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We believe sustainability is a long-term, secular shift: consumers are demanding sustainable products and services, governments are introducing sustainable policies, and companies are evolving their business models to address environmental and social issues. The sustainability shift presents compelling opportunities for investors to generate alpha and contribute to a more sustainable global economy.

 

Leveraging our rich history of responsible investing and time-tested fixed income capabilities, we developed the US Sustainable Fixed Income strategy, a sustainability-themed approach to multi-sector fixed income investing. Guided by a proprietary sustainability research process, the strategy seeks to outperform the benchmark over the long term by investing in a range of fixed income securities that are aligned with sustainable megatrends.

 

 

Aegon AM US Sustainable Fixed Income

Objective Generate competitive returns over the long term by investing in fixed income securities with a favorable sustainability profile
Benchmark Bloomberg Barclays US Aggregate Index
Investment Style

• A sustainability-themed approach to multi-sector fixed income investing

• Pursues long-term alpha by combining sustainable and economic factors

• Simultaneously provides positive social and environmental impact potential

• Emphasizes five key sustainability pillars: climate change, eco solutions, resource efficiency, health and well-being, and sustainable growth

• Relies on a research-intensive process and proprietary sustainability assessment framework

• Aims to advance sustainability by proactively engaging with issuers

Universe

Primarily focused on US investment grade corporate bonds, US and foreign government securities as well as mortgage-backed and asset-backed securities. May opportunistically invest in high yield bonds, emerging market debt and municipal bonds.

Inception Date

April 1, 2019

Vehicles & Minimums*

• Separate account minimum: $50 million

• Private fund minimum: $1 million

• Sub-advised mutual fund minimum: $1 million

* For qualified investors only. Not all investment vehicles may be available to all investors.

 

Sustainable Investment Opportunities

Using a proprietary sustainability assessment process, research analysts identify issuers that may contribute to the long‐term sustainability of the global economy, environment and society. This rigorous bottom-up sustainability assessment is tailored to the sector and issuer type including corporate bonds, sovereign debt, structured securities and municipal bonds.

 

Opportunities span five sustainability pillars: Climate Change, Eco Solutions, Resource Efficiency, Health and Well-being and Sustainable Growth.

 

Sustainability Pillar Investable Areas Sector Examples
Climate Change -"Green" buildings
-Recycling and composting services
-Environmental
-SASB CMBS
-REITS
-Green bonds
Eco Solutions -Renewable energy
-Hybrid/electric vehicles
-Cloud-based computing
-Technology
-Data Center ABS
-Automotive
-Solar ABS
Resource Efficiency -Use of recycled inputs
-Sustainable agriculture
-Water services
-Agriculture
-Industrials
-Commercial PACE
Health & Well-being -Nutritious, sufficient food
-Personal hygiene
-Medicines and vaccines
-Educational services
-Consumer products
-Pharmaceuticals
-Student loan ABS
Sustainable Growth -Affordable housing 
-Mass transit
-Stable, effective sovereign governments
-Agency MBS
-Sovereigns
-Transportation

 

Distinguishing characteristics

Differentiated Research Framework

Proprietary Sustainability Process Experience team, Consistent process
  • Dedicated sector-focused credit research team covers issuers across the quality spectrum
  • Specialized emerging markets and structured research teams expand research coverage
  • ESG integration can help identify opportunities and risks
  • Research-driven approach with centralized committee-based decision making
  • Customized sustainability determination process for corporates, structured, sovereign and municipals
  • Global Responsible Investment team engages issuers to help further enhance sustainability
  • Seasoned portfolio management team
  • Extensive experience managing core and core plus strategies
  • Adhere to a disciplined, transparent and repeatable process

 

Latest Insights

14/01/2021 | 5 min read | Julius Huttunen | James Rich
01/03/2021 | 5 min read | James Rich | Sean Fanning, CFA | Tom Zorawski, PhD | Max Zhang, FRM
17/02/2021 | 3 min read | James Rich

 
As of December 31, 2020. Past performance is not indicative of future results. Returns are gross and net of management fees and include the reinvestment of all income. Returns beyond 12 months are annualized. Click here for a definition of the index.
 
 

The benchmark is the Bloomberg Barclays US Aggregate Index. Percentages based on market value as of December 31, 2020. Numbers may not add due to rounding. The portfolio information above reflects a representative account. Credit ratings reflect the Bloomberg Barclays credit quality methodology. Average quality excludes cash and securities that are not rated. The credit quality of a security or group of securities does not ensure the stability or safety of the overall portfolio.

 

Credit ratings for the portfolio reflect the Bloomberg Barclays credit quality methodology which is the middle rating of the three agencies, if only rated by two agencies it uses the lower rating and if only rated by one entity it uses that rating. Ratings are sourced directly from Bloomberg Barclays, or if unavailable, are calculated by applying the methodology to available ratings from rating agencies. Average Quality excludes cash and securities that are not rated. The credit quality of a security or group of securities does not ensure the stability or safety of the overall portfolio. NR includes securities that are not rated by S&P®, Moody’s®, or Fitch and may contain bonds, equities and/or bank loans. Credit ratings for the benchmark reflect the benchmark rating.

 

* The Sustainability Pillar Allocation reflects holdings excluding cash and cash equivalents, based on the United Nations' Sustainable Development Goals as well as Aegon AM US' impact categories and sustainability pillars. All information is provided for informational purposes only. Click here for term definitions.

Portfolio managers

Brad Doyle, CFA

Brad Doyle, CFA

Head of Investment Grade credit

Brad Doyle, CFA, is head of investment grade credit and a portfolio manager responsible for the portfolio management of Investment Grade Credit strategies as well as management of investment grade credit within multi-sector portfolios.

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Chuck Foster, CFA

Chuck Foster, CFA

Senior Portfolio Manager

Chuck Foster, CFA, is a senior portfolio manager within the Client Investment Solutions group responsible for overseeing highly customized, multi-sector insurance company product portfolios in addition to LDI mandates.

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Jose Pluto, CFA

Jose Pluto, CFA

Senior Structured Finance Analyst and Portfolio Manager

Jose Pluto, CFA, is a senior structured finance analyst responsible for overseeing mortgage credit research as well as providing ABS research, underwriting, and analytical support.  He also serves on the Portfolio Management team for the Sustainable Fixed Income strategy and is a member of Aegon Asset Management's Sustainable Investment Committee. 

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James Rich

James Rich

Senior Portfolio Manager

James Rich is a senior portfolio manager on the Sustainable Fixed Income strategy and a member of the Sustainable Investment Committee.

 
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