USA Swimming

June 2012

ABOUT FIRST WESTERN • A unique Western-based private bank offering integrated wealth management

services• Nine (9) locations throughout the western United States• As of January 2012, over $4 billion in assets under management, advice and

administration and over $630 million in bank assets• Inc. 500/5000’s fastest growing companies in 2008, 2009, and 2010, consistently

among the top ranked bank/bank holding company on the list• Best Places to Work – Denver Business Journal, 2008 finalist, Phoenix Business

Journal 2010 finalist• Fastest Growing Private Companies (Flight II) 2009-2010 Denver Business Journal --

#4• Who’s Lending? -- Denver Business Journal, 2010- # 1 bank with overall loan and

lease portfolio growth among Denver-based banks • Ranked as the #8 Denver-Area Trust Organization, based on the total Colorado

fiduciary assets, according to the Denver Business Journal • CoBIZ magazine’s Top Company 2010 Finalist• Recipient of Colorado Business Committee for the Arts Philanthropy Award 2011• Ranked as the #3 Denver-based Investment Manager by the Denver Business Journal,

2011

BIOGRAPHYKatherine Berke, CFP® Senior Vice President | Senior Portfolio Manager

Experience Katherine is a responsible for managing client relationships and developing and implementing custom financial plans. Ms. Berke has more than 17 years of professional experience, including an extensive background in comprehensive financial planning advisory services. Prior to joining First Western Trust, she headed her own financial planning firm where she specialized in wealth accumulation and management, retirement planning and retirement income distribution for her clients.

Credentials • MS degree in Management Science from the MIT, Sloan School of Business • BS degree in Computer and Management Science from Metropolitan State College of Denver • Carnegie Mellon University, Graduate School of Administration, eCommerce Program• Series 7 and Series 66 licenses • Certified Financial Planner®

Involvement • Board member of the Colorado Women’s Association of Financial Consultants • Board member of the Denver Business Series • Active member of the Financial Planning Association • Volunteer mentor for Junior Achievement’s “Business Week” program

OVERVIEW

• Have an investment committee appointed by the board of directors to include the LSC Treasurer.

• Have a written Investment Policy Statements (IPS) approved by the board of directors.

• Obtain professional advice at a reasonable cost. A written service agreement must clearly state how the advisor is compensated.

• Have a diversified portfolio to meet the IPS’s goals, objectives, and risk profile.

• Advisor must be free of any conflicts of interest (real or perceived) with members of the board of directors and investment committee.

I. Fundamentals of Investing

II. Features of a quality

investment process

III. What to look for in a

investment advisor

Objectives

LSC Investment Recommendations

FUNDAMENTALS OF INVESTING

0.10

1

10

100

1,000

$10,000

1926 1936 1946 1956 1966 1976 1986 1996 2006

$16,055

$2,982

$21$12

$93

Small Cap StocksCompound Annual Return: 12.1%

Large Cap stocksCompound Annual Return: 9.9%

Government Bonds Compound Annual Return: 5.5%

T-Bills Compound AnnualReturn: 3.6%

InflationCompound Annual Return: 3.0%

HISTORICAL GROWTH BY ASSET CLASS:1926-2010

Source: Ibbotson Associates. 3/1/2011.

Historically Large Cap U.S. Equities have provided superior long-term returns but . . .

See Disclosure Information at the end of this presentation which are an integral part of this presentation and each page of the presentation.

HISTORICAL VOLATILITY. . . the potential for higher returns comes with higher risk.

Time

Return V alues

-50.0%

60.0%

-45.0%

-40.0%

-35.0%

-30.0%

-25.0%

-20.0%

-15.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

50.0%

55.0%

15.1%

7.1%

Dec1926

Dec2010

Dec1930

Dec1935

Dec1940

Dec1945

Dec1950

Dec1955

Dec1960

Dec1965

Dec1970

Dec1975

Dec1980

Dec1985

Dec1990

Dec1995

Dec2000

Dec2005

IA SBBI S&P 500 TR USD IA SBBI US IT Gov t TR USD

Source: Ibbotson Associates. 3/1/2011.

