Spaceship is adding a new active equities product to its managed funds lineup, with the fees waived off for first $5000 and 10bps per year after.
The Spaceship Earth Portfolio is the third fund in Spaceship Voyager, its $225 million managed funds offering outside of the $350 million superannuation fund.
Spaceship Earth Portfolio will invest in stocks that advance one or more UN Sustainable Development Goals agenda, and will negatively screen for tobacco, alcohol, weapons, animal cruelty, human rights abuse, nuclear power, gambling or fossil fuel.
The portfolio is 38 international and domestic stocks, across industries like information technology (which also feature heavily in other Voyager products), industrials, consumer discretionary and healthcare. Fifteen of these are new names not held in other Voyager funds.
It is managed in-house by Jason Sedawie, Phoebe Jin and Tommy Rogulj.
By sector, it has 18 IT stocks (including Square, Atlassian, Shopify), 10 industrials (like First Solar, Siemens, Enphase Energy), five consumer discretionary (like Kering, Lululemon, Starbucks), four healthcare (like Intuitive Surgical, Resmed) and one utilities stock, American Water Works.
Starbucks recently figured on a list of corporates with bad human rights track records, but is included in Spaceship's portfolio as its sees it contributing to UN SDG's goal 1 (no poverty) and foal 12 (responsible consumption and production).
The previous two Spaceship Voyager funds were launched in May 2018. Spaceship Origin has returned 8.5% p.a. in the 29 months to October end and Space ship Universe had returned 27.1% p.a. over the period.
The Universe portfolio also doesn't contain fossil fuel companies, but it doesn't have a negative screening process. The Origin portfolio uses a rules-based portfolio (as opposed to active) and has exposure to fossil fuels.
"Younger Australians have traditionally been disconnected from investing in domestic and global equities because of high fees, investment minimums, complicated processes and jargon-heavy products Spaceship chief executive Andrew Moore said.
The firm has $550 million in total assets and recently crossed 100,000 customers. It targets younger investors and has stayed away from the adviser or corporate mandate channels.
Its equities-heavy superannuation product topped recent Rainmaker analysis of MySuper products for members in their 20s, with 12.3% p.a. over three years ending June, and considering single-strategy products.
The second on the list was Future Super (5.6%) over the period. On a longer time horizon of five-years, QSuper, Aware Super and Media Super were the best performers with 6.5%, 5.4% and 5.2% p.a. respectively.