ALTISALTIS FINANCIALFINANCIAL

Alternative Investment Solutions

Investor PresentationNovember 2011

Disclaimer and Confidentiality Statement

THIS PRESENTATION WAS PREPARED BY ALTIS FINANCIAL (THE “COMPANY”) AND PRESENTS ONLY A PRELIMINARY SUMMARY OF CERTAIN

ASPECTS OF THE PROPOSED OPPORTUNITY (THE “OPPORTUNITY”). IT DOES NOT CONSTITUTE AN OFFERING OF SECURITIES. THIS

PRESENTATION IS PRELIMINARY AND SUMMARY IN NATURE. THIS PRESENTATION IS INTENDED FOR, AND DELIVERED TO, ONLY VERY

SOPHISTICATED ACCREDITED INVESTORS WHO HAVE SUCH FINANCIAL RESOURCES AND EXPERIENCE IN FINANCIAL AND BUSINESS MATTERS

AS TO BE ABLE TO CONDUCT THEIR OWN EXAMINATION AND DETERMINATION OF THE MERITS AND RISKS OF THIS OPPORTUNITY.

THIS PRESENTATION HAS BEEN PREPARED TO ASSIST INTERESTED PARTIES IN MAKING THEIR OWN EVALUATION PERTAINING TO THE

OPPORTUNITY, AND DOES NOT PURPORT TO BE ALL-INCLUSIVE OR CONTAIN ALL OF THE INFORMATION THAT WOULD BE CONSIDERED

MATERIAL OR DESIRABLE IN MAKING AN EVALUATION. TO THE EXTENT THIS PRESENTATION CONTAINS FORWARD-LOOKING STATEMENTS,

SUCH STATEMENTS ARE NOT GUARANTEES OF FUTURE PERFORMANCE AND ARE SUBJECT TO SOME RISKS, UNCERTAINTIES, AND OTHER

FACTORS, MANY OF WHICH ARE BEYOND THE CONTROL OF THE COMPANY, ARE DIFFICULT TO PREDICT, AND COULD CAUSE ACTUAL RESULTS

TO DIFFER MATERIALLY FROM THOSE EXPRESSED OR FORECASTED IN THE FORWARD-LOOKING STATEMENTS.

2

THE COMPANY MAKES NO REPRESENTATIONS OR WARRANTIES (EXPRESS OR IMPLIED) AS TO THE ACCURACY OR COMPLETENESS OF THE

INFORMATION CONTAINED IN THIS PRESENTATION, OR MADE AVAILABLE IN CONNECTION WITH ANY FURTHER INVESTIGATION OF THE

OPPORTUNITY, INCLUDING ANY ESTIMATES OR PROJECTIONS. THE COMPANY SHALL HAVE NO LIABILITY FOR ANY STATEMENTS CONTAINED

IN, OR FOR ANY OMISSIONS FROM, THIS PRESENTATION OR ANY OTHER WRITTEN OR ORAL COMMUNICATIONS TRANSMITTED TO THE

RECIPIENT HEREOF IN THE COURSE OF ITS EVALUATION OF THE OPPORTUNITY.

THE RECIPIENT ACKNOWLEDGES AND AGREES THAT (1) THIS PRESENTATION IS NOT A COMPLETE SUMMARY OF ALL MATERIAL

INFORMATION RELATING TO THE OPPORTUNITY AND DOES NOT CONTAIN ALL OF THE INFORMATION WHICH WOULD BE CONSIDERED

MATERIAL; (2) THE COMPANY NOR ITS ADVISORS BE SUBJECT TO ANY LIABILITY BASED ON THE INFORMATION CONTAINED IN THIS

PRESENTATION, ERRORS HEREIN OR OMISSIONS HEREFROM, WHETHER OR NOT THEY KNEW OR SHOULD HAVE KNOWN OF ANY SUCH

ERRORS OR OMISSIONS, OR WERE RESPONSIBLE FOR OR PARTICIPATED IN THEIR INCLUSION IN OR OMISSION FROM THIS PRESENTATION.

