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.

ESG 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.

Active Ownership

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 four primary groups: exclusionary, best-in-class, sustainability-themed solutions and impact investments. Exclusionary strategies utilize negative screening to avoid certain sectors, companies or practices based on specific criteria. A best-in-class methodology seeks to outperform by emphasizing positive selection of issuers with better or improving ESG profiles. Sustainability-themed strategies focus on issuers aligned with sustainability themes in an effort to generate competitive returns over the long term. Impact investments focus on targeted investment themes to pursue financial returns alongside positive social and/or environmental impact.

  Exclusionary Best-in-class Sustainability-themed Impact investing
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.

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. 

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 research analysts with ESG integration
  • Ongoing investigation of industry best practices
  • Maintain market intelligence on evolving research methodologies
  • Evaluate ESG training opportunities
  • Organize internal sustainability-themed workshops

Engagement

  • Engage with issuers on behalf of all investment centers
  • Encourage change in an effort to generate long-term economic value
  • Partner with other investors where appropriate

Product development

  • Support development of new product ideas
  • Research industry product trends
  • Ongoing participation for certain products post-launch
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

Responsible Investing Brochure

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.