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UK pension fund the National Employment Savings Trust (NEST) is to pump £5.5bn (€6bn) - its entire global exposure to development market equities - into the UBS Life Climate Aware World Equity fund, as part of an overhaul of its strategy to include a sweeping new climate change policy.
The policy outlines the £12bn defined contribution scheme’s plan to transition to Net Zero by 2050, using a combination of asset allocation, fund manager selection and monitoring, stewardship, and public policy.
Nest seeded the UBS fund to the tune of £130m when it launched in 2017. The passive strategy overweights companies contributing to the transition to a low-carbon economy, while underweighting heavy emitters. This tilt means more than £1.2bn will be removed from the biggest carbon emitters and into companies seen to be pioneering…