Aegon Global Sustainable Sovereign Bond Fund
I Acc EUR
ISIN: IE00BN941223
Fund description

The Aegon Global Sustainable Sovereign Bond Fund aims to invest in financially strong countries that contribute to the improvements in sustainability targets as defined by the UN Sustainable Development Goals (SDGs). We believe our actively managed portfolio offers investors strong capital-preservation characteristics and attractive yields. The fund is benchmarked against the ICE BofA Global Government Index.

A distinctive strategy

  • A unique methodology - While our approach is aligned with UN standards, it reflects the specific challenges at country, income group and regional level. We identify whether a country is on course to achieve its targets and compare it to representative peers.
  • Future-focused - The investment universe consists not only of sustainable leaders but also the leaders of tomorrow - countries that are visibly moving towards sustainable development. It allows our clients to finance the transition of countries towards sustainability, while also offering yield pick-up versus developed markets.
  • Attractive risk & return profile - Sustainable countries have the potential to show a higher resiliency in the long-term under scenarios such as climate change and social instability. Global diversification helps to minimize specific risks, dampens portfolio volatility, and can generate excess returns by capturing an illiquidity premium. Achieving sustainable returns in a stable manner is especially relevant for clients with long-term investment horizons.
  • Global scope - Being global in our remit broadens our opportunity-set without tying us to a specific region. The methodology allows us to have opinions on a country's sustainability approach regardless of their rating and whether they have issued bonds or not.
  • Climate focused - Climate plays a fundamental role in analysis and in asset allocation, where a country’s current policies are examined under the perspective of the transition to net zero.
  • Active ownership - The Fund offers a first step towards engagement with sovereign issuers. Our regular contact with government officials, debt management officers and other sovereign investors enables us to be an active force for positive change.

 

Building a portfolio

The portfolio is a combination of financially robust countries that show a high ambition to tackle the sustainability challenges as defined by the United Nations.

 

The process starts with a thorough sustainability assessment. This exercise defines the investable universe, and countries considered not sustainable (either classified as ‘neutral’ or ‘detrimental’) cannot be part of the strategy.

 

After the investable universe has been defined, our portfolio construction process takes into consideration elements such as:

  • Obtaining proper returns for the risks incurred.
  • Analysing the fundamentals of an issuer to ensure debt can be repaid.
  • Achieving global diversification in our regional exposure.
  • Targeting a balanced representation in global sustainability challenges.
  • Including considerations for climate alignment
  • Considering material ESG elements that may affect the creditworthiness of an issuer.
  • Evaluating the presence of externalities and spillovers in the portfolio.

 

Fund Changes 7th May 2024

Please note that some changes to this fund will take place on 7th May 2024. The changes relate to the investment objective, policies and investment process of the Fund, please read the Investor Notice which was issued to shareholders on 19 April 2024.

 

A copy of the shareholder notice can be found HERE

Fund insights
Literature
All Documents
Download
Factsheet
Aegon Global Sustainable Sovereign Bond Fund - Brochure
Shareholder Notice - Reclassification to Article 9 - Aegon Global Sustainable Sovereign Bond Fund - April 2024.pdf
SFDR Website disclosure - Aegon Global Sustainable Sovereign Bond Fund
Our responsible investment solutions for UK investors
Prospectus Aegon UCITS ICAV - 30 November 2022
Supplement Aegon Global Sustainable Sovereign Bond - 7 May 2024
Aegon AM NL Sustainability Risks and Impacts Policy
Fund managers
Irina Kurochkina, CFA
Portfolio Manager

Irina Kurochkina, CFA, is a portfolio manager in the fixed income, LDI and investment solutions team with a focus on sovereigns.

Gerard Moerman
Head of Fixed Income, LDI and Investment Solutions

Gerard Moerman, PhD, is head of fixed income, LDI and investment solutions.

Disclaimer