Target Rock Advisors


TRA : Tuesday, April 2, 2013

News Release

For Immediate Release

For additional information, contact:

Kyle Rudden
Partner and co-founder
Target Rock Advisors, LLC

Gary E. Layton
Director, Marketing
Target Rock Advisors, LLC

2013 Sustainable Utility Leaders Announced by Target Rock: Socially Responsible Utilities Index Offers Solid Long-Term Returns

HAUPPAUGE, NY – April 2, 2013 – Target Rock Advisors announced today the 24 utilities that comprise its 2013 Sustainable Utility Leaders Index (SULI). SULI is a stock index for guiding sustainable and socially responsible investment decisions, while at the same time recognizing the utilities that have excelled as socially responsible corporate citizens.

Historically, the stocks of utilities that most successfully managed the “Triple Bottom Lines” of their companies over the last ten years have significantly outperformed other utilities, as well as the broader market indexes, such as the S&P 500.

Kyle Rudden, partner and co-founder of Target Rock said, “The 24 companies in our index represent the sustainability leaders in the US utility industry. Each has achieved high scores in the annual Target Rock sustainability assessment and ranking process.” The companies were chosen from a field of approximately 150 publicly traded energy utilities domiciled in the U.S., representing some 350 operating subsidiaries.

The utilities included in the Index were chosen based on a process that measures performance in three traditional “Triple-Bottom-Line” categories: social. Within the three categories, hundreds of dimensions of each utility’s performance are analyzed and scored. According to Rudden, “The Target Rock approach is rigorous and a bit unforgiving; all utilities are assessed using a common yardstick applied to publicly available and verifiable data, and the hard facts of actual historic performance, regardless of the reasons.”

An important consideration in Target Rock’s process are the financial indicators that suggest a company is capable of driving solid, sustainable financial performance, in addition to demonstrating leadership in environmental, social and governance issues. “We see the opportunity for a more fiscally conservative population to invest in companies that can produce good income-rich total returns in the long run, while keeping volatility and risk at appropriate levels. We believe the SULI index provides an excellent reference point for income-oriented sustainable and socially responsible investing,” said Rudden.

The 2013 SULI companies are, in alphabetical order: ALLETE, Inc.*, American Electric Power Company, Inc., Avista Corporation, Consolidated Edison, Inc., Dominion Resources, Inc., Duke Energy Corporation*, Edison International, Entergy Corporation, Exelon Corporation, IDACORP*, Inc., MGE Energy, Inc.*, NextEra Energy, Inc., Northeast Utilities, NV Energy, Inc.*, PG&E Corporation*, Pinnacle West Capital Corporation*, Public Service Enterprise Group Incorporated, Sempra Energy*, Southern Company, TECO Energy, Inc., Unitil Corporation*, UNS Energy Corporation, Wisconsin Energy Corporation, and Xcel Energy Inc.

The Target Rock Sustainability Leaders Index utilities significantly outperformed other utilities, as well as the broader market indexes, such as the S&P 500. The 2013 SULI would have produced an historic compound annual total return over the last ten years of just over 11% versus an S&P 500 compound annual total return of about 8%. S&P Dow Jones Indicies,** which is the calculation agent for SULI, updates the index daily and distributes it to Bloomberg under the tickers TRASULIP (price only) and TRASULIT (total return),” Rudden added. “By improving the line of sight between sustainability and stock performance, our indexes provide significant value to both the utility industry and financial community.”

About Target Rock Advisors

Target Rock Advisors, LLC provides research, data and analytics, as well as related consulting services to utilities, the financial community and related industries. The Target Rock sustainability assessment, scoring and ranking processes draw from a complex benchmarking model containing more than 2 million data points and 420 performance indicators. The Target Rock Sustainable Utility Leaders Index** tracks the stock market performance of the top-performing companies chosen from Target Rock’s assessment and ranking process. Data from the company’s assessment and ranking process also helps utilities by providing benchmarks for achievement in a variety of sustainability-related activities.

* Announced last week as category leaders in the large-cap, mid-cap and small-cap groups.

** The Sustainable Utility Leaders Index (SULI or the “Index”) is the exclusive property of Target Rock Advisors, LLC, which has contracted with S&P Opco, LLC (a subsidiary of S&P Dow Jones Indicies LLC) (“S&P Dow Jones Indicies”) to calculate and maintain the Index. S&P is a registered trademark of Standard & Poor’s Financial Services LLC (“SPFS); Dow Jones is a registered trademark of Dow Jones Trademark Holdings, LLC (“Dow Jones”); and these trademarks have been licensed to S&P Dow Jones Indicies. “Calculated by S&P Dow Jones Indicies” and its related stylized marks have been licensed for use by Target Rock Advisors, LLC. Neither S&P Dow Jones Indicies, SPFS, Dow Jones nor any of their affiliates shall be liable for any error or omissions in calculating the index.

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Deep, Sector-Specific
Sustainability Analytics:

1 industry
49 companies
30+ sources of data and information
2.4+ million points of data
400,000+ lines of proprietary code
1+ million calculations
11 indexes
200+ collective years of experience in the industry