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March 23, 2015 at 12:48 PM
Online broker Motif Investing said Monday that it has partnered with Pacific Life to offer new cause-driven motifs for millennials through its newly launched subsidiary, Swell Investing.
The four motifs “track the S&P with a bit of a twist: they focus on companies that contribute to a cause,” Hardeep Walia, founder and CEO of Motif Investing, told ThinkAdvisor.
Walia says that Motif is also developing “solution set” motifs for investment advisors, including smart beta motifs, which should be announced in a matter of weeks.
Swell Investing uses Motif Investing’s thematic investing platform to allow millennials to easily invest in the causes and issues they care about while growing their portfolios. Motif Investing provides the technology and distribution for the Swell offering while Pacific Life and Swell “manage” the motifs, Walia says.
Swell will donate 20% of its revenue to organizations within the motifs devoted to improving education, fighting cancer, upholding human rights and ending poverty.
Motif Investing pays Swell a royalty of at least $1 out of the $9.95 total commission per investment or rebalance of the Swell motifs. From that revenue Swell gives 20 cents out of every $1 to the causes the Swell motifs support.
Investors can choose from four different motifs — groups of stocks of companies publicly traded in the U.S. whose foundations are the biggest contributors to each of the causes.
