Professional Documents
Culture Documents
X
X
3RVW+XPDQ&XOLQDU\$UW
7KH)XWXUHRI
3RVW+XPDQ&XOLQDU\$UW
7RZDUGVD1HZ7KHRU\
RI,QJUHGLHQWVDQG7HFKQLTXHV
%\
3HWHU%DRIX
&$0%5,'*(6&+2/$56
38%/,6+,1*
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7RZDUGVD1HZ7KHRU\RI,QJUHGLHQWVDQG7HFKQLTXHV
E\3HWHU%DRIX
7KLVERRNILUVWSXEOLVKHG
&DPEULGJH6FKRODUV3XEOLVKLQJ
%DFN&KDSPDQ6WUHHW1HZFDVWOHXSRQ7\QH1(;;8.
%ULWLVK/LEUDU\&DWDORJXLQJLQ3XEOLFDWLRQ'DWD
$FDWDORJXHUHFRUGIRUWKLVERRNLVDYDLODEOHIURPWKH%ULWLVK/LEUDU\
&RS\ULJKWE\3HWHU%DRIX
$OOULJKWVIRUWKLVERRNUHVHUYHG1RSDUWRIWKLVERRNPD\EHUHSURGXFHGVWRUHGLQDUHWULHYDOV\VWHP
RUWUDQVPLWWHGLQDQ\IRUPRUE\DQ\PHDQVHOHFWURQLFPHFKDQLFDOSKRWRFRS\LQJUHFRUGLQJRU
RWKHUZLVHZLWKRXWWKHSULRUSHUPLVVLRQRIWKHFRS\ULJKWRZQHU
,6%1;,6%1
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
7R7KRVHLQWKH)XWXUH:RUOGEH\RQG,QJUHGLHQWVDQG7HFKQLTXHV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
%22.6$/62%<3(7(5%$2)8
&DWHJRU\,6RFLDO6FLHQFHVDQG5HODWHG)LHOGV
7KH)XWXUHRI3RVW+XPDQ0LJUDWLRQ
7KH)XWXUHRI3RVW+XPDQ&ULPLQDOLW\
7KH)XWXUHRI3RVW+XPDQ*HRJUDSK\
7KH)XWXUHRI3RVW+XPDQ*DPEOLQJ
7KH)XWXUHRI3RVW+XPDQ(GXFDWLRQ
7KH)XWXUHRI3RVW+XPDQ:DUDQG3HDFH
7KH)XWXUHRI3RVW+XPDQ/DZ
7KH)XWXUHRI3RVW+XPDQ2UJDQL]DWLRQ
7KH)XWXUHRI3RVW+XPDQ0DVV0HGLD
7KH5LVHRI$XWKRULWDULDQ/LEHUDO'HPRFUDF\
%H\RQGWKH:RUOGRI7LWDQVDQGWKH5HPDNLQJRI:RUOG2UGHU
%H\RQG&DSLWDOLVPWR3RVW&DSLWDOLVP
9ROXPH%H\RQG'HPRFUDF\WR3RVW'HPRFUDF\
9ROXPH%H\RQG'HPRFUDF\WR3RVW'HPRFUDF\
7KH)XWXUHRI&DSLWDOLVPDQG'HPRFUDF\
YLLL
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
&DWHJRU\,,)RUPDO6FLHQFHVDQG5HODWHG)LHOGV
7KH)XWXUHRI3RVW+XPDQ6HPDQWLFV
7KH)XWXUHRI3RVW+XPDQ'DWD$QDO\VLV
7KH)XWXUHRI3RVW+XPDQ&RPSXWLQJ
7KH)XWXUHRI3RVW+XPDQ)RUPDO6FLHQFH
7KH)XWXUHRI3RVW+XPDQ/DQJXDJH
7KH)XWXUHRI3RVW+XPDQ*HRPHWU\
7KH)XWXUHRI3RVW+XPDQ0DWKHPDWLFDO/RJLF
7KH)XWXUHRI,QIRUPDWLRQ$UFKLWHFWXUH
&DWHJRU\,,,1DWXUDO6FLHQFHVDQG5HODWHG)LHOGV
7KH)XWXUHRI3RVW+XPDQ7UDQVSRUWDWLRQ
7KH)XWXUHRI3RVW+XPDQ$UFKLWHFWXUH
7KH)XWXUHRI3RVW+XPDQ&KHPLVWU\
7KH)XWXUHRI3RVW+XPDQ$FRXVWLFV
7KH)XWXUHRI3RVW+XPDQ*HRORJ\
%H\RQG&RVPRORJ\WR3RVW&RVPRORJ\
7KH)XWXUHRI3RVW+XPDQ3HUVRQDOLW\
7KH)XWXUHRI3RVW+XPDQ6H[XDOLW\
7KH)XWXUHRI3RVW+XPDQ8UEDQ3ODQQLQJ
7KH)XWXUHRI3RVW+XPDQ(QJLQHHULQJ
7KH)XWXUHRI3RVW+XPDQ8QFRQVFLRXVQHVV
7KH)XWXUHRI&RPSOH[LW\
%H\RQG1DWXUHDQG1XUWXUH
7KH)XWXUHRI3RVW+XPDQ6SDFH7LPH
7KH)XWXUHRI3RVW+XPDQ&RQVFLRXVQHVV
%RRNVDOVRE\3HWHU%DRIX
&DWHJRU\,97KH+XPDQLWLHVDQG5HODWHG)LHOGV
7KH)XWXUHRI3RVW+XPDQ+LVWRU\
7KH)XWXUHRI3RVW+XPDQ3HUIRUPLQJ$UWV
7KH)XWXUHRI3RVW+XPDQ/LWHUDWXUH
7KH)XWXUHRI3RVW+XPDQ+XPRU
%H\RQG(WKLFVWR3RVW(WKLFV
7KH)XWXUHRI3RVW+XPDQ5HOLJLRQ
7KH)XWXUHRI3RVW+XPDQ&KHVV
7KH)XWXUHRI3RVW+XPDQ0DUWLDO$UWV
7KH)XWXUHRI3RVW+XPDQ&UHDWLYH7KLQNLQJ
7KH)XWXUHRI3RVW+XPDQ.QRZOHGJH
7KH)XWXUHRI$HVWKHWLF([SHULHQFH
%H\RQG&LYLOL]DWLRQWR3RVW&LYLOL]DWLRQ
9ROXPH7KH)XWXUHRI+XPDQ&LYLOL]DWLRQ
9ROXPH7KH)XWXUHRI+XPDQ&LYLOL]DWLRQ
L[
&217(176
/LVWRI7DEOHV[Y
$FNQRZOHGJPHQWV[[L
/LVWRI$EEUHYLDWLRQV[[LLL
3DUW2QH,QWURGXFWLRQ
&KDSWHU2QH,QWURGXFWLRQ7KH3UDFWLFHRI&XOLQDU\$UW
$&RQWHQWLRQEHWZHHQ7ZR9LHZV
'HILQLWLRQDQG+LVWRU\RI&XOLQDU\$UW
,QJUHGLHQWVDQG7HFKQLTXHVLQ&XOLQDU\$UW
*HQHUDO&KDUDFWHULVWLFVRI&XOLQDU\$UW
7KH7KHRUHWLFDO'HEDWH
7KH,QTXLVLWLYH7KHRU\RI&XOLQDU\$UW
7KHRU\DQG0HWD7KHRU\
7KH/RJLFRI([LVWHQWLDO'LDOHFWLFV
6RSKLVWLFDWHG0HWKRGRORJLFDO+ROLVP
&KDSWHU2XWOLQH
6RPH&ODULILFDWLRQV
3DUW7ZR,QJUHGLHQWV
&KDSWHU7ZR,QJUHGLHQWVDQGWKHLU7ZLQ4XDOLWLHV
7KH1HFHVVLW\RI,QJUHGLHQWV
,QJUHGLHQWVDQGWKH0LQG
,QJUHGLHQWVDQG1DWXUH
,QJUHGLHQWVDQG6RFLHW\
,QJUHGLHQWVDQG&XOWXUH
7KH&RQWLQJHQF\RI,QJUHGLHQWV
[LL
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
3DUW7KUHH7HFKQLTXHV
&KDSWHU7KUHH7HFKQLTXHVDQGWKHLU'XDO6LGHV
7KH(IIHFWLYHQHVVRI7HFKQLTXHV
7HFKQLTXHVDQGWKH0LQG
7HFKQLTXHVDQG1DWXUH
7HFKQLTXHVDQG6RFLHW\
7HFKQLTXHVDQG&XOWXUH
7KH,QHIIHFWLYHQHVVRI7HFKQLTXHV
3DUW)RXU&RQFOXVLRQ
&KDSWHU)RXU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
%H\RQG,QJUHGLHQWVDQG7HFKQLTXHV
,Q5HODWLRQWR0HWKRG
VW7KHVLV7KH)RUPDOQHVV,QIRUPDOQHVV3ULQFLSOH
QG7KHVLV7KH$EVROXWHQHVV5HODWLYHQHVV3ULQFLSOH
UG7KHVLV7KH3DUWLDOLW\7RWDOLW\3ULQFLSOH
WK7KHVLV7KH3UHGLFWDELOLW\8QSUHGLFWDELOLW\3ULQFLSOH
WK7KHVLV7KH([SOLFDELOLW\,QH[SOLFDELOLW\3ULQFLSOH
WK7KHVLV7KH)LFWLRQ5HDOLW\3ULQFLSOH
,Q5HODWLRQWR6WUXFWXUH
WK7KHVLV7KH)LQLWHQHVV7UDQVILQLWHQHVV3ULQFLSOH
WK7KHVLV7KH3UHFLVHQHVV9DJXHQHVV3ULQFLSOH
WK7KHVLV7KH6LPSOHQHVV&RPSOLFDWHGQHVV3ULQFLSOH
WK7KHVLV7KH2SHQQHVV+LGGHQQHVV3ULQFLSOH
WK7KHVLV7KH'HQVHQHVV(PSWLQHVV3ULQFLSOH
,Q5HODWLRQWR3URFHVV
WK7KHVLV7KH&KDQJH&RQVWDQF\3ULQFLSOH
WK7KHVLV7KH2UGHU&KDRV3ULQFLSOH
WK7KHVLV7KH6ORZQHVV4XLFNQHVV3ULQFLSOH
WK7KHVLV7KH([SDQVLRQ&RQWUDFWLRQ3ULQFLSOH
,Q5HODWLRQWR$JHQF\
WK7KHVLV7KH7KHRU\3UD[LV3ULQFLSOH
WK7KHVLV7KH&RQYHQWLRQ1RYHOW\3ULQFLSOH
WK7KHVLV7KH(YROXWLRQ7UDQVIRUPDWLRQ3ULQFLSOH
WK7KHVLV7KH6\PPHWU\$V\PPHWU\3ULQFLSOH
WK7KHVLV7KH6RIQHVV+DUGQHVV3ULQFLSOH
VW7KHVLV7KH6HULRXVQHVV3OD\IXOQHVV3ULQFLSOH
QG7KHVLV7KH$FWLYHQHVV,QDFWLYHQHVV3ULQFLSOH
UG7KHVLV7KH6HOIQHVV2WKHUQHVV3ULQFLSOH
&RQWHQWV
[LLL
,Q5HODWLRQWR2XWFRPH
WK7KHVLV7KH5HJUHVVLRQ3URJUHVVLRQ3ULQFLSOH
WK7KHVLV7KH6DPH'LIIHUHQFH3ULQFLSOH
WK7KHVLV7KH6WDELOLW\5HDFWLRQ3ULQFLSOH
WK7KHVLV7KH)XQFWLRQDOLW\1RQIXQFWLRQDOLW\3ULQFLSOH
WK7KHVLV7KH3RVW+XPDQ,QTXLVLWLRQ
7RZDUGVWKH3RVW+XPDQ,QTXLVLWLRQ
%LEOLRJUDSK\
,QGH[
7$%/(6
&DWHJRU\,7KH7KHRUHWLFDO'HEDWHRQ&XOLQDU\$UW
7DEOH*HQHUDO&KDUDFWHULVWLFVRI&XOLQDU\$UW
7DEOH1LQH*UHDW)XWXUH7UDQVIRUPDWLRQVRI&XOLQDU\$UW
7DEOH,QJUHGLHQWVDQGWKHLU7ZLQ4XDOLWLHV
7DEOH,QJUHGLHQWV$SKURGLVLDFVDQG6H[XDOLW\
7DEOH,QJUHGLHQWV)RRG*XLGH3\UDPLGDQG1XWULWLRQ
7DEOH,QJUHGLHQWV1DWXUHDQG5DZ)RRG
7DEOH,QJUHGLHQWV)RRG6HFXULW\DQG1XWUWLRQDO(FRQRPLFV
7DEOH,QJUHGLHQWV'LHWDQGWKH(WKLFVRI(DWLQJ0HDW
7DEOH7HFKQLTXHVDQGWKHLU'XDO6LGHV
7DEOH7HFKQLTXHV'LVHDVHDQG)RRG6DIHW\
7DEOH7HFKQLTXHV&RRNLQJDQG+HDOWK
7DEOH7HFKQLTXHV3UHVHUYDWLRQDQG)RRG7HFKQRORJ\
7DEOH7HFKQLTXHV)DVW)RRGDQGWKH)RRG,QGXVWU\
7DEOH7HFKQLTXHV)RRG3KRWRJUDSK\DQGWKH$UWRI3UHVHQWDWLRQ
7DEOH7HFKQLTXHV&XLVLQHDQG&XOWXUDO9DULDWLRQV
&DWHJRU\,,9LVLRQVRQ1DWXUH
7DEOH7KH7KHRUHWLFDO'HEDWHRQ6SDFH7LPH
7DEOH0DLQ5HDVRQVIRU$OWHULQJ6SDFH7LPH
7DEOH7KH7HFKQRORJLFDO)URQWLHUVRIWKH0LFUR:RUOG
7DEOH)LQLW\7UDQVILQLW\DQG,QILQLW\
7DEOH7KHRUHWLFDO6SHFXODWLRQVRI0XOWLYHUVHV
7DEOH7KH&RQIXVLRQ%HWZHHQ0DQ\:RUOGVDQG0XOWLYHUVH
7DEOH+\SHUVSDFHDQG,WV&KDOOHQJH
7DEOH7KH3UREOHPVRI7LPH7UDYHOLQWRWKH)XWXUH
7DEOH7KH3UREOHPVRI7LPH7UDYHOLQWRWKH3DVW
[YL
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
&DWHJRU\,,,9LVLRQVRQWKH0LQG
7DEOH7KH&RQFHSWXDO'LPHQVLRQVRI&RQVFLRXVQHVV
DQG2WKHU0HQWDO6WDWHV
7DEOH7KH7KHRUHWLFDO/HYHOVRI&RQVFLRXVQHVV
DQG2WKHU0HQWDO6WDWHV
7DEOH7KH7KHPDWLF,VVXHVRI&RQVFLRXVQHVV
DQG2WKHU0HQWDO6WDWHV
7DEOH+DYLQJ%HORQJLQJDQG%HLQJLQ&RQVFLRXVQHVV
DQG2WKHU0HQWDO6WDWHV
7DEOH7KH+DYLQJ1HVVRI&RQVFLRXVQHVV
DQG2WKHU0HQWDO6WDWHV
7DEOH7KH%HORQJLQJ1HVVRI&RQVFLRXVQHVV
DQG2WKHU0HQWDO6WDWHV
7DEOH7KH%HLQJ1HVVRI&RQVFLRXVQHVV
DQG2WKHU0HQWDO6WDWHV
7DEOH&RJQLWLYH3DUWLDOLW\LQ'LIIHUHQW0HQWDO6WDWHV
7DEOH(PRWLRQDO1RQ1HXWUDOLW\DQG%HKDYLRUDO$OWHUDWLRQ
LQ'LIIHUHQW0HQWDO6WDWHV
7DEOH7KH/LPLWVRI,QWXLWLRQLQ8QFRQVFLRXVQHVV
7DEOH7KH:HDOWK3RYHUW\'LDOHFWLFVLQ'LIIHUHQW0HQWDO6WDWHV
7KH&DVHRI&RJQLWLRQ
7DEOH7KH:HDOWK3RYHUW\'LDOHFWLFVLQ'LIIHUHQW0HQWDO6WDWHV
7KH&DVHRI(PRWLRQDQG%HKDYLRU
7DEOH7KH7KHRUHWLFDO'HEDWHRQ1DWXUHDQG1XUWXUH
7DEOH3K\VLFDO&KDOOHQJHVWR+\SHU6SDWLDO&RQVFLRXVQHVV
7DEOH7KH7KHRU\RI)ORDWLQJ&RQVFLRXVQHVV
7DEOH7KH3RWHQWLDORI8QIROGLQJ8QFRQVFLRXVQHVV
7DEOH7KH)XWXUH([SORUDWLRQRI8QIROGLQJ8QFRQVFLRXVQHVV
7DEOH&UHDWLYH7HFKQLTXHVDQG7UDLWV
7DEOH7KH'HVLUDELOLW\RI&UHDWLYLW\DQG,WV'DUN6LGHV
7DEOH3RVWKXPDQ,VP3RVW+XPDQLVPDQG7UDQV+XPDQLVP
7DEOH7KUHH*UHDW)XWXUH7UDQVIRUPDWLRQVRIWKH0DUWLDO%RG\
7DEOH7KUHH*UHDW)XWXUH7UDQVIRUPDWLRQVRIWKH6H[XDO%RG\
&DWHJRU\,99LVLRQVRQ+LVWRU\
7DEOH7KH7ULQLW\RI3UH0RGHUQLW\
7DEOH7KH7ULQLW\RI0RGHUQLW\
7DEOH7KH7ULQLW\RI3RVW0RGHUQLW\
7DEOH7KH7ULQLW\RI$IWHU3RVWPRGHUQLW\
7DEOHV
[YLL
&DWHJRU\99LVLRQVRQ0HWKRGRORJ\
7DEOH6RSKLVWLFDWHG0HWKRGRORJLFDO+ROLVP
7DEOH2Q5HGXFWLRQLVPDQG5HYHUVH5HGXFWLRQLVP
&DWHJRU\9,9LVLRQVRQ2QWRORJ\
7DEOH7KH&RQFHSWLRQRI([LVWHQWLDO'LDOHFWLFV
7DEOH7KH6\QWD[RI([LVWHQWLDO'LDOHFWLFV,
7KH3ULQFLSOHV
7DEOH7KH6\QWD[RI([LVWHQWLDO'LDOHFWLFV,,
7KH3ULQFLSOHVDV6KRUW&XWV
7DEOH7KH6\QWD[RI([LVWHQWLDO'LDOHFWLFV,,,
7KH3ULQFLSOHVDV)DPLO\5HVHPEODQFHV
7DEOH7KH6\QWD[RI([LVWHQWLDO'LDOHFWLFV,9
7KH'LDOHFWLF&RQVWUDLQWV,PSRVHGE\WKH3ULQFLSOHV
7DEOH7KH6\QWD[RI([LVWHQWLDO'LDOHFWLFV9
)XUWKHU&ODULILFDWLRQV
7DEOH7KH6\QWD[RI([LVWHQWLDO'LDOHFWLFV9,
7KH'LOHPPDRI6SHFLILFYV*HQHUDO2QWRORJ\
7DEOH7KH6\QWD[RI([LVWHQWLDO'LDOHFWLFV9,,
7\SHVRI,QDSSURSULDWH)DPLO\5HVHPEODQFHV
7DEOH7KH6HPDQWLFVRI([LVWHQWLDO'LDOHFWLFV
7DEOH7KH3UDJPDWLFVRI([LVWHQWLDO'LDOHFWLFV
7DEOH7KH)UHHGRP8QIUHHGRP'LDOHFWLFV
7DEOH7KH(TXDOLW\,QHTXDOLW\'LDOHFWLFV
7DEOH7KH'XDOLW\RI2SSUHVVLRQLQ([LVWHQWLDO'LDOHFWLFV
2SSUHVVLRQDQG6HOI2SSUHVVLRQ
7DEOH7KH6WUXFWXUHRI([LVWHQWLDO'LDOHFWLFV,
7KH)UHHGRP8QIUHHGRPDQG(TXDOLW\,QHTXDOLW\'LDOHFWLFV
7DEOH7KH6WUXFWXUHRI([LVWHQWLDO'LDOHFWLFV,,
7KH:HDOWK3RYHUW\'LDOHFWLFV
7DEOH7KH6WUXFWXUHRI([LVWHQWLDO'LDOHFWLFV,,,
7KH&LYLOL]DWLRQ%DUEDULW\'LDOHFWLFV
[YLLL
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
&DWHJRU\9,,9LVLRQVRQ6RFLHW\6RFLR3ROLWLFDO
7DEOH7KH'RXEOH6LGHVRI9LUWXDO2UJDQL]DWLRQV
7DEOH%H\RQGWKH:RUOGRI7LWDQVDQGWKH5HPDNLQJ
RI:RUOG2UGHU
7DEOH7KH2ULJLQVRI$XWKRULWDULDQ/LEHUDO'HPRFUDF\
7DEOH7KH7KHRU\RI3RVW'HPRFUDF\,
7KH3ULRULW\RI)UHHGRPRYHU(TXDOLW\
7DEOH7KH7KHRU\RI3RVW'HPRFUDF\,,
7KH3ULRULW\RI(TXDOLW\RYHU)UHHGRP
7DEOH7KH7KHRU\RI3RVW'HPRFUDF\,,,
7KH7UDQVFHQGHQFHRI)UHHGRPDQG(TXDOLW\
7DEOH'HPRFUDF\1RQ'HPRFUDF\DQG3RVW'HPRFUDF\
7DEOH0XOWLSOH&DXVHVRIWKH(PHUJHQFHRI
3RVW'HPRFUDF\
7DEOH6RPH&ODULILFDWLRQVRQ3RVW&DSLWDOLVP
DQG3RVW'HPRFUDF\
&DWHJRU\9,,,9LVLRQVRQ6RFLHW\6RFLR(FRQRPLF
7DEOH7KH7KHRU\RI3RVW&DSLWDOLVP,%\*URXS
([6SLULWXDO&RPPXQDOLQWKH7UDQV)HPLQLQH&DOOLQJ
7DEOH7KH7KHRU\RI3RVW&DSLWDOLVP,%\1DWLRQ6WDWH
([6SLULWXDO&RPPXQDOLQWKH7UDQV6LQLWLF&DOOLQJ
7DEOH7KH7KHRU\RI3RVW&DSLWDOLVP,%\5HJLRQ
([6SLULWXDO&RPPXQDOLQWKH7UDQV,VODPLF&DOOLQJ
7DEOH7KH7KHRU\RI3RVW&DSLWDOLVP,%\8QLYHUVH
([6SLULWXDO&RPPXQDOLQWKH7UDQV2XWHUVSDFH&DOOLQJ
7DEOH7KH7KHRU\RI3RVW&DSLWDOLVP,,6SLULWXDO
,QGLYLGXDOLVWLFLQWKH3RVW+XPDQ(OLWLVW&DOOLQJ
7DEOH&DSLWDOLVP1RQ&DSLWDOLVPDQG3RVW&DSLWDOLVP
7DEOH0XOWLSOH&DXVHVRIWKH(PHUJHQFHRI3RVW&DSLWDOLVP
7DEOHV
[L[
&DWHJRU\,;9LVLRQVRQ&XOWXUH
7DEOH7KH7KHRUHWLFDO'HEDWHRQ&LYLOL]DWLRQ
7DEOH1R)UHHGRP:LWKRXW8QIUHHGRP
LQWKH&LYLOL]LQJ3URFHVVHV
7DEOH1R(TXDOLW\:LWKRXW,QHTXDOLW\
LQWKH&LYLOL]LQJ3URFHVVHV
7DEOH)LYH7KHVHVRQ3RVW&LYLOL]DWLRQ
7DEOH%DUEDULW\&LYLOL]DWLRQDQG3RVW&LYLOL]DWLRQ
7DEOH7\SHVRI6XSHU&LYLOL]DWLRQLQWKH&RVPRV
7DEOH7KH&LYLOL]DWLRQDO3URMHFWIURP3UH0RGHUQLW\
WR$IWHU3RVWPRGHUQLW\
7DEOH&LYLOL]DWLRQDO+ROLVP
7DEOH7KHRULHVRQ&LYLOL]DWLRQDO+ROLVP
7DEOH7KUHH*UHDW)XWXUH7UDQVIRUPDWLRQVRI0LQG*DPHV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
$&.12:/('*0(176
7KLV ERRN OLNH DOO RWKHU SUHYLRXV ERRNV RI PLQH LV ZULWWHQ WR
FKDOOHQJHFRQYHQWLRQDOLGHDVRUPRUHSUHFLVHO\LQWKHFXUUHQWFRQWH[WWKH
RQHVRQFXOLQDU\DUWDQGWRUHSODFHWKHPZLWKDQRULJLQDOZD\RIWKLQNLQJ
DERXWLWVIXWXUHIDWHLQUHODWLRQWRLQJUHGLHQWVDQGWHFKQLTXHV
&RQVHTXHQWO\ WKLV ERRN UHFHLYHV QR H[WHUQDO IXQGLQJ QRU KHOS IURP
DQ\ IRUPDO RUJDQL]DWLRQ RU LQVWLWXWLRQ EHFDXVH RI LWV SROLWLFDO
LQFRUUHFWQHVVDVWKLVLVVRPHWKLQJWKDW,RIWHQVWUHVVHGDQGUHSHDWHGLQ
DOOP\SUHYLRXVERRNV
0\RQO\UHZDUGLVWKDWMR\IXOZRQGHUDERXWVRPHWKLQJRULJLQDOLQWKH
LQWHOOHFWXDOKLVWRU\RIFXOLQDU\DUW
$QGDVDOZD\V,EHDUWKHVROHUHVSRQVLELOLW\IRUWKHLGHDVSUHVHQWHGLQ
WKLVERRN
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
$%%5(9,$7,216
$/' 3HWHU%DRIX7KH5LVHRI$XWKRULWDULDQ/LEHUDO'HPRFUDF\
$ 3UHIDFH WR D 1HZ 7KHRU\ RI &RPSDUDWLYH 3ROLWLFDO 6\VWHPV
&DPEULGJH(QJODQG&DPEULGJH6FKRODUV3XEOLVKLQJ/WG
%&,9 3HWHU %DRIX %H\RQG &LYLOL]DWLRQ WR 3RVW&LYLOL]DWLRQ
&RQFHLYLQJ D %HWWHU 0RGHO RI /LIH 6HWWOHPHQW WR 6XSHUVHGH
&LYLOL]DWLRQ1<3HWHU/DQJ3XEOLVKLQJ,QF
%&3& 3HWHU %DRIX %H\RQG &DSLWDOLVP WR 3RVW&DSLWDOLVP
&RQFHLYLQJ D %HWWHU 0RGHO RI :HDOWK $FTXLVLWLRQ WR 6XSHUVHGH
&DSLWDOLVP1<7KH(GZLQ0HOOHQ3UHVV
%&26 3HWHU %DRIX %H\RQG &RVPRORJ\ WR 3RVW&RVPRORJ\ $
3UHIDFH WR D 1HZ 7KHRU\ RI 'LIIHUHQW :RUOGV &DPEULGJH (QJODQG
&DPEULGJH,QWHUQDWLRQDO6FLHQFH3XEOLVKLQJ/WG
%'3' 3HWHU %DRIX 9ROXPH %H\RQG 'HPRFUDF\ WR 3RVW
'HPRFUDF\&RQFHLYLQJD%HWWHU0RGHORI*RYHUQDQFHWR6XSHUVHGH
'HPRFUDF\1<7KH(GZLQ0HOOHQ3UHVV
%'3' 3HWHU %DRIX 9ROXPH %H\RQG 'HPRFUDF\ WR 3RVW
'HPRFUDF\&RQFHLYLQJD%HWWHU0RGHORI*RYHUQDQFHWR6XSHUVHGH
'HPRFUDF\1<7KH(GZLQ0HOOHQ3UHVV
%(3( 3HWHU%DRIX%H\RQG(WKLFVWR3RVW(WKLFV$3UHIDFHWRD
1HZ7KHRU\RI0RUDOLW\DQG,PPRUDOLW\&KDUORWWH1&,QIRPUDWLRQ
$JH3XEOLVKLQJ
%11 3HWHU %DRIX %H\RQG 1DWXUH DQG 1XUWXUH &RQFHLYQJ D
%HWWHU :D\ WR 8QGHUVWDQG *HQHV DQG 0HPHV &DPEULGJH (QJODQG
&DPEULGJH6FKRODUV3XEOLVKLQJ/WG
%:7 3HWHU%DRIX%H\RQGWKH:RUOGRI7LWDQVDQGWKH5HQDNLQJ
RI :RUOG 2UGHU $ 3UHIDFH WR D 1HZ /RJLF RI (PSLUH%XLOGLQJ
&DPEULGJH(QJODQG&DPEULGJH6FKRODUV3XEOLVKLQJ/WG
)$( 3HWHU%DRIX7KH)XWXUHRI$HVWKHWLF([SHULHQFH&RQFHLYLQJ
D %HWWHU :D\ WR 8QGHUVWDQG %HDXW\ 8JOLQHVV DQG WKH 5HVW
&DPEULGJH(QJODQG&DPEULGJH6FKRODUV3XEOLVKLQJ/WG
[[LY
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
)& 3HWHU%DRIX 7KH)XWXUHRI&RPSOH[LW\ &RQFHLYLQJD%HWWHU
:D\ WR 8QGHUVWDQG 2UGHU DQG &KDRV /RQGRQ 8QLWHG .LQJGRP
:RUOG6FLHQWLILF3XEOLVKLQJ&R
)&' 3HWHU%DRIX7KH)XWXUHRI&DSLWDOLVPDQG'HPRFUDF\0'
7KH8QLYHUVLW\3UHVVRI$PHULFD
)+& 3HWHU%DRIX9ROXPH7KH)XWXUHRI+XPDQ&LYLOL]DWLRQ
1<7KH(GZLQ0HOOHQ3UHVV
)+& 3HWHU%DRIX9ROXPH7KH)XWXUHRI+XPDQ&LYLOL]DWLRQ
1<7KH(GZLQ0HOOHQ3UHVV
),$ 3HWHU %DRIX 7KH )XWXUH RI ,QIRUPDWLRQ $UFKLWHFWXUH
&RQFHLYLQJ D %HWWHU :D\ WR 8QGHUVWDQG 7D[RQRP\ 1HWZRUN DQG
,QWHOOLJHQFH2[IRUG(QJODQG&KDQGRV3XEOLVKLQJ2[IRUG/LPLWHG
)3+$ 3HWHU %DRIX 7KH )XWXUH RI 3RVW+XPDQ $FRXVWLFV $
3UHIDFHWRD1HZ7KHRU\RI6RXQGDQG6LOHQFH&DPEULGJH(QJODQG
&DPEULGJH,QWHUQDWLRQDO6FLHQFH3XEOLVKLQJ/WG
