6FLHQFH DQG 5HDFWRU )XQGDPHQWDOV ± ,QVWUXPHQWDWLRQ &RQWURO &16&7HFKQLFDO7UDLQLQJ*URXS
&21752/
,1752'8&7,21
&RQWURORIWKHSURFHVVHVLQWKHSODQWLVDQHVVHQWLDOSDUWRIWKHSODQW RSHUDWLRQ7KHUHPXVWEHHQRXJKZDWHULQWKHERLOHUVWRDFWDVDKHDW VLQNIRUWKHUHDFWRUEXWWKHUHPXVWQRWEHZDWHUIORZLQJRXWWKHWRSRI WKHERLOHUVWRZDUGVWKHWXUELQH7KHOHYHORIWKHERLOHUPXVWEHNHSW ZLWKLQDFHUWDLQUDQJH7KHKHDWWUDQVSRUWSUHVVXUHLVDQRWKHUFULWLFDO SDUDPHWHUWKDWPXVWEHFRQWUROOHG,ILWLVWRRKLJKWKHV\VWHPZLOO EXUVWLILWLVWRRORZWKHZDWHUZLOOERLO(LWKHUFRQGLWLRQLPSDLUVWKH DELOLW\RIWKHKHDWWUDQVSRUWV\VWHPWRFRROWKHIXHO ,QWKLVVHFWLRQZHZLOOORRNDWWKHYHU\EDVLFVRIFRQWURO:HZLOO H[DPLQHWKHIXQGDPHQWDOFRQWUROEXLOGLQJEORFNVRISURSRUWLRQDO LQWHJUDODQGGLIIHUHQWLDODQGWKHLUDSSOLFDWLRQWRVRPHVLPSOHV\VWHPV
%$6, %$6,&& &&21 2175 752/ 2/3 35, 5,1& 1&,3 ,3/( /(6 6
&RQVLGHUDW\SLFDOSURFHVVFRQWUROV\VWHP)RUDSDUWLFXODUH[DPSOHOHW XVORRNDWDQRSHQWDQNZKLFKVXSSOLHVDSURFHVVVD\DSXPSDWLWV RXWSXW7KHWDQNZLOOUHTXLUHDVXSSO\WRPDLQWDLQLWVOHYHODQGWKHUHIRUH WKHSXPS¶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±WKHLQIORZRURXWIORZIURPWKHV\VWHP ,IZHORRNPRUHFORVHO\DWRXUVDPSOHV\VWHP)LJXUHDVVXPLQJWKH OHYHOLVDWWKHVHWSRLQWWKHLQIORZWRWKHV\VWHPDQGRXWIORZDUH EDODQFHG2EYLRXVO\QRFRQWURODFWLRQLVUHTXLUHGZKLOVWWKLVVWDWXVTXR H[LVWV&RQWURODFWLRQLVRQO\QHFHVVDU\ZKHQDGLIIHUHQFHRUHUURUH[LVWV EHWZHHQWKHVHWSRLQWDQGWKHPHDVXUHGOHYHO'HSHQGLQJRQZKHWKH UWKLV HUURULVDSRVLWLYHRUQHJDWLYHTXDQWLW\WKHDSSURSULDWHFRQWUROFRUUHFWLRQ ZLOOEHPDGHLQDQDWWHPSWWRUHVWRUHWKHSURFHVVWRWKHVHWSRLQW
5HYLVLRQ±-DQXDU\
1RWH
6FLHQFH DQG 5HDFWRU )XQGDPHQWDOV ± ,QVWUXPHQWDWLRQ &RQWURO &16&7HFKQLFDO7UDLQLQJ*URXS
+HQFHIRUWKWKHHUURUZLOODOZD\VWDNHWKHIRUPRI (UURU 6HWSRLQW ± 0HDVXUHG 4XDQWLW\ 25 H 63 0
,QIORZ 6XSSO\
O OOO
O
O O O O
/HYHO &RQWUROOHG9DULDEOH 3XPS 2YHUIORZ )LJXUH
7KHFRQWURODFWLRQZLOOEHHLWKHUWRYDU\WKHLQIORZRURXWIORZIURPWKH V\VWHPLQRUGHUWRNHHSWKHOHYHODWWKHVHWSRLQW/HWXVFRQVLGHUWKH JHQHUDOIRUPDWIRUDFKLHYLQJWKHVHREMHFWLYHV $VFDQEHVHHQIURP)LJXUHWKHSURFHVVFDQEHUHSUHVHQWHGE\DFORVHG ORRS7KHV\VWHPRXWSXWOHYHOLVPRQLWRUHGE\DSURFHVVVHQVRUDQGWKH PHDVXUHPHQWVLJQDOLVIHGEDFNWRDFRPSDUDWRUDWWKHLQSXWRIWKH V\VWHP7KHVHFRQGLQSXWWRWKHFRPSDUDWRULVWKHVHWSRLQWVLJQDOWKH FRPSDUDWRU¶VRXWSXWEHLQJWKHGLIIHUHQFHRUHUURUVLJQDO7KHDPSOLILHUD SUHVHQWMXVWDEODFNER[ZLOOSURYLGHWKHDSSURSULDWHFRUUHFWLRQWR PDLQWDLQWKHSURFHVVDWLWVVHWSRLQWGHVSLWHGLVWXUEDQFHVWKDWPD\RFFXU ,WFDQEHVHHQWKDWLIWKHV\VWHPZHUHEHLQJRSHUDWHGLQPDQXDOFRQWURO WKHIHHGEDFNSDWKZRXOGQRWEHSUHVHQW7KHRSHUDWRUZRXOGSURYLGHWKLV IHHGEDFNDQGDSSO\WKHQHFHVVDU\FRUUHFWLRQWRWKHV\VWHPZKLOVW REVHUYLQJWKHHIIHFWRQWKHFRQWUROOHGYDULDEOH7KLVLVWHUPHGRSHQORRS RSHUDWLRQ
5HYLVLRQ±-DQXDU\
1RWH
6FLHQFH DQG 5HDFWRU )XQGDPHQWDOV ± ,QVWUXPHQWDWLRQ &RQWURO &16&7HFKQLFDO7UDLQLQJ*URXS
1RWH
'LVWXUEDQFHV
&RQWUROOHU 6HW3RLQW
&RPSDUDWRU
(UURU 630
0HDVXUHPHQW 6LJQDO
$PSOLILHU
0DQLSXODWHG 9DULDEOH
2XWSXW
3URFHVV 7DQN
&RQWUROOHG 9DULDEOH/HYHO
3URFHVV 6HQVRU
)LJXUH )HHGEDFN&RQWURO%ORFN'LDJUDP )HHGE )HHGEDFN DFN&R &RQWU QWURO RO
7KLVFRQFHSWMXVWLILHVWKHXVHRIWKHZRUGQHJDWLYHLQWKUHHZD\V
x 7KHQHJDWLYHDVSHFWRIIHHGLQJWKHPHDVXUHGVLJQDOEDFNZDUGV IURPWKHRXWSXWWRWKHLQSXWRIWKHV\VWHP$FWXDOGHILQLWLRQRI QHJDWLYHIHHGEDFNFRQWURO
x 7KHFRQWUROFRUUHFWLRQPXVWEHQHJDWLYHLQWKDWDFRUUHFWLRQ UDWKHUWKDQDFRPSRXQGLQJRIHUURUPXVWRFFXU
x 7KHIDFWWKDWDQHUURUPXVWRFFXUEHIRUHDFRUUHFWLRQFDQWDNH SODFHLHUHWURVSHFWLYHRUQHJDWLYHFRQWURODFWLRQ ,QWKHQH[WVHFWLRQZHZLOOVWXG\LQPRUHGHWDLOWKHPHWKRGVXVHGWR HIIHFWWKHQHFHVVDU\FRQWUROFRUUHFWLRQV )HHG )HHGIRU IRUZDU ZDUG& G&RQW RQWURO URO
,IZHZLVKWRFRQWURORXUSURFHVVZLWKRXWDQHUURUILUVWRFFXUULQJZH PXVWEDVHRXUFRQWURORQFRUUHFWLRQRIWKHGLVWXUEDQFHVZKLFKZLOO HYHQWXDOO\FDXVHDSURFHVVHUURU7KLVLVWHUPHGIHHGIRUZDUGFRQWURO )HHGIRUZDUGFRQWUROLVUDUHO\LIHYHUXVHGRQLWVRZQEXWLVXVHGLQ FRQMXQFWLRQZLWKIHHGEDFNFRQWUROWRLPSURYHWKHUHVSRQVHRIFRQWUROWR SURFHVVGLVWXUEDQFHV
5HYLVLRQ±-DQXDU\
6FLHQFH DQG 5HDFWRU )XQGDPHQWDOV ± ,QVWUXPHQWDWLRQ &RQWURO &16&7HFKQLFDO7UDLQLQJ*URXS
6XPPD XPPDUU\
x &RQWUROOHG9DULDEOH±RXWSXWTXDQWLW\RIV\VWHP/HYHO 7HPSHUDWXUHHWF
