The Aon MasterTrust and Aon’s Group Personal Pension Plan have seeded the newly-launched UBS Global Equity Climate Transition Fund with more than £700m (€826m), assets which had previously been invested in indexed equities.
According to UBS Asset Management (UBS AM), the fund offers cost-efficient and broad-based exposure to global equity markets, providing investors with the ability to mitigate climate-related investment risks while aiming to have a positive effect on society.
The global equity rules-based fund, which was co-developed with Aon, tilts towards companies that are better placed for the transition to a low carbon economy and have higher sustainability characteristics than the benchmark, UBS AM added.
The aim is to shape the portfolio towards a net zero trajectory in line with the Paris Agreement.
The fund also tilts towards companies with revenues aligned with selected UN Sustainable Development Goals (SDGs) relating to health, clean energy, decent work, responsible consumption and production, and climate action.
Joanna Sharples, chief investment officer for Aon DC Solutions, said: “Our members want to protect their investments from the effects of climate change and to make a positive social impact, as well as supporting the transition to a low carbon economy in a sustainable way. This fund will help them to do that.”
Ian Ashment, head of portfolio engineering and trading at UBS AM, added: “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.”