How to invest your money sustainably

When I look at how my teenage daughter has taken part in the “Fridays for Future” protests, I can safely say that this is something that will last. Companies and investors will find a different clientele in the future. This generation is proactively demanding that we become more ecologically aware and less egocentric. I believe that the shift towards sustainable products and services has only just begun. The COVID-19 crisis has reinforced this trend and emphasized the vulnerability and interconnectedness of the economy and society. It has shown us that the growing push towards sustainability cannot be ignored.

Whether an investment is sustainable or traditional, it must always perform well. The key factors are risk, returns, liquidity and costs. When opting for sustainable investments, the investor must also consider which values are important to them. For example, does it matter if a company pays minimum wages, or that female workers have the same salaries as their male colleagues? You choose the investment according to your personal preferences and values. On the other hand, not every single aspect that you regard as sustainable will be feasible all the time. Even if you focus on sustainability as an investor, you have to be able to make compromises – that’s how things work in the real world.

Our core products include sustainable investment funds. We offer a selection of various equity and bond solutions that are optimized in terms of both the return profile and the sustainability profile. One example is the Long Term Themes equity fund, which invests in companies concerned with sustainable megatrends such as the consequences of population growth, aging and urbanization.

For investors looking for a broadly diversified investment strategy fund with a focus on sustainability and which matches their individual risk profile, the recently repositioned UBS Strategy Funds Sustainable are an attractive option. As the name suggests, these funds are structured and managed with express consideration for sustainability goals.

UBS Vitainvest investment funds also offer sustainable pension solutions that combine the benefits of our established Vitainvest investment funds with the advantages of sustainable investments. Sustainable investing is especially appropriate when saving for your retirement, because both the investments and its effects are, by definition, long term.

The expansion of sustainable investments is one of the central themes of UBS’s corporate strategy. There will be new solutions to address sustainability issues across all asset classes. In defining these new products, we look, for example, at the UN's Sustainable Development Goals, the CO₂ footprint and sustainability ratings. We are planning to launch green bonds, new topic-based investment solutions in the areas of health and the environment, as well as other sustainable ETFs.

Sustainability is suitable for everyone.

The general rule is: the sooner the better. But of course it depends on your individual situation in life. If a client wants to build a house in five years’ time, then they should not choose an investment with a high proportion of shares. This is precisely why it’s worth obtaining advice from UBS. We work together with our clients to define which investment solution best suits their current situation.