)3+$5&+ 3HWHU%DRIX7KH)XWXUHRI3RVW+XPDQ$UFKLWHFWXUH
$ 3UHIDFH WR D 1HZ 7KHRU\ RI )RUP DQG )XQFWLRQ &DPEULGJH
(QJODQG&DPEULGJH,QWHUQDWLRQDO6FLHQFH3XEOLVKLQJ/WG
)3+& 3HWHU %DRIX 7KH )XWXUH RI 3RVW+XPDQ &RQVFLRXVQHVV
1<7KH(GZLQ0HOOHQ3UHVV
)3+&$ 3HWHU %DRIX 7KH )XWXUH RI 3RVW+XPDQ &XOLQDU\ $UW
7RZDUGV D 1HZ 7KHRU\ RI ,QJUHGLHQWV DQG 7HFKQLTXHV (QJODQG
&DPEULGJH6FKRODUV3XEOLVKLQJ/WG
)3+&+(0 3HWHU%DRIX7KH)XWXUHRI3RVW+XPDQ&KHPLVWU\$
3UHIDFHWRD1HZ7KHRU\RI6XEVWDQFHVDQGWKHLU&KDQJHV(QJODQG
&DPEULGJH6FKRODUV3XEOLVKLQJ/WG
)3+&+(66 3HWHU %DRIX 7KH )XWXUH RI 3RVW+XPDQ &KHVV $
3UHIDFH WR D 1HZ 7KHRU\ RI 7DFWLFV DQG 6WUDWHJ\ &DPEULGJH
(QJODQG&DPEULGJH,QWHUQDWLRQDO6FLHQFH3XEOLVKLQJ/WG
)3+&20 3HWHU%DRIX7KH)XWXUHRI3RVW+XPDQ&RPSXWLQJ$
3UHIDFH WR D 1HZ 7KHRU\ RI +DUGZDUH DQG 6RIWZDUH &DPEULGJH
(QJODQG&DPEULGJH,QWHUQDWLRQDO6FLHQFH3XEOLVKLQJ/WG
)3+&5,0 3HWHU%DRIX7KH)XWXUHRI3RVW+XPDQ&ULPLQDOLW\
$ 3UHIDFH WR D 1HZ 7KHRU\ RI +HURHV DQG 9LOODLQHV &DPEULGJH
(QJODQG&DPEULGJH,QWHUQDWLRQDO6FLHQFH3XEOLVKLQJ/WG
)3+&7 3HWHU %DRIX 7KH )XWXUH RI 3RVW+XPDQ &UHDWLYH
7KLQNLQJ $ 3UHIDFH WR D 1HZ 7KHRU\ RI ,QYHQWLRQ DQG ,QQRYDWLRQ
&DPEULGJH(QJODQG&DPEULGJH6FKRODUV3XEOLVKLQJ/WG
$EEUHYLDWLRQV
[[Y
)3+'$ 3HWHU%DRIX7KH)XWXUHRI3RVW+XPDQ'DWD$QDO\VLV$
3UHIDFH WR D 1HZ 7KHRU\ RI 4XDQWLWDWLYH DQG 4XDOLWDWLYH 5HVHDUFK
&DPEULGJH (QJODQG &DPEULGJH ,QWHUQDWLRQDO 6FLHQFH 3XEOLVKLQJ
/WG
)3+( 3HWHU %DRIX 7KH )XWXUH RI 3RVW+XPDQ (QJLQHHULQJ $
3UHIDFH WR D 1HZ 7KHRU\ RI 7HFKQRORJ\ &DPEULGJH (QJODQG
&DPEULGJH6FKRODUV3XEOLVKLQJ/WG
)3+('8 3HWHU%DRIX7KH)XWXUHRI3RVW+XPDQ(GXFDWLRQ$
3UHIDFH WR D 1HZ 7KHRU\ RI 7HDFKLQJ DQG /HDUQLQJ &DPEULGJH
(QJODQG&DPEULGJH,QWHUQDWLRQDO6FLHQFH3XEOLVKLQJ/WG
)3+)6 3HWHU%DRIX7KH)XWXUHRI3RVW+XPDQ)RUPDO6FLHQFH
$ 3UHIDFH WR D 1HZ 7KHRU\ RI $EVWUDFWLRQ DQG $SSOLFDWLRQ
&DPEULGJH(QJODQG&DPEULGJH6FKRODUV3XEOLVKLQJ/WG
)3+* 3HWHU %DRIX 7KH )XWXUH RI 3RVW+XPDQ *HRPHWU\ $
3UHIDFH WR D 1HZ 7KHRU\ RI ,QILQLW\ 6\PPHWU\ DQG 'LPHQVLRQDOLW\
&DPEULGJH(QJODQG&DPEULGJH6FKRODUV3XEOLVKLQJ/WG
)3+*$0 3HWHU%DRIX7KH)XWXUHRI3RVW+XPDQ*DPEOLQJ$
3UHIDFHWRD1HZ7KHRU\RI5LVNDQG&DXWLRQ&DPEULGJH(QJODQG
&DPEULGJH,QWHUQDWLRQDO6FLHQFH3XEOLVKLQJ/WG
)3+*(2* 3HWHU%DRIX7KH)XWXUHRI3RVW+XPDQ*HRJUDSK\
$ 3UHIDFH WR D 1HZ 7KHRU\ RI (QYLURQPHQWV DQG WKHLU ,QWHUDFWLRQV
&DPEULGJH (QJODQG &DPEULGJH ,QWHUQDWLRQDO 6FLHQFH 3XEOLVKLQJ
/WG
)3+*(2/ 3HWHU %DRIX 7KH )XWXUH RI 3RVW+XPDQ *HRORJ\ $
3UHIDFH WR D 1HZ 7KHRU\ RI 6WDWLFV DQG '\QDPLFV &DPEULGJH
(QJODQG&DPEULGJH,QWHUQDWLRQDO6FLHQFH3XEOLVKLQJ/WG
)3++ 3HWHU%DRIX7KH)XWXUHRI3RVW+XPDQ+XPRU$3UHIDFH
WR D 1HZ 7KHRU\ RI -RNLQJ DQG /DXJKLQJ &DPEULGJH (QJODQG
&DPEULGJH,QWHUQDWLRQDO6FLHQFH3XEOLVKLQJ/WG
)3++,67 3HWHU %DRIX 7KH )XWXUH RI 3RVW+XPDQ +LVWRU\ $
3UHIDFH WR D 1HZ 7KHRU\ RI 8QLYHUVDOLW\ DQG 5HODWLYLW\ &DPEULGJH
(QJODQG&DPEULGJH6FKRODUV3XEOLVKLQJ/WG
)3+. 3HWHU %DRIX 7KH )XWXUH RI 3RVW+XPDQ .QRZOHGJH $
3UHIDFH WR D 1HZ 7KHRU\ RI 0HWKRGRORJ\ DQG 2QWRORJ\ 2[IRUG
(QJODQG&KDQGRV3XEOLVKLQJ2[IRUG/LPLWHG
)3+/ 3HWHU %DRIX 7KH )XWXUH RI 3RVW+XPDQ /DQJXDJH $
3UHIDFH WR D 1HZ 7KHRU\ RI 6WUXFWXUH &RQWH[W DQG /HDUQLQJ
&DPEULGJH(QJODQG&DPEULGJH6FKRODUV3XEOLVKLQJ/WG
[[YL
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
)3+/$: 3HWHU %DRIX 7KH )XWXUH RI 3RVW+XPDQ /DZ $
3UHIDFH WR D 1HZ 7KHRU\ RI 1HFHVVLW\ &RQWLQJHQF\ DQG -XVWLFH
&DPEULGJH(QJODQG&DPEULGJH6FKRODUV3XEOLVKLQJ/WG
)3+/,7 3HWHU %DRIX 7KH )XWXUH RI 3RVW+XPDQ /LWHUDWXUH $
3UHIDFH WR D 1HZ 7KHRU\ RI )LFWLRQ DQG 1RQ)LFWLRQ &DPEULGJH
(QJODQG&DPEULGJH,QWHUQDWLRQDO6FLHQFH3XEOLVKLQJ/WG
)3+0$ 3HWHU%DRIX7KH)XWXUHRI3RVW+XPDQ0DUWLDO$UWV$
3UHIDFH WR D 1HZ 7KHRU\ RI WKH %RG\ DQG 6SLULW RI :DUULRUV
&DPEULGJH(QJODQG&DPEULGJH6FKRODUV3XEOLVKLQJ/WG
)3+0,* 3HWHU %DRIX 7KH )XWXUH RI 3RVW+XPDQ 0LJUDWLRQ $
3UHIDFH WR D 1HZ 7KHRU\ RI 6DPHQHVV 2WKHUQHVV DQG ,GHQWLW\
&DPEULGJH(QJODQG&DPEULGJH6FKRODUV3XEOLVKLQJ/WG
)3+0/ 3HWHU %DRIX 7KH )XWXUH RI 3RVW+XPDQ 0DWKHPDWLFDO
/RJLF $ 3UHIDFH WR D 1HZ 7KHRU\ RI 5DWLRQDOLW\ &DPEULGJH
(QJODQG&DPEULGJH6FKRODUV3XEOLVKLQJ/WG
)3+00 3HWHU%DRIX7KH)XWXUHRI3RVW+XPDQ0DVV0HGLD$
3UHIDFH WR D 1HZ 7KHRU\ RI 7HFKQRORJ\ &DPEULGJH (QJODQG
&DPEULGJH6FKRODUV3XEOLVKLQJ/WG
)3+2 3HWHU %DRIX 7KH )XWXUH RI 3RVW+XPDQ 2UJDQL]DWLRQ $
3UHIDFH WR D 1HZ 7KHRU\ RI &RPPXQLFDWLRQ 'HFLVLRQ0DNLQJ DQG
/HDGHUVKLS&DPEULGJH (QJODQG &DPEULGJH 6FKRODUV 3XEOLVKLQJ
/WG
)3+3 3HWHU %DRIX 7KH )XWXUH RI 3RVW+XPDQ 3HUVRQDOLW\ $
3UHIDFHWRD1HZ7KHRU\RI1RUPDOLW\DQG$EQRUPDOLW\&DPEULGJH
(QJODQG&DPEULGJH,QWHUQDWLRQDO6FLHQFH3XEOLVKLQJ/WG
)3+3$ 3HWHU%DRIX7KH)XWXUHRI3RVW+XPDQ3HUIRUPLQJ$UWV
$3UHIDFHWRD1HZ7KHRU\RIWKH%RG\DQGLWV3UHVHQFH&DPEULGJH
(QJODQG&DPEULGJH6FKRODUV3XEOLVKLQJ/WG
)3+5 3HWHU %DRIX 7KH )XWXUH RI 3RVW+XPDQ 5HOLJLRQ $
3UHIDFH WR D 1HZ 7KHRU\ RI 6SLULWXDOLW\ &DPEULGJH (QJODQG
&DPEULGJH,QWHUQDWLRQDO6FLHQFH3XEOLVKLQJ/WG
)3+6 3HWHU %DRIX 7KH )XWXUH RI 3RVW+XPDQ 6H[XDOLW\ $
3UHIDFH WR D 1HZ 7KHRU\ RI WKH %RG\ DQG 6SLULW RI /RYH0DNHUV
&DPEULGJH(QJODQG&DPEULGJH6FKRODUV3XEOLVKLQJ/WG
)3+6(0 3HWHU%DRIX7KH)XWXUHRI3RVW+XPDQ6HPDQWLFV$
3UHIDFH WR D 1HZ 7KHRU\ RI ,QWHUQDOLW\ DQG ([WHUQDOLW\ &DPEULGJH
(QJODQG&DPEULGJH6FKRODUV3XEOLVKLQJ/WG
$EEUHYLDWLRQV
[[YLL
)3+67 3HWHU %DRIX 7KH )XWXUH RI 3RVW+XPDQ 6SDFH7LPH
&RQFHLYQJD%HWWHU:D\WR8QGHUVWDQG6SDFHDQG7LPH1HZ<RUN
3HWHU/DQJ3XEOLVKLQJ,QF
)3+75$1 3HWHU %DRIX 7KH )XWXUH RI 3RVW+XPDQ
7UDQVSRUWDWLRQ $ 3UHIDFH WR D 1HZ 7KHRU\ RI 1HWZRUNV DQG
2SHUDWLRQV &DPEULGJH (QJODQG &DPEULGJH 6FKRODUV 3XEOLVKLQJ
/WG
)3+8 3HWHU%DRIX7KH)XWXUHRI3RVW+XPDQ8QFRQVFLRXVQHVV
$ 3UHIDFH WR D 1HZ 7KHRU\ RI $QRPDORXV ([SHULHQFH &DPEULGJH
(QJODQG&DPEULGJH6FKRODUV3XEOLVKLQJ/WG
)3+83 3HWHU%DRIX7KH)XWXUHRI3RVW+XPDQ8UEDQ3ODQQLQJ
$ 3UHIDFH WR D 1HZ 7KHRU\ RI 'HQVLW\ 9RLG DQG 6XVWDLQDELOLW\
&DPEULGJH(QJODQG&DPEULGJH6FKRODUV3XEOLVKLQJ/WG
)3+:3 3HWHU%DRIX7KH)XWXUHRI3RVW+XPDQ:DUDQG3HDFH
$3UHIDFHWRD1HZ7KHRU\RI$JJUHVVLRQDQG3DFLILFLW\&DPEULGJH
(QJODQG&DPEULGJH6FKRODUV3XEOLVKLQJ/WG
3$5721(
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
,QWURGXFWLRQ
&+$37(5
,1752'8&7,217+(35$&7,&(2)
&8/,1$5<$57
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
)RUPHFRRNLQJLVDQH[DFWDUWDQGQRW
VRPHFDVXDOJDPH
'HOLD6PLWK%4
$&RQWHQWLRQEHWZHHQ7ZR9LHZV
,V FXOLQDU\ DUW UHDOO\ VR H[DFW WKDW DV 'HOLD 6PLWK RQFH ZURWH
FRRNLQJLVDQH[DFWDUWDQGQRWVRPHFDVXDOJDPH"%4
7KLV H[DFW YLHZ RI FRRNLQJ FDQ EH FRQWUDVWHG ZLWK DQ RSSRVLQJ
REVHUYDWLRQE\7RP-DLQH ZKHQKHDUJXHGWKDW LIFRRNLQJEHFRPHVDQ
DUW IRUP UDWKHU WKDQ D PHDQV RI SURYLGLQJ D UHDVRQDEOH GLHW WKHQ
VRPHWKLQJLVFOHDUO\ZURQJ%4D
&RQWUDU\WRWKHVHRSSRVLQJYLHZVDQGRWKHURQHVDVZLOOEHGLVFXVVHG
LQWKHERRNFXOLQDU\DUWLQUHODWLRQWRERWKLQJUHGLHQWVDQGWHFKQLTXHVLV
QHLWKHUSRVVLEOHRULPSRVVLEOHQRUGHVLUDEOHRUXQGHVLUDEOHWRWKHH[WHQW
WKDWWKHUHVSHFWLYHLGHRORJXHVRQGLIIHUHQWVLGHVZRXOGOLNHXVWREHOLHYH
1HHGOHVVWRVD\WKLVFKDOOHQJHWRWKHRSSRVLQJYLHZVRIFRRNLQJGRHV
QRW PHDQ WKDW FXOLQDU\ DUW KDV QR SUDFWLFDO YDOXH RU WKDW WKRVH
LQWHUGLVFLSOLQDU\ ILHOGV UHODWHG WR FXOLQDU\ DUW OLNH IRRG VFLHQFH
QXWULWLRQDOHFRQRPLFVIRRGFKHPLVWU\IRRGDHVWKHWLFVWKHHWKLFVRINLOOLQJ
IRU IRRG PROHFXODU JDVWURQRP\ IRRG UKHRORJ\ IRRG SKRWRJUDSK\
6KHFKLWD WKH VFLHQFH RI DSKURGLVLDFV DQG VR RQ DUH XQLPSRUWDQW 2I
FRXUVHQHLWKHURIWKHVHH[WUHPHYLHZVLVUHDVRQDEOH
5DWKHUWKLVERRNRIIHUVDQDOWHUQDWLYHEHWWHUZD\WRXQGHUVWDQGWKH
IXWXUHRIFXOLQDU\DUWHVSHFLDOO\LQWKHGLDOHFWLFFRQWH[WRILQJUHGLHQWVDQG
WHFKQLTXHVZKLOHOHDUQLQJIURPGLIIHUHQWDSSURDFKHVLQWKHOLWHUDWXUHEXW
ZLWKRXWIDYRULQJDQ\RQHRIWKHPQRULQWHJUDWLQJWKHPVLQFHWKH\DUHQRW
QHFHVVDULO\FRPSDWLEOHZLWKHDFKRWKHU
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
0RUH VSHFLILFDOO\ WKLV ERRN RIIHUV D QHZ WKHRU\ WKDW LV WKH
LQTXLVLWLYHWKHRU\RIFXOLQDU\DUWWRJREH\RQGWKHH[LVWLQJDSSURDFKHVLQ
DQRYHOZD\
,IVXFFHVVIXOWKLVVHPLQDOSURMHFWLVWRIXQGDPHQWDOO\FKDQJHWKHZD\
WKDW ZH WKLQN DERXW FXOLQDU\ DUW LQ UHODWLRQ WR LQJUHGLHQWV DQG WHFKQLTXHV
IURPWKHFRPELQHGSHUVSHFWLYHVRIWKHPLQGQDWXUHVRFLHW\DQGFXOWXUH
ZLWK HQRUPRXV LPSOLFDWLRQV IRU WKH KXPDQ IXWXUH DQG ZKDW , RULJLQDOO\
FDOOHGLWVSRVWKXPDQIDWH
'HILQLWLRQDQG+LVWRU\RI&XOLQDU\$UW
$JRRGSRLQWRIGHSDUWXUHWRVWDUWWKLVLQTXLU\LVWRSURYLGHDZRUNLQJ
GHILQLWLRQRIWKHSKUDVHFXOLQDU\DUWDQGLWVEULHIKLVWRU\
'HILQLWLRQ
7KH ZRUGV FXOLQDU\ DUW UHIHU WR WKH DUW RI SUHSDULQJ DQG FRRNLQJ
IRRGVVLQFHWKHILUVWZRUGFXOLQDU\LVGHILQHGDVVRPHWKLQJUHODWHGWR
RUFRQQHFWHGZLWKFRRNLQJ:.
%HFDXVHRIWKHDUWLVWLFDQGFXOLQDU\FRPSRQHQWVFXOLQDU\DUWLVWVDUH
UHVSRQVLEOHIRUVNLOIXOO\SUHSDULQJPHDOVWKDWDUHDVSOHDVLQJWRWKHSDODWH
DVWRWKHH\H:.
,QWKLVVHQVHFXOLQDU\DUWVKRXOGQRWEHFRQIXVHGZLWKDUHODWHGWHUP
OLNH JDVWURQRP\ ZKLFK UHIHUV LQVWHDG WR WKH DUW RU VFLHQFH RI IRRG
HDWLQJ $OVR LW FDQ EH GHILQHG DV WKH VWXG\ RI IRRG DQG FXOWXUH ZLWK D
SDUWLFXODUIRFXVRQJRXUPHWFXLVLQH:.EE0:'E
+LVWRU\
:LWK WKLV FODULILFDWLRQ LQ PLQGKLVWRULFDOO\ WKHUH LV QR FOHDU
HYLGHQFH DV WR ZKHQ WKH SUDFWLFH RI FRRNLQJ IRRG ZDV ILUVW FRQFHLYHG
0RVWDQWKURSRORJLVWVEHOLHYHWKDWFRRNLQJILUHVEHJDQRQO\DERXW
\HDUVDJRZKHQKHDUWKVVWDUWHGDSSHDULQJ3K\ORJHQHWLFDQDO\VLVE\&KULV
2UJDQ&KDUOHV1XQQ =DULQ 0DFKDQGDDQG5LFKDUG:UDQJKDPVXJJHVWV
WKDW FRRNLQJ PD\ KDYH EHHQ LQYHQWHG DV IDU EDFN DV PLOOLRQ WR
PLOOLRQ\HDUVDJR2WKHUUHVHDUFKHUVEHOLHYHWKDWFRRNLQJZDVLQYHQWHGDV
ODWH DV RU \HDUV DJR (YLGHQFH RI ILUH LV LQFRQFOXVLYH DV
ZLOGILUHV VWDUWHG E\ OLJKWQLQJVWULNHV DUH VWLOO FRPPRQ LQ (DVW $IULFD DQG
RWKHUZLOGDUHDVDQGLWLVGLIILFXOWWRGHWHUPLQHZKHQILUHZDVILUVWXVHGIRU
&KDSWHU,QWURGXFWLRQ7KH3UDFWLFHRI&XOLQDU\$UW
FRRNLQJDVRSSRVHGWRMXVWEHLQJXVHGIRUZDUPWKRUIRUNHHSLQJSUHGDWRUV
DZD\:.D(3HQQLVL&2UJDQ
/DWHU IRRG KDV EHFRPH D SDUW RI PDWHULDO FXOWXUH DQG FXLVLQH LV
PXFK PRUH WKDQ D VXEVWDQFH )RRG LV HQULFKHG ZLWK FXOWXUDO
SV\FKRORJLFDO HPRWLRQDO DQG HYHQ UHOLJLRXV VLJQLILFDQFH ,Q WKH
VHYHQWHHQWKDQGHLJKWHHQWKFHQWXULHVIRRGZDVDFODVVLFPDUNHULQ(XURSH
+RZHYHULQWKHQLQHWHHQWKFHQWXU\FXLVLQHEHFDPHDGHILQLQJV\PERORI
QDWLRQDO LGHQWLW\ 7KH GLVFRYHU\ RI WKH 1HZ :RUOG UHSUHVHQWHG D PDMRU
WXUQLQJ SRLQW LQ WKH KLVWRU\ RI IRRG EHFDXVH RI WKH PRYHPHQW RI IRRGV
IURP DQG WR (XURSH VXFK DV SRWDWRHV WRPDWRHV FRUQ \DPV DQG EHDQV
)RRGLQ$PHULFDFRQVLVWHGRIWUDGLWLRQVWKDWZHUHDGDSWHGIURP(QJODQG
EXWXSXQWLOWKHHQGRIWKLVFHQWXU\WKHSUHVHQFHRIQHZLQJUHGLHQWVDORQJ
ZLWK WKH FRQWDFW EHWZHHQ GLYHUVH HWKQLF JURXSV LQIOXHQFHG
H[SHULPHQWDWLRQ:.D
,Q DGGLWLRQ LQGXVWULDOL]DWLRQ ZDV DOVR D WXUQLQJ SRLQW WKDW FKDQJHG
KRZIRRGDIIHFWHGWKHQDWLRQ'XULQJWKHSHULRGRILQGXVWULDOL]DWLRQIRRG
EHJDQ WR EH PDVV SURGXFHG PDVV PDUNHWHG DQG VWDQGDUGL]HG )DFWRULHV
SURFHVVHGSUHVHUYHGFDQQHGDQGSDFNDJHGD ZLGH YDULHW\RI IRRGVDQG
SURFHVVHG FHUHDOV TXLFNO\ EHFDPH D GHILQLQJ IHDWXUH RI WKH $PHULFDQ
EUHDNIDVW ,Q WKH WZHQWLHV IUHH]LQJ PHWKRGV DV ZHOO DV WKH HDUOLHVW
FDIHWHULDV DQG IDVW IRRG HVWDEOLVKPHQWV HPHUJHG 7KLV SRLQW LQ WLPH LV
ZKHQSURFHVVHGDQGQDWLRQDOO\GLVWULEXWHGIRRGVEHFDPHDKXJHSDUWRIWKH
QDWLRQ
VGLHW:.D
,Q WKH 8QLWHG 6WDWHV WKHUH KDYH DOVR EHHQ VHYHUDO FKDQJHV LQ
QXWULWLRQDO JXLGHOLQHV HYHQWXDOO\ OHDGLQJ XS WR WKH IRRG S\UDPLG ,Q
)RRG)RU<RXQJ&KLOGUHQ
DORQJZLWKLWVVHTXHOIRUDGXOWV
+RZWR
6HOHFW)RRGV
ZDVWKHILUVW86'$JXLGHWRJLYHVSHFLILFGLHWDU\JXLGHOLQHV
8SGDWHG LQ WKH
V WR WKHVH JXLGHV JDYH VKRSSLQJ VXJJHVWLRQV IRU
GLIIHUHQWVL]HG IDPLOLHV DORQJ ZLWK D 'HSUHVVLRQ (UD UHYLVLRQ ZKLFK
LQFOXGHG IRXU FRVW OHYHOV ,Q WKH 86'$ FUHDWHG WKH
%DVLF 6HYHQ
FKDUWWRPDNHVXUHWKDWSHRSOHJRWWKHUHFRPPHQGHGQXWULHQWV,WLQFOXGHG
WKH ILUVWHYHU 5HFRPPHQGHG 'DLO\ $OORZDQFHV IURP WKH 1DWLRQDO
$FDGHP\ RI 6FLHQFHV ,Q WKH
(VVHQWLDOV RI DQ $GHTXDWH 'LHW
EURXJKW UHFRPPHQGDWLRQV ZKLFK FXW VHYHQ GRZQ WR IRXU JURXSV WKDW
VFKRRO FKLOGUHQ ZRXOG OHDUQ DERXW IRU GHFDGHV ,Q D JXLGH FDOOHG
)RRG
ZDV SXEOLVKHG ZKLFK DGGUHVVHG WKH OLQN EHWZHHQ WRR PXFK RI
FHUWDLQIRRGVDQGFKURQLFGLVHDVHV7KLVSXEOLFDWLRQDOVRDGGHG
IDWVRLOV
DQG VZHHWV
WR WKH IRXU EDVLF IRRG JURXSV DQG FDXWLRQHG PRGHUDWLRQ ,Q
WKH IRRG S\UDPLG ZDV GHEXWHG 7KH 86'$ LQWURGXFHG WKLV ZKLFK
UHSUHVHQWHGSURSRUWLRQVRIIRRGVLQDEDODQFHGGLHW,QWKHS\UDPLG
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
JRWDPDNHRYHUDQGZDVUHQDPHG0\3\UDPLG/DVWO\LQWKH
3ODWH
DQGWKH0RRQ
WKHRU\FDPHDERXW:.D
,QJUHGLHQWVDQG7HFKQLTXHVLQ&XOLQDU\$UW
:LWK WKH GHILQLWLRQ DQG KLVWRU\ RI FXOLQDU\ DUW DV JLYHQ DERYH LQ
PLQGWKLV ERRN LV WR UHGHILQH WKH ILHOG LQ WHUPV RI LQJUHGLHQWV DQG
WHFKQLTXHVDVH[SODLQHGEHORZDQGVXPPDUL]HGLQ7DEOH
,QJUHGLHQWV
,QRUGHUWRFRRNIRRGVRQHQHHGVPDWHULDOVRUPRUHVSHFLILFDOO\LQWKH
FRQWH[W RI FXOLQDU\ DUW LQJUHGLHQWVDQG WKH WHUP LQJUHGLHQW LQ
DFFRUGDQFH WR WKH 0HUULDP:HEVWHU GLFWLRQDU\ UHIHUV WR VRPHWKLQJ WKDW
HQWHUV LQWR D FRPSRXQG RU LV D FRPSRQHQW SDUW RI DQ\ FRPELQDWLRQ RU
PL[WXUH0:'
,QWKHFRQWH[WRIFXOLQDU\DUWLQJUHGLHQWVFDQEHXQGHUVWRRGLQWKLV
ERRNLQUHJDUGWRDPROHFXOHVEPDWWHUVDQGFGLHWDQGQXWULWLRQMXVW
WRFLWHWKUHHH[DPSOHVDVH[SODLQHGEHORZ
0ROHFXOHV
&RRNLQJPDNHVJRRGXVHRIPROHFXOHVEHFDXVHLWVSURFHVVLQYROYHV
DPDQLSXODWLRQRIWKHFKHPLFDOSURSHUWLHVRIPROHFXOHV:.D
0ROHFXOHVLQLQJUHGLHQWVIRUFRRNLQJFDQFRPHLQDOOVKDSHVDQGVL]HV
DQG PDLQ H[DPSOHV LQFOXGH D SURWHLQV D FDUERK\GUDWHV D IDWV
DZDWHUDQGDYLWDPLQVDQGPLQHUDOV
D3URWHLQV
7KH ILUVW FKHPLFDO SURSHUW\ RI PROHFXOHV LQ FRRNLQJ LQYROYHV
SURWHLQV VLQFH HGLEOH DQLPDO PDWHULDO LQFOXGLQJ PXVFOH RIIDO PLON
HJJV DQG HJJ ZKLWHV FRQWDLQV VXEVWDQWLDO DPRXQWV RI SURWHLQ $OPRVW DOO
YHJHWDEOHPDWWHULQSDUWLFXODUOHJXPHVDQGVHHGVDOVRLQFOXGHVSURWHLQV
DOWKRXJK JHQHUDOO\ LQ VPDOOHU DPRXQWV 0XVKURRPV KDYH KLJK SURWHLQ
FRQWHQW $Q\ RI WKHVH PD\ EH VRXUFHV RI HVVHQWLDO DPLQR DFLGV :KHQ
SURWHLQVDUHKHDWHGWKH\EHFRPHGHQDWXUHGXQIROGHGDQGFKDQJHWH[WXUH
,QPDQ\FDVHVWKLVFDXVHVWKHVWUXFWXUHRIWKHPDWHULDOWREHFRPHVRIWHURU
PRUHIULDEOHPHDWEHFRPHVFRRNHGDQGLVPRUHIULDEOHDQGOHVVIOH[LEOH
,Q VRPH FDVHV SURWHLQV FDQ IRUP PRUH ULJLG VWUXFWXUHV VXFK DV WKH
FRDJXODWLRQRIDOEXPHQLQHJJZKLWHV7KHIRUPDWLRQRIDUHODWLYHO\ULJLG
EXW IOH[LEOH PDWUL[ IURP HJJ ZKLWH SURYLGHV DQ LPSRUWDQW FRPSRQHQW LQ
&KDSWHU,QWURGXFWLRQ7KH3UDFWLFHRI&XOLQDU\$UW
EDNLQJFDNHVDQGDOVRXQGHUSLQVPDQ\GHVVHUWVEDVHGRQPHULQJXH:.
