S-Network Emerging Sector Dividend Dogs Index Q4 2017 1
Index Characteristics Well-Established Universe of Index Candidates S-Network Emerging Markets Liquid 500 Index (SNX500) Serves as Universe for EDOGX SNX500 Comprises 500 Leading Emerging Markets Stocks Screened for Liquidity Diversified by Sector Five Stocks with Highest Dividend Yields in Each of the Ten GICS Sectors Comprising the SNX500 (Real Estate and Financials Combined) are Selected for Inclusion in EDOGX, Assuring Diversification Across All Sectors Diversified by Country Membership Limited to No More than Five Stocks Per Country Pure Yield No Qualitative Screens EDOGX Does Not Include Any Qualitative Screens, such as Dividend Growth, Dividend Consistency or Coverage Ratio Based Entirely on Dividend Yield, Making EDOGX the Only Pure Play Dividend Index Available Entirely Rules-Based Depends on a Clearly Defined Rules-Based Methodology No Discretion is Exercised in Compiling the Index Pre-Defined Screening Protocol Assures a Consistent, Transparent and Arms-Length Compilation Process The S-Network Emerging Sector Dividend Dogs Index Offers the First Pure Play, Rules-Based Emerging Market High Dividend Index. 2
Index Construction Upper Middle Income Markets (Certain former Comecon countries categorized as Upper Income are included) Apply Stock Market Screens Capture 99% of Aggregate Market Cap Coverage Select 85% of Each Country s Market Apply Quantitative Screening for ADTV and Minimum Market Cap Select 5 Highest Dividend Yielding Stocks in Each of Ten GICS Sectors Equally Weighted The S-Network Emerging Sector Dividend Dogs Index Methodology Is Completely Transparent and Includes Screens Designed to Mitigate Risk and Lower Transaction Costs. 3
Index Performance
Historical Performance 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 S-Network Emerging Sector Dividend Dogs TR Index vs. Benchmarks (12/31/2003 12/31/2017) 0 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 EDOGXTR SPGTEDUT SNX500T *To ensure fair comparisons, all of the starting index values are normalized to 1,000 as of December 31, 2003. Source: S-Network, as of 12/31/2017 2015 S-Network Global Indexes, 267 Fifth Avenue, New York, NY 10016. 5
Current Dividend Yield Comparison TTM Yield EDOGX 3.94% SNX500 2.02% Source: S-Network, as of 12/31/2017 6
2.30% 2.06% 1.94% 2.02% 2.62% 2.10% 2.70% 2.34% 2.02% 3.37% 3.84% 3.47% 3.20% 3.05% 3.35% 3.00% 4.05% 3.91% 3.94% 4.57% 4.98% 5.48% 4.99% 4.97% 5.31% 6.14% 5.61% 8.78% Historical Dividend Yields 10.00% S-Network Emerging Sector Dividend Dogs vs. S-Network Emerging Markets Liquid 500 (12/31/2004-12/31/2017) 9.00% 8.00% 7.00% 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 EDOGX SNX500 Source: S-Network, as of 12/31/2017 Over an Extended Time Frame, the S-Network Emerging Sector Dividend Dogs Index Has Consistently Offered Higher Yield than the SNX500 Index. 7
Index Constituents and Fundamentals
Index Constituents Consumer Discretionary Consumer Staples Energy Financials Health Care Astra International Tbk PT Astro Malaysia Holdings Bhd Ford Otomotive Sanayii AS Great Wall Motor Co. Ltd. - H Shares Woolworth Hldgs AVI Ltd British American Tobacco Malaysia Bhd Cencosud SA Charoen Pokphand Foods Kimberly Clark de Mexico S.A.B. de C.V. A Gazprom PJSC GDR Lukoil PJSC GDR Semirara Mining and Power Corp Thai Oil PCL Tupras-Turkiye Petrol Rafine BB Seguridade Participacoes S.A. Bank Pekao SA Barclays Africa Group Ltd Grupo Financiero Santander Mexico SAB de CV Malayan Banking Bhd Fleury SA Kalbe Farma Tbk PT Life Healthcare Group Holdings Ltd. Netcare Ltd Richter Gedeon Industrials Information Technology Materials Telecommunication Services Utilities BTS Group Holdings PCL Cielo SA Eregli Demir Celik Intouch Holdings PCL NVDR AES Gener S.A. CCR S.A. COSCO SHIPPING Energy Transportation Co Ltd - H Shares Enka Insaat ve Sanayi AS MISC Bhd Delta Electronics Thai PCL Infosys Limited ADR Lenovo Group Ltd. Wipro Corporation Ltd ADR Indocement Tunggal Prakarsa Tbk PT Severstal PJSC GDR Sinopec Shanghai Petrochemical Co Ltd H Shares Vedanta Ltd ADR MegaFon PJSC GDR Mobile TeleSystems PJSC PLDT Inc ADR Turkcell Iletisim Hizmet AS ADR CEZ-Ceske Energeticke Zavody ENGIE Brasil Energia S.A. Huaneng Power Intl ADR N Perusahaan Gas Negara PT Source: S-Network, as of 12/31/2017 The S-Network Emerging Sector Dividend Dogs Index Offers Diversification by Sector and Company, Avoiding Concentrated Risk. 9
