Bringing Sustainable Investing to Scale - Engaging HNWI and Family Offices

8 November 2012

Jaume Iglésies UBS WM UHNW - Values-Based Investing

1

Ready, steady, go!

• We have something really great to offer to HNW/FO

– Returns

– With meaning

• Most of the HNW/FO could be potentially interested and ready to run after such a solution

2

The HNW/FO view: a hurdle race

• HNW/FO often see the way to sustainable products not as a pleasant walk but rather as a hurdle race

3

In principle yes, but…

Socially Responsible Investing, Sustainable Investing, Best in Class, Exclusion, Impact Investing, Mission Investing, TBL, etc

Sustainability is something blurry between charity and solar

How do you decide what is sustainable or not?

I want no experiments with my money

This is no good time for equity markets

There is no intention to improve the world but to better market products

Can financial institutions talk with credibility about sustainability?

What do you call it?

What is it?

How do you do it?

It negatively impact returns

It is only equity

It is not measurable

It is a marketing exercise

Can you talk about it credibly?

How do I know if I am really doing any good?

4

Many get exhausted and give up

Would you invest in a product that?

•Has different names

•You don't fully understand what it is

•You don't fully understand how it works

•Is less profitable

•You can't measure what it promises

•You are sceptical about its purpose

5

A relay race

• To make matters more challenging, more than one person needs to go overcome the hurdles (to be convinced)

– The beneficial owner

– The Family Office

– Often a client advisor/relationship manager who works for the financial institution that provides financial products to the beneficial owner / Family Office

• The race becomes a relay race, where all runners need to be engaged. Otherwise the baton will fall.

6

The frame has been built. Now it needs to be filled up

• Some good infrastructure has been built: products, methodologies, ratings, etc

• However the current penetration in the European HNW/FO is still very low

– HNWI Sustainable Investment Market: aprox. 10 trn

– Sustainable investments penetration rate: 10%

• We are far from reaching the market potential

7

Support HNW/FO in crossing the finish line

Be conscious of average client perceptions

Convey an easy value proposition (despite internal complexity)

Integrate sustainability in the standard client advisory process

Integrate sustainability in the standard investment process

Further educate – clients but above all client advisors

Innovation takes time, persistence and courage

8

Contact information

www.ubs.com

Jaume Iglésies

UBS AG, WM UHNW Values-Based Investing

Talacker 21, P.O. Box, CH-8098 Zürich

Tel. + 41 44 237 10 20Mobile +41 79 572 02 66

jaume.iglesies@ubs.com