Sustainable Investing StragWhy Investor Interest ConPresented by:Presented by:

Michael Lent, Chief Investment Officer, Veris

April 22, 2013

ategies: gntinues to Grow

Wealth Partners, LLC

Firm Overview Veris Wealth Partners, LLC is a sustainadedicated to aligning families’ and foundaand missions. Veris believes that superiorpositive impact are complementary parts • Founded in July of 2007Founded in July of 2007• Best for the World Certified B Corp 2• Independent, employee-owned, SEC• Offices in NYC, San Francisco, and P• Veris’ Partners have been providing

We believe that Sustainable Investing is aperformance-driven investing that aligns ymost important innovation to investing in op g

able wealth management firm ations’ financial goals with their values r investment performance and of a holistic investment strategy.

2013C-registered RIA Portsmouth, NHImpact Investing to clients since 1992

a smarter way to invest, and that your wealth with your worldview is the our lifetime.

“We see sustainability, both soy,powerful path to innovation, anstrategies.” g

ocial and environmental, as a ,nd crucial to our growth - Mark Parker, CEO, Nike , ,

ABCs of Sustainable Inve

• Ethical Investing• Socially Responsible Investing (“SRI”

E i t l S i l d G• Environmental, Social, and Governan• Sustainable Investing• Impact InvestingImpact Investing• Mission Related Investing (“MRI”) : Fo

estingg

) C it i (“ESG”)ce Criteria (“ESG”)

oundation

Sustainability: What Does

Sustainability focuses on meeting the needs osocial economic and environmental needs of

y

social, economic, and environmental needs of

Sustainabilitissues must

• Corporat• Climate C

Global Tr• Global Tr• Natural R• Health & • Human C• Pandemi• Poverty/Dy• Water & • Human C• Demogra• Demogra

s It Mean?

of the present without compromising the f the futuref the future.

ty Issues: When investing in companies, these be a factor in fundamental equity analysis:q y y

te Governance Changeransition: Abundance to Scarcityransition: Abundance to ScarcityResource Preservation

WellbeingCapital, Empowerment & Creativitycs: HIV/AIDS

Development NeedspEnergy

Capital aphy/Urbanizationaphy/Urbanization

Developments in Sustainap

• Family Alignment – Values / Financi

• Expanded Investment Options Acros

• Quality Managers & Funds Entering

• Performance & Risk Mitigation

• Financial Advisors & Investment Con

able Investingg

al Objectives

ss Asset Classes

Field

nsultants With Expertise p

US SIF Trends Report 20p

$3.74 Trillion: U.S. Sustainable & Respon

12

nsible Assets in 2012

• 1 in 9 dollars is invested• 1 in 9 dollars is invested using a sustainable investing approachO f th f t t• One of the fastest growing segments of investing

US SIF Trends Report 20p“In cumulative terms the SRI Universe ha

while the broader universe of assets undewhile the broader universe of assets unde

States, according to estimates from Thom

from $7 Trillion in 1995 to $33 3 Trillion infrom $7 Trillion in 1995 to $33.3 Trillion in

12as increased 486% from 1995 to 2012,

er professional management in the Uniteder professional management in the United

mson Reuters Nelson, has grown 376%

n 2012 ”n 2012.

- US SIF 2012 Trends Report

THE OPPORTUNITY IN AALTERNATIVES

Sustainable Investing Acrg ross All Asset Classes

Strong Investment Perforg

250

KLD 400 Cumulative Rtn

200

S&P 500 Cumulative Rtn

150

50

100

0

50

mance

Risk and Return (6/1992-

MSCI KLD 400

S&P 500

3/2013) 400

20-year Annualized Return

8.70 8.53

Standard Deviation 17.29 16.92

Alpha 0.09 --p a 0 09

R-Squared 98.05 100

Information Ratio 0.7 --

Tracking Error 2.43 --

Source: Zephyr Analysis, MSCI and Standard & Poor’s.and Standard & Poor s.

Academic Research on P

Over 300 studies conducted on performaincorporate “Environmental, Social and Gp ,portfolio construction• Vast majority show no negative impa

resultsresults• Some studies show companies with

(CSR) or ESG scores have a lower k t b d d ti b dmarket-based and accounting-based

Research Reviews:• Fulton Mark et al “Sustainable Inv• Fulton, Mark, et al., Sustainable Inv

and Performance,” Deutsche Bank C• Gladman, Kimberly, “Ten Things to

P f ” G M t iPerformance,” Governance Metrics • Statman, Meir, “Socially Responsibl

Consulting, Vol. 8, No. 2, pp. 17-37,

Performance

ance of indices and funds that Governance” (ESG) factors in equity ( ) q y

act on performance: neutral or mixed

high “Corporate Social Responsibility” cost of capital and are correlated with

d t fd outperformance.

vesting: Establishing Long Term Valuevesting: Establishing Long Term Value Climate Change Advisors, June 2012.Know about Responsible Investment & I t ti l I M h 2011International, Inc., March 2011.e Investments,” Journal of Investment Summer 2007.

