MICROCAPITAL BRIEF: United Bank of Switzerland (UBS) Launches “Impact Investing SME Focus Fund”

The United Bank of Switzerland (UBS), a Swiss financial services company, reportedly has launched an impact investment fund, named the “Impact Investing SME Focus Fund,” which will invest in small and medium-sized enterprises (SMEs) in unspecified emerging and frontier markets. The fund, which has gathered initial capital of CHF 50 million (USD 55 million) from investors, will take equity stakes in privately held SMEs in various sectors including agriculture, education, finance, healthcare, infrastructure and sustainable forestry. The social and environmental impact of the investments will be monitored by the Global Impact Investing Reporting System (GIIRS), a ratings and analytics system that assesses corporate impact on non-financial metrics, and Deloitte, a UK-based professional services firm that provides audit, consulting, financial advisory, risk management and tax services.

To date, the fund has made two investments: (1) USD 3 million in an unidentified Indian education fund in an effort to promote greater access to high quality low-cost education for middle class Indian families, and (2) USD 3 million in an unidentified company that is working on generating renewable power in Southeast Asia.

The Impact Investing SME Focus Fund is managed by Obviam, a Switzerland-based investment advisor that specializes in long-term investments in emerging and frontier markets.

As of 2012, UBS had total assets of CHF 1.26 trillion (USD 1.39 trillion), return on equity of -5.06 percent and return on assets of -0.19 percent.

By Adrija Vaiciulionis, Research Associate

About United Bank of Switzerland (UBS):
United Bank of Switzerland (UBS) is a Switzerland-based financial services company established in 1854. UBS provides investment banking, asset management, and wealth management services for private corporate and institutional clients. UBS is organized as an Aktiengesellschaft, a corporation that issues shares of common stock to investors. As of 2012, UBS had total assets of CHF 1.26 trillion (USD 1.39 trillion), return on equity of -5.06 percent and return on assets of -0.19.

About Global Impact Investment Ratings System (GIIRS):
Global Impact Investment Ratings System (GIIRS) is a system for assessing the social and environmental impact of developed and emerging market companies and funds using a ratings and analytics approach. It seeks to spark the impact investment movement by providing a tool that is intended to change investor behavior and unlock the potential of the asset class.

Sources and Additional Resources:

United Bank of Switzerland Website Media Release, “UBS Launches First Fund for Impact Investing,”
https://www.ubs.com/global/en/about_ubs/media/america/releases/news_display_media_americas.html/en/2013/09/23/2013-09-23.html

MicroCapital Article, October 1, 2013, “Former JP Morgan Asset Management Chairman Unveils $40m Impact Investment Fund, Charioteer-Fund I, to Support Skill Development, Microenterprises in India,”
https://www.microcapital.org/microcapital-brief-former-jp-morgan-asset-management-chairman-unveils-40m-impact-investment-fund-charioteer-fund-i-to-support-skill-development-microenterprises-in-india/

MicroCapital Article, March 19, 2013, “Perspectives on Progress: The Impact Investor Survey,”
https://www.microcapital.org/microfinance-paper-wrap-up-perspectives-on-progress-the-impact-investor-survey-by-yasemin-saltuk-published-by-jp-morgan-and-the-global-impact-investing-network-giin/

MicroCapital Universe Profile: United Bank of Switzerland (UBS)
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=United+Bank+of+Switzerland+%28UBS%29

MicroCapital Universe Profile: Global Impact Investment Ratings System (GIIRS)
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=GIIRS

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