NEW YORK, Sept. 26 (Xinhua) -- Swiss investment bank UBS Group AG on Thursday announced the launch of new high-yield credit funds on sustainable development in cooperation with Federated Investors Inc. and Hermes Investment Management.
As part of a 5-billion-U.S.-dollar commitment on impact investment, the funds seek to achieve a meaningful social and environmental impact as well as a compelling investment return by investing in high-yield bonds, according to a release by UBS on Thursday.
The funds would be accessible to investors in the United States, Austria, Belgium, Finland, France, Germany, Italy, Luxembourg, the Netherlands, Spain, Switzerland, and the United Kingdom, according to UBS.
"Investors must understand companies' sustainability issues on every level as they strive to maximize their returns as well as their support for sustainability goals," said Mark Haefele, global chief investment officer at UBS Wealth Management.
Investment featuring environmental, social and governance (ESG) factors could boost returns by a significant amount and buying stocks that rank well on ESG metrics have outperformed the market by up to 3 percentage points per year over the past five years, according to a research note by Bank of America Merrill Lynch on Thursday.