Aegon Asset Management has launched an insured credit fund, giving institutional investors in Europe and the UK exposure to the global insurance-wrapped financing market.

The Aegon Insured Credit Fund is an evergreen fund that provides exposure to global credit investments, all of which are fully insured by A and AA-rated global insurance companies. The fund also incorporates environmental, social and governance considerations, the manager said.

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George Nijborg, head of insured strategies and European private placements at Aegon, said the firm has a “first mover” advantage in bringing this type of insured-credit strategy to institutional investors through the fund structure.

“The use of credit insurance is an established capital-efficient credit substitution product used by financial institutions, particularly banks,” said Nijborg. “This fund represents a significant step forward in further opening this scalable market to institutional investors.”

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According to Aegon, the fund’s liquidity options match the underlying investment portfolio, and the vehicle is designed to meet demand for private credit strategies that are low risk and capital-efficient.

The fund will operate as a Luxembourg-domiciled Reserved Alternative Investment Fund, Aegon, a $446bn (£336bn) investment management firm, said.

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