Small stocks Large stocks Government bonds Treasury bills

-60

-30

0

30

60

90

120

150%

1-yearHolding period

5-year 20-year 1-year 5-year 20-year 1-year 5-year 20-year 1-year 5-year 20-year

Compound annual return:12.1% 9.9%

5.5% 3.6%

REDUCTION OF RISK OVER TIME1926–2010

Past performance is no guarantee of future results. Each bar shows the range of compound annual returns for each asset class over the period 1926–2010. This is for illustrative purposes only and not indicative of any investment. An investment cannot be made directly in an index. © 2011 Morningstar, Inc. All rights reserved. 3/1/2011

WHAT IS INVESTMENT RISK?

• Permanent Impairment of Capital

• Liquidity

• Inflation

PERMANENT IMPAIRMENT OF CAPITAL

• Business Failure• Counterparty• Fraud• Regulatory• Credit/Default• Interest Rate• Failed Trading

Strategies

LIQUIDITY RISK

• Regulatory• Leverage• Credit/Default• Equity Volatility• Counterparty

INFLATION

Inflation Cash S&P0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

3.9%4.4%

10.7%

Annual Returns: 1946-2010

DIVERSIFYING AWAY RISK

• Example of five equity funds

• Correlations

• Building an efficient portfolio

LARGE CAPGROWTH

16.71

BONDS

7.84

BEST PERFORMANCE

WEAKEST PERFORMANCE

Please note that this chart is based on past index performance and is not indicative of future results. Indexes are unmanaged and cannot be invested in directly. Index performance does not include fees and expenses an investor would normally incur when investing in a mutual fund. Diversification and strategic asset allocation do not assure profit or protect against loss in declining markets.

