Aegon AM has announced the launch of the Aegon Investment Grade Climate Transition Fund.

The fund will invest in global investment grade corporate bonds and can include high yield bonds and cash. It is benchmarked to the Bloomberg Global Aggregate Corporate Index and focuses on companies with credible, actionable decarbonization plans. Also included is a broader ESG assessment. The fund targets a 30% reduction in carbon footprint by 2029 and aims for portfolio net-zero alignment by 2040. It is co-managed by Rory Sandilands, Alexander Pelteshki and Kenneth Ward.

Rory Sandilands, said, “The launch of the Aegon Investment Grade Climate Transition Fund draws on our longstanding expertise in investment grade credit and deep commitment to responsible investing. It complements our broader suite of climate-aware solutions and reflects our leadership in aligning fixed income portfolios with net-zero goals.

“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”.

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