Upload
others
View
4
Download
0
Embed Size (px)
Citation preview
�
'LDEHWLF�.HWRDFLGRVLV�LQ�WKH�WLPH�RI�&29,'�����5ROH�RI�6XEFXWDQHRXV�LQVXOLQ
/HHQD�3UL\DPEDGD���-RVHSK�,��:ROIVGRUI���6WXDUW�%ULQN���0DULD�)ULWVFK�� (WKHO�&RGQHU���.LP�&��
'RQDJKXH�����0DULD�(��&UDLJ�����
�'LYLVLRQ�RI�3HGLDWULF (QGRFULQRORJ\��5DLQERZ�&KLOGUHQ¶V�+RVSLWDO��+\GHUDEDG��,QGLD
�'LYLVLRQ�RI�(QGRFULQRORJ\��%RVWRQ�&KLOGUHQV�+RVSLWDO��%RVWRQ��0DVVDFKXVHWWV��86$
�1HZ�(QJODQG�'LDEHWHV�DQG�(QGRFULQRORJ\�&HQWHU��:DOWKDP��0DVVDFKXVHWWV��86$
�'HSDUWPHQW�RI�3HGLDWULF DQG�$GROHVFHQW�0HGLFLQH��0HGLFDO�8QLYHUVLW\�RI�*UD]��*UD]��$XVWULD
�,QVWLWXWH�RI�0DWHUQDO� DQG�&KLOG�5HVHDUFK��6FKRRO�RI�0HGLFLQH��8QLYHUVLW\�RI�&KLOH��6DQWLDJR��
&KLOH�
�6\GQH\�&KLOGUHQ¶V�+RVSLWDO�1HWZRUN��:HVWPHDG
�'LVFLSOLQH�RI�&KLOG�DQG�$GROHVFHQW�+HDOWK��8QLYHUVLW\�RI�6\GQH\��$XVWUDOLD
�6FKRRO�RI�:RPHQ¶V�DQG�&KLOGUHQ¶V�+HDOWK��8QLYHUVLW\�RI�1HZ�6RXWK�:DOHV��6\GQH\��$XVWUDOLD
([HFXWLYH�VXPPDU\
7KH� ,QWHUQDWLRQDO� 6RFLHW\� IRU 3HGLDWULF� DQG� $GROHVFHQW� 'LDEHWHV� �,63$'� &OLQLFDO� 3UDFWLFH�
&RQVHQVXV� *XLGHOLQHV ���� IRU� PDQDJHPHQW� RI� GLDEHWLF� NHWRDFLGRVLV� �'.$�� DQG� WKH�
K\SHUJO\FHPLF�K\SHURVPRODU�VWDWH���� SURYLGH�FRPSUHKHQVLYH�JXLGDQFH�IRU�PDQDJHPHQW�RI�'.$�
LQ� \RXQJ� SHRSOH �)LJXUH� ���� ,QWUDYHQRXV� �,9� LQIXVLRQ� RI� LQVXOLQ� IRU� WUHDWLQJ� '.$� PD\�
QHFHVVLWDWH�LQWHQVLYH�FDUH�XQLW��,&8��DGPLVVLRQ�LQ�KRVSLWDOV LQ�VRPH�SDUWV�RI�WKH�ZRUOG��'XULQJ�
WKH�&RURQDYLUXV�'LVHDVH�������&29,'���� SDQGHPLF��,&8�VHUYLFHV�PD\�QHHG�WR�EH�SULRULWLVHG�
IRU� FDUH� RI� DIIHFWHG� LQGLYLGXDOV�� 3DUWLFXODUO\� LQ� WKH� VHWWLQJ� RI�&29,'���� RU� RWKHU� SDQGHPLFV��
,&8�DGPLVVLRQV�IRU�K\SHUJO\FHPLF�HPHUJHQFLHV�PD\�QRW�EH�SUDFWLFDEOH� EHFDXVH�,&8V PD\�EH�DW�
FDSDFLW\�ZLWK�&29,'����DIIHFWHG�SDWLHQWV� RU�LQGHHG�LQDSSURSULDWH GXH�WR�ULVN�RI�WUDQVPLVVLRQ RI�
�
LQIHFWLRQ WR� \RXQJ� SHRSOH� ZLWK� W\SH� �� RU� �� GLDEHWHV�� +HQFH�� ZKLOH� VDIH� PDQDJHPHQW� WKDW�
PLQLPLVHV�ULVN� LV�HVVHQWLDO� XQFRPSOLFDWHG�PLOG� WR�PRGHUDWH�'.$�FDQ�EH�PDQDJHG�RXWVLGH� WKH�
,&8�VHWWLQJ� 7KH�DLP�RI� WKLV�GRFXPHQW��ZKLFK� VKRXOG�EH�XVHG� LQ� FRQMXQFWLRQ�ZLWK� WKH� ,63$'�
�����JXLGHOLQHV��� LV� WR� HQVXUH� WKDW� \RXQJ�SHRSOH�ZLWK�'.$� UHFHLYH�PDQDJHPHQW� DFFRUGLQJ� WR�
EHVW�HYLGHQFH�LQ�WKH�FRQWH[W�RI�OLPLWHG�,&8 UHVRXUFHV� ,Q�WKH�PLGVW�RI�WKH�&29,'����SDQGHPLF��
WKLV�PD\� EH� DSSOLFDEOH� LQ� ERWK� KLJK� UHVRXUFH� DV�ZHOO� DV� OLPLWHG� UHVRXUFH� VHWWLQJV�� 7KH� UROH� RI�
SK\VLFDO� GLVWDQFLQJ�� KDQG� DQG� UHVSLUDWRU\� K\JLHQH DV� ZHOO� DV DSSURSULDWH� XVH� RI� SHUVRQDO�
SURWHFWLYH�HTXLSPHQW�DV�SHU�ORFDO�SURWRFRO�DUH�RI�XWPRVW�LPSRUWDQFH�
5HFRPPHQGDWLRQV�
x ,9�LQVXOLQ� UHPDLQV� WKH�VWDQGDUG�RI�FDUH�IRU�'.$���� � ,9 LQVXOLQ DFWV� UDSLGO\�ZLWKLQ�PLQXWHV
DQG WKH� UDWH� RI� LQVXOLQ� GHOLYHU\� VKRXOG EH� WLWUDWHG� XQWLO� NHWRDFLGRVLV UHVROYHV�� �/HYHO� RI�
HYLGHQFH %�
x ,9�LQVXOLQ�LQIXVLRQ�PD\�EH�XVHG�IRU�PDQDJHPHQW�RI�PRGHUDWH�'.$�RXWVLGH�WKH�,&8�VHWWLQJ�
SURYLGHG�SURWRFROV� DUH� LQ�SODFH� DQG� WKHUH� LV� DSSURSULDWH� VWDIILQJ� WR�HQVXUH� IUHTXHQW FOLQLFDO�
DQG�ELRFKHPLFDO�PRQLWRULQJ� �/HYHO�RI�HYLGHQFH�(�
x 6XEFXWDQHRXV� �6&�� UDSLG�DFWLQJ� LQVXOLQ�DQDORJV� DFW� UHODWLYHO\� UDSLGO\�� UHDFKLQJ�SHDN�VHUXP�
LQVXOLQ�FRQFHQWUDWLRQV�ZLWKLQ�a���PLQXWHV�DQG�SHDN�SKDUPDFRG\QDPLF�DFWLRQ�ZLWKLQ�a�������
PLQXWHV�RI� LQMHFWLRQ�� 6& UDSLG�DFWLQJ� LQVXOLQ DQDORJV FDQ�EH�XVHG� IRU� WUHDWPHQW�RI�PLOG� WR�
PRGHUDWH�'.$��SDUWLFXODUO\�RXWVLGH�WKH�,&8�VHWWLQJ� �/HYHO�RI�HYLGHQFH &�
x 6&�UHJXODU�LQVXOLQ�LV�DQ�DOWHUQDWLYH�IRU�WUHDWPHQW�RI�XQFRPSOLFDWHG PLOG�WR�PRGHUDWH�'.$� LI�
UDSLG�DFWLQJ� LQVXOLQ� DQDORJV� DQG� ,9� UHJXODU� LQVXOLQ� LQIXVLRQ� DUH� QRW� DYDLODEOH� �/HYHO� RI�
HYLGHQFH�&�
x 7KH�PDQDJHPHQW� RI� IOXLG� DQG� HOHFWURO\WHV� VKRXOG� EH� LQ� DFFRUGDQFH� ZLWK WKH� ,63$'� ����
'.$ JXLGHOLQHV���� � +RZHYHU�� RQFH� NHWRDFLGRVLV� KDV� UHVROYHG�� L�H�� S+� ������� VHUXP�
�
ELFDUERQDWH�����PPRO�/��%2+%����PPRO�/�� DQG�RU� FORVXUH� RI� WKH� DQLRQ� JDS ��� � DQG� WKH�
FKLOG� LV� DEOH� WR�GULQN DGHTXDWHO\�� WKHQ� WKH� UHPDLQLQJ�YROXPH RI� WKH�FDOFXODWHG� IOXLG�GHILFLW�
DQG�SRWDVVLXP�UHSODFHPHQW�LI�QHHGHG�FDQ�EH�JLYHQ�RUDOO\���/HYHO�RI�HYLGHQFH (�
x 0HWLFXORXV�PRQLWRULQJ�RI�WKH�FOLQLFDO�DQG�ELRFKHPLFDO�UHVSRQVH�WR�WUHDWPHQW�LV�QHFHVVDU\�VR�
WKDW WLPHO\�DGMXVWPHQWV�LQ�WUHDWPHQW�FDQ�EH�PDGH�ZKHQ�LQGLFDWHG�E\�WKH�SDWLHQWV�FOLQLFDO�RU�
ODERUDWRU\�GDWD� �/HYHO�RI�HYLGHQFH�(�
6XEFXWDQHRXV�UDSLG�DFWLQJ LQVXOLQ�DQDORJV�
x 7KH�VXJJHVWHG�VWDUWLQJ�GRVH�RI�6& UDSLG�DFWLQJ�LQVXOLQ�DQDORJ��OLVSUR RU�DVSDUW��LV������8�NJ�
RQH KRXU� DIWHU� FRPPHQFHPHQW� RI� ,9� �VDOLQH�� IOXLG� UHSODFHPHQW��2QFH� EORRG� JOXFRVH� OHYHO
�%*� IDOOV�WR ����� PPRO�/��������� PJ�GO���DGG����GH[WURVH�WR�WKH�,9�IOXLGV� 7KH�GRVH�RI�
6&� LQVXOLQ� DQDORJ� FDQ� EH� UHGXFHG� WR� ���� 8�NJ� HYHU\� WZR� KRXUV�� LI� WKH %*� FRQWLQXHV� WR�
GHFUHDVH�E\ !��PPRO�/�����PJ�GO��SHU�KRXU��6&�GRVHV�VKRXOG�EH� LQMHFWHG�HYHU\� WZR�KRXUV
XQWLO�UHVROXWLRQ�RI�'.$���/HYHO�RI�HYLGHQFH &�
x %*�VKRXOG�EH�PRQLWRUHG�HYHU\�RQH�WR�WZR�KRXUV DLPLQJ WR�PDLQWDLQ�WKH�OHYHO�DW a���PPRO�/�
�����PJ�G/��XQWLO�NHWRDFLGRVLV�LV�UHVROYHG�� �/HYHO�RI�HYLGHQFH�(�
x 6&� LQVXOLQ� WKHUDS\� PD\� QRW� EH� DSSURSULDWH� LQ� VHYHUHO\ GHK\GUDWHG� SDWLHQWV� �OHWKDUJ\� RU�
XQFRQVFLRXVQHVV��FRPD�� ODFN�RI�XULQH�RXWSXW� SRWHQWLDO�UHQDO�IDLOXUH� FRRO�PRLVW�H[WUHPLWLHV��
ORZ�RU�XQGHWHFWDEOH�EORRG�SUHVVXUH��RU D�UDSLG�DQG�IHHEOH�SXOVH��� 6&�DGPLQLVWUDWLRQ�PD\�DOVR�
QRW�EH�DSSURSULDWH�ZKHQ�UHGXFHG�WLVVXH�SHUIXVLRQ��FDSLOODU\�UHILOO� WLPH�!��VHF��SHUVLVWV�DIWHU�
