Case Study - Spaceship Earth Portfolio
Micro investing platform Spaceship has just added another fund – called the Spaceship Earth Portfolio – which carries no fees or costs on balances less than $5,000 and aims to have a positive impact on people and the planet. Spaceship chief executive officer Andrew Moore responded to some questions about the launch for Industry Moves.
What goes into launching a new product?
The Spaceship Earth Portfolio is the first new product we’ve created since launching Spaceship Voyager in May 2018, and we were able to use customer feedback and our learnings from our earlier launches as a foundation.
We wanted to create a true-to-label ESG fund, so focusing on our investment strategy was the most important part of launching the new product for us. Our investment team decided to use the UN Sustainable Development Goals as a basis for the strategy, layered with our ‘Where the World is Going’ methodology.
Why did you decide to launch now?
Our customers have been asking for this type of product for a while, so that was one part of it. Separately, as a business, we’ve turned our attention to developing a roadmap for how the company will support its forward-thinking values and drive towards its sustainability goals by 2025. With that in mind, this was the logical next step for us as a business.
How did you research market opportunities?
We had surveyed customers a while back and that formed the basis for our initial research. Earlier this year, we did another customer insight survey to hone in on the demand.
What challenges did you face and how were they overcome?
We’re still a small startup, so the biggest challenge for us is often deciding what to build next. This was a project that we were really passionate about, but we had some other priorities we needed to see to first. We also built it after moving our entire workforce to be remote due to COVID-19. This added to the challenge, as we were learning how to adjust our communication styles and processes on the fly.
How did you decide on service providers?
With our Spaceship Voyager product, we do almost everything in-house, so this wasn’t a huge part of the project for us.
Can you explain the fee structure?
Yes, so all three of our Spaceship Voyager portfolios are fee-free for the first $5,000. Then, for the Spaceship Earth Portfolio, we charge a management fee of 0.10% p.a., but only on the portion of your balance that is more than $5,000.