On the go: The circa £9.3bn Essex County Council Pension Fund has partnered with UBS Asset Management and Hymans Robertson to launch the UBS Life Global Equity Sustainable Transition Fund.
As part of the fund’s net zero objective, it will invest in companies believed to be best-placed for the transition to a low-carbon economy, with intended superior sustainability characteristics than the FTSE Developed Index benchmark.
The pension fund decided to partner with UBS and Hymans on the launch of the new sustainable fund after reviewing its investment strategy, which revealed a need for a more holistic approach than those offered by existing indices and climate-specific solutions, in line with its commitment to become net zero by 2050.
The UBS Life Global Equity Sustainable Transition Fund aims to deliver returns broadly in line with global developed equity markets, with better exposure to metrics that measure the expected contribution of companies towards climate change, and alignment with specific UN goals, such as good health and affordable clean energy.
The fund, which will be available to the wider UK institutional pensions market, also aims to align with the EU Climate Transition Benchmark regulation, such that its weighted average carbon intensity is lower than the benchmark or reduces year on year.
The fund also excludes companies from the investment universe in line with CTB guidelines and UBS sustainability exclusion policy.
This article first appeared on MandateWire.com