IOXLG�UHVXVFLWDWLRQ RU�LQ�SDWLHQWV�ZLWK�VHULRXV FR�PRUELG�SUHFLSLWDWLQJ�FRQGLWLRQV WKDW�ZDUUDQW
,&8�DGPLVVLRQ� �/HYHO�RI�HYLGHQFH�(�
x 2QFH�WKH�NHWRDFLGRVLV�KDV�UHVROYHG DQG�RUDO�LQWDNH�LV�WROHUDWHG� ZKLFK�XVXDOO\�RFFXUV�ZLWKLQ�
�� KRXUV� RI� LQLWLDWLQJ� WUHDWPHQW LQ� SDWLHQWV� ZLWK� PLOG� WR� PRGHUDWH� '.$��� EDVDO �ORQJ� RU�
LQWHUPHGLDWH�DFWLQJ� LQVXOLQ�FDQ�EH DGPLQLVWHUHG�� �/HYHO�RI�HYLGHQFH (�
�
6XEFXWDQHRXV�VKRUW�DFWLQJ�UHJXODU�LQVXOLQ�
x 6&�DGPLQLVWUDWLRQ�RI�VKRUW�DFWLQJ�UHJXODU�LQVXOLQ�HYHU\�IRXU KRXUV�LV�DOVR�D�VDIH�DQG�HIIHFWLYH�
DOWHUQDWLYH�WR�,9�LQVXOLQ�LQIXVLRQ�LQ�FKLOGUHQ�ZLWK�'.$�DQG S+������� $�VXJJHVWHG�VWDUWLQJ�
GRVH�LV������WR������8�NJ�GRVH�HYHU\�IRXU KRXUV �����WR���8� NJ�GD\ JLYHQ�LQ�GLYLGHG�GRVHV���
LQFUHDVHG� RU� GHFUHDVHG� VWHSZLVH� E\� ��±���� EDVHG� RQ� WKH� %* SULRU� WR� LQVXOLQ� LQMHFWLRQ��
'RVLQJ�IUHTXHQF\�PD\�EH�LQFUHDVHG�WR�HYHU\���KRXUV�LI�DFLGRVLV�LV�QRW�LPSURYLQJ��� �/HYHO�RI�
HYLGHQFH�&�
,QWUDPXVFXODU��,0��UHJXODU�LQVXOLQ
x ,0�LQVXOLQ�PD\�EH�SUHIHUUHG�RYHU�6&�LQVXOLQ�LI�WKHUH�LV�SRRU WLVVXH�SHUIXVLRQ�DQG�,9�LQVXOLQ�LV�
QRW�DQ�RSWLRQ� �/HYHO�RI�HYLGHQFH (�
&29,'����DQG�SHUVRQDO�SURWHFWLYH�PHDVXUHV
&29,'���� LV� D� KLJKO\� LQIHFWLRXV� GLVHDVH� FDXVHG� E\� VHYHUH� DFXWH� UHVSLUDWRU\� V\QGURPH�
FRURQDYLUXV� �� �6$56�&R9����� $FFRUGLQJ� WR� FXUUHQW� HYLGHQFH�� &29,'���� YLUXV� LV� SULPDULO\�
WUDQVPLWWHG� EHWZHHQ� SHRSOH� WKURXJK� UHVSLUDWRU\� GURSOHWV� DQG� FRQWDFW� URXWHV�� $LUERUQH�
WUDQVPLVVLRQ� LQ� FHUWDLQ� FLUFXPVWDQFHV� DQG� IHFR�RUDO� WUDQVPLVVLRQ� KDYH� DOVR� EHHQ� SRVWXODWHG���
7KH� :RUOG� +HDOWK� 2UJDQL]DWLRQ� �:+2�� KDV� HPSKDVL]HG� WKDW� WKH� PRVW� HIIHFWLYH� SUHYHQWLYH�
PHDVXUHV� LQ� WKH� FRPPXQLW\� LQFOXGH� SHUIRUPLQJ� PHWLFXORXV� KDQG� K\JLHQH�� LQFOXGLQJ� ZDVKLQJ�
KDQGV ZLWK�VRDS�DQG�ZDWHU�IRU����VHFRQGV DQG�XVH�RI�DOFRKRO�EDVHG�GLVLQIHFWDQW�KDQG�VDQLWL]HUV��
DYRLGLQJ�WRXFKLQJ�H\HV��QRVH��DQG�PRXWK��SUDFWLFLQJ�UHVSLUDWRU\�K\JLHQH�E\�FRXJKLQJ�RU�VQHH]LQJ�
LQWR�D�EHQW�HOERZ�RU�WLVVXH�DQG�WKHQ�LPPHGLDWHO\�GLVSRVLQJ�RI�WKH�WLVVXH��XVH�RI�HOERZ�ILVW�EXPSV�
WR� DYRLG�KDQG� VKDNLQJ�� DQG�PDLQWDLQLQJ� VRFLDO�GLVWDQFH� �D�PLQLPXP�RI���PHWHU�� IURP�SHUVRQV�
ZLWK� UHVSLUDWRU\� V\PSWRPV��� :HDULQJ� RI� PDVNV� RU� VFDUYHV� PD\� DVVLVW� LQ� SURPRWLQJ� KHDOWK\�
�
GLVWDQFLQJ��'XULQJ�WKLV�WLPH�RI�6$56�&R9��SDQGHPLF��&29,'����VKRXOG�EH�FRQVLGHUHG�LQ�WKH�
SDWLHQW�ZLWK�'.$��DQG�D�GLDJQRVWLF�SURFHGXUH�WKDW�IROORZV�ORFDO�JXLGHOLQHV�VKRXOG�EH�FDUULHG�RXW�
WR�H[FOXGH�WKLV�GLDJQRVLV�
&29,'�����FKLOGUHQ�DQG�GLDEHWHV�
&KLOGUHQ��DGROHVFHQWV��DQG�\RXQJ�DGXOWV�ZLWK�&29,'����KDYH�JHQHUDOO\�H[SHULHQFHG�OHVV�VHYHUH�
FOLQLFDO�PDQLIHVWDWLRQV�WKDQ�ROGHU�DGXOWV RU�ZHUH�DV\PSWRPDWLF������� ,Q�DQ�DQDO\VLV RI�PRUH�WKDQ
����� FKLOGUHQ�� �� GHYHORSHG� K\SR[HPLD� DQG� ����� SURJUHVVHG� WR� DFXWH� UHVSLUDWRU\� GLVWUHVV�
V\QGURPH� �$5'6���� 8QGHUO\LQJ� SXOPRQDU\� SDWKRORJ\� DQG� FRQGLWLRQV� WKDW� LPSDLU� LPPXQLW\�
�VXFK� DV� SULPDU\� LPPXQRGHILFLHQF\� GLVRUGHU�� FKHPRWKHUDS\� IRU� PDOLJQDQF\�� FKURQLF�
LPPXQRVXSSUHVVLYH�WKHUDS\��VROLG�RUJDQ�WUDQVSODQW��RU�KHPDWRSRLHWLF�FHOO�WUDQVSODQW��KDYH�EHHQ�
DVVRFLDWHG�ZLWK�PRUH�VHYHUH�RXWFRPHV��� $QHFGRWDO HYLGHQFH�VXJJHVWV�WKDW�FKLOGUHQ�ZLWK�GLDEHWHV�
KDYH�QRW�VKRZQ�D�GLIIHUHQW�GLVHDVH�SDWWHUQ RU�VXVFHSWLELOLW\ ZKHQ�FRPSDUHG�WR�FKLOGUHQ�ZLWKRXW�
GLDEHWHV���
,Q�PDQ\� SODFHV�� KRZHYHU�� KRVSLWDO� VHUYLFHV UHPDLQ� FORVHG� IRU� QRQ�&29,'���� DLOPHQWV�� 7KHUH�
KDYH� DOVR� EHHQ� FRQFHUQV� UHJDUGLQJ� GHOD\V� LQ� VHHNLQJ� KRVSLWDO� FDUH� IRU� GLDEHWHV�UHODWHG
HPHUJHQFLHV� LQ� FKLOGUHQ� DQG� DGROHVFHQWV DV�ZHOO� DV� GHOD\HG� GLDJQRVLV� RI� QHZ� FDVHV� RI� W\SH� ��
GLDEHWHV�DV IDPLOLHV�DUH�DSSUHKHQVLYH�DERXW�WDNLQJ�WKHLU�FKLOG WR�DQ HPHUJHQF\�GHSDUWPHQW �('�
EHFDXVH�RI�IHDU�RI�H[SRVXUH�WR�&29,'���� 7KXV��DQHFGRWDO�UHSRUWV�KDYH�VXJJHVWHG�WKDW�DV�D�UHVXOW�
RI� GHOD\� LQ� VHHNLQJ� PHGLFDO� DWWHQWLRQ�� DIIHFWHG� LQGLYLGXDOV� KDYH� SUHVHQWHG ZLWK� PRUH� VHYHUH�
'.$���
7KH�LPSRUWDQFH�RI�VLFN�GD\�PDQDJHPHQW DQG PDLQWHQDQFH�RI�VWDQGDUG�GLDEHWHV�FDUH�DW�KRPH�LQ�
RUGHU�WR�SUHYHQW�'.$�DQG�DYRLG�YLVLWV�WR�WKH�('�FDQQRW�EH�RYHUHPSKDVL]HG������ )DPLOLHV�VKRXOG�
�
EH� HGXFDWHG� UHJDUGLQJ� QRQ�RPLVVLRQ� RI� LQVXOLQ�� KHDOWK\� HDWLQJ�� FRQWLQXLQJ� SK\VLFDO� DFWLYLW\� DW�
KRPH��UHPDLQLQJ�K\GUDWHG�DQG�WUHDWLQJ�WKH�XQGHUO\LQJ�V\PSWRPV��)UHTXHQW�%* PRQLWRULQJ�DQG�
FKHFNLQJ�IRU�NHWRQXULD�EORRG�NHWRQHV�ZKHQ�LQGLFDWHG�VKRXOG�EH�HQFRXUDJHG��,Q�LQGLYLGXDOV�XVLQJ�
D� FRQWLQXRXV� JOXFRVH� PRQLWRULQJ� V\VWHP� �&*06��� FRQILUPDWRU\� %* PRQLWRULQJ� VKRXOG� EH�
SHUIRUPHG�ZLWK�ILQJHUSULFNV��HVSHFLDOO\ LI�NHWRVLV LV�SUHVHQW��5DSLGO\�FKDQJLQJ�%* OHYHOV�LQ�'.$�
PD\�OLPLW�WKH�YDOXH�RI�&*06��:KHQ�KRVSLWDO DGPLVVLRQ�EHFRPHV�QHFHVVDU\��GXULQJ�WKLV�WLPH�RI�
WKH�SDQGHPLF��WKH�HDUOLHVW�SRVVLEOH�GLVFKDUJH�VKRXOG�EH�FRQVLGHUHG�
7HOHKHDOWK DQG�RU WHOHSKRQH� FRQVXOWDWLRQV� IRU� VLFN� GD\�PDQDJHPHQW DQG� URXWLQH� GLDEHWHV� FDUH
VKRXOG�EH�HQFRXUDJHG��,Q�SDUWLFXODU� WHOHSKRQH�DGYLFH�UHJDUGLQJ VSHFLILF�VLFN�GD\�TXHVWLRQV�DQG�
WKH� QHHG� WR� VHHN� IRUPDO� IDFH�WR�IDFH� HYDOXDWLRQ�PD\� DVVLVW� LQ� LGHQWLILFDWLRQ� DQG� SUHYHQWLRQ� RI�
FKLOGUHQ� DW� ULVN� RI� '.$�� $GYDQFHV LQ� WHFKQRORJ\� VXFK� DV GRZQORDGLQJ� UHFRUGV� IURP� LQVXOLQ�
SXPSV DQG &*06� DQG�UHPRWH�PRQLWRULQJ�VKRXOG�EH�XVHG ZKHUHYHU�SRVVLEOH�WR�RSWLPL]H�JOXFRVH�
FRQWURO�
7KH� &29,'���� SDQGHPLF� KDV� FUHDWHG� DQ� XQSUHFHGHQWHG� QHHG� IRU� ,&8� VHUYLFHV� ZKLFK� DUH�
EHFRPLQJ� LQFUHDVLQJO\� OLPLWHG��+HQFH� LW� LV� HVVHQWLDO WR� UHVHUYH� ,&8 EHGV IRU� WKRVH� DW� JUHDWHVW�
QHHG DQG�WR�PDQDJH�SDWLHQWV�RXW�RI� WKH�,&8 VHWWLQJ ZKHQHYHU�VDIHO\�SRVVLEOH� ,Q�VRPH�SDUWV�RI�
WKH�ZRUOG� ,9� LQIXVLRQ� RI� LQVXOLQ� IRU� WUHDWPHQW� RI '.$ QHFHVVLWDWHV� ,&8� DGPLVVLRQ�� KRZHYHU�
XQFRPSOLFDWHG�PLOG� WR�PRGHUDWH�'.$� LV� URXWLQHO\�PDQDJHG� RXWVLGH� WKH� ,&8� VHWWLQJ� LQ�PDQ\�
FHQWUHV�ZKHUH�DGHTXDWH�UHVRXUFHV�DUH�DYDLODEOH�
7KHUH�LV�HYLGHQFH�WKDW�DOWHUQDWLYH�PRGHV�RI�LQVXOLQ�DGPLQLVWUDWLRQ��SDUWLFXODUO\�WKH�6&�URXWH� PD\�
EH� VDIH� DQG� HIIHFWLYH� LQ�PDQDJLQJ� XQFRPSOLFDWHG�PLOG� WR PRGHUDWH� '.$�� 7KHVH JXLGHOLQHV�
DORQJ�ZLWK� WKH� ,63$'� �����'.$� JXLGHOLQHV�� DLP� WR� KHOS� SK\VLFLDQV�PDQDJH� XQFRPSOLFDWHG�
�
PLOG�WR�PRGHUDWH�'.$�ZLWK�6&�RU�,0�LQVXOLQ�RXWVLGH�WKH�,&8�VHWWLQJ� DQG DUH�LQWHQGHG�WR�EH D�
UHVRXUFH� GXULQJ� &29,'���� DQG� RWKHU� SDQGHPLFV� DV� ZHOO� DV� LQ� WKH� VHWWLQJ� RI� OLPLWHG� ,&8
UHVRXUFHV� IRU� RWKHU� UHDVRQV�� LQ� OLQH�ZLWK� WKH� ,63$'� OLPLWHG� FDUH� DSSHQGL[� �������&',&�� DQG�
/)$&� JXLGHOLQHV�
5DWLRQDOH�EHKLQG�DOWHUQDWLYH�PRGHV�RI�LQVXOLQ�GHOLYHU\
3KDUPDFRNLQHWLFV DQG�SKDUPDFRG\QDPLFV RI�VXEFXWDQHRXV�DQG�LQWUDPXVFXODU�LQVXOLQ
)RU�'.$�PDQDJHPHQW�WR�EH�HIIHFWLYH�DQG�VDIH��WKH�LQVXOLQ XVHG�VKRXOG�KDYH�D�UDSLG�RQVHW�DQG�D�
VKRUWHU�GXUDWLRQ�RI� DFWLRQ� 6&� UDSLG�DFWLQJ� LQVXOLQ� DQDORJV� DUH� UDSLGO\� DEVRUEHG LQWR WKH�EORRG�
DQG�SODVPD�LQVXOLQ�FRQFHQWUDWLRQV�UHDFK�SHDN YDOXHV E\�a���PLQ RI�DGPLQLVWUDWLRQ� 7KH�JOXFRVH�
ORZHULQJ�HIIHFW�UHDFKHV D�PD[LPXP�E\�a�������PLQXWHV�RI�LQMHFWLRQ�� :KHQ�FRPSDUHG�WR�VKRUW�
DFWLQJ�UHJXODU�LQVXOLQ��UDSLG�DFWLQJ�LQVXOLQ OLVSUR VKRZHG�JUHDWHU�JOXFRVH�ORZHULQJ�HIIHFW GXULQJ�
WKH� LQLWLDO �� KRXUV DIWHU� DGPLQLVWUDWLRQ�� 7KH� SKDUPDFRG\QDPLF� HIIHFWV� ZHUH� VLPLODU� IRU� LQVXOLQ�
OLVSUR�ZKHWKHU�LW�ZDV JLYHQ�,0�RU�6&��� ,QVXOLQ�DVSDUW�KDV�VLPLODU�SKDUPDFRNLQHWLF�SURILOHV�DQG�
SKDUPDFRG\QDPLF�HIIHFWV�DV�OLVSUR�DQG�FDQ�EH�XVHG�LQWHUFKDQJHDEO\�LQ�FOLQLFDO�SUDFWLFH���
(YLGHQFH�IRU�VXEFXWDQHRXV LQVXOLQ�LQ�'.$
(OLJLEOH� VWXGLHV�ZHUH� LGHQWLILHG� WKURXJK� 3XE0HG�� 7KH� GDWH� RI� ODVW� VHDUFK�ZDV� ���$SULO� ������
5HIHUHQFH�OLVWV�IURP�LQFOXGHG�UDQGRPL]HG�FRQWUROOHG�WULDOV��5&7V��DQG�V\VWHPDWLF�UHYLHZV�ZHUH�
DOVR�H[DPLQHG��6WXGLHV�DQG�UHYLHZV�LQYROYLQJ�6&�RU�,0��VKRUW�DFWLQJ RU UDSLG�DFWLQJ��LQVXOLQ�LQ�
SDUWLFLSDQWV�RI�DQ\�DJH�RU�VH[�ZLWK�'.$�ZHUH�LQFOXGHG��
'.$� PDQDJHPHQW� XVLQJ� 6&� UDSLG�DFWLQJ� LQVXOLQ� DQDORJV� ZDV DQDO\VHG� LQ� VL[� 5&7V�� WZR�
SHGLDWULF������ DQG�IRXU�DGXOW�������7KHVH�VWXGLHV DUH�VXPPDUL]HG�LQ�7DEOH����)RXU��RQH�SHGLDWULF��
WULDOV�XVHG�LQVXOLQ�OLVSUR����� DQG�WZR��RQH�SHGLDWULF��VWXGLHV�XVHG�DVSDUW��������7KHUH�KDYH�EHHQ�QR�
�
WULDOV�HYDOXDWLQJ�6&�JOXOLVLQH�IRU�'.$��'HWDLOV�RI�WKHVH�5&7V�DUH�VKRZQ�LQ�6XSSOHPHQWDU\�7DEOH�
��
3HGLDWULF�VWXGLHV�XVLQJ�VXEFXWDQHRXV�UDSLG�DFWLQJ�LQVXOLQ�DQDORJV IRU�'.$�
,Q�FKLOGUHQ�ZLWK�'.$��S+!������6&�OLVSUR�ZDV�JLYHQ�DW�D�GRVH�RI������8�NJ�HYHU\� WZR�KRXUV��
FRPPHQFLQJ�����KRXUV�DIWHU�VWDUWLQJ�,9 VDOLQH�K\GUDWLRQ� XQWLO�WKH�%*�GHFUHDVHG�WR������PPRO�/�
�����PJ�G/��� 7KHUHDIWHU� ����� 8�NJ� ZDV� LQMHFWHG� HYHU\� IRXU� KRXUV� IRU� ��� KRXUV�� 7KH FRQWURO�
JURXS UHFHLYHG�,9�UHJXODU�LQVXOLQ�LQIXVLRQ�DW����������8�NJ�KRXU� ,Q�ERWK�JURXSV��K\SHUJO\FHPLD�
UHVROYHG� LQ �� KRXUV�� KRZHYHU� ZKHQ� WKH� 6&� LQMHFWLRQV� ZHUH� VSDFHG� WR� IRXU� KRXUO\� LQWHUYDOV�
JOXFRVH�FRQWURO�ZRUVHQHG LQ�WKH�6&�DUP DQG UHVROXWLRQ�RI�DFLGRVLV�ZDV�VLJQLILFDQWO\�SURORQJHG�
FRPSDUHG�WR�WKRVH ZKR UHFHLYHG�,9�LQVXOLQ� 7KHVH�REVHUYDWLRQV VXJJHVW�WKDW 6&�LQMHFWLRQV�RI�D�
UDSLG�DFWLQJ�DQDORJ�VKRXOG�FRQWLQXH�DW�WZR�KRXUO\�LQWHUYDOV�XQWLO UHVROXWLRQ RI�'.$���
,Q�D�VLPLODU�VWXG\��FKLOGUHQ�ZLWK�PLOG�WR�PRGHUDWH�'.$�ZHUH�JLYHQ�6&�DVSDUW����� 8�NJ�HYHU\�
WZR�KRXUV�RU������� ����8�NJ�K�,9�UHJXODU�LQVXOLQ�LQIXVLRQ��� 7LPH�WR�UHVROXWLRQ�RI�'.$ DQG�UDWH�
RI� GHFOLQH� RI� %*� ZHUH VLPLODU� LQ� ERWK� JURXSV DQG� WKHUH� ZHUH� QR� VLJQLILFDQW� DGYHUVH� HIIHFWV��
'XUDWLRQ RI� KRVSLWDOL]DWLRQ� ZDV� VKRUWHU LQ� WKH� FKLOGUHQ� ZLWK� PRGHUDWH� '.$� WUHDWHG� ZLWK� 6&�
DVSDUW�
$GXOW�VWXGLHV�XVLQJ�UDSLG�DFWLQJ�LQVXOLQ�DQDORJV IRU�'.$
6&� OLVSUR� DQG� DVSDUW� KDYH EHHQ�XVHG� IRU� DGXOWV�ZLWK� XQFRPSOLFDWHG�'.$ �S+!���� DW� YDULRXV�
GRVH UHJLPHQV DQG� FRPSDUHG� WR� ,9� UHJXODU� LQVXOLQ����� �6XSSOHPHQWDU\� 7DEOH� ���� 7LPH� WR�
UHVROXWLRQ�RI�K\SHUJO\FHPLD��WLPH�WR�UHVROXWLRQ�RI�'.$��WRWDO�GRVH�RI�LQVXOLQ�UHTXLUHG��OHQJWK�RI�
KRVSLWDO�VWD\�DQG�UDWH�RI�K\SRJO\FHPLD�ZHUH�VLPLODU�LQ�ERWK�WKH�6&�DQG�,9�WUHDWHG�JURXSV�LQ�DOO�
IRXU�5&7V��1RQH�RI�WKH�VWXGLHV�UHSRUWHG�PRUWDOLW\�RU�FHUHEUDO�HGHPD��7KH�FRVW�RI�,9�LQVXOLQ�LQ�
�
WKH�,&8�VHWWLQJ�ZDV�����KLJKHU��3�������WKDQ�6&�DQDORJV�LQ�WKH�QRQ�,&8�VHWWLQJ�LQ�WKH�VLQJOH�
VWXG\�WKDW�SHUIRUPHG�DQ�HFRQRPLF�HYDOXDWLRQ���
3XEOLVKHG�UHYLHZV RQ�VXEFXWDQHRXV�UDSLG�DFWLQJ�DQDORJV�IRU�'.$
2QH�&RFKUDQH�DQG�WZR�V\VWHPDWLF�UHYLHZV SXEOLVKHG�LQ�WKH�ODVW�WHQ�\HDUV����� HYDOXDWHG�6&�UDSLG�
DFWLQJ�DQDORJV�IRU�WUHDWPHQW�RI�'.$ �6XSSOHPHQWDU\�7DEOH���� 7KH &RFKUDQH�UHYLHZ�� DQDO\]HG
WKH�HYLGHQFH� IURP� ILYH�5&7V������ EHWZHHQ����� DQG������ RI�6&� UDSLG�DFWLQJ� LQVXOLQ� DQDORJV�
�IRXU�OLVSUR��RQH�DVSDUW��IRU WKH�WUHDWPHQW�RI�'.$���&RPSDUHG�WR�,9�LQVXOLQ�JURXS��WKH�6&�JURXS�
KDG�VLPLODU WLPH�WR�UHVROXWLRQ�RI�'.$ DQG�IUHTXHQF\�RI�K\SRJO\FHPLD��6&�OLVSUR�JURXSV�KDG�D�
VKRUWHU� OHQJWK�RI�KRVSLWDO� VWD\ �PHDQ ����GD\V� VKRUWHU�� 'DWD�RQ�PRUELGLW\� DQG� VRFLRHFRQRPLF�
HIIHFWV�ZHUH�OLPLWHG��1R�GHDWKV�ZHUH�UHSRUWHG��7KH�DXWKRUV�FRQFOXGHG�RQ�WKH�EDVLV�RI�PRVWO\�ORZ�
WR� YHU\� ORZ�TXDOLW\� HYLGHQFH� WKDW� WKHUH� DUH� QHLWKHU� DGYDQWDJHV� QRU� GLVDGYDQWDJHV� ZKHQ�
FRPSDULQJ� WKH�HIIHFWV� RI�6&� UDSLG�DFWLQJ� LQVXOLQ� DQDORJV�YHUVXV� ,9� UHJXODU� LQVXOLQ� IRU� WUHDWLQJ�
PLOG�RU�PRGHUDWH��EDVHG�RQ�$'$�FULWHULD��S+!�����'.$�
7ZR� V\VWHPDWLF� UHYLHZV WKDW� LQFOXGHG� 5&7V� DQDO\]HG� LQ� WKH� &RFKUDQH� UHYLHZ KDG� D� VLPLODU�
FRQFOXVLRQ WKDW�6&�UDSLG�DFWLQJ�LQVXOLQ�ZDV�VDIH�DQG�HIILFDFLRXV�IRU�PLOG�WR�PRGHUDWH�'.$�������
7KH�FRVW�GLIIHUHQFH�QRWHG�LQ�WKH�VLQJOH�VWXG\�� ZDV�VHFRQGDU\�WR�DGGHG�,&8�FKDUJHV�UDWKHU�WKDQ�D�
WUXH�GLIIHUHQFH�LQ� WKH�LQWHQVLW\�RI�FDUH�UHTXLUHG� ,W�ZDV�DUJXHG�WKDW�6&�LQVXOLQ�UHJLPHQ�DFWXDOO\�
LQFUHDVHV WKH� QXUVLQJ� ZRUN� DV� PRUH� IUHTXHQW� QXUVLQJ� LQWHUYHQWLRQV �KRXUO\� RU� WZR�KRXUO\� 6&�
LQMHFWLRQV� DUH�QHHGHG��� +RZHYHU��ODUJHU��DSSURSULDWHO\�SRZHUHG�VWXGLHV�DUH�QHHGHG�WR�HYDOXDWH�
IXUWKHU�
��
6WXGLHV�XVLQJ�VXEFXWDQHRXV�UHJXODU�LQVXOLQ�
5HJXODU� LQVXOLQ� PD\ EH� PRUH� UHDGLO\� DYDLODEOH WKDQ� UDSLG�DFWLQJ� DQDORJV LQ� UHVRXUFH�OLPLWHG�
VHWWLQJV� (YLGHQFH�IRU�XVH�RI�6&�UHJXODU�LQVXOLQ�IRU�'.$�LQ�FKLOGUHQ�LV�OLPLWHG��,Q�D�UHWURVSHFWLYH�
FKDUW� UHYLHZ RI� FOLQLFDOO\� VWDEOH� FKLOGUHQ� ZLWK� '.$� �S+� ����������� DGPLWWHG� WR� WKH� JHQHUDO�
SHGLDWULF�ZDUG �6XSSOHPHQWDU\�7DEOH� ���� D� UHJLPHQ�XVLQJ�6&� UHJXODU� LQVXOLQ� HYHU\� IRXU� KRXUV�
EDVHG�RQ�D�GRVH�RI�����WR���8�NJ�GD\�ZDV�HIIHFWLYH��VDIH�DQG�IHDVLEOH�� 0RUH�IUHTXHQW�GRVLQJ�KDV
EHHQ�XVHG�IRU�DGXOWV��� +HQFH��LI�WKH�ELRFKHPLFDO�UHVSRQVH�LV�XQVDWLVIDFWRU\� FKLOGUHQ�PD\�UHTXLUH
6&�UHJXODU�LQVXOLQ�HYHU\�����KRXUV�
(YLGHQFH�IRU�LQWUDPXVFXODU�LQVXOLQ�IRU�'.$
7KH� SKDUPDFRNLQHWLF� SURILOH� RI� UDSLG�DFWLQJ� LQVXOLQ� DQDORJV� LV� VLPLODU�ZKHWKHU LQMHFWHG� ,0� RU�
6&��� ,0�LQVXOLQ�PD\�EH�SUHIHUUHG�RYHU�6&�LQVXOLQ�LI�WKHUH�LV�SRRU�WLVVXH�SHUIXVLRQ�DQG�,9�LQVXOLQ�
LV�QRW�DQ�RSWLRQ� 'XULQJ�WKH�����V��,0�LQVXOLQ�ZDV�GRFXPHQWHG�WR�EH�HIILFDFLRXV�IRU�WUHDWPHQW�RI�
FKLOGUHQ�ZLWK�'.$����EXW�WKHUH�KDYH�EHHQ�QR�VXEVHTXHQW�VWXGLHV�UHJDUGLQJ�WKH�XVH�RI�,0�LQVXOLQ�
IRU WUHDWPHQW�RI�'.$�LQ�FKLOGUHQ��,0�LQMHFWLRQ�WHQGV�WR�EH�PRUH�SDLQIXO�WKDQ�6&�LQMHFWLRQ��7KH�
VWXGLHV�XVLQJ�,0�LQVXOLQ�IRU�'.$�DUH�GHVFULEHG�LQ�6XSSOHPHQWDU\�7DEOH���
/LPLWDWLRQV�DQG�VWUHQJWKV�
7KHUH DUH� IHZ�5&7V� FRPSDULQJ� 6&� UDSLG�DFWLQJ� LQVXOLQ� DQDORJV�ZLWK� FRQYHQWLRQDO� ,9� UHJXODU�
LQVXOLQ�IRU�WUHDWPHQW�RI�'.$��$OO�WKH�WULDOV�LQYROYHG D VPDOO�QXPEHU�RI�SDUWLFLSDQWV DQG�WKH�OHYHO�
RI� HYLGHQFH� ZDV� PRVWO\� VXE�RSWLPDO��� 'DWD� RQ� PRUELGLW\� DQG� VRFLRHFRQRPLF� HIIHFWV� ZHUH�
OLPLWHG��1RQH�RI�WKH�WULDOV�UHSRUWHG�RQ�DGYHUVH�HYHQWV�RWKHU�WKDQ�K\SRJO\FHPLD� 1HYHUWKHOHVV��WKH�
ILQGLQJV�VXSSRUW�XVH�RI�6&�LQVXOLQ LQ�UHVRXUFH�OLPLWHG�VHWWLQJV��SDUWLFXODUO\�ZKHQ�,&8�DGPLVVLRQ�
PD\�QRW�EH�IHDVLEOH�RU�GHVLUDEOH��VXFK�DV�GXULQJ�SDQGHPLFV��
��
&RQFOXVLRQV
6&�UDSLG�DFWLQJ�LQVXOLQ�DQDORJV�RU�UHJXODU�LQVXOLQ DUH�DQ�DFFHSWDEOH DOWHUQDWLYH�WR�FRQWLQXRXV�,9�
LQIXVLRQ�RI�UHJXODU�LQVXOLQ�IRU�WKH�WUHDWPHQW�RI�XQFRPSOLFDWHG�PLOG DQG�PRGHUDWH�'.$ �VHH�%R[
��� )LJXUH� ��� /DUJHU�� DSSURSULDWHO\� SRZHUHG� VWXGLHV� LQ� WKH� SDHGLDWULF� DJH� UDQJH� DUH� QHHGHG��
0HDQZKLOH�� WKHUH� LV� VXIILFLHQW� HYLGHQFH� WR� UHFRPPHQG� FRQVLGHUDWLRQ� RI� 6&� LQVXOLQ� WKHUDS\� LQ�
FLUFXPVWDQFHV� ZKHUH ,&8� UHVRXUFHV� DUH� OLPLWHG� RU� PXVW� EH� SULRULWLVHG IRU� RWKHU� SDWLHQWV DQG�
WUHDWPHQW�ZLWK�,9�LQVXOLQ�LV�QRW�IHDVLEOH��
��
%R[����.H\�SRLQWV
x ,9�UHJXODU�LQVXOLQ�LQIXVLRQ�PD\�EH�XVHG�IRU�PDQDJHPHQW�RI�PRGHUDWH�'.$�RXWVLGH�WKH�,&8�
VHWWLQJ� SURYLGHG� SURWRFROV� DUH� LQ� SODFH� DQG� WKHUH� LV� DSSURSULDWH� VWDIILQJ� WR� HQVXUH� IUHTXHQW�
FOLQLFDO�DQG�ELRFKHPLFDO�PRQLWRULQJ��
x 6&� UDSLG�DFWLQJ� LQVXOLQ� DQDORJV� FDQ� EH� XVHG� IRU� WUHDWPHQW� RI� PLOG� WR� PRGHUDWH� '.$��
SDUWLFXODUO\�RXWVLGH�WKH�,&8�VHWWLQJ�
x 6&�UHJXODU�LQVXOLQ�LV�DQ�DOWHUQDWLYH�IRU�WUHDWPHQW�RI�XQFRPSOLFDWHG�PLOG�WR�PRGHUDWH�'.$��LI�
UDSLG�DFWLQJ�LQVXOLQ�DQDORJV�DQG�,9�UHJXODU�LQVXOLQ�LQIXVLRQ�DUH�QRW�DYDLODEOH�
x 7KH�PDQDJHPHQW� RI� IOXLG� DQG� HOHFWURO\WHV� VKRXOG� EH� LQ� DFFRUGDQFH�ZLWK� WKH� ,63$'� �����
'.$�JXLGHOLQH��2QFH� NHWRDFLGRVLV� KDV� UHVROYHG� DQG� WKH� FKLOG� LV� DEOH� WR� GULQN� DGHTXDWHO\��
WKHQ� WKH� UHPDLQLQJ� YROXPH� RI� WKH� FDOFXODWHG� IOXLG� GHILFLW� DQG� SRWDVVLXP� UHSODFHPHQW� LI�
QHHGHG�FDQ�EH�JLYHQ�RUDOO\�
x 0HWLFXORXV�PRQLWRULQJ�RI�WKH�FOLQLFDO�DQG�ELRFKHPLFDO�UHVSRQVH�WR�WUHDWPHQW�LV�QHFHVVDU\�VR�
WKDW�WLPHO\�DGMXVWPHQWV�LQ�WUHDWPHQW�FDQ�EH�PDGH�ZKHQ�LQGLFDWHG�E\�WKH�SDWLHQWV�FOLQLFDO�RU�
ODERUDWRU\�GDWD�
x 7KH�VXJJHVWHG�VWDUWLQJ�GRVH�RI 6&�UDSLG�DFWLQJ�LQVXOLQ�DQDORJ��OLVSUR�RU�DVSDUW��LV������8�NJ�
RQH�KRXU�DIWHU�FRPPHQFHPHQW�RI� ,9�IOXLG�UHSODFHPHQW� DGPLQLVWHUHG�HYHU\� WZR�KRXUV�XQWLO�
UHVROXWLRQ�RI�'.$��2QFH�%*�IDOOV�WR�������PPRO�/����������PJ�GO���DGG����GH[WURVH�WR�WKH�
,9�IOXLGV� 7KH�GRVH�RI�6&�LQVXOLQ�DQDORJ�FDQ�EH�UHGXFHG�WR�����8�NJ�HYHU\�WZR�KRXUV��LI�WKH�
%*�FRQWLQXHV�WR�GHFUHDVH�E\�!��PPRO�/�����PJ�GO��SHU�KRXU��
x )RU� 6&� UHJXODU� LQVXOLQ�� WKH VXJJHVWHG� VWDUWLQJ� GRVH� LV� ����� WR� ����� 8�NJ�GRVH HYHU\� IRXU�
KRXUV��LQFUHDVHG�RU�GHFUHDVHG�VWHSZLVH�E\���±����EDVHG�RQ�WKH�%*�SULRU�WR�LQVXOLQ�LQMHFWLRQ���
'RVLQJ�IUHTXHQF\�PD\�EH�LQFUHDVHG�WR�HYHU\���KRXUV�LI�DFLGRVLV�LV�QRW�LPSURYLQJ�
x %*�VKRXOG�EH�PRQLWRUHG�HYHU\�RQH�WR� WZR�KRXUV�DLPLQJ�WR�PDLQWDLQ�%*�a���PPRO�/������
PJ�G/��XQWLO�NHWRDFLGRVLV�LV�UHVROYHG�
��
x 6&� LQVXOLQ� WKHUDS\�PD\� QRW� EH� DSSURSULDWH� LQ� VHYHUHO\� GHK\GUDWHG� SDWLHQWV� ZKHQ� UHGXFHG�
WLVVXH�SHUIXVLRQ� �FDSLOODU\� UHILOO� WLPH�!��VHF��SHUVLVWV� DIWHU� IOXLG� UHVXVFLWDWLRQ�RU� LQ�SDWLHQWV�
