Personal Values Investing (PVI) Aligning Clients’ Values & Finances Joni Clark, Chief Investment Officer Sheldon McFarland, VP Portfolio Strategy & Research For Advisor Use Only The material in this communication is provided solely as background information for registered investment advisors and is not intended for public use. Unauthorized copying, reproducing, duplicating, or transmitting of this material prohibited. LWI Financial Inc. (“Loring Ward”) is an investment adviser registered with the Securities and Exchange Commission. Securities transactions may be offered through Loring Ward Securities Inc., an affiliate, member FINRA/SIPC. B 13-019 (Exp 2/15)

Personal Values Investing (PVI) Growing trend of PVI options Today’s Topics… Personal Values Investing (PVI) Growing trend of PVI options Three hurdles to PVI Loring Ward Offerings & Resources For Advisor Use Only

What is Personal Values Investing? An investment strategy that maximizes the potential for both financial returns and social or environmental good For Advisor Use Only

Personal Values Investing The PVI Umbrella Personal Values Investing Investment strategies that incorporate: Socially responsible investing Sustainability or environmentally- responsible investing Socially Responsible Investing Loring Ward SRI Models Sustainability Investing Loring Ward Sustainability Models For Advisor Use Only

Production and/or sale of military weapons Social Screens Socially-responsible investments use social screens to exclude companies with business revenues related to: Production and/or sale of military weapons Business activities in or with the Republic of the Sudan Production and/or sale of tobacco or alcohol products Gambling activities Pharmaceuticals, abortive agents, or contraceptives Publishing or selling pornographic materials For-profit health care providers Child labor infractions in the U.S. or abroad For Advisor Use Only

Sustainability Screens Sustainability investments generally overweight companies with high ratings for sustainable practices and reduces or eliminates exposure to companies with low ratings based on: Reducing resource consumption: efficient in their use of natural resources Reducing emissions of toxics and pollutants Implementing proactive environmental management systems and initiatives Helping customers achieve sustainability For Advisor Use Only

A Growing Trend in the United States Personal Values Mutual Funds 2001-2010 Source: US SIF Foundation For Advisor Use Only

Active-management risk Concentration risk Three Hurdles to PVI Active-management risk Concentration risk High management fees and turnover For Advisor Use Only

Overcoming The Hurdles with Asset Class Investing  FUNDS EXPENSES TURNOVER HOLDINGS U.S. PVI Funds (Excluding DFA) Average 1.20 61.48 133 Intl PVI Funds (Excluding DFA) Average 1.40 55.32 188 DFA US Social Core Equity 2 0.35 13.00 2,387 DFA International Social Core Equity 0.58  NA  2,098 DFA Emerging Markets Social Core Equity 0.70 44.00 2,744 DFA US Sustainability Core 1 0.37 9.00 2,278 DFA International Sustainability Core 1 0.57 11.00 2,359 Source: Morningstar Direct For Advisor Use Only

Loring Ward Socially Responsible Investing Models SRI Portfolio Models Cap Appreciation Equity Moderate Balanced Conservative Defensive For illustrative purposes only. Downside risk is the likelihood that an investment will decline in value, or the amount of loss that could result from that potential decline. These portfolio models reflect asset class components, not actual securities. For Advisor Use Only

Recent Changes to SRI Portfolios Removed One-Year Fixed Income Fund (DFIHX) No screening for commercial paper Bonds not covered in USCCB guidelines1 Added DFA International Social Core Equity (DSCLX) Increased international diversification from average of 6% of equity allocation to 40% Increased number of securities held by 2000 United States Conference of Catholic Bishops Socially Responsible Investment Guidelines: http://www.usccb.org/about/financial-reporting/socially-responsible-investment-guidelines.cfm 1Source: United States Conference of Catholic Bishops Socially Responsible Investment Guidelines: http://www.usccb.org/about/financial-reporting/socially-responsible-investment-guidelines.cfm For Advisor Use Only

Loring Ward Sustainability Models Sustainability Portfolio Models Cap Appreciation Equity Moderate Balanced Conservative Defensive For illustrative purposes only. Downside risk is the likelihood that an investment will decline in value, or the amount of loss that could result from that potential decline. These portfolio models reflect asset class components, not actual securities. For Advisor Use Only

Loring Ward PVI Resources For Advisor Use Only

Personal Values Investing