x 0DQLSXODWHG9DULDEOH±PHDQVRIPDLQWDLQLQJFRQWUROOHGYDULDEOH DWWKHVHWSRLQW
x (UURUVLJQDO±HTXDOVWKHGLIIHUHQFHEHWZHHQWKHVHWSRLQWDQGWKH PHDVXUHPHQWH63±0
x 6HWSRLQW±GHVLUHGSURFHVVOHYHO63 x 0HDVXUHPHQW±DFWXDOSURFHVVOHYHO0 x &ORVHG/RRS±DXWRPDWLFFRQWURO x 2SHQ/RRS±PDQXDOFRQWURO x )HHGEDFNFRQWUROLVHUURUFRUUHFWLRQIROORZLQJDGLVWXUEDQFH x )HHGIRUZDUGFRQWUROLVFRQWURORIGLVWXUEDQFHVZKLFKFRXOG FDXVHDSURFHVVHUURU
5HYLVLRQ±-DQXDU\
1RWH
6FLHQFH DQG 5HDFWRU )XQGDPHQWDOV ± ,QVWUXPHQWDWLRQ &RQWURO &16&7HFKQLFDO7UDLQLQJ*URXS
9
63
O OO
4LQ
4RXW
O OO
/ /
1RWH
,QIORZ
(OHFWULFDOO\2SHUDWHG 6ROHQRLGYDOYH
3
6ROHQRLG 3RZHU6XSSO\
3FORVHV#/ 3RSHQV#/
212)) 212))&2 &2175 1752/ 2/ )LJXUH 7\SLFDO2Q2II&RQWURO6FKHPH
/HWXVFRQVLGHURXUOHYHOFRQWUROV\VWHPLQDOLWWOHPRUHSUDFWLFDOGHWDLO 7KHYDOYHLQWKHLQIORZOLQHWRWKHV\VWHPLVDQHOHFWULFDOO\RSHUDWHG VROHQRLGYDOYH5HPHPEHUDQHOHFWULFDOO\RSHUDWHGVROHQRLGYDOYHKDV RQO\WZRRSHUDWLQJSRVLWLRQV±IXOO\RSHQRUIXOO\FORVHG$VVXPHWKDW XQGHULQLWLDOFRQGLWLRQVZLWKDGHPDQGRQWKHV\VWHPWKHOHYHOZLOOVWDUW WRIDOODQG9ZLOOKDYHWREHRSHQHGWRSURYLGHDQLQIORZ7KLVFDQ HDVLO\EHDFKLHYHGE\PRXQWLQJDGLIIHUHQWLDOSUHVVXUHVZLWFK3DWWKH ERWWRPRIWKHWDQNWRRSHUDWHZKHQWKHOHYHOIDOOVWR/:KHQWKHOHYHO LVDW/WKHOLTXLGZLOOEHKHLJKWKDERYHVZLWFK7KHSUHVVXUHDWWKH VZLWFKZLOOEH3JK ±WKHPDVVGHQVLW\RIWKHOLTXLG
J±WKHDFFHOHUDWLRQGXHWRJUDYLW\ K±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
5HYLVLRQ±-DQXDU\
6FLHQFH DQG 5HDFWRU )XQGDPHQWDOV ± ,QVWUXPHQWDWLRQ &RQWURO &16&7HFKQLFDO7UDLQLQJ*URXS
HQHUJL]HGRUGHHQHUJL]HG,WLVRIWHQFRXQWHUSURGXFWLYHWRWU\WRUHGXFH WKHGLIIHUHQWLDOEHWZHHQ/DQG/WRWRRVPDOODYDOXHDVWKLVZLOOUHVXOW LQH[FHVVLYHF\FOLQJDQGKHQFHZHDURIWKHYDOYH8VXDOSUDFWLFHLVWR FRQWUROZLWKDGHDGEDQGDERXWWKHVHWSRLQWDVVKRZQLQ)LJXUH
/
63
WLPH
/
3HULRGLF7LPH
)LJXUH 7\SLFDO2Q2II5HVSRQVH
7KHVLQXVRLGDOF\FOLQJLVW\SLFDORIRQRIIFRQWURORQRIIFRQWUROFDQEH XVHGWRDGYDQWDJHRQDVOXJJLVKV\VWHPLHZKHUHWKHSHULRGLFWLPHLV ODUJH7\SLFDOXVHVLQ&$1'8XQLWVDUHHOHFWULFKHDWHUFRQWUROVLQGH DHUDWRUWDQNVDQG3+76EOHHGFRQGHQVHUDQGSUHVVXUL]HU ,IILQHFRQWUROLVUHTXLUHGDVLPSOHRQRIIFRQWUROV\VWHPLVLQDGHTXDWH :HZLOOGLVFXVVDPHWKRGIRUDFKLHYLQJDILQHUFRQWUROLQWKHQH[W VHFWLRQ
6XPPD XPPDUU\
x 2QRIIFRQWUROFRQWUROVLJQDOLVHLWKHURU x &RQWURODWVHWSRLQWQRWDFKLHYDEOHDGHDGEDQGPXVWEH LQFRUSRUDWHG
x 8VHIXOIRUODUJHVOXJJLVKV\VWHPVSDUWLFXODUO\WKRVH LQFRUSRUDWLQJHOHFWULFKHDWHUV
5HYLVLRQ±-DQXDU\
1RWH
6FLHQFH DQG 5HDFWRU )XQGDPHQWDOV ± ,QVWUXPHQWDWLRQ &RQWURO &16&7HFKQLFDO7UDLQLQJ*URXS
%$6,&3523257,21$/&21752/
1RWH
,QRXUH[DPSOHRIRQRIIFRQWUROLWZDVVHHQWKDWDQDOORUQRWKLQJFRQWURO FRUUHFWLRQZDVDSSOLHGDVWKHUHVXOWRIDQHUURUVLJQDORFFXUULQJ&OHDUO\ LWZRXOGEHWRRXUDGYDQWDJHLIWKHFRQWUROVLJQDOZHUHSURSRUWLRQDOWR WKHPDJQLWXGHRIHUURU7KLVLVWKHEDVLVRISURSRUWLRQDOFRQWURODQGLV WKHPRVWIUHTXHQWO\HQFRXQWHUHGFRQWUROPRGH+RZFDQWKLVFRQWUROEH DFKLHYHG"5HIHUULQJWR)LJXUHLWFDQEHVHHQWKDWZHFDQPRGLI\RXU V\VWHPWRXVHDSQHXPDWLFDOO\RSHUDWHGFRQWUROYDOYHDQGDOHYHO WUDQVPLWWHUZLWKD±N3DSQHXPDWLFRXWSXW
9
63
4R
O OO
4LQ
O OO
$& $&
/7
N3D
)LJXUH/HYHO&RQWURORI2SHQ7DQN
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
5HYLVLRQ±-DQXDU\
6FLHQFH DQG 5HDFWRU )XQGDPHQWDOV ± ,QVWUXPHQWDWLRQ &RQWURO &16&7HFKQLFDO7UDLQLQJ*URXS
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±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
5HYLVLRQ±-DQXDU\
1RWH
6FLHQFH DQG 5HDFWRU )XQGDPHQWDOV ± ,QVWUXPHQWDWLRQ &RQWURO &16&7HFKQLFDO7UDLQLQJ*URXS
1RWHDQLQFUHDVHGLQIORZFDQRQO\EHDFKLHYHGDVDUHVXOWRIDORZHU OHYHOLQWKHWDQN7KHOHYHOLVQRORQJHUDWWKHVHWSRLQWDQRIIVHWKDVEHHQ JHQHUDWHG ,QIORZ 9DOYH
3LYRW
OO O O O
O O
)ORDW
O O O O OO
2XWIORZ
)LJXUH 6LPSOH3URSRUWLRQDO&RQWURO
6XP 6XPPD PDU\ U\
x 3URSRUWLRQDOFRQWUROSURYLGHVDFRQWUROVLJQDOSURSRUWLRQDOWRWKH PDJQLWXGHDQGGLUHFWLRQRIWKHHUURUVLJQDO
x $IWHUDGLVWXUEDQFHSURSRUWLRQDOFRQWUROZLOOSURYLGHRQO\DQHZ PDVVEDODQFHVLWXDWLRQ$FKDQJHLQFRQWUROVLJQDOUHTXLUHVD FKDQJHLQHUURUVLJQDOWKHUHIRUHRIIVHWZLOORFFXU
x 3URSRUWLRQDOFRQWUROVWDELOL]HVDQHUURULWGRHVQRWUHPRYHLW
5HYLVLRQ±-DQXDU\
1RWH
6FLHQFH DQG 5HDFWRU )XQGDPHQWDOV ± ,QVWUXPHQWDWLRQ &RQWURO &16&7HFKQLFDO7UDLQLQJ*URXS
3URS 3URSRU RUWL WLRQ RQDO DO& &RQ RQWU WURO RO
