Investor Presentaiton

Appendix Data Commentary The Jewish Values strategy typically seeks to achieve a weighted-average Social Score that is consistently higher than that of the index chosen by Aperio as the most appropriate measurement index for portfolio performance. Consultation with the client reviews the following: • The target weighted-average score does not set a minimum or cutoff score. There are many reasons a company might score better than originally thought: . • If a company has high levels of voluntary disclosure, it may lead to a higher Social Score. If a custom scoring profile doesn't include specific issues where the company performs poorly, or if the available data doesn't reflect a recent controversy, its Social Score may not be impacted by such factors. If a company performs better than other companies in its sector, it will have a higher Social Score than its sector peers (see "Versus Sector"). Scoring "Versus Sector" Purpose A Social Score provides a means of translating an investor's values profile into a single quantitative measure that we can use in our portfolio construction process to tilt toward companies with higher scores while controlling for risk. Directional Not Absolute A Social Score should be considered a directional reflection of a company's relative performance on one or more issues. Scores vs. Exclusions A Social Score is relative and does not explicitly exclude a company from a portfolio regardless of its score. The worst- scoring company may end up in the portfolio if its presence helps control for risk. If an investor does not want to hold a particular company or type of company, that preference should be listed explicitly as an exclusion. aperio Aperio will compare a company's Social Score to those of its sector peers. • For example, energy companies will be compared to other energy companies, financial companies to other financial companies, etc. In Aperio's portfolio construction process, the "versus sector" comparison allows for better delineation of risk management practices, as a range of scores is available for each sector. All of these sector-relative scores are combined and averaged in portfolio construction. For Professional Investor Use Only 12 For Professional Investor Use Only

View entire presentation