This expertise will be coupled with knowledge from our specialist responsible investment team and our proprietary climate transition framework to research and categorise issuers according to their level of alignment and progress towards a net-zero economy.” 

 

The newly refocused Global Short Dated High Yield Climate Transition fund will expand Aegon AM’s suite of climate solutions and offer a differentiated investment solution to investors searching for net-zero fixed income solutions. The fund is available to both institutional and wholesale investors. 

 

1Source: Aegon Asset Management. As at 31 December 2023

2Source: Aegon Asset Management. As at 31 December 2023

3Source: Aegon Asset Management. As at 31 December 2023

 

-Ends-

 

Notes for the editor

 

About Aegon Asset Management

 

Aegon Asset Management is an active global investor. Our 375 investment professionals manage and advise on assets of €288.7 ($305.6/£250.4) billion (as of September 30, 2023) for a global client-base of pension plans, public funds, insurance companies, banks, wealth managers, family offices and foundations.

 

We organize our investment capabilities around four focused investment platforms where we have extensive asset-class expertise: Fixed Income, Real Assets, Equities and Multi-Asset & Solutions. Each platform has dedicated teams, organized globally and committed to maximizing their specialist areas. These platforms and the Fiduciary business are supported by a team dedicated to responsible investing. 

 

By organizing our investment teams globally, we work to harness our expertise and research resources across regional boundaries. We believe this enhances our performance potential and helps provide better investment outcomes for clients.

 

Across platforms, we share a common belief in fundamental, research-driven active management, underpinned by effective risk management and a commitment to responsible investment. Our investment platforms have the flexibility to organize their resources and processes to best suit their area of focus.

 

We are a global business: Our 1,200 employees work across Europe, the Americas and Asia. We invest globally and serve clients locally.

 

For more information about Aegon Asset Management, visit www.aegonam.com

 

This document is for use by professional journalists. Its content is written for use in trade and retail publications. 

 

Past performance does not predict future returns. Outcomes, including the payment of income, are not guaranteed. 

 

Opinions and/or example trades/securities represent our understanding of markets both current and historical and are used to promote Aegon Asset Management's investment management capabilities: they are not investment recommendations, research or advice. Sources used are deemed reliable by Aegon Asset Management at the time of writing. Please note that this marketing is not prepared in accordance with legal requirements designed to promote the independence of investment research, and is not subject to any prohibition on dealing by Aegon Asset Management or its employees ahead of its publication. 

 

All data is sourced to Aegon Asset Management unless otherwise stated. The document is accurate at the time of writing but is subject to change without notice. Data attributed to a third party (“3rd Party Data”) is proprietary to that third party and/or other suppliers (the “Data Owner”) and is used by Aegon Asset Management under licence.  3rd Party Data: (i) may not be copied or distributed; and (ii) is not warranted to be accurate, complete or timely.  None of the Data Owner, Aegon Asset Management or any other person connected to, or from whom Aegon Asset Management sources, 3rd Party Data is liable for any losses or liabilities arising from use of 3rd Party Data. 

 

This document is issued by Aegon Asset Management UK plc in the United Kingdom and is issued by Aegon Investment Management B.V. in the European Union and European Economic Area. Aegon Asset Management NL is a trading name of Aegon Investment Management B.V. 

 

Aegon Asset Management UK plc is authorised and regulated by the Financial Conduct Authority. Aegon Investment Management B.V. is authorised and regulated by the Netherlands Authority for the Financial Markets.  

 

AdTrax Code 6161166.2.

Exp: 20 November 2024

 

 


Author: PR Team
Published On: 15/01/2024
Minute Read: 4