10/1/2008

A MESSAGE FROM WINSLOW'S PORTFOLIO MANAGERS REGARDING ONGOING MARKET CONDITIONS

October 1, 2008 - We are witnessing unprecedented turbulence in the global financial markets. The recent liquidations and bailouts of former financial stalwarts – Merrill Lynch, AIG, Fannie Mae and Freddie Mac, Lehman Brothers, Washington Mutual, Wachovia – are the latest examples of the global fallout from the credit and liquidity crises.

Winslow’s portfolios have not been immune to the far-reaching effects of this market downturn, which is rooted in the financial services sector but has spread to all sectors of the market. In this period of volatility and negative performance, we remain confident that our portfolios are invested in financially and environmentally responsible companies, and in companies that will provide solutions to many environmental challenges we face domestically and globally. As the financial markets stabilize, we believe that the green economy offers one of the most promising paths to economic recovery, and therefore continues to appear very attractive to us as a long-term investment opportunity. With that in mind, we remain firmly and confidently on course.

We reiterate that Winslow has no direct exposure to the financial services sector and that most of our companies appear to have solid balance sheets with very little financial leverage. However, we have experienced greater-than-expected indirect impacts on our portfolio, as the credit crisis has accelerated over the past few months in both depth and breadth:

• Several green solutions market segments have suffered stock price declines based on the recent pullback in oil and commodity prices. This effect is somewhat psychological –commodities are still scarce and oil prices are still at historical highs. But it has still impacted our holdings in specific segments during the most recent quarter, including solar power, geothermal energy, and metals recycling.
• Our investment strategies are growth driven, and they have suffered as overall economic growth has slowed over the past few quarters. With the financial market meltdown spilling over into the broader economy, consumer and industrial spending has slowed. As a result, some of our companies are experiencing the effects of a slowing economy.

Are we at a stock market bottom? This is a question that everyone is asking and a question for which there is no consensus answer, at least among leading financial analysts. There is too much uncertainty right now for anyone to have a real sense of when the market will begin to truly recover. Much will depend on the actions of the U.S. government in the coming weeks and months.

To Winslow, the more relevant question is: given the expected growth in the green economy over the next decade, and the escalating demand for clean energy and resource-efficient solutions, where are the greatest values in this market, and which investment opportunities have become the most attractive during this downturn?

Our faith in the future growth of green industry grows daily. While the supply of oil, water and other commodities are becoming increasingly scarce, the world desperately needs – and is willing to pay for – solutions that maximize the efficient use of these resources. Climate change is for real. Even those in denial realize that the major governments of the world are coalescing around solutions to curb carbon emissions and promote clean energy sources.

Winslow has a significant amount of green investing experience and we have navigated downturns more than once in our 25-year history. Investing in the rapidly growing green economy has always required progressive thinking, a strong constitution, and a long-term time horizon. Our experience suggests that the best course for a green investor at times like these is prudent stock selection, patience, and focus. While we are in turbulent waters, we remain on a clear and steady course, and we believe that Winslow’s investment strategy can yield both financial and environmental returns for all stakeholders.

As always we invite your questions and comments, and we thank you for your continued commitment to green investing.

Sincerely,
Jackson Robinson
Portfolio Manager, Winslow Green Growth Fund

Matthew Patsky
Portfolio Manager, Winslow Green Solutions Fund

As of 9/30/08, the funds did not hold any of the securities mentioned. Fund holdings and sector allocations are subject to change at any time and are not recommendations to buy or sell any security. Current and future portfolio holdings are subject to risk.

In connection with the Winslow Green Mutual Funds, investors should call to request a prospectus that includes investment objectives, risks, fees, expenses and other information that they should read carefully and consider carefully before investing. Quasar Distributors, LLC, Distributor.

 

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