UBS Investor Watch: Investors to use their capital to drive change after COVID-19

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  • 9 in 10 investors want their investments to align with their values

  • Women, young generation want to make a difference through charitable giving

With COVID-19 vaccinations accelerating and the economy re-opening, 90 percent of wealthy investors agree that the pandemic has made them want to align their investments with their values, according to the new Investor Watch survey by UBS, the world’s leading global wealth manager.

The report, which polled 3,800 investors across 15 markets globally, found investors increasingly want to use their capital to drive change and are looking to find greater purpose in their lives.

Around 79 percent of respondents felt that the pandemic has made them reassess what is most important. Nearly half plan to increase their charitable giving and almost sixty percent are more interested in investing sustainably than they were before the pandemic.

“The pandemic has prompted many investors to re-evaluate what matters most to them and now have a renewed desire to contribute more to benefit society,” said Tom Naratil, co-president of UBS Global Wealth Management and President of UBS Americas.

“It is incredibly encouraging to see that purpose-driven investment will be a priority for investors in the years to come. This is a unique moment where wealth managers have the opportunity to help their clients create immense change and better outcomes for future generations,” he added.

The survey found that younger generations turned their attention more to purpose-related investing as a result of the pandemic. Seventy-nine percent of investors aged 50 and under noted that the pandemic made them want to make more of a difference in the world, compared to fifty-one percent of investors over 50. Nearly three-quarters of this younger demographic also want to develop or update a comprehensive financial plan.

Iqbal Khan, co-president of UBS Global Wealth Management, said: “Globally, investors are motivated to play their part in making the world a better, more sustainable place. The heightened interest in charitable giving and desire to obtain sustainable investing advice from younger generations is a sign, too, that this mindset may be here to stay.”

Ali Janoudi, head of Middle East and Africa at UBS Global Wealth Management, said: “Wanting to find purpose and make more of a difference is particularly high in the UAE, where 80 percent and 78 percent of investors respectively answered those questions in the affirmative”.

From a gender perspective, more women have seen the pandemic as a time for reflection. Eighty-four percent said that they have reassessed their goals amid the pandemic, compared to seventy-six percent of men. As investors begin to put the pandemic behind them, fifty-one percent of women plan to increase charitable giving compared with forty-two percent of men.

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