WELCOME TO CABOT’S25TH ANNUAL INVESTMENT & WEALTH MANAGEMENT CONFERENCE

Your interests and goals always come first.

Cabot’s Year in Review

DENNIS WASSUNG, JR., CFA®

Portfolio Manager

2014 By Asset Class

2014 thru 9/23/14

-6%

-4%

-2%

0%

2%

4%

6%

8%

10%

12%

14%

16%

2014 By Country: Top & Bottom 5

2014 thru 9/23/14

-40% -20% 0% 20% 40% 60% 80% 100% 120%

ARGENTINA

EGYPT

INDIA

THAILAND

TURKEY

UNITED STATES

GERMANY

SOUTH KOREA

JAPAN

HUNGARY

RUSSIA

2014 By Sector

2014 thru 9/23/14

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

U.S. Equity Market (5-Year Bull Market)

3/9/09 to 9/23/14

0%

50%

100%

150%

200%

250%

3/9/2009 3/9/2010 3/9/2011 3/9/2012 3/9/2013 3/9/2014

S&P 500

U.S. Equity Market (Last 10 Years)

2004 to Today

-40%

-20%

0%

20%

40%

60%

80%

100%

120%

140%

1/2/2004 1/2/2005 1/2/2006 1/2/2007 1/2/2008 1/2/2009 1/2/2010 1/2/2011 1/2/2012 1/2/2013 1/2/2014

S&P 500

U.S. Equity Market (Last 15 Years)

1999 to Today

-60%

-40%

-20%

0%

20%

40%

60%

80%

100%

120%

140%

S&P 500

2014 U.S. Equity Market

2014 thru 9/23/14

-8%

-6%

-4%

-2%

0%

2%

4%

6%

8%

10%

12%

S&P 500

Stocks vs. Bonds (Last 5 Years)

9/25/09 to 9/19/14

-20%

0%

20%

40%

60%

80%

100%

120%

9/25/2009 9/25/2010 9/25/2011 9/25/2012 9/25/2013

Stocks Bonds

Stocks vs. Bonds in 2014

2014 through 9/23/14

-8%

-6%

-4%

-2%

0%

2%

4%

6%

8%

10%

12%

Stocks Bonds

Equity Markets Still Have Long-Term Value:10-Year Treasury Yield Is Higher, But Still Historically Low

2004 to Today

0%

1%

2%

3%

4%

5%

6%

S&P 500 Dividend Yield 10-Year Treasury Yield

Equity Market Valuation Not Stretched:Stocks Are Not Expensive Historically, In Expansion Periods

Equity Market Valuation Not Stretched:Stocks Are Not Expensive Historically, In Expansion Periods

Equity Markets Still Have Long-Term Value:10-Year Rolling Returns Have Recovered…But Still Favor Stocks

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

Dec

-10

Dec

-15

Dec

-20

Dec

-25

Dec

-30

Dec

-35

Dec

-40

Dec

-45

Dec

-50

Dec

-55

Dec

-60

Dec

-65

Dec

-70

Dec

-75

Dec

-80

Dec

-85

Dec

-90

Dec

-95

Dec

-00

Dec

-05

Dec

-10

Rolling 10-Year Annualized Total Return of the Dow Jones Industrial Average (1910 - Present)

One of the Classic“Stock Market Rules”

The Stock Market climbs a “Wall of Worry”

…and it always has something to worry about!

State of CabotPRESENTED BY ROBERT LUTTS

PRESIDENT, CHIEF INVESTMENT OFFICER

State of Cabot Cabot’s 31st Year – Great Opportunities Ahead

Cabot Technology Platform Expanding – Best Practices Digital Phone System - Thinking Phones – Always Available Software Integration with Schwab – Salesforce.com and Custodians Hosted Networks – Cloud Computing Hardware Upgrades – Security Backup Generator Installed – All Tested Green Energy Efficiency Efforts – Roof Solar Project (216 Essex, 30 Federal)

Staff Education – High Investment – Expanding Conferences, Seminars, World Travel

Continue to Seek To Upgrade our Skills and Abilities

Core Belief: The “Good” in Man Always Overcomes the “Evil”

Core Belief: Knowledge Creates Progress and Value

Core Belief: Innovation Leads to Great Value Creation

Core Belief: Wealth Management - Process is Critical “Investment management” is one of the (important) components within “wealth management”

Wealth Management: Investment management

Asset allocation (equities, fixed income, international securities, alternative assets, etc.)

Investment choices within each asset class Retirement planning Tax planning Estate planning Risk management (planning for catastrophic risks including disability,

death, long-term care, personal liability, personal property)

State of Cabot Cabot Investment Management

Equity Research – Team Effort

Cabot’s knowledge and Use of New ETFs Expanding/Equity Sectors

Fixed Income – Use of New Fixed-Income products expanding

Wealth Management Team – Best Practices Seminars and further education

Advanced Skills– Taxes, Estate Planning and Insurance work

Staff Conferences, Seminars, World Travel

2 1 6 E S S E X ST R E E TS A L E M , M A 0 1 9 7 0

( 9 7 8 ) 7 4 5 - 9 2 3 3( 8 0 0 ) 8 8 8 - M G M T

w w w. e C a b o t . c o mi n f o @ e C a b o t . c o m

Session Presentations begin promptly at 10:00 a.m.

Thank you.