“UBS Wealth aims to capture “impact delta” in sustainable portfolio” – Impact Alpha – April 16, 2018

In an article published on April 16, 2018 ImpactAlpha explained that the “impact is not always in companies’ practices when an investment is made; it’s in the improvement in those practices over the life of the investment.

UBS’s ‘ESG Engagement Equities’ strategy will focus on small- and mid-size listed companies in emerging markets, where there are opportunities to improve labor standards, supply chain management, and environmental practices.

‘Shareholder engagement is most impactful when it focuses on companies that are not yet aware of global best practices,’ UBS Wealth’s James Gifford tells ImpactAlpha.

The Swiss bank has made its sustainable portfolio, which invests in social and environmentally-focused stocks and bonds, available to wealth management clients in Asia, as well as in Switzerland. The portfolio primarily uses ESG (for environmental, social and governance) screening for green bonds, corporate bonds, stocks and other assets. UBS defines 27% of the portfolio as impact investing, which includes World Bank bonds and active shareholder engagement. The ‘ESG Engagement Equities’ strategy is being managed by Hermes Investment Management.

You may read the article on the ImpactAlpha internet site.