1. your vision our insight F IRST W ESTERN T RUST B ANK Investment Pools – Best Practices Guy W. Holman, CPA, CFP® Sr. Vice President – Portfolio Manager 5460 S. Quebec St., Suite 200 Greenwood Village, CO 80111

2. your vision our insight INVESTMENT OBJECTIVE Meet Financial Goals with Appropriate Financial Vehicles Extremes: Pay as You Go Endowments

3. your vision our insight U NDERSTANDING I NVESTMENTS Key Concepts –Time Horizon –Diversification/Asset Allocation –Risk and Reward –Discipline

4. your vision our insight TIME HORIZON Financial Vehicles each Have Unique Characteristics Short-Term (< 1 Year) – Bank Deposits, Money Market, CDs Intermediate Term (1-3 Years) – CDs, Fixed Income Long Term (> 3 Years) – Diversified Portfolio including Equities, Risk Assets

5. your vision our insight DIVERSIFICATION/ASSET ALLOCATION Determinants Beyond Time Horizon: Liquidity Needs Income Needs Risk Tolerance –Emotional (Risk Appetite) –Economic Capacity

6. your vision our insight I NVESTMENT P RINCIPLES Different investment vehicles –Stocks, Bonds, Real Estate, Cash Equivalents Varying levels of risk associated with different investments Reduce risk with Asset Allocation and Diversification

7. your vision our insight R ISK A ND R ETURN Cash –Stable Value Fund Bonds –Government –Corporate Real Estate –REITS Stocks –Large Companies –Mid & Small Companies –International Companies Lower Risk Higher Risk

8. your vision our insight M ANAGING R ISK Asset allocation takes diversification a step further The Impact of Various Factors on the Variability of Investment Results Source: Financial Advisors Study, 1991; Confirmed by Ibbotson Associates, 1999. No investment strategy, such as asset allocation, can guarantee a profit or protect against loss in periods of declining values. Study results are based on historical data and past performance is not a guarantee of future results.

9. your vision our insight T HE “L OST D ECADE ” OF I NVESTING ? Diversification and compounding returns helped

10. your vision our insight T RACKING I NDEX P ORTFOLIO R ECOVERY Did staying the course make sense? This hypothetical example is for illustration only and is not intended to reflect the return of any actual investment. The 60/40 Balanced Index portfolio does not reflect a deduction for expenses or fees, had it done so, returns would have been lower. Index returns represent past performance and are not a guarantee of future performance. Oct-07 Nov-07Dec-07 Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08 Aug-08Sep-08 Oct-08 Nov-08Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09Sep-09 Oct-09 Nov-09Dec-09 Cash after Sept 08Treasuries after Sept 0860/40 Balanced Portfolio $50,000 $60,000 $70,000 $80,000 $90,000 $100,000 $110,000 Portfolio Value ($) US Equity Market Peak October 9, 2007 March 9, 2009 US Equity Market Low Sept 14, 2008 Lehman Brothers Bankruptcy Mar 14, 2008 JPMorgan purchases Bear Stearns July 11, 2008 Oil closes at record high of $147 barrel Nov 21, 2008 2008 Market Low May 29, 2009 US Equity market turns positive for 2009 Feb 17, 2009 Obama signs $787b stimulus Mar 18, 2009 Fed plan to buy up to $1 trillion in treasuries and mortgages Returns Oct 08 - Dec 09 US Equity -0.9% Non-US Equity +10.9% US Bonds +10.8% Treasuries +4.9% Cash +0.3% Sept 30, 2008 Three options: 1) 60/40 stay the course 2) Move to 100% Cash 3) Move to 100% Treasuries Portfolio Values on Dec 31, 2009 60/40 Balanced Portfolio: $92,771 Cash Portfolio: $85,353 Treasuries: $89,213 Treasuries: BC Treasury Index, Cash: BC 1-3 Month T-bill, 60/40: 40% Russell 3000, 20% Russell Global xUS Equity Index, 40% BC Aggregate Index

11. your vision our insight H ISTORICAL E QUITY R ETURNS  After 2008 and early 2009, who would have believed such a strong year for equities?  Average calendar year return +11.8%  Note the distribution of returns to the right of 0%  Over time, it is extremely difficult to time the market to avoid years like 2008 and be invested to enjoy years like 2009 Indexes are unmanaged and cannot be invested in directly. Returns represent past performance, are not a guarantee of future performance, and are not indicative of any specific investment.

12. your vision our insight M AKING THE I NVESTMENT D ECISION Rules of the Road Have Not Changed Diversify Take risk appropriately to your time horizon Stay disciplined - respond to your plan AND avoid emotional reactions to news of the day Make investment changes when your situation or needs change

13. your vision our insight INVESTMENT SOLUTIONS Investment Solution Management Solution Reason Investment Portfolio - $100,000 - $250,000 Single Style-Allocation Fund Frank Russell CompanyLower cost LifePoints FundsGreater diversification Investment Portfolio - $250,000 - $750,000 US Swim Asset Allocation Frank Russell CompanyMaster IPS – lower cost Institutional Funds Investment Portfolio – Over $750,000 Customized Asset Allocation Frank Russell Company Customized IPS FundsInstitutional pricing Investment Portfolio < $100,000 Bank Deposits, CDs

14. your vision our insight Q UESTIONS