Sinco, established in 2006, specializes in designing sustainable investment architecture focused on ESG factors for institutional investors. The document outlines various elements of sustainable investments, including market analysis, performance drivers, and methodologies, while emphasizing the importance of governance and integration of ESG in investment decisions. It also highlights the expertise of its team, including Graham Sinclair, and outlines testimonials regarding their impact in the field of sustainable investments.

1. Sustainable Investment Consulting
Designing and developing world-class ESG architecture for institutional investment since 2006
graham.sinclair@sinclairconsult.com
twitter.com/esgarchitect
REGULATORY INFORMATION
No part of this proposal suggests or should understood to suggest endorsement or advice on any investment approach, strategy or offering. The
rights and obligations of the investor are set out in the relevant policy contract. Market fluctuations and changes in rates of exchange or taxation
may have an effect on the value, price or income of investments. Since the performance of financial markets fluctuates, an investor may not get
back the full amount invested. Past performance is not necessarily a guide to future investment performance.
Designing and developing world-class ESG architecture for institutional investment since 2006 | sincosinco.com ©2011
1

2. MSCI Emerging Markets Index
DRAFT
MSCI Emerging Markets Index - Country Market Capitalizations
[$ million at 31 December 2010; Total market capitlization: $3,918,577.24; Source: MSCI, May 2011]
Brazil
Chile
China
8% Colombia
16% Czech Republic
2% Egypt
11%
Hungary
2% Indonesia
2% India
Korea
Morocco
6% 17% Mexico
Malaysia
2%
Peru
1%
Philippines
1% 5% Poland
1%
3% Russia
8% 0% Thailand
0% 14%
Turkey
2% 0% 0%
Source: SinCo analysis, MSCI May 2011.
Taiwan
South Africa
SinCo | Sustainable Investment Consultants | ©2009-2011
2

3. African Stock Exchanges
DRAFT
Top 5 African Africa stock
exchanges by market
capitalization (above USD
10bn)
Other Africa stock
exchanges
Source: Adapted from Jens Shleuniger, Portfolio Manager, EM Equities, DWS Invest Africa, correspondence with authors May 2010.
SinCo | Sustainable Investment Consultants | ©2009-2011
3

4. 4

5. Drivers: Performance Impact of ESG Factors 3-10 Years
Performance impact of ESG Factors 3-10 Years
DRAFT
[n= 97 investors (51 PE investors) + 46 stakeholders; forced ranking 14 answers, very/somewhat/marginally/not important;
Jan'10-Feb'11; SinCo analysis 2010-11]
Corporate Governance. 44 37 34
DRAFT
DRAFT
DRAFT
Inf rastructure Development. 31 32 37
Employee Relations, Saf ety and Worker Rights. 29 20 16
Environmental Management 24 17 15
Water scarcity or sanitation. 21 27 31
DRAFT
DRAFT
Jobs creation [“decent paying” jobs]. 21 22 17
DRAFT
DRAFT
DRAFT
Private Equity - Very Important
Human and Indigenous Peoples Rights. 18 16 16
Investors (excluding PE) - Very
Product Health, Saf ety and Nutrition Issues. 17 15 12 Important
Stakeholders - Very Important
Broad-Based Black Economic Empowerment 16 21 8
HIV/AIDS. 13 24 23
DRAFT
DRAFT
DRAFT
DRAFT
Emissions of greenhouse gases. 12 13 18
Gender Diversity. 8 12 5
Micro-f inance, micro-insurance. 6 12 11
Biodiversity. 6 9 15 Source: SinCo+RisCura data; SinCo analysis 2011
0 20 40 60 80 100 120 140
Survey results show governance as the ESG factor dominating performance impact – despite differences between investors and
stakeholders for issues such as water scarcity of HIV/AIDS.
SinCo | Sustainable Investment Consultants | ©2009-2011
5

6. Drivers: Making Sustainable Investment Attractive
DRAFT
Perceived Key Drivers to Sustainable Investing in Sub-Saharan Africa
open-ended; n= 41 asset owners & managers + 43 PE investors + 43 stakeholders; Jan'10-Jan'11; Interviews SinCo analysis 2010-11
Asset Owners and Asset
Private Equity
Stakeholders
Managers
Good Investment / Financial 35%
Good Investment / Financial 44%
Good Investment / Financial 37%
Returns
Returns
Returns
More Information Available
28%
Tangible ESG Benefits / Impact
22%
= Tangible ESG Benefits / Impact 28%
= Incentives from governments,
regulators
Incentives from governments, 21%
Demand from clients; investor 17%
More information available
16%
regulators
mandate; shareholder pressure
Demand from clients; investor 19%
Incentives from governments, 12%
Proven risk reduction
14%
mandate; shareholder pressure
regulators
Explicit SI/ESG Impact
16%
More information available
7%
Demand from clients; investor 9%
mandate; shareholder pressure
Source: SinCo+RisCura data; SinCo analysis 2011
Investments return remain the key driver across all respondent categories. Impact importance varies
SinCo | Sustainable Investment Consultants | ©2009-2011
6

