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Financial Times
UBS concern over private markets push by manager of $1bn sustainable finance fund
UBS has expressed concerns regarding its $1bn sustainable finance fund due to its partnership with Record, which is increasingly focusing on private markets. Although UBS concluded that the current strategy is sound, discussions about potentially replacing Record's management continue, reflecting strains between the two parties. Record's shift away from its core currency hedging business has raised eyebrows within UBS, especially as it diverts into private equity and debt areas, where investment complexities pose risks to emerging market development projects. The bank's clients heavily fund this initiative, underscoring the importance of managing these relationships wisely.
MonitorConfidence: HighShort term horizon
Published 24 Aug 2026, 10:41 UTC3 min read
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Summary
TL;DR
- UBS considers alternatives for its $1bn sustainable finance fund manager.
- Record has shifted focus from currency hedging to private market investments.
- Recent fund review supports current strategy but ongoing discussions about management persist.
- Record's failure to attract new assets raises concerns for UBS.
- Investment complexities in private markets pose challenges for large banks.
Interesting facts
- UBS's sustainable finance fund is one of the few of its kind operated by a private institution.
- Record attempted to diversify into private markets without significant success.
- UBS clients contribute approximately 95% of the fund's total assets.