Evergreen State College, The
PA-9: Sustainable Investment

Dimensional US Social Core Equity 2  Objective: The Fund seeks long-term capital appreciation.  Strategy: The Fund purchases a broad and diverse group of securities of U.S. companies with greater emphasis on small capitalization and value companies as compared to their representation in the U.S. Universe, while excluding companies based on the Fund’s social issue screens. The Fund seeks to purchase securities that are consistent with its social issue screens, which are monitored by an independent third party. The Fund seeks to exclude from its investment portfolio those companies that are identified by the Fund’s social issue screens, as further discussed below. The Fund’s social issue screens are designed to identify companies that: (1) earn at least 20% of their total business revenue through the production and/or sale of military weapons and/or weapons of mass destruction; (2) are engaged in certain for profit business activities in or with the Republic of the Sudan; (3) earn at least 15% of their total business revenue through the production and/or sale of tobacco or alcohol products; (4) earn at least 20% of their total business revenue from certain gambling activities, the production of goods used exclusively for gambling or the provision of certain services in casinos that are fundamental to gambling operations; (5) directly participate in abortions; (6) manufacture pharmaceuticals, abortive agents or contraceptives; (7) earn at least 15% of their total business revenue from the rental, sale, distribution or production of pornographic materials or the ownership or operation of adult entertainment establishments; (8) are for-profit health care providers; (9) have had major recent controversies relating to child labor infractions in the U.S. or abroad; and/or (10) are involved in stem cell research. Neuberger Berman Sustainable EQ Investor  Objective: The Fund seeks long-term growth of capital by investing primarily in securities of companies that meet the Fund’s financial criteria and social policy.  Strategy: The Fund invests primarily in common stocks of mid-to large-capitalization companies that meet the Fund’s social policy. The Portfolio Managers employ a research driven and valuation sensitive approach to stock selection, with a long term perspective. They look for solid balance sheets, strong management teams with a track record of success, good cash flow and the prospect for above-average earnings growth. They seek to purchase the stock of businesses that they believe to be well positioned and undervalued by the market. Among companies that meet the criteria, the Portfolio Managers look for those that show leadership in environmental concerns, and progressive workplace practices including diversity and community relations. In addition, the Portfolio Managers typically look at a company’s record in public health and the nature of its products. The Portfolio Managers judge firms on their corporate citizenship overall, considering their accomplishments as well as their goals. While these judgments are inevitably subjective, the Fund endeavors to avoid companies that derive revenue from gambling or the production of alcohol, tobacco, weapons, or nuclear power. The Fund also does not invest in any company that derives its total revenue primarily from non-consumer sales to the military. Dimensional International Social Core Equity  Objective: The Fund seeks long-term capital appreciation.  Strategy: The Fund purchases a broad and diverse group of securities of non-U.S. companies in developed markets with a greater emphasis on small capitalization and value companies as compared to their representation in the International Universe. The Fund seeks to purchase securities that are consistent with the Fund’s social issue screens, which are monitored by an independent third party. The Fund seeks to exclude from its investment portfolio those companies that are identified by the Fund’s social issue screens, as further discussed below. The Fund’s social issue screens are designed to identify companies that: (1) earn at least 20% of their total business revenue through the production and/or sale of military weapons; (2) are engaged in certain for profit business activities in or with the Republic of the Sudan; (3) earn at least 15% of their total business revenue through the production and/or sale of tobacco products; (4) earn at least 20% of their total business revenue from certain gambling or related activities; (5) directly participate in abortions, or develop or manufacture abortive agents or contraceptives; (6) earn at least 15% of thei r total business revenue from the rental, sale, distribution or production of pornographic materials or the ownership or operation of adult entertainment establishments; (7) earn at least 15% of their annual revenue through the production and/or sale of alcohol beverages or products related to their produc tion (8) are involved in the production of landmines, cluster munitions, or the essential components of these products; and/or (9) are involved in stem cell research. Dimensional Emerging Social Core Equity  Objective: The Fund seeks long-term capital appreciation.  