Aegon Asset Management (Aegon AM) and Aegon UK have launched a new sustainable sovereign bond fund to be unveiled at the upcoming COP26 summit.
The Aegon Global Sustainable Sovereign Bond Fund will launch with a £100 million initial investment from Aegon UK and will be available through workplace pensions as a component of Aegon’s default scheme, Universal Balanced Collection, as well as directly through Aegon AM.
Aegon AM said the fund will invest in financially strong countries that are making significant progress towards the sustainability targets defined by the UN’s Sustainable Development Goals (SDGs).
It will be managed by government bond specialists within Aegon AM’s Global Fixed Income Platform, supported by the Global Responsible Investment team led by Brunno Maradei.
The new fund was created in partnership with the Global Ethical Finance Initiative (GEFI), which will be launching its SDG Financial Products Platform at COP26.
The platform is the result of a long-standing collaboration between GEFI and the United Nations Development Programme to develop innovative financial products aligned to the UN’s SDGs.
The Aegon Global Sustainable Sovereign Bond Fund has been selected to be a founding partner of the platform.
Brunno Maradei, head of responsible investing at Aegon Asset Management, said: “We are delighted to be selected by GEFI as a leading example of sustainable investing. We are proud to work with them and our partners at Aegon UK to promote the new fund at COP26. The alignment of sovereign portfolios with the global sustainability agenda facilitates responsible capital allocation, which has positive long-term social and environmental impact.”
Tim Orton, managing director of investment solutions at Aegon UK, commented: “Aegon is committed to action on mitigating climate risk and progress towards our net zero carbon targets. The fund is a prime example of the industry breaking new ground, allowing this key default fund to invest in sustainable strategies across a broader range of asset classes than most default funds have achieved to date.
“The fund has been selected as a leading and innovative example of sustainability alignment and will form an important first milestone for customers in the Universal Balanced Collection. Climate finance will be a key discussion point at COP26 and we are pleased to partner with GEFI and Aegon Asset Management to promote the importance of innovation and the launch of the fund.”
[Main image karsten-wurth-karsten-wuerth-0w-uTa0Xz7w-unsplash]
