UBS launches Global Climate Aware Fund

Fund manager UBS Asset Management has launched a rules-based global equity strategy fund, with a focus on addressing climate change.

The Irish-domiciled fund aims to support a transition to a low carbon economy, to help limit global warming to below two degrees as agreed in the Paris Agreement on Climate Change. The fund has been seeded with over €250 million. It aims to have a carbon footprint 40% to 50% lower than a passive global equity portfolio through positive and negative tilts to index constituents. It also invests in companies set to benefit from renewable energy and associated technologies.

UBS head of systematic and index investments, Ian Ashment, said: “UBS Asset Management aims to be a leader in sustainability. As clients seek greater alignment between their investment policy and environmental, social and governance concerns we are pleased to have added to our range of passive-like, rules-based investment strategies.”

The fund has a low tracking error to the MSCI World index of less than 50 basis points, with no direct exclusions. It also has a focused voting and engagement strategy.