CHICAGO--(BUSINESS WIRE)--Harbor Capital Advisors, Inc. (“Harbor”), a premier multi-manager investment firm offering access to innovative and specialized expertise across a range of investment strategies and vehicles, today launched the Harbor Corporate Culture ETF (ticker: HAPI). HAPI marks the expansion of Harbor’s commitment to give investors the ability to access the power of a company’s most important asset – its people.
The fully transparent ETF will seek to provide investment results that correspond, before fees and expenses, to the performance of the Canadian Imperial Bank of Commerce (CIBC) Human Capital Index (the “Index”). The Index was developed and is owned by CIBC (the “Index Provider”).
The CIBC Human Capital Index and HAPI are built around the Human Capital Factor, a distinctive investment factor developed by Irrational Capital, an investment research and development firm that applies workplace behavioral science and data science in an effort to capture the powerful connection between human capital and value creation.
The Human Capital Factor is based on proprietary research conducted by Irrational Capital. It enables a strong, systematic assessment of a company’s corporate culture and its link to potential future equity performance. The Human Capital Factor first became publicly investable through the Harbor Corporate Culture Leaders ETF (ticker: HAPY), and serves as the foundation for HAPI, allowing for a more diversified and sector constrained approach to this new field of human capital investing.
“We continue to see strong investor demand in the field of human capital investing and are thrilled to partner with world-renowned behavioral scientist Dan Ariely and his colleagues at Irrational Capital on our second Corporate Culture ETF,” said Kristof Gleich, President & CIO, Harbor Capital. “HAPI provides investors with more options to access the Human Capital Factor, which we believe is the most comprehensive measure of employee motivation, and a differentiated investment factor linked to future equity performance. We look forward to finding innovative ways to apply the Human Capital Factor to a myriad of investment strategies in the future.”
“We’re delighted to expand our partnership with the team at Harbor Capital to deliver further evidence that doing the right thing pays and is strongly linked to future investment performance,” said Dan Ariely, Irrational Capital’s Co-Founder, “Our work has clearly proven that corporate culture and employee motivation are deeply connected with financial performance. Harbor Capital is on the leading edge of developing products that provide access to this new factor.”
The Index is comprised of a modified market capitalization-weighted portfolio of equity securities of approximately 150 U.S. companies. These are the companies identified by Irrational Capital LLC (“Irrational Capital”) as possessing strong corporate culture (including factors such as motivation, compensation fairness, trust and transparency) based on its proprietary scoring methodology.
This offering adds to Harbor’s growing lineup of ETFs across investment themes and asset classes. Along with ETFs, Harbor Capital offers a curated experience of mutual funds and collective investment trusts (CITs).
About Harbor Capital
Harbor Capital is dedicated to helping clients achieve investment objectives with an active, cost-aware investing approach. For more than 30 years, our investment team has served as a guide for clients, developing portfolio strategies based on rigorous research and market analysis; sourcing select specialists and deep insights in each asset class; and evaluating performance to ensure that decisions remain in the best interests of our clients. Headquartered in Chicago, Harbor Capital Advisors had total assets under management of approximately $40.6 billion as of June 30, 2022. For more information, visit harborcapital.com.
About Irrational Capital
Irrational Capital is an investment research firm that applies workplace behavioral science, financial acumen and data science to quantify the impact of corporate culture and employee motivation on potential future equity performance. Through cutting edge research on large, proprietary and public data sets, Irrational Capital works with partners to provide access to investment strategies offering exposure to the Human Capital Factor, a systematic, quantitative and investment factor which is designed to link workplace environments/culture with positive-future equity returns. Irrational Capital was founded in 2017 and is headquartered outside of Philadelphia, Pennsylvania. To learn more about Irrational Capital, please visit www.irrational.capital.
About CIBC
CIBC is a leading North American financial institution with 13 million personal banking, business, public sector and institutional clients. CIBC offers a full range of advice, solutions and services in the United States, across Canada and around the world. In the US, CIBC Bank USA provides commercial banking, private and personal banking and small business banking solutions and CIBC Private Wealth offers investment management, wealth strategies and legacy planning.
Investors should carefully consider the investment objectives, risks, charges and expenses of a Harbor fund before investing. To obtain a summary prospectus or prospectus for this and other information, visit harborcapital.com or call 800-422-1050. Read it carefully before investing.
All investments involve risk including the possible loss of principal.
There is no guarantee that the investment objective of the Fund will be achieved. Stock markets are volatile and equity values can decline significantly in response to adverse issuer, political, regulatory, market and economic conditions. The Fund may not exactly track the performance of the Index with perfect accuracy at all times. Tracking error may occur because of pricing differences, timing and costs incurred by the fund or during times of heightened market volatility.
The Fund relies on the Index provider's methodology in assessing whether a company may be considered a corporate culture leader. There is no guarantee that the construction methodology will accurately assess a company to include or exclude it from the index which could have an adverse effect on the Fund's returns. The Fund's assets may be concentrated in a particular sector or industries to the extent the Index is concentrated and is subject to the risk that economic, political, or other market conditions that have a negative effect on that sector or industry will negatively impact the value of the Fund.
Companies in the information technology sector can be significantly affected by short product cycles, obsolescence of existing technology, impairment or loss of intellectual property rights, falling prices and profits, competition from new market entrants, government regulation and other factors.
Unlike mutual funds, ETFs may trade at a premium or discount to their net asset value. The ETF is new and has limited operating history to judge.
Shares are bought and sold at market price not net asset value (NAV). Market price returns are based upon the closing composite market price and do not represent the returns you would receive if you traded shares at other times.
The CIBC Human Capital Index consists of a modified market-weighted portfolio of the equity securities of U.S. companies identified by Irrational Capital LLC (“Irrational Capital”) as those it believes to possess strong corporate culture based on its proprietary scoring methodology. The Index is developed by the Canadian Imperial Bank of Commerce (the “Index Provider”), Irrational Capital evaluates companies based on a proprietary, rules-based scoring methodology it developed by leveraging its research in behavioral science, data science and human capital.
Constituents of the Solactive GBS United States 500 Index (the “index universe”) at the time of Index reconstitution are eligible for inclusion in the Index. Each company in the index universe that is also identified by Irrational Capital on its list of high-scoring companies (based on the most current scores as of each reconstitution) will be included in the Index. Index constituents in the same sector are weighted based on their float-adjusted market capitalizations. On reconstitution dates, the Index will target the same sector weights as the index universe. If after the Index’s weighting and capping rules are applied, a sector’s weight in the Index would be less than its weight in the index universe, the Index will hold exchange-traded funds that invest specifically in the stocks and securities of the corresponding sector (known as sector ETFs), or such other sector proxy as the Index Provider may determine, to fill the remaining weight and ensure sector neutrality as compared with the index universe. The index listed is unmanaged and does not reflect fees and expenses and is not available for direct investment.
Foreside Fund Services, LLC. is the Distributor of the Harbor Corporate Culture ETF and the Harbor Corporate Culture Leaders ETF.
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