Aegon Asset Management has launched an investment grade climate transition fund targeting a 30% reduction in carbon footprint by 2029 and portfolio net-zero alignment by 2040.
The new strategy will focus on companies with credible, actionable decarbonisation plans. It will primarily invest in global investment grade corporate bonds but has flexibility to dip into high yield bonds and cash, with the aim of outperforming the Bloomberg Global Aggregate Corporate Index over rolling 36-month periods.
The Aegon Investment Grade Climate Transition fund is co-managed by Rory Sandilands, Alexander Pelteshki and Kenneth Ward, with the support of proprietary climate transition research.
Sandilands said: “The current market environment – characterised by elevated corporate bond yields, resilient corporate fundamentals, and a supportive rates cycle – offers a compelling opportunity for investment grade investors.
“At the same time, the need for credible climate action has never been greater. With our proprietary climate transition research, disciplined security selection, and proven track record, we believe the fund is well-positioned to deliver resilient, risk-adjusted returns while supporting the transition to a low-carbon economy.”