1RWH
7HU 7HUPL PLQR QROR ORJ\ J\
00HDVXUHPHQW6LJQDO 636HWSRLQW H(UURU H63±01RWH ,I0!63WK ,I0!63WKHQHLV HQHLVQHJDWL QHJDWLYH YH ,I 063 WKHQ H LV SRVLWLYH P&RQWUROOHU6LJQDO2XWSXW' LQ23ILQDO±LQLWLDO N N*D *DLQ LQ
ZKHQ ZKHQF FRQ RQWU WURO ROOH OHU UXV XVHV HVH H 6 63 3± ±0 0 7+(1 . LV QHJDWLYH IRU 'LUHFW $FWLQJ . LV SRVLWLYH IRU 5HYHUVH $FWLQJ
EELDVXVXDOO\RIRXWSXWVSDQ PNHE
nn'LUHFW$FWLRQ0nPn np5HYHUVH$FWLRQ0nPp 3%3URSRUWLRQDO%DQG 6PDOOQDUURZ3%+LJK*DLQ /DUJHZLGH3%/RZ*DLQ *DLQN
3%
'2XWSXW ' ,QSXW
'YDOYH ' SURFHVV
3UDFWLF 3UDFWLFDO3 DO3URSR URSRUWLR UWLRQDO QDO&RQW &RQWURO URO
$PRUHSUDFWLFDOSURSRUWLRQDOFRQWUROVFKHPHFDQEHDFKLHYHGE\ LQVHUWLQJDFRQWUROOHUEHWZHHQWKHOHYHOWUDQVPLWWHUDQGWKHFRQWUROYDOYH 7KLVZLOOHOLPLQDWHWKHVHWWLQJXSSUREOHPVPHQWLRQHGLQWKHSUHYLRXV PRGXOHLHLWZLOOKDYHDVHWSRLQWFRQWURODQGDOVRLQWURGXFHRWKHU DGYDQWDJHVZKLFKZLOOEHGLVFXVVHGLQWKLVVHFWLRQ ,QDSUDFWLFDOV\VWHPRQHRIWKHSULPDU\FRQVLGHUDWLRQVLVWKHIDLOXUH PRGHRIWKHYDOYH
5HYLVLRQ±-DQXDU\
6FLHQFH DQG 5HDFWRU )XQGDPHQWDOV ± ,QVWUXPHQWDWLRQ &RQWURO &16&7HFKQLFDO7UDLQLQJ*URXS
,QRXUH[DPSOHRIDQRSHQWDQNZLWKDYDOYHRQWKHLQIORZLWZRXOGEH UHDVRQDEOHWRDVVXPHWKDWWKHYDOYHVKRXOGFORVHLQWKHHYHQWRIDQDLU VXSSO\IDLOXUHWRSUHYHQWWKHWDQNRYHUIORZLQJLHDQDLUWRRSHQYDOYH
$2
63
O OO
4RXW
4LQ
O OO
N3D /,&
/7
)LJXUH 2SHQ7DQN&RQWURO
7RDFKLHYHWKHQHFHVVDU\FRQWURODFWLRQRQVD\DIDOOLQJWDQNOHYHOLWLV QHFHVVDU\WRFRQYHUWWKHGHFUHDVLQJRXWSXWRIWKHOHYHOWUDQVPLWWHUWRDQ LQFUHDVLQJLQSXWVLJQDOWRWKHFRQWUROYDOYH7KHOHYHOFRQWUROOHUZLOO SHUIRUPWKLVIXQFWLRQDQGLVWHUPHGDQLQGLUHFWRUUHYHUVHDFWLQJnp FRQWUROOHU,WFDQEHVHHQWKDWLIWKHYDOYHDFWLRQKDGEHHQFKRVHQDLUWR FORVHWKHQWKLVUHYHUVDOZRXOGQRWKDYHEHHQUHTXLUHGDQGDGLUHFWnn DFWLQJFRQWUROOHUFRXOGKDYHEHHQXVHG1RUPDOO\FRQWUROOHUVDUHFDSDEOH RISHUIRUPLQJHLWKHUFRQWURODFWLRQGLUHFWRUUHYHUVHE\DVLPSOH VZLWFKLQJSURFHVV 7KHFRQWUROOHUZLOODOVRDFFHSWRXUGHVLUHGVHWSRLQWLQSXWDQGSHUIRUPWKH FRPSDULVRQEHWZHHQVHWSRLQWDQGPHDVXUHPHQWWRFDOFXODWHWKHHUURU¶V PDJQLWXGHDQGGLUHFWLRQ 8SWRQRZZHKDYHRQO\DVVXPHGSURSRUWLRQDOLW\FRQVWDQWRURQHLH WKHFRQWUROVLJQDOHTXDOVWKHLQSXWHUURU,VWKLVDOZD\VWKHEHVWUDWLR" &RQVLGHUWKHIROORZLQJJUDSKVRILQSXWRXWSXWDQGOHYHOZLWKUHVSHFWWR WLPH
5HYLVLRQ±-DQXDU\
1RWH
6FLHQFH DQG 5HDFWRU )XQGDPHQWDOV ± ,QVWUXPHQWDWLRQ &RQWURO &16&7HFKQLFDO7UDLQLQJ*URXS
1HZPDVVEDODQFH RFFXUVKHUH
/RVVLQ9ROXPH
1RWH
2XWIORZ ,QIORZ
,QSXW2XWSXW W
WLPH
W W
/HYHORULJLQDOO\ DWVHWSRLQW 2IIVHW
/HYHO W
W
1HZOHYHO EHORZVHWSRLQW
WLPH
)LJXUH3URSRUWLRQDO&RQWURO5HVSRQVH&XUYH
,WFDQEHVHHQWKDWDVWHSLQFUHDVHLQGHPDQGRXWIORZKDVRFFXUUHGDW WLPHWWKHUHVXOWLQJFRQWUROFRUUHFWLRQKDVFDXVHGDQHZPDVVEDODQFHWR EHDFKLHYHGDIWHUVRPHWLPHW$WWKLVWLPHXQGHUWKHQHZPDVVEDODQFH FRQGLWLRQVWKHOHYHOZLOOVWDELOL]HDWVRPHOHYHOEHORZWKHRULJLQDO VHWSRLQWLHDQRIIVHWKDVRFFXUUHGWKHORVVLQYROXPHEHLQJ UHSUHVHQWHGE\WKHVKDGHGDUHDEHWZHHQWKHLQSXWDQGRXWSXWFXUYHV 1HZPDVV RFFXUVKHUH
/RVVLQ 9ROXPH 2XWIORZ ,QSXW2XWSXW
,QIORZ W
W
WLPH
W /HYHORULJLQDOO\
2IIVHW
DWVHWSRLQW
1HZOHYHO /HYHO
W
W
EHORZVHWSRLQW
WLPH
)LJXUH 3URSRUWLRQDO5HVSRQVHZLWKDORZHU3URSRUWLRQDO%DQG
&RQVLGHUQRZWKHVDPHGHPDQGGLVWXUEDQFHEXWZLWKWKHFRQWUROVLJQDO LQFUHDVHGLQUHODWLYHPDJQLWXGHZLWKUHVSHFWWRWKHHUURUVLJQDOLH
5HYLVLRQ±-DQXDU\
6FLHQFH DQG 5HDFWRU )XQGDPHQWDOV ± ,QVWUXPHQWDWLRQ &RQWURO &16&7HFKQLFDO7UDLQLQJ*URXS
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
JDLQ
'RXWSXW 'LQSXW
%\LQVSHFWLRQLWFDQEHVHHQWKDWD3%RILVWKHVDPHDVDJDLQRI RQHVLQFHFKDQJHRILQSXWHTXDOVFKDQJHLQRXWSXW3%LVWKHUHFLSURFDO RIJDLQH[SUHVVHGDVDSHUFHQWDJH7KHJHQHUDOUHODWLRQVKLSLV
JDLQ
3%
([DPSOH :KDWLVWKHJDLQRIDFRQWUROOHUZLWKD3%RI" D E $QVZHU D
JDLQ
E
JDLQ
3%
3%
5HYLVLRQ±-DQXDU\
1RWH
6FLHQFH DQG 5HDFWRU )XQGDPHQWDOV ± ,QVWUXPHQWDWLRQ &RQWURO &16&7HFKQLFDO7UDLQLQJ*URXS
:KDWZLOOWKH3%VHWWLQJLQSHUFHQWIRUDFRQWUROOHUZLWKJDLQRI" D
E
$QVZHU D 3% JDLQ E 3%
JDLQ
1RWH
6PDOOYDOXHVRI3%KLJKJDLQDUHXVXDOO\UHIHUUHGWRDVQDUURZ SURSRUWLRQDOEDQGZKLOVWORZJDLQLVWHUPHGZLGHSURSRUWLRQDOEDQG 1RWHWKHUHLVQRPDJLFILJXUHWRGHILQHQDUURZRUZLGHSURSRUWLRQDO EDQGUHODWLYHYDOXHVRQO\DUHDSSOLFDEOHIRUH[DPSOH3%LVZLGHU WKDQ3%3%LVQDUURZHUWKDQ3% :HKDYHVHHQIURPWKHWZRHDUOLHUH[DPSOHVWKDWLQFUHDVLQJWKHJDLQ QDUURZLQJWKH3%FDXVHGWKHRIIVHWWREHGHFUHDVHG&DQWKLVSURFHGXUH EHXVHGWRUHGXFHWKHRIIVHWWR]HUR"