THIS PRESENTATION IS CONFIDENTIAL AND MAY NOT BE PUBLISHED, DISTRIBUTED OR REPRODUCED, EVEN IN PART. THE INFORMATION

CONTAINED IN THIS PRESENTATION IS PROPRIETARY TO THE COMPANY AND IS BEING SUBMITTED SOLELY FOR CONFIDENTIAL USE WITH THE

EXPRESS UNDERSTANDING THAT, WITHOUT THE PRIOR WRITTEN PERMISSION OF THE COMPANY, SUCH PERSONS WILL NOT RELEASE THIS

PRESENTATION OR DISCUSS THE INFORMATION CONTAINED HEREIN, OR MAKE REPRODUCTIONS OF OR USE THIS PRESENTATION FOR ANY

PURPOSE OTHER THAN THE EVALUATION OF THE OPPORTUNITY.

About ALTISWe Deliver Alternative Investment Solutions to Help Investors Achieve

their Financial Goals

We define alternative investments as investment strategies that provide risk mitigation and

diversification across market environments, and are generally uncorrelated with traditional

asset class benchmarks

Our Investment Products:

3

� Provide institutional and retail investors with the benefits of liquidity and transparency

� Are designed to reduce portfolio volatility without sacrificing potential return

� Are used to complement traditional asset class allocations and improve portfolio risk-

adjusted returns

� Capitalize on inefficiencies in the marketplace to deliver absolute returns, as well as

provide enhanced/risk-mitigated market exposure (Beta)

� Are innovative, straightforward, and easy to implement

About ALTISOur Core Focus is on Scalable Product Development and Distribution

We Develop Investment strategies in Collaboration with First-Rate

Investment Managers/Advisors and Financial Institutions

� Scalability and repeatability are key attributes when considering specific strategies

� The strategies can be managed economically and efficiently

� We partner with investment managers/advisors and large financial institutions who

deploy unique strategies and have successful track records

4

deploy unique strategies and have successful track records

Pervasive Distribution is Paramount to our Success

� Our cornerstone is marketing and distribution

� Our target markets are registered investment advisors( RIAs), family offices, broker-

dealers/home offices, and investment consultants (for pensions/endowments)

� Our team has strong relationships within these target markets

Pillars of Success

5

Distribution

ALTIS Strategic Partners

Identified Strategies

Equity Partners

The OpportunityWe Converge Alternative Strategies with Liquidity and Transparency

� Liquidity became paramount for investors during the crisis, and has remained a key

factor in investment decisions among advisors and institutions

� Transparency has become critical- if an advisor cannot explain what the strategy is and

how it is implemented, they are far less likely to include it in a client's portfolio

� Registered investment vehicles encompassing alternative strategies reflect demand and

facilitate further adoption¹

6

facilitate further adoption¹

� Alternative mutual funds can provide similar exposures to what hedge funds provide

but in a lower cost, more liquid, and more transparent fashion

We assist advisors in addressing the liquidity and transparency shortfalls

of certain alternative investment strategies by developing alternative

solutions through traditional investment vehicles such as mutual funds

¹ Morningstar & Barron’s Alternative Investment Survey of US Institutions and Financial Advisors- January , 2011

The OpportunityWe Believe Alternative Mutual Funds are in their Early Growth Phase

� Many portfolios still lack exposure to alternative investment strategies, and there is

increased investor demand for access to such strategies

� Commodities and Real Estate, the original “alternative investments” for many investors,

have seen increased correlation with equity markets the past few years

� Investment advisors are becoming more familiar with the various investment

techniques employed by alternative managers

� Diversification, absolute and risk-adjusted returns are the top alternative investment

drivers for institutions and advisors¹

7

drivers for institutions and advisors¹

Market Size

� US registered mutual funds managed $11.8 Trillion at the end of 2010²

� In 2010, an estimated 90 million individual investors owned mutual funds and held 87

percent of total mutual fund assets at year-end. Altogether, 51.6 million households,

or 44 percent of all U.S. households, owned mutual funds²

� Total assets in open-end funds that use alternative strategies stood at only $87.9 billion

as of the end of May, 2011³; this represents only 0.75% of current mutual fund asset

allocation to alternatives

¹ Morningstar & Barron’s Alternative Investment Survey of US Institutions and Financial Advisors- January , 2011

² Investment Company Institute- 2011 Investment Company Fact Book- 51st Edition

³ Investment News- “Alternative Strategy Funds Thrive…” July 24, 2011- By Dan Jamieson

Why Now?2011—A Lost Year After a Lost Decade…

� After a turbulent decade for investors, advisors are faced with extremely low yields, a

tremendous amount of macro-driven uncertainty, and continued volatility in equity

markets

� Advisors are concerned about the ability of traditional investments to provide their

investors with stable returns and financial peace of mind

� Portfolio diversification in 2008 was severely tested, as correlation across traditional

asset classes/strategies migrated towards one (perfect correlation)

