U.S. Equity Strategy BrochureQ2 2020

• Sustainable Growth-at-the Right Price (SGARP) approach that invests incompanies with strong management teams that generate consistent earnings,cash flows and returns on equity

• Optimal combination of quantitative and fundamental company research

• Product-design advantages:– Portfolios invest in approximately 50 companies where conviction is high– Long-term holding horizon (typically four years) leads to low turnover

• Has produced competitive relative and absolute returns since inception

• Attractive organizational characteristics

U.S. Equity Strategy: What We Deliver

2

* As of 6/30/2020. AUM data is inclusive of both discretionary and non-discretionary client assets

Founded: 1996 Location: Houston, TX Ownership: 100% Employee-owned Total Employees: 32

Total AUM: $1.8 Billion*

Eagle Global Advisors

3

Investment Strategy

Client Type

34%

19%22%

25% International

Global

Midstream & MLP

U.S.

52%48% Individuals

Institutions

Attractive Organizational Characteristics

4

• Professional continuity – No U.S. Investment Committee departures since 1995

• Key employee/owners are in the prime of their careers

• Focused on core competencies

• Has conservatively managed for long-term success:- No debt- Always profitable- Have consistently reinvested in the business – even during downturns

• Principals invest in the same strategies as our clients

Portfolio Management Investment Committee consisting of the firm’s senior investment professionals

Inception Date January 1, 1997

Style Invests in companies with sustainable growth trading at the right price (SGARP)

Objective 2% per annum Excess Return above S&P 500 Index over market cycle

At-a-Glance

U.S. Equity Strategy: Profile

5

John GualyPartner

NameTitle

Investment ProcessResponsibilities Years Experience Years at

FirmDegrees /

DesignationsUniversity or Sponsoring

Body

Investment Committee Co-Chair Portfolio ManagementResearch

28 23BBAMBACFA

University of TexasRice UniversityCFA Institute

Brian QuattrucciSenior Vice President

Investment Committee Co-ChairPortfolio ManagementResearch

23 15BS

MBACFA

Bryant CollegeRice UniversityCFA Institute

Edward AllenSenior Partner

Investment Committee MemberPortfolio ManagementResearch

27 23BS

PhDCFA

Princeton UniversityUniversity of Chicago

CFA Institute

Thomas HuntSenior Partner

Investment Committee MemberPortfolio ManagementResearch

28 23

BSMBACFACPA

University of TexasHarvard Business School

CFA Institute

Andrea BennisVice President Research 21 12 MBA

CFAESLSCA, Paris, France

CFA Institute

Bill CruiseVice President Research 17 12

BBAMBACFA

University of TexasYale UniversityCFA Institute

Rajansh MiglaniVice President

Research 10 4BE

MBACFA

Delhi College, IndiaUniversity of Texas

CFA Institute

Steven RussoSenior Partner

Investment Committee MemberPortfolio ManagementResearch

32 23 BBAMBA

University of TexasRice University

U.S. Investment Team

6

Common Practice Eagle Global Advisors Advantage

...Expertise, passion and commitment

Internally designed strategy that is managed and supervised by tenured, senior Eagle employees

Often assigned to generalists who did not create the strategy and have no equity ownership

Portfolio Management

...FlexibleSGARPGrowth or ValueStyle

...Eagle Global combines both in an optimal way

Fundamentalists who are sophisticated users of quantitative methods

Fundamental or Quantitative orientation

Approach

...Freedom to be highly selective

45 - 60 stocks / Four-year holding periods

80-120 stocks / One-to-two year holding periods

Product Design

U.S. Equity Strategy: How We Are Different

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Philosophy

8

“The stock market serves as a relocation center where money moves from the active to the patient.”

― Warren Buffett

Investors often focus on shorter-term horizons. Company economic performancefollows much longer-term cycles. Due to these different timescales, the market oftenunderestimates the ramifications of positive change.

