Atlas Capital Advisors provides wealth management services including passive index investing with a focus on minimizing costs, as well as active strategies pursuing factors like value, momentum, and market anomalies. Their fixed income platform emphasizes strategic asset allocation and inflation hedging over credit ratings, while their equity platform uses a "core satellite" approach combining passive index investing with strategies targeting persistent market factors. They aim to add value through factor exposures while controlling transaction costs and taxes.

1. Atlas Capital Advisors LLCInvestment Platform

2. Atlas Capital Advisors – Where we fit in wealth management landscapeDO IT YOURSELFTime

3. Expertise

4. Opportunity CostHIRE A THIRD PARTYBROKERAGEFirm first, then client

5. Transaction model

6. Proprietary products

7. High fees

8. Custodial riskREGISTERED INVESTMENT ADVISOR (RIA)PASSIVE MANAGEMENTIndex approach

9. Focus on Asset Allocation

10. Low cost

11. Superior performance

12. Tax efficientACTIVE MANAGEMENTManager selection

13. Stock picker

14. High cost

15. Poor performance vs. benchmarks

16. Not tax efficientAtlas Capital Advisors LLCFixed Income Platform

17. 3Successful Fixed Income Platforms – Focus on both strategy + executionStrategy Asset class and risk / return profiles Inflationary risk Credit analysis Systematic market anomalies Tax efficiencyYield curve strategy= 80% Asset AllocationExecution Implied forward rates New issue bias Two sided pricingFor secondary= 20% Asset Acquisition

18. 4Fixed Income Risk – Strategic ViewToday’s fixed income market currently under prices inflationary risk and over prices credit spreads and legislative tax riskOverweight TIPSOverweight MunisUnderweight Nominal Government Bonds

19. 5Sample Fixed Income Portfolio – Conservative Allocation

20. Muni Bonds – Credit Ratings vs. Corporate BondsRatings agencies use a double standard in rating municipal bond debtThe rating agencies own studies show governmental, or municipal, issuers default much less than corporate issuers.Municipal bonds rated Baa by Moody’s have experienced a default rate of only 0.13 percent, while corporate bonds rated Aaa by Moody’s have defaulted at four times that rate, or 0.52 percent.Corporate bonds rated AAA by S&P have defaulted at almost twice the rate of municipal bonds rated BBB (0.60 percent and 0.32 percent, respectively). Of all general obligation municipal bonds rated by Moody’s between 1970 and 2006, only one issuer defaulted.For a tax-backed bond rated BBB or better by S&P, the likelihood of default over a 20-year period is only 0.03 percent.

21. The steepness of the municipal curve implies a 70bps increase in 1 year municipal rates per year over the next 5 yearsMuni Bonds – Term Structure

22. Corporate Bonds - focus on cash to CDS Basis not credit ratings

23. Corporate Bonds – Altman Z score to synthesize ratio analysis

24. Breakevens on Treasury Inflation Protected Bonds (TIPS) show market under pricing inflation risk10TIPS tend to be less volatile than nominal bonds due to their adjustment to inflation expectationsBreakeven rates today imply a average of 2% inflation rate over the next 10 years

25. 11ETF v. Physical Bond Strategy – Best choice depends of portfolio size and holding period ETF is priced at a premium over underlying asset value

26. ETFs don’t participate in new issue market (-20bps)

27. Bond ‘indexing’ not applicable to efficient markets in same way as equities+ETFs have better liquidly on exit from position (+.5%)

28. 12Fixed Income Platform Execution – The wire house v. Atlas modelWire House ModelAtlas ModelSyndicate Desk New IssueDealer InventoryClient Account$100$100ManagementFee$101AtlasBond Trader“Sales credit”$103Broker$103 + commissionClient

29. Bond Mark Up Example

30. Atlas Capital Advisors LLCEquity Platform

31. Atlas Capital Equity Strategy ‘Core Satellite’15

32. Atlas Capital 2009 Q4 Equity Allocations16

33. Sector and Geography Historical Valuations17

34. Atlas manages its portfolios in a passive, index based mannerPortfolios are constructed using a market capitalization based index methodologyPortfolio turnover is lowAtlas adds value beyond index returns by capturing persistent market anomaliesValue over GrowthMomentumAtlas believes that transactions costs have a large impact on performance over timeCommissions are a relatively small portion of costsMarket impact is a larger portionTax impacts are the highest cost and almost completely ignored by most equity managers because performance is reported pre taxAtlas Capital Core Equity Strategy18Source: Standard and Poor’s SPIVA study

35. Value over Growth Portfolios 1927 - 200919

36. Momentum Portfolios 1929 - 200920

37. Long/Short Factor Portfolios 1929 - 200921SMB = Small Cap – Large CapHML = Value – GrowthWML = High Momentum – Low MomentumRm-Rf = Market return – Risk Free RateRf = Risk Free Rate

38. Combination Strategy of Value and Momentum22 Transaction costs

39. Tax cost

40. Benchmark risk

41. Management Fee23Private Wealth ManagementCorporate AdvisoryJonathan Tunney CFA

42. Chartered Financial Analyst

43. Director of Currency Risk Management at Hewlett Packard

44. BA, Stanford University

45. MBA, Andersen Graduate School of Business at UCLA

46. John Baker

47. Senior Banker at Deutsche Bank and Hambrecht & Quist

48. BA, Williams College

49. MBA, Andersen Graduate School of Business at UCLA

50. Tony Trousset

51. Managing Director, Co-Head of West Coast Technology Group at Lehman Brothers

52. Managing Director, Global Head of Software Investment Banking at UBS

53. Over 15 years of investment banking experience

54. BA and MA, Stanford University

55. Andrew Zurn

56. Senior Banker at Deutsche Bank

57. CFO of KeepMedia, a Louis Borders company

58. BS, Stanford UniversityAtlas Capital Advisors Professionals