New Aegon Global Sustainable Sovereign Bond Fund to feature at COP26

Aegon Asset Management (Aegon AM) and Aegon UK have partnered with the Global Ethical Finance Initiative (GEFI) to introduce the new Aegon Global Sustainable Sovereign Bond Fund at COP26, the 26th United Nations Climate Change conference, which will be held in Glasgow from 1-12 November 2021.

The Fund, which takes an innovative approach to incorporating the sustainability characteristics of sovereign bonds, launched in October 2021. Initial investors will include Aegon UK, which is making a £100m initial investment in the Fund as part of the default offering within its Universal Balanced Collection. This underlines Aegon UK’s commitment to making its default pension offering carbon net zero by 2050, and to halving carbon emissions by 2030.

 

The Aegon Global Sustainable Sovereign Bond Fund has been selected as a leading and innovative example of sustainability alignment by the Global Ethical Finance Initiative (GEFI), an independent organisation focused on driving positive change in the international finance community. GEFI will launch its SDG Financial Products Platform at COP26, the result of a longstanding collaboration with the United Nations Development Programme to develop innovative financial products aligned to the UN’s Sustainable Development Goals (SDGs). The Fund will become a founding partner of the platform and feature at events during COP26.

 

The Aegon Global Sustainable Sovereign Bond Fund will invest in investment grade government bonds (BBB- and higher), focusing on countries that are demonstrating significant progress towards the sustainability targets defined by the UN SDGs. The Fund will be managed by government bond specialists within Aegon AM’s Global Fixed Income Platform, which has 136 fixed income investment professionals across the UK, the US and the Netherlands. They are supported by a 17-strong Global Responsible Investment Team, led by Brunno Maradei.

 

Commenting on the new fund, Bas NieuweWeme, Aegon AM’s CEO, said:

 

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"We are delighted to be selected as a leading example of sustainable investing. We are proud to work with GEFI and Aegon UK to introduce the new fund at COP26. The alignment of sovereign portfolios with a global sustainability agenda facilitates responsible capital allocation, which has a long-term social and environmental impact.”

 

 

 

 

 

Brunno Maradei, Aegon AM’s Global Head of Responsible Investment, said:

 

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"Incorporating sustainability alignment into a sovereign bond investment strategy can help to mitigate risk, contribute to sustainable growth and pursue competitive long-term performance. Leveraging our proprietary research methodology and multi-decade expertise as active owners of sovereign debt, we are pleased to launch a fixed income strategy that not only has a strong focus on sustainability, but a commitment to delivering attractive returns.”

 

 

 

 

For more information about GEFI visit www.globalethicalfinance.org, and for the COP26 conference visit www.ukcop26.org.


Author: Aegon Asset Management
Published On: 22/10/2021
Minute Read: 2