New fund to invest primarily in global investment-grade corporate bonds, with scope for select high-yield bonds and cash.
Designed to outperform the Bloomberg Global Aggregate Corporate Index over 36-month rolling periods.
Launch comes as climate funds’ total assets reached $572 billion as of September 2024, according to Morningstar.
Dutch financial services group Aegon has launched the Aegon Investment Grade Climate Transition Fund, aiming to deliver resilient returns while backing the global shift toward a low-carbon economy. The strategy primarily invests in global investment-grade corporate bonds, with flexibility to allocate to high-yield bonds and cash.
The fund targets outperformance of the Bloomberg Global Aggregate Corporate Index over rolling 36-month periods, net of fees.
Rory Sandilands, fund manager at Aegon Asset Management, 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.”
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He added: “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.”
The launch comes amid surging demand for climate-oriented strategies. Data from Morningstar showed that climate funds held $572 billion in assets globally as of September 2024.
It also follows the Green Climate Fund’s announcement last month of its largest-ever round of investments, with plans to accelerate dealmaking to help developing economies manage the impacts of climate change.
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