Sustainable investing

The future in view

The world is changing rapidly and so are investors’ priorities.1

It’s becoming increasingly important to consider environmental, social and governance (ESG) factors with any investment. Why? Because companies that follow sustainability practices may see benefits to their businesses, making them potentially good investments—for your portfolio and for our future.2

We believe sustainability matters for all investors

In 2020, UBS made sustainable investments its preferred solution for wealth management clients wishing to invest globally.3 Whether you are primarily focused on financial returns or seeking to drive sustainable outcomes, ESG considerations can highlight risks and present new investment opportunities.2

As the world‘s leading sustainable investment manager, we‘re not new to sustainable investing.4 Having taken our first steps decades ago, we reached close to a trillion dollars in core sustainable investment assets at the end of 2020.5

Sustainability is central to our purpose, so it’s only natural that we’re putting sustainable investing where it belongs: at the heart of what we do.

Consider what matters when you invest

With any investment, it is important to understand the factors that can impact returns. Sustainable investing expands that set of considerations beyond financials to include ESG issues that can affect companies, cities and industries—and your returns.


Environmental

Includes water and waste management; ways of improving energy efficiency; and solutions to mitigate and adapt to climate change.


Social

Considers methods of ensuring better housing, education and health care; access to personal financing; and managing supply chains effectively.


Governance

Looks at issues of board diversity; and corporate transparency.

 

Will she always be this happy?

Live a good life on a healthy planet?

Can sustainable investing protect her future?

 

Education

Learn about sustainable investing

While sustainable investing is not new, it‘s still “new-to-me” for many investors

Growing acknowledgment of the interaction between social and environmental topics and corporate financial performance has strengthened the case for incorporating sustainability considerations into investment portfolios.

What is sustainable investing?

Sustainable investing is not an investment product, or an asset class. It’s an investment philosophy.

Investors increasingly show interest both in better understanding the positive and negative impacts of their investments on society and the environment, and in incorporating these considerations into how they construct and manage their portfolios.

3 ways you can incorporate sustainable investments in your portfolio

Exclude individual companies or entire industries if their areas of activity conflict with your values.

Integrate ESG factors into traditional investment process to align with sustainability objectives while seeking to improve risk and return expectations.

Invest with the intent to generate measurable environmental and social impact alongside a financial return.

Myth vs. reality

Myth

You give up returns with sustainable investments

Reality

Sustainable investing offers the potential for positive social impact, in addition to competitive financial performance.2 So it’s little surprise the global sustainable investment market is growing. 

 

Myth

You can’t measure the impact of a sustainable investment

Reality

Measured impact is a requirement of impact investing at UBS, so you can actually see the difference you’re making. Companies are increasingly reporting environmental, social and governance information related to their businesses.10 

Myth

Sustainable investing is only about protecting the environment

Reality

Sustainable investing incorporates social and governance considerations, in addition to environmental ones. Social and governance issues include health and safety, privacy and data security, labor management and business ethics.

 

Solutions

How UBS can help you with a range of choices

What we offer

 

  • Sustainable and thematic exchange traded funds, mutual funds and separately managed accounts5
  • Tailored private investment opportunities
  • Differentiated intellectual capital and investment framework driven by a dedicated research team

Approach sustainable investing your way

We can work with you so you will understand sustainable investing and related opportunities. Part of it is about finding the right starting point for you, based on your conviction and appetite to engage in sustainable investing.

One of the following approaches might be such a starting point for you. Whatever way, we are here to explore what works best for you:

Add it on

You might be interested to focus on a set of particular topics or themes, which you may add to your currently existing portfolio.

Run it in parallel

You may want to bring in SI by adding an SI portfolio next to your existing one. It will allow you to see how they both perform.

Switch completely

Should you want to dedicate more of your portfolio to sustainable investments, we can support you.

 

What do we include in our sustainable investing asset allocation?7

Fixed Income

Equities

 

Insights

Take a closer look at sustainable investing—and discover the difference it could make for your portfolio—and the world

Key findings

59%

of investors are more interested in sustainable investing as a result of COVID-198

69%

of women are highly interested in sustainable investing as a result of COVID-198

76%

of younger investors are highly interested in sustainable investing as a result of COVID-198

Research

 

Sustainable investing in action

Explore key topics and themes in sustainable investing9

People

People

Companies leading on the People topic retain, develop and promote well-being among their employees, encourage diversity and protect human rights throughout their operations.

Aligned SDGs:

Climate change

Climate change

Companies leading on the Climate change topic manage their carbon footprint and energy use effectively.

Aligned SDGs:

Pollution & waste

Pollution & Waste

Companies leading on the Pollution and waste topic have good environment management policies and systems; reduce packaging, recycle materials, manage hazardous waste, and limit toxic emissions.

Aligned SDGs:

Water

Water

Companies leading on the Water topic manage their water consumption efficiently and transparently.

Aligned SDGs:

Products & services

Products & services

Companies leading on the Products and services topic have sourced raw materials responsibly with strong social and environmental supplier standards and policies to promote safe and sustainable products.

Aligned SDGs:

Ethics & goverance

Ethics & governance

Companies leading on the Ethics and governance topic are fair and transparent on issues such as executive pay, board independence, tax and anti-corruption.

