A couple seeks to involve their children in actively managing their family’s wealth.
Prompted by their J.P. Morgan team during their annual review, Lucia and her husband, Devon, began to consider the legacy they wanted to leave for their four children and future grandchildren. Given their concern over hefty estate taxes in the United Kingdom and their commitment to paying for the best schooling, they didn’t want to compromise on returns.
So Lucia and Devon decided to have a family discussion during an upcoming ski holiday. They discovered that an environmental theme had emerged from the conversations—from support for and investments in alternative transportation to animal conservation and sustainable textiles in fashion.
Concerned that their family’s environmental priority for their legacy wouldn’t be possible, given their desire for uncompromised returns, Lucia and Devon expressed their doubts to their J.P. Morgan team. In turn, the team shared the growth sustainable investing has seen in the past decade, and how average returns were proving stronger for individuals and companies that had considered ESG factors in their investments.
The team proposed a range of investment options to support the family’s environmental concerns with the aim to maintain their returns. An implementation plan was applied over the course of several years. Lucia and Devon were able to protect and grow their wealth for their legacy, while realigning their portfolio with their family’s principles.
All case studies are shown for illustrative purposes only and should not be relied upon as advice or interpreted as a recommendation. They are based on current market conditions that constitute our judgment and are subject to change. Results shown are not meant to be representative of actual results or experience of other individuals. Past performance is no guarantee of the future returns.
J.P. Morgan takes a global approach to sustainable investing and the solutions offered through our sustainable investing platform meet our internally defined criteria for a sustainable investment. The evolving nature of sustainable finance regulations and the development of jurisdiction-specific legislation setting out the regulatory criteria for a “sustainable investment” or “ESG” investment mean that there is likely to be a degree of divergence as to the regulatory meaning of such terms. This is already the case in the European Union where, for example, under the Sustainable Finance Disclosure Regulation (EU) (2019/2088) certain criteria must be satisfied in order for a product to be classified as a “sustainable investment”. Any references to “sustainable investing” “SI” or “ESG” in this material are intended as references to our internally defined criteria only and not to any jurisdiction-specific regulatory definition.
