6LQFH IRUPDWLRQ LQ  *OREDO $OOLDQFH /WG KDV EHHQ SURYLGLQJ ILUVWFODVV JOREDOILQDQFLDODQGVWUDWHJLFVHUYLFHVWRLQWHUQDWLRQDOFOLHQWVVHL]LQJRSSRUWXQLWLHVWRJURZDQGFKDQJHWKHLUGHVWLQLHVDQGLQGXVWULHVLQIXQGDPHQWDOZD\V$VGHGLFDWHG9HQWXUH,QYHVWPHQW%DQNHUV*OREDO$OOLDQFHVSHFLDOL]HVLQDFKLHYLQJ
ILQDQFLDO DQG VWUDWHJLF JRDOV RI ERWK ODUJH DQG HPHUJLQJ FRPSDQLHV WKURXJK D
KDQGVRQ DSSURDFK RI GHYHORSLQJ DQG LPSOHPHQWLQJ WKH PRVW LPSRUWDQW DQGFRPSUHKHQVLYH RI FOLHQW REMHFWLYHV 7R WKLV HQG VSHFLDOW\ SUDFWLFHV KDYH EHHQGHYHORSHG LQ WKH DUHDV RI 0 $ YDOXDWLRQ HTXLW\ DQG GHEW ILQDQFLQJ SDUWQHUVKLSQHJRWLDWLRQDQGYHQWXUHIRUPDWLRQDFURVVWKHPDMRULW\RILQGXVWULHV*OREDO $OOLDQFH GLVWLQJXLVKHV LWVHOI E\ REVHUYLQJ WKH SULQFLSOHV RI H[FHSWLRQDO
LQWHJULW\ DQG WKH JRDOV RI VXSHULRU NQRZOHGJH LQQRYDWLRQ DQG HIIRUW LQ DOO ZH GR
<RXULQWHUHVWVDUHRXURQO\LQWHUHVW<RXUSULRULWLHVDUHRXURQO\SULRULW\%XVLQHVVDQGRSHUDWLQJXQLWVKDUHYDOXDWLRQDSSUDLVDORILQYHVWPHQWSURSRVDOVEXVLQHVVYLDELOLW\ GXH GLOLJHQFH UHYLHZ DVVHW EUDQG WUDGHPDUN DQG LQWHOOHFWXDO SURSHUW\
DVVHVVPHQW EXVLQHVV SODQ SUHSDUDWLRQ IRU QHZ YHQWXUHV PDUNHW HQWU\ H[SDQVLRQV DQGILQDQFLQJVDQGILQDQFLDOPRGHOLQJRIFDVKIORZVDQGSURMHFWLRQV2SHUDWLQJ SDUWQHUVKLS ILQDQFLDO DQG H[LW RSSRUWXQLW\ LGHQWLILFDWLRQ DVVHVVPHQW DGYLFH
DQG SODQQLQJ QHZ YHQWXUH VWUXFWXULQJ LQFRUSRUDWLRQ DQG LQFXEDWLRQ VWUDWHJ\ DQGSDUWQHUVKLS QHJRWLDWLRQV EXVLQHVV SODQ VXSHUYLVLRQ DQG LPSOHPHQWDWLRQ DQG MRLQW
YHQWXUHV OLFHQVH DJUHHPHQWV UHVWUXFWXULQJ DQG RWKHU IRUPV RI ILQDQFLDO DOOLDQFHV DQGVWUDWHJLFUHSRVLWLRQLQJ
3ULYDWH SODFHPHQW RI VHHG PH]]DQLQH ZRUNLQJ FDSLWDO H[SDQVLRQ DFTXLVLWLRQ DQGUHSODFHPHQW GHEW HTXLW\ FRQYHUWLEOH LQVWUXPHQWV DQG GHULYDWLYHV DQDO\VLV RI ZRUNLQJFDSLWDO FDVKIORZ DQG IXQGLQJ DOWHUQDWLYHV SUHSDUDWLRQ RI RIIHULQJ PHPRUDQGD DQGGRFXPHQWDWLRQ DQG ORFDWLQJ TXDOLI\LQJ VROLFLWLQJ QHJRWLDWLQJ DQG VHFXULQJ IXQGLQJ IURPSULYDWHSXEOLFLQVWLWXWLRQDODOOLDQFHDQGRWKHUVWUDWHJLFVRXUFHV3XUFKDVHVDOHDQGUHSUHVHQWDWLRQRIRSHUDWLQJDQGVWUDWHJLFDVVHWVWUDQVIHURIRSHUDWLQJ
DQG WHFKQRORJ\ ULJKWV OLFHQVHV EUDQGV EXVLQHVV RSHUDWLRQV GLYLVLRQV DQG FRUSRUDWH
HQWLWLHV VHSDUDWLRQ OLTXLGDWLRQ DQG GLVSRVDO RI QRQVWUDWHJLF YHQWXUHV OLDELOLWLHV DQG
DVVHWVDQGSODFHPHQWRISDUWQHUVKLSLQWHUHVWV
3DUWQHUVKLS VWUDWHJLHV H[HFXWLRQ LQIRUPDWLRQ PHPRUDQGXP SUHSDUDWLRQ IRU SRWHQWLDOEX\HUV ORFDWLRQ RI VXLWDEOH FRXQWHUSDUWLHV DVVHVVPHQW DQG DXJPHQWDWLRQ YLDELOLW\
VWUXFWXULQJDQGQHJRWLDWLRQRIWHUPVDQGFRQGLWLRQVIRUQHZHQWLW\SRROLQJRILQWHUHVWVDQG
H[FKDQJH RI VWRFN DQG PDQDJHPHQW DQG PRQLWRULQJ RI GRFXPHQWDWLRQ WUDQVDFWLRQ DQGWUDQVLWLRQSURFHVVHV3ODQQLQJRIOLVWLQJSULYDWHLVVXDQFHEX\EDFNVHFRQGDU\PDUNHWDFWLYLW\DQGGHOLVWLQJRISXEOLFVHFXULWLHVVKDUHKROGHUFRPPXQLFDWLRQDQGQHJRWLDWLRQFRPSOLDQFHDQGGLVFORVXUH
V\VWHPSURPRWLRQDQGUHYLHZDQGVWUXFWXUHDQGYDOXDWLRQRIPDQDJHPHQWDQGHPSOR\HHLQFHQWLYHV
5HVWUXFWXULQJ RI DIILOLDWHG FRUH DIILOLDWHG DQG VXEVLGLDU\ FRPSDQLHV FUHDWLRQ RI LQWHUQDOFRPSOLDQFHSURFHGXUHVULJKWVL]LQJRXWSODFHPHQWKLULQJDQGHYDOXDWLRQV\VWHPSODQQLQJDQG SURFXUHPHQW KROGLQJ FRPSDQ\ LPSOHPHQWDWLRQ DQG UHVRXUFH VFHQDULR DQG JRDODVVHVVPHQWDQGDOORFDWLRQ*OREDO$OOLDQFH/WGDQGLWVVXEVLGLDULHVSURYLGHWKHDERYHDGYLVRU\VHUYLFHVJOREDOO\ZLWKRXWUHVWUDLQWWRRXUFOLHQWVH[FHSWZKHUHSURKLELWHG

6LQFH&-KDVEHHQDEDQNHUDQGYHQWXUHILQDQFHVSHFLDOLVW3ULRUWRIRXQGLQJ*OREDO$OOLDQFH/WGLQKHZDVD'LUHFWRURI7HFKQR$OOLDQFH .. D -DSDQEDVHG YHQWXUH FDSLWDO JURXS
3UHYLRXVO\KHZDVFRKHDGRILQWHUQDWLRQDO0 $IRU$VDKL%DQNLQ
-DSDQ 9LFH 3UHVLGHQW RI ,QYHVWPHQW %DQNLQJ IRU 0HUULOO /\QFK&DSLWDO0DUNHWVLQ7RN\RDQG1HZ<RUN$VVLVWDQW9LFH3UHVLGHQW
RI ,QYHVWPHQW %DQNLQJ RI -3 0RUJDQ LQ 1HZ <RUN DQG ZLWK WKH)HGHUDO5HVHUYH%RDUGRI*RYHUQRUVLQ:DVKLQJWRQ'&+HKDV
D %DFKHORUV 'HJUHH LQ (FRQRPLFV IURP 8QLYHUVLW\ RI :LVFRQVLQ
DQG D 0DVWHUV 'HJUHH IURP +DUYDUG 8QLYHUVLW\ 6FKRRO RI
%XVLQHVV$GPLQLVWUDWLRQ)RXQGHG *OREDO $OOLDQFH 3DUWQHUV LQ  3UHYLRXVO\ IRXQGHUDQG &(2 RI 'UDNH %HDP 0RULQ-DSDQ   -DSDQ V
ODUJHVW +5 ILUP OLVWLQJ RQ -$6'$4 LQ  +H ZDV
5HSUHVHQWDWLYH 'LUHFWRU RI +RPH 3URGXFWV -DSDQ DQG ZLWK&KHVHEURXJK 3RQGV -DSDQ DQG 86$ +H ZDV /LTXLGDWLRQ$GYLVRU IRU 9HQGR -DSDQ +H EHJDQ KLV FDUHHU ZLWK .HWFKXP
0F/HRG  *URYH $GYHUWLVLQJ LQ 6DQ )UDQFLVFR DQG 1HZ <RUN
+HLVFXUUHQWO\D%RDUG0HPEHURI&DUH-DSDQDQGWKH$VLDQ$UW
0XVHXP RI 6DQ )UDQFLVFR DQG LV 3UHVLGHQW RI WKH 7DWHXFKL)RXQGDWLRQRI:DVKLQJWRQ86$+HJUDGXDWHGZLWKD%DFKHORU
RI$UWV/DZ)DFXOW\RI.HLR 8QLYHUVLW\DQGUHFHLYHGD0DVWHUV'HJUHH$GYHUWLVLQJ 0DUNHWLQJ8QLYHUVLW\RI:DVKLQJWRQ
5RJHU LV WKH 3URIHVVRU RI $FFRXQWLQJ DQG )LQDQFH DW +HQOH\
0DQDJHPHQW&ROOHJH+HSUHYLRXVO\PDLQWDLQHGDQLQGHSHQGHQWFRQVXOWDQF\ IRU  \HDUV WKH ODVW  LQ WKH DUHD RI 6WUDWHJLF
9DOXH$QDO\VLV+HKDVZULWWHQQXPHURXVERRNVDQGDUWLFOHVRQDFFRXQWLQJ DQG ILQDQFH LQFOXGLQJ 6WUDWHJLF 9DOXH $QDO\VLV DQG
7KH '\QDPLFV RI 6KDUHKROGHU 9DOXH +H KDV FRPSOHWHG
DVVLJQPHQWV LQ  FRXQWULHV VSDQQLQJ $VLD 1RUWK DQG 6RXWK
$PHULFD DQG (XURSH +H KROGV D %DFKHORUV 'HJUHH LQ
3V\FKRORJ\ 6RFLRORJ\ DQG (FRQRPLFV D 0DVWHUV 'HJUHH LQ
0DQDJHPHQW 6WXGLHV DQG D 3K' LQ )LQDQFH IURP %UXQHO8QLYHUVLW\3ULRU WR MRLQLQJ *OREDO $OOLDQFH LQ  7RPR ZRUNHG LQ 6DOHV
DQG 0DUNHWLQJ LQ ERWK WKH 8QLWHG 6WDWHV DQG -DSDQ IRU 'DHZRR
0RWRUV $PHULFD DQG 6ROWHF &R +H LV D 0LFURVRIW :LQGRZV
6\VWHPV(QJLQHHUDQGLVIOXHQWLQ(QJOLVKDQG-DSDQHVH+HKDV
D\HDU'HJUHHLQ0HFKDQLFDO(QJLQHHULQJIURP.XUXPH1DWLRQDO
&ROOHJHRI7HFKQRORJ\LQ)XNXRND-DSDQ+HDWWHQGHG&DOLIRUQLD
6WDWH 8QLYHUVLW\ 7RPR KDV %DFKHORU RI 6FLHQFH GHJUHH LQ
0HFKDQLFDO(QJLQHHULQJDQGD0DVWHURI$UWVGHJUHHLQ)LQDQFLDO
0DQDJHPHQWIURP3DUNZRRG8QLYHUVLW\RI8.