Strategy: The Fund purchases a broad and diverse group of securities of non-U.S. companies in developed markets with a greater emphasis on small capitalization and value companies as compared to their representation in the International Universe. The Fund seeks to purc hase securities that are consistent with the Fund’s social issue screens, which are monitored by an independent third party. The Fund seeks to exclude from its investment portfolio those companies that are identified by the Fund’s social issue screens, as further discussed below. The Fund’s social issue screens are designed to identify companies that: (1) earn at least 20% of their total business revenue through the production and/or sale of military weapons; (2) are engaged in certain for profit business activities in or with the Republic of the Sudan; (3) earn at least 15% of their total business revenue through the production and/or sale of tobacco products; (4) earn at least 20% of their total business revenue from certain gambling or related activities; (5) directly participate in abortions, or develop or manufacture abortive agents or contraceptives; (6) earn at least 15% of their total business revenue from the rental, sale, distribution or production of pornographic materials or the ownership or operation of adult entertainment establishments; (7) earn at least 15% of their annual revenue through the production and/or sale of alcohol beverages or products related to their production (8) are involved in the production of landmines, cluster munitions, or the essential components of these products; and/or (9) are involved in stem cell research. TIAA-CREF Social Choice Bond  Objective: The fund seeks a favorable long-term total return through income and capital appreciation as is consistent with preserving capital while giving special consideration to certain social criteria.  Strategy: The Fund primarily invests in a broad range of investment-grade bonds and fixed-income securities, including, but not limited to, U.S. Government securities, corporate bonds, taxable municipal securities and mortgage-backed or other asset backed-securities. The Fund may also invest in other fixed-income securities, including those of non-investment grade quality. The Fund’s investments in fixed-income securities issued by corporate entities or certain foreign governments are subject to certain ESG criteria in conjunction with research vendor MSCI. The evaluation process favors companies with leadership in ESG performance relative to their peers. Typically, environmental assessment categories include climate change, natural resource use, waste management and environmental opportunities. Social evaluation categories include human capital, product safety and social opportunities. Governance assessment categories include corporate governance, business ethics and government & public policy. How well companies adhere to international norms and principles and involvement in major ESG controversies (within environment, customers, human rights & community, labor rights & supply chain, and governance) are other considerations. The social and environmental impact of corporate activities related to the production and sale of alcohol, tobacco, military weapons, firearms, nuclear power and gambling products and services are quantified and incorporated into a corporate issuer’s overall ESG performance assessment. While not automatically excluded from the Fund, most corporate issuers involved in these industries are ineligible for inclusion in the Fund due to their poor overall ESG performance. Baird Intermediate Bond  Objective: The Fund seeks a total return, before expenses, greater than the Barclays Intermediate U.S. Government/Credit Bond Index.  Strategy: The Fund normally invests at least 80% of assets in the following types of U.S. dollar-denominated debt securities: U.S. government, U.S. government agencies, asset-backed and mortgage-backed obligations of U.S. issuers and corporate debt of U.S. and foreign issuers. The Fund only invests in debt securities rated investment grade at the time of purchase by at least one major rating agency or, if unrated, determined by Baird Advisors to be investment grade. Baird Advisors attempts to keep the duration of the portfolio substantially equal to the index. As a general practice, Baird will review the US conference of Catholic Bishops (USCCB) recommendations as they consider socially responsible investing, including certain sectors and sub-sectors such as Health Care Equipment & Services or Pharmaceuticals, Defense, Gaming, Tobacco and Alcohol. Companies in these sectors are not inherently precluded from being used in the Fund, but rather, individual issuers are analyzed to determine if a significant percentage of their revenues are derived from and/or their business practices may be considered sensitive to socially conscious investors.

Investment data is taken from The Evergreen State College Investment Performance Review For the Quarter Ended September 30, 2018.