Investment Management
Every single investment has an impact—on your values, your goals, your peace of mind, and the world at large.
Our Investment Philosophy
The Abacus investment philosophy is based on Nobel Prize-winning academic research and decades of empirical evidence from historical market data.
Our framework seeks to provide broad market exposure across multiple asset classes in both developed and emerging markets. Where possible, the strategy emphasizes market segments that academic research has historically associated with higher expected returns, while also considering environmental and social factors in the investment selection process.
Additionally, this approach focuses on maintaining a long-term, disciplined perspective and avoids attempting to time the markets or predict individual outperformers.
Historical data and our years of experience in values-aligned investing suggest that portfolios constructed using these principles may offer opportunities to better align your money with your values while still pursuing your financial goals.
Values-Aligned Portfolios
At Abacus, values-aligned investing is not an opt-in. Our philosophy is that every investment can have an impact: We aim to minimize the negative influence and maximize the positive influence of capital without losing focus of your financial dreams.
While each of our model portfolios adheres to our investment principles of being both global and well-diversified, they also reflect our commitment to values alignment by incorporating social, environmental, and/or governance (ESG) considerations.
Sustainable Portfolio
Prioritizes addressing climate change via greenhouse gas emissions while also considering related sustainability concerns such as a company’s land use, toxic waste production, and water management.
ESG Portfolio
Favors a combination of greenhouse gas emissions reduction, climate innovation, DEI and human rights, corporate board diversity and CEO pay, underserved community development, and affordable housing.
Social Justice Portfolio
Integrates racial, gender, economic, and climate justice metrics. The core equity holding, Adasina’s JSTC ETF, focuses on intersectional justice issues such as subminimum wages, money bail, land rights, predatory lending, and extractive agriculture.
Our Investment Approach
We don’t earn a cent from the managers or strategies we recommend, and we don’t offer proprietary products or funds. This lets us impartially analyze the landscape of available solutions and build a suitable investment strategy for each client. There are zero hidden fees. Recommendations are made in your best interest.
Our investment strategies are based on decades of research, much done by Nobel Laureates. Approved investments are scrutinized by our analysts, voted on by our Investment Committee, then ultimately personalized to your goals with your advisory team. This disciplined system creates guardrails and consistency so advisors and teams choose from best-in-class managers and funds to build your portfolio.
Invest. Divest. Engage. These are the three pillars of impact our portfolios are built upon. Many companies and government entities are taking positive, impactful actions. We invest in those that support your values and divest from those that are misaligned. When total divestment isn’t possible, we have shareholder engagement, which many studies show to be the most impactful way to significantly influence a company’s behavior.
We monitor our models and the investment markets to take disciplined action when it benefits you, not Wall Street. Our team reviews your portfolio for assistance with cash management, rebalancing, and opportunities for tax loss harvesting.
We take care of all the details so that you can focus on what matters most.
Abacus Portfolio Impact Reports
Each year, we make it a priority to reflect upon and highlight how our clients’ mindful investments truly help expand what’s possible with money.
Combining investment analysis with storytelling, these portfolio impact reports share insights into our data-driven approach to public market equity investments. With a commitment to environmental, social, and corporate governance factors (ESG), these investments aim to make a difference in the world.
Looking for a Better Investment Experience?
Delegating investment management to a financial advisor allows you to focus on what brings you joy, eliminating the stress and worry of managing your portfolio. Our investment philosophy focuses on smart, global diversification and letting the markets work for you by staying invested during times of volatility. Focusing on what you can control and managing emotions are key to having success as an investor.
Explore our 10 Key Investment Principles below or download the guide.
Key Principles to Improve Your Odds of Success
01
Focus on what you can control.
A financial advisor can offer experience and guidance tailored to your financial needs while helping you focus on actions that add value. This can lead to a better investment experience.
02
Manage your emotions.
Many people struggle to separate their emotions from investing. Markets go up and down. Reacting to the daily headlines and current market conditions may lead to making poor investment decisions.
03
Be mindful of your impact.
Every investment can have an impact. There are three ways to bring personal values into an investment portfolio. You can remove companies that don’t match your values. You can invest more heavily in companies that do share your values. You can invest in companies that don’t match your values and then engage with the company to change their policies.
04
Don’t try to outguess the market.
The market’s pricing power works against fund managers who try to outperform through stock picking or market timing. As evidence, only 17% of US-domiciled equity funds and 14% of fixed income funds have survived and outperformed their benchmarks over the past 20 years.
05
Resist chasing past performance.
Some investors select funds based on their past returns. Yet, past performance offers little insight into a fund’s future returns. For example, most funds in the top quartile of previous five-year returns did not maintain a top-quartile ranking in the following five years.
06
Practice smart diversification.
Holding securities across many market segments can help manage overall risk. But diversifying within your home market may not be enough. Global diversification can broaden your investment universe.
07
Consider the drivers of return.
Expected returns are driven by prices investors pay and cash flow they expect to receive, however there are things that impact expected returns.
08
Let markets work for you.
The financial markets have traditionally rewarded long-term investors. People expect a positive return on the capital they supply, and, historically, the equity and bond markets have provided growth of wealth that has more than offset inflation.
09
Avoid market timing.
You never know which market segments will outperform from year to year. By holding a globally diversified portfolio, investors are well positioned to seek returns wherever they occur.
10
Follow your passion!
You didn’t become successful by worrying about your money. Delegating to a financial advisor can allow you to focus on the things that bring you joy and help eliminate the stress and worry of managing your own portfolio.
Disclosures: Past performance is no guarantee of future results. Indices are not available for direct investment. Diversification does not eliminate the risk of market loss. There is no guarantee investment strategies will be successful. See additional exhibit information and important disclosures.
