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Global Sustainable Sovereign Bond Fund

ISIN: IE00BN941223

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Fund description

The Aegon Global Sustainable Sovereign Bond Fund aims to invest in financially strong countries that contribute to the improvements in sustainability targets as defined by the UN Sustainable Development Goals (SDGs). We believe our actively managed portfolio offers investors strong capital-preservation characteristics and attractive yields. The fund is benchmarked against the ICE BofA Global Government Index.



A distinctive strategy

  • A unique methodology - While our approach is aligned with UN standards, it reflects the specific challenges at country, income group and regional level. We identify whether a country is on course to achieve its targets and compare it to representative peers.
  • Future-focused - The investment universe consists not only of sustainable leaders but also the leaders of tomorrow - countries that are visibly moving towards sustainable development. It allows our clients to finance the transition of countries towards sustainability, while also offering yield pick-up versus developed markets.
  • Attractive risk & return profile - Sustainable countries have the potential to show a higher resiliency in the long-term under scenarios such as climate change and social instability. Global diversification helps to minimize specific risks, dampens portfolio volatility, and can generate excess returns by capturing an illiquidity premium. Achieving sustainable returns in a stable manner is especially relevant for clients with long-term investment horizons.
  • Global scope - Being global in our remit broadens our opportunity-set without tying us to a specific region. The methodology allows us to have opinions on a country's sustainability approach regardless of their rating and whether they have issued bonds or not.
  • Climate focused - Climate plays a fundamental role in analysis and in asset allocation, where a country’s current policies are examined under the perspective of the transition to net zero.
  • Active ownership - The Fund offers a first step towards engagement with sovereign issuers. Our regular contact with government officials, debt management officers and other sovereign investors enables us to be an active force for positive change.

 

Building a portfolio

The portfolio is a combination of financially robust countries that show a high ambition to tackle the sustainability challenges as defined by the United Nations.

 

The process starts with a thorough sustainability assessment. This exercise defines the investable universe, and countries considered not sustainable (either classified as ‘neutral’ or ‘detrimental’) cannot be part of the strategy.

 

After the investable universe has been defined, our portfolio construction process takes into consideration elements such as:

  • Obtaining proper returns for the risks incurred.
  • Analysing the fundamentals of an issuer to ensure debt can be repaid.
  • Achieving global diversification in our regional exposure.
  • Targeting a balanced representation in global sustainability challenges.
  • Including considerations for climate alignment
  • Considering material ESG elements that may affect the creditworthiness of an issuer.
  • Evaluating the presence of externalities and spillovers in the portfolio.

Fund Documents

All documents

Global Sustainable Sovereign Bond Flyer.pdf

(447KB) PDF

Prospectus Aegon UCITS ICAV.pdf

(697KB) PDF

SFDR Addendum to Aegon UCITS ICAV Prospectus.pdf

(91KB) PDF

Supplement - Aegon Global Sustainable Sovereign Bond.pdf

(315KB) PDF

Fund managers

Irina Kurochkina

Irina Kurochkina

Portfolio Manager

Jesús Martínez

Jesús Martínez

Senior Portfolio Manager

Strategy support

Hendrik Tuch

Hendrik Tuch

Head of Fixed Income

Sarvjeev Sidhu, CFA

Sarvjeev Sidhu, CFA

Head of Emerging Markets Strategy

Disclaimer

Past performance is not a guide to future performance. The fund is intended to be a long term investment and the principal risk is the loss of capital.

 

The value of investments and the income from them may go down as well as up and is not guaranteed. Outcomes, including the payment of income, are not guaranteed.


Any investment objective, benchmark and yield information should not be considered as an assurance or guarantee of the performance of the fund or any part of it.


Fund Charges are taken from capital, increasing distributions but constraining capital growth. Please be aware that each fund presents its own risk profile. Before making an investment decision, please read the KIID for an explanation and refer to the prospectus for information about all relevant risks, including all material risks for this fund.


Aegon Asset Management is not responsible for the accuracy or completeness of the information supplied by Lipper. Aegon Asset Management neither warrants, represents nor guarantees the contents of the information, nor does it accept any responsibility for errors, inaccuracies, omissions or any inconsistencies herein.

Investors in the UK, Ireland and Channel Islands: A limited range of funds and share class have “Reporting Fund” status and more information about this status is contained in the full prospectus.