Aegon Asset Management has launched a commingled evergreen fund for investors to access its increasingly popular “insured credit” strategy, which turns a range of sub-investment-grade debt into high-yielding, high-grade notes.
The strategy, which has been around since 2021, involves Aegon AM pitching insurance and pension fund clients a wrapped product that would take assets including emerging market sovereign loans and bonds, corporate loans and bonds, ABS bonds, significant risk transfers, infrastructure debt, project finance, and fund finance exposures and transform them from single- or double-B equivalent credits into single- or double-A with a full credit insurance wrapper.
Aegon AM was previously offering this project to clients via segregated mandates, but since September, the investment has become available to accounts that want to do a smaller investment size via the new commingled fund.
The segregated mandates were more bespoke to the investment criteria of each investor, and needed to be done in larger sizes.
“A commingled fund makes it more broadly accessible,” said George Nijborg, head of insured private strategies and EU private placements at Aegon AM. “You can do smaller sizes because you are one of multiple investors, and you get a more diversified portfolio that way as well.”
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