0DUFR ZDV IRXQGHU DQG 3UHVLGHQW RI D OX[XU\ JRRGV UHWDLOFRPSDQ\ IRU ZKLFK KH ZDV DZDUGHG PHPEHUVKLS LQ WKH <RXQJ(QWUHSUHQHXU¶V 2UJDQL]DWLRQ &RQFXUUHQWO\ KH ZDV D GLUHFWRU RI
7UDQVQDWLRQDO 'LYHUVLILHG *URXS D PXOWLQDWLRQDO VKLSSLQJFRPSDQ\ 3UHYLRXVO\ KH ZDV ZLWK WKH 6XELF %D\ 0HWURSROLWDQ$XWKRULW\ LQ WKH 3KLOLSSLQHV DQG ZLWK 1<. /LQHV LQ -DSDQ +H
KROGV D %DFKHORUV 'HJUHH LQ $UWV IURP 0F*LOO 8QLYHUVLW\ LQ
&DQDGDDQGD0DVWHURI%XVLQHVV$GPLQLVWUDWLRQIURP,16($'LQ)UDQFH%HIRUHMRLQLQJ*OREDO$OOLDQFHLQ$PHULFD7KHUHVDZDV$VVRFLDWH
'LUHFWRURI1RPXUD6HFXULWLHV,QWHUQDWLRQDO+./WGIURPWRSURYLGLQJFUHGLWDQGIL[HGLQFRPHDQDO\VWIRUWKH$VLD3DFLILF
5HJLRQ 6KH IRXQGHG +RQJ .RQJ :HEJUUOV LQ  3UHYLRXVO\VKH ZDV D FUHGLW DQDO\VW ZLWK %DQF2QH 6KH LV FXUUHQWO\ DQ
H[HFXWLYH RIILFHU RI )ODYRU 6RIWZDUH ,QF LQ 1HZ <RUN 7KHUHVDKROGV D %DFKHORU RI $UWV 'HJUHH IURP 6WDQIRUG 8QLYHUVLW\ LQ
(FRQRPLFVDQG+XPDQLWLHV+RQRUVDQGDQ0%$IURP&ROXPELD%XVLQHVV 6FKRRO 7KHUHVD LV FXUUHQWO\ HQJDJHG E\ )ODYRU
6RIWZDUHRI1HZ<RUN
6WHYHMRLQHGWKH%RDUGRI*OREDO$OOLDQFHLQ'HFHPEHUDQG
DVVLVWVWKH FRPSDQ\ZLWK LQYHVWPHQW EDQNLQJ DGYLFH DQGKXPDQFDSLWDO LVVXHV +H LV 0DQDJLQJ 'LUHFWRU RI *ORFDS 6HDUFK //&
6WHYH SUHYLRXVO\ ZDV WKH 3UHVLGHQW RI .RUQ)HUU\ ,QWHUQDWLRQDO V
$VLD3DFLILF 5HJLRQ SDUW RI WKH ZRUOG V ODUJHVW UHWDLQHG VHDUFKILUP+HSUHYLRXVO\ZDV0DQDJLQJ'LUHFWRURILQWHUQDWLRQDOILQDQFH
DQG LQYHVWPHQW EDQNLQJ DW 0HUULOO /\QFK DQG ZLWK WKH %DQN RI
%RVWRQVSHFLDOL]LQJLQFURVVERUGHUFRUSRUDWHILQDQFHDQGPHUJHUDGYLVRU\ +LV H[SHULHQFH LQFOXGHV DVVLJQPHQWV LQ 1HZ <RUN/RQGRQ)UDQNIXUW+RQJ.RQJDQG7RN\R6WHYHKDVVSHQWPXFKRIWKHSDVW\HDUVLQ-DSDQDQGLVIOXHQWLQ-DSDQHVH
%XUWLVPDQDJLQJGLUHFWRURI$OLPDQVN\&DSLWDO*URXS,QFEDVHG
LQ1HZ<RUN&LW\+HLVDOVRFKDLUPDQDQGIRXQGHURI1HZ<RUN%XVLQHVV)RUXPV,QFSDUHQWRI1HZ<RUN9HQWXUH*URXS1HZ
<RUN &DSLWDO 5RXQGWDEOH DQG 0DVWHU&ODVV )RUXPV ,Q DGGLWLRQWR QXPHURXV ERDUG RI GLUHFWRU SRVLWLRQV %XUW ZDV SUHVLGHQW RI
WKH +DUYDUG %XVLQHVV 6FKRRO &OXE RI 1HZ <RUN DQG FR
IRXQGHUFKDLU RI 1HZ <RUN &LW\¶V DQQXDO 9HQWXUH &DSLWDO
&RQIHUHQFH+HZDVDOVRDZDUGHG(QWUHSUHQHXURIWKH<HDUE\(UQVW  <RXQJ 0HUULOO /\QFK DQG ,QF 0DJD]LQH +H LV D
%DFKHORURI$UWVKRQRUVJUDGXDWHRI'DUWPRXWK&ROOHJHDQGKDV
D 0DVWHUV 'HJUHH IURP +DUYDUG 8QLYHUVLW\ 6FKRRO RI %XVLQHVV$GPLQLVWUDWLRQ9(1785(&5($7,21 5(25*$1,=$7,21

,QLWLDWLRQDQG2QJRLQJ6XSSRUWRI7UXO\8QLTXH9HQWXUHVDQG5HVWUXFWXULQJ
2SSRUWXQLWLHV

1;%$R\DPD)
0LQDPL$R\DPD
0LQDWRNX7RN\R-DSDQ

9DQWHUSRRO3OD]D):LFNVKDP&D\,
%ULWLVK9LUJLQ,VODQGV*UDQYLOOH5RDG6XLWH
7VLPVKDWVXL.RZORRQ+RQJ.RQJ&RQWDFW$7DWHXFKL%HQLKDQD3DFLILF5LP/WG
%HQLKDQD5HVWDXUDQWV$VLD
2SHUDWLRQV

6KX0HGLFDO6HUYLFHV..
,PSRUWHURI2SKWKDOPRORJLFDO(TXLSPHQW*OREDO2QOLQH..
-DSDQ V7KLUG,QWHUQHW
6HUYLFH3URYLGHU$OWUX(QWHUWDLQPHQW,QF
/DV9HJDV&UHDWRUDQG3URGXFHU
RI,QWHUQDWLRQDO'DQFH5HYXHV
IRU$VLDDQG2WKHU0DUNHWV&RQWDFW%HQLKDQD&RQWDFW*2/&RQWDFW6KX0HGLFDO

&RQWDFW$OWUX

6LQFHIRUPDWLRQLQ*OREDO$OOLDQFHKDVEHHQSURYLGLQJILUVWFODVVJOREDOILQDQFLDODQGVWUDWHJLFVHUYLFHVWRLQWHUQDWLRQDOFOLHQWVVHL]LQJRSSRUWXQLWLHVWRJURZDQGWRFKDQJHWKHLUGHVWLQLHVDQGLQGXVWULHVLQIXQGDPHQWDOZD\V*/2%$/$//,$1&(..
1;%$R\DPD)
0LQDPL$R\DPD
0LQDWRNX7RN\R
-DSDQ

&-:LOVRQ *URXS0DQDJLQJ'LUHFWRU(VWDEOLVKHG

*/2%$/$//,$1&(,1&
5RFNHIHOOHU3OD]D6XLWH
1HZ<RUN1<
86$

0DUFR'HOJDGR 'LUHFWRU(VWDEOLVKHG

*/2%$/$//,$1&(/7'
*UDQYLOOH5RDG6XLWH
7VLPVKDWVXL.RZORRQ+RQJ.RQJ
(VWDEOLVKHG

*/2%$/$//,$1&(,17(51$7,21$//7'
32%R[+HQOH\RQ7KDPHV
2[IRUGVKLUH5*<6
8QLWHG.LQJGRP

3URI5RJHU:0LOOV ([HFXWLYH'LUHFWRU(VWDEOLVKHG

720%6721(6 _127$%/(75$16$&7,216

,QWHUQHW$FFHVV
3URYLGHU
1HZ9HQWXUHLQ-DSDQ
3RZHU8WLOLW\$XVWUDOLDQ3URYLQFLDO*RYHUQPHQW ,QYHVWPHQW7UXVW0DQDJHU
3ULYDWH2IIVKRUH&RPSDQ\&RPSXWHU1HWZRUNLQJ0DQXIDFWXUHU
3XEOLF7DLZDQHVH
&RPSDQ\ &RUUXJDWHG&RQWDLQHU
&R
&RQVRUWLXPRI,QWHUQDWLRQDO
6KDUHKROGHUV 'HYHORSHG DQG SURGXFHG EXVLQHVV SODQ SULYDWHO\ SODFHG
YHQWXUH ILQDQFLQJ ZLWK  VWUDWHJLF LQYHVWRUV DQG DVVLVWHG LQ
UHFUXLWPHQW RI -DSDQHVH SUHVLGHQW 6XEVHTXHQWO\ DSSRLQWHG
PHPEHURI%RDUGRI'LUHFWRUVUHWDLQHGVWUDWHJLFDGYLVRU

9DOXHG RZQHUVKLS RI ULJKWV RI ZD\ RI ODUJHVFDOH SRZHU JULGRSHUDWRU XQGHUJRLQJ SULYDWL]DWLRQ DQG DXFWLRQ &RPSDQ\
VXEVHTXHQWO\VROGIRUDELOOLRQWR86EX\HU
$GYLVHGRIIVKRUHIXQGPDQDJHPHQWFRPSDQ\IRFXVLQJRQSUH
,32KLJKWHFKQRORJ\GLUHFWLQYHVWPHQW,QLWLDWHGDQGFRPSOHWHG
HTXLW\DQGFRQYHUWLEOHLQYHVWPHQWLQVL[86VWDUWXSV$GYLVHGVWUXFWXUHGDQGUHSUHVHQWHGOHDGLQJ7DLZDQFRPSDQ\
LQ YDOXDWLRQQHJRWLDWLRQ DQG DFTXLVLWLRQ RIRI QHWZRUNLQJGLYLVLRQ RI SXEOLF 86 FRPSHWLWRU IRU DSSUR[ PP DQGVXEVHTXHQW VHSDUDWLRQ RI WDUJHW LQWR WZR LQGHSHQGHQWFRPSDQLHV
3URGXFHG EXVLQHVV H[SDQVLRQ DQG ILQDQFLQJ SODQ IRU SDQ $VLD RZQHU RI EUDQGHG FRQWDLQHUV FRPSDQ\ XQGHUJRLQJFRPSOHWH UHVWUXFWXULQJ 5DLVHG 86 PLOOLRQ RI HTXLW\ ZLWK
8.$XVWUDOLDDQGRIIVKRUHLQYHVWRUV7HOHYLVLRQ&RQWHQW
3URGXFHU
3ULYDWH0DOD\VLDQ&RPSDQ\

