Sustainable Investments: Opportunity for Swiss Asset Managers

Swiss private banking is on the move. In addition to rising regulatory costs, fintech innovations and increased competition from other financial centers, changing client needs are also contributing to this, as Sabine Döbeli, Managing Director of Swiss Sustainable Finance, explains: "More and more customers want their investments to make a concrete contribution to a sustainable world. If banks do not respond enough to this need, they miss the opportunity to rely on a natural competitive advantage."

Study explains advantages of sustainable investments for client advisors

In its most recent study SSF therefore demonstrates with ten compelling arguments that sustainable investments represent a hitherto untapped opportunity for Swiss private banking. "For client advisors, such investments offer the opportunity to talk about interesting topics and personal concerns and thus deepen the relationship with clients," explains Dr. Falko Paetzold, Managing Director of the "Center for Sustainable Finance and Private Wealth (CSP)" at the University of Zurich and lead author of the study, which was designed by an SSF working group. In addition, integrating sustainability into the investment process has a positive impact on financial performance. For example, portfolio diversification can be increased, improving the risk/return profile of portfolios.

Swiss banking representatives see untapped potential

At the launch event for the publication, which will take place on March 22 in Zurich, Herbert J. Scheidt, Chairman of the Swiss Bankers Association (SBA), will explain the role sustainable investments can play in strengthening Swiss private banking. "Sustainable investments are a natural core competence for the Swiss financial center, as Swiss attributes such as high quality, great innovative strength and stability also form the basis for sustainable investments," he explains ahead of the event. Finally, in a panel discussion, the current offering of banks will be subjected to a practical test: a representative of the so-called next generation of high net worth individuals will debate with client advisors and product managers whether the current offering of banks can keep pace with changing client needs.

Ten good arguments

The ten arguments, which are supported in the SSF publication with numerous studies and quotes from customers and consultants, can be grouped into three categories:

• improved interaction with customers thanks to interesting and personally relevant topics of conversation - especially with regard to the younger generation of customers
• The positive effects of sustainability on the financial result
• Consistency with Swiss strengths

A short film, aimed in particular at client advisors from banks and asset managers, summarizes the argumentation. The study also contains concrete tools to help advisors efficiently prepare their client meetings on sustainable investments.

Text: SSF