- 1.Note from the CIO: Volatility is Not Risk
- 2.Investment Committee Decisions
- 3.Emerging Markets Sustainability Fund
- 4.DFA Sustainability Funds: Gun Manufacturer Divestment
- 5.1st Quarter Market Review: Sailing with the Tides
In March, Dimensional Fund Advisors launched the Emerging Markets Sustainability Fund. This is a core (total market) fund holding the vast majority of companies within the (approximately) 20 eligible emerging markets countries. It replaces the Emerging Markets Core Fund as our default emerging markets exposure.
The fund employs similar sustainability screening that the existing DFA U.S. and International Sustainable Funds use, ranking thousands of companies by their sustainability score and owning more of the high ranking companies and less of the low ranking companies. In general, the carbon footprints of the companies owned by these funds is 70-80% lower than their respective benchmarks of all publicly traded companies, and the funds do not own any companies with substantial fossil fuel reserves. Abacus has three seats on the Sustainability Council of advisors who consult Dimensional Funds on the strategy and implementation of sustainability. The Sustainability Council was instrumental in setting this fund as a priority and helping Dimensional deliver it.
We have already replaced clients’ emerging markets exposure with the new sustainable fund in retirement accounts. Such accounts have no tax consequences resulting from investment changes. We have also made the switch in taxable accounts for which the tax impact was relatively minor. Abacus advisors will review and coordinate with clients on a case by case basis regarding positions where the tax impact could be material.
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 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.
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