ZLWK�VHULRXV�FR�PRUELG�SUHFLSLWDWLQJ�FRQGLWLRQV�WKDW�ZDUUDQW�,&8�DGPLVVLRQ��
x ,0�LQVXOLQ�PD\�EH�SUHIHUUHG�RYHU�6&�LQVXOLQ�LI�WKHUH�LV�SRRU�WLVVXH�SHUIXVLRQ�DQG�,9�LQVXOLQ�LV�
QRW�DQ�RSWLRQ�
x 2QFH�WKH�NHWRDFLGRVLV�KDV�UHVROYHG�DQG�RUDO�LQWDNH�LV�WROHUDWHG EDVDO��ORQJ� RU�LQWHUPHGLDWH�
DFWLQJ��LQVXOLQ�FDQ�EH�DGPLQLVWHUHG�
��
7DEOH� ��� 6XPPDU\� RI� UDQGRPL]HG� FRQWUROOHG� VWXGLHV� FRPSDULQJ� VXEFXWDQHRXV� WR�
LQWUDYHQRXV�LQVXOLQ�LQ�FKLOGUHQ�DQG�DGXOWV�ZLWK�'.$
5HIHUHQFH &RPSDUDWRU�GRVH &RPSDUDWRU�JURXS�FKDUDFWHULVWLFV��Q��PHDQ�DJH ��6'�
'.$�VHYHULW\
,QIHULRULW\ 6XSHULRULW\
5D]DYL�� 6&�DVSDUW� �����8�NJ T�K Q ��
������� \UV
S+�!���� %*�KLJKHU�DW�HQG�RI�WUHDWPHQW �S�QV�
6KRUWHU�VWD\�IRU�PRGHUDWH'.$ �����YV�����GD\V�
'HOOD�� 6&�OLVSUR�������8�NJ�T�K��WKHQ�T�K
Q ��
PHGLDQ ���� \UV��UDQJH������\UV
S+�!��� *OXFRVH�FRQWURO�VXE�RSWLPDO�ZLWK�T�K�6&�LQVXOLQ��
QLO
.DUROL�� 6&�OLVSUR��6& EROXV�����8�NJ� WKHQ�����8�NJ���K�ODWHU�DQG�WKHQ�����8�NJ�T�K�5HGXFHG WR�����8�NJ�T�K�LI�%*�������PPRO�/
Q ��
����� \UV
S+�!��� QLO QLO
(UVR]�� 6& OLVSUR��,9�UHJXODU�LQVXOLQ EROXV�����8�NJ� WKHQ 6& OLVSUR������,8�NJ T�K
Q ��
����������\UV
S+�!��� QLO QLO
8PSLHUUH]�� 6&�OLVSUR�6&�%ROXV�����8�NJ�IROORZHG�E\�����8�NJT�K�XQWLO�%*������PPRO�/��WKHQ������WR�����8�NJ�T�K�
Q ��
����� \UV
S+�!��� QLO /RZHU�KRVSLWDO�FRVW LQ�QRQ�,&8�6&�JURXS
8PSLHUUH]�� 6&�DVSDUW��%ROXV�6&������8�NJ�7KHQ�����8�NJ�T�K7KHQ������8�NJ�T�K�DW�%*������PPRO�O�
6& DVSDUW���%ROXV�6&������8�NJ7KHQ�����8�NJ���K�ODWHU�DQG�T�K7KHQ ����8�NJ�T�K�DW�%*������PPRO�O�
Q �� LQ�HDFK�JURXS
6& DVSDUW��������� \UV
6& DVSDUW������� �� \UV
S+�!��� QLO QLO
��
6XSSOHPHQWDU\�7DEOH����6WXGLHV�RQ�6XEFXWDQHRXV�,QVXOLQ�LQ�'.$��6WXG\�FKDUDFWHULVWLFV�DQG�OHYHOV�RI�HYLGH
6WXG\� 3DUWLFLSDQW�FKDUDFWHULVWLFV�
,QVXOLQ�UHJLPHQV� 7LPH�XQWLO�UHVROXWLRQ�RI�'.$��KRXUV�
7LPH�WR�UHVROXWLRQ�RI�K\SHUJO\FHPLD�KRXUV�
7RWDO�GRVH�RI�LQVXOLQ�WR�FRUUHFW�DFLGRVLV
'XUDWLRQ�RI�KRVSLWDO�VWD\��GD\V�
+\SRJO\FHPLD 5HPDUNV�0RUWDOLW\�
2WKHU�DGYHUVH�HIIHFWV
3HGLDWULF�VWXGLHV5D]DYL�HW�DO�������
5&76&�DVSDUW��ZDUG�Q �������������0LOG�PRG�'.$�������
,9 �,&8��Q �������������0LOG�PRG�'.$��������S ����
6&�DVSDUW�������8�NJ�T�K�
,9�UHJXODU������������8�NJ�K�LQIXVLRQ�
0LOG�'.$�6&��������������,9��������������S� ����
0RGHUDWH�'.$��6&���������������,9��������������S ����
%*�DW�HQG�RI'.$� KLJKHU�LQ�6&�YV�,9S�QV
5DWH�RI�%* IDOO�VLPLODU�LQ�ERWK�JURXSV
6&�������������8�NJ
,9�������������8�NJ��S��������
0LOG�'.$6&����������,9�����������3 ���
0RGHUDWH�'.$�6&� ������������,9� �����������S� ������
1$1R�PHWDEROLF�FRPSOLFDWLRQV
1R�GHDWKV
5HFXUUHQFH�RI '.$�ZLWKLQ����K�6&������ SDWLHQWV,9������ SDWLHQWV
'HOOD�0DQQD�HW�DO�������
5&7��Q ������LQ�('����LQ�,&8�
6&�OLVSUR�Q ���PHGLDQ������\UV ������S+������������
,9 Q ��������±�� ��PHDQ������\UVS+�������� �����
6&�OLVSUR�������8�NJ�T�K�XQWLO %* �������PPRO�/��WKHQ�T�KIRU�QH[W����K
,9�UHJXODU������8�NJ�K LQIXVLRQ
6&�����K�DIWHU�%* �������PPRO�/
,9�����K�DIWHU�%* �������PPRO�/3�����
%LFDUERQDWH�JLYHQ�LQ�Q ����6&����,9���
5DWH�RI�IDOO�RI�%* VLPLODU
6&����PPRO�/�K,9������PPRO�/�KS�QV
,QVXOLQ�GRVH�LQ�ILUVW��K
6&� ����������8�NJ,9�������������8�NJ
1$ 0LOGK\SRJO\FHPLD������PPRO�O�,9�UHJXODU��Q� ��6&�OLVSUR��Q� ���S�1$��
1R�GHDWKV�RU�³QHDU�GHDWK1R�FHUHEUDO HGHPD$W���KU LQMHFWLRQ�LQWHUYDOV��JO\FHPLF�FRQWURO�ZRUVHQHG
&RKHQ�HW�DO������
&KDUW�UHYLHZQ ������������S+�������������
6&�UHJXODU�LQVXOLQ������WR������8�NJ�T�K
,QFUHDVHG�RU�GHFUHDVHG�VWHSZLVH�E\���±����EDVHG�RQ�%*/
���������������� 1$ ������������������8�NJ�K
QD Q � 1RQH�WUDQVLWLRQHG�WR�,9�LQVXOLQ�RU�WR�,&8�K\SRNDOHPLD�PRVWO\�PLOG�Q ����1R�FDUGLDF�DUUK\WKPLDV��FHUHEUDO�HGHPD��RU�PRUWDOLW\�
��
$GXOW�VWXGLHV.DUROLHW�DO�������
6&�OLVSUR Q ����('�������� \UVS+�������������
,9��Q �����('�������� \UVS+�������������
6&�OLVSUR��6&�EROXV�����8�NJ� WKHQ����8�NJ�DIWHU�� K��WKHQ ����8�NJ�T�K�5HGXFHG WR�����8�NJ�T�K LI�%* ������PPRO�/
,9�UHJXODU� ,QLWLDO�,9�EROXV�����8�NJ�IROORZHG�E\ LQIXVLRQ�DW�����8�NJ�K
6&�OLVSUR����������K
,9�UHJXODU���������K�S�QV
+RXUV�WR�%*�����PPRO�/�
6&�����������,9� ��� �����S�QV
6&��������� 8
,9��������� 8
6&���������
,9�����������
1R��RI�HYHQWV6&��Q �,9��Q ��
1R�PRUWDOLW\1R�UHFXUUHQFH�RI�'.$�
1R YHQRXV�WKURPERVLV��UHVSLUDWRU\ GLVWUHVV�V\QGURPH��RU�K\SHUFKORUHPLF�DFLGRVLV
(UVR]�HW�DO�������
6&�OLVSUR�Q ����$GP�8QLW�1$����������S+������� ����,9� Q ��� �����������$GP�8QLW�Q�U��S+� ����������
6&�OLVSUR��,9�UHJXODU�LQVXOLQ�EROXV�����8�NJ� IROORZHG�E\�6&�OLVSUR������,8�NJ T�K
,9�UHJXODU� ,9�EROXV �����8�NJ�IROORZHG�E\ FRQWLQXRXV LQIXVLRQ
6&�����������,9� �����������S�QV
+RXUV�WR�%*�����PPRO�/
6&������� ���,9�������� ����S�QV
6&� �����������8,9����������8S�QV
1$ 1LO 1R�QHHG�IRU�,9�LQVXOLQ�WUHDWPHQW�GXH�WR�LQDGHTXDWH�UHVSRQVH1R�PRUWDOLW\�1R�UHFXUUHQFH�RI�'.$�
8PSLHUUH]�HW�DO�������
6&�OLVSUR��Q ����ZDUG�VWHS�GRZQ���������S+������������
,9�Q ��� �,&8������S+�������������
6&�OLVSUR�LQLWLDO�����8�NJ��WKHQ�����8�NJ�T�K�XQWLO�%*������PPRO�/��WKHQ������� ����8��NJ�T�K�XQWLO�'.$�UHVROYHG,9�UHJXODU�,9�EROXV ����8�NJ��WKHQ�����8�NJ�K��LQIXVLRQ�XQWLO�%*�������PPRO�/��IROORZHG�E\������WR�����8�NJ�K�XQWLO�'.$�UHVROYHG
6&�������
,9����� �S�QV
+RXUV�WR�%*�����PPRO�/�VLPLODU�
6&����� ���8,9����� ���8S��QV
6&�OLVSUR�����
,9�UHJXODU��� �S��QV
Q ��LQ�HDFK�JURXS
1RQH�WUDQVLWLRQHG�WR�,9�LQVXOLQ�GXH�WR�LQDGHTXDWH�UHVSRQVH1R�UHFXUUHQFH�RI�'.$�
7UHDWPHQW�LQ�WKH�,&8�ZLWK�,9�KDG�����KLJKHU�FKDUJHV�WKDQ�ZLWK�6&�LQ�ZDUG�
8PSLHUUH]�HW�DO�������
6&�DVSDUW����Q ����ZDUG�������\UVS+�������������
6&�DVSDUW���Q ��� ���� ��S+�������������
,9�UHJXODU��Q ��� ���� ����S+��������������
6&�DVSDUW���,QLWLDO�GRVH�6&������8�NJ�IROORZHG�E\�����8�NJ�T�KIROORZHG�E\������8�NJ�T�K�DW�%*������PPRO�O�
6&�DVSDUW��� ,QLWLDO�6&������8�NJIROORZHG�E\�����8�NJ���K�ODWHU�DQG�T�K��IROORZHG�E\�����8�NJ�T�K�DW�%*������PPRO�O�
,9�UHJXODU��,9 EROXV�IROORZHG�E\�LQIXVLRQ
6&�DVSDUW�������� �6&�DVSDUW����������,9������ �S�QV
+RXUV�WR��%*������PPRO�O�6&�DVSDUW��������� �6&�DVSDUW�������� �,9������� �S�QV
6&�DVSDUW������� ���86&�DVSDUW������� ���8,9������ ���8S�QV
6&�DVSDUW�������� �6&�DVSDUW�������� �,9 ��������S�Q�V�
Q ��LQ�HDFK�JURXS
1RQH�WUDQVLWLRQHG�WR�,9�LQVXOLQ�GXH�WR�LQDGHTXDWH�UHVSRQVH6LPLODU K\SRJO\FHPLF�HYHQWV��1R�PRUWDOLW\1R�UHFXUUHQFH�RI�'.$
��
�Q��$JH��\UV���S+��DGPLWWLQJ�XQLW�ZDUG�('�,&8
%*��EORRG�JOXFRVH��FDSLOODU\���'.$��'LDEHWLF�.HWRDFLGRVLV��6&��VXEFXWDQHRXV��,9��,QWUDYHQRXV��K��KRXU��('��HPHUJHQF\�GHSDUWPHQW��,&8��LQWHQVLYH�FDUH�XQLW��Q�U���QRW�UHSRUWHG��
QV��QRW�VLJQLILFDQW��
0HDQ��6'��XQOHVV�RWKHUZLVH�VWDWHG�
%*�FRQYHUVLRQV�����PPRO�/� �����PJ�GO�������PPRO�/� �����PJ�GO�����PPRO�/� �����PJ�GO������PPRO�/ ���PJ�GO
7ZR�5&7V�ZHUH�IXQGHG�E\�LQVXOLQ�FRPSDQLHV������
��
6XSSOHPHQWDU\�7DEOH����3XEOLVKHG�UHYLHZV�RQ�VXEFXWDQHRXV�LQVXOLQ�LQ�'.$
6WXG\� 6WXG\�FKDUDFWHULVWLFV
3RROHG�RXWFRPHV�FRQFOXVLRQV 6XPPDU\7LPH�XQWLO�UHVROXWLRQ�RI�'.$��KRXUV�
+\SRJO\FHPLD 'XUDWLRQ�RI�KRVSLWDO�VWD\��GD\V�
$QGUDGH�&DVWHOODQRV�������
��5&7V��WR �����6&�DQDORJV YV�,9�LQIXVLRQ �����
��DGXOW����SHGLDWULF���OLVSUR����DVSDUW
Q ���� ����WR�6&�����WR�,9'.$��S+!���
6&�OLVSUR��PHDQ�GLIIHUHQFH��0'������K������&,������WR�������3� �����
6&�DVSDUW�0'����K������&,������������
YHU\�ORZ�TXDOLW\�HYLGHQFH
6&�OLVSUR���ULVN�UDWLR��55������������&,������WR��������3� �����
6&�DVSDUW��55�����������&,������WR���������3� ����
ORZ�TXDOLW\�HYLGHQFH�
6&�OLVSUR���0'�RI������GD\V������&,����WR�������3� �������
6&�DVSDUW������GD\V������&,������WR�������3� �������
ORZ�TXDOLW\�HYLGHQFH�
0DLQO\�GDWD�RQ�DGXOWV�1R�GHDWKV�1R�WULDO�UHSRUWHG�RQ�DGYHUVH�HYHQWV�RWKHU�WKDQ�K\SRJO\FHPLF�HSLVRGHV1R�WULDO�LQYHVWLJDWHG�SDWLHQW�VDWLVIDFWLRQ�
&RQFOXVLRQ��1HLWKHU�DGYDQWDJHRXV�QRU�GLVDGYDQWDJHRXV�LQ�6&�YV�,9 �0RVWO\�ORZ� WR�YHU\�ORZ�TXDOLW\�HYLGHQFH�
&RKQ�������
��5&7V��WR �����6&�DQDORJV�YV�,9�LQIXVLRQ������
��DGXOW����SHGLDWULF���OLVSUR����DVSDUW
'.$��S+!���
1R�GLIIHUHQFH�LQ�WKH�GXUDWLRQ�RI�WKHUDS\�XQWLO�UHVROXWLRQ�RI�'.$�ZLWK�HLWKHU�JURXS
,QFLGHQFH�RI�K\SRJO\FHPLDZDV�ORZ�
S�QV
� ,QLWLDO�EROXV RPLWWHG�LQ�FKLOGUHQ$PRXQW�RI�QXUVLQJ�WLPH�UHTXLUHG�ZRXOG�LQFUHDVH�ZLWK�6&�LQVXOLQ&RVWV�DUH�LQFUHDVHG�GXH�WR�,&8�FKDUJHV��7KH�DXWKRUV�TXHVWLRQHG�WKH�QHFHVVLW\�RI�,&8�LQ�XQFRPSOLFDWHG�PLOG�WR�PRGHUDWH�'.$��
9LQFHQW�������
��5&7V��WR �����6&�OLVSUR�RQO\�YV�,9�LQIXVLRQ�����
��DGXOW����SHGLDWULF�
1R�GLIIHUHQFH�LQ�RXWFRPHV�6&�YHUVXV�,9�
5DUH��DQG�RI�PLOG�VHYHULW\
� 6&�LQVXOLQ IHDVLEOH�DOWHUQDWLYH�WR�,9
/DUJHU��DSSURSULDWHO\�SRZHUHG�VWXGLHV�QHHGHG
'.$��'LDEHWLF�.HWRDFLGRVLV��5&7��UDQGRPLVHG�FRQWUROOHG�WULDO��6&��VXEFXWDQHRXV��,9��,QWUDYHQRXV��K��KRXU��,&8��LQWHQVLYH�FDUH XQLW
��
6XSSOHPHQWDU\�7DEOH����&KDUDFWHULVWLV�RI�VWXGLHV�XVLQJ LQWUDPXVFXODU�LQVXOLQ�IRU�WUHDWPHQW�RI '.$
6WXG\� 1$JH��\UV�
,QFOXVLRQ�FULWHULD
([FOXVLRQ�FULWHULD
,QVXOLQ�UHJLPHQV 7LPH�WR�UHVROXWLRQ�RI�'.$��KRXUV�
7RWDO�LQVXOLQ�GRVH�WR�FRUUHFW�DFLGRVLV
'XUDWLRQ�RI�KRVSLWDO�VWD\��GD\V�
5HPDUNV�0RUWDOLW\�2WKHU�DGYHUVH�HYHQWV
3HGLDWULF VWXGLHV0RVHOH\�������
&DVH�VHULHVQ ������WR����
'.$��DOO�VHYHULW\�
Q�U� ,0�UHJXODU�LQVXOLQ������8�NJ�)ROORZHG�E\�����8�NJ�T�K�,0�XQWLO�UHVROXWLRQ�RI�NHWRDFLGRVLV�DQG�%*�������PPRO�O�)ROORZ�E\��T�K��6&�
Q�U� Q�U� Q�U� 1R�PRUWDOLW\
$GXOW VWXGLHV%DVHWW\�������
&KDUW�UHYLHZQ ������ �����
'.$�RU�'.�ZLWKRXWDFLGRVLV��%LFDUERQDWH�����
6HYHUH�'.$,QFRPSOHWH�GDWD
%ROXV��������8�NJ�,9�UHJXODU�LQVXOLQ�DGGHG�WR�WKH�,9)�SOXV������8�NJ�,0)ROORZHG�E\�������8�NJ�T�K�,0�,I�%* GURS������PPRO�/�K����8�NJ�T�K $W�%*��������PPRO�/� GH[WURVH�VDOLQH�LQIXVLRQ�ZLWK���8�UHJXODU�LQVXOLQ VWDUWHG�
:LWK�SUHFLSLWDWLQJ�IDFWRUV�����������:LWKRXWSUHFLSLWDWLQJ�IDFWRUV������ ����
:LWK�SUHFLSLWDWLQJ�IDFWRUV������ ����8:LWKRXW�SUHFLSLWDWLQJ�IDFWRUV�������8
'.$���������'. �������
6DIH��QR PRUWDOLW\��QR�K\SRJO\FHPLD��(FRQRPLFDO
)LVKHU�������
,0�UHJXODUQ ��������������
6&�UHJXODUQ ��������������
,9�UHJXODUQ ��������������
'.$ Q�U� ,0�UHJXODU������8�NJ6&�UHJXODU������8�NJ,9�UHJXODU������8�NJ
5HSHDW�ORDGLQJ�GRVH�ZDV�JLYHQ�KRXUO\�WLOO�OHVV�WKDQ�����GHFOLQH�LQ�%*��)ROORZHG�E\���XQLWV�T�K�E\�UHVSHFWLYH�URXWHV
Q�U� �������8��� ��8���� ���8
QV
Q�U� ,0������QHHGHG���� ����QHHGHG���ORDGLQJ�GRVHV6&������QHHGHG���ORDGLQJ�GRVHV,9������QHHGHG���ORDGLQJ�GRVHV��KDG�IDVWHVW�LQLWLDO�UHVSRQVH1R�K\SRJO\FHPLD5HFRPPHQGHG�,9�EROXV�IROORZHG�E\�,0�UHJXODU�LQVXOLQ�IRU�'.$�PDQDJHPHQW
'.$��GLDEHWLF�NHWRDFLGRVLV� '.��GLDEHWLF�NHWRVLV� 5&7��UDQGRPLVHG�FRQWUROOHG�WULDO��6&��VXEFXWDQHRXV��,9��LQWUDYHQRXV��,0��LQWUDPXVFXODU��K��KRXU��,&8��LQWHQVLYH�FDUH�XQLW��
Q�U���QRW�UHSRUWHG
��
&OLQLFDO�+LVWRU\3RO\XULD��SRO\GLSVLDQRFWXULD��HQXUHVLV:HLJKW�ORVV1DXVHD��YRPLWLQJ��DEGRPLQDO�SDLQ:HDNQHVV��IDWLJXH&RQIXVLRQ��GHFUHDVHG�OHYHO�RI�FRQVFLRXVQHVV
&OLQLFDO�6LJQV'HK\GUDWLRQ'HHS�VLJKLQJ�UHVSLUDWLRQ��.XVVPDXO�6PHOO�RI�NHWRQHV/HWKDUJ\�GURZVLQHVV
%LRFKHPLFDO�IHDWXUHV��LQYHVWLJDWLRQV
.HWRQHV�LQ�XULQH,QFUHDVHG�EORRG�JOXFRVH$FLGHPLD��YS+�������+&2�����PPRO�/�8UHD��HOHFWURO\WHV2WKHU�LQYHVWLJDWLRQV�DV�QHHGHG
'LDJQRVLV�FRQILUPHG'LDEHWLF�.HWRDFLGRVLV&RQWDFW�VHQLRU�VWDII
