IMPORTANT DISCLOSURE: FOR NON-US PROFESSIONAL INVESTORS ONLY
This site is intended only for non-US professional investors or US-based fiduciaries representing non-US investors eligible to invest in Aegon Asset Management’s (the “Company”) UCITS funds. This site, and the funds described herein, are not suitable for individual investors.
The following information regarding the Company’s funds is for informational purposes only and does not constitute an offer for shares, products or services and should not be interpreted as an offer to sell, an invitation to acquire an investment, or a solicitation of an offer to buy for any persons who are prohibited from receiving such information under their domiciled local laws.
Aegon Asset Management Investment Company (Ireland) Plc is structured as an umbrella type open-ended investment company with variable capital consisting of a number of different sub-funds (“Funds”) and is authorized in Ireland pursuant to European Communities (Undertakings for Collective Investment in Transferable Securities) UCITS Regulations and the Central Bank UCITS Regulations (“UCITS Regulations"). Aegon Asset Management Europe ICAV is structured as an umbrella type open-ended investment ICAV with variable capital consisting of Funds and is authorized in Ireland as a UCITS pursuant to the UCITS Regulations.
These Funds are registered in Ireland and are available only to residents of those jurisdictions where allowed by law. Investors that do not meet these requirements will be denied access by the Company.
This is a marketing communication. Please refer to the Legal documents of the Fund(s), such as the KIID and/or prospectus, before making any final investment decisions.
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If you are a retail investor, we recommend that you seek qualified financial advice before making any investment decisions.
You can get the current prospectuses, accounts, important information for investors and fund prices at https://www.fundinfo.com. Please click the accept button and select the county in which you live and identify yourself as a private investor.
Risk notice - Capital risk. The value of investments can go down as well as up and is not guaranteed.
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You can get the current prospectuses, accounts, important information for investors and fund prices at https://www.fundinfo.com. Please click the accept button and select the county in which you live and identify yourself as a private investor.
Risk notice - Capital risk. The value of investments can go down as well as up and is not guaranteed.
This is a marketing communication. Please refer to the Legal documents of the Fund(s), such as the KIID and/or prospectus, before making any final investment decisions.
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Attention aux fraudeurs se faisant passer pour Aegon Asset Management, d’autres institutions financières et organismes de régulation: Nous avons reçu plusieurs signalements de fraudeurs se faisant passer pour Aegon AM et d’autres entreprises en créant de faux sites web, de fausses publicités et de fausses adresses mail. Pour en savoir plus sur la manière de vous protéger contre ces escroqueries et comment signaler un comportement suspect,veuillez lire ce qui suit.
If you are a retail investor, we recommend that you seek qualified financial advice before making any investment decisions.
You can get the current prospectuses, accounts, important information for investors and fund prices at https://www.fundinfo.com. Please click the accept button and select the county in which you live and identify yourself as a private investor.
Risk notice - Capital risk. The value of investments can go down as well as up and is not guaranteed.
This is a marketing communication. Please refer to the Legal documents of the Fund(s), such as the KIID and/or prospectus, before making any final investment decisions.
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You can get the current prospectuses, accounts, important information for investors and fund prices at https://www.fundinfo.com. Please click the accept button and select the county in which you live and identify yourself as a private investor.
Risk notice - Capital risk. The value of investments can go down as well as up and is not guaranteed.
This is a marketing communication. Please refer to the Legal documents of the Fund(s), such as the KIID and/or prospectus, before making any final investment decisions.
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You can get the current prospectuses, accounts, important information for investors and fund prices at https://www.fundinfo.com. Please click the accept button and select the county in which you live and identify yourself as a private investor.
Risk notice - Capital risk. The value of investments can go down as well as up and is not guaranteed.
This is a marketing communication. Please refer to the Legal documents of the Fund(s), such as the KIID and/or prospectus, before making any final investment decisions.
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If you are a retail investor we recommend that you take qualified financial advice before making any investment decisions. You can obtain the latest prospectus, accounts, Key Investor Information and fund prices at www.aegon.nl.
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You can get the current prospectuses, accounts, important information for investors and fund prices at https://www.fundinfo.com. Please click the accept button and select the county in which you live and identify yourself as a private investor.
