UBS launches US equity-focused Climate Aware Equity Index to help investors meet environmental and financial goals
July 26, 2022 by UBS
NEW YORK–(BUSINESS WIRE)–UBS today announced the launch of the US version of the UBS Climate Aware Equity Index, which is a rules-based strategy that aims to provide investment exposure to the long-term theme of transitioning to a low carbon and climate resilient economy.
he index aims to serve the increasing demand for investment and retirement products that not only help investors achieve their investment goals but also help mitigate climate-related risks in their portfolios and capture environmental objectives within the investment philosophy.
Featured by Global Atlantic in a registered index-linked annuity (RILA), the UBS Climate Aware Equity Index is pioneering climate-focused indices in the US RILA market. The Index includes equity securities of large and medium sized US companies, while tilting the allocation towards companies that are expected to be successful in a low carbon economy.
The Index applies a systematic, rules-based approach to select and weight Index constituents based on climate scores. Current and forward-looking data is used to assess a company’s carbon footprint and gauge its forward-looking carbon emissions profile. UBS Climate Aware Equity Index scoring aims to consider key risks and opportunities related to climate change using six climate scores; carbon emission, coal energy, fossil fuel reserves, renewable energy, emissions trajectories and severe weather events.
Ghali El Boukfaoui, Head of Insurance Solutions at UBS Investment Bank said: “We are proud to collaborate with Global Atlantic around UBS Climate Aware Equity index which allows investors to access the theme of a low carbon and climate resilient economy, exclusively within Global Atlantic inaugural Registered Index Linked Annuity. We are happy to offer retirement savers with a unique access to a tried and true investment strategy and hope this can help Global Atlantic clients build a retirement portfolio that is both well performing and climate conscious.”
“Registered index linked annuities are the fastest growing category of retirement products,” said Rob Arena, Co-President and Head of Individual Markets at Global Atlantic. “The inclusion of climate-focused index options within RILAs can be a meaningful way for environmentally-conscious clients to link their savings strategy with sustainability principles and values.”
The Index is maintained by a third-party benchmark administrator and uses ESG scoring information provided by a recognized market data provider.
Notes to Editors
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This material is authorized for distribution only when accompanied or preceded by a prospectus and an applicable product brochure for the annuities being offered. The prospectus contains features, benefits, risks, fees, and other information regarding the registered index-linked annuity contract, which should be considered carefully before investing. You should read the prospectus carefully before investing money.
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