The document proposes bringing the asset management industry to Denver by leveraging the region's existing financial services sector, educated workforce, and physical and intellectual capital. It notes that the Rocky Mountain region has a large financial sector concentrated in areas like banking, insurance, and real estate. The region also has a highly educated population and lower costs of living compared to other major cities, offering advantages to grow the asset management industry by providing investment jobs, increasing wealth, and creating spin-off support jobs. The asset management industry manages money for clients across many global market segments and investment vehicle types.

1. GALT’S GULCH REFERENDUM
BRING THE ASSET MANAGEMENT INDUSTRY TO DENVER
“Colorado has an Asset Management backbone that if nurtured can be beneficiary
of the vast new wealth, jobs, resources and intellectual capital over the next two decades.”
WHY DENVER WANTS AN ASSETMANGEMENT INDUSTRY
MSA LEVERAGE
INVESTMENT LEVERAGE LEVERAGE
OCCUPATIONAL LOCAL ASSETS PHYS. &
WAGES JOBS TRICKELE DOWN EFFECT
SALERIES ‘09 AVG. INTELLECTUAL CAP.
• The ‘09 average • Financial Analysts • Current Finance • AM workers are higher • Strong correlation to quant
annual salary for $85,270 Services footprint: educated than average business like aerospace,
investment workers in • Securities, 11,150 companies, • Higher earners than the biotech, physicist
the 9-county region was Commodities, & • AM Industry creates service
87,460 Total national avg. 85K
$147,450, compared to Financial Services jobs in legal, real estate, sales &
the national average of Sales Agents Employees, 24K in • 15% vacancy in Class-A distribution technology
$168,030. $71,940 Finance buildings in Denver healthcare telecom accounting
ROCKY MOUNTAIN INDEX vs. S&P
TOTAL % GDP 27% 27% 6% 4% 14% 7% 12% 4% 100%
SECTOR ALLOCATION % AZ CO ID MT NV NM UT WY RM INDEX S&P500 MSCI EAFE MSCI EM
INFO. TECHNOLOGY 1% 3% 1% 1% 1% 1% 2% 1% 1.7% 18% 6% 13%
FINANCIALS 28% 23% 21% 21% 26% 20% 26% 12% 24.4% 16% 25% 25%
HEALTHCARE 9% 7% 9% 11% 6% 9% 7% 4% 7.7% 12% 9% 1%
CONSUMER STAPLES 4% 4% 3% 4% 15% 4% 3% 3% 5.2% 11% 10% 7%
ENERGY 2% 4% 2% 6% 4% 8% 3% 39% 14.2% 11% 7% 14%
INDUSTRIALS 23% 26% 28% 25% 24% 27% 23% 18% 14.9% 11% 12% 7%
CONSUMER 16% 13% 17% 16% 14% 14% 14% 11% 14.4% 10% 10% 7%
DISCRETIONARY
UTILITIES 3% 2% 2% 4% 2% 2% 2% 3% 2.1% 4% 5% 4%
MATERIALS 9% 8% 12% 7% 5% 7% 13% 7% 8.5% 4% 10% 14%
TELECOMMUNICATIONS 2% 7.0% 1.5% 2.0% 1.4% 2.4% 1.7% 1% 3.2% 3% 6% 8%
