Newday Impact Announces Launch of New AHOY 2.0 Ocean Health ETF
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Insights
The launch of Newday Impact's AHOY 2.0 ETF represents a strategic move within the environmental, social and governance (ESG) investment landscape. By focusing on ocean health, the fund aligns with the growing investor demand for products that contribute to sustainability and the blue economy. The blue economy encompasses economic activities related to oceans, seas and coasts and is gaining traction due to its potential for sustainable growth. AHOY 2.0's commitment to a smaller, more targeted portfolio of 25 holdings indicates a concentrated investment approach, which could lead to higher volatility but also offer the potential for greater impact per investment.
Investors should be aware that the active management of AHOY 2.0, coupled with its advocacy stance, may involve additional costs, which could affect net returns. However, this approach also allows for dynamic responses to changing environmental conditions and corporate practices. The alignment with the United Nations Sustainable Development Goals adds to the fund's credibility in targeting genuine impact, which could appeal to investors looking for investments with clear ethical standards. The ESG screening methodology and the Ecological Benefits Framework (EBF) used by Newday Impact are critical in ensuring that investments meet stringent sustainability criteria.
AHOY 2.0's strategy of including 'ocean improvers' and 'advocacy candidates' suggests a proactive approach to impact investing. By engaging with companies that have room for improvement in their ocean health practices, the fund could drive meaningful change beyond just divestment. The advocacy aspect, particularly focused on the krill trade, indicates an intention to address specific industry practices that have significant ecological impacts. This could potentially lead to reputational benefits for the companies involved and the fund itself, as investors and consumers increasingly value corporate responsibility.
The fund's international exposure reflects the interconnectedness of global ocean health issues. Investors should consider the geopolitical and currency risks associated with international investments, although this diversification may also provide a hedge against region-specific risks. The contribution of management fees to nonprofit partners is a tangible demonstration of the fund's commitment to its mission, which may further incentivize investors who prioritize tangible outcomes from their investments.
From a market perspective, the introduction of AHOY 2.0 could be seen as a response to a niche but growing segment of the market interested in impact investing. The success of the inaugural AHOY ETF suggests there is investor appetite for such products. However, the relatively narrow focus on ocean health, while potentially limiting the diversification benefits typically associated with ETFs, may also provide a unique opportunity for investors to engage in targeted impact. The performance of AHOY 2.0 will need to be monitored to assess whether the tighter focus and advocacy efforts translate into competitive returns compared to broader ESG funds.
As impact investing becomes more mainstream, the differentiation of AHOY 2.0 may offer a competitive advantage. Nevertheless, it is essential to consider the liquidity and market depth of such a specialized ETF, as it may affect the ability to enter and exit positions efficiently. The fund's influence on corporate practices and ocean health will also be a critical factor in its long-term success and attractiveness to investors.
AHOY 2.0 leverages Newday Impact's deep history in impact investing and strong relationships with grassroots nonprofit organizations on the forefront of ocean conservation and change. It aims to harness the power of capital to enhance and support the development of nature-positive solutions promoting healthier oceans and benefiting from the rise of the "blue economy."
The fund is actively managed and invests in industry-leading companies that contribute positively to Ocean Health, as well as taking positions in "ocean improvers" — companies that can improve their impact on the oceans.
AHOY continues Newday Impact's commitment to ocean health and provides responsible investors an opportunity to drive impact for the world's seas.
The fund builds on the success of the inaugural AHOY ETF. AHOY 2.0 will encompass a more intimate portfolio of 25 holdings, tightly focused on ocean health, and will have greater international exposure, reflecting the global nature of ocean health.
AHOY 2.0 will also feature advocacy candidates, or companies that have practices that are harmful to ocean health, which Newday will advocate for change. This will be specifically centered on aspects of the Krill trade for its effect on oceans. Additionally, AHOY 2.0 is aligned with United Nations Sustainable Development Goals (SDG). As with its inaugural AHOY ETF, Newday Impact will contribute a portion of its management fee to its nonprofit partners.
"We have an immense depth of experience and relationships in ocean health-focused impact investing," said Doug Heske, CEO of Newday Impact. "AHOY 2.0 builds on this expertise."
Newday Impact utilizes the Ecological Benefits Framework (EBF) in its AHOY 2.0 investment process, as well as Newday Impact's ESG screening methodology and proprietary fundamental research models. For more information visit https://www.newdayimpactetfs.com.
About Newday Impact
Newday Impact is a financial services company that provides authentic portfolios for socially responsible investors. Backed by insightful research and recognized community leaders, Newday Impact offers portfolios addressing major social and environmental issues. The company also supports its partners by donating up to
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SOURCE Newday
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