Asset Management

Premier Fixed Income Investment Management

+

=Customized Bond Portfolios

For Impact Investors

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SNW Overview

SNW Asset Management (“SNW”): Seattle -based firm, founded in 2002

Asset Under Management: $1.42 Billion as of June 30th, 2012

50% Taxable 50% Tax Exempt

Office locations: Seattle, Portland, San Francisco, Boise, Salt Lake City, and New York City

Employees: 15 professionals• Portfolio management team (7) - Combined PM experience of over 60 years • Management, new business development/client service (4)• Operations (4)

Parent Company: Wholly owned subsidiary of Seattle –Northwest Securities• Regional broker-dealer founded in 1970 Leader in underwriting/financial advisory

services• Employee owned• No dealing by SNW from parent’s inventory except with written consent from client

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What is HIP Investing?

All investing – including muni bonds, corporate bonds and agency bonds – can create human impact and potential profit potential. Since enterprises can choose to create value for society as well as shareholders, those firms can be more financially stable and successful, and form the foundation of a stronger portfolio. HIP Investor quantifies the human, social, and environmental impact of each investment. HIP's scoring and ratings enable SNW to construct portfolios that seek both profit and impact for you.

With HIP impact scores, portfolio can seek more impact and profit. HIP’s in-depth analysis can score each asset class, fund or security by its quantifiable human impact and profit potential, as seen here:1. Score Your

Current Portfolio

2. Select “more HIP” Investments

3. Reallocate to increase portfolio’s HIP Score

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What is HIP Investing?

All investing – including muni bonds, corporate bonds and agency bonds – can create human impact and potential profit potential.

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HIP Criteria

HIP’s 5 Dimensions of Measurable Impact Can Lead to Sustainable, Profitable Growth

• Physical Health• Mental AgilityHealth• Income Growth• Asset AccumulationWealth• Carbon Neutrality• Reusable ProductsEarth• Gender Balance• Ethnic Diversity

Equality

• Transparent & Open

• Credible & EthicalTrust

HIP companies innovate to answer five human needs:

Innovative Products + Services

Inspired People + Teamwork

Increased Profits + Returns

Improved Planet + Society

Which can result in sustainable, profitable growth for all stakeholders:

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HIP Process

The HIP Methodology ProcessScores, Rates and Ranks Investments

• Analytics based on 30 quantifiable metrics• Recognizes new opportunities and risks • HIP fundamentals drive weighting of portfolio

Quant-ifiable Impact

HIP Dimensio

ns

1Products

& Services

2 Operating

Metrics

3Mgmt

Decisions

4Score

5Index

Weighting

HIP

SCORE

Quant-ifiable Impact

5Index

Weighting

HIP

SCORE

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Customized Bond Portfolios for Impact Investors

SNW applies our investment philosophy, research, portfolio construction process and risk management to manage five overall strategies: Blend, Tax-Exempt, Taxable, Credit, Cash Management

SNW builds impact portfolios by applying a HIP scoring overlay (on a per security basis) which allows us to quantify the overall Human Impact. The end result is a portfolio that meets our clients’ unique investment needs and objectives and that is optimized to provide the greatest Human Impact + Profit. FINANCIALS IMPACT CUSTOMIZED

Education: Universities HIP Comparison (sample)

Occidental University

University of California

University Type: Liberal Arts College National University

Human Impact (100% maximum) 100% 79%Health Impact (60%

weight) 60% 46%

• Student-Teacher Ratio (20% weight)

20% (9:1 ratio)

11% (17:1 ratio)

• Freshman Retention Rate

(20% weight)

20% (93% retention)

20% (93% retention)

• 4-year Graduation Rate (20% weight)

20% (80% graduation)

15% (60% graduation)

Wealth/Equality (40% wgt.) 40% 33%

• Average Percent of Need Met

through Financial Aid (40% wgt.)

40% (100% needs met)

33% (83% needs met)

Education: Public UniversitiesHIP Comparison (sample)

University of California

University of Texas

University Type: National University National University

Human Impact (100% maximum) 79% 58%Health Impact (60%

weight) 46% 32%

• Student-Teacher Ratio (20% weight)

11% (17:1 ratio)

10% (18:1 ratio)

• Freshman Retention Rate

(20% weight)

20% (93% retention)

16% (74% retention)

• 4-year Graduation Rate (20% weight)

15% (60% graduation)

6% (25% graduation)

Wealth/Equality (40% wgt.) 33% 26%

• Average Percent of Need Met

through Financial Aid (40% wgt.)

33% (83% needs met)

26% (65% needs met)

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Corporate Bond Comparison – Pharma Industry

World’s leading generic drug makerStrong top and bottom line growth trajectory due to smart acquisition historyHIP rating Below Average because :- TEVA’s lack of information and transparency in many areas that drive higher impact, including its supply-chain sustainability, energy usage and wealth-building for employees+ However, TEVA does have strong performance in worker safety, worker retention, and customer satisfaction

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Corporate Bond Comparison – Pharma Industry

World’s leading generic drug makerStrong top and bottom line growth trajectory due to smart acquisition historyHIP rating Below Average because :- TEVA’s lack of information and transparency in many areas that drive higher impact, including its supply-chain sustainability, energy usage and wealth-building for employees+ However, TEVA does have strong performance in worker safety, worker retention, and customer satisfaction

Global leader in healthcare products and servicesStrong cash flow and balance sheet HIP rating in Top Quartile because: + JNJ’s Board and executive team enables transparency and publishes commitments to achieving impact as well as financials+ JNJ’s international quality control, employee health and safety, and environmental performance are strong- However, JNJ’s product recalls in several business units drags down the potential impact, and creates financial volatility in lower revenue, higher cost and shifted market value

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