D
E&DUERK\GUDWHV
7KH VHFRQG FKHPLFDO SURSHUW\ RI PROHFXOHV LQ FRRNLQJ LQYROYHV
FDUERK\GUDWHVZKLFKLQFOXGHWKHFRPPRQVXJDUVXFURVHWDEOHVXJDU
D GLVDFFKDULGH DQG VXFK VLPSOH VXJDUV DV JOXFRVH IURP WKH GLJHVWLRQ RI
WDEOH VXJDU DQG IUXFWRVH IURP IUXLW DQG VWDUFKHV IURP VRXUFHV VXFK DV
FHUHDO IORXU ULFH DUURZURRW DQG SRWDWR 7KH LQWHUDFWLRQ RI KHDW DQG
FDUERK\GUDWHLVFRPSOH[:.D
)RU H[DPSOH ORQJFKDLQ VXJDUV VXFK DV VWDUFK WHQG WR EUHDN GRZQ
LQWRVLPSOHUVXJDUVZKHQFRRNHGZKLOHVLPSOHVXJDUVFDQIRUPV\UXSV,I
VXJDUV DUH KHDWHG VR WKDW DOO ZDWHU RI FU\VWDOOLVDWLRQ LV GULYHQ RII WKHQ
FDUDPHOL]DWLRQ VWDUWV ZLWK WKH VXJDU XQGHUJRLQJ WKHUPDO GHFRPSRVLWLRQ
ZLWK WKH IRUPDWLRQ RI FDUERQ DQG RWKHU EUHDNGRZQ SURGXFWV SURGXFLQJ
FDUDPHO6LPLODUO\WKHKHDWLQJRIVXJDUVDQGSURWHLQVHOLFLWVWKH0DLOODUG
UHDFWLRQDEDVLFIODYRUHQKDQFLQJWHFKQLTXH:.D
F)DWV
7KHWKLUGFKHPLFDOSURSHUW\RIPROHFXOHVLQFRRNLQJLQYROYHVIDWV
ZKLFKLQFOXGHYHJHWDEOHRLOVDQGDQLPDOSURGXFWVVXFKDVEXWWHUDQGODUG
)DWVFDQUHDFKWHPSHUDWXUHVKLJKHUWKDQWKHERLOLQJSRLQWRIZDWHUDQGDUH
RIWHQ XVHGWRFRQGXFWKLJKKHDWWRRWKHULQJUHGLHQWVVXFK DVLQ IU\LQJRU
VDXWpLQJ:.D
G:DWHU
7KH IRXUWK FKHPLFDO SURSHUW\ RI PROHFXOHV LQ FRRNLQJ LQYROYHV
ZDWHUZKLFKLVIUHTXHQWO\SUHVHQWLQRWKHUOLTXLGVERWKDGGHGLQRUGHU
WRLPPHUVHWKHVXEVWDQFHVEHLQJFRRNHGW\SLFDOO\ ZDWHUVWRFNRUZLQH
DQG UHOHDVHG IURP WKH IRRGV WKHPVHOYHV /LTXLGV DUH VR LPSRUWDQW WR
FRRNLQJWKDWWKHQDPHRIWKHFRRNLQJPHWKRGXVHGLVRIWHQEDVHGRQKRZ
WKHOLTXLGLVFRPELQHGZLWKWKHIRRGDVLQVWHDPLQJVLPPHULQJERLOLQJ
EUDLVLQJ DQG EODQFKLQJ +HDWLQJ OLTXLG LQ DQ RSHQ FRQWDLQHU UHVXOWV LQ
UDSLGO\ LQFUHDVHG HYDSRUDWLRQ ZKLFK FRQFHQWUDWHV WKH UHPDLQLQJ IODYRU
DQG LQJUHGLHQWVWKLV LV D FULWLFDO FRPSRQHQW RI ERWK VWHZLQJ DQG VDXFH
PDNLQJ:.D
H9LWDPLQVDQG0LQHUDOV
$QG WKH ILIWK FKHPLFDO SURSHUW\ RI PROHFXOHV LQ FRRNLQJ LQYROYHV
YLWDPLQVDQGPLQHUDOV
,Q UHJDUG WR YLWDPLQV WKH\ DUH PDWHULDOV UHTXLUHG IRU QRUPDO
PHWDEROLVPEXWWKHERG\FDQQRWPDQXIDFWXUHLWVHOIDQGPXVWWKHUHIRUH
FRPHIURPVRLO9LWDPLQVFRPHIURPDQXPEHURIVRXUFHVLQFOXGLQJIUHVK
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
IUXLW DQG YHJHWDEOHV 9LWDPLQ & FDUURWV OLYHU 9LWDPLQ $ FHUHDO EUDQ
EUHDG OLYHU H % YLWDPLQV ILVK OLYHU RLO 9LWDPLQ ' DQG IUHVK JUHHQ
YHJHWDEOHV9LWDPLQ.:.D
$QG LQ UHJDUG WR PLQHUDOV WKH\ DUH HVVHQWLDO LQ VPDOO TXDQWLWLHV
LQFOXGLQJ LURQ FDOFLXP PDJQHVLXP DQG VXOSKXU DQG LQ YHU\ VPDOO
TXDQWLWLHVFRSSHU]LQFDQGVHOHQLXP:.D
+RZHYHU WKH PLFURQXWULHQWV PLQHUDOV DQG YLWDPLQV LQ IUXLW DQG
YHJHWDEOHVPD\EHGHVWUR\HGRUHOXWHGE\FRRNLQJ9LWDPLQ&LVHVSHFLDOO\
SURQH WR R[LGDWLRQ GXULQJ FRRNLQJ DQG PD\ EH FRPSOHWHO\ GHVWUR\HG E\
SURWUDFWHGFRRNLQJ:.D%%&
0DWWHUV
&RRNLQJ DOVR UHTXLUHV WKH XQGHUVWDQGLQJ RI WKH PDWWHUV IURP ZKLFK
LQJUHGLHQWVLQFRRNLQJDUHGHULYHG
)RU H[DPSOH PRVW LQJUHGLHQWV LQ FRRNLQJ DUH GHULYHG IURP OLYLQJ
RUJDQLVPV9HJHWDEOHVIUXLWVJUDLQVDQGQXWVDVZHOODVKHUEVDQGVSLFHV
FRPH IURP SODQWV ZKLOH PHDW HJJV DQG GDLU\ SURGXFWV FRPH IURP
DQLPDOV 0XVKURRPV DQG WKH \HDVW XVHG LQ EDNLQJ DUH NLQGV RI IXQJL
&RRNVDOVRXVH ZDWHUDQG PLQHUDOVVXFKDVVDOWDVVKRZQEHORZ:.
D
/LYLQJ2UJDQLVPV
3ODQWV
([YHJHWDEOHV
([IUXLWV
([JUDLQV
([QXWV
$QLPDOV
([PHDW
([HJJV
([GDLU\SURGXFWV
)XQJL
([\HDVW
([PXVKURRPV
1RQ/LYLQJ2UJDQLVPV
([ZDWHU
([PLQHUDOV
2IFRXUVHWKHUHFDQEHRWKHUFDWHJRULHVIRUH[DPSOHVFRRNVFDQDOVRXVH
ZLQHRUVSLULWV:.D
&KDSWHU,QWURGXFWLRQ7KH3UDFWLFHRI&XOLQDU\$UW
'LHWDQG1XWULWLRQ
$QG FRRNLQJ DOVR UHTXLUHV WKH XQGHUVWDQGLQJ RI GLHW DQG QXWULWLRQ LQ
LQJUHGLHQWVIRUFRRNLQJ
)RULQVWDQFH*HUPDQUHVHDUFKLQVKRZHGVLJQLILFDQWEHQHILWVLQ
UHGXFLQJ EUHDVW FDQFHU ULVN ZKHQ ODUJH DPRXQWV RI UDZ YHJHWDEOH PDWWHU
DUHLQFOXGHGLQWKHGLHW7KHDXWKRUVDWWULEXWHVRPHRIWKLVHIIHFWWRKHDW
ODELOH SK\WRQXWULHQWV 6XOIRUDSKDQH ZKLFK PD\ EH IRXQG LQ YHJHWDEOHV
VXFKDVEURFFROLKDVEHHQVKRZQWREHSURWHFWLYHDJDLQVWSURVWDWHFDQFHU
KRZHYHU PXFK RI LW LV GHVWUR\HG ZKHQ WKH YHJHWDEOH LV ERLOHG :.
D<-LQ
7HFKQLTXHV
%XW WKH VWXG\ RI LQJUHGLHQWV LQ FXOLQDU\ DUW E\ LWVHOI GRHV QRW WHOO XV
KRZ WKH\ DUH WR EH WUDQVIRUPHG LQWR IRRG ZKLFK WKHQ UHTXLUHV D JRRG
XQGHUVWDQGLQJRIWKHWHFKQLTXHVRIFRRNLQJDQGRWKHUUHODWHGPHWKRGV
7KH WHUP WHFKQLTXH LQ DFFRUGDQFH WR WKH 0HUULDP:HEVWHU
GLFWLRQDU\ UHIHUV WR D PHWKRG RI DFFRPSOLVKLQJ D GHVLUHG DLP 0:'
D
,Q WKH FRQWH[W RI FXOLQDU\ DUW WHFKQLTXHV FDQ EH XQGHUVWRRG LQ
UHJDUG WR GLIIHUHQW DLPV DQG JRRG H[DPSOHV DUH D KDUYHVWLQJ E
VODXJKWHULQJFFRRNLQJGSUHVHUYLQJDQGHSUHVHQWLQJDVH[SODLQHG
EHORZ
2IFRXUVHWKHUHFDQEHRWKHUWHFKQLTXHVWRROLNHSURGXFLQJVHUYLQJ
DQG VR RQ EXW WKH\ RYHUODS ZLWK WKH RQHV DERYH LQ DQ\ HYHQW WKH ILYH
H[DPSOHVKHUHDUHLOOXVWUDWLYHQRWH[KDXVWLYH
+DUYHVWLQJ
7KH ILUVW PHWKRG WREH LQWURGXFHG KHUH LQ WKH FRQWH[W RI FXOLQDU\ DUW
KDVWRGRZLWKKDUYHVWLQJ
7KHWHUPKDUYHVWLQJUHIHUVWRWKHSURFHVVRIJDWKHULQJPDWXUHFURSV
IURP WKH ILHOGV 5HDSLQJ LV WKH FXWWLQJ RI JUDLQ RU SXOVH IRU KDUYHVW
W\SLFDOO\XVLQJDVF\WKHVLFNOHRUUHDSHU7KHKDUYHVWPDUNVWKHHQGRIWKH
JURZLQJ VHDVRQ RU WKH JURZLQJ F\FOH IRU D SDUWLFXODU FURS DQG VRFLDO
LPSRUWDQFHRIWKLVHYHQWPDNHVLWWKHIRFXVRIVHDVRQDOFHOHEUDWLRQVVXFK
DV D KDUYHVW IHVWLYDO IRXQG LQ PDQ\ UHOLJLRQV 2Q VPDOOHU IDUPV ZLWK
PLQLPDO PHFKDQL]DWLRQ KDUYHVWLQJLVWKH PRVWODERULQWHQVLYHDFWLYLW\RI
WKH JURZLQJ VHDVRQ 2Q ODUJH PHFKDQL]HG IDUPV KDUYHVWLQJ XWLOL]HV WKH
PRVW H[SHQVLYH DQG VRSKLVWLFDWHG IDUP PDFKLQHU\ OLNH WKH FRPELQH
KDUYHVWHU:.E
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
*HQHUDOO\VSHDNLQJKDUYHVWLQJLQFOXGHVDQLPPHGLDWHSRVWKDUYHVW
KDQGOLQJ DOO RI WKH DFWLRQV WDNHQ LPPHGLDWHO\ DIWHU UHPRYLQJ WKH FURS
FRROLQJ VRUWLQJ FOHDQLQJ SDFNLQJXS WR WKH SRLQW RI IXUWKHU RQIDUP
SURFHVVLQJ RU VKLSSLQJ WR WKH ZKROHVDOH RU FRQVXPHU PDUNHW :.
E
6ODXJKWHULQJ
7KHVHFRQGPHWKRGWREHLQWURGXFHGKHUHLQWKHFRQWH[WRIFXOLQDU\DUW
KDVWRGRZLWKVODXJKWHULQJ
7KHWHUPVODXJKWHULQJKHUHUHIHUVWRWKHNLOOLQJRIDQLPDOVXVXDOO\
IRU IRRG &RPPRQO\ LW UHIHUV WR NLOOLQJ RI GRPHVWLF OLYHVWRFN WDPH
DQLPDOV:.F
,QJHQHUDOWKHDQLPDOVVODXJKWHUHGIRUIRRGDUHFDWWOHIRUEHHIDQG
YHDO ZDWHUEXIIDORVKHHSIRUODPEDQG PXWWRQ JRDWV SLJVIRUSRUN
KRUVHVIRUKRUVHPHDWDQGIRZOODUJHO\FKLFNHQVWXUNH\VDQGGXFNVDQG
LQFUHDVLQJO\ ILVK IURP WKH DTXDFXOWXUH LQGXVWU\ ILVK IDUPLQJ :.
F
&RRNLQJ
7KHWKLUGPHWKRGWREHLQWURGXFHGKHUHLQWKHFRQWH[WRIFXOLQDU\DUW
KDVWRGRZLWKFRRNLQJ
$OWRXJKWKHUHDUHYHU\PDQ\PHWKRGVRIFRRNLQJPRVWKDYHEHHQ
NQRZQ VLQFH DQWLTXLW\ 7KHVH LQFOXGH EDNLQJ URDVWLQJ IU\LQJ JULOOLQJ
EDUEHFXLQJ VPRNLQJ ERLOLQJ VWHDPLQJ DQG EUDLVLQJ $ PRUH UHFHQW
LQQRYDWLRQ LV PLFURZDYLQJ 9DULRXV PHWKRGV XVH GLIIHULQJ OHYHOV RI KHDW
DQGPRLVWXUHDQGYDU\LQFRRNLQJWLPH7KHPHWKRGFKRVHQJUHDWO\DIIHFWV
WKH HQG UHVXOW 6RPH IRRGV DUH PRUH DSSURSULDWH WR VRPH PHWKRGV WKDQ
RWKHUV:.D
3UHVHUYLQJ
7KHIRXUWKPHWKRGWREHLQWURGXFHGKHUHLQWKHFRQWH[WRIFXOLQDU\DUW
KDVWRGRZLWKSUHVHUYLQJ
7KHWHUPSUHVHUYLQJKHUHUHIHUVWRIRRGSUHVHUYDWLRQWKDWLVWKH
SURFHVVRIWUHDWLQJDQGKDQGOLQJIRRGWRVWRSRUVORZGRZQVSRLODJHORVV
RI TXDOLW\ HGLELOLW\ RU QXWULWLRQDO YDOXH DQG WKXV DOORZ IRU ORQJHU
VWRUDJH:.G
8VXDOO\ IRRG SUHVHUYDWLRQ LQYROYHV SUHYHQWLQJ WKH JURZWK RI
EDFWHULD \HDVWV IXQJL DQG RWKHU PLFURRUJDQLVPV DOWKRXJK VRPH
PHWKRGV ZRUN E\ LQWURGXFLQJ EHQLJQ EDFWHULD RU IXQJL WR WKH IRRG DV
ZHOO DV UHWDUGLQJ WKH R[LGDWLRQ RI IDWV ZKLFK FDXVH UDQFLGLW\ )RRG
&KDSWHU,QWURGXFWLRQ7KH3UDFWLFHRI&XOLQDU\$UW
*HQHUDO&KDUDFWHULVWLFVRI&XOLQDU\$UW
7KLV LQWURGXFWLRQ WR LQJUHGLHQWV DQG WHFKQLTXHV LQ FXOLQDU\ DUW
WKXVUHYHDOVLWVPRUHPXOWLIDFHWHGQDWXUH
7R LOOXVWUDWH WKLV PRUH PXOWLIDFHWHG QDWXUH IXUWKHU FRQVLGHU VRPH
JHQHUDOFKDUDFWHULVWLFVRIFXOLQDU\DUWEHORZDVVXPPDUL]HGLQ7DEOH
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
$UWDQG6FLHQFH
7KHILUVWJHQHUDOFKDUDFWHULVWLFRIFXOLQDU\DUWWREHLOOXVWUDWHGKHUHLQ
UHJDUG WR LWV PRUH PXOWLIDFHWHG QDWXUH FRQFHUQV WKH GXDOLW\ RI DUW DQG
VFLHQFHLQWKHILHOG
2Q WKH RQH KDQG WKH ILHOG RI FXOLQDU\ DUW FDQ EH XQGHUVWRRG DV D
VFLHQFH WKDW LV VFLHQFH RI IRRG RU VLPSO\ IRRG VFLHQFH ZKLFK LV D
VWXG\ FRQFHUQHG ZLWK DOO WHFKQLFDO DVSHFWV RI IRRGV EHJLQQLQJ ZLWK
KDUYHVWLQJRUVODXJKWHULQJDQGHQGLQJZLWKLWVFRRNLQJDQGFRQVXPSWLRQ
DQLGHRORJ\FRPPRQO\UHIHUUHGWRDV
IURPILHOGWRIRUN
,WLVFRQVLGHUHG
RQHRIWKHOLIHVFLHQFHVDQGLVXVXDOO\FRQVLGHUHGGLVWLQFWIURPWKHILHOGRI
QXWULWLRQ:.I
2QWKHRWKHUKDQGWKHILHOGRIFXOLQDU\DUWFDQDOVREHXQGHUVWRRGDV
DQDUWDIWHUDOOWKHUHLVWKHZRUGDUWLQWKHWHUPFXOLQDU\DUWLQWKHILUVW
SODFH%XWZKDWDUWLVVXSSRVHGWRPHDQLVFRPSOLFDWHGHQRXJKVLQFHDV
ZDV DOUHDG\ GLVFXVVHG LQ RQH RI P\ HDULOHU ERRNV WLWOHG 7KH )XWXUH RI
$HVWKHWLF([SHULHQFH5D\PRQG:LOOLDPVRQFHZDUQHG
XVWKDWKRZDUWLVWREHGHILQHGYDULHVIURPRQHKLVWRULFDOHUDWRDQRWKHU
3 %DRIX &K - :ROII $QG WKLV GHEDWH LV LPSRUWDQW
HVSHFLDOO\WKRXJKQRWH[FOXVLYHO\LQWKHFRQWH[WRIIRRGSUHVHQWDWLRQ
,Q IDFW WKLV ERRN LV WKH ODWHVW DGGLWLRQ WR P\ GLIIHUHQW ZRUNV RQ WKH
DUWVDVVKRZQE\7KH)XWXUHRI$HVWKHWLF([SHULHQFHRQDHVWKHWLFV
7KH)XWXUHRI3RVW+XPDQ0DUWLDO$UWVRQPDUWLDODUWV7KH)XWXUH
RI 3RVW+XPDQ /LWHUDWXUH RQ OLWHUDU\ DUW 7KH )XWXUH RI 3RVW
+XPDQ$UFKLWHFWXUHRQYLVXDODUWVDQG7KH)XWXUHRI3RVW+XPDQ
3HUIRUPLQJ$UWVRQSHUIRUPLQJDUWV
6XE)LHOGV
7KHVHFRQGJHQHUDOFKDUDFWHULVWLFRIFXOLQDU\DUWWREHLOOXVWUDWHGKHUH
LQUHJDUGWRLWVPRUHPXOWLIDFHWHGQDWXUHFRQFHUQVLWVGLIIHUHQWVXEILHOGV
*RRGH[DPSOHVRIGLIIHUHQWVXEILHOGVLQWKHGLVFLSOLQHRIFXOLQDU\DUW
LQFOXGHWKHIROORZLQJ:.I
)RRG 6DIHW\WKH FDXVHV SUHYHQWLRQ DQG FRPPXQLFDWLRQ GHDOLQJ
ZLWKIRRGERUQHLOOQHVV
)RRG 0LFURELRORJ\WKH SRVLWLYH DQG QHJDWLYH LQWHUDFWLRQV
EHWZHHQPLFURRUJDQLVPVDQGIRRGV
)RRG 3UHVHUYDWLRQWKH FDXVHV DQG SUHYHQWLRQ RI TXDOLW\
GHJUDGDWLRQ
&KDSWHU,QWURGXFWLRQ7KH3UDFWLFHRI&XOLQDU\$UW
&DUHHUV
$QG WKH WKLUG JHQHUDO FKDUDFWHULVWLF RI FXOLQDU\ DUW WR EH LOOXVWUDWHG
KHUHLQUHJDUGWRLWVPRUHPXOWLIDFHWHGQDWXUHFRQFHUQVFDUHHUVLQFXOLQDU\
DUW
+HUHDIWHU LV DQ LOOXVWUDWLYH OLVW RI WKH ZLGH YDULHW\ RI RFFXSDWLRQV RU
FDUHHUVDYDLODEOHWRWKRVHLQWHUHVWHGLQFXOLQDU\DUW:.
&RQVXOWLQJ DQG 'HVLJQ 6SHFLDOLVWV:RUN ZLWK UHVWDXUDQW RZQHUV
LQ GHYHORSLQJ PHQXV WKH OD\RXW DQG GHVLJQ RI GLQLQJ URRPV DQG
VHUYLFHSURWRFROV
'LQLQJ 5RRP 6HUYLFH:RUN WR QDQDJH D UHVWDXUDQW FDIHWHULDV
FOXEV HWF 'LSORPDV DQG GHJUHH SURJUDPV DUH RIIHUHG LQ UHVWDXUDQW
PDQDJHPHQWE\FROOHJHVDURXQGWKHZRUOG
)RRG DQG %HYHUDJH &RQWUROOHU:RUN WR SXUFKDVH DQG VRXUFH
LQJUHGLHQWV LQ ODUJH KRWHOV DV ZHOO DV PDQDJH WKH VWRUHV DQG VWRFN
FRQWURO
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
(QWUHSUHQHXUVKLS:RUNWRGHHSHQDQGLQYHVWLQEXVLQHVVHVVXFK
DV EDNHULHV UHVWDXUDQWV RU VSHFLDOW\ IRRGV VXFK DV FKRFRODWHV
FKHHVHHWF
)RRG DQG %HYHUDJH 0DQDJHUV:RUN WR PDQDJH DOO IRRG DQG
EHYHUDJHRXWOHWVLQKRWHOVDQGRWKHUODUJHHVWDEOLVKPHQWV
)RRG 6W\OLVWV DQG 3KRWRJUDSKHUV:RUN ZLWK PDJD]LQHV ERRNV
FDWDORJVDQGRWKHUPHGLDWRPDNHIRRGYLVXDOO\DSSHDOLQJ
)RRG :ULWHUV DQG )RRG &ULWLFV:RUN WR FRPPXQLFDWH ZLWK WKH
SXEOLF RQ IRRG WUHQGV FKHIV DQG UHVWDXUDQWV WKRXJK QHZVSDSHUV
PDJD]LQHV EORJV DQG ERRNV 1RWDEOHV LQ WKLV ILHOG LQFOXGH -XOLD
&KLOG&UDLJ&ODLERUQHDQG-DPHV%HDUG
5HVHDUFK DQG 'HYHORSPHQW .LWFKHQV:RUN WR GHYHORS QHZ
SURGXFWV IRU FRPPHUFLDO PDQXIDFWXUHUV DQG PD\ DOVR ZRUN LQ WHVW
NLWFKHQVIRUSXEOLFDWLRQVUHVWDXUDQWFKDLQVJURFHU\FKDLQVRURWKHUV
6DOHV:RUN WR LQWURGXFH FKHIV DQG EXVLQHVV RZQHUV WR QHZ
SURGXFWVDQGHTXLSPHQWUHOHYDQWWRIRRGSURGXFWLRQDQGVHUYLFH
,QVWUXFWRUV:RUNWRWHDFKDVSHFWVRIFXOLQDU\DUWVLQKLJKVFKRRO
YRFDWLRQDOVFKRROVFROOHJHVUHFUHDWLRQDOSURJUDPVDQGIRUVSHFLDOW\
EXVLQHVVHV IRU H[DPSOH WKH SURIHVVLRQDO DQG UHFUHDWLRQDO FRXUVHV LQ
EDNLQJDW.LQJ$UWKXU)ORXU
6XUHO\WKHUHFDQEHRWKHUH[DPSOHVVRWKHOLVWDERYHLVQRWH[KDXVWLYHEXW
RQO\LOOXVWUDWLYHIRUWKHSXUSRVHDWKDQG
7KH7KHRUHWLFDO'HEDWH
7KHVHPRUHPXOWLIDFHWHGFKDUDFWHULVWLFVRIFXOLQDU\DUWWRJHWKHUZLWK
WKHLQWURGXFWLRQWRLQJUHGLHQWVDQGWHFKQLTXHVWKHQOHDGXVWRDPRUH
LPSRUWDQWTXHVWLRQFRQFHUQLQJWKHWKHRUHWLFDOGHEDWHRQWKHYHU\QDWXUHRI
FXOLQDU\DUWLWVHOI,QGHHGWKLVWKHRUHWLFDOGHEDWHFDQDOVRVD\PXFKDERXW
WKHVWXG\RIFXOLQDU\DUWDVDGLVFLSOLQHRYHUWLPH
$OWKRXJK WKHUH FDQ EH PDQ\ GLIIHUHQW WKHRUHWLFDO DSSURDFKHV LQ WKH
GHEDWHWKHUHDUHILYHPDLQRQHVWREHVXPPDUL]HGKHUHDIWHUDQGWKH\FDQ
EHFDOOHGLQWKHDEVHQFHRIEHWWHUZRUGVQDPHO\DWKHPHQWDODUJXPHQW
E WKH QDWXUDO DUJXPHQW F WKH VRFLHWDO DUJXPHQW G WKH FXOWXUDO
DUJXPHQW DQG H WKH LQTXLVLWLYH DUJXPHQW ZKLFK LV P\ RULJLQDO
FRQWULEXWLRQWRWKHGHEDWHWREHHODEURDWHGKHUHDIWHUUHVSHFWLYHO\
/HVW PLVXQGHUVWDQGLQJ RFFXUV WKUHH FODULILFDWLRQV VKRXOG EH PDGH
KHUHDVWKLVLVVRPHWKLQJWKDW,UHJXODUO\HPSKDVL]HLQP\SUHYLRXVERRNV
ZKHQHYHUDWKHRUHWLFDOGHEDWHLVVXPPDUL]HGIRUDWRSLFDOPRVWYHUEDWLP
&KDSWHU,QWURGXFWLRQ7KH3UDFWLFHRI&XOLQDU\$UW
)LUVWO\WKHUHFDQEHRWKHUDUJXPHQWVEHVLGHVWKHILUVWIRXUKHUHWKDWLV
WKH PHQWDO WKH QDWXUDO WKH VRFLHWDO DQG WKH FXOWXUDO DUJXPHQWV
DVLQGLFDWHGDERYH7KHDGYDQWDJHWRVHOHFWWKHVHIRXUKHUHKDVWRGRZLWK
WKHLU LOOXVWUDWLYH UHSUHVHQWDWLRQ RI WKH GLYHUVH WKHRULHV LQ WKH OLWHUDWXUH
ZKLFKDUHGHHPHGVXIILFLHQWIRUWKHSXUSRVHDWKDQGLQWKLVERRN
6HFRQGO\ WKH H[DPSOHV WKHRULHV JLYHQ WR LOOXVWUDWH HDFK DUJXPHQW
DUH DOVR VXSSRVHG WR EH LOOXVWUDWLYH QRW H[KDXVWLYH $IWHU DOO WKH
DUJXPHQWV ZLOO EH DGGUHVVHG DJDLQ LQ WKH UHVW RI WKH ERRN ZLWK RWKHU
H[DPSOHVWKHRULHVWREHLQWURGXFHG
$QG WKLUGO\ WKH IRXU DUJXPHQWV DUH QRW QHFHVVDULO\ PXWXDOO\
H[FOXVLYH )RU LQVWDQFH WKRVH ZKR DGYRFDWH WKH PHQWDO DUJXPHQW FDQ
DOVR FRQVLGHU WKH FXOWXUDO DUJXPHQW DOWKRXJK WKH\ GR QRW IRFXV RQ WKH
ODWWHU
$QG WKH UHYHUVH LV DOVR WUXH LQ WKDW WKRVH ZKR PDNH WKH FXOWXUDO
DUJXPHQWFDQDOVRFRQVLGHUWKH PHQWDODUJXPHQWDOWKRXJKWKH\GRQRW
IRFXVRQWKHODWWHU
,QRWKHUZRUGVWKHLUGLVDJUHHPHQWLVRIWHQRQHLQGHJUHHQRWLQNLQG
7KH0HQWDO$UJXPHQW
:LWK WKHVH WKUHH FODULILFDWLRQV LQ PLQGWKH ILUVW PDMRU WKHRUHWLFDO
DSSURDFK LV FDOOHG LQ WKH DEVHQFH RI EHWWHU ZRUGV WKH PHQWDO DUJXPHQW
ZKLFK IRFXVHV UHODWLYHO\ VSHDNLQJ RI FRXUVH PRUH RQ WKH ELRORJLFDO DQG
SV\FKRORJLFDODVSHFWVRIFXOLQDU\DUWV
7KXV WKH ZRUG PHQWDO LQ WKH WLWOH RI WKH DUJXPHQW LV VXJJHVWLYH
EHFDXVH LW UHIHUV WR WKH IRFXV RQ WKH SK\VLRORJLFDO ELRORJLFDO DQG
SV\FKRORJLFDODVSHFWVRIFXOLQDU\DUWVVRXQGHUVWRRG
%XW WKH PHQWDO DUJXPHQW KDV GLIIHUHQW LVVXHV RI FRQFHUQ DQG
