Aegon Asset Management has announced plans to adopt the Financial Conduct Authority’s (FCA) new ‘Sustainability Focus’ labels under the Sustainability Disclosure Requirements (SDR) for its Aegon Sustainable Diversified Growth and Aegon Sustainable Equity Funds. These labels, which will be introduced by the end of March 2025 following shareholder notification, align with regulatory standards designed to balance financial performance with sustainability goals.
The FCA’s Sustainability Disclosure Requirements aim to provide greater transparency and consistency in sustainable investing. Aegon’s adoption of these labels reflects the growing momentum of SDR to clarify sustainability standards across the market.
Miranda Beacham, Head of Responsible Investment at Aegon AM UK said, “SDR’s growing momentum provides greater clarity for the market, and we are preparing to adopt these labels for our funds by March 2025.”
Aegon AM also clarified the status of three of its ethical funds – the Aegon Ethical Equity Fund, Aegon Ethical Corporate Bond Fund, and Aegon Ethical Cautious Managed Fund. These funds, which use exclusionary screening strategies, will not carry UK sustainability investment labels but fall under the FCA’s “unlabelled with sustainable characteristics” category.
To ensure transparency, Aegon AM has committed to aligning disclosures for these funds with those of labelled funds. Beacham added, “The unlabelled ethical funds will maintain their clear objectives, appealing to investors seeking alignment with their values on responsible investing.”
Through its biannual Ethical Investor Survey, Aegon AM continues to track societal trends and investor preferences. This ongoing research helps the firm adapt its ethical and sustainable fund strategies to remain relevant and aligned with evolving demands for responsible investing.
