The US investors surveyed trail all other
countries surveyed in adoption of sustainable investing in this
largest recurring study of High Net Worth Investors, although they
have the highest allocation into sustainable investments
- Significant generation divide among US
investors—72% of young investors have sustainable investments,
compared to only 6% of investors age 65+
- Adoption is low but growing—only 12% of
US investors have sustainable investments, compared to 39%
globally, but investors project an increase of 58% over the next
five years
- US investors who have made the foray
into sustainable investing are fully committed—49% of their
portfolio assets are dedicated to sustainable investments, the
highest of any country
- 51% of US investors surveyed expect
sustainable investment returns to match those of traditional
investments, compared to 50% of investors globally. Almost 1 in 5
US investors (19%) expect sustainable investments to outperform
traditional investments.
- Investors in China, Brazil and the UAE
are the most likely to hold some sustainable investments (60%, 53%
and 53% respectively)
- Confusion continues to hold US
investors back—66% of investors find the terminology around
sustainable investing perplexing, and 79% say gauging impact is
difficult
UBS today launched “Return on values,” the latest edition of its
UBS Investor Watch report. UBS Investor Watch is the world’s
largest recurring global study of High Net Worth Investors
(HNWIs).*
The study reveals stark differences in the sustainable investing
landscape. The US has the lowest rate of adoption at 12%, compared
to 39% of investors globally. China, Brazil and the UAE lead the
charge, with 60%, 53% and 53% of investors respectively indicating
they have sustainable investment holdings.
However, despite lower adoption, sustainable investors in the US
have the highest average allocation, with 49% of their portfolio
assets dedicated to sustainable investments. The average global
allocation is 36%.
“Investors see sustainable investing as the way of the future.
Across all ages, wealth levels and regions, many believe
sustainable investing will become a more mainstream approach over
time,” said Paula Polito, Global Client Strategy Officer, UBS
Global Wealth Management. “Many of the investors surveyed believe
that sustainable investments are wise investments and see no need
to compromise their personal values for financial returns.”
Young investors and those with the greatest wealth lead
momentum behind sustainable investing
While adoption today is low in the US, investors expect
sustainable investing to grow to 19% over the next five years, an
increase of 58% from today’s levels. In fact, almost a third (32%)
of US investors expect sustainable investing to become the “new
normal” in 10 years.
Younger investors and those with the greatest wealth are the
leading adopters of sustainable investing, both globally and in the
US. Seven in ten (72%) young American investors1 invest
sustainably, compared to only 6% of investors age 65+. Among the
ultra-rich,2 40% invest sustainably, compared to 8% of investors
with $1 million to $2 million of investable assets.
Confusion and comfort with their investment approach holds
investors back
The study finds that among non-adopters in the US, 85% are happy
with their existing investment approach, followed by 79% who say
that quantifying the impact of sustainable investments is a major
barrier.
Confusion about terminology is compounding the issue. Two-thirds
of US investors (66%) find the language of sustainable investing
perplexing, and less than a quarter (23%) are very familiar with
the term itself. Similarly, US investors make little distinction
among the three major sustainable investment approaches: exclusion,
integration and impact investing.
In the midst of this confusion, it is clear that advisors have
an important role to play, with sustainable investors listing their
financial advisors as the top influencers in their decision to
invest sustainably, followed by family and friends.
“The opportunity for growth in the US is vast, with young people
and wealthy investors leading the way and momentum growing,” said
Andrew Lee, Americas, Head of Sustainable and Impact Investing at
UBS Global Wealth Management’s Chief Investment Office. “Increasing
education on the benefits and establishing common conventions for
describing and measuring impact will help sustainable investing
become the new normal.”
No tradeoff between personal values and returns
The study shows that few investors expect to sacrifice returns
when investing sustainably. In fact, 70% of US investors believe
the returns from sustainable investments will match or surpass
those from traditional investments. They view sustainable companies
as more responsible, better managed and more forward-thinking—thus,
good investments.
To encourage further adoption of sustainable investing, UBS has
committed to raise at least $5bn in impact investments over five
years, in support of the UN Sustainable Development Goals. At Davos
2018, UBS announced the first 100% sustainable cross-asset
portfolios for private clients, targeting market rates of
risk-adjusted return as well as positive social and environmental
outcomes.
__________________________________
1 Aged 18 - 34 years. 2 With at least $50 million in investable
assets.
The key conclusions from all 10 markets can be found on the
main UBS Investor Watch website:
www.ubs.com/investorwatch
Notes to Editors:
About the research
* The cited research was conducted among more than 5,300
millionaires with at least $1 million in investable assets
(excluding property). The global sample was split across 10
markets: Brazil, China, Germany, Hong Kong, Italy, Singapore,
Switzerland, UAE, the UK and the US. The research was conducted
between June 2018 and August 2018.
About UBS
UBS provides financial advice and solutions to wealthy,
institutional and corporate clients worldwide, as well as private
clients in Switzerland. UBS' strategy is centered on our leading
global wealth management business and our premier universal bank in
Switzerland, enhanced by Asset Management and the Investment Bank.
The bank focuses on businesses that have a strong competitive
position in their targeted markets, are capital efficient, and have
an attractive long-term structural growth or profitability
outlook.
UBS is present in all major financial centers worldwide. It has
offices in 52 countries, with about 34% of its employees working in
the Americas, 34% in Switzerland, 18% in the rest of Europe, the
Middle East and Africa and 14% in Asia Pacific. UBS Group AG
employs approximately 61,000 people around the world. Its shares
are listed on the SIX Swiss Exchange and the New York Stock
Exchange (NYSE).
About UBS Global Wealth Management
As the world’s largest wealth manager, UBS Global Wealth
Management provides comprehensive advice, solutions and services to
wealthy families and individuals around the world. Clients who work
with UBS benefit from a fully integrated set of wealth management
capabilities and expertise, including wealth planning, investment
management, capital markets, banking, lending and institutional and
corporate financial advice.
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version on businesswire.com: https://www.businesswire.com/news/home/20180919005118/en/
UBSMaya DillonMedia Relations, UBS Global Wealth Management,
Americas212-713-3130 / 917-615-7094maya.dillon@ubs.com
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