A new way to invest: ESG Managed Portfolios

Collaboration Capital’s ESG Managed Portfolios are an investment management platform developed following our partnership with one of the pioneers of the ESG/impact investing industry. This online investment platform enables investors to invest in a diversified, actively managed portfolio of stocks and bonds with an intentional focus on socially responsible ESG (Environmental, Social, and Governance) investment strategies, further described below.


As previously reported, in 2019 The NextSeed Group entered into a strategic partnership with Collaboration Capital, an SEC-registered investment adviser. Led by its Founder/CEO Christopher Knapp who has a 30-year track record as an investment advisor and portfolio manager, Collaboration Capital has a specific mission to align profit and purpose. Read about Chris’ investment management philosophy here, and an overview of ESG Managed Portfolios here.

Historically, due to the extensive effort required to actively manage investment portfolios across asset classes, Collaboration Capital could only accept clients with a starting balance of $1 million. Now, Collaboration Capital will be able to offer customized ESG-focused public investment portfolios for clients with portfolio balances as low as $5,000

By leveraging the latest technology in public securities portfolio management – fractional share trading and automatic model portfolio implementation capabilities – we are continuing our mission to democratize finance.  This time, we are bringing access to proprietary investment management strategies and portfolio management services that were previously limited only to very high net worth investors.

There are three reasons why we believe this launch of ESG Managed Portfolios is an important addition to what we can offer to the NextSeed community.

Diversification

First, we have always believed that diversification of an investment portfolio across various types of assets is critical for long-term investment success. In this context, a well-balanced portfolio of publicly listed equity and debt securities (including government bonds) should probably remain the core of most individuals’ investment portfolios, with a reasonable allocation to alternative private investments. 

While NextSeed launched with the goal to make quality private investments available to everyone, our long-term vision is to offer a broad suite of investment products and services to our members so that you will be able to build a truly diversified investment portfolio with access to all major asset classes.

The addition of commercial real estate assets and these new additional investment options for managed portfolios of publicly listed securities reflect our continued desire to innovate and bring a holistic investment solution to our growing community.

Active Management

ESG Managed Portfolios is not just another online roboadvisor that seeks to deliver portfolios that passively track major indexes, regardless of the underlying fundamentals. Considering the current economic and geopolitical climate and the increased potential for market volatility, we believe there is real value in the professional, active management of a public securities portfolio that is based on fundamental analysis of each underlying security, something the Collaboration Capital investment professionals have decades of experience doing at the highest level.  

This platform will provide clients with automatically balanced and diversified portfolios, implemented in accordance with investment strategies managed by professional asset managers with established long-term track records. Each client’s underlying portfolio allocation between stock and bond asset classes will be determined and customized based on your own risk profile and investment preferences.

Aligning Profit and Purpose

We have always believed that what you invest in is just as important as the financial returns you are seeking to achieve. We believe that your investments are not merely the sum of the underlying dollars, but also real-life reflections of what you support and how you want your money to be utilized. Not all publicly listed companies operate with values of improving the quality of life in our communities and the moral advancement of society at large. 

This investment practice of scrutinizing the underlying characteristics of publicly listed companies to make active investment decisions is generally referred to as socially responsible investing (SRI). In particular, ESG investing focuses on the environmental, social, and governance factors of a business’s external impact as well as its internal practices. Collaboration Capital was formed with the specific intent and desire to operate as an ESG-focused investment adviser. Led by accomplished investment professionals with extensive experience in this space, this was exactly the type of investment advisor that NextSeed wanted to align with. 


Please note that Collaboration Capital’s ESG Managed Portfolios will function as a new investment platform, separate from and unrelated to your NextSeed investment account. Our custodian & technology partner in this platform is Folio Financial (recently announced to be acquired by Goldman Sachs), and all securities transactions within the ESG Managed Portfolios will be custodied and executed by Folio Financial. Your custom managed portfolio will be constructed automatically based on your self-assessed risk profile that you will complete during sign-up.

When you sign-up, you will receive detailed instructional email communications to guide you through the onboarding process. As you have experienced, we care deeply about security, and the initial sign-up process will reflect that commitment to investor protection by verifying your identity to create and fund your portfolio. If you have any questions or feedback as you explore, please feel free to send them to support@collaboration.capital.


Christopher Knapp, CEO of Collaboration Capital (left) and Youngro Lee, CEO of NextSeed (right)