Responsible Investing

Responsible investment is a key element of Aegon's company-wide responsible business strategy, as an asset owner and asset manager. Through its investment decisions, the firm aims to meet responsible investing commitments while contributing to economic growth and sustainable capital markets

Our approach to responsible investing

Aegon Asset Management integrates ESG factors into the research process, partners with the Responsible Investment team to engage with issuers and provides dedicated responsible investment solutions.

Integration

Aegon AM believes responsible investing may create value and help contribute to long-term outperformance. As a result, our investment process integrates environmental, social and governance (ESG) factors into the bottom-up research process. By integrating ESG considerations with more traditional economic factors, the research team arrives at an independent view of a credit’s overall fundamentals.

Engagement

Aegon AM’s framework encourages engagement with companies in an effort to advocate for positive change, mitigate ESG risk and promote best practices. Aegon’s Responsible Investment team works with issuers to deepen their understanding of ESG issues and improve company performance. The team focuses on three main types of engagement: policy-based, risk-based and thematic.

Solutions

Beyond integration and engagement, Aegon AM’s investment centers provide a range of dedicated responsible investment solutions. Responsible investment solutions pursue responsible objectives alongside financial returns.

Responsible investment solutions

Within the US, responsible investment capabilities are categorized into three primary groups: exclusionary, best-in-class and thematic/impact solutions. Exclusionary strategies utilize negative screening to exclude securities with unfavorable ESG characteristics. A best-in-class methodology goes beyond negative screening to utilize positive screening to identify the attractive investment opportunities within that class from an ESG perspective. Thematic or impact strategies seek to make an impact and contribute to a more sustainable world by focusing on targeted investment themes.

  Exclusionary Best-in-class Thematic/Impact
Related terms Negative screening Positive and negative screening Sustainability-themed strategies or targeted investment themes
Fixed Income Client-directed solutions High Yield ESG Sustainable Fixed Income
Equities Client-directed solutions   Global Sustainable Equity
Real Assets     Opportunity Zones*
Affordable Housing Mortgage Loans
Low Income Housing Tax Credit Equity
Workforce Housing Private Equity

Fixed income strategies are managed by Aegon Asset Management US. Equity strategies are managed by Kames Capital. Real asset solutions are provided by Aegon Real Assets US.

Exclusionary screening refers to strategies that may utilize negative screening to exclude certain issuers to manage risks. Best-in-class approach refers to investment strategies that may utilize negative and positive screening to manage risks and identify opportunities. Sustainability-themed/impact investments refer to investment strategies that may seek positive social and environmental impact alongside financial returns through focused, targeted investments.

Reflects capabilities from Aegon Asset Management's investment centers that are available to US investors. Not all products are available to all investors. Certain capabilities may not be open to new investors. *The firm is currently developing various solutions for institutional investors. Aegon Real Assets does not manage this strategy today.

Dedicated responsible investment team

A dedicated global Responsible Investment team serves as a company-wide resource for responsible business and investment practices. Team members lend their expertise to ESG integration initiatives, contribute to responsible investment product development projects and lead engagement efforts to promote understanding of ESG issues and improve company performance. Furthermore, the responsible investment specialists serve a central resource for responsible investment education, best practices and research.

Responsible Investment Team Overview

ESG integration

  • Support ESG integration efforts
  • Provide ESG reporting advice
  • Evaluate measurement

Engagement

  • Advocate for positive change
  • Promote best practives
  • Mitigate risk, work to improve outcomes

Product development

  • Provide responsible product ideas
  • Research industry product trends
  • Develop impact investing solutions
Provide education, research, advice and general responsible investment support

 

Three reasons to invest responsibly

We believe responsible investment practices, such as ESG integration and aligning with sustainability trends, can help improve investment decision-making abilities, identify attractive investment opportunities and ultimately aid in the pursuit of better outcomes.

Improve decision-making Identify opportunities Pursue better outcomes
Integrating ESG factors into the research process can help manage risk and uncover opportunities The secular shift towards sustainable business practices, products and services presents investment opportunities Responsible investment practices may add value and contribute to a more sustainable world over the long term

Related literature

Disclosures 

All investments contain risk and may lose value. Socially responsible investing is qualitative and subjective by nature, and there is no guarantee that the criteria utilized, or judgement exercised, by any company of Aegon Asset Management will reflect the beliefs or values of any one particular investor. Socially responsible norms differ by region. There is no assurance that the socially responsible investing strategy and techniques employed will be successful. Investors should consult their investment professional prior to making an investment decision.

Aegon AM US, Aegon Investment Management B.V. (AIM) and Kames Capital (Kames) share a central responsible investment team. Certain personnel employed by AIM and Kames provide investment research and recommendations regarding the responsible investment policy, ESG data, engagement, reporting, and impact investments. These AIM and Kames personnel, with respect to their responsible investment responsibilities, are considered Aegon AM US access persons and subject to certain policies, monitoring, and supervision of the firm.