UBS AM and Aon launch climate transition fund

UBS Asset Management and Aon have co-developed and launched a new climate transition fund. 

The UBS Global Equity Climate Transition fund aims to favour companies that are better placed for the transition to a low carbon economy and have higher sustainability characteristics than the benchmark.

Aon seeded the fund with over £700m last month that had previously been invested in indexed equities in its MasterTrust and Group Personal Pension Plan.

UBS AM said that the fund also tilts towards companies aligned with certain UN Sustainable Development Goals and will follow the firm's own stewardship activities such as outcomes-oriented corporate engagement programs and aligned voting practices.

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Ian Ashment, head of portfolio engineering and trading, UBS AM said: "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."