H J Q D K & G D R /
63 H V Q R S V H 5 P H W V \ 6
6WHS'LVWXUEDQFH
WLPH
:LGH3% 2IIVHW
63
0RGHUDWH3% 2IIVHW
63
1DUURZ3%
WLPH
5HVSRQVH9HUVXV3%3URSRUWLRQDO&RQWURO LRQDO&RQWURO2QO\ 2QO\ )LJXUH5HVSRQVH9HUVXV3%3URSRUW
5HYLVLRQ±-DQXDU\
6FLHQFH DQG 5HDFWRU )XQGDPHQWDOV ± ,QVWUXPHQWDWLRQ &RQWURO &16&7HFKQLFDO7UDLQLQJ*URXS
1RWH H V Q R S V H 5 P H W V \ 6
$ $ $
WLPH
)LJXUH ó'HFD\5HVSRQVH&XUYH
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±ZHKDYHUHYHUWHGWR DQRQRIIFRQWUROVLWXDWLRQZLWKDOOWKHGLVDGYDQWDJHVSUHYLRXVO\ PHQWLRQHG2EYLRXVO\WKHUHPXVWEHVRPHRSWLPXPVHWWLQJRI3%ZKLFK LVDWUDGHRIIEHWZHHQWKHKLJKO\VWDEOHEXWVOXJJLVKORZJDLQV\VWHP ZLWKODUJHRIIVHWDQGWKHIDVWDFWLQJXQVWDEOHRQRIIV\VWHPZLWKPHDQ RIIVHWHTXDOWR]HUR7KHDFFHSWHGRSWLPXPVHWWLQJLVRQHWKDWFDXVHVWKH SURFHVVWRGHFD\LQDóGHFD\PHWKRGDVV KRZQLQERWK)LJXUHVDQG 7KHTXDUWHUGHFD\FXUYHVVKRZWKDWWKHSURFHVVUHWXUQVWRDVWHDG\VWDWH FRQGLWLRQDIWHUWKUHHF\FOHVRIGDPSHGRVFLOODWLRQ7KLVRSWLPL]DWLRQZLOO EHGLVFXVVHGPRUHIXOO\LQWKHVHFWLRQRQFRQWUROOHUWXQLQJ 5HFDOOWKHRXWSXWRIDSURSRUWLRQDOFRQWUROOHULVHTXDOWR PNH ZKHUHPFRQWUROVLJQDO N FRQWUROOHU JDLQ 3% H HUURU VLJQDO 63 ± 0 &OHDUO\LIWKHHUURULV]HURWKHFRQWUROVLJQDOZLOOEH]HURWKLVLVDQ XQGHVLUDEOHVLWXDWLRQ7KHUHIRUHIRUSURSRUWLRQDOFRQWURODFRQVWDQWWHUP RUELDVPXVWEHDGGHGWRSURYLGHDVWHDG\VWDWHFRQWUROVLJQDOZKHQWKH HUURULV]HUR
5HYLVLRQ±-DQXDU\
6FLHQFH DQG 5HDFWRU )XQGDPHQWDOV ± ,QVWUXPHQWDWLRQ &RQWURO &16&7HFKQLFDO7UDLQLQJ*URXS
)RUWKHSXUSRVHVRIWKLVFRXUVHZHZLOODVVXPHWKHVWHDG\VWDWHRXWSXWRI DSURSRUWLRQDOFRQWUROOHUZKHQDWWKHVHWSRLQWWREH7KHHTXDWLRQ IRUSURSRUWLRQDOFRQWUROEHFRPHV P NH E ZKHUHEELDVDGGHGWRRXWSXWVLJQDO
&DOFXODWLRQRI2IIVHW
([DPSOH $QDLUWRRSHQYDOYHRQWKHLQIORZFRQWUROVOHYHOLQDWDQN:KHQWKH SURFHVVLVDWWKHVHWSRLQWWKHYDOYHRSHQLQJLV$QLQFUHDVHLQ RXWIORZUHVXOWVLQWKHYDOYHRSHQLQJLQFUHDVLQJWRDQHZVWHDG\VWDWH YDOXHRI:KDWLVWKHUHVXOWLQJRIIVHWLIWKHFRQWUROOHU3%LV D E
$QVZHU 7RDFKLHYHFRUUHFWFRQWUROWKHFRQWUROOHUZLOOEHUHYHUVHnpDFWLQJ D
3% ?JDLQ &KDQJ DQJH LQYDO YDOYH YH SRVLW VLWLRQ ± ± 7KLV 7KLVL LV VWK WKH HRX RXWS WSXW XWF FKD KDQJ QJH HIU IURP RPW WKH KHF FRQ RQWU WURO ROOH OHU U
'RXWSXW 'LQSXW
JDLQ
'LQSXW ? 'LQSXW 6LQFHFRQWUROOHULVUHYHUVHDFWLQJ'PHDVXUHGYDULDEOHPXVWKDYHEHHQ QHJDWLYHLH7KLVLVHTXDOWRDHUURURUD±RIIVHW?RIIVHW EHORZVHWSRLQW E 3%JDLQ ?LQSXW RIIVHWEHORZVHWSRLQW 1RWHWKDWWKHQDUURZHU3%LVOLNHO\WRLQWURGXFHVRPHGHJUHHRI RVFLOODWLRQLQWRWKHV\VWHP+RSHIXOO\WKLVZLOOEHDGDPSHGRVFLOODWLRQ
5HYLVLRQ±-DQXDU\
1RWH
6FLHQFH DQG 5HDFWRU )XQGDPHQWDOV ± ,QVWUXPHQWDWLRQ &RQWURO &16&7HFKQLFDO7UDLQLQJ*URXS
6X 6XPP PPDU DU\ \
x 7KHFRQWUROOHUDFWLRQPXVWEHFKRVHQHLWKHUGLUHFWnnRUUHYHUVH npWRDFKLHYHWKHFRUUHFWFRQWUROUHVSRQVH x 3URSRUWLRQDO%DQG
JDLQ
RU JDLQ
3%
x 7KHRSWLPXPVHWWLQJVIRU3%VKRXOGUHVXOWLQWKHSURFHVV GHFD\LQJLQDóGHFD\PRGH
5HYLVLRQ±-DQXDU\
1RWH
6FLHQFH DQG 5HDFWRU )XQGDPHQWDOV ± ,QVWUXPHQWDWLRQ &RQWURO &16&7HFKQLFDO7UDLQLQJ*URXS
5HVHWRI 5HVHWRI,QWH ,QWHJUDO JUDO$FWL $FWLRQ RQ
1RWH
0RVWRIWKHSURFHVVHVZHZLOOEHFRQWUROOLQJZLOOKDYHDFOHDUO\GHILQHG VHWSRLQW,IZHZLVKWRUHVWRUHWKHSURFHVVWRWKHVHWSRLQWDIWHUD GLVWXUEDQFHWKHQSURSRUWLRQDODFWLRQDORQHZLOOEHLQVXIILFLHQW &RQVLGHUDJDLQWKHGLDJUDP)LJXUHVKRZLQJWKHUHVSRQVHRID V\VWHPXQGHUSURSRUWLRQDOFRQWURO
H V Q R S V H 5 P H W V \ 6
6WHS'LVWXUEDQFH
WLPH
$GGLWLRQDO&RQWURO6LJQDO5HVWRUHV3URFHVVW HVWRUHV3URFHVVWR6HWSRLQW R6HWSRLQW )LJXUH$GGLWLRQDO&RQWURO6LJQDO5
63 2IIVHW
5HVSRQVH&XUYH3URSRUWLRQDO&RQWURO2QO\ RQWURO2QO\ )LJXUH5HVSRQVH&XUYH3URSRUWLRQDO&
,IZHZLVKWRUHVWRUHWKHSURFHVVWRWKHVHWSRLQWZHPXVWLQFUHDVHWKH LQIORZRYHUDQGDERYHWKDWUHTXLUHGWRUHVWRUHDPDVVEDODQFH7KH DGGLWLRQDOLQIORZPXVWUHSODFHWKHORVWYROXPHDQGWKHQUHYHUWWRDPDVV EDODQFHVLWXDWLRQWRPDLQWDLQWKHOHYHODWWKHVHWSRLQW7KLVLVVKRZQLQ )LJXUH7KLVDGGLWLRQDOFRQWUROVLJQDOPXVWEHSUHVHQWXQWLOWKHHUURU VLJQDOLVRQFHDJDLQ]HUR ,QLWLDOPDVVEDODQFH
)LQDOPDVVEDODQFH
2XWIORZ 5HVHW$FWLRQ ,QIORZ 6HWSRLQW 2IIVHW 5HPRYHG
WLPH
)LJXUH $GGLWLRQDO&RQWURO6LJQDO5HVWRUHV3URFHVVWR6HWSRLQW