REAL ESTATE

-37.73

LARGE CAPGROWTH

-38.44

SMALL CAPGROWTH

-38.54

INT’L

-43.06

LARGE CAPVALUE

-36.85

LARGE CAP

-37.60

SMALL CAPVALUE

-28.92

BONDS

5.24

SMALL CAP

-33.79

INT’L

11.63

LARGE CAPGROWTH

38.71

SMALL CAP GROWTH

43.09

BONDS

10.26

SMALL CAP GROWTH

48.54

LARGE CAPGROWTH

23.12

LARGE CAPGROWTH

33.16

INT’L

20.33

INT’L

27.30

BONDS

11.63

BONDS

8.44

SMALL CAP VALUE

46.03

INT’L

20.70

LARGE CAPGROWTH

30.49

INT’L

39.17

BONDS

8.69

INT’L

-15.66

SMALL CAP GROWTH

1.23

SMALL CAP GROWTH

-9.23

SMALL CAP GROWTH

14.31

SMALL CAP GROWTH

11.26

SMALL CAP GROWTH

12.95

INT’L

-13.96

INT’L

6.36

LARGE CAPGROWTH

-22.42

LARGE CAPGROWTH

-20.42

LARGE CAPGROWTH

-27.89

LARGE CAPGROWTH

29.75

LARGE CAPGROWTH

6.30

BONDS

3.63

INT’L

2.06

SMALL CAP GROWTH

-22.43

INT’L

-21.21

SMALL CAP GROWTH

-30.26

BONDS

4.10

BONDS

4.34

20081996 1997 1998 1999 2000 2001 2002 2003 2004

SMALL CAP VALUE

4.71

INT’L

14.02

LARGE CAPGROWTH

5.26

BONDS

2.43

2005

SMALL CAPGROWTH

4.15

LARGE CAPVALUE

35.18

LARGE CAPVALUE

21.64

LARGE CAPVALUE

15.63

LARGE CAPVALUE

7.01

LARGE CAPVALUE

-15.52

LARGE CAPVALUE

-5.59

LARGE CAPVALUE

16.49

LARGE CAPVALUE

7.35

LARGE CAPVALUE

30.03

LARGE CAPVALUE

7.05

LARGE CAPVALUE

22.25

SMALL CAP GROWTH

13.35

2006

BONDS

4.33

LARGE CAPGROWTH

9.07

LARGE CAP

32.85

LARGE CAP

27.02

LARGE CAP

22.45

LARGE CAP

20.91

LARGE CAP

-7.79

LARGE CAP

-12.45

LARGE CAP

-21.65

LARGE CAP

29.89

LARGE CAP

11.40

LARGE CAP

6.27

LARGE CAP

15.46

SMALL CAP

47.25

SMALL CAP

21.26

SMALL CAP

2.49

SMALL CAP

18.33

SMALL CAP

22.36

SMALL CAP

-3.02

SMALL CAP

16.49

SMALL CAP

-20.49

SMALL CAP

-2.55

SMALL CAP

4.55

SMALL CAP

18.37

SMALL CAP VALUE

14.03

SMALL CAP VALUE

22.83

SMALL CAP VALUE

22.25

SMALL CAP VALUE

31.78

SMALL CAP VALUE

-11.43

SMALL CAP VALUE

21.37

BONDS

-0.82

BONDS

9.65

SMALL CAP VALUE

-6.45

SMALL CAP VALUE

-1.49

SMALL CAP VALUE

23.48

INT’L

26.86

REAL ESTATE

35.26

REAL ESTATE

26.35

REAL ESTATE

31.57

REAL ESTATE

13.93

REAL ESTATE

3.81

REAL ESTATE

37.14

REAL ESTATE

20.29

REAL ESTATE

-17.51

REAL ESTATE

-4.62

REAL ESTATE

12.15

REAL ESTATE

35.06

LARGE CAPVALUE

-0.17

SMALL CAP GROWTH

7.05

2007

BONDS

6.97

LARGE CAPGROWTH

11.81

LARGE CAP

5.77

SMALL CAP

-1.57

SMALL CAP VALUE

-9.78

REAL ESTATE

-15.69

INT’L

32.46

SMALL CAP GROWTH

34.47

BONDS

5.93

LARGE CAPGROWTH

37.21

2009

LARGE CAPVALUE

19.69

LARGE CAP

28.43

SMALL CAP

27.17

SMALL CAP VALUE

20.58

REAL ESTATE

27.99

SMALL CAP GROWTH

29.09

REAL ESTATE

27.95

SMALL CAP

26.85

SMALL CAP VALUE

24.50

LARGE CAP

16.10

LARGE CAPVALUE

15.51

INT’L

8.21

BONDS

6.54

2010

VALUE OF DIVERSIFICATION 1996-2011

LARGE CAPGROWTH

2.64

REAL ESTATE

8.28

2011

LARGE CAP

1.50

LARGE CAPVALUE

0.39

SMALL CAP GROWTH

-2.91

SMALL CAP

-4.18

SMALL CAP VALUE

-5.50

INT’L

-12.14

VALUE OF DIVERSIFICATION 1996-2011

Small Cap ValueRussell 2000®Value Index

Measures the performance of those Russell 2000® Index securities with lower price-to-book ratios and lower forecasted growth values, representative of US securities exhibiting value characteristics.

Small CapRussell 2000® Index

Measures the performance of the 2,000 smallest companies in the Russell 3000® Index, representative of the US small capitalization securities market.

Small Cap GrowthRussell 2000® Growth Index

Measures the performance of those Russell 2000® Index securities with higher price-to-book ratios and higher forecasted growth values, representative of US securities exhibiting growth characteristics.

Large CapRussell 1000® Index

Measures the performance of the 1,000 largest companies in the Russell 3000® Index, representative of the US large capitalization securities market.

Large Cap ValueRussell 1000®

Value Index

Measures the performance of those Russell 1000® Index securities with lower price-to-book ratios and lower forecasted growth values, representative of US securities exhibiting value characteristics.

Large Cap GrowthRussell 1000®

Growth Index

Measures the performance of those Russell 1000® Index securities with higher price-to-book ratios and higher forecasted growth values, representative of US securities exhibiting growth characteristics.

An index, with income reinvested, generally representative of intermediate-term government bonds, investment-grade corporate debt securities, and mortgage-backed securities.

