UBS has announced that  sustainable investments are now the firm’s preferred solution for private clients investing globally, making it the first major global financial institution to make such a recommendation.

While traditional investments will remain most suitable in some circumstances, UBS believes a 100% 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.

“Covid-19 has put the exclamation point on one of the most important shifts in financial services in a generation,” points out 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.”

With a nearly 25-year track record in sustainable investing, UBS – which manages US$488 billion in core sustainable assets – was the first to develop fully diversified, sustainable portfolios for private clients, and the portfolios have been tested through bull and bear markets.