OTHER 4% 4% 4% 4% 3% 4% 5% 2% 3.7%
TOTAL 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
FINANCIAL SECTOR INCLUDING FINANCIAL SERVICES AND REAL ESTATE
[BREAKOUT PER STATE]
FINANCIALS + INSURANCE & REAL ESTATE AZ CO ID MT NV NM UT WY
FED RESERVE BANKS, CREDIT INTERM. & RELATED SERVICES 10% 8% 6.3% 6.6% 10.7% 5.1% 11.7% 2.9%
SECURITIES, COMMODITY CONTRACTS, INVESTMENTS
INSURANCE CARRIERS & RELATED ACTIVITIES
FUNDS, TRUSTS, & OTHER FINANCIAL VEHICLES
REAL ESTATE, RENTALS & LEASING 18.0% 15% 15.0% 14.6% 15.4% 15.0% 14.5% 9.6%
RENTAL & LEASE SER. & LESSORS OF INTANGIBLE ASSETS
TOTAL 28% 23% 21% 21% 26% 20% 26% 12%
ROCKY MOUNTAIN REGION
GSP GSP GSP GSP CITIES FORBES LAND DENSITY CHANGE %
POP[#]
[PRIVATE] [GOVT.] [TOTAL] [CAPITA] [100K+] [RICHEST] [SQ MILES] [PPL/SQ MI] [PAST 10 YRS]
ARIZONA 6,595,778 219,668 34,431 254,099 $38,524 9 5 113,635 58.04 28.6%
COLORADO 5,024,748 220,572 32,086 252,658 $50,282 11 6 104,094 48.27 16.8%
IDAHO 1,545,801 46,039 7,967 54,006 $34,937 1 1 83,570 18.50 19.5%
MONTANA 974,989 30,028 5,926 35,954 $36,876 1 4 147,042 6.63 8.10%
NEVADA 2,643,085 112,573 13,930 126,503 $47,861 8 8 110,561 23.91 32.3%
N. MEXICO 2,009,671 59,379 15,423 74,802 $37,221 1 0 121,589 16.53 10.50%
UTAH 2,784,572 97,049 15,893 112,942 $40,559 4 0 84,899 32.80 24.70%
WYOMING 544,270 32,511 5,033 37,544 $68,980 0 4 97,814 5.56 10.20%
RM INDEX 22,122,914 817,819 130,689 948,508 $42,874 35 28 863,204 25.63 18.8%
WHAT IS THE ASSET MANAGEMENT INDUSTRY?
= THE PROFESSIONAL INDUSTRY THAT MANAGES OTHER PEOPLE’S MONEY.
TYPES OF INVESTABLE MARKETS TYPES OF AM STRUCTURES TYPES OF AM JOB FUNCTIONS
 EQUITIES  MUTUAL FUNDS  RESEARCH
 FIXED INCOME  LONG ONLY TRADITIONAL FIRMS  PORTFOLIO CONSTUCTION
 FOREIGN EXCHANGE  HEDGE FUNDS  OPERATIONS
 ENERGY  PRIVATE EQUITY FUNDS  TRADING
 PRECIOUS METALS  VENTURE CAPITAL FUNDS  SALES & DISTRIBUTION
 AGRICULTURE  REAL ESTATE

2. GALT’S GULCH REFERENDUM
BRING THE ASSET MANAGEMENT INDUSTRY TO DENVER
THE INVESTMENT COMMUNITY
The investments sub-cluster consists of 15, 6-digit North American Industry Classification System [NAICS] codes including companies involved in
securities, brokerage, real estate investment trusts, & holding companies. The 9-county region ranked 6th out of the 50 largest metro areas in
investments employment concentration in ‘10. With direct employment of 23,250 investment workers, the region ranked 12th in absolute
employment. About 84% of Colorado’s investments sub-cluster employees worked in the region in ‘10.
