UBS will offer its clients in Asia portfolios invested only in green, regional stocks and bonds.
UBS is launching a cross-asset portfolio in Asia based on sustainable investing. The Swiss wealth giant cites increasing Asian client demand for impact investment products as the impetus behind its new green portfolio, which follows a similar launch in Europe earlier this year.
The portfolio invests in both active and passive funds with the minimum investment for clients in Asia set at $500,000. It has four equity classifications and three under the fixed income segment.
The biggest driving force behind a sustainable way of life is the so-called millennial generation: the highly sought-after segment of the population that is currently aged 16 to 34.
Investment Lags
However despite the hype surrounding impact investing, more than half Asia's wealthy next generation has yet to make a single impact investment.
A recent survey of the next generation of high and ultra-high net worth people in Asia conducted by Geneva-based Lombard Odier found that virtually all respondents – 98 percent – are looking to increase their allocations to impact investments.
Despite the enthusiasm to make a difference, just 3 percent wanted to convert their money into 100 percent impact-driven investments, according to the survey.
