UBS Asset Management (UBS AM) and Aon have collaborated on the UBS Global Emerging Markets Equity Climate Transition Fund. Aon’s Defined Contribution and Defined Benefit Solutions will seed the fund with £190 million (US$241 million). The fund’s investment strategy invests in emerging market (EM) companies and applies positive and negative ‘tilts’, when compared to a broad EM index, towards stocks relating to climate change and aiming to decarbonise over time in line with The Intergovernmental Panel on Climate Change’s 1.5°C scenarios. The fund will also gain exposure towards companies that align with the UN Sustainable Development Goals relating to health, clean energy, decent work, responsible consumption production, and climate action and align with UBS AM’s stewardship approach which includes engaging with companies on climate-related issues and social themes. Ian Ashment, Head of Portfolio Engineering and Trading at UBS AM said: “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 action with inclusive growth.”
