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TD Ameritrade Institutional Expands RIA Access to ESG Investing: Portfolio Products

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TD Ameritrade Institutional is making more environmental, social and governance investment choices available to independent RIAs for their clients.

RIAs that custody assets with TD Ameritrade Institutional now have three ways to help provide socially responsible investments to their clients.

Through the Model Market Center platform, RIAs can access investment models that may meet their criteria for ESG, controversial business involvement or carbon footprint. With a few clicks, advisors can invest a client’s assets in a way that they feel meets sustainable standards and the client’s overall risk tolerance.

These models are currently available to advisors at no additional fee and with no investment minimum for assets held at TD Ameritrade Institutional.

Advisors on the Veo brokerage platform also can apply a screening tool to identify 559 mutual funds that have identified themselves as socially responsible and are open to new investors, including 234 funds that can be traded commission-free.

Likewise, advisors who use TD Ameritrade’s ETF Market Center can use screening tools to find and access 63 ETFs identifying themselves as socially responsible, including eight commission-free offerings.

Calvert Launches Fund to Provide Loans to Entrepreneurs of Color

Calvert Impact Capital and Urban Advisors announced the launch of the UP Community Fund, a new impact investing vehicle designed to increase financing available to entrepreneurs of color in the southeastern United States.

Minority business owners have a harder time accessing affordable credit than their non-minority peers, Calvert says, making it more difficult for minority-owned businesses to succeed and build wealth.

This fund strives to address these financing disparities by seeking qualified minority-owned businesses who — with access to affordable credit — can grow their businesses and expand income and wealth-building opportunities for their employees and communities.

The fund will make loans ranging from $250,000 to $1.2 million available to small businesses and community organizations within its target geographic market — including the metro areas of Charlotte, Atlanta, St. Louis and Baltimore, among others. The fund’s $12.15 million first close includes Riverside Church, New Resource Bank, MetLife Investment Management and Calvert Impact Capital as lenders. Calvert Impact Capital is also lead arranger and administrative agent.

“The vision of the UP Community Fund is to create a sustainable financing vehicle that can generate focused and long-term impact in communities of color,” said Calvert Impact Capital’s vice president of syndications and strategy, Beth Bafford. “We are investing — and bringing other lenders to the table — because of the strength of the fund’s mission and the team’s deep experience in lending to under-resourced communities. The UP Community Fund will create economic opportunity in a part of the U.S. that has historically lacked strong financing infrastructure.”

Calvert and Urban Advisors chose the southeast because it is the least upwardly mobile region for African-American communities in the United States. The fund’s initial target market was chosen to bring economic opportunity to companies led by entrepreneurs of color as well as those seeking to diversify workforces to create quality employment.

Salt Financial Launches First ETF Powered By truBeta

Salt Financial launched the Salt truBeta High Exposure ETF (SLT), which uses the firm’s proprietary truBeta forecast and is designed as an alternative to complex leveraged products.

The ETF tracks the Salt truBeta High Exposure Index, offering magnified exposure to U.S. equities without borrowing or derivatives.

Salt Financial aims to give investors portfolio construction tools to provide an opportunity for outperformance without the use of leverage in their portfolios.

The goal of truBeta is to transform a backward-looking estimate into an indicator of future market sensitivity, allowing investors to boost participation in market movements without the side effects of daily reset leverage.

Salt Financial’s first ETF — SLT — is passively managed and the strategy targets large- and mid-cap stocks across a broad range of sectors. The underlying index is optimized for liquidity, equally weighted, sector-capped, and rebalances quarterly.

AdvisorEngine Enhances Rebalancing and Trading Capabilities, Integrates with Smartleaf 

Fintech company AdvisorEngine announced its integration with Smartleaf, a leading provider of automated portfolio rebalancing and tax optimization for wealth managers, RIAs, TAMPs, broker-dealers and banks.

The addition of Smartleaf’s capabilities to the AdvisorEngine platform is the latest move towards its vision of enabling advisors through deeply integrated technology and data.

Smartleaf delivers an automated portfolio rebalancing system, designed from conception to support compliant, customized, tax-optimized portfolio management at scale. Smartleaf can support both advisor-centric, high-net-worth services and mass-rebalanced robo-advisor accounts.

The integration enables shared clients to easily onboard and manage accounts from a single platform. Clients will also be able to customize and tax-optimize accounts efficiently, consistently and at scale.

DataParser Leverages Microsoft’s Azure Analytics to Meet FINRA E-Communications Collection Requirement

17a-4, LLC, a software and services company that enables regulated clients to comply with SEC, FINRA and CFTC requirements, announced its widely used DataParser that collects third-party messaging and collaboration content now integrates with Microsoft’s Azure’s AI Cognitive Services Text Analytics API.

This combination enhances the ability of compliance officers to supervise data in keeping with current regulations. It also makes it easier to monitor and analyze keywords and phrasing that may indicate the message contains a customer complaint or issue, allowing companies to address such concerns quickly and effectively.

DataParser’s integration with the Text Analytics API provides advanced natural language processing over raw text, and includes three main functions: sentiment analysis, key phrase extraction and language detection.

DataParser is deliberately designed not to capture each individual chat but rather to pull an entire day of chats and create conversations to submit to the Azure Text Analytics API.

This provides a comprehensive view of the dialogue and makes minimal impact on real-time operations.

Crypto Asset Hedge Fund Launched by Tradecraft Capital

Tradecraft Capital, a crypto asset hedge fund and investment company, launched its first fund, the Tradecraft Crypto Asset Fund.

The fund is an actively managed portfolio of concentrated, high-conviction positions with a medium-term time horizon.

The Tradecraft Crypto Asset Fund is a long-only fund, which means it doesn’t take short positions on the crypto market. This is also an always-long fund, so it will always own some crypto assets.

The investment objective of the fund is to achieve capital appreciation and maximize absolute returns by offering investors exposure to a broad range of crypto assets, whose value is secured by cryptography and other blockchain technologies.

— Read last week’s portfolio product roundup here: Virtus InfraCap U.S. Preferred Stock ETF Launches on NYSE: Portfolio Products


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