Aegon Asset Management (AM) has announced it will adopt the Financial Conduct Authority’s (FCA) Sustainability Disclosure Requirements (SDR) labels for two of its funds.

Both the Aegon Sustainable Diversified Growth Fund and Aegon Sustainable Equity Fund intend to adopt the ‘Sustainability Focus’ label from the end of March 2025 following shareholder notification.

The firm said that the move underlined its commitment to helping clients meet their financial and sustainability objectives.

Meanwhile the Aegon Ethical Equity Fund, Aegon Ethical Corporate Bond Fund and Aegon Ethical Cautious Managed Fund will not adopt UK sustainability investment labels, as they operate exclusionary screens and do not fit within the label categories defined by the FCA.

However, Aegon AM noted that they will be in the unlabelled with sustainable characteristics category, which will result in disclosures aligned with the labelled funds.

Commenting on the announcement, Aegon AM UK head of responsible investment, Miranda Beacham, said: “We are very pleased to see SDR is gathering momentum in providing greater clarity and confidence in the market for our clients and look forward to adopting the new labels for our funds.

“Our ethical franchise, remaining unlabelled with sustainability characteristics, will continue to be entirely unambiguous in its goals, an attractive proposition to some investors looking to align their values and views on responsible investing.

“Indeed, our Ethical Investor Survey, carried out every two years ensures our funds stay aligned both to these goals, and also with societal changes.”

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