7. Market: Sustainable Investment in 2011
DRAFT
Estimated total AUM in sustainability/ESG investment
$billions
Sub-Saharan Africa, 2010
European Union, 2010
United States of America, 2010
Canada, 2008
Brazil, 2009
Middle East North Africa, 2010
Australasia, 2010
China, 2009
South Korea, 2009
India, 2009
Source: SinCo+RisCura data; SinCo analysis 2011
Market dominated by largest investment markets, Western Europe and North America.
SinCo | Sustainable Investment Consultants | ©2009-2011
7

8. Defining SI: Sustainable Investment Strategies and Methodologies
Sustainable investment strategies and methodologies: key terms by SinCo 2011
Investment
Theme/Strategy
Description
Stage
Removing companies involved in unethical activities from the investment set, such as the
Ethical/religious/
1
manufacturing of armaments, tobacco, etc.
norms-based
Screening
Only investing in companies that lead their peer groups/industry/sector in ESG performance at a given
2
Positive/best-in-class
time.
Thematic investing based on trends/risks/opportunities arising from the pursuit of sustainable
3
Sustainability/ESG
development.
Ideas
Investment enabling capital to be allocated to companies/projects that lead directly to sustainable
development, new business models, new market segments. Includes community investing and impact
4
Sustainable finance
investing.
Investment that includes ESG factors in valuations models. Applied to equity, fixed income, PE, and
Analysis
5
Integrated analysis
alternative asset classes.
Communication and collaboration between investors and management that encourages improvements
Constructive
6
to ESG performance.
engagement
Holding
The use of shareholding to launch public campaigns against specific corporate practices.
7
Shareholder activism
Go/no-go decision for continued holding of existing portfolio position or 0-100% weighting.
Exit
8
Investment exit
Source: Graham Sinclair/SinCo 2011; Informed by work of Julie Hudson/UBS 2005; Mike Tyrell et al Citigroup 2008 and others.
SinCo | Sustainable Investment Consultants | ©2009-2011
8

9. ESG-integrated Optimal Active Asset Ownership
Asset universe bounded by investment parameters including legal/technical asymptotes
Expected returns Liability structure Economic Risk tolerance, ESG risks,
and risks for asset (replicating valuation of assets e.g. available risk opportunities
classes
portfolio)
and liabilities
capital
scenarios
Optimal asset allocation
Investment policy
Investment committee
Systemic influence
Sell
Decision
Buy
Hold
Active ownership

10. Promoting sustainable long-term investment performance
10

11. Sustainable investment consulting firm with global practice
• SinCo at a Glance
• Experienced
– Bespoke investment advisory focused on – Established boutique in Boston in Q4 2006 :
sustainable investment architecture
Inaugural engagement for Wall St proprietary
– Architect + analysts with support team and third party manager with USD 900bn
operating projects with partners in Geneva, AUM, 200 analysts, mutli-asset classes
Seattle, London, Nairobi, Washington DC, – Since 2006, SinCo has delivered sustainable
Cape Town, Istanbul
investment architecture globally to pension
– Word-of-mouth, below-the-radar approach
funds, asset managers and international
organizations integrating ESG factors into
investment practice.
• Philosophy
– Public projects and confidential “dark”
– SinCo is a boutique investment advisory firm projects for proprietary clients in listed
specializing as an ESG investment architect equity, hedge funds, investment product
for sustainable investment in frontier and R&D, investment bank derivative
emerging markets.
instruments, ESG impact metrics.
– SinCo helps clarify questions, design &
develop answers, and project manages • Proven Project Leader
thinking into action.
– Multi-year, multi-stakeholder, multi-country
– SinCo promotes answers to sustainability
emerging from talent in frontier and emerging projects
markets, as well as developed countries.
– Developed framework for 25 country rollout
by PRI in EM project
As the sustainable investment architect we consider sustainability – environmental, social and governance
factors – are integrated in all investment decisions.Working with SinCo our clients have access to world-
class strategy and plans to solve the challenges in making sustainable investment work.
11