Risk notice - Capital risk. The value of investments can go down as well as up and is not guaranteed.
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This Website and all information contained herein is intended for exclusive use of qualified investors as defined in the Federal Act on Collective Investment Schemes of 23 June 2006 (the “CISA”) and in its implementing ordinance, which have their residence or registered office in Switzerland (the “Qualified Investors”), excluding opt up Qualified investors.
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If you are not a Qualified Investor or are an opt up Qualified Investor under CISA with residence or registered office in Switzerland, we recommend you consult a financial adviser before making any investment decisions.
You can get the current prospectuses, accounts, important information for investors and fund prices at https://www.fundinfo.com. Please click the accept button and select the county in which you live and identify yourself as a private investor.
Risk notice - Capital risk. The value of investments can go down as well as up and is not guaranteed.
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Higher prices supported by a considerable percentage of global production coming from Russia and Ukraine have caught many commodities in the crosshairs of the Russia-Ukraine war. Concerns are growing over the ability to source these commodities from outside of Ukraine and Russia. In this series, we explore the implications of the war on specific sectors and the possible ripple effects that may potentially be felt throughout other industries.
Neon gas
One commodity negatively impacted by the war is neon gas, a key input used in the semiconductor process. Bulk neon gas is a byproduct of the steel industry (primarily the Russian steel industry), which is captured and filtered to achieve 99.9% purity. Neon gas is an essential input to support lasers used in deep ultraviolet lithography (DUV), the process used to etch silicon wafers creating the foundation of a microchip. It’s estimated that 80% of semiconductors currently being manufactured use neon gas. Semiconductor managers are hesitant to replace neon gas with new sources, as the manufacturing process typically takes six months of adjustments to get production back to optimal levels.
It is difficult to get an accurate estimate of the amount of neon gas sourced from Ukraine and Russia which is used in the semiconductor process, but industry experts suggest as high as 70% and as low as 25%. The range is somewhat large due to the historical conflict between Russia and Ukraine as chipmakers intentionally looked for new alternative sources outside of the region following previous neon gas disruptions caused by Russia’s invasion of Crimea in 2014. During the invasion of Crimea, neon prices soared to around 600%, according to Ars Technica. Because of this, chipmakers may be better prepared this time.
Multiple disruptions in the production of neon gas have created opportunities for new suppliers to enter the market, the largest producer being China. The majority of China’s supply supports Asian chipmakers. Some experts believe chipmakers in the US and Europe are more at risk of neon shortages in the near-term, as an estimated 70% of its neon gas is still being sourced from Eastern Europe.
Multiple chipmakers have publicly stated that over the near-term, production will not be impacted by the Russia-Ukraine war, as management teams have built neon gas inventories ranging from three to six months. It should also be noted that older/legacy nodes (older technology) and newer nodes (EUV) do not require neon gas, so depending on the end-market, it is possible that neon gas shortages would have little to no impact. That said, it has been reported the largest Ukraine producers of neon gas have halted production.
Unlike in the past, the semiconductor Industry could be less dependent on Ukraine for neon gas. However, the country still represents 25% of the total neon gas market. Therefore, if the war continues and/or equipment is destroyed, it will likely have a significant impact on the supply chain within the next six to nine months. Possible neon gas shortages, coupled with increasing Covid-19-related shutdowns in China, make it less likely the semiconductor supply chain will be able to meet the ongoing elevated demand anytime soon.
If neon gas reaches shortage status, large, well-known companies would likely experience little impact; however, the smaller customers (less frequent production runs/smaller volume) will be cut to support larger customers. From a consumer perspective, we believe the shortage of neon gas and subsequent price increase will likely have a minimal impact on overall end-market pricing (i.e., laptops); however, there could be significantly lower production of certain chips creating greater supply shortages to some industries like automotive.
Unless otherwise noted, the information in this document has been derived from sources believed to be accurate at the time of publication.
This material is provided by Aegon Asset Management (Aegon AM) as general information and is intended exclusively for institutional and wholesale investors, as well as professional clients (as defined by local laws and regulation) and other Aegon AM stakeholders.