8

asset classes/strategies migrated towards one (perfect correlation)

� 70%+ of institutions expect alternatives to account for more than 10% of their

portfolios over the next five years; 37% expect their portfolio allocation to alternatives

to exceed 25% ¹

� 50%+ of advisors surveyed expect to see their clients’ allocations to alternatives grow

by more than 10% per-year over the next five-years¹

� 70%+ of institutions surveyed and 66% of advisors believe that alternatives will be as

important or more important than traditional investments over the next five-years¹

Our strategies are specifically chosen to address different asset class needs of

an investor’s portfolio; an early 2012 launch enables us to be in a great position

to capitalize on this migration to alternative investment strategies

¹ Morningstar & Barron’s Alternative Investment Survey of US Institutions and Financial Advisors- January , 2011

ALTIS

Mutual FundsMutual FundsTwo Distinct Investment Strategies to be Launched in 2012

Risk Mitigation is the Foundation of our Investment

Solutions…

� Levels of risk tolerance have diminished since the economic crisis—investors

would be willing to forego some upside participation in exchange for

downside protection

� Investment strategies can take advantage of structural inefficiencies across a

number of different asset classes to deliver lower volatility and absolute

10

number of different asset classes to deliver lower volatility and absolute

return solutions

� Volatility can significantly impact compounding, so it is key to identify

strategies which can mitigate large draw-downs without foregoing the

potential for strong upside appreciation

� Volatility is an asset class in and of itself and can be harnessed in a number

of different ways to dampen overall portfolio volatility and increase risk-

adjusted returns

� Trustworthy and credible partnerships are critical to our success

� Ability to leverage existing track record, firm reputation and infrastructure

is key to establishing rapid penetration in the marketplace

� Initial partnerships include:

� Options manager with 30-years of institutional portfolio overlays

Strategic Partners

11

� Options manager with 30-years of institutional portfolio overlays

� Large financial institution with proven strategies wrapped in index

form

� Focus will be on initial strategies outlined; however, we will be

opportunistic in identifying key partnerships we think can bring value to

the marketplace

� Management/advisory fees are in the process of being negotiated, but cost

should be far less than building-out capabilities in-house to start

Distribution

Institutions

12

Wirehouses/Independent Broker-Dealers

Registered Investment Advisors / Family Offices

Mutual Fund OperationsALTIS Financial Outsources All Mutual Fund Operations

Such outsourcing enables ALTIS to achieve efficiency and scalability, and to focus specifically

on distribution and product development…

Outsourced Operations Include:

� Fund Administration

� Fund Accounting

13

� Fund Accounting

� Transfer Agency

� Custody Administration

� Compliance

� Account Openings, Incoming Transfers, Customer Service

� 24- Hour Automated Voice Response

� Edgar Filing and Printing Services

ALTIS Financial- General Timeline

Series A Funding First Closing-$1.5 million

Commence Drafting of Registration Statement

Marketing Materials Developed

Registration Statement Filing Preparation (See

Next Slide)

Series A Funding

Final Closing-

Total Round- $3 Million

Filing of Registration

Statement

Road Show Commences to Present Strategies to RIAs and

Family Offices for Indications of Interest

December 1, 2011 November 1, 2011-

January 2, 2012

January 2, 2012 January 2, 2012-

April 16, 2012

14

Effective Date for Mutual Funds

Estimated

$50 million AUM

Estimated $100 million AUM

Estimated $250 million AUM

April 16, 2012 July , 2012 December, 2012 October, 2013

ALTIS Financial- Registration Statement Filing Timeline

15

2012 Mutual Fund Rollout

� ALTIS Enhanced Equity Fund—designed to provide enhanced

equity exposure through a more risk-controlled framework than

traditional equity mutual funds, capturing 80-100% of equity

market appreciation and less than 50% of any equity market

decline

16

� ALTIS Long/Short Commodity Fund—provides long/short

commodity exposure by going long the 10 most backwardated

commodities (monthly rebalance) while going short the DJUBS

Index, capitalizing on backwardated commodities generally

signaling strong fundamental demand

ALTIS Enhanced Equity FundOverview

� Designed to provide equity exposure in a more risk-controlled framework

than traditional equity mutual funds, capturing 80-100% of equity market

appreciation and less than 50% of any equity market decline

� Consists of actively managing an options portfolio as an overlay to the

underlying equity exposure—strategies include call writing and various

downside hedging strategies

� Methodology can be employed in different funds across a number of� Methodology can be employed in different funds across a number of

underlying equity indices (e.g. S&P 500, Russell 2000) to address specific

allocation needs

� Sub-advised by investment manager with ~30 years of experience in

managing and trading option portfolios for institutional clients

� Very few equity mutual funds implement either covered call or hedging

solutions, let alone combining both into one fund.

