The situation

When David turned 65, he sought to involve his adult children in actively managing their family wealth. His children had avoided this topic, as some had felt ambivalent about the source of it all. But having reached this life milestone, David now felt it was time for his family to give the issue serious consideration. 

Several family portfolio reviews revealed the next generation’s interest in sustainable investing, a strategy that would support their environmental and social values while also aiming to preserve and grow the family’s wealth. David embraced the idea of pursuing a more sustainable portfolio—an aspect of his legacy that he hadn’t previously considered. The family worked with J.P. Morgan Private Bank to turn this vision into reality.

Our approach

We helped the family identify the issues and areas most important to them and the results they hoped to achieve. After analyzing the family’s portfolio, we identified which holdings supported these goals, and which worked against them. We also proposed a range of additional investment options designed to both align with their values and achieve their desired portfolio returns. 

The new investing plan took advantage of several sustainable investing approaches:

  • Environmental, social and governance integration: The family wanted to invest in companies that focus on managing their environmental impact, ecologically sensitive product sourcing and supply chain practices, and fair employment standards. We identified managers who incorporate these ESG factors across asset classes. 
  • Exclusionary screens: The family wanted to ensure that new investments would exclude specific industries, so we helped create screens to accomplish this. 
  • Impact investing: The family sought to invest in at least one project that would produce a significant, measurable, positive effect on the environment. We helped identify a woman-owned startup that was developing a green technology to convert plastics for other uses, and the family bought a 50% stake in the company.

We helped the family develop a gradual “on-ramp,” evolving the portfolio over the course of several years. This helped David monitor returns, so he could ensure the portfolio was protecting and growing the family wealth at the intended rate while fulfilling its environmental goals. Their shared mission for the portfolio’s financial and environmental returns helped the family share more time together.