/HVVRQ
2%6(59$7,21$1',1)(5(1&(
6XEMHFWV
6NLOOV
6WUDWHJLHV
VFLHQFH VRFLDO VWXGLHV ODQJXDJH DUWV
NQRZOHGJH FRPSUHKHQVLRQ DSSOLFDWLRQ DQDO\VLV HYDOXDWLRQ
VFLHQWLILF LQTXLU\ GHFLVLRQ PDNLQJ REVHUYDWLRQ SUREOHP VROYLQJ
ZULWLQJ
'XUDWLRQ
&ODVV 6L]H
WR PLQXWHV
6WRQH JRUJHW IURP %XQFRPEH &RXQW\
DQ\ JURXSV RI WR 1RUWK &DUROLQD FD $' 2EMHFWLYHV
,QWKHLUVWXG\RIREVHUYDWLRQDQGLQIHUHQFHVWXGHQWVZLOOXVHDFWLYLW\VKHHWVDQGFRLQVWR
‡ GLIIHUHQWLDWHEHWZHHQREVHUYDWLRQDQGLQIHUHQFHWKURXJKDSUREOHPVROYLQJDSSURDFK
‡ GHPRQVWUDWHWKHLUNQRZOHGJHE\DQDO\]LQJDQDUFKDHRORJLFDODUWLIDFWDQGFUHDWLQJWKHLU
RZQREVHUYDWLRQLQIHUHQFHVWDWHPHQWV
0DWHULDOV
¦$OJRQNLDQ%RDW%XLOGLQJ§DFWLYLW\VKHHWDQGPDVWHUDQG¦$&RORQLDO&RLQ§DFWLYLW\VKHHWIRU
HDFKVWXGHQWDQGRUWUDQVSDUHQFLHVRIHDFK$FROOHFWLRQRIIRUHLJQRU86FRLQVRQHIRUHDFK
VWXGHQWRUWHDP
9RFDEXODU\
$UWLIDFWDQ\REMHFWPDGHPRGLILHGRUXVHGE\KXPDQVXVXDOO\WKLVWHUPUHIHUVWRDSRUWDEOH
LWHP
'DWDLQIRUPDWLRQHVSHFLDOO\LQIRUPDWLRQRUJDQL]HGIRUDQDO\VLV
+\SRWKHVLVDSURSRVHGH[SODQDWLRQRULQWHUSUHWDWLRQWKDWFDQEHWHVWHGE\IXUWKHULQYHVWLJDWLRQ
,QIHUHQFHDFRQFOXVLRQGHULYHGIURPREVHUYDWLRQV
2EVHUYDWLRQWKHDFWRIUHFRJQL]LQJRUQRWLQJDIDFWRURFFXUUHQFHRUWKHUHFRUGREWDLQHGE\VXFK
DQDFW
6LWHDSODFHZKHUHKXPDQDFWLYLWLHVRFFXUUHGDQGPDWHULDOHYLGHQFHRIWKRVHDFWLYLWLHVZDVOHIW
%DFNJURXQG
6FLHQFHLVEDVHGRQREVHUYDWLRQDQGLQIHUHQFH$Q\SKHQRPHQRQEHLQJVWXGLHGPXVWILUVWEH
REVHUYHGZKHWKHULWEHIURPDVDWHOOLWHRUWKURXJKDPLFURVFRSH$QLQIHUHQFHLVDUHDVRQ
SURSRVHGWRH[SODLQDQREVHUYDWLRQ7KHK\SRWKHVLVLVDFKRVHQLQIHUHQFHWKDWWKHVFLHQWLVWZLOO
DWWHPSWWRFRQILUPRUGLVSURYHWKURXJKWHVWLQJ
$UFKDHRORJLVWVXVHREVHUYDWLRQDQGLQIHUHQFHWROHDUQWKHVWRU\RISDVWSHRSOH%\PDNLQJ
REVHUYDWLRQVDERXWREMHFWVDUWLIDFWVDQGVLWHVWKH\LQIHUWKHEHKDYLRURIWKHSHRSOHZKRXVHGWKH