How we exploit this inefficiency:

• Apply Disciplined Financial Models...to identify companies with improving long-term growth outlooks not yet appreciated by the market

• Apply Qualitative Fundamental Research...to confirm there are true fundamental reasons for the improved growth outlook and the improved growth outlook is sustainable

• Be Patient...allow time for inefficiencies to be resolved. Some of the best portfolio decisions are to do nothing

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Universe of Securities

1,000 Large and Mid Cap stocks

Smart IQ Sentiment Score:

Top Performers/ Low Turnover

250 stocks

Quantitative & Fundamental Analysis

Risk Management

40-60Stocks

Initial Universe: Largest, most liquid U.S. securities

Portfolio Construction:Optimal combination of quantitative and fundamental research in high conviction holdings with low turnover.

Research Edge:EGA quantitative model utilized to focus U.S.universe on a manageable list of companies

Focus Factors:Earnings revision, value, growth and momentumConsistent earnings, cash flow and return on equity

Exposure Analysis:Portfolio exposure to interest rates, currencies, oil prices, market capitalization and concentration limits

U.S. Strategy – Investment Process

• Primary screening tool to focus research effort from large universe of stocks• Incorporates EGA’s proprietary institutional ownership sentiment score based

on high quality metrics

Smart IQ Sentiment Score

Smart IQ Sentiment Score

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• Attractive Growth Profile• Consistent earnings and revenues• ROE/ROI/ROA – sector specific

• Balance Sheet Strength• Free Cash Flow• Low Leverage• Quality earnings profile

High Quality Metrics

• Screen highlights growth and value companies across the universe in the top 25% warranting further evaluation

• Provides research edge with focused list of companies

Screening Tool Output

• Emphasis on companies that possess sustainable competitive advantages• Leadership with a clear strategic vision• Shareholder friendly management and ownership structure

Qualitative Analysis • Competitive strengths and weaknesses • Industry position• Management strategy and integrity

Fundamental Analysis

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• Evernotes maintained on each company provide collaboration with team members, idea generation and discipline to monitoring process

• Information is gathered from a variety of sources including company conference calls, industry conferences, positive and negative analyst reports, periodicals, company annual and quarterly reports, research databases and various news wires

• Valuation analysis utilizes HOLT valuation software and in-house analysis of company accounting information

Financial Statement Analysis • Accounting quality of earnings • Balance sheet strength• Cash flow • Ability to earn more than its cost of capital

Financial Analysis

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Sector • + / - 10% points vs. S&P 500 Index• Holdings are diversified across sectors and industries

Stock • Initial weighting of new positions: 1 - 3%• Portfolio contains 40-60 different companies

Risk Management and Portfolio Construction

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• Interest rates• Currencies• Oil prices• Market cap• Style

Factor Analysis

14

A Fundamental Review is triggered when:

• Smart IQ Sentiment Score falls below the top 25% of universe

• Material change in fundamentals occurs driving thesis to own a stock

• Risk management indicates a reduction may be prudent

• Excessive Valuation

• A stock with greater up-side potential on a relative value basis is identified

U.S. Strategy – Sell Discipline

Sector Allocation Versus S&P 500 Sector Allocation Versus S&P 500

Key Characteristics... Large cap, high ROE, reasonable valuation

Top Ten Holdings... Established leaders with sustainable competitive advantages

Sector Eag le S&P 500

Information Technology 33.0% 27.5%

Communication Services 15.4% 10.8%

Industrials 11.1% 8.0%

Energy 4.3% 2.8%

Financials 11.1% 10.1%

Consumer Discretionary 10.3% 10.8%

Utilities 1.9% 3.1%

Real Estate 1.1% 2.8%

Materials 0.0% 2.5%

Health Care 10.8% 14.6%

Consumer Staples 1.5% 7.0%

Character is t ic Eag le S&P 500

Weighted Average Market Cap $464 Billion $348 BillionWeighted Median Market Cap $198 Billion $134 Billion12- Month Trailing P/E 22.79 21.0112- Month Forward P/E 22.93 21.26Return on Equity 16.8% 15.3%P/B 3.89 3.59Yield 1.5% 1.9%Number of Holdings 47 500

Sector

1 Apple Inc. Information Technology2 Amazon.com, Inc. Consumer Discretionary3 Microsoft Corporation Information Technology4 Facebook Inc. Class A Communication Services5 Invesco QQQ Trust Information Technology6 Alphabet Inc. Class A Communication Services7 JP Morgan Chase & Co. Financials8 Alphabet Inc. Class C Communication Services9 Amgen Inc. Health Care10 Lockheed Martin Corporation Industrials

Top Ten Ho ld ings

Portfolio Characteristics As of 6/30/2020

15EGA’s top ten holdings represent our 10 largest holdings as of June 30, 2020.  This is not a recommendation to buy or sell any security.  

