Gerald Hines - Hines Investments

Our Commitment to Families and Institutions

We are a family, dedicated to serving families and institutions with care and diligence. Our disciplined approach to portfolio management is guided by a single principle: the protection and growth of capital entrusted to us. Bound by a strict investment policy, we focus exclusively on industry-leading companies and investment-grade bonds, creating portfolios we believe in fully. In fact, we are personally invested in the same portfolios as our clients.

Foremost, our guiding principle is on the protection of capital that the client has entrusted to our management. Our viewpoint is simple. There are two types of losses we can present to a client: the loss of capital, or the loss of opportunity.

"If we protect the capital, there is always another opportunity!"

Performance results set out in this document are based on composite of CIBC Wood Gundy Advisor Managed Accounts (“AMA”) with more than $75,000 invested in a specified investment strategy managed by the AMA Portfolio Manager.   Composite inception date is based after the second month the first AMA account opened in the strategy. The subsequent AMA accounts in the strategy are included after second month following their inception. Also included in the composite are closed AMA accounts that held in the strategy, up to the last full month the strategy was held. Composite performance returns are geometrically linked and calculated by weighting each AMA account’s monthly performance, including changes in securities values, and accrued income (i.e. dividend and interest), against its market value at the beginning of each month, as represented by the market value at the opening of the first business day of each month. Performance results are expressed in stated strategy’s base currency and are calculated based on gross of fees. Individual account performance results for clients of AMA invested in the Strategy may also materially differ from the performance results set out in this document, which are based on the Composite, due to the factors described above, and other factors such as an account’s size, the length of time the Strategy has been held, cash flows in and out of the individual AMA client account, trade execution timing, market conditions and movements, trading prices, foreign exchange rates, specific client constraints against purchasing securities of related and connected issuers to CIBC Wood Gundy.   Performance returns are gross of AMA investment management fees, and other expenses, if any. Each individual account’s performance returns will be reduced by these fees and expenses. Past performance may not be repeated and is not indicative of future results. This document is prepared for informational purposes only and is subject to change without notice. This document is not to be construed as an offer to sell, or solicitation for, or an offer to buy any AMA strategy or other securities. Consideration of individual circumstances and current events is critical to sound investment planning. All investments carry a certain degree of risk. It is important to review objectives, risk tolerance, liquidity needs, tax consequences and any other considerations before choosing an AMA strategy.

Risk Statistics

Our goal is to achieve lower volatility (σ), take on less risk than the market (β), and add value through stock selection (α) to achieve superior returns.

For example, in our Global Dividend, using the annualized 5 year statistics, we are:

30% less volatile than the market = 1 - (9.69 / 13.86)
42% less risk than the market = 1 - (0.58 / 1)
4.23% value added through higher risk adjusted returns than the market

Mandate	3YR			5YR			10YR
Mandate	σ	α	β	σ	α	β	σ	α	β
Global Balanced	7.34	1.48%	0.67	6.77	2.89%	0.47	6.26	2.77%	0.55
Benchmark	9.61			9.95			8.08
Global Dividend	10.85	3.61%	0.76	9.92	4.85%	0.58	9.00	3.54%	0.64
Benchmark	12.30			13.64			11.32
Global Growth	11.36	1.11%	0.54	10.69	0.33%	0.55
Benchmark	16.78			16.04

σ = Standard Deviation – Gauge of risk that measures total volatility. Higher standard deviation means more volatility
α = Alpha – Measure of return that cannot be attributed to the market. PM’s risk adjusted return compared to benchmark
β = Beta – Return attributed to market movements. Beta of less than 1 is less risky then the market.

Benchmarks
Global Balanced = 40% FTSE Canada Universe Bond Index; 30% S&P/TSX Composite Index; 20% S&P 500 Index; 10% MSCI EAFE Index
Global Dividend = 50% S&P/TSX Composite Index; 25% S&P 500 Index; 25% MSCI EAFE Index
Global Growth = 100% MSCI World Growth Index

Risk Stats as of September 30, 2024

Performance results set out in this document are based on composite of CIBC Wood Gundy Advisor Managed Accounts (“AMA”) with more than $75,000 invested in a specified investment strategy managed by the AMA Portfolio Manager. Composite inception date is based after the second month the first AMA account opened in the strategy. The subsequent AMA accounts in the strategy are included after second month following their inception. Also included in the composite are closed AMA accounts that held in the strategy, up to the last full month the strategy was held. Composite performance returns are geometrically linked and calculated by weighting each AMA account’s monthly performance, including changes in securities values, and accrued income (i.e. dividend and interest), against its market value at the beginning of each month, as represented by the market value at the opening of the first business day of each month. Performance results are expressed in stated strategy’s base currency and are calculated based on gross of fees. Individual account performance results for clients of AMA invested in the Strategy may also materially differ from the performance results set out in this document, which are based on the Composite, due to the factors described above, and other factors such as an account’s size, the length of time the Strategy has been held, cash flows in and out of the individual AMA client account, trade execution timing, market conditions and movements, trading prices, foreign exchange rates, specific client constraints against purchasing securities of related and connected issuers to CIBC Wood Gundy. Performance returns are gross of AMA investment management fees, and other expenses, if any. Each individual account’s performance returns will be reduced by these fees and expenses. Past performance may not be repeated and is not indicative of future results. This document is prepared for informational purposes only and is subject to change without notice.

Mandate	1YR	3YR	5YR	10YR	Since Inception
Global Balanced	21.78%	7.07%	7.89%	7.64%
Global Dividend	29.96%	12.55%	13.14%	10.80%
Global Growth	25.47%	8.74%	10.46%		11.89% (Oct 2015)

Our Approach

Hines Portfolios