Humankind Benefit Corporation Releases First Annual Benefit Report

Rhea-AI Summary

Humankind Investments LLC has unveiled its first annual benefit report for the Humankind US Stock ETF (Ticker: HKND). This groundbreaking fund, recognized as the first benefit corporation ETF registered with the SEC, aims to align investment with human values based on the UN Principles for Responsible Investment. As of December 31, 2021, the ETF has attracted over $100 million in assets, focusing on companies that contribute positively to society through sectors like healthcare and clean water. The report highlights active engagement with companies to enhance their societal impact metrics.

Positive

• The Humankind US Stock ETF (HKND) is the first benefit corporation ETF registered with the SEC.
• The fund has amassed over $100 million in assets since its launch in February 2022.
• The annual report outlines engagement with companies to improve their societal impact, illustrating active investor participation.

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• None.

First and Only Benefit Corporation Fund Family Releases Details of Investment Strategy and Engagement Efforts

NEW YORK--(BUSINESS WIRE)-- Humankind Investments LLC, a quantitatively driven asset manager specializing in socially responsible investments, announced today the release of its fund family’s first annual benefit report. Humankind Benefit Corporation, represented by its first fund, The Humankind US Stock ETF (Ticker: HKND), is the first and only Registered Investment Company to file with the SEC as a benefit corporation. That makes this report the first of its kind, and it details the degree to which the Humankind Benefit Corporation has fulfilled its public benefit mission as of December 31, 2021.

With the benefit corporation structure, Humankind Investments is committed to aligning the mission of its fund with maximizing value for humanity as measured against the United Nations Principles for Responsible Investment (UNPRI). This first annual benefit report outlines how Humankind has worked to meet these goals through its selection process for companies within the ETF using its proprietary metric - “Humankind Value.” A company’s Humankind Value is a quantitative metric of each company’s positive and negative contributions to humanity. It measures a company’s impact on investors, customers, employees, and society at large.

“Whereas traditional fund families are burdened by their mission statements that may only benefit their investors; at Humankind we are spearheading a shift to bring inclusive value to all people involved,” said James Katz, CEO & Founder of Humankind Investments. “We believe that investors are never only investors – they are human beings. There is an element of enlightened self-interest when investors consider how companies are providing (or destroying) value for them outside their investment portfolio, and we strive to capture this value, which we believe is typically left on the table in traditional investment analysis.”

Key findings from the report include:

• The issuer companies that made up the largest percentage of HKND’s portfolio included companies that were involved in providing access to food, clean water, healthcare, or free digital services. These companies have created the most positive value for humanity as measured by their Humankind Value.
• Humankind Investments worked to engage a variety of companies through letter-writing, speaking at industry round tables, and meeting individually with company representatives to encourage them to improve their Humankind Values and make improvements to related disclosures.
• Humankind Investments engaged the services of a third-party proxy voting firm to help vote the shares of the companies that HKND owns in a socially responsible way.

This report follows the one-year anniversary of the Humankind US Stock ETF in February 2022. Since its launch, the fund has amassed $100+ million in assets.

About Humankind Investments

Humankind Investments was founded on the premise that it would be better for all of us if we paid closer attention to how our investments affect humankind. We are a quantitatively driven investment manager whose mission is to give investors concrete and measurable ways to invest in a manner that generates rewards for themselves and for humanity. We offer socially responsible portfolio management services for high-net-worth individuals and institutional clients as well as exchange traded fund products.

About the Humankind Benefit Corporation’s Humankind US Stock ETF

The Humankind US Stock ETF (Ticker: HKND) seeks to provide investment results that, before fees and expenses, correspond closely to the total return performance of the Humankind US Equity Index. Through its utilization of a “Humankind Value,” the Index is designed to help investors align their portfolio in a manner that accounts for the economic impact of their portfolio on humankind.

The Index methodology takes into consideration a company’s investor value, consumer value, employee value, and societal value. It then adjusts based on the company’s supply chain relationships. The Index is composed of the common stocks of domestic (US) companies that were chosen based on their positive Humankind Values and weighted in the Index according to these assigned scores, subject to certain prescribed liquidity and diversification adjustments.

Investors should carefully consider the investment objectives, risks, charges and expenses of the Humankind US Stock ETF. This and other important information about the Fund is contained in the prospectus, which can be obtained by calling 888-557-6692 or by visiting www.humankindfunds.com. The prospectus should be read carefully before investing. The Humankind US Stock ETF is distributed by Northern Lights Distributors, LLC member FINRA/SIPC. Humankind Investments, LLC and Northern Lights Distributors, LLC are not affiliated.

Important Risk Information

The Fund is a recently organized, diversified management investment company with limited operating history.

There is no assurance that the Fund will achieve its investment objective, and you can lose money investing in this Fund. The Fund is subject to Socially Responsible Investment (SRI) risk, which is the chance that stocks screened by the Index Sponsor for SRI criteria generally will underperform the stock market as a whole or that the particular stocks selected for the Index will, in the aggregate, trail returns of other mutual funds or ETFs screened for SRI criteria. In tracking the Index, the Fund may, from time to time, invest more heavily in companies in a particular economic sector or sectors, which would subject the Fund to proportionately higher exposure to the risks of that sector. The profitability of companies in the healthcare sector, as traditionally defined, including healthcare equipment and services companies, may be affected by government regulations and government healthcare programs, increases or decreases in the cost of medical products and services, an increased emphasis on outpatient services, demand for medical products and services and product liability claims, among other factors.

Investors in small- and medium-sized companies typically take on greater risk and price volatility than they would by investing in larger, more established companies. The value of your investment in the Fund is based on the values of the Fund’s investments, which may change due to economic and other events that affect markets generally, as well as those that affect particular regions, countries, industries, companies or governments. Although the Fund’s shares are approved for listing on the NYSE Arca (the “Exchange”), there can be no assurance that an active trading market will develop and be maintained for Fund shares. Although Fund shares are listed for trading on the Exchange, there can be no assurance that an active trading market for such shares will develop or be maintained. The Fund is not actively managed and therefore would not sell an equity security due to current or projected underperformance of a security, industry or sector, unless that security is removed from the Index.

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View source version on businesswire.com: https://www.businesswire.com/news/home/20220616005228/en/

Media:

Erica Warfield

323-500-0922

pro-humankind@prosek.com

Source: Humankind Investments LLC

FAQ

What are the key findings of the Humankind US Stock ETF benefit report?

The benefit report highlights that companies in the ETF focus on providing access to food, clean water, and healthcare, contributing positively to humanity through their Humankind Value.

When was the Humankind US Stock ETF launched?

The Humankind US Stock ETF (Ticker: HKND) was launched in February 2022.

How much capital has the Humankind US Stock ETF raised?

Since its launch, the Humankind US Stock ETF has raised over $100 million in assets.

What does the Humankind Value metric measure?

The Humankind Value metric quantitatively assesses each company's positive and negative contributions to humanity, focusing on its impact on stakeholders.

What is the purpose of the Humankind Investments' engagement efforts?

Humankind Investments engages with companies to encourage improvements in their Humankind Values and to enhance related disclosures.