UBS makes Sustainable Investments its preferred solution for clients of its USD2.6 trillion global Wealth Management Business
UBS has announced that it is the first major global financial institution to recommend sustainable over traditional solutions for private clients investing globally.
Managing approximately half a trillion US dollars in core sustainable assets, this reinforces UBS’s nearly 25-year track-record in sustainable investing across all its business divisions, the firm said in a press release.
While traditional investments will remain most suitable in some circumstances, UBS believes a 100% sustainable portfolio can deliver similar or potentially higher returns compared to traditional investment portfolios and offer strong diversification for clients investing globally, read the press statement. Year to date, major sustainable indices have performed better than traditional equivalents.
Iqbal Khan, Co-President, Global Wealth Management, UBS, said: “The shift in preferences toward sustainable products and services is only just beginning. We believe sustainable investments will prove to be one of the most exciting and durable opportunities for private clients in the years and decades ahead.”
Tom Naratil, Co-President, Global Wealth Management, and President, Americas, UBS, said: “Covid-19 has put the exclamation point on one of the most important shifts in financial services in a generation. The pandemic has brought the vulnerability and interconnected nature of our societies and industries to the forefront of investors’ minds and shown that sustainability considerations cannot be ignored.”
With a nearly 25-year track-record in sustainable investing, UBS’s award-winning team2 was the first to develop fully diversified sustainable portfolios for private clients, which have now been tested through both bull and bear markets.
Mark Haefele, Chief Investment Officer, Global Wealth Management, UBS, said: “Not all sustainable investments are created equal. Investors need a properly diversified sustainable portfolio that has the flexibility to source new opportunities and consider new risks. A well-designed sustainable portfolio can adapt to evolving market and economic environments, and help clients weather the kind of volatility that we expect to persist throughout much of the decade ahead.”
Huw van Steenis, Chair of UBS’s Sustainable Finance Committee and Senior Advisor to the CEO, said: “Sustainable finance is a firm-wide priority for UBS and our aim is to help clients take advantage of new opportunities and manage 21st century risks more smartly. As sustainable finance has moved into the mainstream, it is a critical component for clients and a strategic growth opportunity for UBS.”
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