3URGXFHG RIIHULQJ PHPRUDQGXP DQG SULYDWHO\ SODFHG
50 RI HTXLW\ DQG FRQYHUWLEOH SUHIHUHQFH VKDUHV RIPXOWLPHGLD HQWHUWDLQPHQW GHYHORSPHQW DQG SURGXFWLRQFRPSDQ\ZLWK86DQG-DSDQHVHYHQWXUHFDSLWDOILUPV5HWDLO6HUYLFHV
3URYLGHU
3XEOLF)UHQFK&RPSDQ\ (YDOXDWHGLQGXVWU\UHJXODWLRQVPDUNHWIDFWRUVDQGFRPSHWLWLYH
SRVLWLRQRI-DSDQHVHDFTXLVLWLRQWDUJHWV$VVLVWHGQHJRWLDWLRQV'LYHUVLILHG+ROGLQJ&R
3ULYDWH-DSDQHVH
&RPSDQ\(OHFWULF3RZHU'LVWULEXWRU
3ULYDWH3KLOLSSLQHV&RPSDQ\ 
3ULYDWH,QYHVWRUV-DSDQHVHDQG

&UHDWHGRSHUDWLQJPRGHODQGILQDQFLQJSODQIRUFUHDWLRQRIVHFRQGGRPHVWLFDLUOLQHFDUULHUWKHILUVWXVLQJLQWHUQDWLRQDO
SDUWQHUVKLSV5HYLHZHG DQG H[WHQGHG LQ YDOXDWLRQ RI 3KLOLSSLQHV XWLOLW\ IRU,32ILOLQJ'HYLVHGDQGLPSOHPHQWHGSUH DQGSRVW ,32VWUDWHJ\IRUVDOH
RI VKDUHV RI IRXU VHHG LQYHVWRUV LQ 86 PDNHU RI QHWZRUN

7DLZDQHVH,QGLYLGXDOV(GXFDWLRQDO3XEOLVKLQJ
&R
3ULYDWHDQG1RQ 3URILW-DSDQHVH&RQVRUWLXP 

KDUGZDUH$UUDQJHGWD[IUHHWUDQVIHURIVKDUHVDQGWD[QHXWUDOOLTXLGDWLRQ$GYLVHG -DSDQHVH FRPSDQ\ LQ UHRUJDQL]LQJ QRQSURILWDVVRFLDWHG FRPSDQ\ DQG HVWDEOLVKPHQW RI DQ RSHUDWLQJVXEVLGLDU\,QYHVWPHQW7UXVW0DQDJHU
3ULYDWH2IIVKRUH&RPSDQ\

5HVHDUFKHG LQGXVWU\ LQLWLDWHG QHJRWLDWLRQV DQG FRPSOHWHG
LQYHVWPHQW LQ 86 JLJDE\WH QHWZRUNLQJ SURGXFWV FRPSDQ\ RQ
EHKDOIRI$VLDQGLUHFWLQYHVWPHQWIXQG&RPSXWHU3HULSKHUDOV0DNHU
3ULYDWH2IIVKRUH&RPSDQ\ (VWDEOLVKHG LQ &DOLIRUQLD SODVWLF PRGHO SURGXFWLRQ FRPSDQ\
6XSHUYLVHGKLULQJRISHUVRQQHODQGQHJRWLDWLRQRIOLFHQVHVIURPLQWHUQDWLRQDOFRPSXWHUPDNHUV'DWDEDVH0DUNHWLQJ&RPSDQ\-DSDQHVH6WDUW8S 

3URYLGH VWUDWHJLF DQG ILQDQFLDO DGYLFH WR VWDUWXS VRIWZDUHGHVLJQHU DQG SURGXFHU RI VSHFLDOL]HG UHODWLRQDO VRIWZDUH IRUILQDQFLDOVHUYLFHVLQGXVWU\&RUUXJDWHG&RQWDLQHU
&R
3ULYDWH$VLDQ&RQVRUWLXP$VVLVWHG YDOXDWLRQ DQG QHJRWLDWLRQ RI DFTXLVLWLRQ ELG IRU ODUJH
VFDOHFRQWDLQHUIDFWRU\LQ6DQ-RVHDUHDIRUVDOHE\86RZQHU

3UH6FKRRO2SHUDWRU
3ULYDWH-DSDQHVH
&RPSDQ\

9DOXHG OLFHQVH DQG DVVLVWHG QHJRWLDWLRQV ZLWK IDPRXV 86
HQWHUWDLQPHQW FRPSDQ\ IRU FDUWRRQ FKDUDFWHUV IRU XVH LQ
DGYHUWLVLQJDQGWH[WERRNV

6\VWHP,QWHJUDWRU
6XEVLGLDU\RI3XEOLF
-DSDQHVH&RPSDQ\ 

1HJRWLDWHGDQGVWUXFWXUHGHDUO\VWDJHGLUHFWLQYHVWPHQWLQ86
EUDQGHG HGXFDWLRQDO PXOWLPHGLD FRQWHQW FUHDWLRQ DQGSURGXFWLRQFRPSDQ\ZLWKGHVLJQDQGPDQXIDFWXULQJRSHUDWLRQV
LQ9LHWQDP

)LQDQFLDO6HUYLFHV3ULYDWH-DSDQHVH
&RPSDQ\,QLWLDWHG GLVFXVVLRQV DVVLVWHG LQ SURGXFWLRQ RI EXVLQHVV SODQ
DQG DGYLVHG PXWXDO IXQG UDWLQJ DJHQF\ LQ OLFHQVH DQGLQYHVWPHQWQHJRWLDWLRQZLWKZRUOGZLGHLQGXVWU\OHDGHU

*DPH6RIWZDUH
3URGXFHU
3ULYDWH-DSDQHVH
&RPSDQ\

9DOXHG HTXLW\ LQYHVWPHQWV QHJRWLDWHG VKDUH SXUFKDVH DQGPDQDJHG FUHDWLRQ RI RIIVKRUH LQYHVWPHQW WUXVW IRU LQYHVWPHQWLQ WKUHH 86 PXOWLPHGLD YHQWXUHV DQG RQH -DSDQHVH VRIWZDUHFRPSDQ\ 9DOXHG DQG DGYLVHG DJDLQVW PXOWLSOH RWKHU 86
YHQWXUHLQYHVWPHQWV(GXFDWLRQ5HYLHZ&RPPLWWHH$XVWUDOLDQ*RYHUQPHQW 

2YHUVHDV&KLQHVH
&RQVRUWLXP 3XEOLFDQG
3ULYDWH&RPSDQLHV*DPH6RIWZDUH
3URGXFHU
3ULYDWH-DSDQHVH
&RPSDQ\ 

5HYLHZHGDQGHYDOXDWHGDWWKHUHTXHVWRILQGHSHQGHQWVHQLRUJRYHUQPHQW SDQHO WKH HIIHFW RI JOREDOL]DWLRQ DQG WHFKQRORJ\DGYDQFHPHQW RQ KLJKHU HGXFDWLRQ 6XEVHTXHQWO\ UHKLUHG IRUVHFRQGOHYHOIXUWKHUDQDO\VLV

5HVHDUFKHG DOWHUQDWLYHV LQWHUYLHZHG FRPSHWLWRUV HYDOXDWHG
IHDVLELOLW\ DQG FRQVWUXFWHG VWUDWHJ\IRU FUHDWLQJ DFTXLULQJ DQG
DVVHPEOLQJ SDQ$VLDQ ILQDQFLDO QHZV VHUYLFH DQG ILQDQFLDOLQVWUXPHQWV6XUYH\HG PDUNHW  LQLWLDWHG QHJRWLDWLRQV DQG FRPSOHWHG
SDUWQHUVKLSZLWK86GLVWULEXWRUVRIDQLPDWHGJDPHVRIWZDUH

3DUNLQJ'HYHORSHU
2SHUDWRU
3ULYDWH7KDLODQG&RPSDQ\

6WUXFWXUHG VDOH  OHDVHEDFN ILQDQFLQJ SUHSDUHG RIIHULQJPHPRUDQGXP DQG VROLFLWHG LQWHUQDWLRQDO EDQN JXDUDQWRU DQGLQYHVWRU IRU SULYDWHO\ RSHUDWHG %DQJNRN XUEDQ SDUNLQJ JDUDJHGHYHORSPHQW

5HWDLOHU'LUHFW
0DUNHWHU
3ULYDWH-DSDQHVH
&RPSDQ\

9DOXHG DQG DVVLVWHG QHJRWLDWLRQ RI DFTXLVLWLRQ ELG IRU -DSDQPDVWHU OLFHQVH RI 86 UHWDLOHU RI EXVLQHVV PDQDJHPHQW WRROVFRPSDQ\

5HVWDXUDQW&KDLQ
1$6'$4/LVWHG 

6WUXFWXUHGSDUWQHUVKLSSODQDQGVROLFLWHGOLFHQVHHVWRHVWDEOLVKPXOWLSOHLQGHSHQGHQWMRLQWYHQWXUHVWKURXJKRXW6RXWKHDVW$VLD$SSRLQWHGGLUHFWRURI$VLDKROGLQJFRPSDQ\7UDGLQJ&RPSDQ\
3XEOLF-DSDQHVH
&RPSDQ\(PSOR\PHQW6HUYLFHV
&R
/LFHQVHHRI86&RPSDQ\

7HFKQRORJ\/LFHQVLQJ
&R
3ULYDWH-DSDQHVH
&RPSDQ\
6\VWHP,QWHJUDWRU
3ULYDWH-DSDQHVH
&RPSDQ\

3URYLGHG LQYHVWPHQW HYDOXDWLRQ DQG QHJRWLDWLRQ VHUYLFHV IRUWHFKQRORJ\WUDQVIHUIURPOLFHQVHRIVKDUHDFTXLVLWLRQLQ-DSDQVXEVLGLDU\RIDOHDGLQJ86%%DQG%&SURGXFWDQGVHUYLFHVPDUNHWLQJILUP

9DOXHG RQJRLQJ -DSDQ RSHUDWLRQV DQG 86 OLFHQVHU V RIIHU WRUHSXUFKDVH -DSDQ OLFHQVH 1HJRWLDWHG ZLWK OLFHQVRU DQGSURYLGHG RSHUDWLQJ VWUDWHJ\ VXEVHTXHQWO\ OHDGLQJ WR ,32 LQ
-DSDQ
6WUXFWXUHG OLFHQVH SXUFKDVH DJUHHPHQW DQG HVWDEOLVKPHQW RI
MRLQWO\ RZQHG -DSDQEDVHG GLVWULEXWLRQ FRPSDQ\ IRU LQWUDQHWVHFXULW\V\VWHPDQGVPDUWFDUGPDQXIDFWXUHU5HYLHZHG ILQDQFLDO DQG OHJDO GRFXPHQWV RI XQVROLFLWHG
DFTXLVLWLRQELG E\ODUJH86FRPSHWLWRU 9DOXHGRIIHU SURYLGHGQHJRWLDWLRQ DVVLVWDQFH DQG DUUDQJHG VWUXFWXUH VHFXULQJVKDUHKROGHUDQGPDQDJHPHQWLQWHUHVWV680,72020$.(6&$6+%,')25$2=25$  ,+70DUFK
(;(&87,9($&$'(0,&72+($'5(9,9$/%2'<  -$3$17,0(60DUFK
-$3$15($/(67$7(/21*'(35(66('+,176$7$5(9,9$/  :6-0D\
63((&+$7$1=&&(;,7675$7(*,(6)2560$//%86,1(66,1-$3$1  7RN\R-DSDQ$SULO

