Aon launches high conviction MAC fund

Aon has launched a sustainable multi asset credit (MAC) fund in the UK investing in high conviction MAC strategies.

The fund will have a focus on sustainability and climate transition, and align itself with the United Nations Sustainable Development Goals, while aiming to deliver attractive risk-adjusted returns. The fund will invest in bonds that are well aligned with environmental, social and governance (ESG) themes and meet one of four criteria: bonds with proceeds earmarked for a specific project aligned to ESG goals (labelled bonds); bonds from an issuer whose products or services are aligned with ESG goals; bonds where the issuer is a sector leader on ESG themes or is transitioning to a more sustainable business model; or bonds from issuers that are positioned to drive positive change in companies’ practices through active engagement.

The underlying strategies are buy-rated by Aon, with the four managed funds selected for an “advanced” ESG rating in addition to sustainability.

Available to Aon’s UK advisory or fiduciary management pension scheme clients, the fund has assets under management of £167 million, with a further £189 million transitioning into the fund.

“The Aon Sustainable Multi-Asset Credit Fund is the second fund on our platform that actively pursues ESG opportunities rather than just integrating ESG considerations into the investment process,” said Geri McMahon, partner and co-head of responsible investment at Aon.