UBS Global Wealth Management will give ESG scores to funds

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 03, 2018

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.

Latest News

Maryland bars advisor over charging excessive fees to clients
Maryland bars advisor over charging excessive fees to clients

Blue Anchor Capital Management and Pickett also purchased “highly aggressive and volatile” securities, according to the order.

Wave of SEC appointments signals regulatory shift with implications for financial advisors
Wave of SEC appointments signals regulatory shift with implications for financial advisors

Reshuffle provides strong indication of where the regulator's priorities now lie.

US insurers want to take a larger slice of the retirement market through the RIA channel
US insurers want to take a larger slice of the retirement market through the RIA channel

Goldman Sachs Asset Management report reveals sharpened focus on annuities.

Why DA Davidson's wealth vice chairman still follows his dad's investment advice
Why DA Davidson's wealth vice chairman still follows his dad's investment advice

Ahead of Father's Day, InvestmentNews speaks with Andrew Crowell.

401(k) participants seek advice, but few turn to financial advisors
401(k) participants seek advice, but few turn to financial advisors

Cerulli research finds nearly two-thirds of active retirement plan participants are unadvised, opening a potential engagement opportunity.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today’s choppy market waters, says Myles Lambert, Brighthouse Financial.

SPONSORED Beyond the dashboard: Making wealth tech human

How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave