6+2:&$6(215(6($5&+
0RRQOLJKWLQJ5LERVRPDO3URWHLQV7KH&RQWURO
RIS9LDWKH1XFOHRODU6XUYHLOODQFH3DWKZD\
(ODLQH6DQLM1DGLQH+HLQDQG5RVV'+DQQDQ
5HVHDUFK'LYLVLRQ3HWHU0DF&DOOXP&DQFHU&HQWUH6W$QGUHZV3ODFH(DVW0HOERXUQH9,&
'HSDUWPHQWRI%LRFKHPLVWU\DQG0ROHFXODU%LRORJ\8QLYHUVLW\RI0HOERXUQH9,&
'HSDUWPHQWRI%LRFKHPLVWU\DQG0ROHFXODU%LRORJ\0RQDVK8QLYHUVLW\9,&
&RUUHVSRQGLQJDXWKRUURVVKDQQDQ#SHWHUPDFRUJ
,QWURGXFWLRQ
7KHQXFOHROXVZKLFKKDVORQJEHHQFRQVLGHUHGVLPSO\WKH
VLWHRIWUDQVFULSWLRQRIWKHULERVRPDOJHQHVLVLQFUHDVLQJO\
EHLQJ VHHQ DV DQ LPSRUWDQW KXE IRU FRQWUROOLQJ PDQ\
FHOOXODU IXQFWLRQV LQ DGGLWLRQ WR ULERVRPH ELRJHQHVLV
&HQWUDOWRWKHVH¶H[WUDULERVRPDOIXQFWLRQV·LVWKHQXFOHRODU
VXUYHLOODQFH SDWKZD\ ZKLFK UHJXODWHV S IXQFWLRQ LQ
UHVSRQVH WR QXFOHRODU VWUHVV ,QGHHG LW LV QRZ DSSDUHQW
WKDW DQ HODERUDWH VHQVLQJ PHFKDQLVP H[LVWV WR PRQLWRU
ULERVRPH ELRJHQHVLVDVVHPEO\ DQG QXFOHRODU IRUPDWLRQ
WKDW LV FRXSOHG WR FHOO VXUYLYDO DQG VHQHVFHQFH WKURXJK
H[WUDULERVRPDO IXQFWLRQV RI ULERVRPDO SURWHLQV ,Q WKLV
EULHIUHYLHZZHHODERUDWHRQWKLVSURFHVVDQGGHVFULEHKRZ
ULERVRPHELRJHQHVLVWKURXJKFRQWURORIWKHQXFOHROXVOLHV
DWWKHFURVVURDGVLQWKHFRQWURORIGLYHUVHIXQFWLRQVVXFKDV
JURZWKJHQRPLFVWDELOLW\VHQHVFHQFHDQGVXUYLYDO
RFFXUVLQWKHQXFOHROXVDQXFOHDUVXEFRPSDUWPHQWWKDW
VSHFLDOLVHVLQULERVRPHSURGXFWLRQ(IÀFLHQWSURGXFWLRQRI
ULERVRPHVUHTXLUHVWKHFRRUGLQDWHGUHJXODWLRQDQGDFWLYLW\
RIWKHWKUHH51$SRO\PHUDVHV3RO3RO,WUDQVFULEHVWKH
FRSLHV RI ULERVRPDO 51$ JHQHV U'1$ WR SURGXFH
WKH6SUHFXUVRURIWKH66DQG6ULERVRPDO51$V
U51$VZKLFKWRJHWKHUZLWKWKH6U51$IRUPWKH51$
EDFNERQHRIWKHULERVRPH7KLVSURFHVVLVFRQVLGHUHGWREH
WKHÀUVWVWHSLQULERVRPHELRJHQHVLVDQGDFFRXQWVIRU
RI DOO QXFOHDU WUDQVFULSWLRQ LQ HXNDU\RWHV LQFOXGLQJ
\HDVW SODQWV DQG DQLPDOV 2Q WKH RWKHU KDQG 3RO ,,
LV UHTXLUHG WR WUDQVFULEH WKH JHQHV HQFRGLQJ ULERVRPDO
SURWHLQV53VDQGRWKHUDX[LOLDU\SURWHLQVQHFHVVDU\IRU
SURFHVVLQJPDWXUDWLRQDQGSRVWWUDQVODWLRQDOPRGLÀFDWLRQ
RIWKHU51$V,QDGGLWLRQ3RO,,,V\QWKHVLVHVWKH6U51$
WKHW51$VDVZHOODVDQXPEHURIVPDOOQXFOHRODU51$V
VQR51$V LQYROYHG LQ WKH SURFHVVLQJ DQG DVVHPEO\ RI
5LERVRPH%LRJHQHVLVDQG7UDQVFULSWLRQRI5LERVRPDO
WKHULERVRPH
*HQHV
7KH KXPDQ JHQRPH KDV RYHU FRSLHV RI WKH U51$
5LERVRPH DYDLODELOLW\ LV RQH RI WKH PRVW IXQGDPHQWDO JHQHV DUUDQJHG LQ DUUD\V RI WDQGHP UHSHDWV 7KHVH
UDWHOLPLWLQJVWHSVIRUFHOOJURZWKDQGSUROLIHUDWLRQ7KH FOXVWHUVRIU'1$DUHORFDWHGRQWKHVKRUWDUPVRIWKHÀYH
DVVHPEO\ RI WKH WZR ULERVRPDO VXEXQLWV 6 DQG 6 DFURFHQWULF FKURPRVRPHV NQRZQ DV QXFOHRODU RUJDQLVHU
)LJ7KHQXFOHRODURUJDQLVHUUHJLRQV125VDUHHLWKHUWUDQVFULSWLRQDOO\DFWLYHRUVLOHQW
&RPELQHGLPPXQRÁXRUHVFHQFHRIWKHULERVRPDOJHQHVSHFLÀFWUDQVFULSWLRQIDFWRU8%)DQGÁXRUHVFHQWLQVLWX
K\EULGLVDWLRQ),6+DQDO\VLVRIULERVRPDOJHQHVU'1$LQLQWHUSKDVLFSULPDU\KXPDQÀEUREODVWV8%)ZDV
YLVXDOLVHGZLWKDQWL8%)UDEELWVHUDLQKRXVHDQWLERG\DQGDQ$OH[DÁXRUFRQMXJDWHGVHFRQGDU\DQWLERG\UHG
U'1$ZDVGHWHFWHGXVLQJDELRWLQODEHOHGSUREHWRWKHLQWHUJHQLFVSDFHUNLQGO\SURYLGHGE\3URIHVVRU%0F6WD\
1DWLRQDO8QLYHUVLW\RI,UHODQGDQGYLVXDOLVHGXVLQJ$OH[DÁXRUFRQMXJDWHGVWUHSWDYLGLQJUHHQ$FWLYH125VDUH
DVVRFLDWHGZLWK8%)ZKLOHVLOHQW125VDUHSUHVHQWDWLYH125LVLQGLFDWHGE\WKHDUURZDUHGHYRLGRI8%)1XFOHL
ZHUHYLVXDOLVHGE\'$3,EOXH
3DJH
$8675$/,$1%,2&+(0,67
9RO1R'HFHPEHU
&RQWURORISYLDWKH1XFOHRODU
6XUYHLOODQFH3DWKZD\
6+2:&$6(21
5(6($5&+
UHJLRQV 125V 'XULQJ ODWH WHORSKDVH WKH QXFOHROL
EHJLQ WR IRUP DURXQG DFWLYHO\ WUDQVFULEHG 125V $V WKH
FHOOV SURJUHVV WKURXJK WKH * SKDVH RI WKH FHOO F\FOH WKH
QXFOHROL DFTXLUH WKHLU PDWXUH IXQFWLRQDO PRUSKRORJ\
,Q SURSKDVH WKH QXFOHROL EHJLQ WR GLVDVVHPEOH ZKHQ
U'1$ WUDQVFULSWLRQ LV UHSUHVVHG ,Q PHWDSKDVH WKH
125V DUH FRQGHQVHG DQG WKH QXFOHROL DUH FRPSOHWHO\
GLVVRFLDWHGKRZHYHUPLWRWLF125VUHWDLQDVXEVHWRIWKH
3RO,WUDQVFULSWLRQPDFKLQHU\LQFOXGLQJ3RO,WKHXSVWUHDP
ELQGLQJ IDFWRU 8%) DQG WKH VHOHFWLYLW\ WUDQVFULSWLRQ
IDFWRU 6/ WR DOORZ WKH UDSLG UHVXPSWLRQ RI U'1$
WUDQVFULSWLRQ DV FHOOV UHHQWHU WKH FHOO F\FOH +RZHYHU
QRWDOO125VDUHDFWLYH,QWULJXLQJO\ZHOORYHUKDOIRIWKH
ULERVRPDOJHQHVDUHHSLJHQHWLFDOO\VLOHQFHGDUHLQDFORVHG
FKURPDWLQ FRQÀJXUDWLRQ DQG DSSHDU QRW WR SOD\ D UROH LQ
JHQH WUDQVFULSWLRQ 125V FRQWDLQLQJ VLOHQW U51$ JHQHV
DUHQRWDVVRFLDWHGZLWK3RO,DQG3RO,VSHFLÀFIDFWRUVDQG
DSSHDUDVFRQGHQVHGIRFLRIU'1$)LJ7KH\UHPDLQ
HSLJHQHWLFDOO\ VLOHQW WKURXJKRXW WKH FHOO F\FOH DQG GXULQJ
VXEVHTXHQWFHOOGLYLVLRQV7KHUHDVRQZK\FHOOVVLOHQFH
RYHUKDOIWKHWDQGHPUHSHDWVRIU51$JHQHVDOWKRXJKWKHLU
WUDQVFULSWLRQLVUDWHOLPLWLQJIRUJURZWKKDVXQWLOUHFHQWO\
UHPDLQHGDFRPSOHWHP\VWHU\+RZHYHUDUHFHQWODQGPDUN
SDSHUE\,GHHWDOGHPRQVWUDWHGWKDWKLJKWUDQVFULSWLRQ
UDWHV RI ULERVRPDO JHQHV LQWHUIHUH ZLWK FRKHVLRQ EHWZHHQ
U'1$ORFLRIVLVWHUFKURPDWLGV([WUDFRSLHVRIVLOHQWU51$
JHQHVIDFLOLWDWHFRQGHQVLQDVVRFLDWLRQDQGVLVWHUFKURPDWLG
FRKHVLRQWKHUHE\IDFLOLWDWLQJUHFRPELQDWLRQDOUHSDLU7KXV
LQHIIHFWKLJKOHYHOVRIKLJKO\WUDQVFULEHGJHQHVDUHWR[LF
WRWKHFHOOVDQGWKHUHIRUHDPSOLÀHGJHQHVVXFKDVU'1$
KDYHHYROYHG
:LWK UHVSHFW WR WKH DFWLYH SRUWLRQ RI WKH U51$ JHQH
UHSHDWVZHKDYHUHFHQWO\UHSRUWHGWKDWWKHQXFOHRODU+0*
%R[ FRQWDLQLQJ WUDQVFULSWLRQFKURPDWLQ UHPRGHOLQJ
IDFWRU8%)RXWFRPSHWHVKLVWRQH+IRUELQGLQJWRVLOHQW
U'1$OHDGLQJWRFKURPDWLQGHFRQGHQVDWLRQ,QGHHG
8%) DVVRFLDWHV H[FOXVLYHO\ ZLWK DFWLYH U51$ JHQHV DQG
LWVELQGLQJLVSURSRVHGWRHVWDEOLVKDQGPDLQWDLQU'1$
LQ D HXFKURPDWLF RSHQ FRQÀJXUDWLRQ LQGLFDWLYH RI DFWLYH
125V)LJ
7KH1XFOHROXVDV6LWHIRU2WKHU1RQULERVRPDO
)XQFWLRQV
,QDGGLWLRQWRULERVRPHELRJHQHVLVWKHQXFOHROXVKDVIDU
PRUH GLYHUVH UROHV PHGLDWHG E\ IDFWRUV ORFDOLVHG WR WKH
QXFOHROXV$ODQGPDUNPDVVVSHFWURPHWU\DQDO\VLVRIWKH
QXFOHROL LGHQWLÀHG D WRWDO RI SURWHLQV WKDW ORFDOLVH WR
WKH KXPDQ QXFOHROL 6XUSULVLQJO\ WKH IUDFWLRQ RI SURWHLQV
NQRZQWREHLQYROYHGLQULERVRPHELRJHQHVLVPDGHXSRQO\
RIDOOSXULÀHGQXFOHRODUSURWHLQVGHVSLWHWKHIDFWWKDW
WKHH[LVWHQFHRIWKHQXFOHROXVGHSHQGVRQRQJRLQJU'1$
WUDQVFULSWLRQ:KLOHRQHWKLUGRIDOOQXFOHRODUSURWHLQV
KDYH QR LGHQWLÀDEOH IXQFWLRQ WKH UHPDLQLQJ IUDFWLRQ
LQFOXGHV IDFWRUV EHORQJLQJ WR D ZLGH UDQJH RI IXQFWLRQDO
FDWHJRULHV LQFOXGLQJ QXFOHDU H[SRUW VHTXHVWHULQJ RI
RQFRJHQHV DQG WXPRXU VXSSUHVVRUV PRGLI\LQJ VPDOO
51$V DVVHPEOLQJ ULERQXFOHRSURWHLQ FRQWUROOLQJ PDQ\
IRUPVRIVWUHVVUHVSRQVHDQGHYHQDJLQJ
,QWHUHVWLQJO\ DQDO\VLV RI GLIIHUHQFHV LQ QXFOHRODU
SURWHRPH G\QDPLFV EHWZHHQ VSHFLHV VKRZV WKDW
9RO1R'HFHPEHU
WKH PDPPDOLDQ QXFOHROL PD\ KDYH DFTXLUHG D QHZ
HYROXWLRQDU\ IXQFWLRQ LQ LWV FDSDELOLW\ WR VHTXHVWHU
QXFOHRSODVPLFSURWHLQVWKDWQRUPDOO\UHVLGHRXWVLGHWKH
QXFOHROL 7KH PRVW IDPRXV RI WKRVH ¶GULIWHUV· LV WKH
RQFRSURWHLQ0'0WKHSXELTXLWLQOLJDVH,QUHVSRQVH
WR RQFRJHQLF VWLPXOL WKH WXPRU VXSSUHVVRU SURWHLQ
$5) ELQGV WR 0'0 DQG VHTXHVWHUV LW LQ WKH QXFOHROL
OHDGLQJWRWKHQXFOHRSODVPLFVWDELOLVDWLRQRISDQGWKH
LQGXFWLRQRIGRZQVWUHDPQHJDWLYHUHJXODWRUVRIFHOOF\FOH
SURJUHVVLRQ+RZHYHUVHYHUDOOLQHVRIHYLGHQFHVXJJHVW
WKDW WKH QXFOHROXV LV QRW D PHUH VHTXHVWUDWLRQ VLWH EXW
UDWKHU D VHQVLWLYH VWUHVV FHQWUH WKDW SOD\V DQ DFWLYH UROH
LQ LQWHJUDWLQJ YDULRXV FHOOXODU VWUHVV VLJQDOV WKURXJK
LWV DELOLW\ WR FRQWURO WKH $5)0'0S SDWKZD\
7KLV KDV EHHQ FRLQHG WKH ULERVRPH ELRJHQHVLV
VXUYHLOODQFHSDWKZD\
5LERVRPH%LRJHQHVLV6XUYHLOODQFH3DWKZD\DQGWKH
&RQWURORIS
7KH H[LVWHQFH VL]H DQG LQWHJULW\ RI WKH QXFOHROXV
DSSHDU WR EH WLJKWO\ FRUUHODWHG ZLWK U'1$ WUDQVFULSWLRQ
DQG FHOO SUROLIHUDWLRQ 1XFOHROL H[SDQG ZKHQ U'1$
WUDQVFULSWLRQ LV LQGXFHG DQG HOHYDWHG OHYHOV RI U51$
V\QWKHVLV DQG VXEVHTXHQW LQFUHDVHV LQ WKH QXPEHU DQG
VL]H RI QXFOHROL DUH DVVRFLDWHG ZLWK WKH XQFRQWUROOHG
SUROLIHUDWLYH VWDWH RI FDQFHU FHOOV ,Q IDFW PRUSKRORJLFDO
FKDQJHV DQG LQFUHDVHV LQ WKH QXPEHU DQG WKH VL]H RI
QXFOHROLDUHFRQVLGHUHGDVDUHOLDEOHSURJQRVWLFPDUNHURI
WXPRXULJHQLFJURZWKDQGDGHÀQLWLYHPHDVXUHRIWXPRXU
SDWKRORJ\
,QFRQWUDVWLQDFWLYDWLRQRIU'1$WUDQVFULSWLRQULERVRPDO
SURWHLQV\QWKHVLVU51$SURFHVVLQJDQGWKHDVVHPEO\DQG
QXFOHRODUH[SRUWRIWKH6DQG6ULERVRPDOVXEXQLW
DUHHVWDEOLVKHGPHFKDQLVPVIRUFDXVLQJ¶QXFOHRODUVWUHVV·
DQGQXFOHRODUGLVUXSWLRQ7KLVVWUHVVLQWXUQOHDGVWRFHOO
F\FOHDUUHVWSURJUDPPHGFHOOGHDWKDQGUDSLGDFWLYDWLRQ
RIS7KHDFWLYDWLRQRIWKH53S0'0SDWKZD\
UHSUHVHQWV D ORQJXQLGHQWLÀHG FURVVWDON EHWZHHQ FHOO
JURZWK DQG GLYLVLRQ ,Q WKLV SDWKZD\ WKH QXFOHROXV
IXQFWLRQV DV D KLJKO\ VHQVLWLYH VWUHVV VHQVRU PHGLDWLQJ
VLJQDOVWRDSFKHFNSRLQWZKLFKWKHQFRQWUROVFHOOIDWH
,QWXUQULERVRPHELRJHQHVLVLVLQKLELWHGE\SSULPDULO\
WKURXJK LPSDLULQJ WKH IRUPDWLRQ RI WKH SUHLQLWLDWLRQ
FRPSOH[ZKLFKOHDGVWRLQKLELWLRQRIU51$WUDQVFULSWLRQ
8QGHU QRUPDO JURZWK FRQGLWLRQV WKH ( XELTXLWLQ
OLJDVH 0'0 UHJXODWHV SCV DYDLODELOLW\ LQ WZR ZD\V
ÀUVW 0'0 PRQRXELTXLW\ODWHV S DW LWV &WHUPLQXV
WKHUHE\ WDUJHWLQJ LW IRU 6 SURWHDVRPDO GHJUDGDWLRQ
VHFRQG 0'0 LQKLELWV WKH WUDQVDFWLYDWLRQ DFWLYLW\
RI S E\ DEURJDWLQJ LWV LQWHUDFWLRQ ZLWK WKH EDVDO 3RO
,, WUDQVFULSWLRQ PDFKLQHU\ )LJ 5HPDUNDEO\
0'0LWVHOILVDWUDQVFULSWLRQDOWDUJHWRIS8QGHU
FRQGLWLRQV RI ¶QXFOHRODU VWUHVV· S LV VWDELOLVHG DQG
DFWLYDWHG WKURXJK WKH DFWLRQ RI D QXPEHU RI QXFOHRODU
SURWHLQV LQFOXGLQJ %RS QXFOHRSKRVPLQ DOVR WHUPHG
130 RU % $5) DQG D VXEVHW RI ULERVRPDO SURWHLQV
7KHVH IDFWRUV FDQ GLVUXSW WKH S0'0
LQWHUDFWLRQ GLUHFWO\ VXSSUHVV 0'0 ( OLJDVH DFWLYLW\
RULQFUHDVHWKHWUDQVODWLRQUDWHRISP51$OHDGLQJWR
HQKDQFHGSVWDELOLW\)LJ
$8675$/,$1%,2&+(0,67
3DJH
6+2:&$6(21
5(6($5&+
&RQWURORISYLDWKH1XFOHRODU
6XUYHLOODQFH3DWKZD\
1XOHRODU3URWHLQV5HJXODWHWKH¶1XFOHRODU6WUHVV·
5HVSRQVH
'HSOHWLRQ RI WKH 3RO ,VSHFLÀF WUDQVFULSWLRQ IDFWRUV
8%) DQG 7,)$ UHVXOWV LQ G\VUHJXODWLRQ RI U'1$
WUDQVFULSWLRQ QXFOHRODU GLVUXSWLRQ DQG VXEVHTXHQWO\
SLQGXFHG FHOO F\FOH DUUHVW DQG DSRSWRVLVVHQHVFHQFH
2EVHUYDWLRQV PDGH E\ 3HVWRY DQG FROOHDJXHV
WKDW RYHUH[SUHVVLRQ RI D GRPLQDQW QHJDWLYH PXWDQW RI
%RS D IDFWRU LPSOLFDWHG LQ SUHU51$ SURFHVVLQJ DQG
DVVHPEO\ RI ULERVRPDO VXEXQLWV FDXVHV SGHSHQGHQW
FHOOF\FOHDUUHVWVWURQJO\VXJJHVWHGDFRQQHFWLRQEHWZHHQ
WKH UHJXODWLRQ RI ULERVRPH V\QWKHVLV DQG FHOO F\FOH $QRWKHU IDFWRU LQYROYHG LQ WKH FRRUGLQDWLRQ RI U51$
WUDQVFULSWLRQSURFHVVLQJ WKH H[SRUW RI ULERVRPDO
VXEXQLW DQG LQ SDUWLFXODU WKH VXEQXFOHDU ORFDOLVDWLRQ
RI WKH WXPRXU VXSSUHVVRU $5) LV 130 6WUHVV
LQGXFHG SHUWXUEDWLRQ RI 130$5) FRPSOH[HV LQVLGH
WKHQXFOHROXVHQDEOHV$5)WRUHJXODWHWKHDEXQGDQFHRI
S E\ VHTXHVWHULQJ 0'0 $EVHQFH RU PXWDWLRQ
RI 130 WULJJHUV GHVWDELOLVDWLRQ DQG QXFOHRODU H[FOXVLRQ
RI$5)O,QDGGLWLRQ130SURPRWHVWKHWUDQVDFWLYDWLRQ
DFWLYLW\ RI S XQGHU VWUHVV FRQGLWLRQV 6LPLODU WR
$5)GHSHQGHQWLQKLELWLRQRI0'0DFWLYLW\DQXPEHURI
ULERVRPDOSURWHLQVLQFOXGLQJ53653653/53/
53/DQG53/DUHFDSDEOHRILQWHUDFWLQJZLWK0'0
OHDGLQJ WR S VWDELOLVDWLRQ 8QGHU QRUPDO
JURZWKFRQGLWLRQVWKH53VDUHDVVHPEOHGLQWKHQXFOHROXV
DQG WUDQVSRUWHG WR WKH F\WRSODVP WR IRUP IXQFWLRQDO
ULERVRPHV)ROORZLQJQXFOHRODUEUHDNGRZQLQUHVSRQVHWR
¶QXFOHRODUVWUHVV·53/53/DQG53/DUHUHOHDVHGWR
WKHQXFOHRSODVPZKHUHWKH\FDQLQWHUDFWZLWKWKHFHQWUDO
DFLGLF GRPDLQ RI 0'0 UHVXOWLQJ LQ WKH VXSSUHVVLRQ
RI S XELTXLWLQDWLRQ +RZHYHU +RUQ DQG 9RXVGHQ
REVHUYHG D V\QHUJLVWLF VXSSUHVVLRQ RI 0'0 DFWLYLW\
WKURXJKFRRSHUDWLRQRI53/DQG53/VXJJHVWLQJWKDW
WKH\KDYHGLVWLQFWUROHVLQLQKLELWLQJ0'0IXQFWLRQ
,QFRQWUDVWDVVRFLDWLRQRI536DQG53/ZLWK0'0
KDV D GLIIHUHQW UHJXODWRU\ IXQFWLRQ DV WKH\ DUH ERWK
UHSRUWHGDVVXEVWUDWHVIRU0'0XELTXLWLQDWLRQ53/
LV VR IDU XQLTXH LQ LWV DELOLW\ WR ELQG WKH C XQWUDQVODWHG
UHJLRQRIWKHSP51$DQGHQKDQFHLWVWUDQVODWLRQ,WV
LQWHUDFWLRQ ZLWK 0'0 WULJJHUV LWV RZQ XELTXLWLQDWLRQ
DQG GHJUDGDWLRQ ZKLFK LQ WXUQ FDXVHV GRZQUHJXODWLRQ
RI S P51$ WUDQVODWLRQ 7KH GLYHUVH UROHV RI 53V
LQWKHUHJXODWLRQRIWKH0'0SSDWKZD\DUHIXUWKHU
VXSSRUWHGE\WKHÀQGLQJWKDWNQRFNGRZQRI536DIIHFWV
6 ULERVRPDO ELRJHQHVLV EXW HQIRUFHV 53/ P51$
WUDQVODWLRQ7KLVOHDGVWRDQHQKDQFHGLQWHUDFWLRQEHWZHHQ
53/ DQG 0'0 OHDGLQJ WR WKH DFFXPXODWLRQ DQG
DFWLYDWLRQ RI S 6LQFH PXOWLSOH 53V KDYH VHSDUDWH
PHFKDQLVPV IRU DFWLYDWLQJ S LW LV SODXVLEOH WKH\ PD\
KDYH GLVWLQFW UROHV LQ VHQVLQJ GLIIHUHQW W\SHV RI VLJQDOV
OHDGLQJWRQXFOHRODUVWUHVV
&RQFOXVLRQV
7KHULERVRPHELRJHQHVLVVXUYHLOODQFHSDWKZD\LVQRWMXVW
RI DFDGHPLF LQWHUHVW EXW KDV LPSRUWDQW SRWHQWLDO IRU WKH
WUHDWPHQWRIFDQFHU,WLVEHFRPLQJDSSDUHQWWKDWWKH53
0'0S SDWKZD\ LV UREXVWO\ DFWLYDWHG E\ LQKLELWLRQ
RIRQJRLQJSUHFXUVRUU51$V\QWKHVLVWKURXJKDQXPEHU
RI FKHPRWKHUDSHXWLF DJHQWV )RU LQVWDQFH LQKLELWLRQ
RI U'1$ WUDQVFULSWLRQ ZLWK WKH FKHPRWKHUDSHXWLF
DJHQWV $FWLQRP\FLQ ' $FW' RU ÁXRURXUDFLO LQGXFHV
S VWDELOLVDWLRQ DQG FHOO F\FOH DUUHVW $W ORZ
FRQFHQWUDWLRQVPJPOÁXRURXUDFLOWUHDWPHQWGULYHV
S DFWLYDWLRQ E\ SURPRWLQJ WKH LQWHUDFWLRQ RI 0'0
ZLWK 53/ 53/ DQG 53/ 6LPLODU WR ORZ GRVHV RI
ÁXRURXUDFLOWUHDWPHQWZLWKP\FRSKHQROLFDFLGHQKDQFHV
WKHDVVRFLDWLRQRI53/DQG53/ZLWK0'0OHDGLQJWR
SVWDELOLVDWLRQ7KHVHVWXGLHVVWURQJO\VXJJHVWWKDW
WKHWKHUDSHXWLFDFWLYLW\RIPDQ\F\WRWR[LFDJHQWVFXUUHQWO\
XVHGIRUWKHWUHDWPHQWRIFDQFHUPD\IXQFWLRQDWOHDVWLQ
)LJ6FKHPDWLFSUHVHQWDWLRQRIWKH¶QXFOHRODUVWUHVV·UHVSRQVH
8QGHUQRUPDOJURZWKFRQGLWLRQVWKHULERVRPDOSURWHLQV53VDUHDVVHPEOHGLQWKHQXFOHROXVDQGWUDQVSRUWHGWRWKH
F\WRSODVPWRIRUPIXQFWLRQDOULERVRPHV0'0ELQGVDQGPRQRXELTXLW\ODWHVSLQWKHQXFOHRSODVPZKLFKSURPRWHV
SSURWHDVRPDOGHJUDGDWLRQOHIWSDQHO8QGHUQXFOHRODUVWUHVVFRQGLWLRQV53VDUHUHOHDVHGWRWKHQXFOHRSODVPZKHUH
WKH\FDQLQWHUDFWZLWK0'0UHVXOWLQJLQWKHVXSSUHVVLRQRISXELTXLWLQDWLRQ53/LVDOVRFDSDEOHRIELQGLQJS
P51$DQGHQKDQFHVLWVWUDQVODWLRQ7KHDFWLYDWLRQRISLQGXFHVFHOOF\FOHDUUHVWDSRSWRVLVDQGRUVHQHVFHQFH