There can be no assurance that the portfolio will continue to hold the same position in companies described herein, and the portfolio may change any portfolio position at any time.

5.5%

4.6%

3.1%

1.5%

1.0%

-0.5%

-1.1%

-1.8%

-2.5%

-3.8%

-5.5%

-15% -10% -5% 0% 5% 10% 15%

Information Technology

Communication Services

Industrials

Energy

Financials

Consumer Discretionary

Utilities

Real Estate

Materials

Health Care

Consumer Staples

Return On Equity...Growing companies with strong franchises

Weighted Average Market Cap...Large Cap bias

Price-to-Book...Trading at reasonable valuations

5%

10%

15%

20%

25%

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Eagle S&P 500

1.0

2.0

3.0

4.0

5.0

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Eagle S&P 500

$50B

$100B

$150B

$200B

$250B

$300B

$350B

$400B

$450B

$500B

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Eagle S&P 500

Key Portfolio Characteristics Over Time As of 6/30/2020

16

‐40%

‐30%

‐20%

‐10%

0%

10%

20%

30%

40%

Calendar Year Performance As of 3/31/2020

17

See p. 21 for additional performance calculation information and GIPS performance disclosures.

201420132012201120102009200820072006200520042003200220012000 2015 2016   2017 2018 2019 2020

‐11.7% ‐10.1% ‐19.3% 24.2% 9.3% 9.0% 14.5% 11.4% ‐34.9% 23.0% 14.2% 1.0% 13.5% 31.5% 17.0% 0.0% 11.8% 20.5% ‐6.3% 31.0% ‐0.7%

‐12.6% ‐11.1% ‐20.2% 23.1% 8.3% 8.0% 13.4% 10.3% ‐35.6% 21.9% 13.1% 0.0% 12.4% 30.3% 15.9% ‐1.0% 10.7% 19.3% ‐7.2% 29.8% ‐1.2%

‐9.1% ‐11.9% ‐22.1% 28.7% 10.9% 4.9% 15.8% 5.5% ‐37.0% 26.5% 15.1% 2.1% 16.0% 32.4% 13.7% 1.4% 12.0% 21.8% ‐4.4% 31.5% ‐3.1%

 EGA Domestic Equity (% gross)

 S&P 500

 EGA Domestic Equity (% net)

• Sustainable Growth-at-the Right Price (SGARP) approach that invests in companies with strong management teams that generate consistent earnings, cash flows and returns on equity

• Optimal combination of quantitative and fundamental company research

• Product-design advantages:– Portfolios invest in approximately 50 companies where conviction is high– Long-term holding horizon (typically four years) leads to low turnover

• Has produced competitive relative and absolute returns since inception

• Attractive organizational characteristics

U.S. Equity Strategy: What We Deliver

18

See p.21 for additional performance calculation information and GIPS performance disclosures.

*Preliminary

*Preliminary

U.S. Equity Composite

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MRQ* YTD* 1 Year* 3 Years* 5 Years* 10 Years*

EGA US Equit y (% gross ) 22.6 -0.7 9.7 10.6 9.6 13.7

EGA US Equit y (% net ) 22.3 -1.2 8.7 9.5 8.6 12.6

S&P 500 20.5 -3.1 7.5 10.7 10.7 14.0

Annualized Returns

Year S&P 500

Gross Net Gross Net Gross Net Gross Net Gross Net

1997 2.43% 2.18% 19.99% 19.74% 6.93% 6.68% 5.41% 5.16% 38.53% 37.26% 33.36%

1998 15.35% 15.10% 6.56% 6.31% -8.77% -9.02% 23.62% 23.37% 38.62% 37.34% 28.57%

1999 4.92% 4.67% 4.84% 4.59% -3.82% -4.07% 18.51% 18.26% 25.38% 24.20% 21.03%

2000 4.05% 3.80% -3.13% -3.38% -3.33% -3.58% -9.36% -9.61% -11.68% -12.59% -9.15%

