Investment Analysis - Djsi North America

Table of Contents:

1.0 Introduction: Page 3

2.0 The DJSG North America Index: Page 4

2.1 History Page 4

2.2 Structure Page 4

2.3 Selection Process Page 7

3.0 Research Methods: Page 10

4.0 Analysis Results: Page 12

4.1 Historical Results Page 12

4.2 Portfolio Blending Page 19

5.0 Conclusion & Recommendations Page 20

1.0 Introduction

Since the emergence of Sustainability Investments there has been an increasing desire by investors to diversify their portfolios by investing in companies that are committed to the concept of corporate sustainability. Such organisations are committed to managing all elements that contribute to the business: its stakeholders, corporate governance, the community and the environment. The attraction for investors to this new investment style is the promise to create long-term shareholder value by focusing their investments on organisations that embrace opportunities and manage risks associated with ongoing economic, environmental and social developments.

The Dow Jones Sustainability Indexes annual review 2011 states that leading sustainability companies display high levels of competence in addressing global and industry challenges in a variety of areas:

Strategy: Integrating long-term economic, environmental and social aspects in their business strategies while maintaining global competitiveness and brand reputation.

Financial: Meeting shareholders' demands for sound financial returns, long-term economic growth, open communication and transparent financial accounting.

Customer & Product: Fostering loyalty by investing in customer relationship management and product and service innovation that focuses on technologies and systems, which use financial, natural and social resources in an efficient, effective and economic manner over the long-term.

Governance and Stakeholder: Setting the highest standards of corporate governance and stakeholder...