Sector Distribution S-Network Emerging Sector Dividend Dogs Index: Sector Distribution Telecommunication Services 9.91% Consumer Discretionary 9.95% Utilities 10.03% Financials 10.12% Industrials 9.75% Energy 9.61% Information Technology 9.45% Materials 10.30% Consumer Staples 10.35% Health Care 10.54% Source: S-Network, as of 12/31/2017 10
Country Distribution S-Network Emerging Sector Dividend Dogs Index: Country Distribution Thailand 9.40% Indonesia 7.91% Malaysia 7.88% India 6.11% Chile 4.64% Philippines 3.80% China 9.61% Mexico 3.64% Hungary 2.03% Brazil 9.72% Others 3.94% Russian Federation 9.80% Turkey 9.98% South Africa 11.53% Source: S-Network, as of 12/31/2017 2015 S-Network Global Indexes, 267 Fifth Avenue, New York, NY 10016. 11
Index Fundamentals Index Fundamentals EDOGX SNX500 Price/Earnings 14.36 17.06 Price/Book Value 1.77 1.95 Dividend Yield 3.94% 2.02% Market Capitalization Profile Number of Constituents 50 Total Market Capitalization Largest Market Capitalization Smallest Market Capitalization Average Market Capitalization Median Market Capitalization 546.55 Billion USD 53.58 Billion USD 2.78 Billion USD 10.93 Billion USD 7.17 Billion USD Source: S-Network, as of 12/31/2017 Solid Fundamental and a Large Capitalization Bias Help Mitigate Risks in the S-Network Emerging Sector Dividend Dogs Index. 2015 S-Network Global Indexes, 267 Fifth Avenue, New York, NY 10016. 12
Statistical Profiles
Statistical Profile I Calendar Year Ending Price Appreciation S-Net Emerging Sector Div Dogs TR SNX500T Out/Underperformance 12/31/2004 25.93% 29.88% -3.95% 12/31/2005 28.72% 34.50% -5.78% 12/31/2006 37.99% 34.39% 3.60% 12/31/2007 45.30% 33.63% 11.67% 12/31/2008-41.77% -52.52% 10.76% 12/31/2009 108.88% 81.32% 27.56% 12/31/2010 35.10% 21.32% 13.78% 12/31/2011-4.88% -20.19% 15.30% 12/31/2012 31.95% 17.23% 14.73% 12/31/2013-2.79% -2.60% -0.19% 12/31/2014 1.33% -5.27% 6.60% 12/31/2015-15.42% -14.27% -1.15% 12/31/2016 16.39% 15.91% 0.48% 12/31/2017 21.48% 37.82% -16.34% Source: S-Network, as of 12/31/2017 The S-Network Emerging Sector Dividend Dogs Total Return Index has Outperformed the SXN1000 Total Return Index in Eight of the Last Twelve Years. 14
Statistical Profile II Total Return Appreciation EDOGXTR SPGTEDUT SNX500T Since Inception* 689.55% 245.86% 287.33% 10 Year 142.96% 20.04% 23.48% 5 Year 17.80% -3.25% 26.36% 3 Year 19.58% 15.76% 36.95% 1 Year 21.48% 31.15% 37.82% Compound Annual Growth Rate EDOGXTR SPGTEDUT SNX500T Since Inception* 15.90% 9.27% 10.16% 10 Year 9.28% 1.84% 2.13% 5 Year 3.33% -0.66% 4.79% 3 Year 6.14% 5.00% 11.05% 1 Year 21.48% 31.15% 37.82% *From 12/31/2003 Source: S-Network, as of 12/31/2017 2015 S-Network Global Indexes, 267 Fifth Avenue, New York, NY 10016. 15
Statistical Profile III Standard Deviation (Monthly) EDOGXTR SPGTEDUT SNX500T Since Inception* 20.95% 21.62% 21.77% 10 Year 22.36% 23.20% 23.06% 5 Year 14.94% 17.03% 15.36% 3 Year 16.22% 18.70% 16.22% 1 Year 7.18% 9.49% 7.01% Sharpe Ratio (Monthly) EDOGXTR SPGTEDUT SNX500T Since Inception* 0.7548 0.4631 0.4998 10 Year 0.4951 0.1809 0.1942 5 Year 0.2735 0.0277 0.3615 3 Year 0.4190 0.3273 0.6991 1 Year 2.6314 2.8310 4.5333 *From 12/31/2003 Source: S-Network, as of 12/31/2017 16
Statistical Profile IV Jensen s Alpha (versus SNX500T, Monthly) EDOGXTR SPGTEDUT Since Inception* 0.50% -0.02% 10 Year 0.58% -0.01% 5 Year -0.05% -0.44% 3 Year -0.25% -0.50% 1 Year -0.67% -0.36% Correlation (versus SNX500T, Monthly) EDOGXTR SPGTEDUT Since Inception* 0.9343 0.9466 10 Year 0.9360 0.9534 5 Year 0.8783 0.9274 3 Year 0.8663 0.9238 1 Year 0.8271 0.7259 *From 12/31/2003 Source: S-Network, as of 12/31/2017 17
Statistical Profile V Beta (versus SNX500T, Monthly) EDOGXTR SPGTEDUT Since Inception* 0.8993 0.9401 10 Year 0.9075 0.9591 5 Year 0.8540 1.0283 3 Year 0.8666 1.0652 1 Year 0.8472 0.9831 R-Squared (versus SNX500T, Monthly) EDOGXTR SPGTEDUT Since Inception* 0.8729 0.8960 10 Year 0.8761 0.9090 5 Year 0.7715 0.8601 3 Year 0.7505 0.8535 1 Year 0.6841 0.5269 Source: S-Network, as of 12/31/2017 2015 S-Network Global Indexes, 267 Fifth Avenue, New York, NY 10016. 18
