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Aegon Asset Management is advancing the sustainability disclosures for the Global Sustainable Sovereigns Strategy

To meet clients’ demand for more meaningful sustainability disclosures that comply with regulatory requirements, the Aegon Global Sustainable Sovereign Bond Fund is reclassified from Article 8 to Article 9 under the EU’s Sustainable Finance Disclosure Regulation (SFDR).

 

The objective of the Aegon Global Sustainable Sovereign Bond Fund is to invest in financially strong countries that contribute to the improvements in sustainability targets as defined by the UN Sustainable Development Goals (UN SDGs). The updated SFDR classification is well aligned with the sustainable objective of the fund and better reflects the underlying process of integrating sustainability research in the portfolio construction.

 

The key purpose of the SFDR is to provide market participants with transparent information on sustainability risks to increase investors’ confidence in the financial products with sustainability claims. Since the European Commission introduced its Sustainable Finance Action Plan in 2018, aligning more investments towards sustainable objectives has been an important part of building a prosperous future for society and the planet.

 

According to the SFDR, funds classified as Article 9 must have a specific sustainable investment objective and disclose mandatory information on how that objective is achieved. Furthermore, just like Article 8 funds, Article 9 funds are required to provide mandatory information on how sustainability risks and adverse impacts are considered. The Aegon Global Sustainable Sovereign Bond Fund was launched in 2021 and from inception applied a thorough sustainability integration process consistent with SFDR disclosure requirements applicable to the asset class.

 

At Aegon Asset Management, we value regulatory efforts to create a robust disclosure framework to promote sustainable investments, even though we recognize the shortcomings that come with the attempts to enforce standardized ESG information. SFDR is just one of many steps taken in the EU to improve market practice and provide investors with meaningful sustainability disclosures. The reclassification of the Aegon Global Sustainable Sovereign Bond Fund as an Article 9 fund reflects an evolution in our understanding and implementation of this important regulation, while increasing our transparency and accountability to clients seeking more sustainable investments’ disclosures.

 

More information about the Aegon Global Sustainable Sovereign Bond Fund can be found on the website: www.aegonam.com/gssbf.

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Aegon Asset Management

We are active global investors. In a complex world we think and act across traditional boundaries. We organize our teams globally by asset class, to bring the breadth and depth of our investment and research capabilities together for clients across the world. 

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