BondsBarclays Capital U.S.

Aggregate Bond Index

InternationalMSCI® EAFE Index

An index, with dividends reinvested, representative of the securities markets of twenty developed market countries in Europe, Australasia, and the Far East.

Real EstateNAREIT Equity

REIT Index

An index, with dividends reinvested, representative of tax-qualified REITS listed on the New York Stock Exchange, American Stock Exchange, and the NASDAQ National Market System.

SOURCES:

MORE FUNDS DO NOT ALWAYS MEAN GREATER DIVERSIFICATIONIdentifying potential security overlap

Equity portfolio BDeep-value Core-value Core Core-growth High-growth

Mic

roSm

all

Mid

Larg

eG

iant

Equity portfolio ADeep-value Core-value Core Core-growth High-growth

Mic

roSm

all

Mid

Larg

eG

iant

Source: Morningstar, 2011.

EFFICIENT FRONTIER

• The theoretical maximum return for a portfolio of risky assets for a given level of “risk”.

• The theoretical minimum “risk” for a portfolio of risky assets for a given level of return.

• Frontier incorporates assumptions about risk and return that can be derived from historical data or developed using other methods.

CORRELATIONS: 1926-2010

Large Cap

Mid CapSmall Cap

IntlEmerg. Mkts

REITs CmdtyReal

ReturnHigh Yield

Corp BC AggUS IT Govt

Cash

Large Cap 1.00 0.91 0.83 0.61 0.66 0.57 0.27 0.28 0.65 0.26 0.24 0.08 (0.01) Mid Cap 1.00 0.86 0.62 0.69 0.62 0.32 0.30 0.60 0.29 0.19 0.03 0.01 Small Cap 1.00 0.50 0.65 0.64 0.25 0.23 0.70 0.16 0.12 0.02 (0.04) Intl 1.00 0.68 0.45 0.40 0.29 0.45 0.24 0.16 0.04 (0.03) Emerg. Mkts 1.00 0.42 0.39 0.24 0.55 0.20 0.01 (0.18) (0.04) REITs 1.00 0.23 0.11 0.54 0.23 0.17 0.03 (0.04) Cmdty 1.00 0.37 0.29 0.22 0.03 (0.06) - Real Return 1.00 0.23 0.23 0.05 (0.04) 0.23 High Yield 1.00 0.51 0.48 0.23 - Corporates 1.00 0.76 0.66 0.06 BC Agg 1.00 0.93 0.13 US IT Govt 1.00 0.20 Cash 1.00

Traditional Equities REITs, Commodities,Real Return

Bonds

STOCKS AND BONDS: RISK VERSUS RETURN

Maximum risk portfolio:100% Stocks

60% Stocks, 40% Bonds

50% Stocks, 50% Bonds

100% Bonds

Minimum risk portfolio:28% Stocks, 72% Bonds

80% Stocks, 20% Bonds

Return

Risk

EQUITY RETURNS An eventful three years!

• Staying the course through 2008 was challenging, but rewarding for investors who persevered• Average calendar year return of 12%• Note the distribution of returns to the right of 0%• Trying to time the market to experience only positive years is very challenging

Calendar Year S&P 500 Returns: 1926-2010

Rates of Return

200620041993 2009

2000 1988 2003 19971990 2007 1986 1999 19951981 2005 1979 1998 19911977 1994 1972 1996 19891969 1992 1971 1983 19851962 1987 1968 1982 19801953 1984 1965 1976 19751946 1978 1964 1967 1955

2001 1940 1970 1959 1963 19501973 1939 1960 1952 1961 1945

2002 1966 1934 1956 1949 1951 1938 19582008 1974 1957 1932 1948 1944 1943 1936 1935 1954

1931 1937 1930 1941 1929 1947 1926 1942 1927 1928 1933

-50% -40% -30% -20% -10% x 0% 10% 20% 30% 40% 50% 60%

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.