5HYLVLRQ±-DQXDU\
6FLHQFH DQG 5HDFWRU )XQGDPHQWDOV ± ,QVWUXPHQWDWLRQ &RQWURO &16&7HFKQLFDO7UDLQLQJ*URXS
7KLVDGGLWLRQDOFRQWUROVLJQDOLVNQRZQDV5HVHWDFWLRQLWUHVHWVWKH SURFHVVWRWKHVHWSRLQW5HVHWDFWLRQLVDOZD\VXVHGLQFRQMXQFWLRQZLWK SURSRUWLRQDODFWLRQ0DWKHPDWLFDOO\UHVHWDFWLRQLVWKHLQWHJUDWLRQRIWKH HUURUVLJQDOWR]HURKHQFHWKHDOWHUQDWLYHQRPHQFODWXUH±,QWHJUDODFWLRQ 7KHFRPELQDWLRQRISURSRUWLRQDOSOXVUHVHWDFWLRQLVXVXDOO\UHIHUUHGWR DV3,FRQWURO 7KHUHVSRQVHRI3,FRQWUROLVEHVWFRQVLGHUHGLQRSHQORRSIRUPLHWKH ORRSLVRSHQHGMXVWEHIRUHWKHILQDOFRQWUROHOHPHQWVRWKDWWKHFRQWURO FRUUHFWLRQLVQRWLQIDFWPDGH7KLVLVLOOXVWUDWHGLQ)LJXUH
HUURU H O D Q J L 6 O R U W Q R &
H W W 5 H V V H O D H 5 1 R U P V W W ) D 6OR Z 5HVH
`
NH 3URSRUWLRQDO 5HVSRQVH
WLPH
)LJXUH 3URSRUWLRQDO3OXV5HVHW2SHQ/RRS5HVSRQVH
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
035
5HYLVLRQ±-DQXDU\
530
1RWH
6FLHQFH DQG 5HDFWRU )XQGDPHQWDOV ± ,QVWUXPHQWDWLRQ &RQWURO &16&7HFKQLFDO7UDLQLQJ*URXS
([DPSOH $GLUHFWDFWLQJFRQWUROOHUKDVDSURSRUWLRQDOEDQGRILDVXEMHFWHGWR DVXVWDLQHGHUURU7KHVHWSRLQWLVDPGWKHPHDVXUHPHQW$IWHU PLQXWHVWKHWRWDORXWSXWVLJQDOIURPWKHFRQWUROOHUKDVLQFUHDVHGE\ :KDWLVWKHUHVHWUDWHVHWWLQJLQ530DQG035" $QVZHU 3%
JDLQ
6LQFHnnNZLOOEHQHJDWLYH 3URSRUWLRQDO 3URSRUWLRQDO6LJQDO 6LJQDO [HUURU [HUURU [ [ 7RWDO 7RWDOVLJ VLJQDO QDODI DIWHU WHU PLQ PLQXWH XWHV V 3,
?,QWHJUDO6LJQDO LHLQWHJUDODFWLRQKDVUHSHDWHGRULJLQDOSURSRUWLRQDOVLJQDOWZLFHLQ PLQXWHVUHSHDWVSHUPLQXWHVRUUHSHDWVSHUPLQXWH 035 5HVHW UDWH 530 RU 035 :HKDYHDOUHDG\PHQWLRQHGWKDWWKHRSWLPXPVHWWLQJIRUSURSRUWLRQDO FRQWUROLVRQHZKLFKSURGXFHVDó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
5HYLVLRQ±-DQXDU\
1RWH
6FLHQFH DQG 5HDFWRU )XQGDPHQWDOV ± ,QVWUXPHQWDWLRQ &RQWURO &16&7HFKQLFDO7UDLQLQJ*URXS
7KLVSURFHVVZLOOFRQWLQXHLQGHILQLWHO\WKHFRQWUROYDOYHF\FOLQJZLWK UHVXOWLQJZHDUDQGWHDUIURPRQHH[WUHPHWRWKHRWKHU7KHDFWXDO SURFHVVOHYHOZLOOF\FOHDERXWWKHVHWSRLQW7KLVF\FOLQJLVNQRZQDV UHVHWZLQGXSDQGZLOORFFXULIWKHSURFHVVLVVXEMHFWWRDVXVWDLQHGHUURU DQGDWRRIDVWUHVHWUDWH7KHUHVHWUDWHPXVWEHGHFUHDVHGUHVHWWLPH LQFUHDVHG 7KHPDWKHPDWLFDOH[SUHVVLRQIRU3,FRQWUROEHFRPHV
§ ©
P N ¨ H P P
75
³
· ¹
HGW ¸ E
FR FRQW QWUR URO OVL VLJQ JQDO DO
H
HUURU VLJQDO
H 63 ± 0 ?RU
N
FRQWUROOHU JDLQ
nnnp
75 75 UH UHVHW VHWW WLP LPH H03 035 5 E E
EL ELDV DVV VLJ LJQD QDO O
3URSRUWLRQDOFRQWUROLHSURSHUVLJQRIJDLQLQSXWVDODJLQWRWKH V\VWHPWKHFRUUHFWLRQPXVWEHRSSRVLWHWRWKHHUURU5HVHWDFWLRQ LQWURGXFHVDIXUWKHUODJ7KLVIDFWPXVWEHWDNHQLQWRDFFRXQWZKHQ WXQLQJWKHFRQWUROOHU,WIROORZVSURSRUWLRQDODFWLRQ7KHWRWDOODJPXVW EHLQFUHDVHGDQGLVQRZFORVHUWRODJPHDQV WKHIHHGEDFN VLJQDOLVQRZLQSKDVHZLWKWKHLQSXWDQGDGGLQJWRLW±WKHV\VWHPLV QRZXQVWDEOH5HVHWDFWLRQFDXVHVWKHORRSWREHOHVVVWDEOH 6X 6XPP PPDU DU\ \
x 5HVHWDFWLRQUHPRYHVRIIVHW x ,W¶VXQLWVDUH5HSHDWVSHU0LQXWH530RU0LQXWHVSHU5HSHDW 035
x ,IUHVHWDFWLRQLVIDVWHUWKDQWKHSURFHVVFDQUHVSRQG5HVHW :LQGXSFDQRFFXU
x 5HVHW$FWLRQPDNHVDFRQWUROORRSOHVVVWDEOH
5HYLVLRQ±-DQXDU\
1RWH
6FLHQFH DQG 5HDFWRU )XQGDPHQWDOV ± ,QVWUXPHQWDWLRQ &RQWURO &16&7HFKQLFDO7UDLQLQJ*URXS
x 'RQRWVXEMHFWSURFHVVORRSVZLWKUHVHWFRQWUROWRVXVWDLQHG HUURUV±WKHFRQWUROVLJQDOZLOOEHUDPSHGWRWKHH[WUHPHYDOXH± UHVHWZLQGXSZLOORFFXU
5$7( 5$7(25 25'( '(5,9 5,9$7 $7,9( ,9($& $&7, 7,21 21
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±WKHV\VWHP LVVRPHZKDWPRUHVWDEOH
W X S Q ,
'HULYDWLYHFHDVHVDV HUURUVWRSVFKDQJLQJ
3URSRUWLRQDO W $FWLRQ X
S W X 2
'HULYDWLYH
WLPH )LJXUH 3URSRUWLRQDODQG'HULYDWLYH²2SHQ/RRS5HVSRQVH
5HYLVLRQ±-DQXDU\
1RWH
6FLHQFH DQG 5HDFWRU )XQGDPHQWDOV ± ,QVWUXPHQWDWLRQ &RQWURO &16&7HFKQLFDO7UDLQLQJ*URXS
1RWH
5HYLVLRQ±-DQXDU\
6FLHQFH DQG 5HDFWRU )XQGDPHQWDOV ± ,QVWUXPHQWDWLRQ &RQWURO &16&7HFKQLFDO7UDLQLQJ*URXS
0DWKHPDWLFDOO\SURSRUWLRQDOSOXVGHULYDWLYH3'FRQWUROLVH[SUHVVHG DV
§ ©
P N ¨ H 7 ' P P N N 7' H E E
GH ·
¸E
GW ¹
FR FRQW QWUR UROO OOHU HUVL VLJQD JQDO O FR FRQW QWUR UROO OOHU HUJ JDL DLQ Q GHU GHULY LYDW DWLY LYHW HWLP LPH H HUURU EL ELDV DVV VLJ LJQD QDO O
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
B OOO
$&
)7
)& )LJXUH 6LPSOH)ORZ&RQWURO6\VWHP
5HYLVLRQ±-DQXDU\
1RWH
6FLHQFH DQG 5HDFWRU )XQGDPHQWDOV ± ,QVWUXPHQWDWLRQ &RQWURO &16&7HFKQLFDO7UDLQLQJ*URXS
7RDQVZHUWKLVTXHVWLRQOHWXVFRQVLGHUWKH3'UHVSRQVHWRDIDVWFKDQJH LQSURFHVVVLJQDOLQDQRSHQORRSV\VWHP)LJXUH
V V H F R U 3
&RQWURO 6LJQDO
% $
&
W
W W
WLPH
3URSRUWLRQDODFWLRQ $% 5DWHDFWLRQGXHWRFHVVDWLRQRILQFUHDVHLQH 5DWH 5DWHDFWLRQ DFWLRQ %& $% &RQWUROVLJQDODWHQGRIH[FXUVLRQ 5DWHDFWLRQGXHWRFHVVDWLRQRILQFUHDVHLQH
3URSRUWLRQDO DFWLRQ%& W
W W
WLPH
7KHRSHQ/RRS5HVSRQVHRI3URSRUWLRQDO3OXV'HULYDW QDO3OXV'HULYDWLYH3' LYH3' )LJXUH7KHRSHQ/RRS5HVSRQVHRI3URSRUWLR $FWLRQWR5DSLGO\&KDQJLQJ(UURU6LJQDOV
7KHXSSHUSRUWLRQRI)LJXUHVKRZVDSRVLWLYHSURFHVVH[FXUVLRQ$% IURPWKH]HURHUURUFRQGLWLRQIROORZHGE\DQHTXDOQHJDWLYHH[FXUVLRQ %&ZKLFKUHWXUQVWKHHUURUWR]HUR1RWHWKDWWKHUDWHRIFKDQJHLHWKH VORSHRIWKHSURFHVVFKDQJHIURP%WR&LVWZLFHWKHUDWHRIFKDQJHRI WKHSURFHVVIURP$WR%0DWKHPDWLFDOO\
GH GW
% &
GH GW
$ %
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
5HYLVLRQ±-DQXDU\
1RWH
6FLHQFH DQG 5HDFWRU )XQGDPHQWDOV ± ,QVWUXPHQWDWLRQ &RQWURO &16&7HFKQLFDO7UDLQLQJ*URXS
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
5HYLVLRQ±-DQXDU\
1RWH
6FLHQFH DQG 5HDFWRU )XQGDPHQWDOV ± ,QVWUXPHQWDWLRQ &RQWURO &16&7HFKQLFDO7UDLQLQJ*URXS
&RQWURO6LJQDO
1RWH /RDG 'LVWXUEDQFH $SSOLHG 3URS'HULYDWLYH 3URS2QO\
WLPH
6HWSRLQW
/HYHO
)LJXUH /DUJH6\VWHP8QGHU3URSRUWLRQDODQG3URSRUWLRQDO3OXV'HULYDWLYH &RQWURO 6X 6XPP PPDU DU\ \
x 'HULYDWLYHRUUDWHDFWLRQLVDQWLFLSDWRU\DQGZLOOXVXDOO\UHGXFH EXWQRWHOLPLQDWHRIIVHW
x ,WVXQLWVDUHPLQXWHVDGYDQFHRISURSRUWLRQDODFWLRQ x ,WWHQGVWRUHGXFHODJLQDFRQWUROORRS x ,WVXVHLVJHQHUDOO\OLPLWHGWRVORZDFWLQJSURFHVVHV
5HYLVLRQ±-DQXDU\
6FLHQFH DQG 5HDFWRU )XQGDPHQWDOV ± ,QVWUXPHQWDWLRQ &RQWURO &16&7HFKQLFDO7UDLQLQJ*URXS
08/7,3/ 08/7,3/(&21 (&21752/ 752/02'( 02'(6 6
:HKDYHDOUHDG\GLVFXVVHGVRPHRIWKHSRVVLEOHFRPELQDWLRQVRIFRQWURO PRGHV7KHVHDUH 3URSRUWLRQDORQO\ 3URSRUWLRQDOSOXVUHVHWLQWHJUDO3, 3URSRUWLRQDOSOXVGHULYDWLYHUDWH3' ,WLVDOVRSRVVLEOHWRXVHDFRPELQDWLRQRIDOOWKUHHFRQWUROPRGHV 3URSRUWLRQDOSOXV,QWHJUDOSOXV'HULYDWLYH3,' $WDJODQFHSURSRUWLRQDORQO\GRHVQRWDSSHDUYHU\DWWUDFWLYH±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
5HYLVLRQ±-DQXDU\
1RWH
6FLHQFH DQG 5HDFWRU )XQGDPHQWDOV ± ,QVWUXPHQWDWLRQ &RQWURO &16&7HFKQLFDO7UDLQLQJ*URXS
7<3,&$ 7<3,&$/1 /1(* (*$7, $7,9( 9()( )((' ('%$& %$&.& .&217 21752/ 52/6& 6&+(0 +(0(6 (6
/H /HYH YHO O&R &RQW QWUR URO O
,QJHQHUDOZHFDQGLYLGHOHYHOPHDVXUHPHQWLQWRWKUHHW\SHV 2SHQ7DQNV &ORVHG7DQNV %XEEOHU6\VWHPV2SHQRU&ORVHG7DQNV
,IDGLIIHUHQWLDOSUHVVXUHWUDQVPLWWHULVXVHGDVDOHYHOGHWHFWRUWKHORZ SUHVVXUHSRUWZLOOEHYHQWHGWRDWPRVSKHUHLQDQRSHQWDQNDSSOLFDWLRQ,QD FORVHGWDQNZKHUHWKHUHLVRIWHQDJDVSKDVHDWSUHVVXUHDERYHWKHOLTXLGWKH ORZSUHVVXUHSRUWZLOOEHWDNHQWRWKHWRSRIWKHWDQN$Q\JDVSUHVVXUHZLOO WKHQEHHTXDOO\VHQVHGE\WKHKLJKDQGORZVLGHVDQGWKXVFDQFHOOHG 5HPHPEHUWKHFORVHGWDQNLQVWDOODWLRQZLOOKDYHHLWKHUDZHWRUGU\OHJRQ WKHORZSUHVVXUHVLGHV 2SHQ7DQN,QVWDOODWLRQ
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
5HYLVLRQ±-DQXDU\
1RWH
6FLHQFH DQG 5HDFWRU )XQGDPHQWDOV ± ,QVWUXPHQWDWLRQ &RQWURO &16&7HFKQLFDO7UDLQLQJ*URXS
1RWH
$2
/,&
/7
O OO
4L
4R
O OO
63 )LJXUH 2SHQ7DQN/HYHO&RQWURO )ORZ& )ORZ&RQ RQWUR WURO O
$W\SLFDOIORZFRQWUROV\VWHPUHTXLUHVVRPHIRUPRIUHVWULFWLRQWRSURYLGHD SUHVVXUHGLIIHUHQWLDOSURSRUWLRQDOWRIORZHJRULILFHSODWHSOXVDVTXDUH URRWH[WUDFWRUWRSURYLGHDOLQHDUVLJQDO7KHFRQWUROOHUDFWLRQGHSHQGVXSRQ WKHFKRLFHRIFRQWUROYDOYH,IDQDLUWRRSHQYDOYHLVFKRVHQWKHQFRQWUROOHU DFWLRQVKRXOGEHUHYHUVHDVDQLQFUHDVHLQIORZPXVWEHFRXQWHUHGE\D GHFUHDVHLQYDOYHRSHQLQJ)RUDQDLUWRFORVHYDOYHWKHDFWLRQPXVWRI FRXUVHEHGLUHFW7KHJHQHUDOIRUPDWLVVKRZQLQ)LJXUH
B O O
$2
)7
),& 63 )LJXUH 7\SLFDO)ORZ&RQWURO
5HYLVLRQ±-DQXDU\
6FLHQFH DQG 5HDFWRU )XQGDPHQWDOV ± ,QVWUXPHQWDWLRQ &RQWURO &16&7HFKQLFDO7UDLQLQJ*URXS
7KHFRQWUROPRGHVZLOOEHSURSRUWLRQDOSOXVLQWHJUDOQHYHUXVHGHULYDWLYH RQDIORZFRQWUROORRS 3UHV 3UHVVXU VXUH& H&RQ RQWUR WURO O
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
63 3,&
)HHG
37
3UHVVXUH9HVVHO $&
)LJXUH 3UHVVXUH&RQWURO±&RQVWDQW%OHHG
5HYLVLRQ±-DQXDU\
3UHVVXUH %OHHG
1RWH