12. Credentials: testimonials for SinCo
• … is an exceptional professional in all that he does. His work is at the crossroads of business
intelligence, finance and investments and sustainability. His ability to clarify objectives and
execute on solutions has demonstrated the fruitful success of the business case for
sustainability.
– Director and Senior Investment Analyst, global institutional asset manager, New York City.
• … served as a strategic adviser to a large US Asset manager as we worked together on
developing their sustainable investment strategy. He provided on-going support to their internal
team and served as a knowledgeable and helpful sounding board as their staff tried to move
sustainability forward
– - Senior Client Relationship Manager, Global ESG ratings and research provider, London
• "For many investors, getting to grips with ESG issues in emerging markets is a top priority. [He]
was crucial in encouraging new partnerships in diverse markets..."
– Clean tech private equity fund manager and former Executive Director, ASRIA, Hong Kong.
• … has shown a fantastic drive and commitment to the PRI initiative. He clearly helped promote
the ESG thematic to the top of our priorities.
– - Chief Risk Officer, hedge fund-of-funds investment house, Zurich.
• ”… is one of our leading thinkers on SRI. The work that Graham is doing will transform SRI and
take it to the next level."
– Managing Director, equity investment manager, Boston.
• "Graham Sinclair's work is excellent."
– Executive Director, billion-dollar global foundation, Philadelphia.
12

13. About SinCo team
• Graham Sinclair is a sustainable investment strategist, ESG architect and global project leader
at SinCo. Graham has eight years specialist experience in sustainable investment globally after
eight years in pensions consulting and investment banking in Africa. Recent consulting
engagements in sustainable investment include:
– Leading IFC-funded research into private equity and liquid equity ESG strategies in sub-Saharan Africa in
South Africa, Kenya and Nigeria to be published in 2011.
– Developing innovative financing mechanisms strategy and ESG index architecture for developed, emerging
and frontier markets for a Swiss-based international organization.
– For a global institutional investment firm in New York with a USD 1 trillion AUM portfolio, designing ESG
architecture across private equity, liquid and global real estate portfolios covering philosophy and process
innovations and investment strategies.
– As consultant to the UN, developed strategy for 25 emerging markets and launched PRI in Emerging
Markets project in Q3 2007 for UNEP FI, creating a network infrastructure, building relationships with 108
investor stakeholders including in Africa through 2008.
– Lecturing on ESG in investment strategies at investment practitioner symposia and leading business schools
in Europe, Africa and the US. Currently developing case studies on ESG investment in emerging markets for
his forthcoming book.
• Before starting his eponymous investment advisory boutique SinCo in 2006, he was Product
Manager at KLD Research & Analytics, Inc, based in Boston. He is a former contributor to the
CSR Initiative at Harvard Kennedy School, Distinguished Member of Net Impact, alum of WWF
One Planet Leaders programme and the Tallberg Forum New Leaders Program. He holds
diplomas in retirement funds and insurance law, and in 1998 he was one of the youngest ever
dual-FILPAs. He currently leads the AfricaSIF Project building a not-for-profit Africa Sustainable
Investment Forum network.
• Graham earned his MBA on scholarship at Villanova University USA where he co-managed the
Arnone-Lerer SRI Fund equity portfolio in 2004. He holds a B.Com from the University of Natal
and LL.B from the Howard College School of Law as well as numerous industry specialist
certifications.
13

14. About SinCo team
Roselyne Yao is an Analyst at the sustainable investment architecture firm SinCo, where she
conducts sustainable investment strategy research and analysis.
Roselyne joined SinCo in October 2010 as Analyst on the IFC-commissioned research project,
Sustainable Investment in sub-Saharan Africa 2010. She previously was a Research Analyst for JPS
Global Investments (a California-based money management company focusing on sustainable
investing) and an Intern for the Social Research and Advocacy team at Walden Asset Management
(a Boston-based socially responsible investing company). Roselyne is also an AfricaSIF Steering
Committee member.
Roselyne passed the CFA level I exam in June 2009 and plans to sit for the CFA level II exam in
June 2011. She holds a Master in Business Administration (with a double concentration in Finance
and Marketing), a Certificate in Global Business Culture, and a Certificate of Excellence in
Sustainable Management and Technology from the University of Illinois. She currently resides in
Dakar, Senegal.
Cherie Vale is an [Intern] Creative at SinCo supporting the SinCo team with creative and
graphic design projectwork. During her studies she has worked part time photographing Sports,
with the main focus in Cycling. Capturing an image is not just simply pressing the button it is
how you capture a moment that will tell a story. Through her photography she wants to make a
difference in peoples lives and help connect people from different life styles.
Cherie attained a Bachelor of Arts Degree in Applied Design specializing in Photography at the
Stellenbosch academy of Design and Photography.
14
14