ESG Fund Factsheet

For adviser use only

Aegon Ethical Equity

Classification: Ethical
Management style: Active

Introduction

The Aegon Ethical Equity Fund is a long standing fund with an extensive track record that employs a comprehensive set of negative screens.

Name Launch Date IA Sector Portfolio OCF Fund Size (m)
Aegon Ethical Equity 17/04/1989 UK All Companies 0.77% £532*

*As at 31/07/2022

About Aegon

Aegon Asset Management is an active global investor who advise on assets of more than £348 billion (as of December 31, 2020) for a global client-base of pension plans, public funds, insurance companies, banks, wealth managers, family offices, individual investors and foundations.

Aegon Asset Management is a leader in responsible investing, with a 14-strong Global Responsible Investment team supporting ESG integration by their research and investment teams, helping lead active ownership activities, develop innovative products and promote responsible investing best practice across the organisation.

ESG Process

The fund has a negatively screened portfolio. There is an extensive list of areas with associated criteria that the funds will not invest into.

ESG considerations are also integrated more generally in the investment methodology when choosing which assets will be included within the portfolios. The funds investment teams work closely with Aegon’s Global Responsible Investment team to ensure that material non-financial information is integrated across the process.

Active ownership is also central to the fund with the teams addressing sustainability issues by exercising shareholder rights and actively engaging with issuers and investee companies.

Exclusion Policies

The companies screened out of the portfolio fall into the below themes, with more extensive description of what is excluded found on the funds screening document:

Alcohol Tobacco
Armaments Pornography
Environment Political Donations
Gambling Nuclear Power
Genetic Engineering Banks
Oppressive Regimes

Cost

The OCF for the Aegon Ethical Equity fund is 0.77%.

Investment Performance

Over 1, 3 and 5 years the fund has significantly underperformed the average of the sector peers.

Source FE Analytics, performance from 14/09/2022

Past performance is not a reliable indicator of future performance.

Platform availability

The Aegon Ethical Equity fund is available on the following platforms:

Aegon (ARC) M&G Wealth
Aviva Wrap Abrdn Elevate
Aegon Fidelity
Interactive Investor James Hay
Novia Nucleus
Quilter Abrdn Life Wrap
Transact Advance – Embark

Risk tools

The Aegon Ethical Equity fund is not mapped to Risk tools.  As a single strategy equity fund this is to be expected.

Supporting documents

Tenet Opinion

The Aegon Ethical Equity fund has a long track record and established history in the ethical investing space and is run by a very experienced team with access to extensive resources.

The fund’s list of exclusions are comprehensive and the screening document gives a good level of insight into what would and wouldn’t be acceptable to hold within the portfolio. It would potentially be suitable for clients who wish to exclude a range of different areas from their portfolios on ethical grounds.

The performance of the fund over the last 5 years, when compared to their respective sectors has been very poor. However it is important to bear in mind that these are broad sectors, and this fund has specific limitations due to the ESG criteria applied within the investment strategy meaning that the performance will be strongly effected by the biases this creates when compared to their peers.

Information approved for Professional Adviser use only and should not be relied upon by private investors (this is not for Retail Clients).