REMHFWV:KHQDUFKDHRORJLVWVILQGWKHUHPDLQVRIDFRDVWDO$OJRQNLDQYLOODJHREVHUYDWLRQWKH\
FRXOGLQIHUWKDWWKHSHRSOHZHUHIDUPHUV7RWHVWWKDWLQIHUHQFHK\SRWKHVLVWKH\ZRXOGORRNIRU
HYLGHQFHRIIDUPLQJVXFKDVIDUPLQJLPSOHPHQWVOLNHVWRQHKRHVDQGIRRGUHPDLQVIURPFURSV
,175,*8( 2) 7+( 3$67
OLNHFRUQFREVDQGVTXDVKVHHGV,IWKH\ILQGWKHVHWKLQJVWKHLUK\SRWKHVLVLVYHULILHG
$UFKDHRORJLVWVFRQVWUXFWFDUHIXOK\SRWKHVHVZKHQPDNLQJLQIHUHQFHVIURPDUFKDHRORJLFDOGDWD
6HWWLQJWKH6WDJH
3UHVHQWVWXGHQWVZLWKDSRVVLEOHREVHUYDWLRQLQIHUHQFHVFHQDULRIURPWKHLUOLYHV([DPSOH
$OOWKHVWXGHQWVLQWKHFODVVURRPFDPHWRVFKRRORQ7XHVGD\EXWGLGQRWFRPHRQ0RQGD\
REVHUYDWLRQ
:KDWPDQ\DQGYDULHGUHDVRQVSURSRVHGLQIHUHQFHVPLJKWWKHUHEHIRUWKHLUDEVHQFHRQ
0RQGD\"([DPSOHVKROLGD\VOHHWVWRUPWHDFKHUZRUNGD\ILUHDWVFKRRO6XQGD\QLJKW
,QZKDWZD\VPLJKWRQHRUPRUHRIWKHVHLQIHUHQFHVK\SRWKHVHVEHWHVWHGLQRUGHUWRFRPH
WRDFRQFOXVLRQDERXWWKHDEVHQFH"([DPSOHV/RRNDWWKHFDOHQGDUWRVHHLIWKHUHZDVDKROLGD\
RQ0RQGD\FKHFNWKHZHDWKHUUHSRUWDVNWKHWHDFKHULI0RQGD\ZDVDWHDFKHUZRUNGD\DVNWKH
ORFDOILUHGHSDUWPHQWLIWKH\UHVSRQGHGWRDILUHDWWKHVFKRRO6XQGD\
3URFHGXUH
)RU¦$OJRQNLDQ%RDW%XLOGLQJ§
D3URMHFWRUGLVWULEXWHWKHPDVWHURIWKH¦$OJRQNLDQ%RDW%XLOGLQJ§3URMHFWRUGLVWULEXWH
WKH¦$OJRQNLDQ%RDW%XLOGLQJ§DFWLYLW\VKHHW
E5HDGHDFKVWDWHPHQWDQGDVNVWXGHQWVWRGHFLGHLILWLVDVWDWHPHQWRIREVHUYDWLRQRURI
LQIHUHQFH$VNWKHPWRJLYHUHDVRQVIRUWKHLUDQVZHUV
F+RZPLJKWRQHRUPRUHRIWKHLQIHUHQFHVK\SRWKHVHVEHWHVWHG"
G$VVLVWVWXGHQWVWRFUHDWHDGHILQLWLRQIRUREVHUYDWLRQLQIHUHQFHDQGK\SRWKHVLV
)RU¦$&RORQLDO&RLQ§
D3URMHFWRUGLVWULEXWHWKHDFWLYLW\VKHHW¦$&RORQLDO&RLQ§DQGH[SODLQWKDWWKHFRLQZDV
IRXQGE\DQDUFKDHRORJLVWDWWKH1RUWK&DUROLQDVLWHRI%UXQVZLFN7RZQZKLFKZDV
RFFXSLHGGXULQJWKHV
