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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.
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Risk notice - Capital risk. The value of investments can go down as well as up and is not guaranteed.
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Risk notice - Capital risk. The value of investments can go down as well as up and is not guaranteed.
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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.
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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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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.
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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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Climate change and the transition to net zero is an increasingly important theme for investors. Significant action is required to reduce our greenhouse gas (GHG) emissions throughout the world. We expect the scrutiny by regulators and underlying pension scheme members of climate-related exposures to only increase. This raises the question how climate change can be incorporated within portfolios, including fixed income portfolios.
How can investors go about determining whether a company is well aligned with the transition to net zero?At Aegon Asset Management, portfolio managers are working closely with our responsible investing team to build a forward-looking framework that will evaluate a company’s alignment with the transition to net zero.
What does that process look like? Every company gets a base assessment of its climate transition readiness by looking at three things: ambitions or targets with regard to GHG emission reductions, their current level of GHG emissions, and overall management policies towards climate transition. Every company is then categorized using a 1-5 scale from leaders to laggards – respectively those that are ready for a low-carbon future and those that are not. This can be used across different fixed income asset classes but so far, we have implemented this analysis into a global short-dated investment grade bond portfolio.
2022 saw a significant move higher in base rates around the globe, as central banks sought to bring inflation under control. This is reflected in the dramatic shift higher in yields. Turning more specifically to the opportunity in credit, incremental yield remains available in high quality investment grade bonds compared to underlying risk-free assets. Credit spreads increased over this period – reflecting both the increase in underlying interest rate volatility we have seen in 2022, and the deteriorating economic outlook and its potential to impact company balance sheets. While such risks warrant close monitoring, investment grade credit fundamentals are in relatively good shape, and we expect companies to be able to manage their balance sheets and liquidity appropriately.
What makes a company’s transition plan credible?
Most companies are at relatively early stages of transition planning. More companies are now beginning to make commitments to emission reduction targets. Although transition plans need to go well beyond emission reduction targets, they also act as a good first step to assess whether the plan itself is robust and credible. The plan can only really be credible if the target itself is ambitious enough. On the target-setting piece of the strategy, we first like to see long-term commitment to net zero, but also robust targets set, more in the short to medium term. It is important to see deep reductions in emissions over the next decade if we are to meet the goals of the Paris Agreement.
Unique considerations for fixed income investors
Investment grade fixed income is dominated by financial companies. Although they typically have very low carbon footprints, they play a very important role in financing sectors that may be exposed to climate risks. Understanding the financials and what they are doing regarding climate change is very important for fixed income. That is why the major financial sectors are included in our high-influence sectors. Data quality in investment grade is pretty good, but less reliable in other parts of fixed income, such as high yield and emerging markets. It is not like listed equity, where the level of disclosure is always very high. Engagement can also be a challenge as a bond investor, and we need to look closely at how we engage with companies on climate transition matters. We aim to engage with those companies that rate poorly within our framework to encourage them to commit to more robust plans that will support climate transition.
Emissions
We look back five years at scope 1 and 2 emissions for every issuer, essentially to check they are included within the base assessments, where we look at target setting and emissions performance. With scope 3 emissions, which are far broader, things become more dispersed when it comes to coverage. Where scope 3 emissions are the key issue for a company in terms of materiality and that issue can reduce those emissions, we focus on scope 3 emissions as the key issue there. We then take a deep dive in terms of the targets. Have they set scope 3 targets and are they looking at the right thing? Is strategy aligned to those scope 3 targets?
Outlook for fixed income risks
There are two key risks – inflation, and a potentially much deeper recession across Europe, the US, and the UK. With respect to the inflation picture, if higher inflation does transpire from here and persist, it will force central banks to raise rates further beyond current market pricing. With the recessionary outlook, we anticipate a marked downturn next year, but not perhaps something to really threaten the investment grade space. We are not overly concerned about recession risks from an investment grade perspective, largely because most companies are in a robust place going into this period. While we are keenly monitoring these risks, our view remains constructive on this part of the market for 2023.
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 Asset Management is under no obligation, expressed or implied, to update the information contained herein. Neither Aegon Asset Management nor any of its affiliated entities are undertaking to provide impartial investment advice or give advice in a fiduciary capacity forpurposes 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, Aegon Private Fund Management (Shanghai) Co., a partially owned affiliate, may also conduct certain business activities under the Aegon Asset Management brand.
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.
Ritchie Thomson is a senior responsible investment associate responsible for analyzing and monitoring key climate change issues facing companies and industry sectors.