GLIIHUHQW GHIHQGHUV RI WKH DUJXPHQW RIIHU WKHLU RZQ GLVWLQFWLYH VWDQGV RQ
WKHLVVXHVGHSHQGLQJRQWKHLURZQLQWHUHVWV
)RULOOXVWUDWLRQFRQVLGHUWZRPDMRUYHUVLRQVRIWKHPHQWDODUJXPHQW
QDPHO\DDSKURGLVLDFVDQGVH[XDOLW\DQGEFRRNLQJDQGKHDOWKWREH
DGGUHVVHGEHORZLQWKDWRUGHU
$SKURGLVLDFVDQG6H[XDOLW\
7KHILUVWYHUVLRQRIWKHPHQWDODUJXPHQWKDVWRGRZLWKDSKURGLVLDFV
DQGVH[XDOLW\LQWKHFRQWH[WRILQJUHGLHQWVLQWKHVWXG\RIFXOLQDU\DUW
7KH WHUP DSKURGLVLDF UHIHUV WR D VXEVWDQFH WKDW LQFUHDVHV VH[XDO
GHVLUH 7KH QDPH FRPHV IURP $SKURGLWH WKH *UHHN JRGGHVV RI VH[XDOLW\
DQGORYH7KURXJKRXWKLVWRU\PDQ\IRRGVGULQNVDQGEHKDYLRUVKDYHKDG
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
&KDSWHU,QWURGXFWLRQ7KH3UDFWLFHRI&XOLQDU\$UW
+RZHYHU IRU WKH FULWLFV WKLV VWXG\ RI FRRNLQJ DQG KHDOWK KDV VRPH
PDMRUSUREOHPV&RQVLGHUIRULOOXVWUDWLRQDIHZH[DPSOHVEHORZ
)LUVWO\RQH PDLQFULWLFLVPRIWKHVWXG\RIFRRNLQJDQGKHDOWKLVWKDW
WKHFODLPVLQWKHUHVHDUFKZRUNVDUHFRQWURYHUVLDO
)RULQVWDQFHDFFRUGLQJWRWKH)RRGDQG'UXJ$GPLQLVWUDWLRQRIWKH
8QLWHG6WDWHVKHDOWKEHQHILWVFODLPHGE\UDZPLONDGYRFDWHVGRQRWH[LVW
7KHVPDOOTXDQWLWLHVRIDQWLERGLHVLQPLONDUHQRWDEVRUEHGLQWKHKXPDQ
LQWHVWLQDO WUDFW
VD\V %DUEDUD ,QJKDP 3K' DVVRFLDWH SURIHVVRU DQG
H[WHQVLRQIRRGVFLHQWLVWDWWKH8QLYHUVLW\RI:LVFRQVLQ0DGLVRQ
7KHUHLV
QRVFLHQWLILFHYLGHQFHWKDWUDZPLONFRQWDLQVDQDQWLDUWKULWLVIDFWRURUWKDW
LWHQKDQFHVUHVLVWDQFHWRRWKHUGLVHDVHV
:.D/%UHQ
$QG VHFRQGO\ DQRWKHU PDLQ FULWLFLVP RI WKH VWXG\ RI FRRNLQJ DQG
KHDOWK LV WKDW WKHUH DUH DOWHUQDWLYHV WR WUDGLWLRQDO XQKHDOWK\ PHWKRGV RI
FRRNLQJ
)RULQVWDQFHPDQ\IDVWIRRGFKDLQVKDYHQRZVZLWFKHGWRWUDQVIDW
IUHHDOWHUQDWLYHVIRUGHHSIU\LQJ:.D061%&
7KH1DWXUDO$UJXPHQW
7KH VHFRQG WKHRUHWLFDO DSSURDFK LV FDOOHG LQ WKH DEVHQFH RI EHWWHU
ZRUGVWKHQDWXUDODUJXPHQWZKLFKIRFXVHVUHODWLYHO\VSHDNLQJRIFRXUVH
PRUH RQ WKH QDWXUDO DVSHFWV RI FXOLQDU\ DUWV HVSHFLDOO\ LQ UHODWLRQ WR WKH
VWDWHRIQDWXUH
7KHUHIRUH WKH ZRUG QDWXUDO LQ WKH WLWOH RI WKH DUJXPHQW LV
VXJJHVWLYHEHFDXVHLWUHIHUVWRWKHIRFXVRQWKHQDWXUDODVSHFWVRIFXOLQDU\
DUWVVRXQGHUVWRRG
/LNHWKH PHQWDODUJXPHQWWKHQDWXUDODUJXPHQW KDVGLIIHUHQWLVVXHV
RI FRQFHUQ DQG GLIIHUHQW GHIHQGHUV RI WKH DUJXPHQW RIIHU WKHLU RZQ
GLVWLQFWLYHVWDQGVRQWKHLVVXHVGHSHQGLQJRQWKHLURZQLQWHUHVWV
)RULOOXVWUDWLRQFRQVLGHUWZRPDMRUYHUVLRQVRIWKHQDWXUDODUJXPHQW
QDPHO\DIRRGFKDLQVDQGHFRORJLFDOS\UDPLGDQGEVSDFHIRRGDQGWKH
(DUWKVRUELWWREHVXPPDUL]HGEHORZLQWKDWRUGHU
)RRG&KDLQVDQG(FRORJLFDO3\UDPLG
7KH ILUVW YHUVLRQ RI WKH QDWXUDO DUJXPHQW KDV WR GR ZLWK IRRG FKDLQV
DQG HFRORJLFDO S\UDPLG LQ WKH FRQWH[W RI LQJUHGLHQWV LQ WKH VWXG\ RI
FXOLQDU\DUW
7KHWHUPIRRGFKDLQUHIHUVWRDOLQHDUVHTXHQFHRIOLQNVLQDIRRG
ZHE VWDUWLQJ IURP D WURSKLF VSHFLHV WKDW HDWV QR RWKHU VSHFLHV LQ WKH ZHE
DQG HQGV DW D WURSKLF VSHFLHV WKDW LV HDWHQ E\ QR RWKHU VSHFLHV LQ WKH
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
ZHE)RRGFKDLQV ZHUHILUVWLQWURGXFHGLQDERRNSXEOLVKHGLQE\
&KDUOHV(OWRQ:.K6$OOHVLQD)(JHUWRQ
$JUDSKLFDOUHSUHVHQWDWLRQRIIRRGFKDLQVFDQEHPDGHLQWHUPVRIDQ
HFRORJLFDO S\UDPLG DOVR WURSKLF S\UDPLG RU HQHUJ\ S\UDPLG VR DV WR
VKRZWKHELRPDVVRUELRPDVVSURGXFWLYLW\DWHDFKWURSKLFOHYHOLQDJLYHQ
HFRV\VWHP %LRPDVV LV WKH DPRXQW RI OLYLQJRU RUJDQLF PDWWHU SUHVHQW LQ
DQRUJDQLVP%LRPDVVS\UDPLGVVKRZKRZPXFKELRPDVVLVSUHVHQWLQWKH
RUJDQLVPV DW HDFK WURSKLF OHYHO ZKLOH SURGXFWLYLW\ S\UDPLGV VKRZ WKH
SURGXFWLRQRUWXUQRYHULQELRPDVV:.L
,QWKLVZD\HFRORJLFDOS\UDPLGVEHJLQZLWKSURGXFHUVRQWKHERWWRP
VXFK DV SODQWV DQG SURFHHG WKURXJK WKH YDULRXV WURSKLF OHYHOV VXFK DV
KHUELYRUHV WKDW HDW SODQWV WKHQ FDUQLYRUHV WKDW HDW KHUELYRUHV WKHQ
FDUQLYRUHV WKDW HDW WKRVH FDUQLYRUHV DQG VR RQ 7KH KLJKHVW OHYHO LV WKH
WRSRIWKHIRRGFKDLQ:.L
+RZHYHU IRU WKH FULWLFV WKLV VWXG\ RI IRRG FKDLQV DQG HFRORJLFDO
S\UDPLG KDV VRPH PDMRU SUREOHPV &RQVLGHU IRU LOOXVWUDWLRQ D IHZ
H[DPSOHVEHORZ
)LUVWO\RQHPDLQFULWLFLVPRIWKHVWXG\RIIRRGFKDLQVDQGHFRORJLFDO
S\UDPLGLVWKDWELRPDVVS\UDPLGVFDQEHPLVOHDGLQJ
)RU LQVWDQFH IRU WKH FULWLFV RQH SUREOHP ZLWK ELRPDVV S\UDPLGV LV
WKDWWKH\FDQPDNHDWURSKLFOHYHOORRNOLNHLWFRQWDLQVPRUHHQHUJ\WKDQLW
DFWXDOO\ GRHV )RU H[DPSOH DOO ELUGV KDYH EHDNV DQG VNHOHWRQV ZKLFK
GHVSLWHWDNLQJXSPDVVDUHQRWHDWHQE\WKHQH[WWURSKLFOHYHO,QDS\UDPLG
RIELRPDVVWKHVNHOHWRQVDQGEHDNVZRXOGVWLOOEHTXDQWLILHGHYHQWKRXJK
WKH\GRQRWFRQWULEXWHWRWKHRYHUDOOIORZRIHQHUJ\:.L
$QGVHFRQGO\DQRWKHUPDLQFULWLFLVPRIWKHVWXG\RIIRRGFKDLQVDQG
HFRORJLFDO S\UDPLG LV WKDW WKH GHVLJQDWLRQ RI RUJDQLVPV LQ D S\UDPLG RI
SURGXFWLYLW\FDQEHDUELWUDU\
)RULQVWDQFHIRUWKHFULWLFVWKHUHLVWKHGLIILFXOW\RIDVVLJQLQJWKH
RUJDQLVPV WR D VSHFLILF WURSKLF OHYHO DQG LQ UHJDUG WR WKH RUJDQLVP LQ
WKH IRRG FKDLQV WKHUH LV WKH SUREOHP RI DVVLJQLQJ WKH GHFRPSRVHUV DQG
GHWULWLYRUHVWRDSDUWLFXODUWURSKLFOHYHO:.L
6SDFH)RRGDQGWKH(DUWKV2UELW
$QGWKHVHFRQGYHUVLRQRIWKHQDWXUDODUJXPHQWKDVWRGRZLWKVSDFH
IRRG DQG WKH (DUWKV RUELW LQ WKH FRQWH[W RI WHFKQLTXHV LQ WKH VWXG\ RI
FXOLQDU\DUW
7KHWHUPVSDFHIRRGUHIHUVWRIRRGSURGXFWVVSHFLDOO\FUHDWHGDQG
SURFHVVHG IRU FRQVXPSWLRQ E\ DVWURQDXWV LQ RXWHU VSDFH 7KH IRRG KDV
VSHFLILF UHTXLUHPHQWV RI SURYLGLQJ EDODQFHG QXWULWLRQ IRU WKH KHDOWK RI
LQGLYLGXDOV ZRUNLQJLQVSDFH ZKLOHEHLQJHDV\DQGVDIHWRVWRUHSUHSDUH
&KDSWHU,QWURGXFWLRQ7KH3UDFWLFHRI&XOLQDU\$UW
DQG FRQVXPH LQ WKH PDFKLQHU\ ILOOHG ORZ JUDYLW\ HQYLURQPHQWV RI
FRQWHPSRUDU\PDQQHGVSDFHFUDIW:.QQ
,QJHQHUDOSDFNDJLQJIRUVSDFHIRRGVHUYHVWKHSULPDU\SXUSRVHVRI
SUHVHUYLQJDQGFRQWDLQLQJWKHIRRG7KHSDFNDJLQJKRZHYHUPXVWDOVREH
OLJKWZHLJKWHDV\WRGLVSRVHDQGXVHIXOLQWKHSUHSDUDWLRQRIWKHIRRGIRU
FRQVXPSWLRQ7KHSDFNDJLQJDOVRLQFOXGHVDEDUFRGHGODEHOZKLFKDOORZV
IRU WKH WUDFNLQJ RI DQ DVWURQDXW
V GLHW 7KH ODEHOV DOVR VSHFLI\ WKH IRRG
V
SUHSDUDWLRQ LQVWUXFWLRQV :. QQ 9 .ORHULV & %RXUODQG
+RZHYHU IRU WKH FULWLFV WKLV VWXG\ RI VSDFH IRRG KDV VRPH PDMRU
SUREOHPV&RQVLGHUIRULOOXVWUDWLRQDIHZH[DPSOHVEHORZ
)LUVWO\ RQH PDLQ FULWLFLVP RI WKH VWXG\ RI VSDFH IRRG LV WKDW LW LV
WHFKQRORJLFDOO\YHU\FKDOOHQJLQJ
)RU LQVWDQFH GHVLJQLQJ IRRG IRU FRQVXPSWLRQ LQ VSDFH LV GLIILFXOW
)RRGVPXVWPHHWDQXPEHURIFULWHULDWREHFRQVLGHUHGILWIRUVSDFHILUVW
WKHIRRGPXVWEHQXWULWLRXVHDVLO\GLJHVWLEOHDQGSDODWDEOH6HFRQGWKH
IRRG PXVW EH HQJLQHHUHG IRU FRQVXPSWLRQ LQ D ]HUR JUDYLW\
HQYLURQPHQW)LQDOO\WKH\VKRXOGVWRUHZHOORSHQHDVLO\DQGOHDYHOLWWOH
ZDVWHEHKLQG:.QQ
$QG VHFRQGO\ DQRWKHU PDLQ FULWLFLVP RI WKH VWXG\ RI VSDFH IRRG LV
WKDWRQO\DIHZSRZHUIXOFRXQWULHVFDQSURGXFHVSDFHIRRG
)RULQVWDQFHIRUWKHFULWLFVDVRIRQO\DIHZSRZHUIXOFRXQWULHV
OLNH WKH 86 5XVVLD DQG &KLQD KDYH WKH WHFKQRORJ\ PRQH\ DQG
SROLWLFDOZLOOWRHQJDJHLQPDQQHGVSDFHH[SORUDWLRQDQGPDNHVSDFHIRRG
7KH6RFLHWDO$UJXPHQW
7KH WKLUG WKHRUHWLFDO DSSURDFK LV FDOOHG LQ WKH DEVHQFH RI EHWWHU
ZRUGVWKHVRFLHWDODUJXPHQWZKLFKIRFXVHVUHODWLYHO\VSHDNLQJRIFRXUVH
PRUH RQ WKH VRFLHWDO DVSHFWV RI FXOLQDU\ DUW HJ RUJDQL]DWLRQDO
LQVWLWXWLRQDOVWUXFWXUDODQGWHFKQRORJLFDOLVVXHV
,Q WKLV VHQVH WKH ZRUG VRFLHWDO LQ WKH WLWOH RI WKH DUJXPHQW LV
VXJJHVWLYH EHFDXVH LW UHIHUV WR WKH VRFLHWDO DVSHFWV RI FXOLQDU\ DUW VR
XQGHUVWRRG
/LNH WKH PHQWDO DQG QDWXUDO DUJXPHQWVWKH VRFLHWDO DUJXPHQW KDV
GLIIHUHQWLVVXHVRIFRQFHUQDQGGLIIHUHQWGHIHQGHUVRIWKHDUJXPHQWRIIHU
WKHLU RZQ GLVWLQFWLYH VWDQGV RQ WKH LVVXHV GHSHQGLQJ RQ WKHLU RZQ
LQWHUHVWV
)RULOOXVWUDWLRQFRQVLGHUWZRPDMRUYHUVLRQVRIWKHVRFLHWDODUJXPHQW
QDPHO\D IRRGVHFXULW\DQGGLFWDWRUVKLSDQGEDQLPDOVODXJKWHUDQG
WKHODZWREHVXPPDUL]HGLQZKDWIROORZVLQWKDWRUGHU
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
)RRG6HFXULW\DQG'LFWDWRUVKLS
7KHILUVWYHUVLRQRIWKHVRFLHWDODUJXPHQWKDVWRGRZLWKIRRGVHFXULW\
DQGGLFWDWRUVKLSLQWKHFRQWH[WRILQJUHGLHQWVLQWKHVWXG\RIFXOLQDU\DUW
$Q LQWHUHVWLQJ DUJXPHQW KHUH ZDV RQFH SURSRVHG E\ 1REHO 3UL]H
ZLQQLQJHFRQRPLVW$PDUW\D6HQZKRKDVREVHUYHGWKDW
WKHUHLVQRVXFK
WKLQJ DV DQ DSROLWLFDO IRRG SUREOHP
:KLOH GURXJKW DQG RWKHU QDWXUDOO\
RFFXUULQJHYHQWVPD\WULJJHUIDPLQHFRQGLWLRQVLWLVJRYHUQPHQWDFWLRQRU
LQDFWLRQ WKDW GHWHUPLQHV LWV VHYHULW\ DQG RIWHQ HYHQ ZKHWKHU RU QRW D
IDPLQH ZLOO RFFXU 7KH WK FHQWXU\ LV IXOO RI H[DPSOHV RI JRYHUQPHQWV
XQGHUPLQLQJ WKH IRRG VHFXULW\ RI WKHLU RZQ QDWLRQVVRPHWLPHV
LQWHQWLRQDOO\:.N
)RU LQVWDQFH EHFDXVH RI WKLV SROLWLFDO FRUUXSWLRQ GLFWDWRUV DQG
ZDUORUGVKDYHXVHGIRRGDVDSROLWLFDOZHDSRQUHZDUGLQJWKHLUVXSSRUWHUV
ZKLOH GHQ\LQJ IRRG VXSSOLHV WR DUHDV WKDW RSSRVH WKHLU UXOH 8QGHU VXFK
FRQGLWLRQVIRRGEHFRPHVDFXUUHQF\ZLWKZKLFKWREX\VXSSRUWDQGIDPLQH
EHFRPHV DQ HIIHFWLYH ZHDSRQ WR EH XVHG DJDLQVW WKH RSSRVLWLRQ :.
N
+RZHYHU IRU WKH FULWLFV WKLV VWXG\ RI IRRG VHFXULW\ DQG GLFWDWRUVKLS
KDV VRPH PDMRU SUREOHPV &RQVLGHU IRU LOOXVWUDWLRQ D IHZ H[DPSOHV
EHORZ
)LUVWO\ RQH PDLQ FULWLFLVP RI WKLV VWXG\ RI IRRG VHFXULW\ DQG
GLFWDWRUVKLSLVWKDWLWGRHVQRWJLYHVXIILFLHQWDWWHQWLRQWRWKHQDWLRQDODQG
LQWHUQDWLRQDOSRZHUVWUXFWXUHDQGLQVWLWXWLRQV
)RU LQVWDQFH 9 1DYDUUR DUJXHG WKDW 6HQ
V ZRUN ZKLOH
UHSUHVHQWLQJ D PDMRU EUHDN ZLWK WKH GRPLQDQW QHROLEHUDO SRVLWLRQ
UHSURGXFHG LQ PRVW QDWLRQDO DQG LQWHUQDWLRQDO GHYHORSPHQW DJHQFLHV LV
LQVXIILFLHQW WR H[SODLQ WKH NH\ UHODWLRQVKLS EHWZHHQ IUHHGRP DQG
GHYHORSPHQW7KHDEVHQFHRIDQDQDO\VLVRIWKHSRZHUUHODWLRQVWKDWFDXVH
DQG UHSURGXFH XQGHUGHYHORSPHQW WKURXJK QDWLRQDO DQG LQWHUQDWLRQDO
SROLWLFDOLQVWLWXWLRQVOHDYHV6HQ
VZRUNZDQWLQJ
$QG VHFRQGO\ DQRWKHU PDLQ FULWLFLVP RI WKLV VWXG\ RI IRRG VHFXULW\
DQGGLFWDWRUVKLSLVWKDWLWGRHVQRWJLYHVXIILFLHQWZHLJKWWRWKH0DOWKXVLDQ
SUREOHPRISRSXODWLRQSUHVVXUHRQIRRGVXSSOLHV
)RULQVWDQFHIRUWKHFULWLFVPDQ\PRGHOVRIUHVRXUFHGHSOHWLRQDQG
VFDUFLW\DUH0DOWKXVLDQ LQFKDUDFWHUWKHUDWHRIHQHUJ\FRQVXPSWLRQ ZLOO
RXWVWULSWKHDELOLW\WRILQGDQGSURGXFHQHZHQHUJ\VRXUFHVDQGVROHDGWR
D FULVLV7KH UDSLG LQFUHDVH LQ WKH JOREDO SRSXODWLRQ RI WKH SDVW FHQWXU\
H[HPSOLILHV 0DOWKXV
V SUHGLFWHG SRSXODWLRQ SDWWHUQV LW DOVR DSSHDUV WR
GHVFULEHVRFLRGHPRJUDSKLFG\QDPLFVRIFRPSOH[SUHLQGXVWULDOVRFLHWLHV
&KDSWHU,QWURGXFWLRQ7KH3UDFWLFHRI&XOLQDU\$UW
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7KH&XOWXUDO$UJXPHQW
7KH IRXUWK WKHRUHWLFDO DSSURDFK LV FDOOHG LQ WKH DEVHQFH RI EHWWHU
ZRUGV WKH FXOWXUDO DUJXPHQW ZKLFK IRFXVHV UHODWLYHO\ VSHDNLQJ RI
FRXUVHPRUHRQWKHFXOWXUDODVSHFWVRIFXOLQDU\DUWHJLVVXHVLQUHODWLRQ
WRYDOXHVDQGEHOLHIV
7KHUHIRUH WKH ZRUG FXOWXUDO LQ WKH WLWOH RI WKH DUJXPHQW LV
VXJJHVWLYHEHFDXVHLWUHIHUVWRWKHIRFXVRQWKHFXOWXUDODVSHFWVRIFXOLQDU\
DUWVRXQGHUVWRRG
/LNH WKH PHQWDO QDWXUDO DQG VRFLHWDO DUJXPHQWVWKH FXOWXUDO
DUJXPHQW KDV GLIIHUHQW LVVXHV RI FRQFHUQ DQG GLIIHUHQW GHIHQGHUV RI WKH
DUJXPHQW RIIHU WKHLU RZQ GLVWLQFWLYH VWDQGV RQ WKH LVVXHV GHSHQGLQJ RQ
WKHLURZQLQWHUHVWV
)RULOOXVWUDWLRQFRQVLGHUWZRPDMRUYHUVLRQVRIWKHFXOWXUDODUJXPHQW
QDPHO\DIRRGFRQVXPSWLRQDQGWKHHWKLFVRIHDWLQJPHDWDQGEIRRG
SKRWRJUDSK\ DQG WKH DUW RI SUHVHQWDWLRQWR EH VXPPDUL]HG LQ ZKDW
IROORZVLQWKDWRUGHU
)RRG&RQVXPSWLRLQDQGWKH(WKLFVRI(DWLQJ0HDW
7KH ILUVW YHUVLRQ RI WKH FXOWXUDO DUJXPHQW KDV WR GR ZLWK IRRG
FRQVXPSWLRQDQGWKHHWKLFVRIHDWLQJPHDWLQWKHFRQWH[WRILQJUHGLHQWVLQ
WKHVWXG\RIFXOLQDU\DUW
7KH WHUP HWKLFV RI HDWLQJ PHDW UHIHUV WR WKH FRQWURYHUV\ DQG
GHEDWH DERXW WKH DFW RI XQQHFHVVDU\ NLOOLQJ RI VHQWLHQW EHLQJV OLNH
DQLPDOVIRUIRRG:.Q
)RU LQVWDQFH 3ULQFHWRQ 8QLYHUVLW\ SURIHVVRU DQG SLRQHHU RI WKH
DQLPDO OLEHUDWLRQ PRYHPHQW 3HWHU 6LQJHU EHOLHYHV WKDW LI DOWHUQDWLYH
PHDQVRIVXUYLYDOH[LVWRQHRXJKWWRFKRRVHWKHRSWLRQWKDWGRHVQRWFDXVH
XQQHFHVVDU\KDUPWRDQLPDOV0RVWHWKLFDOYHJHWDULDQVDUJXHWKDWWKHVDPH
UHDVRQV H[LVW DJDLQVW NLOOLQJ DQLPDOV WR HDW DV DJDLQVW NLOOLQJ KXPDQV WR
HDW:.Q
+RZHYHUIRUWKHFULWLFVWKHVWXG\RIIRRGFRQVXPSWLRQDQGWKHHWKLFV
RIHDWLQJPHDWKDVVRPHPDMRUSUREOHPV&RQVLGHUIRULOOXVWUDWLRQDIHZ
H[DPSOHVEHORZ
)LUVWO\RQHPDLQFULWLFLVPRIWKHVWXG\RIIRRGFRQVXPSWLRQDQGWKH
HWKLFV RI HDWLQJ PHDW LV WKDW DQLPDOV GR QRW KDYH WKH FRQVFLRXVQHVV WKDW
KXPDQVKDYH
)RU LQVWDQFH 'DQLHO 'HQQHWW DUJXHG WKDW FRQVFLRXVQHVV
UHTXLUHVDFHUWDLQNLQGRILQIRUPDWLRQDORUJDQL]DWLRQWKDWGRHVQRWVHHPWR
EH
KDUGZLUHG
LQ KXPDQV EXW LV LQVWLOOHG E\ KXPDQ FXOWXUH 0RUHRYHU
FRQVFLRXVQHVVLVQRWDEODFNRUZKLWHDOORUQRWKLQJW\SHRISKHQRPHQRQ
&KDSWHU,QWURGXFWLRQ7KH3UDFWLFHRI&XOLQDU\$UW
DVLVRIWHQDVVXPHG7KHGLIIHUHQFHVEHWZHHQKXPDQVDQGRWKHUVSHFLHVDUH
VR JUHDW WKDW VSHFXODWLRQV DERXW DQLPDO FRQVFLRXVQHVV VHHP XQJURXQGHG
0DQ\DXWKRUVVLPSO\DVVXPHWKDWDQDQLPDOOLNHDEDWKDVDSRLQWRIYLHZ
EXWWKHUHVHHPVWREHOLWWOHLQWHUHVWLQH[SORULQJWKHGHWDLOVLQYROYHG:.
Q
$QG VHFRQGO\ DQRWKHU PDLQ FULWLFLVP RI WKH VWXG\ RI IRRG
FRQVXPSWLRQDQGWKHHWKLFVRIHDWLQJPHDWLVWKDWLWLVQRWNQRZQZKHUHWKH
OLQHRIFRQVFLRXVQHVVEHWZHHQKXPDQVDQGDQLPDOVLVWREHGUDZQZKLFK
LV LPSRUWDQW WR DUJXH WR ZKDW H[WHQW DQLPDOV IHHO SDLQ LQ D ZD\ WKDW
KXPDQVGR
)RU LQVWDQFH IRU WKH FULWLFV LW LV GHEDWDEOH ZKHUH H[DFWO\ WKLV OLQH
VKRXOG EH GUDZQ DV -XVWLQ /HLEHU LQWHUHVWLQJO\ VKRZHG WKH
FRQIOLFWLQJ YLHZV DPRQJ GLIIHUHQW VFKRODUV RQ WKH VXEMHFW LQ WKLV ZD\
&ODUNH DJUHH LQ GHQ\LQJ FRQVFLRXVQHVV WR VSRQJHV 6LQJHU ORFDWHV WKH
GLVWLQFWLRQ VRPHZKHUH EHWZHHQ WKH VKULPS DQG WKH R\VWHU7KH LQWUHSLG
0LGJOH\ RQ WKH RWKHU KDQG VHHPV ZLOOLQJ WR VSHFXODWH DERXW WKH
VXEMHFWLYH H[SHULHQFH RI WDSHZRUPV1DJHODSSHDUV WR GUDZ WKH OLQH DW
IORXQGHUVDQG ZDVSVWKRXJK PRUHUHFHQWO\ KHVSHDNVRI WKHLQQHUOLIHRI
FRFNURDFKHV:.Q
)RRG3KRWRJUDSK\DQGWKH$UWRI3UHVHQWDWLRQ
$QGWKHVHFRQGYHUVLRQRIWKHFXOWXUDODUJXPHQWKDVWRGRZLWKIRRG
SKRWRJUDSK\DQGWKHDUWRISUHVHQWDWLRQLQWKHFRQWH[WRIWHFKQLTXHVLQWKH
VWXG\RIFXOLQDU\DUW
7KH WHUP IRRG SKRWRJUDSK\ UHIHUV WR D VWLOO OLIH VSHFLDOL]DWLRQ RI
FRPPHUFLDO SKRWRJUDSK\ DLPHG DW SURGXFLQJ DWWUDFWLYH SKRWRJUDSKV RI
IRRG IRU XVH LQ DGYHUWLVHPHQWV SDFNDJLQJ PHQXV RU FRRNERRNV
3URIHVVLRQDOIRRGSKRWRJUDSK\LVDFROODERUDWLYHHIIRUWXVXDOO\LQYROYLQJ
DQ DUW GLUHFWRU D SKRWRJUDSKHU D IRRG VW\OLVW D SURS VW\OLVW DQG WKHLU
DVVLVWDQWV:.R
%XW WKH PDLQ GLIIHUHQFH EHWZHHQ KRZ D KRPH FRRN RU FKHI PD\
SUHVHQWIRRGDQGZKDWDVW\OLVWGRHVLVWKHWLPHDQGHIIRUWDVW\OLVWWDNHVWR
FDUHIXOO\ DQG DUWIXOO\ DUUDQJH WKH IRRG $OVR UHTXLUHG LV WKH YLVXDO NQRZ
KRZDQGDELOLW\WRWUDQVODWHWKHSHUFHSWLRQRIWDVWHDURPDDQGDSSHDOWKDW
RQH JHWV IURP DQ DFWXDO GLVK WR D WZRGLPHQVLRQDO SKRWRJUDSK :.
