With glaciers melting and ocean water expanding leading to rising seas, climate change is already impacting individuals, companies and financial organizations. While this creates risks, it will also bring investment opportunities.
Our UBS Corporate Active Climate Aware strategy aims to address climate change as a systemic problem and invests in companies that will be successful in a low-carbon economy.
Investing sustainably is becoming increasingly important and our solution is a portfolio diversified across sectors whilst maintaining an investment grade average rating, with a low-carbon footprint.
Seeks to achieve 30% mitigation of climate risk while seeking outperformance through active management
Taking a holistic approach to selecting companies that are leaders in fighting climate change
Refinancing of debt obligations gives fixed income investors more opportunities for corporate engagement and encourages better behavior
Our diversified, actively managed bond portfolios take a strong thematic position with diversification opportunities in sectors where climate and environmental risk are most relevant.
Climate focus across all steps of the investment process
Continuous risk management and communications process
Market timing and sector rotation (like industry and rating) based on fundamental and qualitative analysis including ESG and climate aware
Issuer and issue selection based on fundamental and qualitative analysis including ESG and climate aware
Combination of top-down and bottom-up strategies in a portfolio considering all climate goals
"'Best execution "'of investments in the market
Continuously feeding back into strategy
Our investment process which shows a climate focus across all five steps
Collaboration is at center of UBS-AM's expertise
- The experienced portfolio management team combines fundamental credit insights and proprietary ESG scores generated by UBS credit analysts with robust portfolio construction and top down insights.
- The final portfolio’s objective is to minimize climate risk while simultaneously delivering a rate of return consistent with its investment approach.
- The team also benefits from its collaboration with a dedicated UBS sustainability investing team that plays a key role in engagements with portfolio companies.
Driving change through active engagement
- Engagement is an essential tool in our investment process in order to understand and influence the actions and progress companies are making in adaptation, mitigation and transition toward a low carbon future.
- In particular, we aim to actively engage with companies in the transition category, as it is critical to drive the business model transformation and commitments towards a low-carbon future.
- This effort is supported by UBS Group climate change commitment and augmented by our stewardship actions across UBS-AM. Refinancing of debt obligations provides more opportunities for corporate engagement.
UBS – your partner in sustainable investing
- Today, UBS Asset Management ranks as the 6th largest sustainable investing focused manager by assets under management globally with USD 48 billion1 and has USD 357 bn in ESG integrated assets under management. We are also the 2nd most successful in raising net new money over the last 12 months.
- We are also a leader in sustainability data and committed to supporting clients in their own climate change transition.
- Putting that commitment into action, we continue to focus on the development of investor relevant solutions.