Approach to investments

AEGON's investment strategy operates within the company's overall risk management framework, and consists in attempting to balance the need to maximize returns with consideration for social, environmental, governance and other non-financial factors.

 

Most of AEGON's investments are the responsibility of AEGON Asset Management, which was set up in October 2009. AEGON Asset Management brings together AEGON asset management companies in the Americas, Europe and Asia. Currently, AEGON's investment practices and policies vary from country to country. However, AEGON Asset Management is now developing company-wide principles for responsible investment, based on existing international commitments, and rules and guidelines already in place. In 2009, AEGON Asset Management adopted a long-term plan which will lead to the development and introduction of these principles over the next two years.

 

When making investments, AEGON companies take into account a number of non-financial considerations. These may include:

 

  • Regulatory and /or legal
  • Environmental
  • Social
  • Political
  • Accounting
  • Reputational

 

In both the United Kingdom and the Netherlands, AEGON engages with management of companies in which it invests. AEGON fund managers and analysts regularly meet executives from these companies. Discussions may focus on a broad range of subjects including remuneration, corporate governance, environmental management standards, and sustainability reporting.

 

The aim of this dialogue is to ensure that, as far as possible, AEGON is aware of all aspects of the company's activities and risks. In the Netherlands, AEGON operates a system of 'grey' and 'black' lists, which earmark certain companies for 'engagement' and preclude investment in others with poor social or environmental records. In the United States, AEGON companies have guidelines that define 'responsible investments'. In addition, AEGON's investment companies in the United States also take specific steps to ensure they are in compliance with regulations covering countries designated by the US State Department as 'sponsors of terrorism'.