Index Construction and Distribution 2015 S-Network Global Indexes, 267 Fifth Avenue, New York, NY 10016. 19
Index Construction Methodology All Constituents of EDOGX Must Be Constituents of the S-Network Emerging Markets Index Selection Criteria for S-Network Emerging Markets Index Include Requirements for Sector Inclusion, Primary Exchange Listing, Minimum Market Capitalization, Minimum Average Daily Trading Volume, and Other Factors Individual Securities Included in EDOGX Selected Based on Ranking system Within Each Sector Selects the Five Stocks in Each Sector with Highest Dividend Yield as of Last Trading Day of November Dividend Yield is Computed Based on Regular Cash Dividends Paid by the Company Over Previous Twelve Month Period, Divided by Share Price (Special Dividends Not Included) The S-Network Emerging Sector Dividend Dogs Index Uses A Stable and Transparent Construction Methodology. 2015 S-Network Global Indexes, 267 Fifth Avenue, New York, NY 10016. 20
Index Construction Weighting and Deletions Share Weights Based on Prices as of Close of Trading on Second Friday of Rebalancing Month Index Is Rebalanced Quarterly on the Third Friday of the Last Month of Each Calendar Quarter Index Is Rebalanced Quarterly Back to Equal Weights Stocks That Are Deleted From of SNX500 Are Deleted from EDOGX Effective Upon Deletion from SNX500 If Less Than Five Eligible Securities are Represented in any GICS Sector as of Snapshot Date Only Those Securities Which Qualify are Included A Detailed Methodology and Rules Is Available at www.sectordividenddogs.com. 21
Index Details & Data Distribution Index Values Distributed in Real Time (15 second snapshots) in USD and EUR Total Return Index Calculated Daily in USD and EUR Index Values Distributed via Consolidated Tape Comprehensive Historic Data (including simulated back-tests from 12/31/2003) Daily Prices for Price-Only + TR Indexes in USD + EURO Quarterly Portfolio Snapshots (Historic Constituents and Weights) Extensive Analytic support Quarterly Reports ( Index Insights ) Industry Overviews Extensive Statistical Data Comprehensive website: www.sectordividenddogs.com Broad data distribution via third party vendors S&P/Bloomberg/Yahoo, etc. S-Network contribution page on Bloomberg: SNET 2015 S-Network Global Indexes, 267 Fifth Avenue, New York, NY 10016. 22
Company History S-Network Global Indexes S-Network Global Indexes, Inc. is a publisher and developer of proprietary and custom indexes. Founded in 1997, S-Network publishes over 200 indexes, which serve as the underlying portfolios for financial products with over USD 6 billion in assets under management. S-Network indexes, which are supported by a state-of-the-art technology platform, are known for their transparency and efficiency. S-Network is a leader in socially responsible investment, publishing best-practice benchmark indexes in collaboration with Thomson Reuters. S-Network published the first global alternative energy and water indexes, which today serve as the recognized benchmarks for those sectors worldwide. In addition to publishing socially responsible indexes, S-Network produces proprietary environmental, social and governance ratings on nearly 5,000 public companies worldwide. S-Network publishes a comprehensive suite of benchmark indexes covering US, European, Pacific Basin and emerging markets companies and mirroring the performance characteristics of the most popular indexes. The benchmark series offers detailed historical data, including daily constituent level data, from December 31, 1999 to the present. S-Network benchmarks serve as starting universes for smart beta indexes, as institutional-quality performance benchmarks, and as bases for Separately Managed Accounts. S-Network is a prominent provider of smart beta indexes that incorporate both standard market statistics, as well as unique and highly specialized proprietary data sets derived from non-traditional sources. Smart beta indexes developed by S-Network embrace powerful single-factor models as well as complex multi-factor models that incorporate over 200 discrete factors. All indexes developed by S-Network address and resolve issues such as liquidity, investability and index turnover characteristics. For more information please visit http://www.snetglobalindexes.com 23