By MARK HINTON 26/01/2007
This fund employs a ‘dark green’ approach to ethical bond investing and is managed by Philip Milburn. It essentially mirrors the Aegon Sterling Corporate Bond fund as much as possible, after the application of an ethical Eiris screen. This screen excludes the manager from investing in companies involved in areas such as nuclear power, animal welfare, gambling, tobacco, oppressive regimes and alcohol.
The universe of investable stocks allowed after the ethical screen is around a third of that available to the Aegon Sterling Corporate Bond. The ethical portfolio predominantly invests in sterling investment grade bonds, but may also utilise up to 10% in higher yielding bonds.
The strength of the fixed interest team at Aegon gives us confidence to award this fund three stars.