Aegon Asset Management has announced it has completed the transition of the Aegon Diversified Growth Fund to a sustainable multi-asset investment strategy.

To reflect this move, the company said the fund will be renamed the Aegon Sustainable Diversified Growth Fund from 1 April.

Co-managed by Colin Dryburgh and Robert-Jan van der Mark of Aegon AM's Multi-Asset Team, the £534m fund aims to return 4% over inflation through a globally diversified portfolio of equities, bonds and alternative assets.

In January 2020 the managers began transitioning the fund to benefit from compelling sustainability-related investment themes. This was achieved initially through the global equity allocation and followed by the fixed income and alternatives allocations. The fund's name and investment policy will change to reflect the sustainable focus, although the objective will remain the same.

Aegon AM's Multi-Asset Team defines sustainable businesses as those where products, services and business practices are positively aligned with at least one of six key sustainability themes:  climate change, eco solutions, resource efficiency, sustainable growth, inclusion, and health & wellbeing.

The fund invests across sustainability ‘leaders', those investments Aegon AM's sustainability assessment identify as displaying exemplary sustainability credentials, and ‘improvers', by which the managers aim to capitalise upon positive change.

Stephen Jones, global CIO of Multi-Asset and Solutions, said: "The Aegon Diversified Growth Fund is already capitalising upon many of the sustainability-related shifts that are taking place globally. Incorporating a sustainable philosophy and practice will help us to capture opportunities and minimise unintended ESG-related risks."

"The change of name to the Aegon Sustainable Diversified Growth Fund signifies the completion of the fund's transition and signals our sustainability commitment to investors and advisers."

Aegon AM has a long history of managing responsible investment strategies, with its first specialist fund launched over 30 years ago. Today Aegon AM manages £190 billion globally in specialist responsible investment portfolios. The Aegon Sustainable Diversified Growth Fund will draw upon the firm's capabilities in responsible investment and the resources and asset-class expertise of its global investment platforms.