What it means to create a portfolio with a purpose

Improving the world and achieving investment returns were once considered incompatible pursuits. But with the increasing viability of sustainable investing, that’s certainly not the case anymore.

“I think before, people separated it: ‘I invest over here, and I do my social good over here,’” says Matthew Arnold, Global Head of Sustainable Finance, JPMorgan Chase & Co. “The growing interest in this field is a sign of a new idea that you can make a positive contribution to your community through your investments.”

A growing number of individuals and organizations are pursuing this approach. Today:

  • Sustainable investing accounts for 26% of all professionally managed accounts globally1
  • About half of all endowments and foundations invest sustainably2
  • 45% of millennials consider social responsibility a factor in making investment decisions3

However, these numbers capture only part of the trend. Sustainable investing addresses a wide array of social and environmental themes—including gender equality, healthcare, water scarcity and urbanization—through various strategies.

“We see some investors using sustainable investing to identify companies they may want to avoid,” says Marisa Buchanan, Director of Sustainable Finance, JPMorgan Chase & Co. “Yet it can also help identify companies that are positioning themselves for good, strong, long-term performance.”

Watch this video for more insights into the strategy of sustainable investing. To learn more about how to incorporate sustainable investing into your portfolio, please contact your J.P. Morgan advisor.

1Source: Global Sustainable Investment Review 2016. Global Sustainable Investment Alliance.

2Source: 2016 ESG Interest and Implementation Survey. Callan Institute.

3Source: Spectrem Group.

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