R
+RZHYHUIRUWKHFULWLFVWKHVWXG\RIIRRGSKRWRJUDSK\DQGWKHDUWRI
SUHVHQWDWLRQ KDV VRPH PDMRU SUREOHPV &RQVLGHU IRU LOOXVWUDWLRQ D IHZ
H[DPSOHVEHORZ
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7KH,QTXLVLWLYH$UJXPHQW
$QGILIWKO\XQOLNHWKHSUHYLRXVIRXUDUJXPHQWVYL]WKHPHQWDOWKH
QDWXUDOWKHVRFLHWDODQGWKHFXOWXUDOWKHILIWKRQHWREHLQWURGXFHGKHUH
FDQ EH FDOOHG LQ WKH DEVHQFH RI EHWWHU ZRUGV DJDLQ WKH LQTXLVLWLYH
DUJXPHQW ZKLFK OHDUQV IURP DOO RWKHU WKHRUHWLFDO DSSURDFKHV ZKLFK
LQFOXGH WKH SUHYLRXV IRXU DUJXPHQWV DQG DOVR RWKHU H[DPSOHV DV ZLOO EH
LQWURGXFHG LQ WKH UHVW RI WKLV ERRN ZLWKRXW KRZHYHU IDYRULQJ DQ\ RI
WKHPQRUWU\LQJWRLQWHJUDWHWKHPDVWKH\DUHQRWQHFHVVDULO\FRPSDWLEOH
ZLWK HDFK RWKHU DV WKH LQWURGXFWLRQ RI WKH WKHRUHWLFDO GHEDWH LQ WKH
SUHYLRXVVXEVHFWLRQVKDVVKRZQ
7KH,QTXLVLWLYH7KHRU\RI&XOLQDU\$UW
0\ LQTXLVLWLYHDUJXPHQWFDQ EH PRUHSUHFLVHO\FDOOHGWKHLQTXLVLWLYH
WKHRU\ RI FXOLQDU\ DUW VLQFH LW LV WR SURSRVH D QHZ WKHRU\ RI LQJUHGLHQWV
DQGWHFKQLTXHVLQWKHVWXG\RIFXOLQDU\DUW
0\LQTXLVLWLYHWKHRU\RIFXOLQDU\DUWKDVIRXUPDMRUGLVWLQFWIHDWXUHV
&KDSWHU,QWURGXFWLRQ7KH3UDFWLFHRI&XOLQDU\$UW
)LUVWO\P\WKHRU\PDNHVJRRGXVHRIDOOWKHRUHWLFDODSSURDFKHVWRWKH
VWXG\ RI FXOLQDU\ DUW LQ UHODWLRQ WR LQJUHGLHQWV DQG WHFKQLTXHV EH WKH\
DERXWWKHPHQWDODUJXPHQWWKHQDWXUDODUJXPHQWWKHVRFLHWDODUJXPHQWRU
WKHFXOWXUDODUJXPHQWHVSHFLDOO\IURPWKHPRVWFRPSUHKHQVLYHFRPELQHG
SHUVSHFWLYHVRIWKHPLQGQDWXUHVRFLHW\DQGFXOWXUHDVZLOOEHGHDOWZLWK
LQ&KDSWHU7ZRDQG&KDSWHU7KUHH
6HFRQGO\MXVWOLNHPDQ\RWKHUWKHRULHVRIPLQHLQP\SUHYLRXVERRNV
P\ WKHRU\ KHUHGRHV QRWKHDYLO\ IDYRUDQ\VSHFLILFWKHRU\RYHURWKHUVLQ
WKH OLWHUDWXUH QRU WU\LQJ WR LQWHJUDWH WKHP DV WKH\ DUH QRW QHFHVVDULO\
FRPSDWLEOHZLWKHDFKRWKHU
7KLUGO\ P\ WKHRU\ WUHDWV WKH LVVXH RI FXOLQDU\ DUW LQ WKH GLVWLQFWLYH
GLDOHFWLFFRQWH[WRIQRLQJUHGLHQWVZLWKRXWWHFKQLTXHVDQGYLFHYHUVD
$QG IRXUWKO\ LW FRQWDLQV WZHQW\HLJKW PDMRU WKHVHV QDPHO\ D WKH
ILUVW WKHVLV WKH IRUPDOQHVVLQIRUPDOQHVV SULQFLSOH E WKH VHFRQG WKHVLV
WKH DEVROXWHQHVVUHODWLYHQHVV SULQFLSOH F WKH WKLUG WKHVLV WKH SDUWLDOLW\
WRWDOLW\ SULQFLSOH G WKH IRXUWK WKHVLV WKH SUHGLFWDELOLW\XQSUHGLFWDELOLW\
SULQFLSOHHWKHILIWKWKHVLVWKHH[SOLFDELOLW\LQH[SOLFDELOLW\SULQFLSOHI
WKH VL[WK WKHVLV WKH ILFWLRQUHDOLW\ SULQFLSOH J WKH VHYHQWK WKHVLV WKH
ILQLWHQHVVWUDQVILQLWHQHVV SULQFLSOH K WKH HLJKWK WKHVLV WKH SUHFLVHQHVV
YDJXHQHVV SULQFLSOH L WKH QLQWK WKHVLV WKH VLPSOHQHVVFRPSOLFDWHGQHVV
SULQFLSOH M WKH WHQWK WKHVLV WKH RSHQQHVVKLGGHQQHVV SULQFLSOH N WKH
HOHYHQWK WKHVLV WKH GHQVHQHVVHPSWLQHVV SULQFLSOH O WKH WZHOIWK WKHVLV
WKH FKDQJHFRQVWDQF\ SULQFLSOH P WKH WKLUWHHQWK WKHVLV WKHRUGHUFKDRV
SULQFLSOH Q WKH IRXUWHHQWK WKHVLV WKH VORZQHVVTXLFNQHVV SULQFLSOH R
WKH ILIWHHQWK WKHVLV WKH H[SDQVLRQFRQWUDFWLRQ SULQFLSOH S WKH VL[WHHQWK
WKHVLV WKH WKHRU\SUD[LV SULQFLSOH T WKH VHYHQWHHQWK WKHVLV WKH
FRQYHQWLRQQRYHOW\ SULQFLSOH U WKH HLJKWHHQWK WKHVLV WKH HYROXWLRQ
WUDQVIRUPDWLRQ SULQFLSOH V WKH QLQHWHHQWK WKHVLV WKH V\PPHWU\
DV\PPHWU\ SULQFLSOH W WKH WZHQWLHWK WKHVLV WKH VRIWQHVVKDUGQHVV
SULQFLSOHXWKHWZHQW\ILUVWWKHVLVWKHVHULRXVQHVVSOD\IXOQHVVSULQFLSOH
YWKHWZHQW\VHFRQGWKHVLVWKHDFWLYHQHVVLQDFWLYHQHVVSULQFLSOHZWKH
WZHQW\WKLUGWKHVLVWKHVHOIQHVVRWKHUQHVVSULQFLSOH[WKHWZHQW\IRXUWK
WKHVLVWKHUHJUHVVLRQSURJUHVVLRQSULQFLSOH\WKHWZHQW\ILIWKWKHVLVWKH
VDPHGLIIHUHQFHSULQFLSOH]WKHWZHQW\VL[WKWKHVLVWKHVWDELOLW\UHDFWLRQ
SULQFLSOHDDWKHWZHQW\VHYHQWKWKHVLVWKHIXQFWLRQDOLW\QRQIXQFWLRQDOLW\
SULQFLSOHDQGEEWKHWZHQW\HLJKWKWKHVLVWKHSRVWKXPDQLQTXLVLWLRQ
WREHHODERUDWHGLQWKHUHVWRIWKHERRNZLWKDVXPPDU\LQWKHFRQFOXGLQJ
FKDSWHU
%HFDXVH RI WKH ODVW WKHVLV RQ WKH SRVWKXPDQ LQTXLVLWLRQ WKH ZRUG
LQTXLVLWLYHLQWKHWLWOHRIP\WKHRU\DUHVXJJHVWLYHEHFDXVHLWUHIHUVWRDQ
LQTXLULQJ DQDO\VLV RI FXOLQDU\ DUW VR DV WR H[SORUH GLIIHUHQW YLHZV DQG
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7KHRU\DQG0HWD7KHRU\
7KH LQTXLVLWLYH DUJXPHQW RU WKH LQTXLVLWLYH WKHRU\ RI FXOLQDU\ DUW
SUHVXSSRVHVVRPHNLQGRIPHWDWKHRU\LQVSHFLDOUHODWLRQWRPHWKRGRORJ\
DQG RQWRORJ\MXVW DV DOO WKHRULHV HLWKHU H[SOLFLWO\ RU LPSOLFLWO\ UHTXLUH
WKHLURZQYHUVLRQVRIPHWDWKHRU\
0HWD7KHRU\
$VVRRIWHQFODULILHGLQP\SUHYLRXVERRNVWKHRU\DQGPHWDWKHRU\
EURDGO\ VSHDNLQJ FDQ EH IXUWKHU FODVVLILHG LQWR GLIIHUHQW FDWHJRULHV DV
VKRZQEHORZ
2Q7KHRU\
([LQUHODWLRQWRWKHPLQG
([LQUHODWLRQWRQDWXUH
([LQUHODWLRQWRVRFLHW\
([LQUHODWLRQWRFXOWXUH
2Q0HWD7KHRU\
([LQUHODWLRQWRPHWKRGRORJ\
([LQUHODWLRQWRRQWRORJ\
(DFK FDWHJRU\ LQ LWV WXUQ FDQ WKHQ EH IXUWKHU VXEGLYLGHG LQWR GLIIHUHQW
OHYHOVRIDQDO\VLVZKLFKZLOOEHHODERUDWHGLQWKHQH[WWZRVHFWLRQVDQG
VXPPDUL]HGLQ7DEOH
&KDSWHU,QWURGXFWLRQ7KH3UDFWLFHRI&XOLQDU\$UW
:LWK WKLV UHPLQGHU LQ PLQG , DOUHDG\ SURSRVHG LQ P\ SUHYLRXV
ERRNV P\ GLVWLQFWLYH FRQWULEXWLRQ WR PHWDWKHRU\ QDPHO\ PHWKRGRORJ\
OLNH WKHRU\ RI PHWKRGRORJLFDO KROLVP FRPSOH[ WKHRU\ RI GDWD
DQDO\VLV DQG FULWLFDOGLDOHFWLF WKHRU\ RI IRUPDO VFLHQFH IRU LQVWDQFH
DQG RQWRORJ\ OLNH WKHRU\ RI H[LVWHQWLDO GLDOHFWLFV DQG FRQWUDVWLYH
WKHRU\RIUDWLRQDOLW\IRULQVWDQFH
7KH QH[W WZR VHFWLRQV DUH WR LQWURGXFH P\ PHWDWKHRU\HVSHFLDOO\
H[LVWHQWLDO GLDOHFWLFV DQG VRSKLVWLFDWHG PHWKRGRORJLFDO KROLVP
UHVSHFWLYHO\WR EH UHSHDWHG RIWHQ YHUEDWLP ZLWK RQO\ D IHZ XSGDWHG
UHYLVLRQVIURPP\SUHYLRXVZRUNVDVWKLVLVVRPHWKLQJWKDW,RIWHQGRLQ
HDFK QHZ ERRN RI PLQH DV DQ LQWURGXFWLRQ WR VRPH EDFNJURXQG
LQIRUPDWLRQIRUWKHFRQYHQLHQFHRIWKHUHDGHUV
,QWKHSURFHVV,VKDOODOVRLQWURGXFHP\QXPHURXVQHZWKHRULHVRUWR
EHH[DFWRIWKHPLQERRNVVRIDUDVRI$SULOLQUHODWLRQWRWKH
IRXUFDWHJRULHVRIWKHPLQGQDWXUHVRFLHW\DQGFXOWXUHLQWKHFRQWH[WRI
WKHRU\DVDOVRVXPPDUL]HGLQ7DEOH
$8QLILHG7KHRU\RI(YHU\WKLQJ
,QWKHHQGP\GLVWLQFWLYHFRQWULEXWLRQWRERWKPHWDWKHRU\DQGWKHRU\
VHUYHVDVDIRXQGDWLRQWRXQLI\DOOGRPDLQVRINQRZOHGJHLHWKHVRFLDO
VFLHQFHVWKHIRUPDOVFLHQFHVWKHQDWXUDOVFLHQFHVDQGWKHKXPDQLWLHVIRU
DQ RYHUDUFKLQJ XQGHUVWDQGLQJ RI DOO IRUPV RI UHDOLW\ E\ ZD\ RI VRPH
RQWRORJLFDOSULQFLSOHVDWWKHPHWDWKHRUHWLFDOOHYHODQGWKHFRPSUHKHQVLYH
SHUVSHFWLYHV RI WKH PLQG QDWXUH VRFLHW\ DQG FXOWXUH DW WKH WKHRUHWLFDO
OHYHODVZLOOEHH[SODLQHGLQWKHQH[WWZRVHFWLRQV
7KLV LV VR ZLWKRXW FRPPLWLQJ WKH VLQV RI UHGXFWLRQLVP DQG UHYHUVH
UHGXFWLRQLVP DV RIWHQ VHHQ LQ PDQ\ KROLVWLF DSSURDFKHV ZLWK WKH IDG RI
V\VWHPVDSSURDFKDVDPRVWUHFHQWQRWRULRXVH[DPSOHDVDOUHDG\FULWLFDOO\
H[SODLQHG LQ 7KH )XWXUH RI 3RVW+XPDQ )RUPDO 6FLHQFH RU )3+)6
VLQFH P\ GLVWLQFWLYH FRQWULEXWLRQ PDNHV JRRG XVH RI GLIIHUHQW VFKRROV RI
WKRXJKWZLWKRXWKHDYLO\IDYRULQJDQ\RIWKHPQRUWU\LQJWRLQWHJUDWHWKHP
DVWKH\DUHQRWQHFHVVDULO\FRPSDWLEOHZLWKHDFKRWKHUVRDVWRLQFOXGH
RU DGMXVW IRU KHWHURJHQHLW\ FRQIOLFW VXEMHFWLYLW\ DQG FRPSOH[LW\ IRU
H[DPSOH
,QWKLVVHQVHWKHZRUGXQLILHGGRHVQRWKDYHWRPHDQDQLQWHJUDWLYH
DSSURDFKLQDQDUURZVHQVHQRUDV\VWHPVDSSURDFKLQDEURDGRQHERWK
RIZKLFK,KDYHFULWLFDOO\UHEXNHGLQP\SUHYLRXVERRNVZKLOHOHDUQLQJ
IURPWKHP
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7KLVRYHUDUFKLQJSURMHFWFRQVLVWLQJRIQXPHURXVWKHRULHVRIPLQHDV
ZLOOEHVXPPDUL]HGLQWKHQH[WVHFWLRQWKXVFRQVWLWXWHVP\JUDQGXQLIHG
WKHRU\RIHYHU\WKLQJLQWKHZRUOGDQGEH\RQG
7KH/RJLFRI([LVWHQWLDO'LDOHFWLFV
7RVWDUWWKH RQWRORJ\ RI H[LVWHQWLDO GLDOHFWLFV FDQ EH VXPPDUL]HG LQ
WKLVVHFWLRQRIWHQYHUEDWLPZLWKRQO\DIHZXSGDWHGUHYLVLRQVIURPP\
SUHYLRXVZRUNVDVWKLVLVVRPHWKLQJWKDW,UHJXODUO\GRLQHDFKQHZERRN
RI PLQH DV DQ LQWURGXFWLRQ WR VRPH EDFNJURXQG LQIRUPDWLRQ IRU WKH
FRQYHQLHQFHRIWKHUHDGHUV
$IWHUDOOWKLVERRNOLNHDOORWKHUVRIPLQHLVLQFRQYHUVDWLRQZLWKDOO
SUHYLRXV RQHV RI PLQH IRU WKH ILQDO DLP WR FRQYHUJH DOO RI WKHP LQWR D
ODUJHUJUDQGSURMHFWRQWKHIXWXUHRILQWHOOLJHQWOLIHERWKKHUHRQHDUWKDQG
WKHUHLQGHHSVSDFHXQWRPXOWLYHUVHV
7KH VXPPDU\ FDQ EH RUJDQL]HG LQ UHODWLRQ WR D WKH FRQFHSWLRQ RI
H[LVWHQWLDOGLDOHFWLFVRULWVRQWLFVEWKHV\QWD[RIH[LVWHQWLDOGLDOHFWLFV
RU LWV RQWRPHWKRGRORJ\ DQG RQWRORJLF F WKH VHPDQWLFV RI H[LVWHQWLDO
GLDOHFWLFV RU LWV RQWRVHPDQWLFV DQG G WKH SUDJPDWLFV RI H[LVWHQWLDO
GLDOHFWLFV RU LWV RQWRSUDJPDWLFV UHVSHFWLYHO\ KHUHDIWHUDJDLQ RIWHQ
YHUEDWLP
7KLVPHDQVWKDWIRUWKRVHUHDGHUVZKRKDGUHDGVRPHRIP\SUHYLRXV
ERRNVWKHVXPPDU\EHORZLVUHDOO\QRWPXFKQHZDOPRVWYHUEDWLPZLWK
RQO\VRPHXSGDWHGUHYLVLRQV
%XW IRU WKRVH ZKR KDYH QHYHU UHDG P\ SUHYLRXV ERRNV LW LV D JRRG
UHYLHZRIWKHP
7KH&RQFHSWLRQRI([LVWHQWLDO'LDOHFWLFVRU,WV2QWLFV
7KLVRQWRORJ\ ZDVRULJLQDOO\ GHVLJQDWHGDV H[LVWHQWLDOGLDOHFWLFVLQ
%H\RQG &DSLWDOLVP WR 3RVW&DSLWDOLVP KHUHLQ DEEUHYLDWHG DV %&3&
DOWKRXJKLWZDVDOUHDG\DQDO\]HGLQRWKHUERRNVRIPLQHOLNHWKHYROXPHV
RI7KH)XWXUHRI+XPDQ&LYLOL]DWLRQ)+&7KH)XWXUHRI&DSLWDOLVPDQG
'HPRFUDF\ )&' 7KH )XWXUH RI 3RVW+XPDQ &RQVFLRXVQHVV )3+&
DQGWKHYROXPHVRI%H\RQG'HPRFUDF\WR3RVW'HPRFUDF\%'3'
/HVW DQ\ FRQIXVLRQ RFFXUV LW LV LPSRUWDQW WR VWUHVV DW WKH RXWVHW WKDW
WKH ZRUG
H[LVWHQWLDO
LQ H[LVWHQWLDO GLDOHFWLFV KDV QRWKLQJ WR GR ZLWK
([LVWHQWLDOLVP ZKLFK , UHEXNHG LQ )+& )&' DQG DOVR )3+& ,QVWHDG
WKH ZRUG KHUH PHUHO\ UHIHUV WR WKH H[LVWHQFH RI LQWHOOLJHQW OLIH ERWK
SULPLWLYHDQGDGYDQFHGLQDEURDGVHQVH
&KDSWHU,QWURGXFWLRQ7KH3UDFWLFHRI&XOLQDU\$UW
6RPH%DVLF&RQFHSWV
7KH FRQFHSWLRQ RI H[LVWHQWLDO GLDOHFWLFV RU LWV RQWLFV PDNHV XVH RI
GLIIHUHQW FRQFHSWV OLNH VHWV HOHPHQWV UHODWLRQV RSHUDWLRQV
IXQFWLRQV WUXWK YDOXHV D[LRPV SRVWXODWHV DQG SULQFLSOHVDV
VKRZQ LQ 7DEOH ZKLFK DUH LPSRUWDQW IRU WKH XQGHUVWDQGLQJ RI DQ\
ORJLFRIRQWRORJ\
7KDW FODULILHGH[LVWHQWLDO GLDOHFWLFV DV D ODQJXDJH RI RQWRORJ\ FDQ
EH DQDO\]HG LQ GLIIHUHQW ZD\V WKDW D ODQJXDJH DV DQ DQDORJ\ LV RIWHQ
DQDO\]HG QDPHO\ LQ UHODWLRQ WR SKRQRORJ\ WKH VWXG\ RI SDWWHUQV RI D
ODQJXDJH
V VRXQGV SKRQHWLFV WKH VWXG\ RI WKH SK\VLFDO DVSHFWV RI
VRXQGV RI KXPDQ ODQJXDJH PRUSKRQRORJ\ WKH VWXG\ RI WKH LQWHUQDO
VWUXFWXUH RI ZRUGV V\QWD[ WKH VWXG\ RI KRZ ZRUGV FRPELQH WR IRUP
JUDPPDWLFDO VHQWHQFHV VHPDQWLFV WKH VWXG\ RI WKH PHDQLQJ RI ZRUGV
>OH[LFDO VHPDQWLFV@ DQG IL[HG ZRUG FRPELQDWLRQV >SKUDVHRORJ\@ DQG
SUDJPDWLFVWKHVWXG\RIKRZXWWHUDQFHVDUHXVHGOLWHUDOO\ILJXUDWLYHO\
RURWKHUZLVHLQFRPPXQLFDWLYHDFWV:.
%XWVLQFHP\WKHRU\RIH[LVWHQWLDOGLDOHFWLFVPDNHVXVHRIWKH(QJOLVK
ODQJXDJHIRUFRPPXQLFDWLRQKHUHLWGRHVQRWSURSRVHDQHZZD\WRPDNH
WKH SDWWHUQV RI D ODQJXDJHV VRXQGV DV LQ SKRQRORJ\ WR VWXG\ WKH
SK\VLFDO DVSHFWV RI VRXQGV DV LQ SKRQHWLFV RU HYHQ WR VWULYH IRU D QHZ
RUJDQL]DWLRQRIWKHLQWHUQDOVWUXFWXUHRIZRUGVIRUWKH(QJOLVKODQJXDJHDV
LQPRUSKRQRORJ\
)RU WKLV UHDVRQ WKH ODQJXDJH RI H[LVWHQWLDO GLDOHFWLFV WR EH DQDO\]HG
KHUHDIWHU LV QRW FRQFHUQHG ZLWK WKH SKRQRORJLFDO SKRQHWLF DQG
PRUSKRQRORJLFDO DVSHFWV RI WKH (QJOLVK ODQJXDJH ,QVWHDG WKH DQDO\VLV
ZLOOH[SORUHWKHV\QWD[VHPDQWLFVDQGSUDJPDWLFVRIH[LVWHQWLDOGLDOHFWLFV
DVDODQJXDJHRIRQWRORJ\WRLPSURYHRXUXQGHUVWDQGLQJRIUHDOLW\
7KH2QWLF'LVSXWH
%XWILUVWWKHUHLVDQRQWLFGLVSXWHWREHDGGUHVVHGZKLFKLVUHODWHGWR
ZKDW,FDOOHGWKHGLOHPPDRIRQWRORJ\DVLQWURGXFHGHDUOLHULQ6HF
RI7KH)XWXUHRI3RVW+XPDQ.QRZOHGJH)3+.
$ JRRG SRLQW RI GHSDUWXUH FRQFHUQV ZKDW , ZDQW WR FDOO WKH RQWLF
GLVSXWHRQKRZWRXQGHUVWDQGWKHYHU\QDWXUHRIRQWRORJ\
7UDGLWLRQDOO\ VFKRODUV LQ WKH ILHOG XVHG WR VWXG\ WKH FRQFHSWLRQ RI
RQWRORJ\LQWHUPVRILWVHQWLWLHVHJPDWHULDOREMHFWVDEVWUDFWQXPEHUV
SURSHUWLHVHJGXUDWLRQSOXUDOLW\DQGUHODWLRQVKLSVHJFDXVDWLRQ
7KLV LV D JRRG VWDUWLQJ SRLQW EXW LW VXIIHUV IURP GLIIHUHQW SUREOHPV
&RQVLGHU WKUHH H[DPSOHV RI ELDV EHORZ ZKLFK DUH TXLWH FRPPRQ LQ WKH
OLWHUDWXUH DQG WKH UHFHQW YHUVLRQ RI WUHDWLQJ FRQFHSWV DQG SULQFLSOHV LQ
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7KH6\QWD[RI([LVWHQWLDO'LDOHFWLFVRU,WV2QWRPHWKRGRORJ\
DQG2QWRORJLF
7KHV\QWD[RIH[LVWHQWLDOGLDOHFWLFVDQDORJRXVO\VSHDNLQJUHIHUVKHUH
WRWKHVWUXFWXUHRIDQRQWRORJ\ZKLFKFDQEHVWXGLHGE\ZD\RIFRPELQLQJ
LGHDV LQWR FRPSOH[ UHODWLRQVKLSV OLNH RQWRORJLFDO SULQFLSOHV WR GHSLFW
UHDOLW\LQWKHZRUOGDQGFDQEHDQDO\]HGLQVHYHQVXEVHFWLRQVQDPHO\
D WKH VHOHFWLRQ FULWHULD E IXUWKHU FODULILFDWLRQV RQ FODVVLILFDWLRQ F
RQWRPHWKRGRORJ\ G RQWRORJLF H WKH SULQFLSOHV DV VKRUW FXWV I WKH
&KDSWHU,QWURGXFWLRQ7KH3UDFWLFHRI&XOLQDU\$UW
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
&KDSWHU,QWURGXFWLRQ7KH3UDFWLFHRI&XOLQDU\$UW
$WOHDVWIXWXUHJHQHUDWLRQVFDQSLFNXSZKHUH,OHDYHRIIDQGFRQWLQXH
WKHGLVFRYHU\
,QWKLVVHQVHP\ZRUNVKRXOGEHWUHDWHGDVDSLRQHHULQJHIIRUWIRUWKH
GHYHORSPHQW RI D V\VWHPDWLF FRPSUHKHQVLYH DQDO\VLV RI D QHZ JHQHUDO
RQWRORJ\IRUWKHIXWXUHRINQRZOHGJH
E6HFRQGO\WKHSULQFLSOHVDUHQRWULJLGO\FODVVLILHGDVWKH\FDQEH
UHFODVVLILHGLQDGLIIHUHQWZD\
)RU LQVWDQFH WKH SUHFLVHQHVVYDJXHQHVV SULQFLSOH LV FODVVLILHG XQGHU
WKH FDWHJRU\ RI VWUXFWXUH EXW FDQ EH UHFODVVLILHG XQGHU WKH FDWHJRU\ RI
PHWKRGDOWKRXJKLQVRGRLQJLWKDVDGLIIHUHQWPHDQLQJLQWKHFRQWH[W
RIPHWKRG
7KH VDPH ORJLF DSSOLHV WR WKH VDPHGLIIHUHQFH SULQFLSOH XQGHU WKH
FDWHJRU\ RI RXWFRPH ZKLFK FDQ EH UHFODVVLILHG XQGHU WKH FDWHJRU\ RI
VWUXFWXUHDOWKRXJKLQVRGRLQJRQFHPRUHLWKDVDGLIIHUHQWPHDQLQJLQ
WKHFRQWH[WRIVWUXFWXUH
F7KLUGO\WKHSULQFLSOHVDUHWREHXQGHUVWRRGWRJHWKHUQRWWKDWHDFK
SULQLFSOHLVWREHWUHDWHGLQGHSHQGHQWO\RIRWKHUV$IWHUDOOWKHSULQFLSOHV
DUHPXWXDOO\FRQVWUDLQLQJLQWKDWWKH\ZRUNWRJHWKHUDVDZKROH
G )RXUWKO\ WKH SULQFLSOHV DUH UHOHYDQW WR DOO VXEMHFW PDWWHUV EXW
VRPH SULQFLSOHV DUH UHODWLYHO\ VSHDNLQJ RI FRXUVH PRUH XVHIXO WR VRPH
VXEMHFW PDWWHUV WKDQ RWKHUV XQGHU FHUWDLQ FRQGLWLRQVDV LPSOLHG LQ WKH
V\PPHWU\DV\PPHWU\SULQFLSOH
H $QG ILIWKO\ WKH SULQFLSOHV FRQVWLWXWH RQO\ WZR OHYHOV RI DQDO\VLV
WKLVWLPHDWWKHRQWRORJLFDODQGPHWKRGRORJLFDOOHYHOVZKLOHRWKHUOHYHOV
RIDQDO\VLVIURPWKHSHUVSHFWLYHVRIWKHPLQGQDWXUHVRFLHW\DQGFXOWXUH
DUHDOVRQHHGHGLQRUGHUWRXQGHUVWDQGUHDOLW\LQLWVWRWDOLW\DVH[SODLQHG
LQWKHVHFWLRQRQVRSKLVWLFDWHGPHWKRGRORJLFDOKROLVPVRDVWRDYRLGWKH
GXDOGDQJHUVRIUHGXFWLRQLVPDQGUHYHUVHUHGXFWLRQLVP
2QWRPHWKRGRORJ\
:LWKWKHVHVHOHFWLRQFULWHULDDQGFODULILFDWLRQVLQPLQGWKHV\QWD[RI
H[LVWHQWLDO GLDOHFWLFV FDQ EH GLYLGHG LQWR WZR PDLQ VPDOOHU VHFWLRQV IRU
DQDO\VLV VLQFH WKH\ DUH UHODWHG WR HDFK RWKHU LQ WKH FRQWH[W RI VRPH
IXQGDPHQWDOSULQFLSOHVWKDWLVDRQWRPHWKRGRORJ\DQGERQWRORJLFWR
EHDGGUHVVHGKHUHDIWHUUHVSHFWLYHO\
,Q WKH FRQWH[W RI RQWRPHWKRGRORJ\ VRPH RQWRORJLFDO SULQFLSOHV DUH
SURSRVHGKHUHLQUHODWLRQWRWKHQDWXUHRIPHWKRGRORJ\ZKLFKKRZHYHULV
WLHGXSZLWKWKHJHQHUDOLVVXHRIRQWRORJ\LQWKHFRQWH[WRINQRZOHGJH
,Q WKLV VHQVH RQWRPHWKRGRORJ\ LQ WKH FRQWH[W RI WKHVH RQWRORJLFDO
SULQFLSOHVLQWKHFDWHJRU\RIPHWKRGDUHUHODWHGZLWKRQWRORJLFLQJHQHUDO
LQWKHFRQWH[WRIRQWRORJLFDOSULQFLSOHVLQJHQHUDO
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
&KDSWHU,QWURGXFWLRQ7KH3UDFWLFHRI&XOLQDU\$UW
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
&KDSWHU,QWURGXFWLRQ7KH3UDFWLFHRI&XOLQDU\$UW
YDULDWLRQV DQG GHJUHHV DV ZHOO DV IRU GLIIHUHQW LQWHUDFWLRQV ZLWK PXOWLSOH
RWKHUHQWLWLHVXQOLNHWKHP
,QWKLVOLJKWHDFKSDLUFDQHQGXSKDYLQJKXQGUHGRUHYHQWKRXVDQG
LI QRW PRUH GLIIHUHQW YHUVLRQV ZKLFK LQWHUDFW ZLWK KXQGUHG RU HYHQ
WKRXVDQGLIQRWPRUHRWKHUHQWLWLHVDVVXPPDUL]HGLQ7DEOH
7KHUHDUHWZRFODULILFDWLRQVKHUH
)LUVWO\ WKLV FRQFHSWLRQ RI VKRUWFXWV LV QRW PXWXDOO\ H[FOXVLYH QRU
DEVROXWH LQ WKDW WKH RSSRVLWHV FDQ FRPH LQ DOO VKDSHV DQG VL]HV ZLWK
GLIIHUHQW GHJUHHV )RU LQVWDQFH E\ DQDORJ\ MXVW DV WKHUH DUH GLIIHUHQW
GHJUHHV RI WKH WZR FRORUV ZKLWH DQG EODFNWKHUH DUH OLNHZLVH
GLIIHUHQW GHJUHHV RI WKH RSSRVLWHV LQ HDFK RQWRORJLFDO SDLU WR WKH H[WHQW
WKDW WKHUH FDQ EH PXOWLSOH HQWLWLHV QRW RQO\ WZR LQWHUDFWLQJ ZLWK HDFK
RWKHULQHDFKSDLU
