Aegon AM launches investment grade climate transition fund
29 AUG, 2025
By Jose Luis Palmer from RankiaPro Europe
Aegon Asset Management has introduced a new investment grade climate transition fund, designed to support the shift to a low-carbon economy while seeking competitive returns. The fund invests mainly in global investment grade corporate bonds and targets net-zero portfolio alignment by 2040.
Fund Objectives and Strategy
The Aegon Investment Grade Climate Transition Fund aims to outperform the Bloomberg Global Aggregate Corporate Index over rolling 36-month periods, net of fees. Its strategy focuses on companies with credible decarbonisation plans, using Aegon AM’s proprietary climate transition research to identify opportunities.
The fund has set a 30% carbon footprint reduction target by 2029, on the path to achieving full net-zero alignment by 2040. While primarily investing in investment grade bonds, the portfolio will retain flexibility to allocate to high yield bonds and cash.
Management and Market Context
The fund will be co-managed by Rory Sandilands, Alexander Pelteshki, and Kenneth Ward, with support from Aegon AM’s global credit research platform and responsible investment specialists.
Sandilands noted that the current market environment of elevated corporate bond yields and resilient fundamentals creates favourable conditions for investment grade strategies. He added that the fund combines security selection with climate transition research to align financial performance with climate goals.
