Sustainable, Impactful + Fossil Free 401(k)s
ratings, education, & Target-Risk Allocation Portfolios to invest in the future you want
We Provide 401(k) Participants, Plan Sponsors & Providers with
Sustainability Ratings
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 90% of market value not typically found on the balance sheet. HIP Ratings are a useful tool for investors to fund human, social and environmental solutions — while seeking 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 have correlated with higher Total Shareholder Return (TSR) and lower HIP Ratings have correlated with lower— or even negative—TSR for 14,240 global equities for the 5 years ending 12/31/2023. By applying HIP’s quantitative fundamental ESG ratings, investors are able to pursue optimal risk-adjusted returns while funding measurable human, social and environmental solutions.
Higher HIP Ratings typically link with
Higher 5-year Total Shareholder Return
We Analyze & Educate on
401(k) Choices
HIP Investor serves 401(k) plan sponsors to analyze the human, social and environmental impact associated with their 401(k) fund choices, and HIP educates 401(k) fiduciaries and participants. Our HIP approach follows these 5 steps:
- Calculate impact of all investment choices. Funds/ETFs are rated by underlying constituent holdings.
- Highlight the impact leaders and laggards of the plan, with suggestions for additions or drops.
- Design customized advice according to specific impact themes, such as “Fossil Free” & “Gender Equity”.
- Provide access to this Impact (ESG) analysis, along with financial portfolio reporting, on our HIP Portal.
- Support employees / participant decisions about their 401(k) investment choices.
HIP Fossil Free Allocation Portfolios
Portfolios can also be gunmaker free & palm oil free
HIP Investor ‘s Fossil Free allocation models for 401(k) plans allow plan participants an easy way to invest in a carbon efficient economy. Similar to the traditional Target Risk Funds, the HIP Fossil Free Portfolios are diversified according to 5 levels of risk tolerance and time horizon, ranging from Conservative to Moderate to Aggressive. The portfolios are invested in mutual funds and ETFs that meet the following criteria:
- Zero exposure to companies that generate the majority of their revenues throughout the fossil fuel
value chain, including exploration, drilling, production, and distribution. - Higher levels of transparency and performance in Environment, Social, and Governance (ESG) factors,
as defined by the funds’ HIP Ratings. - Competitive fee structure while seeking optimal risk adjusted returns.
HIP Fossil Free Target Risk Portfolios
Portfolios can also be gunmaker free & palm oil free
FEE STRUCTURES
FOR FUND RATINGS:
10 basis points of plan assets ($2,500 minimum) for fund ratings and participant education
FOR MODEL PORTFOLIOS:
50 basis points of plan assets allocated to HIP Investor as model manager
DIVERSIFICATION
HIP’S Fossil Free Allocation Models are
diversified with varying exposure to the
following asset classes:
- Fixed Income
- Domestic Large Cap Equity
- Domestic Small/Mid Cap Equity
- Thematic Equity
- International Equity
RISK LEVELS
HIP’S Allocation Models are available
according to five levels of risk tolerance.
ratings, education, & Target-Risk Allocation Portfolios to invest in the future you want
Engage Your Employees
In A Sustainable 401(k) Plan
Your staff, especially Millennials, women, and engineers, are likely to be more satisfied when “doing good” and “being sustainable” at work. Enhancing your 401(k) plan is a path to deeper employee engagement. With HIP Ratings and HIP’s Fossil Free 401(k) Portfolios, your employees can become more excited about investing in their 401(k), can generate more employee engagement, participation, and contributions to their 401(k) plan’s fund
choices – and can benefit workplace innovation too.
Higher Participation Rate
Higher Contribution Rates
Higher Employee Engagement
When your plan participants become more engaged, participation rates can reach 100% and contribution rates can increase. Employees may bring more ideas and innovation to your business, and may be more excited to invest in their future. Investors are increasingly demanding sustainable investment options, and HIP and our partners can help you pursue these business benefits.
Financial Advisors Seeking To Integrate ESG
Winning New Clients With Sustainable 401(k) Options
HIP and our partners can help you:
- Learn the latest US DOL guidance on sustainable ESG investing in 401(k)s
- Convert new clients with a unique, impactful value proposition
- Choose a recordkeeping platform that supports ESG investments
- Select strategic alliances for streamlined payroll integration, fiduciary services & financial wellness
- Overlay ESG, Impact & Sustainability ratings on your fund choices
- Include ESG ratings onto your 401(k) client reporting
- Add Fossil-fuel-free portfolio options for impact-focused clients
If Your Company Doesn’t Offer A 401(k), Invest In HIP Strategies & Portfolios In Your
IRA, Roth IRA & SEP IRA Retirement Funds
HIP Investment Strategies and HIP Fossil Free Portfolios are available on multiple brokerage platforms for investors and advisors. HIP Strategies have track records of 4 to 14 years.
ESG Impact Themes:
- Science-Based Targets For Climate Action
- Great Place To Work
- Sustainable Real Estate
- Sustainable Global Dividends
- Fossil Free HIP 100
- HIP 100 Core
Investment Advisor Platforms:
- Altruist
- Charles Schwab
- Goldman Sachs’ Folio
- Freedom Advisors (TAMP)
How HIP + Partners Can Serve Companies
Several Levels Of Impact Integration
IMPACT ADVISOR (with RIA)
401(k) PLAN ADVISORS
401(k) RECORD KEEPERS & TPA
401(k) CUSTODIAN
401(k) DIVERSIFIED PORTFOLIOS
Take Action & Go Fossil Free
Read The Toolkit & Watch The Webinar In Collaboration With As You Sow
In addition to providing fossil free portfolios and impact investment strategies, HIP collaborates and educates with industry leaders to develop climate action toolkits and webinars. Consider sharing these materials within your company to cultivate changes towards a more sustainable economy.
HIP Investor Ratings
HIP Impact Ratings are quantitative based ratings to fund positive impact and optimized risk-adjusted investments.
HIP ratings span...
Sign up for a free 14-day trial of the HIP Ratings portal
HIP’s new Impact Investing Portal helps you identify dirty and low/negative impact investments that can be more risky and find replacements that support our changing economy