6KRFN��UHGXFHG�SHULSKHUDO�SXOVHV��5HGXFHG�FRQVFLRXV�OHYHO�FRPD�
'HK\GUDWLRQ�!���1RW�LQ�VKRFN$FLGRWLF�K\SHUYHQWLODWLRQ�9RPLWLQJ
0LQLPDO�GHK\GUDWLRQ7ROHUDWLQJ�RUDO�IOXLGV
5HVXVFLWDWLRQ$LUZD\���1*�WXEH%UHDWKLQJ�������R[\JHQ�&LUFXODWLRQ������VDOLQH�������PO�NJ�RYHU�����K��UHSHDW�XQWLO�FLUFXODWLRQ�UHVWRUHG6HH�&(�PDQDJHPHQW
,9�7KHUDS\6DOLQH���������P/�NJ�RYHU���K��PD\�UHSHDW&DOFXODWH�IOXLG�UHTXLUHPHQWV&RUUHFW�IOXLG�GHILFLW�RYHU�������KRXUV�����
(&*�IRU�DEQRUPDO�7�ZDYHV$GG�.&O����PPRO�SHU�OLWHU�IOXLG
7KHUDS\6WDUW�ZLWK�6&�LQVXOLQ&RQWLQXH�RUDO�K\GUDWLRQ
&RQWLQXRXV�LQVXOLQ�LQIXVLRQ�DW����������XQLW�NJ�K�VWDUWLQJ���KRXU DIWHU�IOXLGV�LQLWLDWHG
&ULWLFDO�2EVHUYDWLRQV+RXUO\�EORRG�JOXFRVH+RXUO\�IOXLG�LQSXW��RXWSXW1HXURORJLFDO�VWDWXV�DW�OHDVW�KRXUO\(OHFWURO\WHV���KRXUO\�DIWHU�VWDUWLQJ�,9�IOXLG�WKHUDS\0RQLWRU�(&*�IRU�7�ZDYH�FKDQJHV
$FLGRVLV�QRW�LPSURYLQJ%ORRG�JOXFRVH����PPRO�/������PJ�G/�
RU%ORRG�JOXFRVH�IDOOV �PPRO�/�KRXU�����PJ�G/�
1HXURORJLFDO�GHWHULRUDWLRQ:$51,1*�6,*16�VHYHUH RU�SURJUHVVLYH�KHDGDFKH��VORZLQJ�KHDUW�UDWH��LUULWDELOLW\��FRQIXVLRQ��GHFUHDVHG�FRQVFLRXVQHVV���LQFRQWLQHQFH��VSHFLILF�QHXURORJLF�VLJQV
5H�HYDOXDWH,9�)OXLG�FDOFXODWLRQV,QVXOLQ�GHOLYHU\�V\VWHP�DQG�GRVH1HHG�IRU�DGGLWLRQDO�UHVXVFLWDWLRQ&RQVLGHU�VHSVLV
,9�7KHUDS\�&KDQJH�WR��������RU������VDOLQH��DGG�JOXFRVH�WR�IOXLGV������������WR�SUHYHQW�K\SRJO\FHPLD$GMXVW�VRGLXP�LQIXVLRQ�WR�SURPRWH�DQ�LQFUHDVH�LQ�PHDVXUHG�VHUXP�VRGLXP�
1R�LPSURYHPHQW
([FOXGH�K\SRJO\FHPLD,V�LW�FHUHEUDO�HGHPD"
&(�PDQDJHPHQW*LYH�PDQQLWRO�������J�NJ�RU����K\SHUWRQLF�VDOLQH$GMXVW�,9�IOXLGV�WR�PDLQWDLQ�QRUPDO�%3�EXW�DYRLG�RYHU�K\GUDWLRQ&DOO�VHQLRU�VWDII0RYH�WR�,&8&RQVLGHU�FUDQLDO�LPDJLQJ�RQO\�DIWHU�SDWLHQW�VWDELOLVLQJ�
,PSURYHG��&OLQLFDOO\�ZHOO��NHWRDFLGRVLV�UHVROYHGWROHUDWLQJ�RUDO�IOXLGV
7UDQVLWLRQ�WR�6&�,QVXOLQ6WDUW�6&�LQVXOLQ�WKHQ�VWRS�,9�LQVXOLQ�DIWHU�DQ�DSSURSULDWH�LQWHUYDO
)LJXUH����$OJRULWKP�IRU�PDQDJHPHQW�RI�'.$�DV�SHU�,63$'������JXLGHOLQHV��
�)OXLG�GHILFLW�WR�EH�FRUUHFWHG�RYHU�������KRXUV,9��LQWUDYHQRXV��6&��VXEFXWDQHRXV��,0��LQWUDPXVFXODU��%*��EORRG�JOXFRVH��+&2���VHUXP�ELFDUERQDWH
��
)LJXUH��� $OJRULWKP�IRU�PDQDJHPHQW�RI�'.$�RXWVLGH�WKH�,&8�RU�LQ�WKH�VHWWLQJ�RI�OLPLWHG�FDUH���������
,9��LQWUDYHQRXV��6&��VXEFXWDQHRXV��,0��LQWUDPXVFXODU��%*��EORRG�JOXFRVH��+&2���VHUXP�ELFDUERQDWH
&OLQLFDO�KLVWRU\3RO\XULD3RO\GLSVLD:HLJKW�ORVV��ZHLJK�$EGRPLQDO�SDLQ7LUHGQHVV��GHFUHDVHG�VHQVRULXP
&OLQLFDO�VLJQV$VVHVV�GHK\GUDWLRQ'HHS�VLJKLQJ�UHVSLUDWLRQ��.XVVPDXO���6PHOO�RI�NHWRQHV��OHWKDUJ\
%LRFKHPLFDO��LQYHVWLJDWLRQV(OHYDWHG�EORRG�JOXFRVH.HWRQHV�LQ�XULQH��$FLGRVLV��(OHFWURO\WHV��XUHD��FUHDWLQLQH
'LDJQRVLV�FRQILUPHG'LDEHWLF�.HWRDFLGRVLV&RQWDFW�VHQLRU�VWDII 8UJHQW�WUDQVSRUW�WR�DQRWKHU�
IDFLOLW\2UDO�UHK\GUDWLRQ�ZLWK�OLTXLGV�FRQWDLQLQJ�VDOW�DQG�ZDWHU��$GG�JOXFRVH�LI�%*����PPRO�/
6KRFN��5HGXFHG�FRQVFLRXVQHVV�
5HVXVFLWDWLRQ�QHHGHG6HH�)LJXUH�
,9�6DOLQH���������P/�NJ�RYHU���K��PD\�UHSHDW&DOFXODWH�DQG�FRUUHFW� IOXLG�GHILFLW�RYHU�������KRXUV(&*�IRU�DEQRUPDO�7�ZDYHV$GG�.&O����PPRO�SHU�OLWHU�IOXLG
,QVXOLQ�DYDLODEOH
&ULWLFDO�2EVHUYDWLRQV+RXUO\�EORRG�JOXFRVH��IOXLG�LQSXW��RXWSXW1HXURORJLFDO�VWDWXV�DW�OHDVW�KRXUO\(OHFWURO\WHV���KRXUO\�DIWHU�VWDUWLQJ�,9�IOXLG�WKHUDS\0RQLWRU�(&*�IRU�7�ZDYH�FKDQJHV$GG����JOXFRVH�LI�%*�����PPRO�/RU�UDWH�RI�%*�IDOO�!�PPRO�/$GMXVW�6RGLXP�FRQFHQWUDWLRQ�LQ�LQIXVLRQ��LI�XVLQJ�,9�IOXLGV�
'.$�UHVROYHG��7UDQVLWLRQ�WR�6&�LI�XVLQJ�,9�,QVXOLQ�$GG�EDVDO�,QVXOLQ�
7UDQVSRUW�0867 EH�DUUDQJHG
,9�LQVXOLQ�DYDLODEOH���VXLWDEOH"
,9�LQVXOLQ�LQIXVLRQ�DW������� ����8�NJ�KVWDUWLQJ���K�DIWHU�IOXLGV�LQLWLDWHG
6&�UDSLG�DFWLQJ�DQDORJ������8�NJ�HYHU\��� KUV�2U� ,0� UHJXODU�LQVXOLQ������8�NJ�HYHU\���KRXUV�HYHU\�����KRXUV�LI�UHTXLUHG�3UHIHU�,0�URXWH�LI�SRRU�WLVVXH�SHUIXVLRQ
<(6
1R�,9�)OXLGV
<(6
12
12
<(6
12
'HK\GUDWLRQ�!���QRW�LQ�VKRFN��9RPLWLQJ
0LQLPDO�GHK\GUDWLRQ7ROHUDWLQJ�RUDO�IOXLGV
2UDO�IOXLGV
�<��ƌĞƐŽůǀŝŶŐ
1RW�LPSURYLQJ
��
5HIHUHQFHV�
�� :ROIVGRUI� -,��*ODVHU�1��$JXV�0�� HW� DO�� ,63$'�&OLQLFDO�3UDFWLFH�&RQVHQVXV�*XLGHOLQHV�������'LDEHWLF� NHWRDFLGRVLV� DQG� WKH� K\SHUJO\FHPLF� K\SHURVPRODU� VWDWH��3HGLDWU�'LDEHWHV�� 2FW���������6XSSO�������������GRL���������SHGL�������� /)$&�� ,')�� ,63$'�� 3RFNHWERRN IRU� 0DQDJHPHQW� RI� 'LDEHWHV� LQ� &KLOGKRRG� DQG�$GROHVFHQFH�LQ�8QGHU�5HVRXUFHG�&RXQWULHV���QG�(GLWLRQ�������� .XSSHUPDQQ�1��*ODVHU�16��)OXLG�,QIXVLRQ�5DWHV�IRU�3HGLDWULF�'LDEHWLF�.HWRDFLGRVLV��1�(QJO�-�0HG��6HS����������������������������GRL���������1(-0F��������� :ROIVGRUI� -�� 1HLWKHU� IOXLG� UDWH� QRU� VRGLXP� FRQWHQW� DIIHFW� QHXURFRJQLWLYH� RXWFRPHV� LQ�'.$��-�3HGLDWU��0DU�������������������GRL���������M�MSHGV�������������� 6ZDQ�./��:HLQ]LPHU�6$��']LXUD�-'��HW�DO��(IIHFW�RI�SXEHUW\�RQ� WKH�SKDUPDFRG\QDPLF�DQG�SKDUPDFRNLQHWLF�SURSHUWLHV�RI�LQVXOLQ�SXPS�WKHUDS\�LQ�\RXWK�ZLWK�W\SH���GLDEHWHV��'LDEHWHV�&DUH��-DQ������������������GRL���������GF��������� &RGQHU� (�� $FHULQL� &/�� &UDLJ� 0(�� +RIHU� 6(�� 0DDKV� '0�� ,63$'� &OLQLFDO� 3UDFWLFH�&RQVHQVXV�*XLGHOLQHV�������/LPLWHG�&DUH�*XLGDQFH�$SSHQGL[��3HGLDWU�'LDEHWHV��2FW���������6XSSO�������������GRL���������SHGL�������� YRQ�2HWWLQJHQ�-(��5KRGHV�(7��:ROIVGRUI�-,��5HVROXWLRQ�RI�NHWRDFLGRVLV�LQ�FKLOGUHQ�ZLWK�QHZ�RQVHW�GLDEHWHV��(YDOXDWLRQ�RI�YDULRXV�GHILQLWLRQV��'LDEHWHV�5HV�&OLQ�3UDFW��-DQ�����������������GRL���������M�GLDEUHV�������������� 6WHLQHU� 0-�� 'H:DOW� '$�� %\HUOH\� -6�� ,V� WKLV� FKLOG� GHK\GUDWHG"� -$0$�� -XQ� ������������������������GRL���������MDPD�������������� &RKHQ� 0�� /HLERYLW]� 1�� 6KLOR� 6�� =XFNHUPDQ�/HYLQ� 1�� 6KDYLW� ,�� 6KHKDGHK� 