UBS Global Wealth Management will give ESG scores to funds

Assets under management with environmental, social and governance strategies have grown 44% over two years in the U.S.

Dec 3, 2018 @ 4:46 pm

By Greg Iacurci

UBS Global Wealth Management will score the environmental, social and governance strategies of investment funds available to its advisers and clients starting next year.

The scores will be placed on all long-only equity and bond mutual funds and exchange-traded funds on the firm's non-U.S. platform, the wirehouse announced Monday. The scores also will be used on similar funds and separately management accounts on the U.S. platform's list of highly recommended investments.

(More: Is ESG investing going mainstream?)

The firm will complete the assessments, meant to help advisers and clients screen in-house and third-party mutual funds based on ESG factors, by the end of 2019. Funds will be scored based on seven aspects of sustainability: pollution/waste, climate change, water, people, products/services, corporate governance and ethics.

UBS's chief investment office and investment platforms and solutions groups are tasked with applying the methodology.

(More: Advisers still think ESG strategies underperform)

The launch of the scores comes as ESG investing grows more popular. There was nearly $12 trillion in ESG-incorporated assets under management in the U.S. at the beginning of 2018, up 44% over two years, according to the Forum for Sustainable and Responsible Investment.

Fund-tracking data provider Morningstar Inc. launched ESG rankings for mutual funds in 2016.

0
Comments

What do you think?

View comments

Most watched

INTV

Young advisers envision a radically different business in five years

Fintech and sustainable investing are two factors being watched closely by some of the 2019 class of InvestmentNews' 40 Under 40.

INTV

Young professionals see lots of opportunity to reinvent the advice experience

Members of the 2019 InvestmentNews class of 40 Under 40 have strategies to overcome the challenges of being young in a mature industry.

Latest news & opinion

SEC clears up confusion over whether advisers can continue to call themselves fiduciaries

Despite an agency directive to eliminate the word 'fiduciary' in Form CRS, SEC officials say it's OK to use it.

InvestmentNews' 2019 class of 40 Under 40

Our 40 Under 40 project, now in its sixth year, highlights young talent in the financial advice industry. These individuals illustrate the tremendous potential of those coming up in the profession.

How to suspend Social Security benefits

Mary Beth Franklin says the move can boost future benefits but advisers and their clients should beware of unintended consequences.

Vermont establishes restitution fund for victims of investment fraud

Portion of settlements with financial perpetrators would supply the pool.

10 IBDs with the most variable annuity revenue

Although the popularity of VAs has declined in recent years, some independent broker-dealers still do a good business in them.

X

Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

Ad blocker detected. Please whitelist us or give premium a try.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print