- New fund will enable investors to support the transition to a low-carbon economy
- Fund to invest in companies and stocks - aligned with UN Sustainable Development Goals
- €330m will initially be invested from The Aon Ireland MasterTrust
- Assets under management in The Aon Ireland MasterTrust surpass €2.5bn1
DUBLIN, April 8 - Aon plc (NYSE: AON), a leading global professional services firm, has announced that it is joining forces with Irish Life Investment Managers Limited (‘ILIM’) to launch a new climate transition fund in Ireland.
The €500m Climate Transition Equity Fund will enable investors in Ireland to support the transition to a low-carbon economy. The fund will tilt towards companies that are working to achieve the UN Sustainable Development Goals relating to climate action, resource scarcity, healthy ecosystems and basic social needs.
Building on Aon’s long-standing relationship with ILIM, the new fund’s rules-based investment strategy uses environmental data and aims to decarbonize over time in line with the Intergovernmental Panel on Climate Change’s 1.5°C warming limit and reaching net zero CO2 emissions globally around 2050.
An initial investment of €330m will come from The Aon Ireland MasterTrust. Total assets under management (AUM) in The Aon Ireland MasterTrust surpassed €2.5bn at the end of 2023, with a further €200m onboarded by the end of February 2024. With over 39,000 members, this makes Aon Ireland one of the largest players in the workplace pensions market in Ireland.
Underpinning the Climate Transition Equity Fund’s environmental and social objectives is Aon’s commitment to responsible investing, which ensures that Environmental, Social and Governance (“ESG”) metrics are integrated within the management of the fund.
This builds on Aon’s strong track record of helping institutional investors make more informed and more responsible investment decisions in alignment with their fiduciary duties, regulatory requirements, and values or commitments.
Denis Lyons, Head of Investment, Aon Ireland said: “Increasingly investors want to support the transition to a low-carbon economy and make a positive social impact. Responsible investments can help play a critical role in addressing global challenges including climate change and the pressing challenges facing our society.
“That’s why we’re launching our new Climate Transition Equity Fund in Ireland with an initial €330m investment from The Aon Ireland MasterTrust. Through the creation of the new fund, we can create new growth opportunities by investing in companies and stocks that accelerate the move to a more sustainable future.
“At Aon Ireland, helping clients manage risk — including ESG risk — is at the core of what we do. By leveraging the expertise of our team as well as our data and analytics capabilities, we can help provide the clarity that is needed for investors to make responsible investment decisions while providing strong financial returns over the long-term.”
Colin Cunningham, Head of Global Corporate & Institutional Distribution, ILIM said: “This was a great opportunity to develop a unique solution with Aon for their clients. Our local and international partners continue to leverage our capabilities to build products aligned with their specific ESG policies and objectives.”
Alan Duffy, ILIM’s Head of Sustainable Integration and Solutions said: “Utilising our responsible investing expertise, proprietary quantitative research modelling framework and highly rated fund management capabilities, we are proud to collaborate with Aon on the development of this customised fund. The solution allows investors to harness the opportunities that moving to a more sustainable future brings and enables its evolution over time.”
1 Effective 31 December 2023
About Aon
Aon plc (NYSE: AON) exists to shape decisions for the better — to protect and enrich the lives of people around the world. Our colleagues provide our clients in over 120 countries and sovereignties with advice and solutions that give them the clarity and confidence to make better decisions to protect and grow their business.
Aon Solutions Ireland Limited trading as Aon, is the founder of the AON Ireland MasterTrust and is a private company limited by shares and regulated by the Central Bank of Ireland. Registered in Ireland No. 356441. Registered office: 5th Floor, Block D, Iveagh Court, Harcourt Road, Dublin 2, D02 VH94, Ireland.
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About Irish Life Investment Managers Limited
Irish Life Investment Managers Limited (‘ILIM’) is an Irish-based, global asset management company, working with a wide range of institutional clients including insurance companies, wealth managers, pension schemes, fiduciary managers and sovereign wealth funds across Europe and North America. ILIM manages over €100bn in AUM on behalf of its clients and provides market-leading expertise to help institutional investors design and construct products in line with their strategies.
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