Aegon rebrands short-dated bond fund as climate transition

Embedding firm's ESG analysis into the portfolio

Aegon Asset Management has renamed its short-dated bond fund the Aegon Global Short Dated Climate Transition Fund.

Justifying the change the firm said the £490m fund has “fully embedded” Aegon’s climate transition and ESG analysis and will have a diversified core portfolio of investment grade bonds with less than four years expected to maturity with a maximum allowable exposure of 20% in callable or high yield bonds.

“As part of the fund’s evolution to become an Article 8 fund under SFDR, we felt it was appropriate its name should also now better reflect its investment approach and responsible investment philosophy,” said head of UK credit Iain Buckle.

The fund will be managed by Buckle and fixed income manager Rory Sandilands.

Available to institutional and wholesale investors, it aims to be a simple, liquid, and transparent short-dated bond strategy combining both financial and climate considerations with the aim of delivering a return of cash +1.25% gross of fees over rolling three-year periods with at least 30% lower carbon intensity than the broader credit market (as defined by BofAML Global Large Cap Corporate 1-to-5-year index).