Diversify Your Portfolio with an Environmental Investment Options and Dimensional Funds
Many people ask us, “What is the best way to build a well-diversified portfolio?” We have found that it is important to build a portfolio that reflects both your personality and what you want out of investing. That’s why we work with our clients to create an individualized plan for their investments.
When you’re in need of a financial advisor with environmentally-friendly investment options, Summit Financial Partners is your best bet. We’ll help you design and implement a solid diversified portfolio that’s built using our innovative dimensional funds.
Most investors have a “home bias,” making them the most confident in investing in companies that are based in their home country. However, the most reliable path to investment success is to diversify your investment into companies that are based all over the world. Additionally, while stocks of larger companies tend to get the most media attention and are more often held in investor portfolios than stocks of smaller companies, adding small company stocks into your portfolio has historically increased performance over time.
At Summit Financial Partners, we build diversified client portfolios that are in-line with each individual’s risk tolerance.For many clients, investing in line with their passions is important to them. The most common concern that we hear is in regard to environmental issues. For those clients we have the ability to use an array of mutual funds that make investing in companies that produce the least amount of Greenhouse Gas Emissions per dollar of sales a priority.
Historically, investment returns were often sacrificed if one was aligning their investments with their environmental passions. In recent years, that has no longer held true, and in fact returns are often in-line with or exceed the returns of similar funds without the environmental mandate.We build client portfolios primarily using funds managed by Dimensional Fund Advisors. Dimensional “believes that investors can have a successful investment experience without having to guess the market. The firm trusts market prices and applies a scientific, transparent and process-driven investment approach to pursue higher expected returns.”
Dimensional, or DFA as it is commonly referred to, focuses on the various drivers, or factors, of return: the size of the company, the relative price of the security versus the company’s financial success, and how profitably a company is managed.In addition to focusing on factors of returns, DFA pays close attention to the governance of the companies of the stocks and bonds that it purchases. Governance refers to how a company’s leadership steers the company who benefits from their decisions. Corporate governance should take into account all stakeholders, including investors.DFA takes well-known and respected academic research in the financial world, and implements those ideas, often partnering with the top academics who author the research. Their approach is based on solid scientific knowledge.We can help you reach your goals!
For nearly twenty years, Summit Financial Partners has been helping individuals and families reach their financial goals and to enjoy the comfortable retirement lifestyle they dreamed of.
Our offices are located just outside of Richmond in Glen Allen.
Call us today at 804-290-0162 to schedule an appointment.