2001 -12.10% -12.35% 5.89% 5.64% -11.51% -11.76% 9.12% 8.87% -10.12% -11.05% -11.91%

2002 -0.53% -0.78% -12.02% -12.27% -14.03% -14.28% 7.22% 6.97% -19.33% -20.18% -22.15%

2003 -1.50% -1.75% 13.30% 13.05% 1.43% 1.18% 9.74% 9.49% 24.22% 23.05% 28.62%

2004 1.71% 1.46% 1.46% 1.21% -2.84% -3.09% 9.03% 8.78% 9.32% 8.25% 10.92%

2005 0.67% 0.42% 2.80% 2.55% 6.49% 6.24% -1.08% -1.33% 9.01% 7.95% 4.88%

2006 5.65% 5.40% -0.01% -0.26% 1.45% 1.20% 6.79% 6.54% 14.45% 13.35% 15.79%

2007 0.60% 0.35% 7.23% 6.98% 4.01% 3.76% -0.73% -0.98% 11.38% 10.30% 5.50%

2008 -8.18% -8.42% -0.59% -0.83% -10.43% -10.66% -20.39% -20.60% -34.91% -35.57% -37.00%

2009 -7.36% -7.58% 8.29% 8.04% 16.36% 16.09% 5.38% 5.12% 23.01% 21.85% 26.46%

2010 5.29% 5.04% -12.59% -12.81% 11.39% 11.12% 11.38% 11.13% 14.32% 13.09% 15.06%

2011 6.21% 5.97% -0.48% -0.17% -15.07% -15.28% 12.49% 12.23% 1.00% 0.03% 2.11%

2012 11.61% 11.35% -3.03% -3.27% 7.35% 7.10% -2.31% -2.55% 13.49% 12.42% 16.00%

2013 9.74% 9.49% 3.52% 3.28% 5.25% 5.00% 10.00% 9.74% 31.53% 30.30% 32.39%

2014 1.50% 1.26% 6.47% 6.22% 2.37% 2.12% 5.78% 5.53% 17.02% 15.92% 13.69%

2015 2.25% 2.00% 1.52% 1.28% -8.29% -8.52% 5.04% 4.79% -0.01% -0.96% 1.38%

2016 -0.82% -1.06% 1.15% 0.91% 5.16% 4.91% 6.03% 5.78% 11.86% 10.80% 11.96%

2017 5.77% 5.52% 2.84% 2.59% 5.15% 4.90% 5.37% 5.12% 20.51% 19.37% 21.83%

2018 -0.42% -0.66% 4.22% 3.97% 4.98% 4.73% -13.89% -14.10% -6.21% -7.11% -4.38%

2019 11.92% 11.67% 5.89% 5.64% 0.83% 0.59% 9.55% 9.30% 30.92% 29.70% 31.49%

2020 -18.97% -19.18% 22.57%* 22.30%* -0.68%* -1.16%* -3.08%

Q1 Q2 Q3 Q4 YTD

See p.21 for additional performance calculation information and GIPS performance disclosures.

U.S. Equity Composite

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EGA U.S. Equity CompositeJanuary 1, 2004 through March 31, 2020

Composite Disclosures

US Equity Fee Schedule (minimum annual fee: $10,000)

Account Size Under $2 million Over $2 million

Annual Fee 1.00% 0.60%

Representative Example of Compounded Effect of Investment Advisory Fee

A maximum 1.00% management fee deducted from a portfolio quarterly (0.25%/quarter) would result in the following cumulative compound reduction of the portfolio time-weighted rate of return.

Years Cumulative Fee Years Cumulative Fee

1 1.004% 6 6.176%

2 2.018% 7 7.241%

3 3.042% 8 8.318%

4 4.076% 9 9.405%

5 4.121% 10 10.503%

EGA US Equity Composite - The EGA US Equity Composite consists of those equity-only portfolios invested in US large capitalization growth equities. The Eagle equity investment philosophy focuses on identifying the securities of large capitalization companies with improving growth potential that are not fully recognized by current valuations.

