Transamerica launches sustainable bond fund, ESG fund

By Taylor Fox

New York, Sept. 21 – Transamerica launched the Transamerica Sustainable Bond fund and the Transamerica High Yield ESG fund, both responsible investing bond mutual funds, according to a news release.

The funds aim to meet investors’ growing demand for responsible investments that emphasize environmental, social and governance factors in their principles and practices.

Transamerica categorizes the Transamerica Sustainable Bond fund as a sustainability-themed strategy. Sustainability-themed funds focus on issuers aligned with sustainability megatrends in an effort to generate competitive returns over the long term.

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 uses positive screening to select investments for the portfolio.

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 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.

The ESG fund primarily focuses on positive selection of investments with favorable ESG characteristics, while minimizing exposure to companies with less favorable ESG qualities

The funds will be initially available as class 1 and class 12 shares.

Aegon USA Investment Management, LLC is sub-adviser for the funds.

St. Petersburg, Fla.-based Transamerica Asset Management, Inc. is the investment adviser to the fund.

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