6FLHQFH DQG 5HDFWRU )XQGDPHQWDOV ± ,QVWUXPHQWDWLRQ &RQWURO &16&7HFKQLFDO7UDLQLQJ*URXS
)RUYDULDEOHIHHGDQGEOHHGZHFDQXVHDVSOLWUDQJHFRQWUROVFKHPHRQH FRQWUROOHUGULYLQJWZRYDOYHV7KLVLVVKRZQLQ)LJXUH:KHQDWWKH VHWSRLQWZHUHTXLUHIHHGWRHTXDOEOHHG,ISUHVVXUHLQFUHDVHVZHUHTXLUHOHVV IHHGDFWLRQDQGPRUHEOHHGDFWLRQDQGYLFHYHUVD7KHYDOYHDFWLRQVPXVW WKHUHIRUHEHRSSRVLWHVD\IHHGYDOYH$&DQGEOHHGYDOYH$22Q LQFUHDVLQJSUHVVXUHWKHGLUHFWDFWLQJFRQWUROOHUZLOOVXSSO\DODUJHUVLJQDOWR WKHIHHGYDOYHFORVLQJLWDQGWRWKHEOHHGYDOYHRSHQLQJLW3UHVVXUH VKRXOGWKXVEHPDLQWDLQHGDWWKHVHWSRLQWZLWKSURSRUWLRQDOSOXVLQWHJUDO FRQWURO 63 3,&
37
$2 )HHG
3UHVVXUH9HVVHO
%OHHG
$&
)LJXUH 6SOLW5DQJHG)HHGDQG%OHHG3UHVVXUH&RQWURO 7HPSHUDW 7HPSHUDWXUH XUH&RQW &RQWURO URO
7KHJHQHUDOSUREOHPZLWKWHPSHUDWXUHFRQWUROLVWKHVORZQHVVRIUHVSRQVH )RUWKLVUHDVRQWKHXVHRIGHULYDWLYHDFWLRQLVIDLUO\VWDQGDUG)LJXUH VKRZVDUHSUHVHQWDWLYHKHDWH[FKDQJHUZKLFKFRROVKRWEOHHGZLWKFROG VHUYLFHZDWHU 7KHFKRLFHRIFRQWUROYDOYHZRXOGSUREDEO\EHDLUWRFORVHLHIDLORSHQWR JLYHPD[LPXPFRROLQJLQWKHHYHQWRIDDLUVXSSO\IDLOXUHWRWKHYDOYH
5HYLVLRQ±-DQXDU\
1RWH
6FLHQFH DQG 5HDFWRU )XQGDPHQWDOV ± ,QVWUXPHQWDWLRQ &RQWURO &16&7HFKQLFDO7UDLQLQJ*URXS
+RW%OHHG
1RWH &ROG $&
77
&RROHG%OHHG
7& 63
)LJXUH 7HPSHUDWXUH&RQWURORID+HDW([FKDQJHU
$QLQFUHDVHVD\LQEOHHGWHPSHUDWXUHUHTXLUHVDODUJHUYDOYHRSHQLQJLH VPDOOHUYDOYHVLJQDO$UHYHUVHDFWLQJFRQWUROOHULVUHTXLUHG7KUHHPRGH3 ,'FRQWUROLVIDLUO\XVXDO
5HYLVLRQ±-DQXDU\
6FLHQFH DQG 5HDFWRU )XQGDPHQWDOV ± ,QVWUXPHQWDWLRQ &RQWURO &16&7HFKQLFDO7UDLQLQJ*URXS
5(9,(:48(67,216&21752/
&RQVLGH &RQVLGHUD UDV\V V\VWHP WHPIR IRUK UKHDW HDWLQJ LQJDU DURRP RRPZLW ZLWKH KHOHFW OHFWULF ULFKH KHDWH DWHUV UVZK ZKDW DWDUH DUH WKHFRQWUROOHGDQGPDQLSXODWHGYDULDEOHV
6NHW 6NHWFK FKDQG DQGO ODE DEHO HOD DEO EORF RFN NGL GLDJU DJUDP DPR RI IVL VLPS PSOH OHS SUR URFH FHVV VVXQG XQGHU HUQ QHJD HJDWL WLYH YH IHHGEDFNFRQWURO0DUNVHWSRLQWPHDVXUHPHQWHUURURXWSXW GLVWXUEDQFHV
6WDWH 6WDWHWKH WKHWK WKUHH UHHLP LPSRU SRUWDQ WDQWF WFKDU KDUDFW DFWHUL HULVWL VWLFVR FVRIQ IQHJD HJDWLY WLYHI HIHHGE HHGEDFN DFNFRQ FRQWUR WURO O
6WDW 6WDWH HWK WKH HGL GLII IIHU HUHQF HQFHV HVEH EHWZ WZHH HHQI QIHHG HHGED EDFN FNDQ DQGI GIHHG HHGIR IRUZ UZDU DUG GFR FRQW QWUR URO O
,VG ,VGUL ULYL YLQJ QJD DFDU FDU LQ LQD DUH UHDVR DVRQDE QDEO\ O\Q QRU RUPD PDO OPD PDQQ QQHU HU DQ DQH[ H[DP DPSO SOH HRI RI IHHGEDFNRUIHHGIRUZDUGFRQWURO"([SODLQ
([SO ([SODL DLQ QWK WKH HRSH RSHUD UDWL WLRQ RQRI RID DSU SURF RFHVV HVVX XQG QGHU HUQ QHJD HJDWL WLYH YHIH IHHG HGEDF EDFN NRQ RQRI RII I FRQWURO
:K\ :K\ZL ZLOO OOR RQ QRI RII IFR FRQW QWUR URO OFD FDXVH XVHF\ F\FO FOLQ LQJD JDER ERXW XWW WKH KHGH GHVL VLUH UHG GVHW VHWSR SRLQ LQW" W"
:K\ :K\LV LVRQ RQR RII IIF FRQ RQWU WURO ROI IUH UHTX TXHQW HQWO\ O\XV XVHG HGL LQU QURRP RRPK KHDW HDWLQ LQJ JDSS DSSOL OLFDW FDWLR LRQV" QV"
,ILQ ,ILQILJ ILJXUH XUH ZH ZHOR ORFDW FDWHGR HGRXU XUFRQW FRQWUR UROY OYDOY DOYHLQ HLQWK WKHR HRXWI XWIORZ ORZOL OLQH QHZKD ZKDW W ZRXOGEHWKHUHTXLUHGYDOYHDFWLRQIRUQHJDWLYHIHHGEDFN SURSRUWLRQDOFRQWURO"
([SODL ([SODLQW QWKH KHUHO UHODWL DWLRQVK RQVKLS LSEHW EHWZHH ZHHQHU QHUURU URUDQG DQGFRQ FRQWUR WUROOH OOHUR URXWS XWSXW XWLQ LQD D SURSRUWLRQDOFRQWUROOHU
:K\ :K\GR GRHV HVRI RIIV IVHW HWR RFFX FFXU UZL ZLWK WKS SUR URSR SRUW UWLR LRQDO QDOFR FRQW QWUR URO" O"
$FRQW $FRQWURO UROVF VFKHP KHPHFR HFRQVL QVLVWV VWVRI RIDQ DQRSHQ RSHQWD WDQNZ QNZLWK LWKDQ DQDLU DLUWR WRFO FORVH RVHYDO YDOYH YH RQWKHRXWIORZ6NHWFKDVLPSOHVFKHPDWLFGLDJUDPVKRZLQJWKH FRQWUROOHUDFWLRQ:KDWZRXOGKDSSHQWRWKHFRQWURORIWKHV\VWHPLI WKHYDOYHZDVFKDQJHGWRDLUWRRSHQEXWWKHFRQWUROOHUDFWLRQZDV XQFKDQJHG"
:K\FD :K\FDQRI QRIIVH IVHWQ WQRW RWEHU EHUHPRY HPRYHG HGE\Q E\QDUU DUURZL RZLQJ QJWKH WKHSU SURSRU RSRUWLR WLRQDO QDOEDQ EDQG" G"
:KDWJ :KDWJDLQ DLQLV LVUH UHSUH SUHVHQW VHQWHG HGE\ E\D3U D3URSRU RSRUWLR WLRQDO QDO%D %DQGR QGRI I "
$GLVW $GLVWXUE XUEDQF DQFHFD HFDXVHV XVHVDS DSURF URFHVV HVVWR WRFKDQ FKDQJHE JHE\ \: :KDW KDWZL ZLOO OOEH EHWKH WKH FKDQJHLQFRQWUROOHURXWSXWLIWKH3%LV"
5HYLVLRQ±-DQXDU\
1RWH
6FLHQFH DQG 5HDFWRU )XQGDPHQWDOV ± ,QVWUXPHQWDWLRQ &RQWURO &16&7HFKQLFDO7UDLQLQJ*URXS
