UBS Investment Consulting



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The Arbor Group UBS Investment Consulting Asset Management for National Parks and Protected Areas Worldwide

The Arbor Group REDLAC Presentation 1. Introduction John S. Adams 2. Two-year review of global investment markets Carlos Obando 3. Presentation of the CTIS Study Marja Preston-Gates 4. Conclusions and best practices CTIS John S. Adams 5. Panel discussion moderator; Juan Felipe Jimenez

The Arbor Group - Our Commitment to Conservation Our clients include endowments for mountain gorillas residing in Ugandan Parks, forest elephants in the mountains of Tanzania, jaguars in the cedar forests of Malawi, sea turtles in the Dutch Caribbean and giant river otters in the rainforests of Suriname.

The Arbor Group A Commitment to Conservation Funds The Arbor Group at UBS has a stated goal of providing Conservation Trust Funds with $10 million to $250 million of assets with performance net of fees in the NACUBO study band of $500 million to $1 billion endowment funds. Proven experience at working with International Conservation Trust Funds in in Africa, The Caribbean and Latin America Dedicated business structure with multiple senior consultants

The Arbor Group Director John S. Adams, CFP, CIMA Sr. Vice President Investments - Director, The Arbor Group - Institutional Consultant, - Senior Portfolio Manager, Portfolio Management Program - Masters in Financial Services (MSFS), American College - Masters in Management (MSM), American College - Certified Investment Management Analyst (CIMA), Wharton School - Certified Financial Planner (CFP), College for Financial Planning - UBS President's Council - Over 27 years in the industry

The Arbor Group at UBS Business Associates Carlos Obando First Vice President Investments - Equity research and investment strategy - Long term care insurance - Fluent in Spanish - Semi-fluent in Portuguese - BS, Duke University - MBA, Harvard Business School - Former board member, MIT Institute of the NW - Over 20 years in the industry Patrick T. Drum, CFA Financial Advisor - Fixed Income research and investment strategy - Equity research - ESOP's and business succession strategies - Chartered Financial Analyst (CFA), CFA Institute - MBA, Seattle University - Over 15 years in the industry - Semi-fluent in Russian Jason Hamlin, CIMA, CRPC Financial Advisor - Governance research/trained governance consultant - Business retirement plans - Relationship management and marketing - Certified Investment Management Analyst (CIMA), Wharton School - Chartered Retirement Planning Counselor (CRPC), College for Financial Planning - Top 40 Under 40, Alaska 2008 - Business Person of the Year, 2004 GWCC - Former Store General Manager, Sears John Highum Senior Vice President Investments - Institutional trading - Global and foreign fixed income trading - Asset/liability management for banks and municipalities - Over 30 years in the industry

The Arbor Group The Role of Conservation Endowments Conservation endowments provide management for uneven capital flows. Lump sum payments from: Government Donor Grants Private Donor Grants Biodiversity Offset Payments Payments for Ecosystem Services Carbon Payments Conservation endowment earnings are then disbursed over a term of years or perpetuity.

The Arbor Group The Arbor Group Investment Consulting Service Capital Markets Overview

The Arbor Group The Conservation Trust Fund Investment Survey Conclusions and Lessons Learned

CTIS Methodology Returns were normalized by reporting in local currency and dollars. This allows a fair comparison of returns between all trust funds. A non-attached appendix also reported all CTF returns in Euros. Some funds reported sinking fund and endowment, others did not report sinking funds. We believe that both should be reported separately in the following editions of the study. The 3-year average returns shown on page 11 of the study show a clearer picture of the returns accomplished by funds in recent volatile markets. For more information about services, please request a copy of the UBS Institutional Consulting ADV Disclosure Document.

CTIS - Actions taken by Conservation Trusts Many of the CTFs made changes to their Investment Policy as a result of the economic situation Many CTFs reduced spending in reaction to the decline in asset values Some CTFs took steps to replace asset managers Few funds indicated that they have tactical rebalancing strategies. Those that did generally had reduced risk and increased performance. For more information about services, please request a copy of the UBS Institutional Consulting ADV Disclosure Document.

CTIS Conclusions and Observations Conservation Trusts were on average more conservative than most other endowments and average three-year returns showed better returns. Some CTFs have begun planning their spending by using three and five year average returns. This helps to smooth spending and enhance predictability. The Five-year CTF returns reported in the study indicate that they remain a viable long-term mechanism for biodiversity conservation.

Contact The Arbor Group Advisory and Brokerage Services The Arbor Group UBS Financial Services, Inc. 925 Fourth Ave., Suite 200 Seattle, WA 98104 206-447-2465 Direct 800-426-7531 Toll Free 206-628-6556 Fax www.ubs.com/team/thearborgroup

Disclaimer It is important that you understand the ways in which we conduct business and the applicable laws and regulations that govern us. As a firm providing wealth management services to clients, we are registered with the U.S. Securities and Exchange Commission (SEC) as an investment adviser and a broker-dealer, offering both investment advisory and brokerage services. Though there are similarities among these services, the investment advisory programs and brokerage accounts we offer are separate and distinct, differ in material ways and are governed by different laws and separate contracts. It is important that you carefully read the agreements and disclosures that we provide to you about the products or services we offer. While we strive to ensure the nature of our services is clear in the materials we publish, if at any time you seek clarification the nature of your accounts or the services you receive, please speak with your Financial Advisor. For more information, please visit our website at www.ubs.com/workingwithus Services are advisory services and clients should read the ADV Disclosure Document applicable to carefully before entering into a Consulting Services Agreement with. This presentation is provided for educational purposes only and does not represent a comprehensive list of questions or considerations necessary for making effective investment decisions. Consult with your investment and legal advisors for a more through discussion of your unique needs, risks, expenses and other investment-related matters.