New Metrics 9/27 16.45 - 17.30 Panel Paul Herman

1. All Types of Investors
Can Integrate Impact Investing
Family Offices are very agile and
innovative in impact investing
Individual
Investors
Family
Foundations
Offices
Portfolio
Seeking
Corporate
Impact
+ Profit Endowments
Treasuries
Retirement
Pensions
Plans
CONFIDENTIAL © 2006-2012 HIP Investor Inc. 1

2. Trillions Are Invested for Impact
Growing in Europe and the USA
Source: www.eurosif.org; www.ussif.org
CONFIDENTIAL © 2006-2012 HIP Investor Inc. 2

3. ESG in Each Asset Class Still
Ripe for Sustainability Portfolios
Source: Mercer ratings
CONFIDENTIAL © 2006-2012 HIP Investor Inc. 3

4. Harvard Professors:
Sustainability
Can Benefit
Portfolio Value
CONFIDENTIAL © 2006-2012 HIP Investor Inc. 4

5. CONFIDENTIAL © 2006-2012 HIP Investor Inc. 5

6. CONFIDENTIAL © 2006-2012 HIP Investor Inc. 6

7. CONFIDENTIAL © 2006-2012 HIP Investor Inc. 7

8. Impact Investing Seeks to “Do Good”
and “Make Money” at the Same Time
Solve Seek Higher
Human
Needs
(Do Good)
HIP Profits
(Make
Money)
We call this “HIP” = Human Impact + Profit
CONFIDENTIAL © 2006-2012 HIP Investor Inc. 8

9. In this Portfolio, HIP Scores Can Vary by Asset Class,
With a Wide Range of Human Impact + Profit
CONFIDENTIAL © 2006-2012 HIP Investor Inc. 9

10. IMPACT and PERFORMANCE REPORT “HEAT MAP” (Sample)

11. RISK, RETURN, IMPACT and ALLOCATION (Sample)
Relative to an Efficient Frontier
ALLOCATION: size of
RETURNS:
bubbles is percent (%)
Annualized
Allocated to Asset Class
Returns*
IMPACT: color of bubbles:
Green = higher IMPACT
Yellow = medium IMPACT
Red = Lower IMPACT
RISK: Standard
Deviation of Returns*
* For annualized time period over the past 3 years ending July 30, 2012 (or for data since inception of strategy)