$&48,6,7,21(;3(576$<660$//),5065,3()257+(3,&.,1*  ,+70DUFK
*$,-,1*5$9('$1&(56  )RUEHV*OREDO)HEUXDU\
0$5.(79(5',&7  $6,$ 65(,76 )RUEHV*OREDO'HFHPEHU
,17(59,(::,7+&-:,/621  $&&--RXUQDO2FWREHU
63((&+$7(0,5$7(6,17(51$7,21$/)2580  'XEDL8$(0DUFK
0251,1*67$50$<2))(56(59,&(6,1-$3$1  :6-2FWREHU
$7/86$,0667,&.(53+272%227+6$786  $VLDQ:6-2FWREHU
75$',1*),506*(70$.(29(5:,11,1*)$16  :6-$SULO
6(77,1*836+23  :6-1RYHPEHU
63((&+$7(852021(<$'9$1&('675$7(*,(6)25&203$1<9$/8$7,21  /RQGRQ

8.6HSWHPEHU,QWHUQDWLRQDO+HUDOG7ULEXQH0DUFK
&HUEHUXV 3DUWQHUV ZHLJKV ULYDO RIIHU IRU  VWDNH KHOG E\ 6RIWEDQN %\ %UHWW &ROH
%ORRPEHUJ1HZV
72.<2 6XPLWRPR 0LWVXL )LQDQFLDO *URXS ,QF -DSDQ V VHFRQG ELJJHVW EDQN KDV RIIHUHG
ELOOLRQ PLOOLRQ LQFDVKIRU6RIWEDQN&RUS VSHUFHQWVWDNHLQ$R]RUD%DQN
/WGDFFRUGLQJWREDQNHUVLQYROYHGLQWKHWUDQVDFWLRQ
6XPLWRPR 0LWVXL RIIHUHG 6RIWEDQN  D VKDUH IRU WKH VWDNH WKH EDQNHUV VDLG 7KH ELGZKLFKFDQEHPDWFKHGE\&HUEHUXV3DUWQHUV/3DQ$R]RUDVKDUHKROGHUYDOXHVWKHOHQGHU
DW DERXW  ELOOLRQ 7KH SXUFKDVH ZKLFK UHTXLUHV UHJXODWRU\ DSSURYDO ZRXOG WULJJHU D
JHQHUDORIIHUIRUDOO$R]RUDVKDUHV6XPLWRPR0LWVXLZDQWVWKLVGHDOVDLG&-:LOVRQPDQDJLQJGLUHFWRUDWLQYHVWPHQWDGYLVHUV *OREDO $OOLDQFH /WG LQ 7RN\R $R]RUD VKDUHKROGHUV ZLOO ORRN DW WKH SULFH
RIIHUHGE\6XPLWRPR0LWVXLWR6RIWEDQNDQGZLOOZDQWWRVHOO
0DVD\RVKL6RQWKH6RIWEDQNFKLHIH[HFXWLYHVDLGKHDFFHSWHGWKH6XPLWRPR0LWVXLRIIHUZLWKRXWGLVFORVLQJWKHWHUPV6XPLWRPR0LWVXLVDLGLQ-DQXDU\LWZDQWHGDFRQWUROOLQJVWDNHLQ$R]RUD
8QGHU-DSDQHVHODZFRPSDQLHVZLVKLQJWREX\SHUFHQWRUPRUHRIDFRPSDQ\RXWVLGHWKHPDUNHWPXVWWHQGHUDQRIIHUWRDOOVKDUHKROGHUV,IWKHUHLVDJHQHUDORIIHUVKDUHKROGHUV
LQ $R]RUD PD\ VHOO WKHLU VWDNHV WR 6XPLWRPR 0LWVXL ZKLFK PD\ HQG XS KROGLQJ PRUH WKDQSHUFHQWLQWKHEDQN
&HUEHUXV 3DUWQHUV /3 DQ  ELOOLRQ LQYHVWPHQW IXQG WKDW KDV DQ  SHUFHQW VWDNH LQ
$R]RUD LV FRQVLGHULQJ LWV RZQ ELG IRU 6RIWEDQN V VWDNH :LOOLDP 5LFKWHU D &HUEHUXV FR
IRXQGHU VDLG WKLV PRQWK 2WKHU $R]RUD VKDUHKROGHUV LQFOXGH 7RNLR 0DULQH )LUH ,QVXUDQFH
&R -DSDQ V ODUJHVW FDVXDOW\ LQVXUHU 2UL[ &RUS -DSDQ V ELJJHVW QRQEDQN ILQDQFLDOFRPSDQ\&DOLIRUQLDEDVHG6LOLFRQ9DOOH\%DQNDQG-DSDQHVHUHJLRQDOOHQGHUV-DSDQ7LPHV0DUFK
%\7RPRNR2WDNHDQG0D\XPL1HJLVKL6WDIIZULWHUV
7KH &DELQHW GHFLGHG )ULGD\ WR DSSRLQW D IRUPHU 1RPXUD 6HFXULWLHV &R H[HFXWLYH DQG D
KLJKSURILOHDFDGHPLFWROHDGDSURSRVHGJRYHUQPHQWEDFNHGHQWLW\WDVNHGZLWKUHVWUXFWXULQJ
LQGHEWHGILUPVDQGUHYLWDOL]LQJLQGXVWULHV$WVXVKL 6DLWR D IRUPHU YLFH SUHVLGHQW DW WKH QDWLRQ V ELJJHVW EURNHUDJH ZLOO DVVXPH WKHSUHVLGHQF\RIWKHLQGXVWULDOUHYLYDOERG\ZKHQLWEHJLQVRSHUDWLRQVDURXQG0D\DQG6KLQMLUR7DNDJL D SURIHVVRU RI ODZ DW'RNN\R 8QLYHUVLW\ ZKR LV DOVR NQRZQDVD OHDGLQJ FRUSRUDWHUHKDELOLWDWLRQH[SHUWZLOOKHDGDSDQHORIH[SHUWVWKDWZLOOMXGJHZKHWKHUGHEWODGHQILUPVDUH
VDOYDJHDEOH
,QDQQRXQFLQJWKHDSSRLQWPHQWVLQGXVWULDOUHYLYDOPLQLVWHU6DGDND]X7DQLJDNLVWUHVVHGWKDWWKHWZRFDQGLGDWHVDUHEOHVVHGZLWKWKHPRVWDSSURSULDWHH[SHULHQFHDQGFDSDELOLWLHV
6DLWR ZKR" DVNHG .HQML 8HGD H[HFXWLYH GLUHFWRU RI 86 LQYHVWPHQW IXQG 5LSSOHZRRG-DSDQ,QF, PJODGWKH\IRXQGVRPHERG\WKRXJK,NQRZ,ZRXOGQ WZDQWWRKDYHKLVMRE
:KLOH 7DNDJL LV EHWWHU NQRZQ IRU KLV LQYROYHPHQW LQ WKH UHKDELOLWDWLRQ RI DLOLQJ VXSHUPDUNHWFKDLQ 'DLHL ,QF KLV DSSRLQWPHQW LV H[SHFWHG WR UDLVH FRQFHUQV RYHU KLV LPSDUWLDOLW\ LQ
FKRRVLQJFRPSDQLHVWRUHKDELOLWDWH0U 7DNDJL V UHSXWDWLRQ LV UHYHUHG DPRQJ H[HFXWLYHV VR WKLV LV D FRXS VDLG &-:LOVRQPDQDJLQJGLUHFWRURI*OREDO$OOLDQFH/7'DQLQYHVWPHQWDGYLVRU\ILUP%XW
WKHILOWHULQJRIZKRWRKHOSDQGKRZFRXOGEHDTXDJPLUHRIIDYRULWLVPDQGFRQIOLFWV$V SUHVLGHQW 6DLWR V ELJJHVW MRE ZLOO EH WR ILQG VSRQVRUV IRU FRPSDQLHV WKDW DUH SXW XQGHUPDQDJHPHQW UHYLWDOL]DWLRQ 7DQLJDNL VDLG 6SRQVRUV ZLOO HYHQWXDOO\ EX\ WKHLU UHVXVFLWDWLQJFRPSDQLHV
7DNDJL PHDQZKLOH ZLOO RYHUVHH WKH H[SHUWV  FRPPLWWHH WDVNHG ZLWK GHWHUPLQLQJ ZKHWKHUFRPSDQLHVDUHVDOYDJHDEOHDQGLIVRKRZPXFKWRSD\EDQNVIRUWKHLUSUREOHPORDQV

:DOO6WUHHW-RXUQDO0D\
%\-DRQ6LQJHU
72.<2 /DVW\HDU&XUWLV)UHH]WKHPDQDJHURID-DSDQHVHPXWXDOIXQGVDZVRPH
QXPEHUVWKDWVKRFNHGKLP
,Q-DSDQOHJDOL]HGUHDOHVWDWHLQYHVWPHQWWUXVWV ZKLFKWKH86KDGGRQHLQWKHHDUO\V5(,7VDUHFRPSDQLHVOLVWHGRQDVWRFNPDUNHWWKDWLQYHVWVROHO\LQUHDOHVWDWH
JLYLQJODQGVHOOHUVDQRWKHUYHKLFOHIRUE\SDVVLQJWKHVFOHURWLFEDQNV*UDGXDOO\WKHFKDQJHVSXVKHGWKURXJKE\-DSDQWRUHYLYHLWVILQDQFLDOV\VWHPPDGHLWSRVVLEOHIRUODQGRZQHUVWRILQGQHZEX\HUVZKHUHEHIRUHWKHUHKDGQ WEHHQDQ\DQGIRU
EX\HUVWRUDLVHPRQH\ZKHQEDQNVKDGEHHQVD\LQJQR-DSDQ VILQDQFLDOSURGXFWVPDUNHWLVPRYLQJEH\RQGDGROHVFHQFHDWODVWVD\V&-:LOVRQPDQDJLQJGLUHFWRURIERXWLTXHLQYHVWPHQWEDQN*OREDO$OOLDQFH
)RUHLJQLQYHVWRUVVXFKDV*ROGPDQ6DFKVEHJDQEX\LQJLQEXONEHFDXVHWKH\VDZWKH
XQLYHUVHRISRWHQWLDOEX\HUVH[SDQG ZKLFKLQWXUQUDLVHGWKHSRWHQWLDOYDOXHRISULPH
SURSHUWLHV:KDW VPRUHWKH\VDZQHZXVHVIRULGOHVSDFHV$XVWUDOLD 1HZ=HDODQG&KDPEHURI&RPPHUFHLQ-DSDQ$XVWUDOLDQ%XVLQHVV&HQWUH$SULO
7KHVXEMHFWRIH[LWVWUDWHJLHVZLOOEHH[SORUHGLQGHSWKLQWKLVRSHQGLVFXVVLRQIRUPDW7KLVFXVVLRQZLOOEHOHGE\&-:LOVRQ3UHVLGHQWRI*OREDO$OOLDQFHRQHRI7RN\R VEHVWNQRZQDQGPRVWH[SHULHQFHGSULYDWHHTXLW\DQG0 $DGYLVRU\ILUPV0U:LOVRQZLOO
VHWXSWKHGLVFXVVLRQE\RXWOLQLQJLVVXHVRIH[LWVWUDWHJLHVIRUWKUHHK\SRWKHWLFDOEXVLQHVV$FWXDOFRS\WH[WVRIVSHHFKDUHDYDLODEOHSDUUHTXHVW3OHDVHFRQWDFW*OREDO$OOLDQFHWRUHTXHVW,QWHUQDWLRQDO+HUDOG7ULEXQH0DUFK
%L]%HDW%\3DXO0XUSK\$VDKL6KLPEXQ1HZV6HUYLFH
0DUNHWZLVH&-:LOVRQLVDFRQWUDULDQ$WDWLPHZKHQIRUHLJQLQYHVWRUVDUHLQFUHDVLQJO\QHUYRXVDERXW-DSDQWKHPDQDJLQJGLUHFWRURIPHUJHUVDQGDFTXLVLWLRQVDGYLVHU*OREDO$OOLDQFHEHOLHYHVWKDWLI\RXORRNEH\RQGWKHILQDQFLDOFULVLVDQGWKHOHDGHUVKLSFULVLVWKHFXUUHQWSHULRGUHSUHVHQWVDJRRGRSSRUWXQLW\IRUDQ\RQHZKRZDQWVWRFRPHWR-DSDQRU$VLD
7KH \HDUV ROG $PHULFDQ SDUWLFXODUO\ VPHOOV RSSRUWXQLW\ LQ UROOXSV D VWUDWHJ\ RI
EX\LQJ XS DQGJURXSLQJ FRPSDQLHVXQGHU WKHVDPH EUDQGDQGPDQDJHPHQWV\VWHPWRHQDEOHHFRQRPLHVRIVFDOHDQGRWKHUDGYDQWDJHV,VWKHWLPHULJKWQRZLQ-DSDQWRGRUROOXSV"7KHDQVZHULV <RXEHW KHVDLG*OREDO $OOLDQFH D 7RN\REDVHG VHYHQSHUVRQ RSHUDWLRQ ZLWK RIILFHV LQ WKH 8QLWHG
6WDWHV DQG (XURSH LV DGYLVLQJ FOLHQWV DERXW SXUFKDVH DQG UROOXS D QXPEHU RI
-DSDQHVHILUPV6WDWLRQDU\ VWRUHV GU\ FOHDQHUV JDV VWDWLRQV DQG SURSHUW\ PDQDJHPHQW FRPSDQLHV
DVZHOODVILQDQFLDOSODQQLQJDQGDFFRXQWLQJILUPVDUHDPRQJWKRVHULSHIRUUROOXS
7\SLFDOWDUJHWVDUHVROLGPLGVL]HILUPVZLWKOHVVWKDQELOOLRQ\HQLQVDOHVEXWZKLFKDUH QRW EHQHILWLQJ IURP QHZ LQIRUPDWLRQ WHFKQRORJ\ RU PDQDJHPHQW V\VWHPV DQGILQDQFLDOVWUDWHJLHVVXFKDVLVVXLQJERQGVWKDWDUHSRVVLEOHIRUDODUJHUIDVWJURZLQJILUPDFFRUGLQJWR:LOVRQ
7KHRYHUULGLQJHFRQRPLFEHQHILWLVLQQHZPDQDJHPHQW
1LVVDQLVQRWDUROOXSEXWZHDOODJUHHWKDWFKDQJLQJWKHKHDGDOORZHGHYHU\RQHHOVH
WKHIUHHGRPWRFKDQJHKHVDLG:LOVRQEHOLHYH-DSDQLVVXIIHULQJIURPDPDQDJHPHQWFULVLVZKLFKLVSURYHQE\WKH
H[FHSWLRQV
7KH VNLOOV WKDW JRW PDQDJHUV ZKHUH WKH\ DUH QRZJR DORQJ JHW DORQJ VSHQG \RXU
WLPHEXLOGLQJHPSLUHVWKDWDUHSROLWLFDOO\SURWHFWHGDVORQJDV\RXNHHSKLULQJSHRSOHZKHUHEXLOWIRUDGLIIHUHQWHFRQRP\\HDUVDJRKHVDLG:LOVRQ DFNQRZOHGJHV WKDW WKH XQLIRUPLW\ ZKLFK UROOXSV EULQJ PD\ HURGH UHWDLO-DSDQ VPRPDQGSRSIDFH
%XWKHDUJXHVPDQ\ZRXOGQRWVXUYLYHDQ\ZD\:KHQ\RXKDYHILUPVVXFKDV RIILFHVXSSOLHVPDLORUGHUYHQGRU $VNXO&RUSVHOOLQJDOPRVWH[FOXVLYHO\RQOLQHDQGE\ID[DQGGHOLYHULQJSURGXFWWKHVDPHZD\\RXUHDOL]HWKHZRUOGKDVFKDQJHGKHVDLG

)RUEHV*OREDO)HEUXDU\-DSDQ V HFRQRP\ LV JHWWLQJ ZRUVH 7KDW V JRRG QHZV IRU :HVWHUQ LQYHVWRUV EX\LQJ
-DSDQHVHFRPSDQLHV%\-XVWLQ'RHEHOH,Q -DQXDU\ WKH &DUO\OH *URXS SDLG  PLOOLRQ IRU $VDKL 6HFXULW\ 6\VWHPV VROG E\ WKHWURXEOHG-DSDQHVHUHWDLOHU'DLHL,WZDVWKH86LQYHVWRUJURXS VILUVWDFTXLVLWLRQLQ-DSDQ 
EXWLWVXUHO\ZRQ WEHWKHODVW&DUO\OHH[SHFWVWRGRDQDGGLWLRQDORUVRGHDOVLQ-DSDQLQWKHQH[WIRXU\HDUV%X\RXWV
DUH D WRWDOO\ QHZ EXVLQHVV LQ -DSDQ VD\V .HQVXNH 6KL]XQDJD ZKR LV WKH FR KHDG RI
&DUO\OH VEX\RXWWHDPLQ7RN\R7KHPDUNHWKHUHLVHPEU\RQLF
-XVWVL[\HDUVDJRIHZHUWKDQFRPSDQLHVD\HDUZHUHERXJKWE\RUPHUJHGZLWK:HVWHUQFRQFHUQV/DVW\HDUWKHILJXUHZDV
,W VJDPH RYHU IRU-DSDQ,QFVD\V%UDG6PLWKZKR OHIWKLV MRE RI UXQQLQJ %HDU 6WHDUQV 
7RN\R RIILFH  PRQWKV DJR WR KHDG KLV RZQ FRPSDQ\ .DKDOD &DSLWDO ZKLFK DGYLVHV RQ
PHUJHUV DQG DFTXLVLWLRQV 0 $  RI -DSDQHVH FRPSDQLHV , KDYH PRUH ZRUN WKDQ , FDQKDQGOH:LWKHFRQRPLFUHFRYHU\QRZKHUHLQVLJKW VHHSDJH WKHGLVPDQWOLQJRIFRUSRUDWH-DSDQZLOOJHWEURDGHUDQGGHHSHU&RQVLGHU7KHYDOXHRI0 $LQWKH86LVHTXLYDOHQWWRDERXWRILWVWULOOLRQ*'3-DSDQHVH0 $DFFRXQWVIRURQO\DERXWRILWVWULOOLRQ*'3
VRWKHUHLVSOHQW\RIURRPIRUJURZWK
7KHIUDFWLRQRIVKDUHVKHOGLQFURVVVKDUHKROGLQJVKDVIDOOHQWRIURPLQDFFRUGLQJWR*ROGPDQ6DFKV -DSDQHVHEDQNVDQGRWKHUVDUHXQZLQGLQJWKHLUFURVVVKDUHKROGLQJ RI NHLUHWVX JURXSV DW D VDYDJH SDFH VD\V &- :LOVRQ WKH KHDG RI
*OREDO$OOLDQFHDQ0 $DGYLVRU\ILUPLQ7RN\R
)RUHLJQHUVLQWKHPHDQWLPHKDYHUDLVHGWKHLURZQHUVKLSWRE\YDOXHRIDOOOLVWHGVKDUHVJLYLQJ WKHP JUHDWHU OHYHUDJH IRU WDNHRYHUV )RU OHJDO FRQWURO RI D -DSDQHVH FRPSDQ\ DQ
DFTXLUHU JHQHUDOO\ QHHGV WR KDYH DW OHDVW D  VWDNH QRWH WKDW ZKHQ 5HQDXOW WRRN RYHU
1LVVDQLWKDGDVWDNHDQGZKHQ'DLPOHU&KU\VOHUJRW0LWVXELVKL0RWRUVLWKDG -DSDQHVHDUHJHQHUDOO\FRPSOHWHO\QDNHG>WRWDNHRYHUV@ZLWKRXWFURVV VKDUHKROGLQJVVD\V$UWKXU0LWFKHOODVHQLRUSDUWQHURI&RXGHUW%URWKHUVDODZILUPLQ1HZ<RUNZKRKDVORQJIRFXVHG RQ -DSDQ &RXGHUW DQG /D]DUG )UqUHV GHYHORSHG -DSDQ V ILUVW SRLVRQSLOO GHIHQVH
DQG 0LWFKHOO VHHV D EULJKW IXWXUH LQ KHOSLQJ -DSDQHVH FRPSDQLHV IDVKLRQ :HVWHUQVW\OH
GHIHQVHVDJDLQVWWDNHRYHUELGV%XWKHVD\VPRVWFRPSDQLHVLJQRUHWKHJURZLQJGDQJHU
1RFRPSDQLHVKDYHSODQWHGWKHVHSRLVRQSLOOV WKHUHDUHLQWKH86 )RUEHV*OREDO'HFHPEHU
$VLD V UHDO HVWDWH W\FRRQV DUH KRSLQJ WKDW 5(,7V ZLOO IORXULVK LQ WKH UHJLRQ ,QYHVWRUV DUHVNHSWLFDO%\-XVWLQ'RHEHOH
1RWDOO5(,7VDUHFUHDWHGHTXDO7KH865(,7PDUNHWKDGPRUHWKDQWHQ\HDUVWRPDWXUH DQG WR H[SHULHQFH SOHQW\ RI IDLOXUHV LQ HYHU\ IRUP EHIRUH VHWWOLQJ GRZQ WR
VHSDUDWHFODVVHVRISURSHUW\ZLWKWKHULJKWLQYHVWRUVVD\V&-:LOVRQZKRPDQDJHV*OREDO $OOLDQFH D SULYDWH LQYHVWPHQW ILUP LQ 7RN\R 7KH VDPH SURFHVV ZLOO OLNHO\ WDNH
SODFHLQ$VLD,QYHVWRUVQHHGWRDVNKDUGTXHVWLRQVDERXWZKHWKHUWKHSURSHUWLHVXQGHUOLQLQJ
WKH5(,7VFDQGHOLYHUSURPLVHGUHWXUQVLQJURZWKUHQWVDQGFDSLWDODSSUHFLDWLRQ

$PHULFD&KDPEHURI&RPPHUFHLQ-DSDQ2FWREHU
4 ,QWKH:RUOG&RPSHWLWLYHQHVV6XUYH\IURPWKH,QVWLWXWHIRU0DQDJHPHQW'HYHORSPHQWRI/DXVDQQH$PHULFDUHWDLQHGWKHQXPEHURQHVSRWZLWK6LQJDSRUHDVWURQJVHFRQG-DSDQKRZHYHUPDQDJHGWRVOLSWRWKLQIURPWK(YHQ&KLOHDQG(VWRQLDZHUHMXGJHG
PRUH FRPSHWLWLYH $UH FXPEHUVRPH JRYHUQPHQW UHJXODWLRQV SURYLQJ D GUDJ RQ HQHUJL]LQJ
QHZEXVLQHVVHVWRNLFNVWDUWDQHFRQRPLFUHFRYHU\"$ ,GRQ WEHOLHYHDFRPSHWLWLYHUDQNLQJLVJRLQJWREHHDV\WRFRQVWUXHDVVD\LQJWKDW-DSDQ KDV JRW WR FDWFK XS , EHOLHYH LW V DOUHDG\ WDNLQJ VWHSV 'RHV WKDW PHDQ D
IRUHLJQFRPSDQ\FDQFRPHLQWR-DSDQDQGKHOSDORFDOILUPWUDQVLWLRQWRXSJUDGHWREHFRPHPRUHRIDJOREDOSOD\HU"$EVROXWHO\7KHZLOOLQJQHVVLVWKHUHDVQHYHUEHIRUH
DQGLW VQRWVLPSO\DERXWRXWVRXUFLQJ,WFHUWDLQO\WDNHVORQJHUWRXQGHUVWDQG-DSDQ
WKHUHIRUHLI\RXGRQ WXQGHUVWDQGLW\HWLWLVEHVWWRJHWVRPHRQHWRKHOS\RX'RLQJ EXVLQHVV LQ -DSDQ UHTXLUHV EHLQJ YHU\ FDUHIXO YHU\ VWUXFWXUHG DQG YHU\
GHWHUPLQHG :H GRQ W WKLQN LW V DERXW ILQGLQJ PRQH\ ZH GRQ W WKLQN LW V DERXW EHLQJILUVWWRPDUNHW² ORWVRISHRSOHKDYHEHHQULFKDQGILUVWDQGKDYHIDLOHG:KDWZH UHYHU\VXUHDERXWLVKDYLQJWKHULJKWSDUWQHUV
7KHP\WKLVWKDWLWWDNHVDORQJWLPHWRGREXVLQHVVLQ-DSDQLWGRHVQ W,VLWSRVVLEOH
WREHVXFFHVVIXO"&DQ,JHWWKHSHRSOHDQGFULWLFDOUHVRXUFHV,QHHGJHWFXVWRPHUV"
&DQ,JHWWKHPTXLFNO\"<HVWRDOORIWKRVH&DQ,JHWWKHPDVTXLFNO\DV+RQJ.RQJ"
1REXW-DSDQGZDUIVPDQ\PDUNHWV$QRWKHUP\WKLVWKDWLWZLOOEHPRUHGLIILFXOWWRHQMR\ORQJWHUPWKHEHQHILWVRIKDYLQJFUHDWHGQHZEXVLQHVVRSSRUWXQLWLHVWRSUHYHQWDFRPSHWLWRURUFRS\FDWIURPPRYLQJ
LQ$QGP\DQVZHUWRWKDWLVWKDW VJOREDOWKDWLVMXVWWRGD\,W VQRWDQ\ZRUVHKHUH
WKDQDQ\ZKHUHHOVH
4 -DSDQHVHFRPSDQLHVVHHPXQXVXDOO\FDXWLRXVDERXWWDNLQJDFKDQFHRQHQWUHSUHQHXUVZKLOH-DSDQHVH>HPSOR\HHV@FRQWLQXHWREHZDU\DERXWOHDYLQJWKHFRUSRUDWHQHVW$ 7KHPDUNHWVDUHFKDQJLQJIDVWJOREDOO\DQGYHU\IDVWLQ-DSDQ$VDQHQWUHSUHQHXU
\RX G EHWWHU KDYH D UHDOO\ JRRG LGHD DQG EH UHDG\ IRU SHRSOH WR GHPDQG WKDW \RXSURYHLWWR WKHPUDWKHUWKDQ VLPSO\ JLYH\RXPRQH\DQGWUXVW\RX WRGRLW:LWKWKH
EXEEOH EXUVWLQJ KHUH REYLRXVO\ UHFUXLWHUV DUH KDYLQJ D WRXJKHU WLPH JHWWLQJ SHRSOH
RXW RI WKHLU ROG MREV 3HRSOH DUH OHVV ZLOOLQJ WR WDNH D ULVN DQG MXPS LQWR D VWDUWXSQRZ7KHFXUUHQWVWDWHRIWKHJOREDOPDUNHWVMXVWLILHVZDONLQJDZD\IURPWKDWULVNDQG
VWD\LQJZKHUHWKH\DUHULJKWQRZLIWKH\DUHXQFHUWDLQ
,I \RXDUHDIRUHLJQ ILUP DQG>KDYH@ D JRRG>EXVLQHVV@SODQ WKH ULJKWUHVRXUFHVDQG
\RX UH JRLQJ WR OHW WKH ORFDO HQWUHSUHQHXU KHOS UXQ WKLQJV ² LW V SRVVLEOH WR GUDZSHRSOHRXW%XWLI\RX UHDVNLQJVRPHERG\ZLWKDVWHDG\MREWREHWWKHLUOLIHRQ\RXUVWKDW V KDUG ULJKW QRZ <HW WKHUH DUH VWLOO SOHQW\ RI LQGLYLGXDOV RXW WKHUH ZKR DUHELOLQJXDOLQWHUQDWLRQDOLQIRUPHGDQGULVNWDNHUV,WKLQNZH UHVWDUWLQJWRVHHWKHDJH
RI WKH WUXO\ LQWHUQDWLRQDO -DSDQHVHPDQDJHU 3DUW RI WKDWFDQEH VHHQ LQ WKHIRUHLJQ
ERUQRUWUDLQHGPDQDJHUVWKDWFRPHEDFNWR-DSDQ
'R,H[SHFWXQHPSOR\PHQWWRLQFUHDVHLQ-DSDQ"<RXEHW:DVLWJRRGIRU.RUHD"<RX
EHW:LOOLWWDNHORQJHUKHUHWKDQWKHUH"<HV:H UHQRWJRLQJWRKLWWKHVDPHERWWRP
-DSDQZRQ WEHDVWRXJKPLQGHGLQOHWWLQJODUJHFRUSRUDWLRQVIDLO%HLQJRXWRIZRUNLVIULJKWHQLQJ \HW XQHPSOR\PHQW RIWHQ LV WKH NH\ WR HQHUJL]LQJ WKH FUHDWLRQ RI QHZEXVLQHVVHVDQGLGHDV
4 6LQFH $PHULFDQ KLJKWHFK VWRFNV VWDUWHGWRVOLGHORZHU DQGORZHU YHQWXUHIXQGLQJ IURPDEURDGKDVJRWWHQYHU\WLJKW'R\RXVHHWKDWVLWXDWLRQFKDQJLQJLQWKHQHDUIXWXUH"$$ORWRIIRUHLJQ9& VKDYHVLJQLILFDQWO\SXOOHGEDFN7KLVVLWXDWLRQLVKHOSLQJ-DSDQFUHDWH LWV RZQ YHQWXUH PDUNHW ² ZKLFK ZH QHYHU UHDOO\ KDG EHIRUH ,W LV FUHDWLQJ D
FRPSOHWHO\QHZYHQWXUHFDSLWDOLQGXVWU\DQGZLWKLWVLJQLILFDQWVNLOOVHWVZLOOLQWLPH
OHDG WR UHWXUQV IRU WKRVH YHQWXUH IXQGV 7KRVH UHWXUQV ZLOO DWWUDFW WKH RWKHU SOD\HUVLQWRWKLVPDUNHW /HYHUDJHGEX\RXW IXQGVDQGSULYDWH HTXLW\ IXQGV DUH VWLOOKHUHDQG
ZLOOFRQWLQXHWRKDYHJUHDWRSSRUWXQLW\WRUHSRVLWLRQODUJHFRPSDQLHV%XWWKHIRUHLJQHTXLW\LQYHVWRULVJRLQJWRKDYHWREULQJVRPHWKLQJPRUHWRWKHWDEOH
WKDQ MXVW PRQH\ ,W V DOO DERXW DOOLDQFHV DV PXFK DV ZH KHDU WKH 9& RU LQVWLWXWLRQDOLQYHVWRU ZLOO KHOS \RX WKH\ UH JRLQJ WR KDYH WR SURYH LW :LWK D PL[ RI FXOWXUHVUHJLRQDO DQG JOREDO RSSRUWXQLWLHV DQG FRQIOLFWV LW V H[WUHPHO\ LPSRUWDQW WKDW SHRSOH
EH YHU\ DOLJQHG LQ WKHLU LQWHUHVWV , GRQ W WKLQN ZH DUH DQ\ZKHUH QHDU FORVH WR
SUHGLFWLQJZKR VJRLQJWREHVXFFHVVIXOLQHDFKPDUNHW\HWEXWWKHDPRXQWRIPRQH\
ZHDUHJRLQJWRQHHGWRUHLQYHQWFRPSDQLHVLVKXJH0DUNHWVKDYHQHYHUEHHQEHWWHU
IRUWKLVLQ-DSDQ
4 $UHJRRG-DSDQHVHFRPSDQLHVEHLQJFUHDWHG"$ 7KHIRUHLJQFDSLWDOILUPVDUHQRWILQGLQJWKHJRRGFRPSDQLHVHDVLO\EXWZHVWLOOJHWHQRXJK&RPSDQLHVEHLQJFUHDWHGE\IRUHLJQHUVE\-DSDQHVHRUDFRPELQHGWHDP²
DOOWKUHHKDYHWKHVDPHRSSRUWXQLWLHVWKRXJKZH YHVHHQWKH-DSDQHVHILUPVDEOHWR
WDNH DGYDQWDJH RI WKHP IDVWHU DQG VWD\ RII WKH UDGDU VFUHHQ ORQJHU ,QGXVWU\ E\
LQGXVWU\WKRXJKZHFDQVHHVLJQLILFDQWDGYDQWDJHVIRUPRUHIRUHLJQLQIOXHQFHGILUPV
² ILQDQFH RQOLQH WUDGLQJ DQG WHOHFRPV DUH REYLRXV H[DPSOHV 0RUH PL[HG
FRPSDQLHVDUHVXFFHHGLQJZLWKDFRPELQDWLRQRIVKDUHKROGHUVDQGUHVRXUFHVVLPSO\EHFDXVH EXVLQHVVHV HYHU\ZKHUH DUH JOREDOL]LQJ -9V >MRLQW YHQWXUHV@ DUH D KRW WRSLF
² LV1LVVDQ>DQG5HQDXOW@DVXFFHVV"2K\HV0D]GD>DQG)RUG@"1RW\HW*LYHQWKH
FXUUHQW HQYLURQPHQW LW LV YHU\ HDV\ WR KDYH D FRQYHUVDWLRQ ZLWK DQ\ ILUP WKDW \RXZRXOGOLNHWRDOLJQ\RXUVHOIZLWKWKURXJKDPLQRULW\RUPDMRULW\VWDNH