2010

FEATURES OF A QUALITY INVESTMENT PROCESS

INVESTMENT PROCESS

Asset allocation

Portfolio construction

Implementation

Thorough understanding of capital market behavior

Consideration of the available asset classes

Well defined objectives and financial goals

Effectively capture intended asset class exposure

Focus on consistent return drivers

Management of unrewarded risks

Avoid areas of performance slippage

Managed explicit and implicit costs

Utilize unique insights to add value

Create and Implement an Investment Policy Statement

Managerresearch

Broad coverage of available opportunities

Access and perspective

Combination of qualitative and quantitative analysis

ASSET ALLOCATION

• Why Do We Do It?

• What Is It?

• How Do We Do It?

BROAD ASSET ALLOCATION STOCK TO BOND RATIO

Equities51%

Fixed Income44%

Real Estate4%

Cash1%

EQUITY ASSET ALLOCATION

Fixed Income44%

Real Estate4%Cash

1%US Large Cap Equi-

ties19%

US Small Cap Equi-ties6%

International Developed

19%Emerging Markets

7%

FIXED INCOME ASSET ALLOCATION

Equities51%

Real Estate4%

Cash1%

Investment Grade Fixed Income

42%

High Yield Bonds2%

MANAGER SELECTION PROCESS

Universe

Initial Screen

Quantitative Analysis

Qualitative Analysis

Final Selection

Over 135,000 open-ended funds and over 10,000 separately managed accounts within the Morningstar Direct universe.

Investment category, asset size of product, manager tenure, expense ratio & consistency to style.

Rank based on performance parameters (Risk-adjusted return, upside/downside capture, category rank, consistency of performance.

Analyze investment philosophy & style, manager compensation structure, firm reputation.

Final selection is determined by the Investment Policy Committee, taking into account the criteria listed above.

MULTI MANAGER No one is best at everything

Source: Beijing 2008 Olympic Games

0

5

10

15

20

25

30

35

40

% O

utpe

rfor

man

ce b

y In

divi

dual

Eve

nt C

ham

pion

Event 100m Long Jump

Shot Put

High Jump

400m 110m Hurdles

Discus Pole Vault

Javelin 1500m

Olympic Champion 8.34m9.69s 21.51m 2.36m 43.75s 12.93s 68.82m 5.96m 90.57m 3:32.94

Decathlon Champion 7.78m10.44s 16.27m 1.99m 48.92s 13.93s 53.79m 70.97m 5:06.595.00m

RUSSELL BY THE NUMBERS

For the fifth time in six years, Russell has been recognized as the “Best Multi-Manager of the Year” at the Global Pensions Awards.

Best Multi-Manager of the Year

Russell has one of the most effective due diligence practices in theconsulting industry, according to a 2012 FundFire survey of more than50 consultant relations specialists.

Voted Top inDue Diligence

Unless otherwise indicated, all data is as of December 31, 2011. * As of 3/31/2012The awards shown here do not pertain to specific mutual funds referenced in this presentation.**Global Investor “Top Marks” categories include: project management, operational efficiency, pre trade analysis, trading / execution, risk management, reporting during transition, post trade analysis, accuracy of pre trade analysis, transparency of fees and costs, relationship management, overall service.

Russell received “Top Marks” in every category* in 2011 – for the sixth year in a row – in the transition management survey conducted by Global Investor magazine.**

Received Top MarksIn Every Category

29

› U.S. $155 billion assets under management*

› 1,900 associates globally› 24 offices worldwide

› Over 6,000 investment products researched› As a consultant to some of the largest pools of

capital in the world, Russell has over $2 trillion in assets under advisement (as of 12/31/2011).

RUSSELL MONEY MANAGERSGrowth Market-oriented ValueBlackRock Capital Management, Inc.Columbus Circle InvestorsSustainable Growth Advisers, LP

Lazard Asset Management, LLCSuffolk Capital Management, LLC

Institutional Capital, LLCSchneider Capital Management CorporationSnow Capital Management L.P.

Aronson+Johnson+Ortiz, L.P.INTECH Investment Management, LLCJacobs Levy Equity Management, Inc.Numeric Investors, LLCPanAgora Asset Management, Inc.