$QG VHFRQGO\ WKLV FRQFHSWLRQ RI VKRUWFXWV GR QRW LJQRUH RWKHU
SRVVLEOHHQWLWLHVLQLQWHUDFWLQJZLWKWKHWZRRSSRVLWHVZLWKWKHLUGLIIHUHQW
YHUVLRQVLQHDFKSDLU)RULQVWDQFHE\DQDORJ\WKHUHDUHQRWRQO\WKHWZR
FRORUV ZKLWH DQG EODFN DV RSSRVLWHV VLQFH WKHUH DUH RWKHU FRORUV WRR
EHVLGHVWKHPOLNH\HOORZJUHHQSXUSOHRUHOVH7KHVDPHORJLFFDQ
EH DSSOLHG WR HDFK RQWRORJLFDO SDLU LQ WKDW WKH\ DOVR LQWHUDFW ZLWK RWKHU
HQWLWLHVQRWZLWKRQO\WZRRIWKHPZLWKWKHLUGLIIHUHQWYHUVLRQV
7KHUHIRUH ZLWK WKHVH WZR FODULILFDWLRQV LQ PLQGHDFK SDLU LQ DQ
RQWRORJLFDO SULQFLSOH VHUYHV RQO\ DV DQ DEEUHYLDWLRQ IRU VRPHWKLQJ PRUH
FRPSOLFDWHG DQG WKHUHIRUH DOWKRXJK LW FRQWDLQV WZR RSSRVLWHV LW VKRXOG
QRWEHFRQIXVHGDVDGXDOLW\GXDOLVP
([LVWHQWLDO GLDOHFWLFV UHMHFWV DQ\ GXDOLVP RU GLFKRWRP\ DV WRRULJLG
DQG LQVWHDG DOORZV WKH PXOWLSOLFLW\ RI HQWLWLHV WR WKH H[WHQW WKDW EHWZHHQ
WKH WZR RSSRVLWHV LQ HDFK SDLU H[LVW PDQ\ RWKHU DOWHUQDWLYHV WR FKRRVH
IURP 7KH\ DUH QDPHG LQ WKDW VKRUW IRUP IRU DHVWKHWLF HOHJDQFH RQO\
LQVWHDGRIOLVWLQJDOOSRVVLEOHHQWLWLHVEHWZHHQWKHWZRRSSRVLWHVLQWKHWLWOH
ZKLFKZRXOGEHWRRFXPEHUVRPHDQGVRXQGH[WUHPHO\DZNZDUG
7R EH GLDOHFWLF LV WR JR EH\RQG DQ\ ULJLG GLFKRWRP\ DQG WUDQVFHQG
LQWRVRPHWKLQJGLIIHUHQWDOWRJHWKHULQWKHORQJKDXO2QHPD\EHWHPSWHG
WR FDOO WKH GLDOHFWLF ORJLF KHUH ZLWK D GLIIHUHQW QDPH OLNH H[LVWHQWLDO
PXOWLOHFWLFV LQVWHDG RI GLDOHFWLFV EXW WKLV QDPLQJ LV LQFRUUHFW RU
HYHQPLVOHDGLQJIRUWKHWZRUHDVRQVDIRUHVWDWHG
$IWHU DOO DOO WKH SRVVLEOH HQWLWLHV EHWZHHQ DQ\ WZR RSSRVLWHV LQ DQ
RQWRORJLFDO SDLU DUH VWLOO DERXW WKH WZR RSSRVLWHV DOWKRXJK HDFK
RQWRORJLFDOSDLUFRPHLQDOOVKDSHVDQGVL]HVZLWKGLIIHUHQWGHJUHHVDQG
GRQRWH[LVWE\WKHPVHOYHVEXWDOVRLQWHUDFWZLWKRWKHUHQWLWLHVXQOLNHWKHP
7KH YLUWXH RI UHYHDOLQJ DQ RQWRORJLFDO SDLU LV WR VKRZ KRZ WKH\ UHODWH
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
ZLWKLQ WKHPVHOYHV LQ PXOWLSOH YHUVLRQV DQG DOVR LQWHUDFW ZLWK RWKHUV
XQOLNHWKHPDOVRLQPXOWLSOHYHUVLRQV
7KLVZLOOEHFOHDULQDODWHUVXEVHFWLRQWLWOHGWKHGLDOHFWLFFRQVWUDLQWV
LPSRVHGE\WKHSULQFLSOHV
7KH3ULQFLSOHVDV)DPLO\5HVHPEODQFHV
,Q DGGLWLRQ HDFK RQWRORJLFDO SULQFLSOH LV JHQHULF ZLWK VRPH RWKHU
FRPSDUDEOH RQWRORJLFDO SDLUV WR EH SXW LQ WKH VDPH IDPLO\ OLNH D IDPLO\
UHVHPEODQFHDVVXPPDUL]HGLQ7DEOH
/XGZLJ :LWWJHQVWHLQ RQFH VXJJHVWHG WKH LGHD RI IDPLO\
UHVHPEODQFH LQ H[SODLQLQJ GLIIHUHQW JDPHV FODVVLILHG XQGHU WKH VDPH
IDPLO\FDOOHGJDPHV
:K\ VKRXOG IRU LQVWDQFH SOD\LQJ IRRWEDOO DQG FKHVV DV SOD\LQJ
JDPHVZKHQLWLVZHOOXQGHUVWRRGWKDWIRRWEDOOLVQRWWKHVDPHDVFKHVV"
7KHDQVZHULVWKDWDOWKRXJKHDFKJDPHLVGLIIHUHQWDQGKDVGLIIHUHQWUXOHV
PDQ\ RI WKHP WKRXJK QRW DOO VKDUH PRUH RU OHVV VRPH FRPPRQDOLWHV
HJVFRULQJDVQHFHVVDU\IRUZLQQLQJ
$QGWKLVLVVRHYHQWKRXJKVRPHJDPHVVKDUHPRUHWKDQVRPHRWKHUV
LQDQ\JLYHQVHOHFWLRQRIFULWLHULDDQGQRWZRJDPHVDUHH[DFWO\LGHQWLFDO
6R :LWWJHQVWHLQV SRLQW KHUH LV WKDW WKHUH LV QR HVVHQWLDO FRUH ZKLFK LV
FRPPRQ WR DOO JDPHV DQG WKH EHVW WKDW RQH FDQ ORRN IRU LV VRPH
FKDUDFWHULVWLFV ZKLFK DUH FRPPRQ WR PDQ\ EXW QRW DOO JDPHV $
%LOHW]NL
D$SSURSULDWH)DPLO\5HVHPEODQFHV
,QWKHFRQWH[WRIH[LVWHQWLDOGLDOHFWLFV,ZDQWWRGLVWLQJXLVKWZRW\SHV
RI IDPLO\ UHVHPEODQFHV DQG LQ WKH DEVHQFH RI EHWWHU ZRUGV OHW PH FDOO
WKHP D DSSURSULDWH IDPLO\ UHVHPEODQFHV DQG E LQDSSURSULDWH IDPLO\
UHVHPEODQFHV
,QUHJDUGWRDSSURSULDWHIDPLO\UHVHPEODQFHVJRRGH[DPSOHVLQFOXGH
VRPH RI WKH SDLUV DV DOUHDG\ H[SODLQHG LQ DQ HDUOLHU VHFWLRQ RQ VHOHFWLRQ
FULWHULDOLNHWKHIOH[LELOLW\LQIOH[LELOLW\SDLUZKLFKFDQEHSXWLQWKHIDPLO\
UHVHPEODQFH RI WKH VLPSOHQHVVFRPSOLFDWHGQHVV SULQFLSOH DOWKRXJK WKH
WZR SDLUV DUH QRW H[DFWO\ LGHQWLFDO /LNHZLVH WKH GLUHFWQHVVLQGLUHFWQHVV
SDLU FDQ EH SXW LQ WKH IDPLO\ UHVHPEODQFH RI WKH SUHFLVHQHVVYDJXHQHVV
SULQFLSOHDOWKRXJKDJDLQWKHWZRSDLUVDUHQRWH[DFWO\LGHQWLFDO
,Q WKLV VHQVH ZKLFK VSHFLILF SDLU LQ D IDPLO\ VKRXOG EH XVHG WR
GHVLJQDWHWKHQDPHRIWKHIDPLO\FDQEHDWWLPHVDELWDUELWUDU\EXW ZLWK
JRRGUHDVRQ
)RU LOOXVWUDWLRQ LQ WKH FRQWH[W RI PHWKRG WKH SDUWLDOLW\WRWDOLW\
SULQFLSOH FDQ WDNH WKH GLIIHUHQW IRUP OLNH LQGLYLGXDOLVWLFQHVVKROLVWLFQHVV
&KDSWHU,QWURGXFWLRQ7KH3UDFWLFHRI&XOLQDU\$UW
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
PHQWDOLOOQHVVHVLVRIWHQWUHDWHGQRWHTXDOO\E\RWKHUVZKRDUHQRUPDO
6RWKHUHODWLRQVKLSUHYHDOVWKHV\PPHWU\DV\PPHWU\SULQFLSOH
7KH QRUPDOLW\DEQRUPDOLW\ SDLU DOVR RYHUODSV ZLWK WKH GHQVLW\
HPSWLQHVVSULQFLSOHEHFDXVHEHLQJDEQRUPDOVD\IRUWKRVHZLWKPHQWDO
LOOQHVVHV LV RIWHQ QRW DV GHQVH LQ WKH RYHUDOO QRW ORFDO GLVWULEXWLRQ RI D
SRSXODWLRQ DV WKRVH ZKR DUH QRUPDO 6R WKH UHODWLRQVKLS UHYHDOV WKH
GHQVLW\HPSWLQHVVSULQFLSOH
7KH QRUPDOLW\DEQRUPDOLW\ SDLU DOVR RYHUODSV ZLWK WKH FRQYHQWLRQ
QRYHOW\ SULQFLSOH EHFDXVH EHLQJ DEQRUPDO VD\ IRU WKRVH ZLWK PHQWDO
LOOQHVVHV RIWHQ H[KLELWV QRQFRQYHQWLRQDO QRQFRQIRUPLVW LGHDV DQG
EHKDYLRUV ZKHQ FRQWUDVWHG ZLWK WKRVH ZKR DUH QRUPDO 6R WKH
UHODWLRQVKLSUHYHDOVWKHFRQYHQWLRQQRYHOW\SULQFLSOH
7KH QRUPDOLW\DEQRUPDOLW\ SDLU DOVR RYHUODSV ZLWK WKH VDPH
GLIIHUHQFHSULQFLSOHEHFDXVHEHLQJDEQRUPDOVD\IRUWKRVHZLWKPHQWDO
LOOQHVVHVVKDUHVVRPHVLPLODULWLHVLQRXWFRPH ZKHQFRPSDUHGZLWKWKRVH
ZKRDUHQRUPDOLQWKDWERWKFRQWULEXWHWRWKHFRQWURODQGUHJXODWLRQRI
KXPDQ WKRXJKWV DQG EHKDYLRUV LQ VRFLHW\ DOEHLW LQ GLIIHUHQW ZD\V <HW
EHLQJ DEQRUPDO DOVR KDV VRPHWKLQJ GLIIHUHQW IURP EHLQJ QRUPDO LQ
WKDW DEQRUPDO WKRXJKWV DQG EHKDYLRUV IROORZ D GLIIHUHQW SDWWHUQ ZKHQ
FRQWUDVWHG ZLWK WKRVH ZKLFK DUH QRUPDO 6R WKH UHODWLRQVKLS UHYHDOV WKH
VDPHGLIIHUHQFHSULQFLSOH
E 7KHUH LV D VSHFLDO FDVH RI FRPSRXQG IDPLO\ UHVHPEODQFHV DV
VXPPDUL]HGLQ7DEOHZKLFKFDQEHFDOOHGLQWKHDEVHQFHRIEHWWHU
ZRUGVRQHVLGHGDQGFRPSRXQGIDPLO\UHVHPEODQFHV
)RULQVWDQFHWKHH[WURYHUVLRQLQWURYHUVLRQSDLULVDJRRGH[DPSOHRI
RQHVLGHGDQGFRPSRXQGIDPLO\UHVHPEODQFHVEHFDXVHILUVWO\LWLVRQH
VLGHGLQEHLQJSDUWRIWKHVLGHFDWHJRU\RIQRUPDOLW\LQWKHQRUPDOLW\
DEQRUPDOLW\SDLUDQGVHFRQGO\WKHQRUPDOLW\DEQRUPDOLW\SDLULVLQWXUQ
FRPSRXQGHGEHFDXVHLWLVUHODWHGWRWKHV\PPHWU\DV\PPHWU\SULQFLSOH
WKHGHQVLW\HPSWLQHVVSULQFLSOHWKHFRQYHQWLRQQRYHOW\SULQFLSOHDQGWKH
VDPHGLIIHUHQFHSULQFLSOHDVDOUHDG\H[SODLQHGDERYH
E ,Q UHJDUG WR RQHVLGHG IDPLO\ UHVHPEODQFHVWKHUH DUH VRPH
SDLUVZKLFKDUHQRWDSSURSULDWHIRUDQRWKHUGLIIHUHQWUHDVRQEHFDXVHWKH\
IDLO WKH WHVW RI VHOHFWLRQ FULWHULD DV DOUHDG\ SRLQWHG RXW LQ DQ HDUOLHU
VHFWLRQHVSHFLDOO\LQUHODWLRQWRWKHFULWHULRQRIQRWEHLQJRQHVLGHGWKDW
LVSDUWRIRQHVLGHFDWHJRU\RIDGLDOHFWLFSDLU
)RU LQVWDQFH WKH H[WURYHUVLRQLQWURYHUVLRQ SDLU FDQQRW EH DQ
RQWRORJLFDOSULQFLSOHVLQFHLWLVSDUWRIWKHVLGHFDWHJRU\RIQRUPDOLW\
LQ WKH QRUPDOLW\DEQRUPDOWL\ SDLU EHFDXVH ERWK H[WURYHUVLRQ DQG
LQWURYHUVLRQDUHWZRGLIIHUHQWQRUPDOSHUVRQDOLW\WUDLWVLQSV\FKRORJ\
&KDSWHU,QWURGXFWLRQ7KH3UDFWLFHRI&XOLQDU\$UW
%\WKHVDPHORJLFWKHYLVLRQEOLQGQHVVSDLUDQGWKHVRXQGVLOHQFHSDLU
FDQQRW EH RQWRORJLFDO SULQFLSOHV EHFDXVH WKH SDLUV DUH SDUW RI WKH VLGH
FDWHJRU\ RI DV\PPHWU\ LQ WKH V\PPHWU\DV\PPHWU\ SULQFLSOH VLQFH
EHLQJDEOHWRVHHDQGKHDUIRUVRPHLQGLYLGXDOVDQGEHLQJXQDEOHWRVHHRU
KHDU IRU RWKHUV DUH WZR FRQWUDVWLYH DELOLWLHV LQ WKH ZRUOG RI DQLPDOV DQG
KXPDQVIRULQVWDQFH
7KHVH LOOXVWUDWLRQV RI LQGHTXDWH FRPSRXQG DQG RQHVLGHG IDPLO\
UHVHPEODQFHV VKRZ KRZ GLIILFXOW LW LV WR FRPH XS ZLWK DQ RQWRORJLFDO
SULQFLSOH LQ H[LVWHQWLDO GLDOHFWLFV RXW RI WKH EOXH EHFDXVH PDQ\ RI WKHP
YLRODWH WKH VHOHFWLRQ FULWHULD LQ RQH ZD\ RU WKH RWKHU ,W LV DOO WRR HDV\ WR
MRLQWZRRSSRVLQJZRUGVDQGVLPSO\PDNHWKHPLQWRDSDLUEXWLWLVDOOWRR
GLIILFXOW WR SDVV WKH WHVW RI WKH VHOHFWLRQ FULWHULD WR EH TXDOLILHG DV DQ
RQWRORJLFDOSULQFLSOHLQH[LVWHQWLDOGLDOHFWLFV
E$QGLQUHJDUGWRYDJXHIDPLO\UHVHPEODQFHVWKHUHDUHVRPH
SDLUV ZKLFKDUHQRWDSSURSULDWHIRUVWLOODQRWKHUGLIIHUHQWUHDVRQEHFDXVH
WKHWHUPVLQWKHSDLUVDUHYDJXHLQPHDQLQJVRWKDWWKH\DUHLQDSSURSULDWH
IDPLO\UHVHPEODQFHVLIGHILQHGLQVRPHSDUWLFXODUZD\VDOWKRXJKWKH\FDQ
EHDSSURSULDWHIDPLO\UHVHPEODQFHVLIGHILQHGLQRWKHUSDUWLFXODUZD\V
)RU LQVWDQFH VXFK SDLUV OLNH VKRUWQHVVORQJQHVV QDUURZQHVV
EURDGQHVV VPDOOQHVVODUJHQHVV VPDOOQHVVJUHDWQHVV PLFURQHVV
PDFURQHVV DQG OLWWOHQHVVPXFKQHVV FDQ EH XQGHUVWRRG LQ DW OHDVW WKUHH
GLIIHUHQW PHDQLQJV DQG WKXV KDYH WKUHH GLIIHUHQW SRVVLELOLWLHV 7KH ILUVW
SRVVLELOLW\LVWKDWWKH\DUHRQHVLGHGDVSDUWRIILQLWHQHVVLQWKHILQLWHQHVV
WUDQVILQLWHQHVV SULQFLSOH LI ERWK RSSRVLWHV DUH GHILQHG RQ D ILQLWH VFDOH
7KHVHFRQGSRVVLELOLW\LVWKDWWKH\DUHRQHVLGHGDVSDUWRIWUDQVILQLWHQHVV
LQWKHILQLWHQHVVWUDQVILQLWHQHVVSULQFLSOHLIERWKRSSRVLWHVDUHGHILQHGRQ
D WUDQVILQLWH VFDOH $QG WKH WKLUG SRVVLELOLW\ LV WKDW WKH\ DUH DSSURSULDWH
IDPLO\UHVHPEODQFHVLQUHODWLRQWRWKHILQLWHQHVVWUDQVILQLWHQHVVSULQFLSOHLI
RQHRSSRVLWHLVGHILQHGRQDILQLWHVFDOHDQGWKHRWKHURSSRVLWHLVGHILQHG
RQDWUDQVILQLWHVFDOH
2WKHU H[DPSOHV RI LQDSSURSULDWH IDPLO\ UHVHPEODQFHV DUH VKRZQ LQ
7DEOH RQ 7KH 6\QWD[ RI ([LVWHQWLDO 'LDOHFWLFV 9,, 7\SHV RI
,QDSSURSULDWH)DPLO\5HVHPEODQFHV
7KH'LDOHFWLF&RQVWUDLQWV,PSRVHGE\WKH3ULQFLSOHV
7KH SULQFLSOHV DV WKH\ FRQVWLWXWH WKH V\QWD[ RI H[LVWHQWLDO GLDOHFWLFV
DUH GLDOHFWLF LQ FKDUDFWHU VXFK WKDW ZKHQ WKH\ DUH DSSOLHG WKH\ LPSRVH
GLDOHFWLFFRQVWUDLQWVRQKRZUHDOLW\LVWREHXQGHUVWRRG
&RQVLGHU VD\ WKH V\PPHWU\DV\PPHWU\ SULQFLSOH DV DQ LOOXVWUDWLRQ
KHUH LQ RUGHU WR VXPPDUL]H WZR PDLQ FKDUDFWHUV RI WKH GLDOHFWLF
FRQVWUDLQWVLQTXHVWLRQDVVXPPDUL]HGLQ7DEOH
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
)LUVWO\ WR EH GLDOHFWLF KHUH LV WR JR EH\RQG WKH QDUURZ GLFKRWRPLHV
DQG IRU WKDW PDWWHU DQ\ ULJLG PXOWLGLPHQVLRQDO FODVVLILFDWRU\ VFKHPH
EHWKH\DERXWVHOIYVZRUOGIUHHGRPYVXQIUHHGRPEDUEDULW\
YVFLYLOL]DWLRQLQGLYLGXDOLW\YVFRPPXQDOLW\DQGVRRQ
2QH ZD\WRGRVRWRJREH\RQGLVWRFRQVLGHUWKHPDOOLQWHUPVRI
FRH[LVWHQFHZLWKRXWKHDYLO\IDYRULQJRQHRYHUWKHUHVW)RULQVWDQFHP\
WKHRU\RISRVWFLYLOL]DWLRQWREHVXPPDUL]HGODWHULQWKHVHFWLRQRQWKH
SUDJPDWLFV RI H[LVWHQWLDO GLDOHFWLFV LV WR JR EH\RQG EDUEDULW\ DQG
FLYLOL]DWLRQ LQ WHUPV RI XQGHUVWDQGLQJ EDUEDULW\ DQG FLYLOL]DWLRQ DV EHLQJ
FRH[LVWHQW
$QG WKH VDPH ORJLF FDQ EH VDLG LQ UHODWLRQ WR P\ WKHRULHV RI SRVW
GHPRFUDF\ SRVWFDSLWDOVP DQG RWKHUV DOVR WR EH LQWURGXFHG ODWHU LQ
WKH VHFWLRQ RQ WKH SUDJPDWLFV RI H[LVWHQWLDO GLDOHFWLFV LQ UHJDUG WR
IUHHGRP YV XQIUHHGRP HTXDOLW\ YV LQHTXDOLW\ FRPPXQDOLW\ YV
LQGLYLGXDOLW\VSLULWXDOLW\YVPDWHULDOLW\DQGVRRQ
%XWWRFRQVLGHUWKHPDOOLQWKHGLFKRWRPLHVDQGIRUWKDWPDWWHULQ
DQ\ULJLGPXOWLGLPHQVLRQDOFODVVLIDFWRU\VFKHPHDVFRH[LVWHQWLVQRWWKH
VDPHDVWRLPSO\WKDWWKHRSSRVLQJFDWHJRULHVLQDQ\FODVVLILFDWRU\VFKHPH
DUH DOO HTXDO VLQFH LQ DFFRUGDQFH WR WKH V\PPHWU\DV\PPHWU\ SULQFLSOH
DVDQLOOXVWUDWLRQKHUHLIWKH\DUHHTXDOLQWHUPVRIEHLQJFRQVLGHUHGDV
FRH[LVWHQW WKH\ DUH DV\PPHWULF LQ WHUPV RI EHLQJ XQHTXDO LQ GLDOHFWLF
LQWHUDFWLRQHJ;FDQEHPRUHGRPLQDQWWKDQ<LQFDVH$RU<LVPRUH
GRPLQDQWWKDQ;LQFDVH%DOWKRXJKLQ VRPHVSHFLDOFDVHVWKH\FDQEH
UHODWLYHO\HTXDOHJ;DQG<DUHUHODWLYHO\HTXDOLQFDVH&
)RUWKLVUHDVRQWKHUHDUHGLIIHUHQWYHUVLRQVRISRVWGHPRFUDF\DQG
SRVWFDSLWDOLVP LQ P\ WKHRULHV $V DQ LOOXVWUDWLRQ LQ YHUVLRQ , RI WKH
WKHRU\ RI SRVWGHPRFUDF\ IUHHGRP LV PRUH GRPLQDQW WKDQ HTXDOLW\
ZKHUHDVLQYHUVLRQ,,RIWKHWKHRU\RISRVWGHPRFUDF\HTXDOLW\LVPRUHVR
WKDQIUHHGRP
%XW WKLV ; PRUH WKDQ < KDV WR EH XQGHUVWRRG LQ WKH FRQWH[W RI
GLDOHFWLF ORJLF QRW LQ V\PEROLF ORJLF DV FRQYHQWLRQDOO\ XQGHUVWRRG LQ
WKDWERWK;DQG<DUHLPSRUWDQWLQSRVWGHPRFUDF\LQWKHFRQWH[WRI
GLDOHFWLFORJLFEXWLQDQDV\PPHWU\ZD\
%\FRQWUDVWLQV\PEROLFORJLFLWRIWHQIDYRUVRQHRYHUWKHRWKHUEH
LW LQ UHJDUG WR SULYLOHJLQJ IUHHGRP RYHU HTXDOLW\ LQ )DVFLVP IDYRULQJ
IUHHGRPUHODWLYHO\PRUHWKDQHTXDOLW\LQ/LEHUDO'HPRFUDF\RUIDYRULQJ
HTXDOLW\UHODWLYHO\PRUHWKDQIUHHGRPLQ6RFLDOLVW'HPRFUDF\,QUHJDUG
WR WKH ODWWHU WZR FDVHV DERXW /LEHUDO 'HPRFUDF\ DQG 6RFLDOLVW
'HPRFUDF\WKHGLIIHUHQFHEHWZHHQGLDOHFWLFORJLFDQGV\PEROLFORJLFFDQ
EHRQHLQGHJUHHQRWLQNLQGLQWKLVVHQVHDOEHLWQRWLQRWKHUVHQVHV
&KDSWHU,QWURGXFWLRQ7KH3UDFWLFHRI&XOLQDU\$UW
7KH VDPH UHDVRQLQJ FDQ EH VDLG DERXW WKH UHODWRQVKLSV EHWZHHQ
LQGLYLGXDOLW\ DQG FRPPXQDOLW\ EHWZHHQ VSLULWXDOLW\ DQG PDWHULDOLW\ DQG
EHWZHHQIRUPDOOHJDOLVPDQGLQIRUPDOOHJDOLVPLQWKHGLIIHUHQWYHUVLRQVRI
P\WKHRU\RISRVWFDSLWDOLVP
6HFRQGO\WREHGLDOHFWLFLVWRJREH\RQGWKHQDUURZGLFKRWRPLHVDQG
IRU WKDW PDWWHU DQ\ ULJLG PXOWLGLPHQVLRQDO FODVVLILFDWRU\ VFKHPH LQ
DQRWKHU ZD\ WKLV WLPH LQ D WUDQVFHQGHQW ZD\ WKDW LV LQ H[SORULQJ RWKHU
SRVVLELOLWLHV RU HYHQ RWKHU LVVXHV QRW FRQVLGHUHG ZLWKLQ WKH QDUURZ
FRQILQHV RI QDUURZ GLFKRWRPLHV DQG IRU WKDW PDWWHU DQ\ ULJLG PXOWL
GLPHQVLRQDOFODVVLILFDWRU\VFKHPH
$V DQ DQDORJ\ LQ WKLV VHFRQG PHDQLQJ WR JR EH\RQG WKH QDUURZ
GLFKRWRP\ RI EODFN YV ZKLWH LV QRW MXVW WR FKRRVH ERWK EODFN DQG
ZKLWH DV LQ WKH ILUVW PHDQLQJ EXW DOVR WR H[SORUH RWKHU RSWLRQV HJ
JUHHQ SXUSOH EOXH HWFDQG DOWHUQDWLYHO\ VKDGH OLQH
FXUYHHWF
%\ WKH VDPH UHDVRQLQJ WR JR EH\RQG GHPRFUDF\ LV WR WUDQVFHQG
GHPRFUDF\ DV LQ YHUVLRQ ,,, RI P\ WKHRU\ RI SRVWGHPRFUDF\ DQG WR
H[SORUH RWKHU SRVVLELOWLHV RI OLIHIRUPV HJ IORDWLQJ FRQVFLRXVQHVV
K\SHUVSDWLDO FRQVFLRXVQHVV HWF WR OLYH EH\RQG WKH QDUURZ REVHVVLRQ
ZLWKIUHHGRPDQGHTXDOLW\
7KLV GLDOHFWLF FKDUDFWHU RI WKH SULQFLSOHV LQ H[LVWHQWLDO GLDOHFWLFV KDV
LPSRUWDQWLPSOLFDWLRQVIRUWKHSUDJPDWLFVRIH[LVWHQWLDOGLDOHFWLFVDVZLOO
EHFOHDUVKRUWO\LQWKHVHFWLRQRQWKHSUDJPDWLFVRIH[LVWHQWLDOGLDOHFWLFV
7KH6HPDQWLFVRI([LVWHQWLDO'LDOHFWLFVRU,WV2QWRVHPDQWLFV
7KH V\QWD[ RI H[LVWHQWLDO GLDOHFWLFV VR XQGHUVWRRG LQ WHUPV RI
RQWRORJLFDOSULQFLSOHVRQO\JLYHVXVWKHVWUXFWXUHRIRQWRORJ\LQWKHZRUOG
LQDQDEVWUDFWJHQHUDO VHQVH7KHVHSULQFLSOHVE\WKHPVHOYHVGR QRWWHOO
XVWKHVSHFLILFPHDQLQJVLQDJLYHQFRQWH[W
,Q RUGHU WR JUDVS WKH VSHFLILF PHDQLQJV RI WKH SULQFLSOHV LQ D JLYHQ
FRQWH[WLWLVQHFHVVDU\WRVWXG\WKHVHPDQWLFVRIH[LVWHQWLDOGLDOHFWLFVDV
VXPPDUL]HGLQ7DEOH
$QGWKHDQDO\VLVRIWKHRQWRORJLFDOSULQFLSOHVDVIDPLO\UHVHPEODQFHV
LQWKHSUHYLRXVVHFWLRQRQV\QWD[LVRQO\DVWDUWLQJSRLQWDQGWKXVRYHUODSV
DELWZLWKWKHVHPDQWLFVRIH[LVWHQWLDOGLDOHFWLFVKHUH
)RU WKLV UHDVRQ , KDYH RIWHQ JRQH WR JUHDW OHQJWKV LQ P\ SUHYLRXV
ERRNV RQ GLIIHUHQW VXEMHFWV WR H[SODLQ WKH VSHFLILF PHDQLQJV RI WKH
SULQFLSOHVZKHQDSSOLHGLQGLIIHUHQWFRQWH[WV
&RQVLGHU WZR H[DPSOHV EHORZ IRU LOOXVWUDWLRQ ZKLFK DUH QRW
H[KDXVWLYH
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
,Q )3+67 IRU LQVWDQFH , XVHG WKH ILUVW WKUHH SULQFLSOHV LH WKH
FKDQJHFRQVWDQF\ SULQFLSOH WKH UHJUHVVLRQSURJUHVVLRQ SULQFLSOH DQG WKH
V\PPHWU\DV\PPHWU\ SULQFLSOH WR SURSRVH WKH SHUVSHFWLYDO WKHRU\ RI
VSDFHWLPH IRU D EHWWHU ZD\ WR XQGHUVWDQG VSDFH DQG WLPHHVSHFLDOO\
WKRXJK QRW H[FOXVLYHO\ LQ UHODWLRQ WR IXWXUH SRVWKXPDQ KLVWRU\ DV
VXPPDUL]HGLQ7DEOH7DEOH7DEOHDQG7DEOH
,Q VR GRLQJ , KDG WR LQWURGXFH FRQFHSWV DQG WKHRULHV VSHFLILF WR WKH
ILHOG RI SK\VLFV DQG RWKHU UHODWHG ILHOGV HJ DEVROXWH VSDFH DQG
DEVROXWHWLPHLQFODVVLFDOPHFKDQLFVDQGUHODWLYHVSDFHWLPHLQWKH
WKHRU\RIUHODWLYLW\
$QG LQ %11 , DOVR H[SORLWHG WKH WKUHH SULQFLSOHV WR SURSRVH WKH
WUDQVFHQGHQWDSSURDFKWRWKHVWXG\RIJHQHVDQGPHPHVDVDQHZZD\WR
XQGHUVWDQGWKHLQWHUDFWLRQEHWZHHQQDWXUHDQGQXUWXUH
,Q VR GRLQJ , KDG WR H[SORUH FRQFHSWV DQG WKHRULHV LQ WKH ZRUOG RI
HYROXWLRQDU\ ELRORJ\ HJ PXWDWLRQ YDULDWLRQ DGDSWDWLRQ
VHOHFWLRQDQGLQKHULWDQFHLQFODVVLFDOHYROXWLRQDU\WKHRU\DQGQHXUDO
ELRORJ\ HJ FKURPRVRPH JHQH '1$ 51$ SURWHLQ
QHXURQQHXUDOQHWZRUNDQGEHKDYLRU
2WKHU H[DPSOHV EHVLGHV WKHVH WZR KHUH DUH JLYHQ LQ RWKHU ERRNV RI
PLQHRQGLIIHUHQWWRSLFV