1��6XEFXWDQHRXV� UHJXODU� LQVXOLQ� IRU� WKH� WUHDWPHQW� RI� GLDEHWLF� NHWRDFLGRVLV� LQ� FKLOGUHQ�� 3HGLDWU�'LDEHWHV��-XQ���������������������GRL���������SHGL��������� )LVKHU� -1�� 6KDKVKDKDQL� 01�� .LWDEFKL� $(�� 'LDEHWLF� NHWRDFLGRVLV�� ORZ�GRVH� LQVXOLQ�WKHUDS\� E\� YDULRXV� URXWHV�� 1� (QJO� -� 0HG�� $XJ� �� ��������������������GRL���������QHMP������������������ :+2�� 0RGHV� RI� WUDQVPLVVLRQ� RI� YLUXV� FDXVLQJ� &29,'����� LPSOLFDWLRQV� IRU� ,3&�SUHFDXWLRQ�UHFRPPHQGDWLRQV�����0DUFK��������� 'RQJ�<��0R�;��+X�<�� HW� DO�� (SLGHPLRORJ\� RI� &29,'����$PRQJ�&KLOGUHQ� LQ� &KLQD��3HGLDWULFV��0DU���������GRL���������SHGV������������� &DVWDJQROL�5��9RWWR�0��/LFDUL�$��HW�DO��6HYHUH�$FXWH�5HVSLUDWRU\�6\QGURPH�&RURQDYLUXV����6$56�&R9����,QIHFWLRQ�LQ�&KLOGUHQ�DQG�$GROHVFHQWV��$�6\VWHPDWLF�5HYLHZ��-$0$�3HGLDWU�$SU���������GRL���������MDPDSHGLDWULFV������������� 2JLPL�&��(QJOXQG�-$��%UDGIRUG�0&��4LQ�;��%RHFNK�0��:DJKPDUH�$��&KDUDFWHULVWLFV�DQG� 2XWFRPHV� RI� &RURQDYLUXV� ,QIHFWLRQ� LQ� &KLOGUHQ�� 7KH� 5ROH� RI� 9LUDO� )DFWRUV� DQG� DQ�,PPXQRFRPSURPLVHG� 6WDWH�� -� 3HGLDWULF� ,QIHFW� 'LV� 6RF�� 0DU� ��� �����������������GRL���������MSLGV�SL[������ ,63$'��,,�6XPPDU\�RI�UHFRPPHQGDWLRQV�UHJDUGLQJ�&29,'����LQ�FKLOGUHQ�ZLWK�GLDEHWHV��.HHS�&DOP�DQG�0LQG�\RXU�'LDEHWHV�&DUH�DQG�3XEOLF�+HDOWK�$GYLFH�����0DUFK���������� /D]]HULQL�0��%DUEL�(��$SLFHOOD�$��0DUFKHWWL�)��&DUGLQDOH�)��7URELD�*��'HOD\HG�DFFHVV�RU�SURYLVLRQ�RI�FDUH�LQ�,WDO\�UHVXOWLQJ�IURP�IHDU�RI�&29,'�����/DQFHW�&KLOG�$GROHVF�+HDOWK��0D\�����������H���H����GRL���������V����������������������� /DIIHO�/0��/LPEHUW�&��3KHODQ�+��9LUPDQL�$��:RRG�-��+RIHU�6(��,63$'�&OLQLFDO�3UDFWLFH�&RQVHQVXV�*XLGHOLQHV� ������ 6LFN� GD\�PDQDJHPHQW� LQ� FKLOGUHQ� DQG� DGROHVFHQWV�ZLWK� GLDEHWHV��3HGLDWU�'LDEHWHV��2FW���������6XSSO�������������GRL���������SHGL������
��
��� %ULQN� 6-�� :DUUHQ� /HH� :5�� 3LOOD\� .�� .OLHQHEUHLO /�� 'LDEHWHV� LQ� &KLOGUHQ� DQG�$GROHVFHQWV�� %DVLF� 7UDLQLQJ� IRU� +HDOWKFDUH� 3URIHVVLRQDOV� LQ� 'HYHORSLQJ� &RXQWULHV�� �QG� HG��,63$'�DQG�&'L&���������� %ULQN� 6-�� 3DHGLDWULF� DQG� DGROHVFHQW� GLDEHWLF� NHWRDFLGRVLV�� 3UDFWLFDO� 'LDEHWHV����������������±���D��GRL���������SGL�������� 5DYH�.��+HLVH�7��:H\HU�&��HW�DO��,QWUDPXVFXODU�YHUVXV�VXEFXWDQHRXV�LQMHFWLRQ�RI�VROXEOH�DQG� OLVSUR� LQVXOLQ�� FRPSDULVRQ� RI� PHWDEROLF� HIIHFWV� LQ� KHDOWK\� VXEMHFWV�� 'LDEHW� 0HG�� 6HS��������������������GRL����������VLFL����������������������������$LG�GLD���!����&R���Y��� +RPNR� &�� 'HOX]LR� $�� -LPHQH]� &�� .RODF]\QVNL� -:�� %RGHQ� *�� &RPSDULVRQ� RI� LQVXOLQ�DVSDUW�DQG� OLVSUR��SKDUPDFRNLQHWLF�DQG�PHWDEROLF�HIIHFWV��'LDEHWHV�&DUH�� -XO���������������������GRL���������GLDFDUH������������� 5D]DYL� =�� 0DKHU� 6�� )UHGPDO� -�� &RPSDULVRQ� RI� VXEFXWDQHRXV� LQVXOLQ� DVSDUW� DQG�LQWUDYHQRXV� UHJXODU� LQVXOLQ� IRU� WKH� WUHDWPHQW� RI� PLOG� DQG� PRGHUDWH� GLDEHWLF� NHWRDFLGRVLV� LQ�SHGLDWULF�SDWLHQWV��(QGRFULQH��$XJ���������������������GRL���������V���������������]��� 'HOOD�0DQQD�7��6WHLQPHW]�/��&DPSRV�35��HW�DO��6XEFXWDQHRXV�XVH�RI�D�IDVW�DFWLQJ�LQVXOLQ�DQDORJ��DQ�DOWHUQDWLYH�WUHDWPHQW�IRU�SHGLDWULF�SDWLHQWV�ZLWK�GLDEHWLF�NHWRDFLGRVLV��'LDEHWHV�&DUH��$XJ���������������������GRL���������GLDFDUH������������� .DUROL�5��)DWLPD�-��6DOPDQ�7��6DQGKX�6��6KDQNDU�5��0DQDJLQJ�GLDEHWLF�NHWRDFLGRVLV�LQ�QRQ�LQWHQVLYH�FDUH�XQLW�VHWWLQJ��5ROH�RI�LQVXOLQ�DQDORJV��,QGLDQ�-�3KDUPDFRO��-XO���������������������GRL��������������������������� (UVR]�+2��8NLQF�.��.RVH�0��HW�DO��6XEFXWDQHRXV�OLVSUR�DQG�LQWUDYHQRXV�UHJXODU�LQVXOLQ�WUHDWPHQWV� DUH� HTXDOO\� HIIHFWLYH� DQG� VDIH� IRU� WKH� WUHDWPHQW� RI� PLOG� DQG� PRGHUDWH� GLDEHWLF�NHWRDFLGRVLV� LQ� DGXOW� SDWLHQWV�� ,QW� -� &OLQ� 3UDFW�� $SU� ������������������� GRL���������M����������������������[��� 8PSLHUUH]�*(��/DWLI�.��6WRHYHU�-�� HW� DO��(IILFDF\�RI� VXEFXWDQHRXV� LQVXOLQ� OLVSUR�YHUVXV�FRQWLQXRXV� LQWUDYHQRXV� UHJXODU� LQVXOLQ� IRU� WKH� WUHDWPHQW�RI�SDWLHQWV�ZLWK� GLDEHWLF�NHWRDFLGRVLV��$P�-�0HG��6HS����������������������GRL���������M�DPMPHG��������������� 8PSLHUUH]�*(��&XHUYR�5��.DUDEHOO�$��/DWLI�.��)UHLUH�$;��.LWDEFKL�$(��7UHDWPHQW� RI�GLDEHWLF�NHWRDFLGRVLV�ZLWK�VXEFXWDQHRXV�LQVXOLQ�DVSDUW��'LDEHWHV�&DUH��$XJ��������������������GRL���������GLDFDUH������������� $QGUDGH�&DVWHOODQRV� &$�� &ROXQJD�/R]DQR� /(�� 'HOJDGR�)LJXHURD� 1�� *RQ]DOH]�3DGLOOD�'$��6XEFXWDQHRXV�UDSLG�DFWLQJ�LQVXOLQ�DQDORJXHV�IRU�GLDEHWLF�NHWRDFLGRVLV��&RFKUDQH�'DWDEDVH�6\VW�5HY��-DQ�������������&G��������GRL������������������&'�������SXE���� &RKQ� %*�� .HLP� 60�� :DWNLQV� -:�� &DPDUJR� &$�� 'RHV� 0DQDJHPHQW� RI� 'LDEHWLF�.HWRDFLGRVLV�ZLWK�6XEFXWDQHRXV�5DSLG�DFWLQJ�,QVXOLQ�5HGXFH�WKH�1HHG�IRU�,QWHQVLYH�&DUH�8QLW�$GPLVVLRQ"�-�(PHUJ�0HG��2FW�������������������GRL���������M�MHPHUPHG��������������� 9LQFHQW�0��1REHFRXUW�(��7UHDWPHQW�RI�GLDEHWLF�NHWRDFLGRVLV�ZLWK� VXEFXWDQHRXV� LQVXOLQ�OLVSUR�� D� UHYLHZ� RI� WKH� FXUUHQW� HYLGHQFH� IURP� FOLQLFDO� VWXGLHV�� 'LDEHWHV� 0HWDE�� 6HS���������������������GRL���������M�GLDEHW��������������� 0RVHOH\�-��'LDEHWLF�FULVHV�LQ�FKLOGUHQ�WUHDWHG�ZLWK�VPDOO�GRVHV�RI�LQWUDPXVFXODU�LQVXOLQ��%U 0HG�-��-DQ������������������������GRL���������EPM������������� %DVHWW\� 6�� <HVKYDQWK� .XPDU� *6�� 6KDOLQL� 0�� $QJHOLQH� 53�� 'DYLG� .9�� $EUDKDP� 6��0DQDJHPHQW� RI� GLDEHWLF� NHWRVLV� DQG� NHWRDFLGRVLV�ZLWK� LQWUDPXVFXODU� UHJXODU� LQVXOLQ� LQ� D� ORZ�UHVRXUFH� IDPLO\� PHGLFLQH� VHWWLQJ�� -� )DPLO\� 0HG� 3ULP� &DUH�� -DQ�0DU� �����������������GRL�������������������������