E:KLFKVWDWHPHQWVDUHREVHUYDWLRQVDQGZKLFKDUHLQIHUHQFHV":KLFKREVHUYDWLRQLVHDFK
LQIHUHQFHEDVHGRQ"
F0DQ\GLIIHUHQWLQIHUHQFHVDUHSRVVLEOHIURPRQHREVHUYDWLRQ:KDWRWKHULQIHUHQFHV
PLJKWEHPDGHIURPREVHUYLQJWKLVFRLQ"
G&KRRVHRQHLQIHUHQFHK\SRWKHVLVDQGWKLQNRIZD\VDUFKDHRORJLVWVPLJKWWHVWLWE\
ORRNLQJDWRWKHUHYLGHQFHDWWKHVLWHHJLISHRSOHDUHSHDFHORYLQJDUFKDHRORJLVWV
ZRXOGQRWH[SHFWWRILQGDORWRIZHDSRQVRUSURWHFWLYHJHDU
&ORVXUH
$VNVWXGHQWVWRVXPPDUL]HZKDWWKH\OHDUQHGDERXWWKHLPSRUWDQFHRIREVHUYDWLRQLQIHUHQFH
DQGK\SRWKHVLVWHVWLQJLQDUFKDHRORJ\
(YDOXDWLRQ
$VNHDFKVWXGHQWWREHDQDUFKDHRORJLVW
*LYHHDFKVWXGHQWRUWHDPDIRUHLJQRU86FRLQDQGDVNWKHPWRLPDJLQHWKH\KDYHIRXQG
WKHFRLQDWDQDUFKDHRORJLFDOVLWH
$VNWKHPWRFUHDWHDOLVWRIREVHUYDWLRQVWDWHPHQWVDQGLQIHUHQFHVWDWHPHQWVDERXWWKHFRLQ
+DYHWKHPFKRRVHRQHLQIHUHQFHDVWKHLUK\SRWKHVLVDQGGHVFULEHKRZWKH\PLJKWWHVWLW
&ROOHFWDQGFRUUHFWWKHLUVWDWHPHQWV
/(6621 2%6(59$7,21 $1' ,1)(5(1&(
/LQNV
/HVVRQ¦$UWLIDFW&ODVVLILFDWLRQ§
6RXUFHV
+XOWRQ3DXO$PHULFD7KH&RPSOHWH'UDZLQJVRI-RKQ:KLWH&KDSHO+LOO
8QLYHUVLW\RI1RUWK&DUROLQD3UHVV
6PLWK6KHOOH\--HDQQH00RH.HOO\$/HWWVDQG'DQLHOOH03DWHUVRQ,QWULJXHRIWKH
3DVW$7HDFKHU©V$FWLYLW\*XLGHIRU)RXUWKWKURXJK6HYHQWK*UDGHV:DVKLQJWRQ'&
%XUHDXRI/DQG0DQDJHPHQW86'HSDUWPHQWRIWKH,QWHULRU>7KLVOHVVRQLVDGDSWHGIURP
¦2EVHUYDWLRQDQG,QIHUHQFH§RQSS¤FRXUWHV\RIWKH%XUHDXRI/DQG0DQDJHPHQW@
:DUG+7UDZLFNDQG536WHSKHQ'DYLV-U7LPH%HIRUH+LVWRU\7KH$UFKDHRORJ\RI
1RUWK&DUROLQD&KDSHO+LOO8QLYHUVLW\RI1RUWK&DUROLQD3UHVV>7KHLPDJHLQWKLVOHVVRQ©V
PDLQKHDGLQJLVWDNHQIURP)LJXUH@
¦$OJRQNLDQ %RDW %XLOGLQJ§ $FWLYLW\ 6KHHW $QVZHUV
REVHUYDWLRQ REVHUYDWLRQ LQIHUHQFH REVHUYDWLRQ LQIHUHQFH LQIHUHQFH REVHUYDWLRQ LQIHUHQFH REVHUYDWLRQ LQIHUHQFH LQIHUHQFH REVHUYDWLRQ LQIHUHQFH REVHUYDWLRQ LQIHUHQFH LQIHUHQFH LQIHUHQFH REVHUYDWLRQ LQIHUHQFH LQIHUHQFH