6XUYLYLQJWKH&KDOOHQJHV6WUDWHJLF3DUWQHUVKLSDQG-RLQWZRUNLQJ&RDOLWLRQV7KHLU&RPSOH[LWLHV 3LWIDOOV1HZ:DYH0HUJHUV $OOLDQFHV6WUDWHJLHVIRUWKHVW&HQWXU\(QWHUSULVLQJ'XEDL8$()HEUXDU\±0DUFK
6SHDNHUV DWWHQGLQJ WKH HYHQW LQFOXGHG $PEDVVDGRU 'LDQD / 'RXJDQ ,QWHUQDWLRQDO&RPPXQLFDWLRQV6WXGLHV&6,6:DVKLQJWRQ0DWWKLDV.OHLQHUW'DLPOHU&KU\VOHU*HUPDQ\'U 3HWHU 6SDOWL :LQWHUWKXU ,QVXUDQFH 6ZLW]HUODQG 'U 'DYLG )DXONQHU 2[IRUG 8QLYHUVLW\
8. 'U ,EUDKLP 6KLKDWD :RUOG %DQN &- :LOVRQ *OREDO $OOLDQFHV -DSDQ 'U (FNDUW
6WRU 6HLPHQV *HUPDQ\ 6WHSKHQ %DUUHW .30* &RUSRUDWH )LQDQFH 3URI -HDQ 3LHUUH-HDQQHW :) *ODYLQ &HQWHU IRU *OREDO /HDGHUVKLS 86 3LHU &DUOR )ODRWWL 2UDFOH
&RUSRUDWLRQ 6ZLW]HUODQG 7KRPDV / 'RRUOH\ ,,, 'HORLWWH &RQVXOWLQJ%UD[WRQ $VVRFLDWHV-HDQ &DOXGH 'HOFURL[ (XURSHDQ ,QWHUQHW ,QGXVWU\ $VVRFLDWLRQ %HOJLXP &UDLJ %DODQFH(OHFWURQLF&RPPHUFH&DQDGDDQG'U$EGXO+DPHHG+DOODE6SHFLDO$GYLVHUWR++7KH

5XOHURI6KDUMDKIRU+LJKHU(GXFDWLRQ6KDUMDK
7KH VXPPLW ZDV LQDXJXUDWHG E\ ++ *HQHUDO 6KDLNK 0RDPPHG ELQ 5DVKLG $O 0DNWRXP
WKH &URZQ 3ULQFH RI 'XEDL DQG WKH 8$( 'HIHQFH 0LQLVWHU LQ WKH SUHVHQFH RI PDQ\SURPLQHQW SHUVRQDOLWLHV +( 1HOVRQ 0DQGHOD 1REHO /DXUHDWH DQG )RUPHU 3UHVLGHQW RI
6RXWK $IULFD +( $KPHG $O 7D\HU 8$( 0LQLVWHU RI &RPPXQLFDWLRQV )RUXP V 'HSXW\+RQRUDU\&KDLUPDQ6XODLPDQ$O0D]URXL&RRUGLQDWRU*HQHUDORIWKH)RUXPGHOLYHUHGWKH
NH\QRWHVSHHFKHV7KHRFFDVLRQZDVDOVRJUDFHGZLWKDPHVVDJHWRWKH)RUXPIURP+(%LOO &OLQWRQ 3UHVLGHQW RI WKH 8QLWHG 6WDWHV ZKLFK ZDV GHOLYHUHG E\ WKH 86 $PEDVVDGRU
+(7KHRGRUH.KDWWRXI$FWXDOFRS\WH[WVRIVSHHFKDUHDYDLODEOHSDUUHTXHVW3OHDVHFRQWDFW*OREDO$OOLDQFHWRUHTXHVW

:DOO6WUHHW-RXUQDO2FWREHU
%\6WHYH*ODLQ6WDII5HSRUWHU
72.<2  0RUQLQJVWDU ,QF WKH &KLFDJREDVHG PXWXDOIXQGV UDWLQJ DJHQF\ LV FORVH WR DQ
DJUHHPHQWZLWKD-DSDQHVHFRPSDQ\WRRIIHULWVVHUYLFHVLQ7RN\RVDLGSHRSOHFORVHWRWKH
QHJRWLDWLRQV
6XFKDQDJUHHPHQWZRXOGFUHDWHWKHILUVWLQGHSHQGHQWPXWXDOIXQGVUDWLQJDJHQF\LQ-DSDQZKHUHILQDQFLDOGHUHJXODWLRQKDVDWWUDFWHGWKHZRUOG VWRSDVVHWPDQDJHPHQWFRPSDQLHV
0RUQLQJVWDU V FKDLUPDQ -RH 0RQVXHWR DFNQRZOHGJHG WKDW KH LV WDONLQJ WR VHYHUDOFRPSDQLHVLQ-DSDQWRMRLQWO\VHWXSDUDWLQJVDJHQF\EXWKHZRXOGQ WLGHQWLI\WKHP:H UHYHU\H[FLWHGDERXWWKHFKDQJHVJRLQJRQLQ-DSDQKHVDLG:KHQ\RXFRQVLGHUKRZPXFKPRQH\ LV EHLQJ KHOG LQ ORZ\LHOGLQJ SRVWDO DFFRXQWV WKH SURVSHFWV IRU VHOOLQJ EHWWHUSHUIRUPLQJPXWXDOIXQGVDUHYHU\JRRG
2QO\RI-DSDQ VKRXVHKROGVDYLQJVZHUHKHOGLQPXWXDOIXQGVODVW\HDUZKLOHRU
DERXW  WULOOLRQ \HQ  WULOOLRQ  ZHUH LQYHVWHG LQ ORZ\LHOG EDQN GHSRVLWV %XW PDQ\-DSDQHVH DQG :HVWHUQ PRQH\ PDQDJHUV H[SHFW D PXWXDOIXQG ERRP KHUH DV -DSDQHVH
VHHNEHWWHUUHWXUQV
7HUPVRIWKH0RUQLQJVWDUDJUHHPHQWKDYH\HWWRKHZRUNHGRXWVDLGWKHSHRSOHFORVHWRWKH
QHJRWLDWLRQV EXW 0RUQLQJVWDU LV H[SHFWHG WR WDNH D ODUJH VWDNH LQ D MRLQW YHQWXUH 2WKHULQYHVWRUVLQWKHYHQWXUHWKH\VDLGDUHH[SHFWHG WRLQFOXGH,),6/WGDVPDOOPXWXDOIXQGVUDWLQJDJHQF\5HXWHUV-DSDQ/WGWKHORFDOVXEVLGLDU\ RIWKH LQWHUQDWLRQDOQHZVVHUYLFHDGLYLVLRQ RI 0LWVXL &R WKH WUDGLQJ JLDQW DQG *OREDO $OOLDQFH /WG DQ $VLDEDVHG
LQYHVWPHQWEDQN
,),6ODXQFKHGLQ-DQXDU\E\WZRIRUPHUIXQGPDQDJHUVILUVWDSSURDFKHG0RUQLQJVWDU
LQ$XJXVWVDLGDVRXUFHLQYROYHGLQWKHQHJRWLDWLRQV
2YHUWKHSDVWVHYHUDO\HDUV7RN\RKDVDGRSWHGDVHULHVRIUHIRUPVWKDWKDYHPDGHLWHDVLHUIRUIRUHLJQLQYHVWPHQWWUXVWFRPSDQLHVWRVHOOIXQGVOLVWHGLQ-DSDQDQGRYHUVHDV,QDGGLWLRQWR ,),6-DSDQKDV WKUHHIXQG  UDWLQJ DJHQFLHVWKDW DUH DIILOLDWHG ZLWK VHFXULWLHV ILUPV DQGRQHRSHUDWHGE\DVXEVLGLDU\RIWKH1LKRQ.HL]DL6KLPEXQ,QFDILQDQFLDOQHZVSDSHU$VLDQ:DOO6WUHHW-RXUQDO2FWREHU
72.<2 ± 3LFWXUH WKLV -DSDQHVH WHHQDJHUV DUH WKURQJLQJ LQVWDQWSKRWR ERRWKV WR JHW WKHLUSLFWXUHVSULQWHGRQVWLFNHUVDQGWKH7RN\RIUDQFKLVHEHKLQGWKHIDGLVIRFXVLQJQH[WRQWKH
86PDUNHW
1DR\D +DUDQR IRXQGHU RI FORVHO\ KHOG $WOXV &R RI -DSDQ VWDUWHG SODFLQJ KLV 3ULQW &OXESKRWRERRWKVLQXUEDQJDWKHULQJVSRWVIRU\RXWKLQ1RZWKHLQGXVWU\LVHVWLPDWHGWREHYDOXHGDWELOOLRQVRIGROODUVDQGWKHERRWKVDUHSRLVHGWRFKDOOHQJHWKH7DPDJRWFKL WKHNH\ FKDLQYLUWXDOSHW DVWKHGLVWUDFWLRQRIFKRLFHDPRQJ-DSDQ V\RXWK
1RZ WKH ILUVW 86 3ULQW &OXEV DUH VHW WR EH VQDSSLQJ PXJV DIWHU D GHEXW LQ (XURSH 0U+DUDQRLVVRFRQILGHQW3ULQW&OXEZLOOZLQRYHU$PHULFDQVWKDWKHSODQVWROLVW$WOXVRQWKH
7RN\R6WRFN([FKDQJHRQ2FW
$FFHVVLELOLW\,V.H\

6XFFHVV LV IDU IURP JXDUDQWHHG VD\V &- :LOVRQ PDQDJLQJ GLUHFWRU RI *OREDO$OOLDQFH/WGDQ$VLDEDVHGLQYHVWPHQWEDQNDQGYHQWXUHFDSLWDOFRPSDQ\$WOXVZLOO
QHHGWRPDNHWKH3ULQW&OXEVDFFHVVLEOHDQGWKDWPHDQVSODFLQJWKHPLQ (OHYHQV
DV ZHOO DV DPXVHPHQW SDUNV KH VD\V 5HWDLOHUV ZLOO QHHG WR NQRZ ZKDW \RX DUHJRLQJWRSXWLQSODFHRIWKLVER[ZKHQWKHIDGIDGHVDQGWKH\ OOZRUU\WKDWDSHUVRQDOFRPSXWHUZLOOGRLWDOOQH[W\HDUDQ\ZD\,Q -DSDQ DW OHDVW 3ULQW &OXE KDV HVWDEOLVKHG LWVHOI ILUPO\ 3ULQW &OXE ERRWKV RQ WKH XUEDQVWUHHWV DQG DOOH\ZD\V RI -DSDQ DUH URXWLQHO\ FURZGHG ZLWK WHHQV XVXDOO\ JLUOV OLQHG XS WR
KDYHWKHLUSLFWXUHVWDNHQ7KHPDFKLQHVSULQWRXWWLQ\SKRWRVRQDGKHVLYHVWULSVWKDWFDQEHVWXFN RQ QDPH FDUGV GLDULHV RU JUHHWLQJ FDUGV 8VHUV FDQ FKRRVH D FRPSXWHU JUDSKLF 
FDUWRRQ FKDUDFWHUV VWDU HQWHUWDLQHUV RU JDJ EDFNGURSV  LQ WKH SKRWR IUDPHV )RU  \HQ DFRQVXPHUFDQKDYHKLVPXJVKRWWDNHQDORQJVLGH0RXQW)XML7ZHHWLH%LUGRUSRSVLQJHU0DULDK&DUH\-DSDQHVHWHHQDJHUVVZDSWKHSKRWRJUDSKVZLWKIULHQGVDQGNHHSWKLFNDOEXPVILOOHGZLWKWKHSKRWRVWLFNHUV$WOXVDPLGVL]H-DSDQHVHFRPSDQ\WKDWVSHFLDOL]HVLQYLGHR JDPHVRIWZDUHFRQWUROVWZRWKLUGVRIWKHSKRWR ERRWKPDUNHWLQ-DSDQ3ULQW&OXEVDOHVSURYLGHGRIWKHFRPSDQ\ VELOOLRQ\HQ PLOOLRQ LQUHYHQXHODVW\HDU