• Eagle Global Advisors, LLC is an independent investment advisor, registered with the SEC, actively managing individual investment portfolios containing domestic equity, internationalequity, master limited partnerships, and domestic fixed income securities, (either directly or through a sub-advisory relationship), for mutual funds, high net worth individuals, retirementplans for corporations and unions, financial institutions, trusts, endowments and foundations. SEC registration does not imply a certain level of skill or training.

• Eagle Global Advisors, LLC claims compliance with Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with GIPS standards.Eagle Global Advisors, LLC has been independently verified for the periods 1/1/1997 to 12/31/2019 by Dabney Investment Consulting Associates, Inc. The verification reports are availableupon request. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firm’spolicies and procedures are designed to calculate and present performance in compliance with the GIPS standards. Verification does not ensure the accuracy of any specific compositepresentation. Annual returns are reported for all full years and interim quarterly returns. Returns of portfolios and composites for periods of greater than 1 year are annualized. Only directtrading expenses are deducted when presenting gross of fee returns. In addition to management fees, actual client returns will be reduced by any other expenses related to themanagement of an account such as brokerage charges, trustee fees or custodian fees. The currency used to express performance is the U.S. dollar. Returns are calculated net of bothnon-reclaimable and reclaimable foreign withholding taxes on dividends, interest, and capital gains. Reclaimable withholding taxes are not accrued, but are cash basis as received. Eagleuses calendar month-end portfolio valuations or valuations on the last business day of the month. Eagle uses the asset-weighted standard deviation as the measure of compositedispersion of the individual component portfolio gross full period returns around the aggregate composite mean gross return. If the composite contains 5 portfolios or less (<=5) for thefull period, a measure of dispersion is shown as not meaningful (N/A) and the number of portfolios is not reported. Past performance cannot guarantee comparable future results. Allinvestments involve risk including the loss of principal. This presentation is presented in a private and confidential nature, and is intended for clients who are financially sophisticated.

• The composite start date is January 1, 1997 and was created in September 1997. The composite includes those US equity-only portfolios where the firm has full investment discretion, theclient pays a fee, the portfolio has over $250,000 in US securities and the portfolio properly represented the intended strategy at the end of the calendar quarter. Prior to January 1, 2005the minimum asset level was $200,000. Portfolios smaller than the minimum are deemed incapable of sufficiently diversifying into this investment style and are excluded from thecomposite as being not fully discretionary. Prior to January 1, 2006 this composite was named the US Equity Composite, a name change only. All performance returns assume thereinvestment of dividends, interest, and capital gains.

• The benchmark is the S&P 500, a float-adjusted market capitalization index that is designed to measure equity performance of the 500 leading companies in leading industries of the U.S.economy. Index constituents have a market capitalization of at least US$ 4 billion. Indexes are U.S.-based and gross of tax Indexes are U.S.-based and gross of tax. The total return for thebenchmark (or benchmarks) that reflects the investment strategy represented by the composite is reported for each period.

• The indices shown are for informational purposes only and are not reflective of any investment. As it is not possible to invest in the indices, the data shown does not reflect or comparefeatures of an actual investment, such as its objectives, costs and expenses, liquidity, safety, guarantees or insurance, fluctuation of principal or return, or tax features. Indices do notinclude fees or operating expenses and are not available for actual investment. Indices presented are representative of various broad based asset classes. They are unmanaged andshown for illustrative purposes only. The volatility of the indices is likely materially different than the strategy depicted.

• The Eagle list of composite descriptions is available upon request. Eagle policies for valuing portfolios, calculating performance and preparing compliant presentations are available uponrequest. Eagle believes that all significant events that would help a prospective client interpret the compliant presentation are disclosed in the compliant presentation and in the firm’s SECForm ADV Brochure 2A.

• Eagle does not currently use carve-outs. Prior to 1/1/2008, Eagle used carve-out segments including cash to represent a discretionary portfolio and to be included in compositereturns. Cash was allocated to the carve-out returns on an equal-weighted basis determined by the number of asset classes.

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