$WDQN $WDQNLV LVFRQ FRQWUR WUROOH OOHGE GE\DQ \DQDL DLUW UWRF RFORV ORVHYD HYDOYH OYHRQ RQLWV LWVLQ LQIOR IORZ Z:KH :KHQD QDW W WKHVHWSRLQWWKHYDOYHRSHQLQJLVDQRXWIORZGLVWXUEDQFHFDXVHV WKHYDOYHRSHQLQJWREHFRPH7KHFRQWUROOHU¶V3%VHWWLQJLV :KDWLVWKHRIIVHW"$VVXPHDOLQHDUYDOYHFKDUDFWHULVWLF 5HPHPEHUDQDLUWRFORVHYDOYHUHTXLUHVDGHFUHDVHLQVLJQDOWRRSHQ LWIXUWKHU
6NHWFKD 6NHWFKDQGG QGGHVFU HVFULEH LEHWK WKHFX HFXUYH UYHZK ZKLFK LFKZR ZRXOG XOGL LQP QPDQ\ DQ\SUR SURFHVV FHVVHV HVEH EH WKHRSWLPXPSURFHVVUHVSRQVHIROORZLQJDGLVWXUEDQFH
:KDW :KDWL LVW VWKH KHSX SXUS USRVH RVHR RI IUH UHVH VHW WDFW DFWLR LRQ" Q"
:KDW :KDWD DUH UHW WKH KHXQ XQLW LWVI VIRU RUU UHVH HVHW WDF DFWL WLRQ RQ" "
:KDW KDWLV LVUUHVHW HVHWZ ZLLQGXS QGXS" "
'RHVU 'RHVUHVHW HVHWDFW DFWLRQ LRQPD PDNHW NHWKHO KHORRS RRSPR PRUH UHRU RUOHV OHVVVW VVWDEO DEOH" H"
'UDZD 'UDZDQR QRSHQ SHQORR ORRSFX SFXUYH UYHVKR VKRZLQ ZLQJW JWKHU KHUHVSR HVSRQVH QVHRI RIDSU DSURSRU RSRUWLR WLRQDO QDO SOXVUHVHWFRQWUROV\VWHPWRDVWHSGLVWXUEDQFH
$FRQW $FRQWURO UROV\V V\VWHP WHPZL ZLWK WKDG DGLUH LUHFW FWDFW DFWLRQ LRQFR FRQWU QWUROO ROOHU HULV LVRSHU RSHUDWL DWLQJ QJDWW DWWKH KH VHWSRLQW7KHFRQWUROOHUSURSRUWLRQDOEDQGLVVHWDW7KHV\VWHP LVVXEMHFWHGWRDGLVWXUEDQFHZKLFKFUHDWHVDSRVLWLYHVWHSHUURURI 7KHWRWDOFRQWURORXWSXWFKDQJHDIWHUPLQXWHVLV:KDW LVWKHUHVHWVHWWLQJLQ035"
8VLQJW 8VLQJWKHV KHVDPH DPHFRQ FRQWUR WUROV\ OV\VWH VWHPD PDQG QGFRQW FRQWURO UROVHW VHWWLQ WLQJVD JVDVL VLQ4X Q4XHVW HVWLRQ LRQ ZKDWZRXOGEHWKHHIIHFWRQWKHV\VWHPLILWKDGEHHQVXEMHFWHGWR DGLVWXUEDQFHZKLFKFDXVHGDVWHSHUURURIIRUDSHULRGRI PLQXWHV"
:KDW :KDWL LVW VWKH KHSX SXUS USRV RVHR HRI IUD UDWH WHFR FRQW QWUR URO" O"
:KDW :KDWDU DUHW HWKH KHXQ XQLW LWVR VRI IUD UDWH WHF FRQW RQWUR URO" O"
:K\VKR :K\VKRXOG XOGUD UDWH WHFRQ FRQWUR WUROQ OQRW RWEH EHXVHG XVHGRQ RQDI DIDVW DVWDFW DFWLQJ LQJSU SURFHV RFHVVVX VVXFKD FKDV V IORZ"
:LOO :LOOU UDW DWH HDF DFWL WLRQ RQU UHP HPRY RYH HRI RIIV IVHW HW" "
:KDWL :KDWLVW VWKHH KHHIIH IIHFW FWRQW RQWKH KHUDW UDWHV HVLJQ LJQDO DOLI LIWKH WKHHU HUURU URUVW VWRSV RSVFKD FKDQJL QJLQJ" QJ"
:KLFKF :KLFKFRQW RQWURO UROVHW VHWWLQ WLQJJ JJLYH LYHVWK VWKHO HODUJ DUJHVW HVWUD UDWH WHVLJ VLJQDO QDO PLQ PLQXWH XWHRU RU PLQXWHV":K\"
5HYLVLRQ±-DQXDU\
1RWH
6FLHQFH DQG 5HDFWRU )XQGDPHQWDOV ± ,QVWUXPHQWDWLRQ &RQWURO &16&7HFKQLFDO7UDLQLQJ*URXS
6NHWFKD 6NHWFKDQRS QRSHQO HQORRS RRSUHV UHVSRQV SRQVHJU HJUDSK DSKIRU IRUDS DSURS URSRUW RUWLRQ LRQDO DOSOX SOXV V GHULYDWLYHFRQWUROV\VWHPVXEMHFWHGWRDUDPSHGHUURUVLJQDO
$SURS $SURSRUW RUWLRQ LRQDO DOSOX SOXVGH VGHULY ULYDWL DWLYH YHFRQW FRQWURO UROV\ V\VWHP VWHPLV LVVXE VXEMHF MHFWHG WHGWR WRD D UDPSHGHUURURISHUPLQXWHIRUPLQXWHV7KH3%VHWWLQJLV DQGWKHGHULYDWLYHVHWWLQJLVPLQXWHV7KHFRQWUROOHULV UHYHUVHDFWLQJ6NHWFKDQRSHQORRSUHVSRQVHFXUYHIRUWKHV\VWHP VKRZLQJFRQWUROVLJQDOYDOXHVDWLQWHUYDOVZLWKUHVSHFWWRWLPH
*LYHD *LYHDW\ W\SLF SLFDO DOFRQW FRQWURO UROH[D H[DPSO PSOHZ HZKHU KHUHVW HVWUDL UDLJKW JKWSU SURSRU RSRUWLR WLRQDO QDOFR FRQWU QWURO RO FDQEHXVHG
:KDWL :KDWLVWK VWKHP HPRVW RVWFRP FRPPRQ PRQO\ O\HQFR HQFRXQW XQWHUH HUHGFR GFRPEL PELQDWL QDWLRQR RQRIF IFRQW RQWURO URO PRGHVDQGZK\"
:K\LV :K\LVLW LWDGY DGYDQW DQWDJHR DJHRXVW XVWRX RXVHG VHGHUL HULYDW YDWLYH LYHDFW DFWLRQ LRQLQ LQWK WKHW HWHPS HPSHUD HUDWXU WXUH H FRQWURORIDKHDWH[FKDQJHU"
6NHWFKD 6NHWFKDOH OHYHO YHOFRQ FRQWUR WUROV OVFKHP FKHPHI HIRU RUDQ DQRSHQ RSHQWD WDQN QN7KH 7KHYDO YDOYHV YHVHOHF HOHFWHG WHGLV LV $&DQGRQWKHLQIORZOLQH6WDWHFRQWUROOHUDFWLRQDQGPRGHV
$KHDW $KHDWH[F H[FKDQJ KDQJHU HUFR FRROL ROLQJ QJKRW KRWEO EOHHG HHGZLW ZLWKFR KFROG OGVHU VHUYLF YLFHZ HZDWH DWHU ULV LV FRQWUROOHGE\DQDLUWRRSHQYDOYHRQWKHVHUYLFHZDWHUOLQH6NHWFK WKHFLUFXLWVKRZLQJFRQWUROOHUDFWLRQ:KDWFRQWUROPRGHVZRXOGEH XVHGDQGZK\"
6NHWFKD 6NHWFKDVLP VLPSOH SOHHOH HOHFWU FWURQL RQLFFR FFRQWU QWURO ROVFKH VFKHPH PHIRU IRUWK WKHFR HFRQWU QWURO RORI RIIOR IORZ Z 7KHYDOYHFKRVHQLVDLUWRFORVHDQRULILFHSODWHGHYHORSVWKH GLIIHUHQWLDOSUHVVXUH6KRZFRQWUROOHUDFWLRQDQGVWDWHWKHPRVWOLNHO\ FRQWUROPRGHV
5HYLVLRQ±-DQXDU\
1RWH