7KHUHIRUH WKLV VHPDQWLF GLPHQVLRQ RI H[LVWHQWLDO GLDOHFWLFV LV
LPSRUWDQWVLQFHLQHDFKRIP\ERRNVZKHQWKHRQWRORJLFDOSULQFLSOHVDUH
XVHG HDFK SULQFLSOH EHFRPHV UHOHYDQW LQ D GLIIHUHQW PHDQLQJ ZKHQ
FRQWH[WXDOL]HGZLWKLQDJLYHQFDVHVWXG\LQTXHVWLRQ
,Q WKLV ERRN IRU LQVWDQFH WKH SULQFLSOHV DUH UHOHYDQW LQ UHODWLRQ WR D
GLIIHUHQW VXEMHFW PDWWHU DV VXPPDUL]HG LQ WKH FRQFOXGLQJ FKDSWHU DQG
WKH\FDQEHVKRZQLQDOOVKDSHVDQGVL]HVVLQFHWKH\DUHDOVRWREHWUHDWHG
DV VKRUW FXWV DV LQGLFDWHG EHIRUH ZLWKRXW KRZHYHU EHLQJ UHGXFHG WR
VSHFLILF RQWRORJ\ DV RSSRVHG WR JHQHUDO RQWRORJ\ DV H[SODLQHG LQ
7DEOH
,Q WKH WHFKQLFDO MDUJRQV RI VHPDQWLFV WKHVH H[HUFLVHV SHUIRUP WZR
HVVHQWLDO IXQFWLRQV RI WUDQVODWLRQ RU LQWHUSUHWDWLRQ QDPHO\ D
LQWHQVLYH LQWHUSUHWDWLRQ DERXW WKH SURSHUWLHV RU UHODWLRQV RI WKH
SULQFLSOHV LQ H[LVWHQWLDO GLDOHFWLFV DQG E H[WHQVLYH LQWHUSUHWDWLRQ
DERXW WKH FODVVHV RU FDVHV WR ZKLFK WKH SURSHUWLHV DQG UHODWLRQV RI WKH
SULQFLSOHVLQH[LVWHQWLDOGLDOHFWLFVDUHDSSOLHG:.RR
%XWWKHUHDUHOLPLWVRIWUDQVODWLRQRULQWHUSUHWDWLRQDQGDQH[FHOOHQW
H[DPSOHLVWKDWWKHUHLVDSUREOHPZLWKWKH
REMHFWLYLW\
RIWUDQVODWLRQDVLW
LVUHODWLYHWRGLIIHUHQWFXOWXUDORUVXEFXOWXUDOFRQWH[WV)RULQVWDQFHRQH
RI WKH VWLOO XQUHVROYHG SUREOHPV LQ OLQJXLVWLFV LV
,V WKHUH DQ REMHFWLYH
JDXJHIRUWKHTXDOLW\RIWUDQVODWLRQ"
)3+&20 :.SS$QGWKH
&KDSWHU,QWURGXFWLRQ7KH3UDFWLFHRI&XOLQDU\$UW
SUREOHPV RI UDGLFDO WUDQVODWLRQ E\ : 9 4XLQH DQG UDGLFDO
LQWHUSUHWDWLRQE\'RQDOG'DYLGVRQDUHDQRWKHUZHOONQRZQH[DPSOHVDV
DOUHDG\GLVFXVVHGLQ)3+6(0
7KLV LV RQH VHULRXV SUREOHP DERXW WKH ORJLF RI WUDQVODWLRQ DQG
LQWHUSUHWDWLRQWKDW,DOUHDG\DGGUHVVHGLQ6HFRI)3+6(06HF
RI )3+&20 DQG DOVR IRU WKDW PDWWHU LQ )+& LQ WKH FRQWH[W RI
KHUPHQHXWLFV
7KH3UDJPDWLFVRI([LVWHQWLDO'LDOHFWLFVRU,WV
2QWRSUDJPDWLFV
(YHQ WKH VHPDQWLFV RI H[LVWHQWLDO GLDOHFWLFV LV QRW HQRXJK WR
XQGHUVWDQGUHDOLW\VLQFHVHPDQWLFVE\LWVHOIGRHVQRWWHOOXVWKHQDWXUHRI
LQWHQWLRQDOLW\ DQG LQWHUHVWV LQ UHODWLRQ WR WKH PDWUL[ RI SRZHU IRUPDWLRQV
DQG FRQIOLFWLQJ LQWHUHVWV ZKHQ H[LVWHQWLDO GLDOHFWLFV DV DQ RQWRORJ\ LV
DSSOLHG
6XUHO\ RQH FDQQRW FRPSOHWHO\ VHSDUDWH WKH SUDJPDWLFV RI H[LVWHQWLDO
GLDOHFWLFVIURPLWVVHPDQWLFVDQGIRUWKDWPDWWHULWVV\QWD[EXWWKHSRLQW
KHUHLVWRJLYHHDFKDPRUHHODERUDWHGDQDO\VLV
)RU WKLV UHDVRQ WKH SUDJPDWLFV RI H[LVWHQWLDO GLDOHFWLFV QHHGV WR EH
VWXGLHG WRR LQ VSHFLDO UHODWLRQ WR WKH LQFOXVLRQ RI SRZHU IRUPDWLRQ DQG
FRQIOLFWLQJ LQWHUHVWV LQ WKH DSSOLFDWLRQ RI WKH SULQFLSOHV RI H[LVWHQWLDO
GLDOHFWLFVDVVXPPDUL]HGLQ7DEOH
,W LV WKXV QR ZRQGHU WKDW DOO P\ SUHYLRXV ERRNV KDYH VKRZQ LQ
GLIIHUHQW ZD\V KRZ DQG ZK\ WKHVH RQWRORJLFDO SULQFLSOHV DQG WKHLU
WKHRUHWLFDODSSOLFDWLRQVFDQUHYHDOWKHIXWXUHZRUOGWRFRPHLQDZD\WKDW
KXPDQV KDYH QHYHU NQRZQ LQ D WRWDOO\ GLIIHUHQW EDWWOHJURXQG IRU
FRPSHWLQJ KXPDQ DQG ODWHU SRVWKXPDQ LQWHUHVWV E\ P\ULDG JURXSV
ILJKWLQJIRUWKHLURZQYHUVLRQVRIKHJHPRQ\
3HUKDSV D VXPPDU\ RI P\ SUHYLRXV ZRUNV LQ UHODWLRQ WR H[LVWHQWLDO
GLDOHFWLFVDQGWKHLUFRQWULEXWLRQVWRP\QHZWKHRULHVDVSURSRVHGRYHUWKH
\HDUV LV GHHPHG UHYHDOLQJ KHUH IRU WKH IXUWKHU XQGHUVWDQGLQJ RI WKH
SUDJPDWLFV RI H[LVWHQWLDO GLDOHFWLFV LQ FORVH UHODWLRQ WR WKH VHPDQWLFV RI
H[LVWHQWLDOGLDOHFWLFVWRR
7KDW VWUHVVHGWKH IROORZLQJ VXPPDU\ LQ IRXU VXEVHFWLRQV LV
VRPHWKLQJWKDW,RIWHQGRLQP\SUHYLRXVERRNVWRRDVDZD\WRLQWURGXFH
WKHLQWHOOHFWXDOEDFNJURXQGRIP\LGHDV
6RIRUWKRVHUHDGHUVZKRKDGUHDGP\SUHYLRXVZRUNVWKHIROORZLQJ
VXEVHFWLRQV VHUYH DV D UHPLQGHU DV WKH\ DUH UHSHDWHG KHUHDIWHU RIWHQ
YHUEDWLPZLWKRQO\VRPHXSGDWHGFKDQJHVZLWKWKHUHVWNHSWLQWDFW
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
&KDSWHU,QWURGXFWLRQ7KH3UDFWLFHRI&XOLQDU\$UW
UHDOLW\ E\ ZD\ RI VRPH RQWRORJLFDO SULQFLSOHV DQG WKH FRPSUHKHQVLYH
SHUVSHFWLYHVRIWKHPLQGQDWXUHVRFLHW\DQGFXOWXUHZKLOHDOORZLQJIRU
KHWHURJHQHLW\FRQIOLFWVXEMHFWLYLW\DQGFRPSOH[LW\IRUH[DPSOH
:LWKWKLVJUDQGSURMHFWLQPLQGWKHVXPPDU\RIP\VSHFLILFWKHRULHV
RQ PHWDWKHRU\ DUH JLYHQ LQ WKLV VHFWLRQ RQ H[LVWHQWLDO GLDOHFWLFV DQG
WKHQH[WRQVRSKLVWLFDWHGPHWKRGRORJLFDOKROLVPZKHUHDVWKHVSHFLILF
WKHRULHV RQ WKHRU\ ZLOO EH VXPPDUL]HG LQ WKH IROORZLQJ FDWHJRULHV RI D
VRFLHW\ E FXOWXUH F WKH PLQG G QDWXUH DQG H WKH UHVW DV VKRZQ
EHORZLQWKDWRUGHU
D6RFLHW\
7KH FDWHJRU\ RI VRFLHW\ KHUH FDQ EH GLYLGHG LQWR IRXU VXE
FDWHJRULHV LH D VRFLDO RUJDQL]DWLRQV D VRFLDO LQVWLWXWLRQV D
VRFLDOVWUXFWXUHDQGDVRFLDOV\VWHPVRUWUHQGV
D6RFLDO2UJDQL]DWLRQV
,Q UHODWLRQ WR VRFLDO RUJDQL]DWLRQV , SURSRVHG D QHZ WKHVLV RQ WKH
DPELYDOHQW QDWXUH RI YLUWXDO RUJDQL]DWLRQV LQ WKH IXWXUH NQRZQ DV WKH
WKHRU\RIHFLYLFDOLHQDWLRQLQ)&'DQGVXPPDUL]HGLQ7DEOH
$QG LQ )3+2 DQRWKHU WKHRU\ FDOOHG WKH FRPELQDWLRQDO WKHRU\ RI
RUJDQL]DWLRQ ZDV ZRUNHG RXW DOWKRXJK LW ZDV ILUVW SURSRVHG LQ &K RI
$/'
D6RFLDO,QVWLWXWLRQV
7KHUH DUH GLIIHUHQW VRFLDO LQVWLWXWLRQV EH WKH\ DERXW D SROLWLFV
D HFRQRPLFV D PLOLWDU\ DIIDLUV D PDVV PHGLD D ODZ
DHGXFDWLRQDQGDJDPEOLQJIRULQVWDQFH
D ,Q UHODWLRQ WR SROLWLFV , RIIHUHG GLIIHUHQW YLVLRQV RQ D
SROLWLFDO WKHRU\ D FRPSDUDWLYH SROLWLFV DQG D LQWHUQDWLRQDO
UHODWLRQVWRFLWHWKUHHPDLQRQHV
D ,Q WKH FRQWH[W RI SROLWLFDO WKHRU\ P\ YLVLRQ RI D SDWK
EUHDNLQJ SROLWLFDO V\VWHP LQ IXWXUH WLPHV FRQFHUQV WKH GLIIHUHQW IRUPV RI
SRVWGHPRFUDF\WRVXSHUVHGHGHPRFUDF\XQWRWKHSRVWKXPDQDJH
0\ YLVLRQ RI SRVWGHPRFUDF\ ZDV FDOOHG WKH WKHRU\ RI SRVW
GHPRFUDF\ DV VXPPDUL]HG LQ 7DEOH 7DEOH DQG 7DEOH
ZKHUHDV 7DEOH H[SODLQV WKH GLVWLQFWLRQV DPRQJ GHPRFUDF\ QRQ
GHPRFUDF\DQGSRVWGHPRFUDF\
$QG7DEOHVWUHVVHVWKHPXOWLSOHFDXVHVRIWKHHPHUJHQFHRISRVW
GHPRFUDF\ZKLOH7DEOHFODULILHVVRPHSRVVLEOHPLVXQGHUVWDQGLQJVLQ
UHJDUGWRSRVWFDSLWDOLVPDQGSRVWGHPRFUDF\
D,QWKHFRQWH[WRIFRPSDUDWLYHSROLWLFV,DOVRVKRZHGLQ$/'
KRZ DQG ZK\ DXWKRULWDULDQLVP FDQ EH DQ DGYDQFHG IRUP RI OLEHUDO
GHPRFUDF\MXVWDVLWKDVLWVRZQFRXQWHUSDUWLQQRQOLEHUDOGHPRFUDF\RU
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
ZKDW,RULJLQDOO\FDOOHGDXWKRULWDULDQOLEHUDOGHPRFUDF\DVVXPPDUL]HG
LQ7DEOHEHIRUHLWLVWREHVXSHUFHGHGE\SRVWGHPRFUDF\
D ,Q WKH FRQWH[W RI LQWHUQDWLRQDO UHODWLRQV ERWK DW WKH
LQVWLWXWLRQDO DQG VWUXFWXUDO OHYHOV , SURYLGHG LQ %:7 WKH WKHRU\ RI
F\FOLFDO SURJUHVVLRQ RI HPSLUHEXLOGLQJ IRU D EHWWHU ZD\ WR XQGHUVWDQG
WKHORJLFRIHPSLUHEXLOGLQJRQHDUWKDQGEH\RQGZLWKWKHULVHRIZKDW,
RULJLQDOO\ HQYLVLRQHG DV K\SHUHPSLUHV OLNH WKH &KLQHVH 8QLRQ DQG
WKH,QGLDQ8QLRQPHVRHPSLUHVOLNHWKH(XURSHDQ8QLRQDQGWKH
1RUWK $PHULFDQ 8QLRQ DQG PLFURHPSLUHV OLNH WKH 0LGGOH (DVWHUQ
8QLRQ DQG WKH /DWLQ $PHULFDQ 8QLRQ LQ WKH FRPLQJ SRVWSRVW&ROG
:DUHUDDVDYLVLRQDU\LOOXVWUDWLRQDVVXPPDUL]HGLQ7DEOH
7KLV LV DOVR UHODWHG WR WKH LVVXHV RI VRFLDO VWUXFWXUH LQ D
PLJUDWLRQ LQ D LGHQWLW\ LQ E DQG JHRJUDSK\ LQ G IRU
LQVWDQFH
,Q DGGLWLRQ LQ )3+:3 , SURSRVHG WKH PXOWLIDFHWHG WKHRU\ RI ZDU
DQGSHDFHWRXQGHUVWDQGZDUDQGSHDFHLQDVPDOOVHQVHRUDJJUHVVLRQ
DQGSDFLILFLW\LQDEURDGVHQVH
D,QUHODWLRQWRHFRQRPLFV,DOVRRIIHUHGDQRWKHUYLVLRQWKLVWLPH
WRXQGHUVWDQGWKHIXWXUHIRUPVRIHFRQRPLFV\VWHPVWKDWLVWKHGLIIHUHQW
IRUPV RI SRVWFDSLWDOLVP WR VXSHUVHGH FDSLWDOLVP XQWR WKH SRVWKXPDQ
DJH
0\ YLVLRQ RI SRVWFDSLWDOLVP ZDV UHIHUUHG WR LQ )&' %'3' DQG
%&3& DV WKH WKHRU\ RI SRVWFDSLWDOLVP DV VXPPDUL]HG LQ 7DEOH
7DEOH 7DEOH 7DEOH DQG 7DEOH $QG 7DEOH
FODULILHV WKH GLIIHUHQFHV DPRQJ FDSLWDOLVP QRQFDSLWDOLVP DQG SRVW
FDSLWDOLVPZKHUHDV7DEOHVKRZVPXOWLSOHFDXVHVRIWKHHPHUJHQFHRI
SRVWFDSLWDOLVP
7KLV YLVLRQ RQ SRVWFDSLWDOLVP FRQVWLWXWHV WKH WKLUG WKHRUHWLFDO
DSSOLFDWLRQ RI H[LVWHQWLDO GLDOHFWLFV WKLV WLPH LQ WKDW WKHUH LV QR ZHDOWK
ZLWKRXWSRYHUW\RUWKHZHDOWKSRYHUW\GLDOHFWLFV
D,QUHODWLRQWRPLOLWDU\DIIDLUV,DOVRSURSRVHGWKHPXOWLIDFHWHG
WKHRU\ RI ZDU DQG SHDFH LQ )&' DOWKRXJK LW ZDV ILUVW VR ODEHOHG LQ
)3+. IRU D QHZ ZD\ WR XQGHUVWDQG WKH FDXVHV RI ZDUDQG IRU WKDW
PDWWHUWKHULVHDQGIDOORIGLIIHUHQWIRUPVRIZDUIDUHRYHUWLPH
7KLV WKHRU\ ZDV IXUWKHU H[SDQGHG LQ )3+:3 ZKHUH , VXJJHVWHG D
QHZ ZD\ WR XQGHUVWDQG ZDU DQG SHDFH LQ D VPDOO VHQVHRU DJJUHVVLRQ
DQGSDFLILFLW\LQDEURDGVHQVH
D,QUHODWLRQWRPDVVPHGLD,DOVRSURSRVHGWKHWRWDOLVWLFWKHRU\
RIFRPPXQLFDWLRQLQ7KH)XWXUHRI3RVW+XPDQ0DVV0HGLDRULQVKRUW
)3+00
&KDSWHU,QWURGXFWLRQ7KH3UDFWLFHRI&XOLQDU\$UW
D,QUHODWLRQWRODZ,DOVRSURSRVHGWKHUHFRQVWUXFWLRQWKHRU\RI
ODZ LQ 7KH )XWXUH RI 3RVW+XPDQ /DZ RU LQ VKRUW )3+/$: $QG LQ
UHODWLRQWRFULPLQDOLW\,SURSRVHGWKHUHIOHFWLYHWKHRU\RIFULPLQDOLW\LQ
)3+&5,0IRUDGLIIHUHQWZD\WRXQGHUVWDQGKHURHVDQGYLOODLQV
D ,Q UHODWLRQ WR HGXFDWLRQ , SURSRVHG WKH KHWHURGR[ WKHRU\ RI
HGXFDWLRQ LQ 7KH )XWXUH RI 3RVW+XPDQ (GXFDWLRQ RU LQ VKRUW
)3+('8
D$QGLQUHODWLRQWRJDPEOLQJ,SURSRVHGWKHGHWDFKHGWKHRU\RI
JDPEOLQJ LQ 7KH )XWXUH RI 3RVW+XPDQ *DPEOLQJ RU LQ VKRUW
)3+*$0
D6RFLDO6WUXFWXUH
,QUHODWLRQWRVRFLDOVWUXFWXUH,ILUVWSURSRVHGWZRDGGLWLRQDOWKHRULHV
WKDWLVWKHWKHRU\RIWKHF\FOLFDOSURJUHVVLRQRIKHJHPRQ\LQ)&'DQG
DOVRLQ)3+&DQG%'3'DQGWKHWKHRU\RIWKHF\FOLFDOSURJUHVVLRQRI
HPSLUHEXLOGLQJ LQ %:7 DV DOUHDG\ LQGLFDWHG DERYHZLWK LPSRUWDQW
LPSOLFDWLRQV IRU WKH V\PPHWU\DV\PPHWU\ SULQFSOH LQ H[LVWHQWLDO
GLDOHFWLFVMXVWWRFLWHRQHH[DPSOH
,QDGGLWLRQWKLVLVDOVRUHODWHGWRWKHLVVXHVRIPLJUDWLRQLQD
LGHQWLW\LQEDQGJHRJUDSK\LQGIRULQVWDQFH
7KHQ LQ %11 , SURSRVHG DQRWKHU WKHRU\ QDPHO\ WKH WKHRU\ RI
FRQWUDVWLYHDGYDQWDJHVWRXQGHUVWDQGWKHSHUVLVWHQFHRIVRFLDOVWUXFWXUHE\
JHQGHUUDFHHWKQLFLW\RUDQ\RWKHUJURXSLQJV
D6RFLDO6\VWHPVRU7UHQGV
,Q UHODWLRQ WR VRFLDO V\VWHPV WKHUH DUH VHYHUDO VXEFDWHJRULHV IRU
LOOXVWUDWLRQ ZKLFK FDQ EH DERXW D XUEDQL]DWLRQ D WHFKQRORJ\
DGHPRJUDSK\DWKHHQYLURQPHQWDVRFLDOWUHQGVDVDZKROH
ZKLFKDOVRLQFOXGHWKHFXUUHQWSKHQRPHQRQRIJOREDOL]DWLRQDQGD
PLJUDWLRQ
D,QUHODWLRQWRXUEDQL]DWLRQ,SURSRVHGWKHFRQWLQJHQWWKHRU\RI
XUEDQ SODQQLQJ LQ )3+83 IRU D QHZ ZD\ WR XQGHUVWDQG GHQVLW\ DQG
YRLGZKLFKLVDOVRUHODWHGWRWKHLVVXHVRI VRFLDOWUHQGVHVSHFLDOO\LQ
UHODWLRQWRJOREDOL]DWLRQLQDPLJUDWLRQLQDDQGLGHQWLW\LQ
E
D,QUHODWLRQWRWHFKQRORJ\,ZRUNHGRXWWKHDPELYDOHQWWKHRU\
RI WHFKQRORJ\ LQ )3+( IRU D QHZ ZD\ WR XQGHUVWDQG WKH QDWXUH RI
WHFKQRORJ\
6RPH RWKHU ERRNV OLNH )3+00 )$( )&' DQG )+& DOVR GHDO
ZLWK WHFKQRORJ\ DQG D JRRG H[DPSOH FRQFHUQV WKH V\QWKHWLF WKHRU\ RI
LQIRUPDWLRQDUFKLWHFWXUHLQ),$RQWD[RQRP\QHWZRUNDQGLQWHOOLJHQFH
LQFRQMXQFWLRQZLWKWKHULVHRIWHFKQRORJ\
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
SRVWKXPDQ
KLVWRU\ ZLWK WKH WHUP
SRVWKXPDQ
RULJLQDOO\ XVHG LQ P\
GRFWRUDO GLVVHUWDWLRQ DW 0,7 ZKLFK ZDV ILQLVKHG LQ 1RYHPEHU
XQGHU WKH WLWOH $IWHU 3RVWPRGHUQLW\ VWLOO DYDLODEOH DW 0,7 OLEUDU\ DQG
ZDVODWHUUHYLVHGDQGSXEOLVKHGDV)+&7KHSRVWKXPDQKLVWRU\ZLOOEH
&KDSWHU,QWURGXFWLRQ7KH3UDFWLFHRI&XOLQDU\$UW
VXFKWKDWKXPDQVDUHQRWKLQJLQWKHHQGRWKHUWKDQZKDWFXOWXUHVRFLHW\
DQG QDWXUH ZLWK VRPH OXFN KDYH VKDSHG WKHP LQWR WR EH HYHQWXDOO\
VXSHUVHGHGE\SRVWKXPDQVHJF\ERUJVWKLQNLQJPDFKLQHVJHQHWLFDOO\
DOWHUHG VXSHULRU EHLQJV DQG RWKHUV LI KXPDQV DUH QRW GHVWUR\HG ORQJ
EHIRUHWKHQ
D ,Q UHODWLRQ WR WKH HQYLURQPHQW , DOVR DGGUHVVHG WKH LVVXH RI
VXVWDLQDELOLW\ HVSHFLDOO\ LQ )+& )&' DQG )3+83 )RU LQVWDQFH LQ
)3+83 , VSHFLILFDOO\ SURSRVHG D QHZ WKHRU\ WKH FRQWLQJHQW WKHRU\ RI
XUEDQ SODQQLQJ RQ WKH QHHG WR JR EH\RQG WKH FRQWHPSRURDU\ REVHVVLRQ
ZLWK VXVWDLQDELOLW\ LQ WKH FRQWH[W RI QRW RQO\ WKH HQYLURQPHQW EXW DOVR
RWKHULVVXHV
,Q DGGLWLRQ , DOVR SURSRVHG WKH LQWHUYHQWLYHUHVKDSLQJ WKHRU\ RI
JHRJUDSK\LQ)3+*(2*ZKLFKLVUHODWHGWRWKHLVVXHVRI PLJUDWLRQ
LQDJHRJUDSK\LQGDQGJHRORJ\LQG
D ,Q UHODWLRQ WR VRFLDO WUHQGV DV D ZKROH , SURSRVHG LQ &K RI
)&' WKDW FLYLOL]DWLRQDO KLVWRU\ ZLOO FRQWLQXH LQWR WKH IROORZLQJ
F\FOLFDOSURJUHVVLRQRIH[SDQVLRQEHIRUHLWLVWREHVXSHUVHGHGVROHO\DVD
KLJK SUREDELOLW\ VLQFH KXPDQV PLJKW EH GHVWUR\HG VRRQHU HLWKHU E\
WKHPVHOYHV RU LQ D JLJDQWLF QDWXUDO FDODPLW\ E\ SRVWKXPDQV DW VRPH
GLVWDQWSRLQWLQDIWHUSRVWPRGHUQLW\ZKLFK,DOUHDG\GLVFXVVHGLQ)+&
XQWRPXOWLYHUVHVGLIIHUHQWFRQVWHOODWLRQVRIXQLYHUVHV
/RFDO5HJLRQDO*OREDO6RODU
*DODFWLF&OXVWHU\0XOWLYHUVDO
7KHFXUUHQWSKHQRPHRQRIJOREDOL]DWLRQOLHVLQWKHWKLUGFDWHJRU\RQWKH
OLQHDERYHDQGZDVH[WHQVLYHO\DQDO\]HGLQ)&'LQFORVHFRQQHFWLRQZLWK
JOREDOLVP DW WKH FXOWXUDO OHYHOLQ WKH FRQWH[W RI SRVWPRGHUQLW\
ZKLFKZLOOEHLQWURGXFHGODWHULQWKHVHFWLRQRQKLVWRU\
,Q %'3' WKLV WKHVLV RI PLQH ZDV UHIHUUHG WR DV WKH WKHRU\ RI WKH
F\FOLFDO SURJUHVVLRQ RI V\VWHP LQWHJUDWLRQ DQG IUDJPHQWDWLRQ DW WKH
V\VWHPLF OHYHOLQ FORVH UHODWLRQ WR DQRWKHU WKHVLV DQDO\]HG LQ &K RI
)&'ZKLFKZDVFDOOHGLQWKHDEVHQFHRIEHWWHUZRUGVWKHPXOWLIDFHWHG
WKHRU\RIZDUDQGSHDFHLQ)3+.DVDOUHDG\LQGLFDWHGDERYH
,Q)&,DOVRSURSRVHGWKHGLDOHFWLFWKHRU\RIFRPSOH[LW\WRDFFRXQW
IRU WKH IDFWRU RI XQFHUWDLQW\ ZKLFK FDQ KDYH D PDMRU UROH WR SOD\ LQ WKH
ZRUOG
$OO WKLV LV DOVR UHODWHG WR WKH LVVXHV RI XUEDQL]DWLRQ LQ D WKH
HQYLURQPHQW LQ D PLJUDWLRQ LQ D LGHQWLW\ LQ E
JHRJUDSK\LQGDQGJHRORJ\LQG
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
&KDSWHU,QWURGXFWLRQ7KH3UDFWLFHRI&XOLQDU\$UW
E ,Q UHODWLRQ WR VSRUWV OLNH FKHVV , SURSRVHG LQ )3+&+(66
WKH PHGLDWLYHYDULDWLYH WKHRU\ RI FKHVV IRU D QHZ ZD\ WR XQGHUVWDQG
WDFWLFVDQGVWUDWHJ\LQGLIIHUHQWWUDGLWLRQV
E/RJLF
,Q UHODWLRQ WR ORJLF , DOVR ZRUNHG RXW LQ )3+0/ WKH FRQWUDVWLYH
WKHRU\ RI UDWLRQDOLW\ IRU D QHZ ZD\ WR XQGHUVWDQG UDWLRQDOLW\ DQG
NQRZOHGJHLQWKHFRQWH[WRIPDWKHPDWLFDOORJLF
E&LYLOL]DWLRQDVD:KROH
,Q UHODWLRQ WR FLYLOL]DWLRQ DV D ZKROH , DOVR DUJXHG LQ )+& QR
IUHHGRP ZLWKRXW XQIUHHGRP DV VKRZQ LQ 7DEOH DQG QR HTXDOLW\
ZLWKRXW LQHTXDOLW\ DV VKRZQ LQ 7DEOH HVSHFLDOO\ LQ UHODWLRQ WR WKH
VHYHQ GLPHQVLRQV RI OLIH H[LVWHQFH ILUVW ZRUNHG RXW LQ )+& LH WKH
WHFKQRORJLFDO WKH HYHU\GD\ WKH WUXH WKH KRO\ WKH VXEOLPHEHDXWLIXO WKH
JRRGDQGWKHMXVW
(YHQ PRUH LQWHUHVWLQJO\ LQ %'3' DQG ODWHU LQ %&,9 , IXUWKHU
UHYHDOHG D WKHRUHWLFDO UHILQHPHQW RI H[LVWHQWLDO GLDOHFWLFV WKLV WLPH LQ
DUJXLQJ WKDW WKHUH LV QR FLYLOL]DWLRQ ZLWKRXW EDUEDULW\ ZLWK KXPDQ
FLYLOL]DWLRQ WR EH HYHQWXDOO\ VXSHUVHGHG E\ ZKDW , RULJLQDOO\ DQDO\]HG DV
SRVWKXPDQSRVWFLYLOL]DWLRQZKLFKVKRXOGQRWEHFRQIXVHGZLWKSRVW
KXPDQ FLYLOL]DWLRQ LQ WKH FRQWH[W RI WKH IUHHGRPXQIUHHGRP DQG
HTXDOLW\LQHTXDOLW\GLDOHFWLFV
,QWKHILQDODQDO\VLVFLYLOL]DWLRQFDQQRWOLYHZLWKRXWEDUEDULW\DQGKDV
WR OHDUQ WR FRH[LVW ZLWK LW LQ HYHU QHZ ZD\V 3UHSRVWHRUXV DV WKLV PD\
VHHP WR PDQ\ FRQWHPSRUDULHVLW LV QR PRUH LPSHUDWLYH WR SUHVHUYH
FLYLOL]DWLRQ WKDQ QHFHVVDU\ WR GHVWUR\ EDUEDULW\ DQG WKH LGHDO RI
FLYLOL]DWLRQLVHVVHQWLDOO\EDQNUXSWWREHHYHQWXDOO\ VXSHUVHGHGE\SRVW
FLYLOL]DWLRQDVVXPPDUL]HGLQ7DEOHV
7KLV IUHHGRPXQIUHHGRP DQG HTXDOLW\LQHTXDOLW\ GLDOHFWLFV KROGV LQ
SUHPRGHUQ\ PRGHUQLW\ SRVWPRGHUQLW\ DQG ZKDW , RULJQDOO\ FDOOHG
DIWHUSRVWPRGHUQLW\ LQ )+& DQG )&'HVSHFLDOO\ WKRXJK QRW
H[FOXVLYHO\LQWKHFRQWH[WRIWKHHPHUJHQFHRISRVWKXPDQV
7KHUHDUHWZRVSHFLILFWKHRULHVDERXWDIWHUSRVWPRGHUQLW\KHUH7KH
ILUVW WKHRU\ DERXW DIWHUSRVWPRGHUQLW\ LV DERXW WKH WULQLW\ RI SUH
PRGHUQLW\ PRGHUQLW\ SRVWPRGHUQLW\ DQG DIWHUSRVWPRGHUQLW\ DW WKH
FXOWXUDO OHYHODQG ZDV FDOOHG LQ %'3' WKH WKHRU\ RI WKH WULQLW\ RI
PRGHUQLW\ WR LWV DIWHUSRVWPRGHUQ FRXQWHUSDUW DOWKRXJK LW ZDV ILUVW
DQDO\]HGLQ)+&DQGODWHULQ)&'DQGDOVR%&,9DVVXPPDUL]HGLQ7DEOH
7DEOH7DEOHDQG7DEOHDQGZLOOEHHODERUDWHGIXUWKHU
LQWKHODWHUVXEVHFWLRQRQWKHUHVWDERXWIXWXUHKLVWRU\
7KH VHFRQG WKHRU\ DERXW DIWHUSRVWPRGHUQLW\ LV DERXW SUH
PRGHUQLW\ PRGHUQLW\ SRVWPRGHUQLW\ DQG DIWHUSRVWPRGHUQLW\ DW WKH
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
KLVWRULFDO OHYHO )RU LQVWDQFH D FRQFOXVLRQ LQ )+& ZKLFK LV VKRFNLQJ
