Investment Process

Impact Portfolios

Newday Impact portfolios address major ethical issues and are designed and constructed around a combination of UN Sustainable Development Goals and ESG principles using a rigorous, repeatable process.

Insights from deep research into the behavior of the companies whose securities are in the portfolios helps Newday Impact deliver portfolios more aligned with the change responsible investors want in the world. Partnerships with leading organizations provide Newday Impact with access to guidance on achieving higher levels of impact.

View Portfolios

INVESTMENT PHILOSOPHY

Exclusionary Screening

Newday exclusionary ESG screens include fossil fuels, armaments, gambling, tobacco, alcohol, and child labor. Newday’s unique approach to governance screening focuses on researching the actual behavior versus the stated intent of the company which is crucial in understanding the actual adherence to the rules and regulations .

ESG and Governance Research

Our advanced mathematically driven screening methodology allows us to consider thousands of global companies, identify those who are industry leaders and positively contributing to ESG, and eliminating those industry laggards who are not.

Fundamental Analysis

Newday uses two key models, a Buy/Sell model and a Macro model. The Buy/Sell Model targets stocks most at risk of underperforming and the Macro model which identifies which companies perform or underperform in any given stage of the economic/business cycle. Then we construct our portfolios on our highest conviction ideas.

Active Management

Active strategies are a preferred solution in terms of both investment performance and impact—due to their inherent structural advantages over passive strategies when seeking ESG integration.

DATA DRIVEN ESG SCORING METHODOLOGY

SCORING PRINCIPLES AND PILLARS

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Long-term focus approach
Identifies sustainable companies that possess structural and strategic advantages likely to drive financial outperformance in the long-term

DEFINE UNIVERSE

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Exclusions: Products and services we consider incompatible with sustainability: armaments, cluster bombs, anti-personnel mines, firearms, gambling, tobacco (5% of revenues), alcohol (5% of revenues), child labor controversies, fossil fuels

SELECT KPIS

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KPI Definitions: Thematic portfolios are built around a set of key performance indicators which assess corporate alignment within a specific theme.

PRE-PROCESS DATA

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Adjustments made to raw data to prepare it for the scoring process

SCORE CONSTITUENT CONSIDERATIONS

Establish sub-score and weights
Once we establish our thematic and impact score for each company, we proceed to the construction of the portfolios.