S-Network International Sector Dividend Dogs Index Q4 2017 2015 S-Network Global Indexes, 267 Fifth Avenue, New York, NY 10016.
Index Rationale Well-Qualified Universe of Index Candidates Captures Stocks Accounting for 70% of Stock Market Capitalization in World Bank High Income Countries Screened for Price Screened for Liquidity Diversified by Sector Five Stocks with Highest Dividend Yields in Each of the Ten GICS Sectors Selected for Inclusion in IDOGX, Assuring Diversification Across All Sectors Pure Yield No Qualitative Screens IDOGX Does Not Include Any Qualitative Screens, such as Dividend Growth, Dividend Consistency or Coverage Ratio Based Entirely on Dividend Yield, Making IDOGX 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 Equal Weighting Methodology Constituents Equally Weighted as of Record Date The S-Network International Sector Dividend Dogs Index Offers the First Pure Play, Rules-Based High Dividend Index. 2
Index Construction 70-73% of Market Cap in 22 Developed Markets Eliminates Stocks Whose Share Price < $1 Eliminates Stocks Whose ADTV < $10 Million Select 5 Highest Yielding Stocks in Each of 10 GICS Sectors Equally Weighted The S-Network International Sector Dividend Dogs Index Methodology Is Totally Transparent and Includes Screens Designed to Mitigate Risk and Lower Transaction Costs. 3
Index Performance and Yields
Historical Performance 6,000 S-Network International Sector Dividend Dogs TR Index vs. S-Network Developed International 1000 TR Index (12/31/1999 12/31/2017) 5,000 4,000 3,000 2,000 1,000 0 Dec-99 Dec-00 Dec-01 Dec-02 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 IDOGXTR SPGTDOUT DJEPCSDT SND1000T Source: S-Network, as of 12/31/2017 The S-Network International Sector Dividend Dogs Index Offers Consistent Performance Over Time, Regularly Outperforming the SND1000. 5
Current Dividend Yield Comparison Dividend Yield IDOG Index 4.22% SND1000 Index 2.53% Source: S-Network, as of 12/31/2017 The S-Network International Sector Dividend Dogs Index Offers a Higher Dividend Yield than the SND1000. 6
1.83% 2.32% 2.33% 2.90% 2.98% 2.80% 2.44% 3.05% 2.78% 3.77% 3.71% 3.63% 2.85% 3.10% 3.29% 3.05% 2.98% 2.53% 4.11% 4.00% 3.62% 3.16% 3.16% 3.38% 4.26% 4.23% 3.82% 4.22% 4.94% 5.48% 5.29% 4.92% 5.13% 5.86% 6.22% 7.65% Dividend Yield 9.00% S-Network International Select Dividend Dogs Index Dividend Yield vs. S-Network Developed International 1000 Dividend Yield (12/31/1999-12/31/2017) 8.00% 7.00% 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% Dec-00 Dec-01 Dec-02 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 S-Network International Sector Dividend Dogs S-Network Developed International 1000 Source: S-Network as of 12/31/2017 Over an Extended Time Frame, the S-Network International Sector Dividend Dogs Index Has Consistently Offered Higher Yield Than the SND1000. 7
Index Constituents and Fundamentals
Index Constituents Consumer Discretionary Consumer Staples Energy Financials Health Care Hennes & Mauritz AB B Nissan Motor Co Pandora A/S Persimmon Sands China Ltd. Carrefour SA Imperial Brands Plc Japan Tobacco Inc Wesfarmers Ltd Woolworths Group Ltd BP ENI SpA Royal Dutch Shell PLC TOTAL SA Woodside Petroleum Ltd AMP Ltd National Australia Bank Ltd Nordea AB Swedbank AB Westpac Banking Corp AstraZeneca Plc GlaxoSmithKline Roche Hldgs AG Ptg Genus Sanofi-Aventis Teva Pharmaceutical Industries Industrials Information Technology Materials Telecommunication Services Utilities Abertis Infraestructuras SA Atlantia SpA Ferrovial SA International Consolidated Airlines Group SA Japan Airlines Co Ltd Canon Inc Ericsson L.M. Telefonaktie B Micro Focus International Nokia OYJ Tokyo Electron BHP Billiton Ltd Evonik Industries Fortescue Metals Group Rio Tinto Ltd UPM-Kymmene Oyj Proximus Telefonica Deutschland Holding AG Telia Company AB Telstra Corp Ltd Vodafone Group Centrica Endesa SA Energias de Portugal SA Fortum Oyj Scottish & Southern Energy Source: S-Network as of 9/30/2017 The S-Network International Sector Dividend Dogs Index Offers Diversification by Sector and Company, Avoiding Concentrated Risk. 9
