UBS AM and Aon team up to launch emerging markets climate transition fund

investmentweek.co.uk:

The fund expands on the UBS Global Equity Climate Transition fund launched in 2022.

The fund expands on the UBS Global Equity Climate Transition fund, which was launched in 2022, and will invest in emerging market companies as well as stocks related to climate change and aiming to decarbonise over time.

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The strategy will also gain exposure to companies aligned to the UN Sustainable Development Goals in relation to health, clean energy, decent work, responsible consumption and production and climate action.

Aon will seed the fund via its defined benefit and defined contribution solutions with a total of £190m: £120m from DC and £70m from DB.

Joanna Sharples, CIO of Aon DC Solutions, said: «Clients and members expect us to support the low-carbon economy and in an innovative, cost-efficient way. But that is something we could not previously do with our emerging markets exposure. Now, UBS Asset Management's strong sustainable investing and indexing capabilities have enabled us to create another innovative product which we hope will help meet our members' needs.»  

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Ian Ashment, head of portfolio engineering and trading at UBS AM, added: «We are proud to once again collaborate with Aon to provide pension plans with the ability to mitigate climate-related investment risks in emerging markets, while also considering social aspects.

»The transition to a low-carbon economy is vital to reduce the risk of climate change, and this fund brings together our proprietary climate aware framework and global stewardship program to collaborate with companies to work towards a lower carbon future, linking climate