UBS AM and Aon have co-developed and launched the climate transition fund, seeded at over £700m from Aon. The UBS Global Equity Climate Transition fund seeks to back companies well placed to transition to a low-carbon economy and have higher sustainability matrices than the benchmark.
The fund also favours companies aligned with particular UN Sustainable Development Goals and will use the company’s ongoing stewardship activities, such as outcome-oriented corporate engagement programmes along with aligned voting practices, as guides.
Ian Ashment, head of portfolio engineering and trading at UBS AM: “We are proud to collaborate with Aon to provide defined contribution pension plans with the ability to mitigate climate-related investment risks and make positive contributions to society. This fund brings together our award-winning proprietary Climate Aware Framework and our global stewardship program to collaborate with companies to work towards a lower carbon future and link climate action with inclusive growth.”