UBS House View Monthly: Invest with vision

Questions you can ask your UBS Financial Advisor

  • Does incorporating social responsibility into investment decision-making mean sacrificing returns?
  • What kind of investments will have the most direct impact on the causes I care about?
  • How can I integrate environmental, social and governance (ESG) criteria into my investing strategy?

The investment world has changed. The perception used to be you might have to sacrifice returns if you wanted to invest in ways that made a positive social impact. Not anymore. In fact, including social responsibility as part of your investment decisions can actually help de-risk, diversify and enhance returns.

In a new issue of UBS House View monthly letter, "Sustainable performance (PDF, 962 KB)," CIO Americas, Wealth Management (CIO) examines how the sustainable investing market has broadened and deepened, enabling private investors to now achieve the goals of traditional diversified portfolios with sustainable assets.

In this monthly letter, our strategists outline some of the sustainable investing exposures they believe can be used to construct portfolios with a similar risk-return profile to traditional portfolios, including:

  • Bonds, including green bonds and Multilateral development bank (MDB) bonds
  • Equities, including thematic equities and those exposed to various degrees of environmental, social and governance (ESG) factors

CIO also discusses two new House View preferences this month

  • Within its foreign exchange strategy, CIO now prefers a basket of four high-yielding emerging market (EM) currencies vs. a set of four pro-cyclical lower-yielding counterparts.
  • CIO is also now overweight a diversified basket of EM local currency bonds against government bonds.

For more on CIO’s investment outlook and portfolio recommendations, read Sustainable performance (PDF, 962 KB).

Is your portfolio prepared for a changing investment environment? Together we can find an answer. Connect with your UBS Financial Advisor or find one.

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