HIP Investor’s Investment Approach Prioritizes REITs That Deliver
Environmental and Social Results that Link to Stronger Financial Performance
SAN FRANCISCO – Can real-estate investment trusts (REITs) investing in firms that manage their properties using a more environmentally sustainable and socially responsible approach realize better financial performance? Yes, say the latest financial results for the latest 3-month and 1-year periods tracked by InformaPSN, recognizing Top 10 performance by an investment manager that integrates these value-creating factors into their portfolio selection criteria.
The HIP Sustainable Real Estate Portfolio achieved “top gun” performance – a top 10 strategy in a field of 98 REIT strategies tracked – for the HIP REIT’s quarterly (#3) and one year (#7) performance ending March 31, 2013, according to Informa PSN, a leading financial services performance database. The portfolio is managed by HIP (Human Impact + Profit) Investor Inc., a San Francisco based manager of HIP-rated portfolios – and a rater of more than 4000 public companies, covering $45 trillion of market value (85% of global equity value), $24 trillion of corporate bonds, and more than 300 muni-bond issuers.
HIP-rated portfolios integrate a proprietary HIP Score?– a zero-to-100 quantitative rating – to assess knowable but ignored risks, and value potential upside opportunities. While many investment indexes and portfolios are weighted by market value, HIP’s analysis shows that “the market” does not fully value the human, social and environmental capital of stocks, bonds, REITs and other securities. Yet these factors do reduce risk and can enhance cash flow, profit and shareholder value. The latest results validate the HIP investment approach that investors can use to seek to “make money” by “doing good.”
The HIP Sustainable Real Estate Portfolio contains U.S.-based Real Estate Investment Trusts (REITs), including land management and natural resource companies. HIP scores each REIT for its results from sustainability factors: including higher top-line revenue growth and better renewal rates linked to tenants who seek out LEED-certifiable properties. LEED practices yield bottom-line savings from lesser water and energy. The HIP REIT portfolio consists of 45 securities, and has a current expected annual yield of 3.38% (exceeding the current benchmark yield of 2.3%).
“HIP is delighted to receive Informa’s ‘Top Gun’ and top-decile ranking for our sustainable real estate portfolio. This award recognizes the potential to realize both positive impact for society at the same time as enhancing the bottom line for companies and investors. This seemingly intangible value of environmental, social, and human capital is very tangible and contributes to lower risk and stronger return potential,” said R. Paul Herman, Chief Investment Officer and founder of HIP Investor Inc. “Human impact and profit are linked, and can be synergistic for investing, especially in real estate.”
About HIP Investor Inc – HIP Investor is an independent investment adviser registered in the states of CA, WA, and IL, with clients nationwide. HIP stands for Human Impact and Profit. HIP sees that the strongest portfolios are built from leading companies who pursue competitive advantage and bottom-line benefits from improvements in quantifiable metrics, such as human, social and environmental capital. Investors, advisors and fiduciaries seeking to be more “HIP” in their investing can benefit from investing in HIP-rated portfolios, and by licensing HIP Scores for their portfolios, mutual funds, ETFs, and managed accounts. HIP rates 4000+ stocks, bonds (including munis, corporates, sovereigns and agencies), REITs and other investments, to evaluate their Human Impact + Profit potential. http://www.HIPinvestor.com
About Informa PSN – The PSN money manager database, produced by Informa Investment Solutions is one of the leading independent suppliers of comprehensive investment manager data and evaluation. PSN tracks over 2,000 money managers and 20,000 investment products. http://www.informais.com
Nick Gower, HIP Investor Inc., nick@HIPinvestor.com, +1 864 420 4210
Shilpa Andalkar, HIP Investor Inc., shilpa@HIPinvestor.com +1 415 295 4708
R. Paul Herman, HIP Investor Inc., paul@HIPinvestor.com, +1 415 902 7741
NOTE: This is not an offer of securities nor a solicitation. The information presented is for information and education purposes, and does not imply any investment recommendations. Past performance is not indicative of future results. All investing risks loss of principal. Details and full disclosures are at www.HIPinvestor.com