Aligned SDGs:

Get in touch

Together we can help you reach your goals.

Let's talk

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1 UBS “Sustainable finance—Ten trends for 2021,” 2021.

2 Source: UBS GWM CIO “A private investor perspective,” 9 September 2020.

3 This will be considered in the context of what is in the client's best interest, taking into account individual circumstances, goals, needs, interests and investment objectives.

4 For UBS Group AG; 2020 Euromoney Private Banking and Wealth Management Survey for Best Bank for ESG/Social Impact Investing.

5 Source: UBS 2020 Sustainability Report. Core sustainable investments are sustainable investment (SI) products that involve a strict and diligent asset selection process through either exclusions (of companies / sectors from portfolios where the companies/sectors are not aligned to an investor’s values) or positive selections (such as best-in-class, thematic or ESG integration and impact investing).

6 The ability to implement the approaches to sustainable investing will depend on the product or service selected; they are not available for all products, services or accounts offered through UBS.

7 Source: UBS GWM CIO “Sustainable Investing (SI) Portfolios,” April 2020. The UBS Sustainable Investing Strategic Asset Allocations (SI SAAs) are based on the same Capital Market Assumptions as the UBS House View SAAs and therefore have similar estimated total returns and total risks. In the SI approach, conventional asset classes are replaced with sustainable ones. Each exposure is selected to help investors achieve their financial return objectives while also targeting social and environmental objectives. The strategic asset allocation models were vetted and approved by the Wealth Management Americas Asset Allocation Committee (WMA AAC). The strategic asset allocation models are intended to provide a general framework to assist our clients in making informed investment decisions. They are provided for illustrative purposes, and were designed by the WMA AAC for hypothetical US investors with a total return objective under five different investor risk profiles: conservative, moderate conservative, moderate, moderate aggressive and aggressive. Your UBS Financial Services Inc. Financial Advisor can help you determine how a strategic allocation could be applied or modified according to your individual profile and investment goals. Asset allocation does not assure profits or prevent against losses from an investment portfolio or accounts in a declining market. Please note that UBS has changed its strategic asset allocation models in the past and may do so in the future.

8 Source: UBS Investor Watch “The new valuables,” June 2021. For this edition of UBS Investor Watch, we surveyed 3,800 investors with at least $1 million in investable assets. The global sample was split across 15 markets: Argentina, Brazil, mainland China, France, Germany, Hong Kong, Italy, Japan, Mexico, Russia, Singapore, Switzerland, the UAE, the UK and the US. The research was conducted in May 2021. Findings were compared to a study conducted in May of 2020 among more than 3,750 investors with similar asset levels and age groups.

9 Source: UBS GWM CIO “CIO sustainability scores for issuers,” 1 February 2021.

10 Source: www.thecaq.org.

Past performance not indicative of future results.

ESG/Sustainable investing considerations: Sustainable investing strategies aim to consider and in some instances integrate the analysis of Environmental, Social and Governance (ESG) factors into the investment process and portfolio. Strategies across geographies and styles approach ESG analysis and incorporate the findings in a variety of ways. Incorporating ESG factors or Sustainable Investing considerations may inhibit the portfolio manager‘s ability to participate in certain investment opportunities that otherwise would be consistent with its investment objective and other principal investment strategies. The returns on a portfolio consisting primarily of ESG or sustainable investments may be lower or higher than a portfolio where such factors are not considered by the portfolio manager. Because sustainability criteria can exclude some investments, investors may not be able to take advantage of the same opportunities or market trends as investors that do not use such criteria. Companies may not necessarily meet high performance standards on all aspects of ESG or sustainable investing issues; there is also no guarantee that any company will meet expectations in connection with corporate responsibility, sustainability, and/or impact performance. As a fi rm providing wealth management services to clients, UBS Financial Services Inc. offers investment advisory services in its capacity as an SEC-registered investment adviser and brokerage services in its capacity as an SEC-registered broker-dealer. Investment advisory services and brokerage services are separate and distinct, diff er in material ways and are governed by different laws and separate arrangements. It is important that clients understand the ways in which we conduct business, that they carefully read the agreements and disclosures that we provide to them about the products or services we off er. For more information, please review the PDF document at ubs.com/relationshipsummary. 

Sustainable Investing (SI) Portfolios(PDF, 648 KB): The objective of our Sustainable Investing (SI) portfolios is to provide investors, by design, with 100% SI exposures (excluding cash) that also have expected volatility-adjusted returns comparable to traditional portfolios.” & “The update added ESG engagement high- yield bonds to the SAA. Based on the UBS Capital Market Assumptions (CMAs), the SAAs have similar estimated total returns and total risks as the existing UBS House View SAAs.” & “The SI portfolio is an investment concept that enables SI- focused investors to generate market-rate returns using a diversified portfolio, while knowing that their investments incorporate an understanding of how they affect people and the planet.” & ”… our SI portfolios offer investors a full balance sheet solution that can provide returns comparable to a traditional strategic asset allocation, with an increased understanding of the effect of their capital on people and the planet.

Expiration: 11/30/22 Approval date: 11/1/2021 Review Code: IS2105808