This document is for informational purposes only in connection with the marketing and advertising of products and services, and is not investment research, advice or a recommendation. It shall not constitute an offer to sell or the solicitation to buy any investment nor shall any offer of products or services be made to any person in any jurisdiction where unlawful or unauthorized. Any opinions, estimates, or forecasts expressed are the current views of the author(s) at the time of publication and are subject to change without notice. The research taken into account in this document may or may not have been used for or be consistent with all Aegon AM investment strategies. References to securities, asset classes and financial markets are included for illustrative purposes only and should not be relied upon to assist or inform the making of any investment decisions. It has not been prepared in accordance with any legal requirements designed to promote the independence of investment research, and may have been acted upon by Aegon AM and Aegon AM staff for their own purposes.
The information contained in this material does not take into account any investor's investment objectives, particular needs, or financial situation. It should not be considered a comprehensive statement on any matter and should not be relied upon as such. Nothing in this material constitutes investment, legal, accounting or tax advice, or a representation that any investment or strategy is suitable or appropriate to any particular investor. Reliance upon information in this material is at the sole discretion of the recipient. Investors should consult their investment professional prior to making an investment decision. Aegon AM is under no obligation, expressed or implied, to update the information contained herein. Neither Aegon AM nor any of its affiliated entities are undertaking to provide impartial investment advice or give advice in a fiduciary capacity for purposes of any applicable US federal or state law or regulation. By receiving this communication, you agree with the intended purpose described above.
Past performance is not a guide to future performance. All investments contain risk and may lose value. This document contains "forward-looking statements" which are based on Aegon AM's beliefs, as well as on a number of assumptions concerning future events, based on information currently available. These statements involve certain risks, uncertainties and assumptions which are difficult to predict. Consequently, such statements cannot be guarantees of future performance, and actual outcomes and returns may differ materially from statements set forth herein.
The following Aegon affiliates are collectively referred to herein as Aegon Asset Management: Aegon USA Investment Management, LLC (Aegon AM US), Aegon USA Realty Advisors, LLC (Aegon RA), Aegon Asset Management UK plc (Aegon AM UK), and Aegon Investment Management B.V. (Aegon AM NL). Each of these Aegon Asset Management entities is a wholly owned subsidiary of Aegon N.V. In addition, the following wholly or partially owned affiliates may also conduct certain business activities under the Aegon Asset Management brand: Aegon Asset Management (Asia) Limited (Aegon AM Asia), Aegon Private Fund Management (Shanghai) Co., Ltd.
Aegon AM UK is authorised and regulated by the Financial Conduct Authority (FRN: 144267) and is additionally a registered investment adviser with the United States (US) Securities and Exchange Commission (SEC). Aegon AM US and Aegon RA are both US SEC registered investment advisers. Aegon AM US is also registered as a Commodity Trading Advisor (CTA) with the Commodity Figures Trading Commission (CFTC) and is a member of the National Futures Association (NFA). Aegon AM NL is registered with the Netherlands Authority for the Financial Markets as a licensed fund management company and on the basis of its fund management license is also authorized to provide individual portfolio management and advisory services in certain jurisdictions. Aegon AM NL has also entered into a participating affiliate arrangement with Aegon AM US. Aegon AM Asia is regulated in Hong Kong by the Securities and Futures Commission of Hong Kong for Professional Investors only (under SFC Ordinance Cap 571); in China, Aegon Private Fund Management (Shanghai) Co., Ltd is regulated by the China Securities Regulatory Commission (CSRC) and the Asset Management Association of China (AMAC) for Qualified Investors only; In Taiwan Neither Aegon Asset Management nor any of its affiliates are registered and may not sell, issue, or offer any products or services while in Taiwan. Marketing is intended to Professional Investors only has not been reviewed or endorsed by any regulatory authority in Taiwan; In Korea, Aegon USA Investment Management (AUIM) is registered as a CB-DIM and delegates Aegon Asset Management (Asia) Ltd to provide marketing and client services in Korea. Intended for Qualified Professional Investors only and contents have not been reviewed or endorsed by any regulatory authority in Korea; In Japan, neither Aegon Asset Management nor any of its affiliates carry on investment business. Intended for accredited, expert or institutional investors only and contents have not been reviewed by the Financial Services Agency of Japan.
Michael Heenan is a senior credit research analyst on the consumer team responsible for credit analysis of high yield issuers within his coverage universe.