Sector Distribution Telecommunica tion Services 9.80% S-Network International Sector Dividend Dogs Index: Sector Distribution Information Technology 9.76% Industrials 9.85% Utilities 9.53% Consumer Discretionary 9.87% Health Care 10.55% Financials 9.95% Materials 10.53% Consumer Staples 10.02% Energy 10.14% S-Network Developed International 1000: Sector Distribution Telecommunic ation Services 4.30% Energy 6.31% Materials 7.99% Health Care 9.00% Consumer Staples 10.02% Real Estate Utilities 1.77% 2.97% Information Technology 10.34% Financials 22.31% Industrials 14.06% Consumer Discretionary 10.92% Source: S-Network, as of 12/31/2017 10
Country Distribution S-Network International Sector Dividend Dogs Index: Country Distribution United Kingdom 20.05% Japan 9.68% Sweden 9.64% France 5.90% Finland 5.88% Spain 5.80% Australia 20.76% Germany Italy 3.91% 3.84% Israel 2.48% Source: S-Network, as of 12/31/2017 Belgium 1.89% Portugal 1.96% Denmark 2.10% Macao Netherlands 2.03% 2.04% Switzerland 2.03% 11
Index Fundamentals Market Capitalization Profile Number of Constituents 50 Total Market Capitalization Largest Market Capitalization Smallest Market Capitalization Average Market Capitalization Median Market Capitalization 2.47 Trillion USD 278.42 Billion USD 10.39 Billion USD 49.35 Billion USD 27.30 Billion USD Source: S-Network as of 12/31/2017 Solid Fundamentals and a Large Capitalization Bias Help Mitigate Risks in the S-Network International Sector Dividend Dogs Index. 12
Statistical Profiles
Statistical Profile Year-On-Year Price Appreciation S-Net International Sector Div Dogs TR S-Network Developed International 1000 TR Out/Underperformance 12/31/2000-3.85% -14.00% 10.14% 12/31/2001-12.95% -21.86% 8.91% 12/31/2002-10.08% -14.31% 4.24% 12/31/2003 44.62% 40.23% 4.39% 12/31/2004 24.95% 20.62% 4.33% 12/31/2005 10.80% 15.30% -4.50% 12/31/2006 33.58% 24.96% 8.62% 12/31/2007 13.67% 12.90% 0.77% 12/31/2008-37.13% -42.06% 4.93% 12/31/2009 54.09% 35.10% 18.99% 12/31/2010 11.73% 9.54% 2.19% 12/31/2011-5.16% -11.09% 5.93% 12/31/2012 15.42% 18.75% -3.33% 12/31/2013 20.74% 21.55% -0.81% 12/31/2014-4.77% -3.72% -1.05% 12/31/2015-5.41% -2.32% -3.09% 12/31/2017) 27.23% 26.17% 1.05% Source: S-Network as of 12/31/2017 The S-Network International Sector Dividend Dogs TR Index has Outperformed the SND1000 TR Index in Eleven of the Last Sixteen Years. 14
Statistical Profile I Total Return Appreciation S-Net Intl Sector Div Dogs TR S-Net Dev Intl 1000TR S&P Intl Div Opps TR DJ EPAC Sel Div TR Since Inception* 294.49% 114.06% 376.12% 326.44% 10 Year 72.40% 35.11% 7.72% 23.50% 5 Year 45.51% 49.26% 22.90% 32.10% 3 Year 26.54% 27.53% 17.04% 15.35% 1 Year 27.23% 26.17% 20.43% 19.91% Compound Annual Growth Rate S-Net Intl Sector Div Dogs TR S-Net Dev Intl 1000TR S&P Intl Div Opps TR DJ EPAC Sel Div TR Since Inception* 7.92% 4.32% 9.06% 8.39% 10 Year 5.60% 3.05% 0.75% 2.13% 5 Year 7.79% 8.34% 4.21% 5.73% 3 Year 8.16% 8.44% 5.38% 4.87% 1 Year 27.23% 26.17% 20.43% 19.91% *From 12/31/1999 Source: S-Network as of 12/31/2017 15
Statistical Profile II Standard Deviation (Monthly) S-Net Intl Sector Div Dogs TR S-Net Dev Intl 1000TR S&P Intl Div Opps TR DJ EPAC Sel Div TR Since Inception* 16.90% 16.57% 19.87% 18.44% 10 Year 19.26% 18.41% 23.12% 21.24% 5 Year 12.22% 11.26% 13.92% 13.09% 3 Year 12.09% 11.75% 14.56% 12.49% 1 Year 6.13% 4.12% 4.11% 5.70% Sharpe Ratio (Monthly) S-Net Intl Sector Div Dogs TR S-Net Dev Intl 1000TR S&P Intl Div Opps TR DJ EPAC Sel Div TR Since Inception* 0.4404 0.2409 0.4563 0.4440 10 Year 0.3620 0.2389 0.1346 0.1926 5 Year 0.6515 0.7431 0.3439 0.4684 3 Year 0.6724 0.7112 0.3998 0.4065 1 Year 3.8392 5.4851 4.3423 3.0667 *From 12/31/1999 Source: S-Network as of 12/31/2017 16
