Recent events led Abacus, along with several other members of the DFA Sustainability Council, to request divestment from gun stocks. Abacus co-founders, Brent Kessel and Spencer Sherman, are both members of the DFA Sustainability Council. This group of advisors represents investors in the funds and is instrumental in influencing sustainable investment decisions.
As of March 1, 2018, the Dimensional Fund Advisors (DFA) US Sustainability Core Fund is no longer invested in gun manufacturers. Olin Corporation, Remington Arms Company, and Vista Outdoor are a few of the resulting exclusions*.
As always, our priority is to build the best investment portfolio for our clients. Once we build a portfolio, we ask if we can do it in a sustainable manner without impacting performance. In this case, the excluded companies made up less than 0.1% of the fund, so the financial impact is negligible.
The DFA International and Emerging Markets Sustainability Core Funds do not have exposure to gun manufacturers. In total, the DFA Sustainability Funds make up 70% of the Abacus Sustainable Portfolio’s equity allocation.
*Gun manufacturers defined as civil arms manufacturers by MSCI. A full list of exclusions within the US Sustainability Portfolio can be found here: https://us.dimensional.com/en/-/funds/us/fund-information-announcement/holdings-announcement-us-sustainability-march-2018.pdf
Disclosure: Abacus Wealth Partners, LLC (Abacus) is an SEC registered investment adviser with its principal place of business in the State of California. Abacus may only transact business in those states in which it is notice filed, or qualifies for an exemption or exclusion from notice filing requirements. This brochure is limited to the dissemination of general information pertaining to its investment advisory services. Any subsequent, direct communication by Abacus with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides. For information pertaining to the registration status of Abacus, please contact us or refer to the Investment Adviser Public Disclosure web site (www.adviserinfo.sec.gov).
This is not an offer to sell any type of security, and there is no investment currently available through Abacus, which would allow someone to invest in funds mentioned in the above article. Abacus Wealth Partners is the General Partner of Abacus Impact Fund 2013, LP, a fund of funds that ultimately has an interest in funds mentioned in the above article. The information presented in the “Sustainability Profile” is to provide additional qualitative reporting to Abacus clients who own Abacus Impact Fund 2013, LP, as well as to help educate Abacus clients about impact investing.
This information is provided for educational purposes only and should not be considered investment advice or a solicitation to buy or sell this security. This newsletter contains general information that is not suitable for everyone. The information contained herein should not be construed as personalized investment advice. Information was based on sources we deem to be reliable, but we make no representations as to its accuracy. Past performance is no guarantee of future results. There is no guarantee that the views and opinions expressed in this newsletter will come to pass. Investing in the stock market involves gains and losses and may not be suitable for all investors. Information presented herein is subject to change without notice and should not be considered as a solicitation to buy or sell any security. Information related to the firm’s performance is based on pure model portfolios only and is net of fees. Certain clients may have holdings that deviate from the model and as such individual client performance may be different than the results presented herein.
For additional information about Abacus, including fees and services, send for our disclosure brochure as set forth on Form ADV from us using the contact information herein. Please read the disclosure brochure carefully before you invest or send money.
