UBS launches US equity-focused Climate Aware Equity Index to help investors meet environmental and financial goals

Rhea-AI Summary

UBS has launched the US version of the UBS Climate Aware Equity Index, aimed at providing investment exposure to a low carbon economy. This rules-based strategy caters to the growing demand for eco-conscious investment products, aligning with retirement goals and mitigating climate risks. Featured in a registered index-linked annuity by Global Atlantic, the Index includes large and medium-sized US companies with a focus on climate performance. It employs a systematic approach to evaluate companies’ carbon footprints and emissions profiles, utilizing ESG scoring from a recognized market provider.

Positive

• Launch of the UBS Climate Aware Equity Index targeting eco-conscious investors.
• Index included in a rapidly growing category of Registered Index Linked Annuities (RILAs).
• Systematic, rules-based selection of companies fosters investment in low carbon economy.

Negative

• None.

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.

The 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

About the UBS Investment Bank
The Investment Bank provides corporate, institutional and wealth management clients with expert advice, innovative solutions, execution and comprehensive access to international capital markets. It offers advisory services and provides in-depth cross-asset research, along with access to equities, foreign exchange, precious metals and selected rates and credit markets, through its business units, Global Banking and Global Markets. The Investment Bank is an active participant in capital markets flow activities, including sales, trading and market-making across a range of securities.

About UBS
UBS provides financial advice and solutions to wealthy, institutional and corporate clients worldwide, as well as private clients in Switzerland. UBS is the largest truly global wealth manager, and a leading personal and corporate bank in Switzerland, with a large-scale and diversified global asset manager and a focused investment bank. The bank focuses on businesses that have a strong competitive position in their targeted markets, are capital efficient, and have an attractive long-term structural growth or profitability outlook.

UBS is present in all major financial centers worldwide. It has offices in more than 50 regions and locations, with about 30% of its employees working in the Americas, 30% in Switzerland, 19% in the rest of Europe, the Middle East and Africa and 21% in Asia Pacific. UBS Group AG employs more than 72,000 people around the world. Its shares are listed on the SIX Swiss Exchange and the New York Stock Exchange (NYSE).

Disclosures
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.

ForeStructured Growth registered index-linked annuity is issued by Forethought Life Insurance Company, 10 West Market Street, Suite 2300, Indianapolis, Indiana. FA1901SPDAX-01 and FA4131-01 and rider forms FA4132-01, FA4133-01, FA4134-01, ICC14-FL-FIATI, ICC14-FL-FIANC.

ForeStructured Growth is underwritten and distributed by Global Atlantic Distributors, LLC.

Global Atlantic Financial Group (Global Atlantic) is the marketing name for The Global Atlantic Financial Group LLC and its subsidiaries, including Accordia Life and Annuity Company, Commonwealth Annuity and Life Insurance Company, Forethought Life Insurance Company and Global Atlantic Re Limited. Each subsidiary is responsible for its own financial and contractual obligations. These subsidiaries are not authorized to do business in New York.

This material is for distribution only under such circumstances as may be permitted by applicable law. It has not been prepared with regard to the specific investment objectives, financial situation or particular needs of any specific recipient. It is published solely for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments or to participate in any particular trading strategy. Options, derivative products and futures are not suitable for all investors, and trading in these instruments is considered risky. The recipient should not construe the contents of this material as legal, tax, accounting, regulatory, or other specialist or technical advice or services or investment advice or a personal recommendation. Foreign currency rates of exchange may adversely affect the value, price or income of any security or related instrument mentioned in this material. No representation or warranty, either express or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein except with respect to information concerning UBS AG, its subsidiaries and affiliates ("UBS"), nor is it intended to be a complete statement or summary of the securities markets or developments referred to in this material or a guarantee that the services described herein comply with all applicable laws, rules and regulations. It should not be regarded by recipients as a substitute for the exercise of their own judgment. Any opinions expressed in this material are subject to change without notice and may differ or be contrary to opinions expressed by other business areas or groups of UBS as a result of using different assumptions and criteria. UBS is under no obligation to update or keep current the information contained herein, and past performance is not necessarily indicative of future results. UBS, its directors, officers, employees or clients may have or have had interest or long or short positions in the securities or other financial instruments referred to herein and may at any time make purchases and/or sales in them as principal or agent. UBS may act or have acted as market-maker in the securities or other financial instruments discussed in this material. Furthermore, UBS may have or have had a relationship with or may provide or have provided investment banking, capital markets and/or other financial services to the relevant companies. Neither UBS nor any of its directors, officers, employees or agents accepts any liability for any loss or damage arising out of the use of all or any part of this material or reliance upon any information contained herein. Additional information may be made available upon request. Not all products or services described herein are available in all jurisdictions and clients wishing to effect transactions should contact their local sales representative for further information and availability. © UBS 2022. All rights reserved.

© UBS 2022. All rights reserved. The key symbol and UBS are among the registered and unregistered trademarks of UBS.

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Media Contact:

Alison Keunen

alison.keunen@ubs.com

+1 212-713-2296

https://www.ubs.com

Source: UBS

FAQ

What is the UBS Climate Aware Equity Index?

The UBS Climate Aware Equity Index is a rules-based strategy designed to provide investment exposure to companies transitioning to a low carbon economy.

When was the UBS Climate Aware Equity Index launched in the US?

The UBS Climate Aware Equity Index was launched on July 20, 2022.

How does the UBS Climate Aware Equity Index select its companies?

The index uses a systematic approach to select companies based on their climate scores, assessing their carbon footprint and emissions profiles.

What type of companies are included in the UBS Climate Aware Equity Index?

The index includes equity securities from large and medium-sized US companies that are expected to perform well in a low carbon economy.

Who collaborates with UBS on the Climate Aware Equity Index?

UBS collaborates with Global Atlantic to feature the Climate Aware Equity Index in their registered index-linked annuities.