Statistical Profile III Information Ratio (vs S-Net Dev Intl 1000 TR, Monthly) S-Net Intl Sector Div Dogs TR S&P Intl Div Opps TR DJ EPAC Sel Div TR Since Inception* 0.7085 0.6516 0.5977 10 Year 0.5217-0.1191-0.0731 5 Year -0.1440-0.5554-0.4457 3 Year -0.3452-0.4762-0.7071 1 Year 0.0676-0.6499-1.1485 Alpha (vs S-Net Dev Intl 1000 TR, Monthly) S-Net Intl Sector Div Dogs TR S&P Intl Div Opps TR DJ EPAC Sel Div TR Since Inception* 0.30% 0.37% 0.34% 10 Year 0.21% -0.18% -0.07% 5 Year -0.06% -0.36% -0.25% 3 Year 0.00% -0.27% -0.29% 1 Year -0.05% 0.38% -0.77% *From 12/31/1999 Source: S-Network as of 12/31/2017 17
Statistical Profile IV Correlation 5Yr S-Net Intl Sector Div Dogs TR S-Net Dev Intl 1000 TR S&P Intl Div Opps TR DJ EPAC Sel Div TR S-Net Intl Sector Div Dogs TR 1.0000 0.9517 0.8975 0.9534 S-Net Dev Intl 1000 TR 0.8975 0.8829 1.0000 0.9129 S&P Intl Div Opps TR** 0.9534 0.9420 0.9129 1.0000 DJ EPAC Sel Div TR 0.9517 1.0000 0.8829 0.9420 Beta 5Yr S-Net Intl Sector Div Dogs TR S-Net Dev Intl 1000 TR S&P Intl Div Opps TR DJ EPAC Sel Div TR S-Net Intl Sector Div Dogs TR 1.0000 0.8770 1.0217 1.0208 S-Net Dev Intl 1000 TR 0.7883 0.7146 1.0000 0.8586 S&P Intl Div Opps TR** 0.8904 0.8107 0.9707 1.0000 DJ EPAC Sel Div TR 1.0329 1.0000 1.0908 1.0946 *From 12/31/1999 Source: S-Network as of 12/31/2017 18
Statistical Profile V R-Squared 5Yr S-Net Intl Sector Div Dogs TR S-Net Dev Intl 1000 TR S&P Intl Div Opps TR DJ EPAC Sel Div TR S-Net Intl Sector Div Dogs TR 1.0000 0.9058 0.8055 0.9089 S-Net Dev Intl 1000 TR 0.8055 0.7795 1.0000 0.8335 S&P Intl Div Opps TR** 0.9089 0.8874 0.8335 1.0000 DJ EPAC Sel Div TR 0.9058 1.0000 0.7795 0.8874 *From 12/31/1999 Source: S-Network as of 12/31/2017 19
Index Construction and Distribution
Index Construction Methodology Universe Consists of Stocks Representing the Top 70-73% of Market Capitalization in 22 High Income Countries Identified by the World Bank Criteria for Admission to Universe Includes Requirements for Sector Inclusion, Primary Exchange Listing, Minimum Market Capitalization, Minimum Average Daily Trading Volume, Minimum Share Price and Other Factors Individual Securities Included in IDOGX 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 International Sector Dividend Dogs Index Uses A Stable and Transparent Construction Methodology. 21
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 Deleted From the Universe Are Deleted from IDOGX Effective Upon Deletion From the Universe Stocks That Have Failed to Pay a Quarterly Dividend Are Deleted from IDOGX as of Next Quarterly Rebalancing 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 22
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 12/31/1999) 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 23
Company History S-Network Global Indexes S-Network Global Indexes, Inc. (SNGI) is a publisher and developer of proprietary and custom indexes. Founded in 2005, SNGI publishes over 200 indexes, which provide the foundations for ETFs and other financial products with approximately $4 billion in assets under management. Key clients in this capacity include some of the world s leading providers of ETFs, UIT, Structured Products and SMAs. SNGI is an industry leader in the development of smart beta indexes, which isolate key investment factors to produce indexes with unique performance characteristics. The firm is also a leader in sustainable and impact investing, its most recent accomplishment being the development and maintenance of the Thomson Reuters Corporate Responsibility Ratings and Indexes, which create new common denominators for environmental, social, and governance benchmarking. SNGI produces several important Impact Indexes, including the S-Network Global Water Indexes and the Ardour Global Alternative Energy Indexes, which have been continuously published longer than any other indexes of their type. 24