Oxcel, Part of the Solution Colin Cheng Thomas Saleh Marko Tvrtkovic Beatrice Yeung

Agenda IntroductionProblem StatementSituational AnalysisCriteria DefinitionAlternativesRecommendationConclusionQuestions and Answers

Problem Statement Should Oxcel devote their funds to socially responsible investing, if so, which investment option should the endowment support, given the financial limitations?

Situational Analysis Full consideration of all three pillars – Environmental, political, socio- economic Ecology as a framework for social existence Political POLITICAL VALUES TO BE INTERGRATED WITH RESPONSIBLE INVESTING

Criteria Definition Intergenerational Equity –Future generations should have the same access to resources and ecological services that current generations enjoy Modes of Development –Based on shared prosperity and environmental protection Giving voice to the voiceless – the unborn

Alternatives - Funds 1.Abbe SRI Not 100% aligned with socially responsible investing 2.Winslow Green Growth Theme based approach to investing Focus on domestic, small-cap companies –High risk, high reward –More adaptable –More direct impact Green Mountain Coffee

Alternatives - Funds 3.Calvert Social Investment Equity Fund Triple bottom line approach Focus on domestic, large-capitalization companies More diversified investment portfolio –Lower risk –Multi-facetted investment process Holdings: –Pharmaceuticals and smaller companies such as Ecolab or the Vermont Sustainable Jobs Fund

Alternatives – Decision Matrix

Recommendation: Why Calvert? The structure of the Portfolio – Diversity – Aligns with Goal of the Endowment – Best Encapsulates our definition of Sustainable Investing Performance relative to Other Funds – Best Previous Performance Performance: Lower Volatility (Variance 1.5 compared to 7.3) Performance relative to Benchmark – Outperforms S&P 500

Fund Performances

Calvert versus S&P 500

Fund Manager & Future Outlook Fund Manager – Experience: Richard England (MBA 20+ years of experience) William Hackney III (Employee since 1995, MBA) – Total Exp. Ratio = 0.67% – Advisor Fee = 0.60% – Turnover Ratio = 51% Future Outlook –Calvert’s Approach: Best Captures the multi-faceted approach to sustainability –Market Uncertainty

Further Reasoning Transparent and Accountable –Corporate environmental, social and governance disclosure (on both policy level initiatives and company engagement) Multi-dimensional –Incorporates political, socio-economic, and environmental pillars Inclusive –Governance and Ethics, Workplace, Environment, Product Safety and Impact, International Operations and Human Rights, Indigenous Peoples’ Rights, and Community Relations

Further Reasoning Mobilize resources; Connect with stakeholders –Engage companies to improve behavior Innovative –Identify new untapped opportunities with potential Transitions corporate culture to one that finances the future “Be Part of The Solution”

Recommendation & Innovation Invest in Socially Responsible Entrepreneurship Inline with Values –Investing in Local Human Capital –Gives Younger Students a Voice –Financing Future Generations Minimize “Principle-Al agent” –Students have vested interests and are motivated

Conclusion Sustainability can be profitable Aligning with your values Common Opinions Redefine Responsible Investing Invest in Green Funds Invest in Ideas of the Future

Questions and Answers