� Gateway (GATEX) does both, has >$5B in AUM, and we feel isn’t as efficient in its

downside hedging strategies leading to material drags in performance during

stable market environments

ALTIS Enhanced Equity FundFund Characteristics

� An Equity Collar consists of selling a call option to finance the purchaseof a put option, and is generally done at zero upfront cost for a definedmaturity (generally 6 months – 1 year).

� Investor establishes maximum upside and downside exposure over acertain period of time, thereby lowering overall equity volatility

� Implementation is inefficient, especially in low-rate, higher� Implementation is inefficient, especially in low-rate, highervolatility/volatility skew environments

� Enhanced Equity fund seeks to improve upon this concept throughactive management of various option strategies, specifically by:

� Going long the underlying index� Selling call options (utilizing index options which will be 1256 contracts:

providing 60% long term capital gains/40% short term capital gains treatment)

� Purchasing downside protection

Specific option strategies to be employed will vary with the market/volatility environment

� The CBOE has created a variety of indices, each providing equity exposure with an option overlay

� The ALTIS Enhanced Equity Fund combines elements of each Index while seeking to further exploit

inefficiencies to improve upon these benchmark strategies

ALTIS Enhanced Equity FundBenchmark Option Indices—comparative analysis

BXM BXY Tail Hedge Collar

Methodology Buy SPX, sell 1 month,

ATM call on SPX

Buy SPX, Sell 1 month, 2%

OTM call on SPX

Buy SPX, buy 1 month OTM

VIX call with 0-1% of total

assets

Buy SPX, sell 1 month, 10%

OTM call, purchase 3 month,

5% OTM put

Key Strengths 1. Generates significant 1. Enables investor to 1. Greatly mitigates steep SPX 1. Provides the investor with a Key Strengths 1. Generates significant

monthly premium

2. Produces favorable

risk-adjusted returns

compared to SPX

1. Enables investor to

participate in SPX moves up

to 2% per month

2. Investors do receive some

level of call premium

1. Greatly mitigates steep SPX

declines when volatility

levels had been lower

2. Adjusts exposure based on

volatility levels in attempt to

minimize carry cost

1. Provides the investor with a

performance zone, which

greatly reduces overall portfolio

volatility

2. Sells shorter-dated options and

purchases longer-dated ones

Key Weaknesses 1. Minimal protection in

tail scenarios

2. Strikes don’t adjust

based on market

conditions

1. Minimal protection in tail

scenarios

2. Strikes don’t adjust based on

market conditions

1. Purchases VIX option

exposure (albeit less) at

higher VIX levels (30-50),

despite high cost (skew) and

generally lower VIX

sensitivity to SPX declines

(e.g. Jan/Feb 2009; Sept,

2011)

2. 1 month maturity increases

potential premium outlay

1. 10% OTM calls generate

minimal premium in most

market environments and if

timing is wrong may sell call at

bottom

2. Put options costs can be a

heavy drag on returns in certain

environments

80.00

100.00

120.00

140.00

160.00

180.00

Ind

ex

Va

lue

(3

/2

2/

06

= 1

00

)

BXM

S&P 500 Total Return

VXTH

BXY

Altis Proxy (BXM/BXY + VXTH)

ALTIS Enhanced Equity FundComparison to other CBOE Benchmark Indices

-

20.00

40.00

60.00

3/1

/20

06

6/1

/20

06

9/1

/20

06

12

/1/2

00

6

3/1

/20

07

6/1

/20

07

9/1

/20

07

12

/1/2

00

7

3/1

/20

08

6/1

/20

08

9/1

/20

08

12

/1/2

00

8

3/1

/20

09

6/1

/20

09

9/1

/20

09

12

/1/2

00

9

3/1

/20

10

6/1

/20

10

9/1

/20

10

12

/1/2

01

0

3/1

/20

11

6/1

/20

11

9/1

/20

11

Ind

ex

Va

lue

(3

/2

2/

06

= 1

00

)

