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Sustainable Large Cap Equity

ESG 50 (USA) February 2012

Investment Strategy

Strategy Overview Vehicle type: Separately managed account Asset class: US Equity Management Style: Rules-based, quantitative Sector neutral Benchmark: S&P500 Minimum Market Cap: USD 5bn Exchanges: US-listed only Holdings: 50 Rebalancing: Quarterly

The ESG 50 (USA) portfolio is designed to be a CORE global equity allocation, with risk characteristics similar to the Benchmark Index (S&P500).

Securities are screened versus more than 100 environmental, social, governance and financial criteria, with the top scoring companies considered for possible investment.

The strategy invests in the top 50 companies that: • Meet the strict ESG and financial criteria • Contribute to maintaining industry diversification similar to the Index.

Characteristics and Risk Metrics Beta vs. S&P 500: Volatility:

1.00 23.18%

Price/Earnings Price/Sales Price/Book:

13.25x 1.30 2.19

ESG 50 (USA) vs. S&P500 Index (* Backtested data)

Earnings per Share: $3.92 Dividend Yield: 2.28% Market Capitalization: USD 62.11bn

ESG 50 (USA) strategy Target Sector Weights

Utilities Materials 4% 4% Healthcare 14%

Consumer Cyclical 12% Financial Services 12%

Consumer Defensive 12%

Telecom 2% Industrials 12%

Technology 18% Energy 10%

Top Rated Portfolio Companies (by Sector based on ESG Scores) Cons. Cyclical: Cons. Staples: Energy: Finance: Health Care:

Starbucks Corp Whole Foods Market Hess Corporation State Street Corp Baxter International

Materials: Industrials: Technology: Telecoms: Utilities:

Praxair Inc. 3M Company (US) International Bus. Mach. Verizon Comm. Consolidated Edison

Holdings are subject to change and do not constitute a recommendation or solicitation to buy or sell a particular security. Do not assume an investment in any of the securities was or will be profitable.

Disclosure and Assumptions: The Boardwalk Global ESG Titans strategy results represented here are simulated with the application of a proprietary, rules-based model. Client results may differ depending on the size of account, timing of trading and reinvestment of dividends. There are inherent limitations of showing composite portfolio performance based on model results. Unlike actual client-performance records (which can vary by client), model results cannot accurately reflect the effect of material economic or market factors on the price of the securities, and therefore, results may be over or under-stated due to the impact of these factors. Since model results do not represent actual client-specific trading and may not accurately reflect the impact of material economic and market factors, it is unknown what effect these factors might have had on Boardwalk’s decision making if Boardwalk were actually reporting client portfolios. During the period for which model results are shown, returns are partly a function of the prevailing market environment. If the environment were to change materially, the model results portrayed here would, in all likelihood, reflect results different from those portrayed. The ESG Titans Portfolio and Benchmark results include reinvested dividends or interest, and results are gross of advisory fees and brokerage costs. There is potential for loss as well as for profits. It should not be assumed that the recommendations made in the future will be profitable or will equal the performance of the securities in the portfolio. The index shown is a general market indicator and not available for direct investment. Tax consequences have not been considered. Investments managed by Boardwalk Capital Management as investment adviser are available via separately managed accounts.

This is not an offer of securities. Past performance is not indicative of future results.

1275 East Rock Springs Road, Suite 200 • Atlanta, Georgia 30306 (404) 343-2026 • •

USA50 Sustainable Equity Strategy  
USA50 Sustainable Equity Strategy  

Sector Neutral sustainable equity strategy