3DJH
$8675$/,$1%,2&+(0,67
9RO1R'HFHPEHU
6+2:&$6(21
5(6($5&+
SDUWWKURXJKWKHLQGXFWLRQRISGHSHQGHQWDSRSWRVLV
VHQHVFHQFHIROORZLQJQXFOHRODUVWUHVV,QGHHGWKHSRWHQWLDO
WKHUDSHXWLFEHQHÀWRIVHOHFWLYHO\LQKLELWLQJDWDUJHWVXFK
DVULERVRPHELRJHQHVLVKDVSURPSWHGWKHGHYHORSPHQWRI
VPDOOPROHFXOHFRPSRQHQWVWKDWVHOHFWLYHO\LQKLELWU51$
V\QWKHVLV LQ FDQFHU FHOOV 7ZR VXFK GUXJV GHYHORSHG
E\ &\OHQH 3KDUPDFHXWLFDOV DUH SRWHQW DQG VSHFLÀF
LQKLELWRUVRI3RO,WUDQVFULSWLRQWKDWLQGXFHDSRSWRVLVDQG
DXWRSKDJ\ H[KLELW SRWHQW DQG VHOHFWLYH DQWLSUROLIHUDWLYH
DFWLYLW\LQYLWURDQGKDYHDQWLWXPRXUDFWLYLW\LQ[HQRJUDIW
PRGHOV7RJHWKHUWKHVHVWXGLHVSODFHG\VUHJXODWLRQ
RI ULERVRPDO JHQH WUDQVFULSWLRQ D PXFKPDOLJQHG
¶KRXVHNHHSLQJ· SURFHVV DV D FULWLFDO QRYHO WDUJHW LQ WKH
WUHDWPHQWRIPDOLJQDQF\
5HIHUHQFHV
0RVV7DQG6WHIDQRYVN\9<&HOO
/HXQJ$.*HUOLFK'0LOOHU*/\RQ&/DP
<:/OHUHV''DLJOH1=RPHUGLMN-(OOHQEHUJ-
DQG/DPRQG$,-&HOO%LRO
3ULHWR-/DQG0F6WD\%*HQHV'HY
0F6WD\%DQG*UXPPW,$QQX5HY&HOO'HY
%LRO
,GH60L\D]DNL70DNL+DQG.RED\DVKL7
6FLHQFH
6DQLM(3RRUWLQJD*6KDUNH\.+XQJ6
+ROORZD\734XLQ-5REE(:RQJ/+7KRPDV
:*6WHIDQRYVN\90RVV75RWKEOXP/+DQQDQ
.00F$UWKXU*$3HDUVRQ5%DQG+DQQDQ5'
-&HOO%LRO
6DQLM(DQG+DQQDQ5'(SLJHQHWLFV
/HXQJ$.$QGHUVHQ-60DQQ0DQG/DPRQG
$,%LRFKHP-
0DJJL/%-UDQG:HEHU-'&DQFHU,QYHVW
5XEEL&3DQG0LOQHU-(0%2-
+RUQ+)DQG9RXVGHQ.+2QFRJHQH
=KDQJ<DQG/X+&DQFHU&HOO
'U\JLQ'6LGGLTXL-DLQ$2·%ULHQ66FKZDHEH
0/LQ$%OLHVDWK-+R&%3URIÀWW&7UHQW.
:KLWWHQ-3/LP-.9RQ+RII'$QGHUHV.DQG
5LFH:*&DQFHU5HV
'HLVHQURWK&DQG=KDQJ<2QFRJHQH
3HVWRY'*6WUH]RVND=DQG/DX/)0RO
&HOO%LRO
6KHUU&-DQG:HEHU-'&XUU2SLQ*HQHW
'HY
.RUJDRQNDU&+DJHQ-7RPSNLQV9)UD]LHU$$
$OODPDUJRW&4XHOOH):DQG4XHOOH'(
0RO&HOO%LRO
)XPDJDOOL6'L&DUD$1HE*XODWL$1DWW)
6FKZHPEHUJHU6+DOO-%DEFRFN*)%HUQDUGL5
3DQGROÀ33DQG7KRPDV*1DW&HOO%LRO
2ÀU5RVHQIHOG<%RJJV.0LFKDHO'.DVWDQ0%
DQG2UHQ00RO&HOO
6XQ;;'DL06DQG/X+-%LRO&KHP
9RO1R'HFHPEHU
$8675$/,$1%,2&+(0,67
3DJH