Switzerland’s largest bank is following up on its pledge to place a higher emphasis on sustainable investments. UBS claims a first for its decision.
Sustainable investments will become the preferred solution for clients of UBS’ global wealth management, a $2.6 trillion business, the bank said in a statement. This will see the bank take the lead among its peers in making sustainable investments a reality, the firm added. UBS is managing $488 billion in core sustainable assets.
A Gradual Shift Towards a More Sustainable Future
UBS is convinced that while traditional investments will remain most suitable in some circumstances, a sustainable portfolio can deliver similar or potentially higher returns compared to traditional investment portfolios and offer strong diversification for clients investing globally. Year to date, major sustainable indices have performed better than traditional equivalents, the bank added.
The change in the bank’s approach to the portfolio mix will likely increase the share of sustainable investments as a percentage of the total. «The shift in preferences toward sustainable products and services is only just beginning,» said Iqbal Khan, co-head of UBS global wealth management.
