1. OXCEL ENDOWMENT INVESTMENT Saamiah Ali | Alistair Barton | Lucia Mkhitarova

2. The Aim We aim to help the trustees of the Oxcel College endowment pursue their investment goals: through considering the trustees’ concerns with socially responsible investing and through research and analysis into the fund options

3. The Methodology 1) Address the Board’s concerns: i) Social responsibility ii) Fund experience 2) Create criteria rubric integrating concerns and sustainable and economic aspects 4) Overview of the three funds 5) Award points using rubric 6) Recommend a plan of action

4. Concern 1: Social Responsibility The board is concerned about the possible multiple approaches. 1.Investments that have a positive return to society 2.3 categories defined by board: SRI, green and sustainable funds 3.Our perspective: a.Holistic and multidimensional b.Value each category and perspective

5. The board requires a fund manager with an excellent reputation for risk adjusted performance: 1.Therefore, we need to consider i) the fund’s experience ii) associated risks 2. This is done by assessing the performance of the fund Concern 2: Fund Experience

6. Criteria EconomicEnvironmentalSocial ● Corporate Governance ● Fund experience ● Fund performance ● Focus on alternative energies and technology ● Environmental policies ● Absence of Sin stock

7. Fund One: Abbe SRI Fund Overview: ● Focus on: ○ socially ethical companies ○ smaller companies (mid, small, micro-cap) ● Avoid firms with major sin stock investment Investment Analysis: ● Poor financial reputation ● Restricted Diversity ○ Focused on Negative Screening

8. Fund Two: Winslow Green Growth Fund Overview: focus on: o long term capital growth o small domestic (US) companies environmentally orientated investments renewable energy and efficiency technology moving away from its risky reputation Top 10 Holdings Stericycle, Inc. (SRCL) Middleby Corporation (MIDD) Acuity Brands Inc (AYI) Westinghouse Air Brake Tech Corp (WAB) Trimble Navigation Ltd. (TRMB) Verisk Analytics, Inc. (VRSK) LKQ Corporation (LKQ) Clean Harbors, Inc. (CLH) Pentair, Inc. (PNR) Hexcel Corporation (HXL)

9. Fund Two: Winslow Green Growth Fund 1) Stericycle, Inc. Stericycle, Inc. ● Manage regulated waste and complementary services ● Initiatives to reduce energy and waste via clean, low impact ways 2) Middleby Corporation Middleby Corporation ● Cooking equipment ● Good business reputation, winning awards for a good growing business 3) Acuity Brands Inc Acuity Brands Inc ● lighting (and solutions) company ● sustainable focus: reduce waste and pollution, and increase efficnecy ● technological development ● zero landfill certification and LEED

10. Overview: seek growth of capital seek to invest in firms with focus on sustainable practices most investment in large companies Top 10 Holdings: Apple Inc Google Inc Cl A Microsoft Corp Johnson + Johnson Wells Fargo + Co Procter + Gamble Co/The Jpmorgan Chase + Co Pfizer Inc Intl Business Machines Corp Bank Of America Corp Fund Three: Calvert Social Investment Equity Fund

11. 2) Google Inc ● sustainable investments ● however, still use huge amounts of energy Source: google.com 3) Apple Inc. Source: apple.com ● Houses bulk of operations in China; Foxxcon ● 54.5% reliance on coal data centres (April 2011) 1) Cvs Caremark Corp ● largest pharmacy in the United States ● created a Environmental Leadership Council in 2007 ● partners with nonprofits and other sustainable initiatives Fund Three: Calvert Social Investment Equity Fund

12. CriteriaAbbeWinslowCalvert Corporate Governance 587 Focus on alternative energies and tech 3 10 6 Environmental policies N/A = 0 8 5 Absence of Sin Stocks1032 Fund experience 3 5 10 Fund performance 5 6 8 TOTAL POINTS 26 4038 Awarding Points

13. Concern 3: Diversification The third concern of the trustees’ is decreasing the diversification of the endowment: Thus the trustees must consider investing in different funds Diversification is key to maintaining low risk and guarding against poor market performance We recommend diversifying their portfolio based on the short term (within next 5 years) and long term (after 5 years)

14. Recommendations for Short Term Short Term - next 5 years: Market Performance is key in short term: allows further investment in social responsibility after growth of capital 60% in Colvert Fund, due to their high scores in experience and performance 40% in Winslow Fund, due to their high score overall, and their overall good sustainability focus We decided not to invest in Abbe SRI for the short term, due to their overall low score and their lack of reliability

15. Long Term - after 5 years Reassess growth and policies in 5 years Monitor funds Expect to start investing more in Winslow for their high sustainability and projected long term growth in green energy technology/popularity, and less in Calvert Use profit gathered from Calvert to invest in Winslow Recommendations for Long Term

16. Thank you for Listening Any questions?

17. References Abbe SRI Fund: Yahoo! Finance Winslow Green Growth Fund: Yahoo! Finance https://www.google.com/finance?q=MUTF:WGGFX http://www.stericycle.com/sustainability-commitment http://www.acuitybrands.com/investor-info/corporate-information/~/media/696148dc47b348e69f427ff2a03de529.ashx http://www.altenergystocks.com/comm/content/winslow-green-growth-fund/ http://www.altenergystocks.com/archives/2009/10/green_energy_mutual_funds_compared.html http://www.socialfunds.com/funds/profile.cgi?sfFundId=1030 Calvert Social Investment Equity Fund: Yahoo! Finance https://www.calvert.com/fundHoldings.html?t=2&fund=933 http://info.cvscaremark.com/about-us http://google.com http://apple.com http://www.theguardian.com/environment/2011/apr/21/apple-least-green-tech-company http://www.bloomberg.com/news/2012-06-13/is-apple-the-model-of-a-sustainable-company-.html Image http://www.upenn.edu/pennnews/current/sites/www.upenn.edu.pennnews.current/files/imagecache/article-350/images/GreenFund.jpg