University of Puget Sound
PAE-T2-6: Socially Responsible Retirement Plan

The following is a description for the CREF Social Choice Account: This variable annuity account seeks a favorable long-term rate of return that reflects the investment performance of the financial markets while giving special consideration to certain social criteria. The account typically invests in a broadly diversified portfolio of domestic stocks (47%), foreign stocks (13%), and fixed-income securities (40%). In the case of equities and corporate bonds, the account invests only in companies that meet its screening criteria. Using specific environmental, social and governance criteria, the evaluation process seeks out companies that are: strong stewards of the environment; devoted to serving local communities and society in general; committed to high labor standards; dedicated to producing high-quality, safe products; and those managed in an ethical manner. The following is the description for the Vanguard FTSE Social Index Fund: The fund employs a “passive management”—or indexing—investment approach designed to track the performance of the FTSE4Good US Select Index. The Index is composed primarily of large- and mid-cap stocks that have been screened for certain social and environmental criteria by the Index sponsor, which is independent of Vanguard. The fund attempts to replicate the Index by investing all, or substantially all, of its assets in the stocks that make up the Index.