Aegon AM launches three European CLO funds with different credit quality
4 SEPT, 2026
By Joanna Piwko from RankiaPro Europe
Aegon AM has expanded its alternative fixed income offering with the launch of three funds that invest in the entire universe of European CLOs, from the AAA segment to titles rated below investment grade.
Frank Meijer, head of Alternative Fixed Income and Structured Finance at Aegon AM, a manager that manages 23,000 million euros in ABS and CLO worldwide, points out that the European CLO market, of about 300,000 million euros, offers attractive potential profitability.
Three funds for the entire credit spectrum
The Aegon High Grade CLO invests in the highest quality tranches of CLOs (AAA and AA), with AA title exposure limited to 25%.
The Aegon European CLO focuses on investment grade tranches with an average credit quality of A/BBB, without investing in lower ratings. The Aegon European CLO Opportunities, reserved for institutional investors, focuses on tranches rated below investment grade and with higher profitability potential.
The three funds offer daily liquidity and are domiciled in Luxembourg within a UCITS structure.
A specialized team with two decades of experience
The Aegon AM investment team has been investing in European CLOs since 2005 and in US CLOs since 1996, and has been managing CLO and ABS strategies for external clients since 2004, with none of its strategies having defaulted during that period.
The manager has a specialized team of more than 20 professionals, backed by the European Leveraged Loans team and the US CLO team, and also acts as a CLO issuer in the United States and Europe.
"We believe that European CLOs offer a very attractive risk-return profile, and their variable interest rate nature is especially interesting in a context of potential interest rate volatility. As this market has grown, we have been able to create scalable and diversified CLO funds that cover the entire spectrum of credit ratings. These new funds rely on our experience investing across the entire capital structure of CLOs and respond to a clear demand from clients for access to more customized solutions, whether to obtain higher quality income or to invest in the lower tranches of the capital structure with the aim of achieving more return than high yield bonds offer."
Frank Meijer, Head of Alternative Fixed Income and Structured Finance, Aegon Asset Management
"We see strong demand from our clients for alternative fixed income solutions that combine diversification with attractive potential income generation. The new funds offer specific access to the European CLO market and allow clients to take advantage of opportunities across the entire credit spectrum, in line with their investment objectives. Helping our clients with this constantly evolving asset class is a key element of our growth strategy in Europe and other markets."
Erik den Hertog, Head of the Client Group for Continental Europe, Aegon Asset Management
