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.
We start with a total market framework that includes investments across all major asset classes, in many countries across developed and emerging markets. Where possible, we emphasize securities in parts of the market where research has shown higher expected returns, while simultaneously aligning investments to environmental and social values.
We emphasize a long-term, disciplined perspective and do not attempt to time the markets or predict winners or losers.
Research and our years of experience at the forefront of values-informed investing confirm that when portfolios are constructed in this way, we can better align your money with your values without sacrificing returns.
Values-Informed Portfolios
At Abacus, values-informed investing is not an opt-in. Our philosophy is that every investment has an impact: We aim to minimize the negative influence and maximize the positive influence of capital while still achieving your financial dreams.
Each of our portfolios reflects our investment principles of being both global and well-diversified, and all client portfolios contain investments with positive social, environmental, and/or governance (ESG) characteristics.
Sustainable Portfolio
Provides exposure to the vast majority of public companies while considering environmental factors like greenhouse gasses and fossil fuels, as well as reduced exposure to companies in the tobacco, animal testing, and weapons industries.
ESG Portfolio
Favors climate innovation, DEI and human rights, corporate board diversity and CEO pay, underserved community development, and affordable housing. High divestment from gambling, tobacco, animal testing, private prison, and weapons industries.
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 entire landscape of available solutions and build the most suitable investment strategy for each client. There are zero hidden fees. Every recommendation is 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 values and 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 diligently monitor your portfolio 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 expertise 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 has 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 18% of US-domiciled equity funds and 15% 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.
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.
08
Let markets work for you.
The financial markets have 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 eliminate the stress and worry of managing your own portfolio.