Academic Research on P

Outperformance found in firms with b• El Ghoul Sadok et al “Does corpo• El Ghoul, Sadok, et al., Does corpo

of capital?“ Journal of Banking & Fin2406, September 2011. (2011 winne“ fi d h fi i h b CSR“…we find that firms with better CSRIn particular, our findings suggest tresponsible employee relations, et t i t ib t b t ti lstrategies contributes substantial

Performance

etter CSR scoresorate social responsibility affect the costorate social responsibility affect the cost nance, Volume 35, Issue 9, p. 2388-er of the Moskowitz Prize)

R hibi h i fi iR scores exhibit cheaper equity financing. that investment in improving nvironmental policies, and product l t d i fi ’ t f it ”ly to reducing firms’ cost of equity.”

Academic Research on P

Outperformance found in high sustain• Eccles Robert et al “The Impact o• Eccles, Robert, et al., The Impact o

Corporate Behavior and PerformancNovember 2011.

“U i h d l f 180“Using a matched sample of 180 comvoluntarily adopted environmental andtermed as High Sustainability companh t i ti f t h d lcharacteristics from a matched sampl

these policies – termed as Low Sustaevidence that firms in the High Sussignificantly outperform their counsignificantly outperform their coungroup.”

Performance

nability companiesof Corporate Culture of Sustainability onof Corporate Culture of Sustainability on ce,” HBS Working Paper Series 12-035,

i fi d h i hmpanies, we find that corporations that d social policies many years ago –nies – exhibit fundamentally different l f fi th t d t d l t fle of firms that adopted almost none of

ainability companies…Overall, we find stainability group are able to nterparts in the Low Sustainabilitynterparts in the Low Sustainability

Veris Portfolio Constructio

Financial G l &

Develop F+Impact IGoals &

ObjectivesImpact I

Policy Sta

C T I

Define Target A

Conduct Scan of Investments

Create Target Im

Select Finalists, Complete

Conduct Scan of Investments

Monitor and Evaluate FinancOngo

on Process

Articulate Mi i /

Financial nvesting Mission /

Values nvesting atement

Th

Asset Allocation

s Addressing Impact Themes

mpact Themes

Due Diligence & Analysis

s Addressing Impact Themes

cial and Impact Performance oing

Resources

US SIF The For m for S stainable a• US SIF: The Forum for Sustainable ahttp://ussif.org/

• FSInsight http://fsinsight.org/• Bloomberg Sustainability http://www.• Global Impact Investing Network (GII• Global Impact Investing Rating Syste• ImpactBase: a project of GIIN http://w• ImpactAssets 50 http://www impactas• ImpactAssets 50 http://www.impactas• CARS http://www.carsratingsystem.n

and Responsible In estmentand Responsible Investment

bloomberg.com/sustainability/IN) http://thegiin.orgem (GIIRS) http://giirs.orgwww.impactbase.org/ssets org/impactassets 50ssets.org/impactassets-50net

BiographyMichael Lent, Partner & Chief Investment O

Michael is a founding principal and the CIO of Veris

g p y

g p pdelivering financial planning and investment consultfoundations. Michael has been recognized by the Cvalue community investing and is regularly cited by matters pertaining to sustainable investing. Prior to Vp g gProgressive Asset Management, the first national furesponsible investing.

Earlier in his career, while working on economic dev, grealized that, for his work to achieve its full impact, haccess to new financial resources. So he began to fwho also recognized the important link between captheir resources to achieve personal financial goals wtheir resources to achieve personal financial goals wthem.

Michael is the Treasurer and a Trustee of the Edwathe Board of Directors of US SIF, The Forum for Suthe Board of Directors of US SIF, The Forum for Sua member of the Investment Management ConsultaManagement Analyst (CIMA®). Michael graduated fwith a B.A. in Biology. He lives with his wife in Brook

Officer

Wealth Partners,LLC. For 19 years, he’s been , y ,ting services to families, family offices, and alvert Foundation for his advocacy of blended-major media outlets such as AP and Reuters on Veris, he co-founded the New York office of ,

ull-service broker/dealer to focus on socially

velopment issues in Central America, Michael p ,he and his colleagues would need sustained focus his efforts on outreach, educating others pital and social change. He now helps others use while having a positive impact on the world aroundwhile having a positive impact on the world around

rd W. Hazen Foundation, and serves as Chair of stainable and Responsible Investment. He is alsostainable and Responsible Investment. He is also

ants Association (IMCA) and a Certified Investment from the University of California at Santa Cruz klyn, NY.

Important Consumer DiscThis presentation contains general information that guarantee of future results. There is no guarantee tpresentation will come to pass Investing in the stoc

p

presentation will come to pass. Investing in the stocsuitable for all investors. Information presented herbe considered as a solicitation to buy or sell any sec

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Thank You

For more information:Michael Lentwww.veriswp.commlent@veriswp.com(212) 349-4172