Blue Star Families, a national nonprofit dedicated to supporting active-duty service members, veterans and their families, will be the latest recipient of funds from the Action Bond program, an initiative by J.P. Morgan’s Commercial & Investment Bank (CIB).
At least $300,000 has gone to support the charity’s services, which are directed at solving specific challenges for military families. This includes funding career development courses, organizing peer support for caregivers and offering community-building programs like book donation drives. The charity’s services benefit more than 1.5 million military family members.
Combining philanthropic objectives with investment goals
The Action Bond program sets itself apart by dedicating a portion of the projected profits from assuming risks inherent in hedging the firm’s obligations under the structured investments issued under the program. This model not only provides added value for investors who seek to indirectly support charitable causes through their investments, but also raises awareness for a variety of projects.
Structured investments are issued by financial institutions and combine a bond component with a derivative component linked to an underlying asset, which may include equities, fixed income, commodities and/or currencies. Structured investments can offer clients market participation in a variety of payouts that can be principal-protected or principal at risk, subject to the firm’s credit risk.
The nonprofits do not have to wait for bonds to mature. In the U.S., the charities are given an upfront, unconditional donation from the firm — in this case, $300,000 for Blue Star Families.
“Typical structured investment investors have historically struggled with finding opportunities that marry their philanthropic and/or ESG objectives with investment goals. Action Bonds do just that; both our clients and charity partners have embraced this program and fueled its success,” said Nkonye Okoh Soetan, part of CIB Markets’ Equity Derivatives (EDG) and Structured Investment Distributor Marketing (SIDM) group, and founder of the Action Bond program.
“Blue Star Families’ mission to strengthen military families and communities aligns closely with the firm’s efforts to provide meaningful career opportunities, financial health resources and long-term support for those who have served.”
Mark Elliott
Global Head of Military & Veterans Affairs, JPMorganChase
Strengthening military families and communities
Blue Star Families is the fifth nonprofit benefitting from the Action Bond program since the first Action Bond issuance in 2021. Since then, the global program has generated over $3.5 million for charities and non-profits — driven by $2.5 billion in issuances — benefiting efforts including education, ocean clean-up, small businesses and reforestation.
Choosing which nonprofit to support involves unique consideration. In addition to more usual metrics — mission statement, region of operations, impact to date and extent of corporate partnerships — the Structured Investments Distributor Marketing (SIDM) Sales team in CIB Markets also has to consider which initiatives align with investor interest.
For due diligence purposes, it helps if a charity has a past philanthropic relationship with the Firm. Blue Star Families has a longstanding relationship with JPMorganChase through the Firm’s Military and Veterans Affairs organization, which provides financial support for its efforts, as well as partnerships for volunteering and awareness campaigns.
“Blue Star Families’ mission to strengthen military families and communities aligns closely with the Firm’s efforts to provide meaningful career opportunities, financial health resources and long-term support for those who have served,” said Mark Elliott, global head of Military & Veterans Affairs at JPMorganChase. “Through initiatives like the Action Bond program, we’re not only investing in organizations like Blue Star Families but also helping ensure long-term sustainable impact for those who have sacrificed so much for their country. By leveraging innovative financial solutions, we can continue to help military families access career development resources, education and community-building opportunities that make a real difference in their lives.”
Veterans support in general has been a long-held mission within JPMorganChase. The firm has helped hire more than 900,000 veterans and military spouses through the Veterans Jobs Mission, and supported them with resources such as mortgage-free homes, training and mentorship.
Disclaimer:
There is no assurance that Blue Star Families’ stated mission or community goals will be achieved or that J.P. Morgan’s donation will have a positive impact on strengthening the military community supported by Blue Star Families.
J.P. Morgan’s donation is not intended to comply with the Social Bond Principles, June 2023. This donation is not a Commercial Co-Venture with Blue Star Families.
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