We believe sustainability is a long-term, secular shift: consumers are demanding sustainable products and services, governments are introducing sustainable policies, and companies are evolving their business models to address environmental and social issues. The sustainability shift presents compelling opportunities for investors to generate alpha and contribute to a more sustainable global economy.
Leveraging our rich history of responsible investing and time-tested fixed income capabilities, we developed the Sustainable Fixed Income strategy, a sustainability-themed approach to multi-sector fixed income investing. Guided by a proprietary sustainability research process, the strategy seeks to outperform the benchmark over the long term by investing in a range of fixed income securities that are aligned with sustainable megatrends.
|Sustainable Fixed Income Overview|
|Objective||Generate competitive returns over the long term by investing in fixed income securities with a favorable sustainability profile|
|Benchmark||Bloomberg Barclays US Aggregate Index|
|Universe||Primarily focused on US investment grade corporate bonds, US and foreign government securities as well as mortgage-backed and asset-backed securities. May opportunistically invest in high yield bonds, emerging market debt and municipal bonds.|
|Inception Date||April 1, 2019|
|Vehicles & Minimums||Separate account minimum: $50 million|
Sustainable Investment Opportunities
Using a proprietary sustainability assessment process, research analysts identify issuers with products, services and assets that may contribute to the long‐term sustainability of the global economy, environment and society. This rigorous bottom-up sustainability assessment is tailored to the sector and issuer type including corporate bonds, sovereign debt, structured securities and municipal bonds.
Opportunities span five sustainability pillars: Climate Change, Eco Solutions, Resource Efficiency, Health and Well-being and Sustainable Growth.
|Sustainability Pillar||Investable Areas||Sector examples|
-Recycling and composting services
-Data Center ABS
|-Use of recycled inputs
Health & Well-being
|-Nutritious, sufficient food
-Medicines and vaccines
-Student loan ABS
-Stable, effective sovereign governments
|Differentiated research framework||Proprietary sustainability process||Experienced team, consistent process|
The benchmark is the Bloomberg Barclays US Aggregate Index. Percentages based on market value as of 3/31/2020. Numbers may not add due to rounding. The portfolio information above reflects a representative account. Credit ratings reflect the Bloomberg Barclays credit quality methodology. Average quality excludes cash and securities that are not rated. The credit quality of a security or group of securities does not ensure the stability or safety of the overall portfolio.
1 The Sustainability Pillar Allocation reflects holdings excluding cash and cash equivalents, based on the United Nations' Sustainable Development Goals as well as Aegon AM US' impact categories and sustainability pillars. All information is provided for informational purposes only. Click here for term definitions.