Altis Proxy (BXM/BXY + VXTH)

Monthly correlation of ALTIS Proxy with S&P 500 Total Return during this period was 0.48

ALTIS Long/Short Alpha Commodity FundOverview

� Backwardation refers to the shape of a commodity curve where the front

month futures contracts are more expensive than the outer months

� Backwardation may exist for several different reasons, but is most

commonly associated with strong fundamentals due to strong current

demand and/or limited supply/low inventory of the commodity

� In certain commodities, supply can take awhile to come into production and

can therefore exhibit more persistent backwardation (e.g. Copper), whereascan therefore exhibit more persistent backwardation (e.g. Copper), whereas

others are more seasonal in nature (e.g. Heating Oil)

� 2 potential benefits to obtaining long exposure to commodities in

backwardation:

� Futures contract prices at expiration converge to equal the then-current spot

price, so that a backwardated futures contract could increase over time

� As commodity positions are rolled prior to expiration, a backwardated curve may

enable investors to sell a more expensive contract (expiring contract) and

purchase a less expensive contract (longer maturity contract). This may result in

a positive roll yield and serve as a buffer to any decline in the commodity’s price

(i.e. downward shift of the entire curve)

ALTIS Long/Short Alpha Commodity FundOverview� This strategy seeks to capitalize on commodities in backwardation by identifying and

going long the 10 most backwardated commodities, rebalancing on a monthly basis

� The front-month futures contract price is compared with the 12 month forward price

to determine which are the most backwardated commodities, thereby mitigating any

seasonality impact

� Each commodity is rolled according to a pre-defined schedule, tailored specifically� Each commodity is rolled according to a pre-defined schedule, tailored specifically

for each commodity

� The long positions in the 10 backwardated commodites are paired with an equally-

weighted short exposure to the Dow Jones-UBS Commodity Index, a broad-based

index across all commodities (both in backwardation and contango)

� There are very few commodity ETF’s or mutual funds exclusively focused on the

power of backwardation and its ability to outperform the traditional benchmark

indices

� Cash collateral will be managed with exposure to short-duration, high quality fixed

income securities/funds

ALTIS Long/Short Alpha Commodity FundImplementation

� Partnership with a major financial institution who launched an Index around

the backwardation methodology in November, 2010

� Fund will obtain exposure to this Index via swap (i.e. on an unfunded basis)

� Fund investor’s principal is placed in short-duration fixed income securities

and cash, and is therefore not subject to counterparty riskand cash, and is therefore not subject to counterparty risk

� Fund will receive (pay) the positive (negative) Index performance on a

periodic basis, thereby further mitigating counterparty risk (i.e. investor may

only be at risk of not receiving the last performance payment (targeting

weekly performance true-up with financial institution)

� Cash collateral, over time, should offset the Fund’s management fee and

potentially the entire expense ratio; however, this will be a function of the

then current interest rates

ALTIS Long/Short Alpha Commodity FundComparison to Dow Jones UBS Index

100

150

200

250

Altis Backwardation

Alpha Commo Fund

DJUBS Index

0

50

9/1/

2006

12/1

/200

6

3/1/

2007

6/1/

2007

9/1/

2007

12/1

/200

7

3/1/

2008

6/1/

2008

9/1/

2008

12/1

/200

8

3/1/

2009

6/1/

2009

9/1/

2009

12/1

/200

9

3/1/

2010

6/1/

2010

9/1/

2010

12/1

/201

0

3/1/

2011

6/1/

2011

9/1/

2011

Return Standard Deviation

Altis Backwardation Alpha Commodity Fund* 18.31% 7.77%

DJUBS Index -2.60% 22.09%

Annualized Source: Bloomberg

*Gross of expenses and management of cash collateral; Long/Short Commodity Index went live on November 23, 2010

ALTIS Long/Short Alpha Commodity FundCorrelation with Major Indices

Correlation with: 10 years Since Index Launch

DJ-UBS Commodity Index -0.109 -0.06

S&P 500 Total Return Index 0.108 0.295

Monthly Correlation

Source: Bloomberg

iShares MSCI Emerging Market Fund (EEM) 0.119 -0.033

iShares Barclays Aggregate Bond Fund (AGG) 0.099 -0.362

Dow Jones US Real Estate Index 0.118 0.266

HFR Global Hedge Fund Index 0.127 0.379

ALTISALTIS FINANCIALFINANCIAL

Alternative Investment Solutions

Investor PresentationNovember 2011