9 – COUNTY REGION UNITED STATES
Direct Employment: ‘10 23,250 1,070,500
Number of Direct Companies: ‘10 4,500 213,380
One-Year Direct Employment Growth: ‘09-‘10 0.0% -1.7%
Five-Year Direct Employment Growth: ‘05-‘10 9.7% 4.2%
Avg. Annual Direct Employment Growth: ‘05-‘10 1.9% 0.8%
Direct Employment Concentration 1.6% 0.9%
COST STRUCTURES IN ASSET MANAGEMENT
SUBSECTOR INDUSTRY FEES BY (AUM) ASSETS UNDER MANAGEMENT – THE INDUSTRY VARIES FROM 5BP – 300 BPS
FEE 500M [PER
MGMT 5B [PER 1K] 50B [PER 1MM] 500B [PER 1MM] 1TRILL [PER 1MM] 5 TRILL [PER 1MM]
[CONS] 1K]
ADMIN 0.05% $250 $2,500 $25 $500 $250 $2,500
MUTUAL FUNDS 1.00% $5,000 $50,000 $500 $10,000 $5,000 $50,000
LONG ONLY 0.75% $3,750 $37,500 $ 375 $3,750 $3,750 $37,500
HEDGE FUNDS 1.50% $7,500 $75,000 $750 $15,000 $ 7,500 $75,000
PRIVATE EQ 2.00% $10,000 $100,000 $1,000 $20,000 $10,000 $100,000
VENTURE CAP 2.00% $10,000 $100,000 $1,000 $20,000 $10,000 $100,000
REAL ESTATE 2.00% $10,000 $100,000 $1,000 $20,000 $10,000 $100,000
ETF FIRMS - - - - - - -
TOTAL $46,500 $465,000 $4,650 $93,000 $46,500 $465,000
TAX RATE 4.63% $2,153 $21,530 $216 $2,153 $4,306 $21,530
WHAT LURES ASSET MANAGEMENT FIRMS
TRIGGERS INCENTIVES ACTIONS
• Tax Arbitrage & or incentives • Work on building • Reinvestment incentive - 1031 exchanges
• Regulation or special Colorado Structure research & resources for • SBIC
• Alliance of current firms & vendors companies to come • Pension fund mandates towards local managers
• Hedge Funds Hotels • Seed funds
through
• Ability to raise capital from Institutional • DU- CU programs that focus on finance – port. mgmt-
community special designation
• Quality of life • Education-privately raised funds for foundations for
Denver schools
WHAT ATTRACTS HEDGE FUND MANAGERS TO DENVER
LOW TO MODERATE COSTS OF DOING BUSINESS
 Colorado has the 8th -best small business climate in the nation, according to the Small Business & Entrepreneurship Council. The council's
annual “Small Business Survival Index” considers government spending, individual & corporate tax rates, healthcare costs, & regulatory burden.
 Metro Denver office occupancy costs in the Central Business District avg. $24.65 per sq. ft. in the3rd qtr. of ‘10 [CB Richard Ellis, Global Office
Rents, Nov. ‘10]
A PRO-BUSINESS ENVIRONMENT & COMPETITIVE TAX STRUCTURE
 CO offers a simple corporate income tax structure based on single-factor apportionment, allowing companies to pay taxes based on their sales in
the state
 CO's corporate income tax rate of 4.63% is one of the lowest & competitive tax structures in the nation. [State of Colorado; The Tax Foundation]
WALL STREET OF THE WEST
 ‘Wall Street of the West,’ the Metro Denver & Northern Colorado region is one of the few areas outside of the northeast with a substantial
financial services industry in 3 key market segments: BANKING & FINANCE, INVESTMENTS & INSURANCE
 Ranked 3rd among the 50 largest metro areas in ‘10 for employment concentration in banking & finance.
 Ranked 6th in investments, & 22nd in insurance. The financial services industry includes over 11,150 companies & 87,460 employees.
 18 direct international flights from Denver International Airport daily – It’s easy to reach new customers throughout the world.
 If contingency is important to your company, you should know that our natural disaster risk is minimal compared to east, west, & southern
coasts.
 Recruiting talent in the region is low as Colorado ranks 2nd in the country for percentage of residents with a bachelor’s degree or higher.
 The region has a stronger than average concentration of financial services employees, with 5.7% of the regional workforce employed in related
occupations, compared to a U.S. average of 4.5%.
MICHAEL FIELDS CONTACT CRYSTAL PARZIK
mfields@msfenterprises.com 700 17th Street – Suite 2400 cparzik@msfenterprises.com
303.464.5589 Denver, CO 80202 303.464.5592