/DWHUWKLVPRQWKLWKRSHVWRDQQRXQFHDWLHXSZLWKVXFKFRPSDQLHVDV(DVWPDQ.RGDN&R
DQG ,QWHUQDWLRQDO %XVLQHVV 0DFKLQHV &RUS WR KHOS GLVWULEXWH 3ULQW &OXEV LQ WKH 86
DFFRUGLQJWRDQ,%0RIILFLDOLQ7RN\R0U+DUDQRKDVREWDLQHGWKHULJKWVWRIHDWXUHLPDJHVRI VLQJHUV 0DULDK &DUH\ DQG &HOLQH 'LRQ LQ $WOXV V 86 PDFKLQHV LQ DGGLWLRQ WR FDUWRRQFKDUDFWHUV DQG HQWHUWDLQHUV DIILOLDWHG ZLWK D PDMRU 86 PXOWLPHGLD FRPSDQ\ KH VD\V'LVFORVXUHODZVUHODWLQJWRWKHVWRFNPDUNHWOLVWLQJSUHYHQWKLPIURPQDPLQJWKHFRPSDQ\
0U+DUDQR VD\V$WOXV KDV ULJKWV WR XVHLPDJHV RI FKDUDFWHUVDQG HQWHUWDLQHUVIURP 7LPH
:DUQHU,QFDQG:DOW'LVQH\&RLQLWV-DSDQHVH3ULQW&OXEV

7KH ILUVW ZDYH RI 86 3ULQW &OXEV ZLOO ODQG LQ /RV $QJHOHV DQG +RQROXOX ZKHUH VDPSOHNLRVNV DOUHDG\ KDYH EHHQ ZHOOUHFHLYHG 0U +DUDQR VD\V 7KH PDFKLQHV ZLOO EH SODFHG
SULPDULO\DWFRQYHQLHQFHVWRUHVDQGYLGHRJDPHSDUORUVDQGDWHYHQWVOLNHVWRFN FDUUDFHV
DQG ZLOO WDUJHW WHHQDJHUV 7KH 86 3ULQW &OXEV ZLOO IHDWXUH $PHULFDQ VSRUWV KHURHVHQWHUWDLQHUV DQG FDUWRRQ FKDUDFWHUV PDQ\ RI ZKRP DUH DOUHDG\ XVHG LQ WKH -DSDQHVHPDFKLQHV DOWKRXJK VRPH FKDQJHV KDYH EHHQ PDGH :H VXEVWLWXWHG 0RXQW )XML ZLWK WKH6WDWXHRI/LEHUW\0U+DUDQRVD\V
0U+DUDQRKDVDNQDFNIRUVSRWWLQJIDGV+HVWDUWHG$WOXVLQZLWKDKDQGIXORISHRSOHZKRZRUNHGZLWKKLPDWDVPDOODPXVHPHQWJDPHVRIWZDUHFRPSDQ\MXVWZKHQWKHYLGHR
JDPH FUD]H ZDV JDLQLQJ VWHDP +H ERUURZHG  PLOOLRQ \HQ IURP IULHQGV DQG VRRQ WKHFRPSDQ\ZDVZULWLQJVRIWZDUHIRU6HJDDQG-DSDQ VRWKHUYLGHRJDPHJLDQW1LQWHQGR&R

'RPLQDQW*ULS+LVREVHVVLRQZLWKSKRWRERRWKVEHJDQWZR\HDUVDJRZKHQDVWDIIZRUNHUDSSURDFKHGKLPZLWKDWLQ\SKRWRJUDSKRIKHUDQGWZRIULHQGVZKLFKZDVSULQWHGRQDQDGKHVLYHVWULSDOEHLWZLWKRXWDQ\JUDSKLFLPDJHV6KHWKRXJKWLWZDVDORWRIIXQVD\V0U+DUDQR6R,WRRND
ORQJZDONRXWVLGHWKHRIILFHDQGQRWLFHGVFKRROJLUOVZHUHOLQLQJXSLQIURQWRIWKHVHWKLQJV$WOXVKDVPDQDJHGWRNHHSLWVGRPLQDQWJULSZLWKDVXSHULRUVDOHVDQGVHUYLFHQHWZRUNWKDWKDVUHGXFHGWKHDYHUDJHUHVSRQVHWLPHWRUHSRUWHGEUHDNGRZQVWRDERXWDQKRXUFRPSDUHGZLWK DQ DYHUDJH RI VHYHUDO KRXUV WR D GD\ VD\V -LP 0LOOHU FKLHI H[HFXWLYH RIILFHU DQGSUHVLGHQW RI ,PDJH:DUH 6RIWZDUH ,QF 7KH 6DQ 'LHJR  EDVHG ,PDJH:DUH SLRQHHUHG WKHHOHFWURQLFSKRWRERRWKDQGKDVOLFHQVHGRQHRILWVSDWHQWVWR$WOXV+H V EHHQ YHU\ WKRXJKWIXO DERXW WKLV 0U 0LOOHU VD\V +H GLGQ W MXVW SXW RXW D WKRXVDQGPDFKLQHV DQG ILJXUH RXW KRZ WR VHUYLFH WKHP ODWHU ZKLFK LV D PLVWDNH D ORW RI FRPSDQLHVPDNH,VDOXWHKLPIRUKLVGLVFLSOLQH

:DOO6WUHHW-RXUQDO DOOHGLWLRQV $SULO3DJH
%\6WHYH*ODLQ6WDII5HSRUWHU
72.<2 ± 6RPH DQDO\VWV DUH XUJLQJ VWRFN SLFNHUV ORRNLQJ IRU ORQJWHUP YDOXH LQ -DSDQ WR
FRQVLGHU RQH RI WKH ROGHVW DQG PRVW YHQHUDEOH VHFWRUV RI WKH HFRQRP\ WKH WUDGLQJKRXVHV %DQNHUV DQG DQDO\VWV VD\ WKH WUDGLQJ FRPSDQLHV DUH XVLQJ WKHLU YDVW QHWZRUNV
DQG FRQWDFWV RYHUVHDV WR LGHQWLI\ DQG LQWURGXFH WKH QHZ WHFKQRORJLHV -DSDQ QHHGV WR
RYHUKDXOLWVODJJLQJFRPPXQLFDWLRQVDQGPXOWLPHGLDLQGXVWULHV)RFXVRQ3URILWDELOLW\7KHWUDGLQJFRPSDQLHVKDYHWKHJUHDWHVWFKDQFHWRPDNHDGLIIHUHQFHE\QXUWXULQJ
RU FDSWXULQJ QHZ YHQWXUHV VD\V &OLIWRQ - :LOVRQ WKH FKDLUPDQ DQG IRXQGHU RI

*OREDO$OOLDQFHD7RN\REDVHGYHQWXUHFDSLWDOFRPSDQ\7KH\NQRZWKHGDQJHUVRIQRWFKDQJLQJZLWKWKHWLPHV2QO\ D IHZ \HDUV DJR WKH WUDGLQJ FRPSDQLHV ZHUH UHHOLQJ IURP D VHULHV RI LOO  IDWHG
LQYHVWPHQWVWKDW KHOSHG IXHODVVHWLQIODWLRQLQ-DSDQ V EXEEOHHFRQRP\ %XW DQDO\VWV VD\
PRVWRI-DSDQ VQLQHPDMRUWUDGLQJ KRXVHVDUH ZULWLQJ GRZQWKHLU EDGGHEW DQGQRZVHHP
PRUHFRQFHUQHGZLWKSURILWDELOLW\WKDQKROGLQJVKRZFDVHDVVHWVOLNHJROIFRXUVHVDQGPRYLH
VWXGLRV $QDO\VWV DOVR VWUHVV WKDW WKH QHZ EXVLQHVVHV OLNH PXOWLPHGLD DQGWHOHFRPPXQLFDWLRQVVWLOODFFRXQWIRUDVPDOOSRUWLRQRIWKHWUDGLQJFRPSDQLHV WRWDOSRUWIROLRVDUHIOHFWLRQRIWKHDWWHQGDQWULVNV

:DOO6WUHHW-RXUQDO DOOHGLWLRQV 1RYHPEHU3DJH
)RUHLJQ (QWUHSUHQHXUV ILQG IHUWLOH JURXQG IRU VWDUWSV LQ -DSDQ %\ 6WHYH *ODLQ 6WDII5HSRUWHU
72.<2 ± WKH -DSDQHVH PDUNHWSODFH PD\ ORRN OLNH D MXQJOH IURP WKH RXWVLGH EXW VRPH
SLRQHHULQJIRUHLJQHQWUHSUHQHXUVVHHLWDVWKH1HZ)URQWLHU
)RULQVWDQFHZKHQ<XML6X]XNLGHVSHUDWHO\QHHGHGDFDSLWDOLQIXVLRQWKLV\HDUIRUKLVFRPSDQ\DFRUUXJDWHG ER[PDNHUQDPHG7UL :DOO..KHWXUQHGWR&OLIWRQ:LOVRQ
3UHVLGHQWRI*OREDO$OOLDQFH-DSDQ,QF0U:LOVRQIRXQGHGWKHYHQWXUH FDSLWDOILUPODVW\HDUDIWHUVSHQGLQJVL[\HDUVZLWK0HUULOO/\QFK &RDQGD-DSDQHVHEDQN0U
6X]XNL SUHVLGHQW DQG PDMRULW\ VKDUHKROGHU RI 7UL:DOO KDG MXVW ORVW D PDMRUVKDUHKROGHUZKLFKOHIWWKHFRPSDQ\XQGHUFDSLWDOL]HG)LQGLQJ)XQGV
0U:LOVRQUDLVHGPLOOLRQLQWKUHHPRQWKVIURPVRPH$VLDQSDSHUFRPSDQLHVWKDWKDGERXJKWULJKWVWRXVH7UL :DOO VORJREXWKDGGLVVROYHGHDUOLHUHTXLW\OLQNVWRWKH
FRPSDQ\ 5HQDPHG 1HZ 7UL  :DOO .. LQ )HEUXDU\ WKH FRPSDQ\ H[SHFWV VDOHV RI
DERXW  PLOOLRQ WKLV \HDU 0U 6X]XNL VD\V KH GLGQ W HYHQ ERWKHU DVNLQJ -DSDQHVH
LQYHVWPHQWEDQNVIRUKHOS7KHUHLVQ WD-DSDQHVHILUPWKDWFRXOGKDYHSXOOHGLWRII
KHVD\V$FFRUGLQJ WR <DVXPDVD ,VKL]DND PDQDJLQJ GLUHFWRU RI LQYHVWPHQWDGYLVHU &KLQD &DSLWDO+ROGLQJV,QF0RVW-DSDQHVHYHQWXUHFDSLWDOLVWVDUHRQVDODU\VRWKHUH VDGLVLQFHQWLYHWR
WDNH ULVNV,I\RX PDNH D GHFLVLRQ WKDWJRHVZURQJ LW V WURXEOH,I\RX PDNH RQHWKDW JRHVULJKWWKHUH VQRXSVLGH
2QH RI 0U :LOVRQ V VHFUHWV :H YH JRQH ORFDO +H IRUPHG D ERDUG IURP D FLUFOH RI
-DSDQHVH EXVLQHVVPHQ KH NQHZ IURP SUHYLRXV GHDOV +H IRXQG FKHDS RIILFH VSDFH E\
VXEOHDVLQJ IURP D GLUHFWRU DQG KH IRXQG VHFUHWDULHV ODUJHO\ WKURXJK UHIHUUDOV IURP IULHQGVDQGFRQWDFWV

(852021(<&21)(5(1&(9DOXLQJLQ(PHUJLQJ0DUNHWV/RQGRQ8. 6HSWHPEHU
$FWXDOFRS\WH[WVRIVSHHFKDUHDYDLODEOHSDUUHTXHVW3OHDVHFRQWDFW*OREDO$OOLDQFHWRUHTXHVW