Incorporating Impact Goals into Traditional Asset Allocation

How can we transition our – or a client’s – portfolio to achieve both impact and financial goals, while honouring both our intentions and constraints?

UBS has worked with the Impact Management Project on a series of model portfolios that illustrate different combinations of impact and financial goals. These portfolios, along with insights gained along the way, are showcased in the download below, in the hope that we can contribute to the ongoing discussion about how best to incorporate impact considerations into asset allocation.

To attract a considerable portion of both private and institutional investors, for whom market returns are often a regulatory requirement, these portfolios aim for expected returns in line with market returns. For those investors who are flexible about their financial goals and want to maximise for a joint function of financial risk/return and impact risk/return (based on the five dimensions of impact), see this paper published with Root Capital.

Our partnership has been featured in a white paper for the 2018 WEF Annual Meeting, exploring UBS’s progress in meeting their commitment to the UN SDGs, in particular our pledge to raise $5bn of client money within five years to fund the SDGs.