Developed in 2004, HIP Investor’s unique methodology rates and ranks all types of investments for future risk, return potential and net impact on society. HIP’s quantitative analysis of fundamentals systematically identifies the drivers of 84% of market value that cannot be found on the balance sheet. HIP Ratings are a useful tool for investors to fund human, social and environmental solutions — while pursuing optimal risk-adjusted returns.
HIP Impact Ratings score and rank investments on a 0 to 100 spectrum that captures metrics from operational outcomes, products and services, and management practices. Higher HIP ratings tend to correlate with higher returns, lower risk, and more positive impact. Lower ratings tend to generate lower returns, more volatility, and less impact.
Since the HIP Ratings cover all asset classes, including Corporate Bonds and Equities as well as Municipal and Sovereign Bonds, the ratings can be applied to mutual funds, ETFs, and entire portfolios. This makes the HIP Ratings useful to all types of investors, including foundations, endowments, 401(k) plans, as well as other asset managers and investment advisers.
HIP Investor Inc. offers investors a number of investment strategies designed to seek higher financial returns with lower risk due to positive, quantifiable human, social and environmental results. HIP’s fundamentals-based approach seeks to outperform traditional benchmarks by over-weighting material ESG factors that are direct drivers of cash flow generation and risk mitigation.
To date, HIP has developed six unique investment strategies across multiple asset classes, all of which can be characterized as “enhanced passive” indexes. Contrary to traditional investment indexes which tend to be market cap weighted, the constituents of each HIP strategies are weighted according to HIP Ratings. This means allocations are based on fundamental factors directly related to firm performance, rather than secondary market value.
HIP Investor works with institutional clients and high-net worth individuals to analyze the human impact associated with their investment portfolios. This process follows three steps:
- Apply HIP Ratings to all investments. Funds/ETFs are rated according to the underlying constituents.
- Highlight the highs and lows of the portfolio, with suggestions for improvements
- Design customized solutions according to specific themes, such as “Fossil Free”.
Some of HIPs Institutional clients include Becker College, the first US college to commit its endowment to 100% social impact, and st?k, an environmental consulting firm that is now the first US company to offer a fossil free, fully diversified allocation model according to 5 risk levels.
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You may have additional ideas on how to work together; HIP is here to support you in satisfying your clients, evaluating and scoring investment choices on sustainability, offering HIP Portfolio choices, and advancing investing into the 21st century.
As your partner, we are here to help and enhance how you advise your clients or manage their wealth to build a better world as well as seek to realize their financial and life goals.