UBS advises private clients to pick ‘sustainable’ investments By Reuters

© Reuters. Logo of Swiss bank UBS is seen in Zurich


LONDON (Reuters) – UBS Group (S:) said on Thursday that it would advise private clients investing globally to choose sustainable investments over more traditional options, the first major financial institution to do so.

Money has flowed into a range of sustainable investments in recent years as policymakers look to retool the financial system in the fight against climate change and “build back better” from the economic ravages of the COVID-19 pandemic.

UBS, which manages $2.6 trillion in assets for some of the world’s wealthiest people, said it believed a 100% sustainable portfolio could deliver the same or potentially higher returns and also offer strong diversification benefits to clients.

“The shift in preferences toward sustainable products and services is only just beginning,” said Iqbal Khan, co-president of UBS Global Wealth Management.

“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.”

UBS said clients currently have around $500 billion invested in its “core” sustainable assets, such as Green Bonds and low-carbon index funds.

While traditional investments such as plain vanilla bonds or a mainstream stock index would still be more suitable in some circumstances, UBS said the coronavirus pandemic had fuelled its belief that a fundamental shift in markets was underway.

“COVID-19 has put the exclamation point on one of the most important shifts in financial services in a generation,” said Tom Naratil, co-president of UBS Global Wealth Management and president of UBS Americas.

“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.”

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Be the first to comment

Leave a Reply

Your email address will not be published.