Reuters
Published Sep 10, 2020 03:20AM ET
Updated Sep 10, 2020 04:06AM ET
LONDON (Reuters) - UBS Group (S:UBSG) 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."
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.