Impact investing robo-advisor Newday is partnering with two other sustainable investment firms to expand its portfolio offerings.
Four portfolios were added: a strategy from Nia Global Solutions focused on gender equality, and three from HIP Investor — a Sustainable REIT ESG strategy, Great Places to Work strategy and Global Dividends strategy. The dividends and REIT strategies yield about 4%.
Newday now has 12 equity portfolios — all concentrated separately managed accounts — plus a bond ETF and bond mutual fund, which are available to investors with just $100, for a 75 basis-point fee. Like other robos, Newday will allocate an investor’s assets based on their risk tolerance and personal values, but investors can override those choices. It uses fractional shares to divvy up an investor’s deposit among the different strategies chosen.
A checking and savings account, with competitive rates from a banking institution that doesn’t lend to arms manufacturers or fossil fuel companies, is planned for the second quarter, along with a biodegradable debit card.
All of the new strategies added to the Newday universe have been around for several years but only available to investors with thousands of dollars to invest, usually $100,000 in the case of Nia Global Solutions and $30,000 for HIP Investor.
Nia Global Solutions’ strategy invests only in businesses with a diverse leadership that have an innovative solution, product or service beneficial to women and girls. Its concentrated portfolio of just 50 stocks beat the S&P 500 through the third quarter of 2019 (+23.44% vs. +20.55%), trailing one year (+5.03% vs. +4.25%) and trailing three years (+14.64% vs. +13.39%).
The HIP Investor REIT strategy prioritizes sustainable and LEED-certified properties, which generally consume less water and energy, while its Great Places to Work portfolio invests in companies included in Fortune’s annual list of the 100 best companies.
The HIP Global Dividends strategy focuses on large-cap companies in the U.S. and abroad (through American depositary receipts) that not only meet the 4% dividend target but show strong ESG performance and operate in an industry that generally have a positive impact on society.
HIP chooses its investments from its data analysis of 8,000 global equities and 300 REITs and its three portfolios added are concentrated, with 50-70 names.
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