Headlines
Aegon launches new climate transition fund
Published by Global Banking & Finance Review®
Posted on August 27, 2025
2 min readLast updated: January 22, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on August 27, 2025
2 min readLast updated: January 22, 2026
Aegon has launched a climate transition fund targeting investment-grade bonds to support a low-carbon economy, aiming to outperform market indices.
(Reuters) -Dutch financial services company Aegon on Wednesday launched its Aegon Investment Grade Climate Transition Fund, which is designed to support the transition to a low-carbon economy while delivering good returns for investors.
WHY IT'S IMPORTANT:
The launch of Aegon's new fund comes two months after Europe eased state aid rules to boost environmentally-friendly projects and cut carbon footprints.
Last month, the world's biggest multilateral climate fund - the Green Climate Fund - also said it would make its largest ever series of investments and speed up dealmaking to help poorer nations deal with the effects of global warming.
BY THE NUMBERS:
The Aegon Investment Grade Climate Transition Fund will mainly invest in global investment-grade corporate bonds, with flexibility to include select high-yield bonds and cash.
It aims to outperform the Bloomberg Global Aggregate Corporate Index over rolling 36-month periods, net of fees.
Data published last November by Morningstar said climate funds' total assets stood at $572 billion as of September 30, 2024.
KEY QUOTE:
"The current market environment - characterised by elevated corporate bond yields, resilient corporate fundamentals, and a supportive rates cycle - offers a compelling opportunity for investment grade investors," said Aegon Asset Management fund manager Rory Sandilands.
"At the same time, the need for credible climate action has never been greater. With our proprietary climate transition research, disciplined security selection, and proven track record, we believe the fund is well-positioned to deliver resilient, risk-adjusted returns while supporting the transition to a low-carbon economy," he added.
(Reporting by Sudip Kar-Gupta; Editing by Kirsten Donovan)
A climate transition fund is an investment vehicle that focuses on financing projects aimed at reducing carbon emissions and promoting sustainable practices, while also seeking to provide competitive returns to investors.
Corporate bonds are debt securities issued by companies to raise capital. Investors purchase these bonds, effectively lending money to the issuer in exchange for periodic interest payments and the return of the bond's face value at maturity.
Climate funds play a crucial role in financing projects that address climate change, helping to transition economies towards low-carbon alternatives, and supporting sustainable development goals.
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