Transamerica announces the launches of the Transamerica Sustainable Bond fund and the Transamerica High Yield ESG fund, two responsible investing bond mutual funds. The funds aim to meet investors’ growing demand for responsible investments that emphasize environmental, social, and governance (ESG) factors in their principles and practices. Transamerica Asset Management, Inc. has selected Aegon USA Investment Management, LLC as sub-adviser for both funds.
Transamerica segments responsible investing into categories based on the level of emphasis on ESG considerations. Transamerica categorizes the Transamerica Sustainable Bond fund as a Sustainability-Themed strategy. Sustainability-Themed funds utilize a thematic approach to focus on issuers aligned with sustainability megatrends in an effort to generate competitive returns over the long term. Transamerica categorizes the Transamerica High Yield ESG fund as a Best-in-Class ESG strategy. Funds in this category pursue financial returns by using a best-in-class selection methodology to invest in companies with more favorable environmental, social, and governance characteristics, while minimizing exposure to companies with less favorable ESG qualities.
The Transamerica Sustainable Bond fund seeks to provide high total return through a combination of current income and capital appreciation. The fund expands on Aegon USA Investment Management, LLC’s extensive multi-sector fixed income capabilities and invests in a broad array of fixed income securities that align with long-term, sustainability initiatives. Through a proprietary sustainability assessment framework, the fund seeks to provide long-term value to shareholders, while contributing to a more sustainable global economy. The Transamerica Sustainable Bond fund utilizes positive screening to select investments for the portfolio.
The Transamerica High Yield ESG fund seeks a high level of current income. The fund expands on the existing high-yield platform of Aegon USA Investment Management, LLC and is built on its proprietary ESG research framework. Utilizing a best-in-class selection methodology, the fund strives to maximize the portfolio’s ESG risk/reward profile. The Transamerica High Yield ESG fund primarily focuses on positive selection of investments with favorable ESG characteristics, while minimizing exposure to companies with less favorable ESG qualities.
As a manager of managers, Transamerica Asset Management Inc. appointed Aegon USA Investment Management, LLC as sub-adviser for the funds because of its extensive experience in and deep understanding of responsible investing within fixed income markets. Through a research-intensive process, Aegon USA Investment Management LLC combines a global, top-down analysis of the macroeconomic and interest rate environment with proprietary, comprehensive, bottom-up research.
With the addition of these two new funds, Transamerica Asset Management, Inc. increases its wide array of mutual funds, variable annuity portfolios and exchange-traded funds totaling assets of more than $77 billion as of June 30.
The Transamerica Sustainable Bond fund and the Transamerica High Yield ESG fund will initially be available as Class I and Class I2 shares.