EAM Investors, LLCFalcon Point Capital, LLCNext Century Growth Investors, LLCRanger Investment Management, L.P.

ClariVest Asset Management, LLCPENN Capital Management Company, Inc.

Chartwell Investment PartnersDePrince, Race & Zollo, Inc.Huber Capital Management LLCJacobs Levy Equity Management, Inc.Signia Capital Management, LLC

Axiom International Investors, LLCDriehaus Capital Management, LLCMarsico Capital Management, LLCWilliam Blair & Company, LLCAQR Capital Management, LLCMFS Institutional Advisors, Inc.

AQR Capital Management, LLCMFS Institutional Advisors, Inc.

del Rey Global Investors, LLCMondrian Investment Partners LimitedPzena Investment Management, LLC

UBS Global Asset Management(Americas), Inc.

Arrowstreet Capital, Limited PartnershipGenesis Asset Managers, LLPHarding Loevner, LPVictoria 1522 Investments, LP

AllianceBernstein, L.P.Delaware Management Company (a series of Delaware Management Business Trust)

Global Market OrientedAEW Capital Management, L.P.Cohen & Steers Capital Management, Inc.INVESCO Advisers, Inc., through INVESCO Real Estate Division

Russell U.S. Core Equity

Russell U.S. Quantitative Equity

Russell U.S. Small Cap Equity1

Russell Int’l Developed Equity

Russell Emerging Markets

Russell Global Real Estate Securities

Money managers listed are current as of 03/31/12. Subject to the fund's Board approval, Russell has the right to engage or terminate a money manager at any time and without a shareholder vote, based on an exemptive order from the Securities and Exchange Commission. Investments in the Funds are not deposits with or other liabilities of any of the money managers and are subject to investment risk, including loss of income and principal invested and possible delays in payment of redemption proceeds. The money managers do not guarantee the performance of any Fund or any particular rate of return.1 Small cap investments are subject to considerable price fluctuations and are more volatile than large company stocks.

PORTFOLIO CONSTRUCTION SUMMARY

Manager selection

• Primary source of excess return• “Best of breed” security pickers• Specific opinions for individual

investment managers• Asset class specialists

Portfolio construction

• Source of improved consistency• Limit uncompensated risk• Diverse and complementary

sources of excess return• Low return correlations*

*Correlation is a statistical measure of how two variables move in relation to each other.

CUSTOMIZING A PORTFOLIO

Asset AllocationImplementation

Stocks Bonds Cash Management Alternatives

Risk Management

Manager Selection

Investment Grade TaxablesHigh Yield

MuniGlobal

Small CapMid Cap

Large CapMajor Foreign Markets

Emerging Markets

CDARsMoney Market

CommoditiesREITS

Balanced Portfolio

WHAT TO LOOK FOR IN AN INVESTMENT ADVISOR

PORTFOLIO MANAGEMENT OBJECTIVES

• Manage portfolio strategies that effectively represent asset classes and risk profiles

• Captures value added from research inputs

• Combine premier managers with complementary investment portfolios

• Manage risks that offer no long-term rewards

• Generate above-average returns with long-term consistency

Core Growth

EarningsMomentum

CoreNeutral

CoreValue

LowP/E

High Yield

ConsistentGrowth

Determine goals and objectives

Develop optimal asset allocation to achieve goals and objectives

Actively manage investment portfolioFiduciary Oversight

Monitor and update goals and objectives

FIRST WESTERN APPROACH

FIRST WESTERN FEE STRUCTURE

LSC Investment Size Solution Fee Structure Fees IPS

$100-$250,000 Investment Mgmt Fee .50% Stand aloneAverage LifePoints Fund 1.03%Total Approx. Fee 1.53%

$250-$750,000 Investment Mgmt Fee .75% MasterAverage Fund Expense .77%Total Approx. Fee 1.52%

Over $750,000 Investment Mgmt Fee .75% Stand aloneAverage Fund Expense .77%Total Approx. Fee 1.52%

QUESTIONS?