¦$ &RORQLDO &RLQ§ $FWLYLW\ 6KHHW $QVZHUV
REVHUYDWLRQ REVHUYDWLRQ REVHUYDWLRQ LQIHUHQFH REVHUYDWLRQ LQIHUHQFH LQIHUHQFH
(QJUDYLQJRULJLQDOO\SXEOLVKHGE\7KHRGRU'H%U\LQEDVHGRQDSDLQWLQJE\-RKQ:KLWHPDGHLQ
$OJRQNLDQ%RDW%XLOGLQJ
,175,*8( 2) 7+( 3$67
/(6621 2%6(59$7,21 $1' ,1)(5(1&(
$OJRQNLDQ%RDW%XLOGLQJ
1DPH
3ODFHDQ¦,§EHIRUHWKHVWDWHPHQWVWKDWDUHLQIHUHQFHVDQGDQ¦2§EHIRUHWKHVWDWHPHQWVWKDWDUH
REVHUYDWLRQV
7KHUHDUHIRXUPHQLQWKHSLFWXUH
7KHWZRPHQQHDUWKHILUHVDUHIDQQLQJWKHILUHV
,WLVVXPPHU
7KHWUHHRQWKHJURXQGKDVQROHDYHVRQLW
7KHWUHHRQWKHJURXQGLVDKXQGUHG\HDUVROG
6TXLUUHOVOLYHGLQWKHWUHHRQWKHJURXQG
7KHUHLVDORZILUHDWWKHEDVHRIDVWDQGLQJWUHH
2QHRIWKHPHQVWDUWHGWKHILUHDWWKHERWWRPRIWKHWUHH
7KDWWUHHOLNHWKHRQHRQWKHJURXQGLVDWDOOWKLFNWUHH
7KHPHQZDQWWDOOWKLFNWUHHVVRWKH\FDQEXLOGERDWV
7ZRPHQDUHPDNLQJDORQJFDYLW\LQDWUHHWUXQNE\OHWWLQJILUHEXUQWKHZRRGDZD\
7KHKROORZHGWUHHLVUDLVHGRIIWKHJURXQGE\IRUNHGWUHHSRVWV
7KHWZRPHQDWWKHKROORZWUHHWUXQNDUHIULHQGV
7KHPHQ©VKDLULVVKRUWH[FHSWIRUWKHORQJHUVWULSLQWKHPLGGOH
7KHILUHVZLOOEXUQWKHZKROHIRUHVWGRZQ
'HHUOLYHQHDUE\LQWKHZRRGV
7KHPHQDUHWLUHG
7KHWUHHZLWKWKHILUHLQWKHFDYLW\KDVQREDUN
6PRNHLVJHWWLQJLQWRWKHPHQ©VH\HV
7KHPHQDUHFORVHWRWKHLUYLOODJH
,175,*8( 2) 7+( 3$67
$&RORQLDO&RLQ
1DPH
3ODFHDQ¦,§EHIRUHWKHVWDWHPHQWVWKDWDUHLQIHUHQFHVDQGDQ¦2§EHIRUHWKHVWDWHPHQWVWKDWDUH
REVHUYDWLRQV
7KHUHLVDUHSUHVHQWDWLRQRIDIDFHRQRQHVLGHRIWKHFRLQ
7KHZRUGVSULQWHGRQERWKVLGHVRIWKHFRLQDUH/DWLQ
7KH/DWLQZRUG¦'HL§PHDQV¦*RG§
7KHFRLQZDVPDGHE\GHHSO\UHOLJLRXVSHRSOH
7KHGDWHLVSULQWHGRQRQHVLGHRIWKHFRLQ
7KHFRLQZDVPDGHLQ
7KHIDFHRQWKHFRLQLVDUHSUHVHQWDWLRQRIWKHQDWLRQ©VSUHVLGHQW