LQGHHGIRUPDQ\FRQWHPSRUDULHVLVQRQHRWKHUWKDQWKDW>W@KHSRVWKXPDQ
KLVWRU\ ZLOOWKHUHIRUH PDUNWKHHQGRIKXPDQ KLVWRU\DV ZHNQRZLWDQG
IRUWKDWPDWWHUWKHHQGRIKXPDQGRPLQDQFHDQGSUDFWLFDOO\VSHDNLQJWKH
HQGRIKXPDQVDVZHOO7KHHQWLUHKLVWRU\RIKXPDQFLYLOL]DWLRQIURPLWV
EHJLQQLQJ WR WKH HQG FDQ EH VXPPDUL]HG E\ IRXU ZRUGV OLQNHG E\ WKUHH
DUURZVDVDOUHDG\GLVFXVVHGLQ)+&
3UH0RGHUQLW\0RGHUQLW\
3RVW0RGHUQLW\$IWHU3RVWPRGHUQLW\
,Q %'3' WKLV WKHVLV RI PLQH ZDV VSHFLILFDOO\ FDOOHG WKH WKHRU\ RI WKH
HYROXWLRQ IURP SUHPRGHUQLW\ WR DIWHUSRVWPRGHUQLW\ DW WKH KLVWRULFDO
OHYHODV VKRZQ LQ 7DEOH 7DEOH 7DEOH DQG 7DEOH
DQGZLOOEHHODERUDWHGIXUWKHULQWKHODWHUVXEVHFWLRQRQWKHUHVWDERXW
IXWXUHKLVWRU\
7KHUHIRUH>W@KHHQGRIKXPDQLW\LQWKHFRPLQJKXPDQH[WLQFWLRQLV
WKHEHJLQQLQJRISRVWKXPDQLW\7RVD\DQXQWLPHO\IDUHZHOOWRKXPDQLW\
LV WR IRUHWHOO WKH IXWXUH ZHOFRPH RI SRVWKXPDQLW\ 3 %DRIX
7KLVWKHVLVRIPLQHZDVNQRZQLQ%'3'DVWKHWKHRU\RISRVWKXPDQLW\
DWWKHV\VWHPLFOHYHODVDOUHDG\LQGLFDWHGLQDDERYH
E(WKLFV
,QUHODWLRQWRHWKLFV,SURSRVHGLQ%(3(WKHWKHRU\RISRVWHWKLFV
IRUDQHZZD\WRXQGHUVWDQGPRUDOLW\DQGLPPRUDOLW\
E(SLVWHPRORJ\0HWKRGRORJ\
,Q UHODWLRQ WR HSLVWHPRORJ\ PHWKRGRORJ\ , SURSRVHG WKH FRPSOH[
WKHRU\ RI GDWD DQDO\VLV LQ )3+'$ IRU D GLIIHUHQW ZD\ WR XQGHUVWDQG
TXDQWLWDWLYHDQGTXDOLWDWLYHUHVHDUFK
,QDGGLWLRQ,DOUHDG\SURSRVHGWKHFULWLFDOGLDOHFWLFWKHRU\RIIRUPDO
VFLHQFHLQ)3+)6DQGWKHWKHRU\RIPHWKRGRORJLFDOKROLVPLQVHYHUDO
ERRNVOLNH&K)&'&KRI)3+&6HFDQG6HFRI%&3&)&
)3+.HWFIRUDGLIIHUHQWZD\WRGRPHWKRGRORJ\
E0HWDSK\VLFV2QWRORJ\
,DOVRSURSRVHGWKHWKHRU\RIH[LVWHQWLDOGLDOHFWLFVLQVHYHUDOERRNV
OLNH )+& )&' )3+& %'3' )& )$( $/' ),$ )3+. HWF DQG
WKH FRQWUDVWLYH WKHRU\ RI UDWLRQDOLW\ LQ )3+0/ IRU D GLIIHUHQW ZD\ WR
XQGHUVWDQGRQWRORJ\
E,GHRORJ\
7KHLVVXHDERXWLGHRORJ\ ZDVDOUHDG\GLVFXVVHGXQGHUWKHFDWHJRULHV
RI VRFLDO LQVWLWXWLRQV DQG RI FLYLOL]DWLRQ DV D ZKROH HVSHFLDOO\ LQ
&KDSWHU,QWURGXFWLRQ7KH3UDFWLFHRI&XOLQDU\$UW
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
F ,Q UHODWLRQ WR WKH KXPDQ ERG\ IRU LQVWDQFH LQ )3+0$ ,
VXJJHVWHGWKHH[SDQVLYHFRQWUDFWLYHWKHRU\RIPDUWLDODUWVLQZKLFKWZR
JUHDW IXWXUH WUDQVIRUPDWLRQV RI WKH PDUWLDO ERG\ ZHUH HQYLVLRQHG WKDW LV
ERWK ZLWK WKH K\SHUPDUWLDO ERG\ DQG ZLWKRXW WKH ERG\ DV
VXPPDUL]HG LQ 7DEOH DOWKRXJK WKLV LVVXH FDQ DOVR EH FODVVLILHG
XQGHUWKHFDWHJRU\RIFXOWXUH
,Q)3+6,SURSRVHGWKHWKHRU\RIYLUWXDOVH[XDOLW\LQZKLFKWKUHH
JUHDW IXWXUH WUDQVIRUPDWLRQV RI WKH VH[XDO ERG\ ZHUH HQYLVLRQHG WKDW LV
YLUWXDOSOHDVXUHWKHK\SHUVH[XDOERG\DQGWKHSRVWVH[XDOIORDWLQJ
PLQGDVVXPPDUL]HGLQ7DEOH
$QG LQ )3+3$ , IXUWKHU SURSRVHG WKH WUDQVGLVFLSOLQDU\ WKHRU\ RI
SHUIRUPLQJDUWV IRUD QHZ ZD\WRXQGHUVWDQGWKHERG\DQGLWVSUHVHQFH
ZLWK VHYHQ JUHDW IXWXUH WUDQVIRUPDWLRQV RI WKH ERG\ LQ SHUIRUPLQJ DUWV
ZKLFK LV DOVR UHODWHG WR WKH LVVXHV RI DHVWKHWLFV LQ E DQG SRSXODU
PDVVFXOWXUHLQE
F3V\FKRORJ\
,Q UHODWLRQ WR SV\SFKRORJ\ ZKLFK DOVR RYHUODSV ZLWK ELRORJ\ WRR
KRZHYHU , DOVR SURSRVHG VRPH JUHDWHU WUDQVIRUPDWLRQV RI WKH PLQG WR
FRPH LQ WKH IXWXUH HVSHFLDOO\ WKRXJK QRW H[FOXVLYHO\ LQ WKH SRVWKXPDQ
DJH
7KHVH JUHDWHU WUDQVIRUPDWLRQV RI WKH PLQG LQ SV\FKRORJ\ FDQ EH
IXUWKHUVXEGLYLGHGLQWRGLIIHUHQWFDWHJRULHVQDPHO\FFRQVFLRXVQHVV
FXQFRQVFLRXVQHVVWRJHWKHUZLWKVXEFRQVFLRXVQHVVFFUHDWLYLW\
FOHDUQLQJFDJJUHVVLRQDQGSDFLILFLW\FSHUVRQDOLW\F
KXPRUDQGFDUWLILFLDOLQWHOOLJHQFH
F,QUHODWLRQWRFRQVFLRXVQHVV,DQDO\]HGLQ)3+&WKHQDWXUHRI
FRQVFLRXVQHVV LQ UHODWLRQ WR WKH FRQFHSWXDO GLPHQVLRQV RI FRQVFLRXVQHVV
DVVKRZQLQ7DEOHWKHWKHRUHWLFDOOHYHOVRIFRQVFLRXVQHVVDVVKRZQ
LQ 7DEOH WKH WKHPDWLF LVVXHV RI FRQVFLRXVQHVV DV VKRZQ LQ 7DEOH
DQGWKHGLIIHUHQWGLPHQVLRQVRIKXPDQH[LVWHQFHYL]KDYLQJQHVV
EHORQJLQJQHVVDQGEHLQJQHVVLQUHODWLRQWRFRQVFLRXVQHVVDVVKRZQLQ
7DEOH7DEOH7DEOHDQG7DEOH
,Q%&3&WKHQDWXUHRIFRQVFLRXVQHVVZDVIXUWKHUH[SORUHGLQUHODWLRQ
WR FRJQLWLRQ HPRWLRQ DQG EHKDYLRU ZKLFK FDQ EH LQ FRQVFLRXVQHVV DQG
RWKHU PHQWDO VWDWHV HJ VXEFRQVFLRXVQHVV DQG XQFRQVFLRXVQHVV LQ WKH
FRQWH[WRIH[LVWHQWLDOGLDOHFWLFVDVVKRZQLQ7DEOH7DEOH7DEOH
7DEOHDQG7DEOH
,QIDFWLQ)&',DOUHDG\SURSRVHGWKUHHGLIIHUHQWWKHRULHVLQUHODWLRQ
WR WKH OLPLWV RI FRJQLWLRQ HPRWLRQ DQG EHKDYLRU QDPHO\ WKH WKHRU\ RI
FRJQLWLYH SDUWLDOLW\ WKH WKHRU\ RI HPRWLRQDO QRQQHXWUDOLW\ DQG WKH
WKHRU\RIEHKDYLRUDODOWHUDWLRQ
&KDSWHU,QWURGXFWLRQ7KH3UDFWLFHRI&XOLQDU\$UW
7KHQ , DUJXHG WKDW WKH H[LVWHQFH RI KXPDQ FRQVFLRXVQHVV ZLOO EH
VXSHUVHGHG RQH GD\ ZLWK IORDWLQJ FRQVFLRXVQHVV DV ILUVW SURSRVHG LQ
)&'DQGK\SHUVSDWLDOFRQVFLRXVQHVVDVILUVWSURSRVHGLQ)3+&DVD
FOLPD[RIHYROXWLRQLQFRQVFLRXVQHVVDIWHUWKHIXWXUHH[WLQFWLRQRIKXPDQ
FRQVFLRXVQHVVDVVKRZQEHORZ
3ULPRUGLDOFRQVFLRXVQHVV+XPDQFRQVFLRXVQHVV
3RVWKXPDQFRQVFLRXVQHVVZLWKIORDWLQJFRQVFLRXVQHVVDQGK\SHUVSDWLDO
FRQVFLRXVQHVVDVDFOLPD[LQWKHHYROXWLRQRIFRQVFLRXVQHVV
,Q %'3' WKHVH ODWHVW WKHVHV RI PLQH ZHUH FDOOHG WKH WKHRU\ RI IORDWLQJ
FRQVFLRXVQHVV DQG WKH WKHRU\ RI K\SHUVSDWLDO FRQVFLRXVQHVV ERWK DW
WKH FRVPRORJLFDO DQG SV\FKRORJLFDO OHYHOV DV VXPPDUL]HG LQ 7DEOH
DQG7DEOH
F ,Q UHODWLRQ WR XQFRQVFLRXVQHVV IRU LQVWDQFH LQ )3+8 WKH
XQFRQVLRXV PLQG ZLOO XQGHUJR WUHPHQGRXV FKDQJH WR WKH ULVH RI ZKDW ,
RULJLQDOO\ FDOOHG XQIROGLQJ XQFRQVFLRXVHVV LQ UHODWLRQ WR DQRPDORXV
H[SHULHQFH DV D FOLPD[ RI HYROXWLRQ LQ XQFRQVFLRXVQHVV LQ FRQMXQFWLRQ
ZLWK WKH FRQVFLRXV PLQG ERWK KXPDQ QRZ DQG SRVWKXPDQ ODWHU
HVSHFLDOO\DWWKHSV\FKRORJLFDOOHYHODVVKRZQEHORZ
3ULPRUGLDOXQFRQVFLRXVQHVV+XPDQXQFRQVFLRXVQHVV
3RVWKXPDQXQFRQVFLRXVQHVVZLWKXQIROGLQJXQFRQVFLRXVQHVV
DVDFOLPD[LQWKHHYROXWLRQRIXQFRQVFLRXVQHVV
,Q )3+8 WKLV WKHVLV RI PLQH LV FDOOHG WKH WKHRU\ RI XQIROGLQJ
XQFRQVFLRXVQHVVLQDVPDOOVHQVHRUWKHXQIROGLQJWKHRU\RIDQRPDORXV
H[SHULHQFHLQDODUJHURQHDVVKRZQLQ7DEOHDQG7DEOH
F ,Q UHODWLRQ WR FUHDWLYLW\ IRU LQVWDQFH LQ )3+&7 , DOVR
SURSRVHG WKH FRPSUHKHQVLYH WKHRU\ RI FUHDWLYH WKLQNLQJ WR H[SORUH WKH
UROH RI FUHDWLYH WKLQNLQJ LQ UHODWLRQ WR WHFKQRORJ\ DQG RWKHU IDFWRUV
WRJHWKHU ZLWK P\ RULJLQDO SURSRVDO RI LPSRUWDQW FUHDWLYH WHFKQLTXHV DQG
WUDLWV DV VKRZQ LQ 7DEOH DQG LWV GRXEOH QDWXUH RI GHVLUDELOLW\ DQG
XQGHVLUDELOLW\DVVKRZQLQ7DEOH
F,QUHODWLRQWROHDUQLQJIRULQVWDQFHLQ)3+/,ZRUNHGRXWWKH
PXOWLORJLFDOWKHRU\RIOHDUQLQJIRUDQHZZD\WRXQGHUVWDQGWKHQDWXUHRI
VWUXFWXUH DQG FRQWH[W LQ ODQJXDJH LQ UHODWLRQ WR OHDUQLQJ DQG LWV IXWXUH
GHYHORSPHQWLQWKHFRQWH[WRIWKHPLQG
F ,Q UHODWLRQ WR DJJUHVVLRQ DQG SDFLILFLW\ , SURSRVHG WKH
PXOWLIDFHWHGWKHRU\RIZDUDQGSHDFHLQ)3+:3DVPHQWLRQHGDERYH
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
F,QUHODWLRQWRSHUVRQDOLW\,ZRUNHGRXWWKHFRQWUDULDQWKHRU\RI
SHUVRQDOLW\ LQ )3+3 IRU D QHZ ZD\ WR XQGHUVWDQG QRUPDOLW\ DQG
DEQRUPDOLW\
F,QUHODWLRQWRKXPRU,ZRUNHGRXWWKHPHWDPRUSKLFWKHRU\RI
KXPRULQ)3++IRUDQHZZD\WRXQGHUVWDQGMRNLQJDQGODXJKLQJ
F $QG LQ UHODWLRQ WR DUWLILFLDO LQWHOOLJHQFH , SURSRVHG WKH
VXSHUVHVVLRQ WKHRU\ RI FRPSXWLQJ LQ )3+&20 IRU D QHZ ZD\ WR
XQGHUVWDQGKDUGZDUHVRIWZDUHDQGWKHPLQG
,QDGGLWLRQ,DOVRSURSRVHGWKHFRPSOH[WKHRU\RIGDWDDQDO\VLVLQ
)3+'$ IRU D GLIIHUHQW ZD\ WR XQGHUVWDQG TXDQWLWDWLYH DQG TXDOLWDWLYH
UHVHDUFKLQWKHFRQWH[WRIWKHHYROXWLRQRIQHZPLQGV
G1DWXUH
7KHFDWHJRU\RIQDWXUHKHUHUHIHUVWRWKHVWDWHRIQDWXUHZKLFKFDQ
EH GLYLGHG LQWR VRPH VXEFDWHJRULHV OLNH G SK\VLFV G FRVPRORJ\
GELRORJ\GJHRJUDSK\GJHRORJ\GDFRXVWLFVGFKHPLVWU\
GDUFKLWHFWXUHDQGGWUDQVSRUWDWLRQ
%XWVLQFHELRORJ\LQGRYHUODSVZLWKELRORJ\LQFRQO\WKHUHVW
RIWKHFDWHJRULHVDUHDGGUHVVHGKHUHDIWHU
G3K\VLFV
,Q UHODWLRQ WR SK\VLFV , DOVR SURSRVHG WKH SHUVSHFWLYDO WKHRU\ RI
VSDFHWLPH LQ )3+67 EDVHG RQ )3+& IRU D QHZ ZD\ WR XQGHUVWDQG
VSDFHDQGWLPHDVVKRZQLQ7DEOH7DEOH7DEOHDQG7DEOH
,Q )3+* EDVHG RQ )3+& DQG )3+67 , SURSRVHG WKH VHOHFWLYH
WKHRU\ RI JHRPHWU\ IRU D QHZ ZD\ WR XQGHUVWDQG JHRPHWU\ ZLWK
LPSOLFDWLRQVIRUWKHXQGHUVWDQGLQJRIVSDFHWLPHLQWKHFRQWH[WRILQILQLW\
V\PPHWU\ DQG GLPHQVLRQDOLW\ IRU IXWXUH OLIHIRUPV WKDW RXU ZRUOG KDV
QHYHU NQRZQ DV VKRZQ LQ 7DEOH 7DEOH 7DEOH 7DEOH
7DEOHDQG7DEOH
$QGLQ)&,SURSRVHGWKHGLDOHFWLFWKHRU\RIFRPSOH[LW\IRUDQHZ
ZD\WRXQGHUVWDQGRUGHUDQGFKDRVLQWKHVWDWHRIQDWXUHDQGEH\RQG
G&RVPRORJ\
,QUHODWLRQWRFRVPRORJ\P\WKHRULHVRQSK\VLFVDVLQGLFDWHGDERYH
DOUHDG\KDYHLPSRUWDQWLPSOLFDWLRQV IRU XQGHUVWDQGLQJWKHQDWXUHDQGWKH
IXWXUH RI WKH XQLYHUVH ZKLFK ZDV DOVR DGGUHVVHG LQ )+& DPRQJ RWKHU
ZRUNVDIRUFLWHG
,DOVRSURSRVHGWKHWKHRU\RIK\SHUVSDWLDOFRQVFLRXVQHVVLQ)3+&
DQGDOVRLQ)3+* IRUDQHZ ZD\ WRXQGHUVWDQGWKH IXWXUHHYROXWLRQRI
WKHPLQGWRHQWHULQWRGLIIHUHQWGLPHQVLRQVRIVSDFHWLPHWKDWRXUFXUUHQW
ZRUOGKDVQHYHUNQRZQ
&KDSWHU,QWURGXFWLRQ7KH3UDFWLFHRI&XOLQDU\$UW
,QDGGLWLRQLQ%&26,SURSRVHGWKHWKHRU\RISRVWFRVPRORJ\IRUD
QHZ ZD\ WR XQGHUVWDQG WKH EHJLQQLQJV DQG HQGV RI WKH FRVPRV DQG
EH\RQG
G*HRJUDSK\
,Q UHODWLRQ WR JHRJUDSK\ , SURSRVHG WKH WKHRU\ RI WKH JHRSRZHU RI
QDWXUHLQ$/'IRUDGLIIHUHQWZD\WRXQGHUVWDQGWKHUHODWLRQVKLSVEHWZHHQ
JHRJUDSK\DQGRWKHUHQWLWLHVOLNHWKHPLQGFXOWXUHDQGVRFLHW\
, IXUWKHU UHILQHG WKLV LVVXH RI JHRJUDSK\ E\ SURSRVLQJ WKH
LQWHUYHQWLYHUHVKDSLQJ WKHRU\ RI JHRJUDSK\ LQ )3+*(2*ZKLFK LV
UHODWHGWRWKHLVVXHVRIWKHHQYLURQPHQWLQDPLJUDWLRQLQD
DQGJHRORJ\LQG
G*HRORJ\
,QUHODWLRQWRJHRORJ\,SURSRVHGWKHUHVHWWOHPHQWWKHRU\RIJHRORJ\
LQ)3+*(2/IRUDGLIIHUHQWZD\WRXQGHUVWDQGWKHUHODWLRQVKLSVEHWZHHQ
VWDWLFVDQGG\QDPLFVZKLFKLVUHODWHGWRWKHLVVXHVRIWKHHQYLURQPHQW
LQDPLJUDWLRQLQDDQGJHRJUDSK\LQG
G$FRXVWLFV
,Q UHODWLRQ WR DFRXVWLFV , SURSRVHG WKH PXOWLODWHUDO WKHRU\ RI
DFRXVWLFV LQ )3+$ IRU D GLIIHUHQW ZD\ WR XQGHUVWDQG WKH UHODWLRQVKLSV
EHWZHHQVRXQGDQGVLOHQFH
G&KHPLVWU\
,Q UHODWLRQ WR FKHPLVWU\ , SURSRVHG WKH FUHDWLRQDO WKHRU\ RI
FKHPLVWU\ LQ )3+&+(0 IRU D GLIIHUHQW ZD\ WR XQGHUVWDQG VXEVWDQFHV
DQGWKHLUFKDQJHV
G$UFKLWHFWXUH
,Q UHODWLRQ WR DUFKLWHFWXUH , SURSRVHG WKH WUDQVFHQGHQW WKHRU\ RI
DUFKLWHFWXUH LQ )3+$5&+ IRU D GLIIHUHQW ZD\ WR XQGHUVWDQG IRUP DQG
IXQFWLRQ
G7UDQVSRUWDWLRQ
$QGLQUHODWLRQWRWUDQVSRUWDWLRQ,SURSRVHGWKHSDQRUDPLFWKHRU\RI
WUDQVSRUWDWLRQ LQ )3+75$1 IRU D GLIIHUHQW ZD\ WR XQGHUVWDQG QHWZRUNV
DQGRSHUDWLRQV
H7KH5HVW
7KH FDWHJRU\ RI WKH UHVW KHUH UHIHUV WR ZKDW FDQQRW EH VWULFWO\
FODVVLILHGLQDQ\RIWKHSUHYLRXVFDWHJRULHVLHVRFLHW\FXOWXUHWKHPLQG
DQGQDWXUH$JRRGLOOXVWUDWLRQRIWKHUHVWUHIHUVWRHKLVWRU\
H+LVWRU\
7KHFDWHJRU\RIKLVWRU\FDQEHGLYLGHGLQWRVRPHVXEFDWHJRULHVOLNH
HHPSLULFDOKLVWRU\DQGHPHWDKLVWRU\
H ,Q UHODWLRQ WR HPSLULFDO KLVWRU\ , SURSRVHG WKH WKHRU\ RI WKH
HYROXWLRQIURPSUHPRGHUQLW\WRDIWHUSRVWPRGHUQLW\DVILUVWZRUNHGRXW
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
LQ )+& DQG ODWHU LQ )&' DQG )3+& ZKLFK RYHUODSVDV D UHPLQGHU
IURPEZLWKWKHLVVXHFRQFHUQLQJFLYLOL]DWLRQDVDZKROHLQE
)RU LQVWDQFH LQ ERWK )&' DQG )3+& , ZRUNHG RXW WKH VWUXFWXUH RI
SRVWKXPDQ FLYLOL]DWLRQ LQ WHUPV RI WKH WULQLW\ RI DIWHUSRVWPRGHUQLW\
LH IUHHVSLULWHG DIWHUSRVWPRGHUQLW\ SRVWFDSLWDOLVW DIWHU
SRVWPRGHUQLW\DQGKHJHPRQLFDIWHUSRVWPRGHUQLW\
%RWKFRQFHSWXDOO\DQGWKHRUHWLFDOO\WKHWULQLW\RIDIWHUSRVWPRGHUQLW\
LV D VHTXHQWLDO H[WHQVLRQ RI WKH WULQLW\ RI PRGHUQLW\ LH IUHHVSLULWHG
PRGHUQLW\ FDSLWDOLVW PRGHUQLW\DQG KHJHPRQLF PRGHUQLW\ DQG WKH
WULQLW\ RI SRVWPRGHUQLW\ LH IUHHVSLULWHG SRVWPRGHUQLW\ FDSLWDOLVW
SRVWPRGHUQLW\ DQG KHJHPRQLF SRVWPRGHUQLW\ DV ILUVW SURSRVHG LQ
)+&
$QG WKH WULQLW\ RI SUHPRGHUQLW\ LH SUHIUHHVSLULWHG SUH
PRGHUQLW\ SUHFDSLWDOLVW SUHPRGHUQLW\ DQG KHJHPRQLF SUH
PRGHUQLW\ ZDV ODWHU FRQFHLYHG LQ %&,9 WR FRPSOHWH WKH KLVWRULFDO VHW
IURPSUHPRGHUQLW\WRDIWHUSRVWPRGHUQLW\
,Q %'3' WKLV WKHVLV DERXW WKH WULQLW\ RI SUHPRGHUQLW\ PRGHUQLW\
SRVWPRGHUQLW\ DQG DIWHUSRVWPRGHUQLW\ ZDV FROOHFWLYHO\ NQRZQ DV WKH
WKHRU\RIWKHWULQLW\RI PRGHUQLW\WRLWVDIWHUSRVWPRGHUQFRXQWHUSDUWDW
WKH FXOWXUDO OHYHODV DOUHDG\ VR PHQWLRQHG LQ E HDUOLHU DQG
VXPPDUL]HGLQ7DEOH7DEOH7DEOHDQG7DEOH
$WWKHVWUXFWXUDOOHYHODOOWKHVHWULQLWLHVDUHVXEMHFWWRWKHH[LVWHQWLDO
FRQVWUDLQWVHJWKHIUHHGRPXQIUHHGRPDQGHTXDOLW\LQHTXDOLW\GLDOHFWLFV
LQWKHFRQWH[WRIWKHF\FOLFDOSURJUHVVLRQRIKHJHPRQ\EHWKHKLVWRULFDO
HSRFKLQSUHPRGHUQLW\PRGHUQLW\SRVWPRGHUQLW\RUDIWHUSRVWPRGHUQLW\
LQ IXWXUH WLPHV (DFK RI WKH KLVWRULFDO HSRFKV KDV LWV HYHU QHZ ZD\V RI
FRPLQJ WR WHUPV ZLWK WKH HYHU QHZ GLIIHUHQW PL[WXUHV RI
IUHHGRPXQIUHHGRPDQGHTXDOLW\LQHTXDOLW\
7KLV LV LPSRUWDQWO\ VR QRW EHFDXVH DV LV IDOVHO\ DVVXPHG LQ
FRQYHQWLRQDOZLVGRPRQHFHUWDLQZD\LVVXSHULRURUEHWWHUWKDQDQRWKHU
LQWHUPVRIDFKLHYLQJPRUHIUHHGRPDQGOHVVXQIUHHGRPRUPRUHHTXDOLW\
ZLWKOHVVLQHTXDOLW\
2QWKHFRQWUDU\LQGHHGLQHDFKRIWKHKLVWRULFDOHSRFKVHDFKLQFUHDVH
RI XQIUHHGRP JUHHWV HDFK IUHHGRP DFKLHYHG MXVW DV HDFK LQFUHDVH RI
LQHTXDOLW\ZHOFRPHVHDFKHTXDOLW\DFKLHYHGDOEHLWLQHYHUQHZGLIIHUHQW
ZD\V ,Q %'3' WKLV WKHVLV RI PLQH ZDV ODEHOHG DV WKH WKHRU\ RI WKH
F\FOLFDO SURJUHVVLRQ RI KHJHPRQ\ DW WKH VWUXFWXUDO OHYHO WKRXJK LW ZDV
ILUVWDQDO\]HGLQ)&'
,Q%'3'PRUHWKHRUHWLFDODSSOLFDWLRQVRIH[LVWHQWLDOGLDOHFWLFV ZHUH
IXUWKHU H[DPLQHG LQ UHODWLRQ WR ILYH PDLQ IHDWXUHV LQ WKH FRQWH[W RI WKH
GXDOLW\RIRSSUHVVLRQQDPHO\DWKDWHDFK IUHHGRPHTXDOLW\DFKLHYHGLV
&KDSWHU,QWURGXFWLRQ7KH3UDFWLFHRI&XOLQDU\$UW
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
&KDSWHU,QWURGXFWLRQ7KH3UDFWLFHRI&XOLQDU\$UW
0XOWLSOH/HYHOVRI$SSOLFDWLRQ
7KHUH LV DQRWKHU LVVXH WR EH FODULILHG KRZHYHU ,Q RWKHU ZRUGV WKH
WKHRUHWLFDO LQVLJKWV FDQ EH DSSOLHG WR PXOWLSOH OHYHOV RI DQDO\VLVHYHQ
WKRXJKLQDJLYHQH[DPSOHLWPD\UHIHUWRRQHOHYHORUDIHZRQO\
)RU LQVWDQFH LQ WKH H[DPSOH FRQFHUQLQJ WKH IUHHGRPXQIUHHGRP
GLDOHFWLFV LW FDQ EH XVHG DW WKH VWUXFWXUDO OHYHO HJ LQ UHODWLRQ WR WKH
WKHRU\ RI WKH F\FOLFDO SURJUHVVLRQ RI KHJHPRQ\ EXW LW FDQ DOVR EH
H[SORLWHG IRU RWKHU OHYHOV HJ WKH WKHRU\ RI SRVWFDSLWDOLVP DW WKH
LQVWLWXWLRQDOOHYHO
$OO WKHVHOHYHOVRIDSSOLFDWLRQVKRXOG QRWEH PLVOHDGLQJO\FRQVWUXHG
DV,VWUHVVWKLVEHIRUHDVDRQHZD\VWUHHWWKDWLVWRXVH WKHRQWRORJLFDO
SULQFLSOHVIRUWKHRUHWLFDODSSOLFDWLRQDWPXOWLSOHOHYHOVRIVSHFLILFDQDO\VLV
EXWDWZRZD\RQHLQZKLFKWKHRUHWLFDOLQVLJKWVLQSUD[LVZKHQVWXGLHGLQ
PRUHVSHFLILFFRQWH[WVFDQLQWXUQUHILQHWKHQDWXUHRIH[LVWHQWLDOGLDOHFWLFV
IRUH[DPSOHZLWKWKHDGGLWLRQRIQHZSULQFLSOHV
6RSKLVWLFDWHG0HWKRGRORJLFDO+ROLVP
7KHVXPPDU\RIP\RULJLQDOPHWDWKHRU\RQPHWKRGRORJ\LVSURYLGHG
EHORZDJDLQWREHUHSHDWHGRIWHQYHUEDWLPIURPP\SUHYLRXVZRUNVDV
WKLV LV VRPHWKLQJ , UHJXODUO\ GR LQ HDFK QHZ ERRN WR LQWURGXFH P\ SDVW
ZRUNVZKLFKDUHLQFRQYHUVDWLRQZLWKWKLVFXUUHQWRQH
7KLV PHDQV WKDW IRU WKRVH UHDGHUV ZKR KDYH QRW UHDG DQ\ RI P\
SUHYLRXVERRNVWKHVXPPDU\EHORZLVKHOSIXO
7KDW FODULILHGWKLV RULJLQDO FRQWULEXWLRQ RI PLQH WR WKH VWXG\ RI
PHWKRGRORJ\ WDNHV WKH IRUP RI DQ DSSURDFK NQRZQ DV WKH WKHRU\ RI
PHWKRGRORJLFDO KROLVP RU PHWKRGRORJLFDO KROLVP LQ VKRUW DV DOUHDG\
ZRUNHGRXWLQ)3+&
,KDYHPDGHJRRGXVHRIWKLVPHWKRGRORJLFDODSSURDFKRIPLQHIRUDOO
RIP\SUHYLRXVZRUNV
7KH&RQIXVLRQRI+ROLVPZLWK6\VWHPV$SSURDFK
<HWLWLVLPSHUDWLYHWRVWUHVVDWWKHRXWVHWDV,RIWHQHPSKDVL]HGWKLV
LQ DOO P\ SUHYLRXV ERRNV WKDW P\ DSSURDFK RI PHWKRGRORJLFDO KROLVP
GRHV QRW RSSRVH RU H[FOXGH PHWKRGRORJLFDO LQGLYLGXDOLVP DV VRPH
UHDGHUV PD\ EH WHPSWHG WR DVVXPH DV LV FRQYHQWLRQDOO\ XQGHUVWRRG EXW
DFWXDOO\LQFOXGHVLW
7KH FRQIXVLRQ KHUH KDV WR GR ZLWK HTXDWLQJ KROLVP ZLWK V\VWHPV
DSSURDFKLQJHQHUDOEHLWDERXWV\VWHPVWKHRU\FKDRVWKHRU\FRPSOH[LW\
WKHRU\ RU HOVH ZKLFK , GHEXQNHG ZKLOH OHDUQLQJ VRPHWKLQJ IURP LW DV
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
DOUHDG\ HODERUDWHG LQ 7KH )XWXUH RI &RPSOH[LW\ DQG 7KH )XWXUH
RI3RVW+XPDQ)RUPDO6FLHQFHLVDQRWKHUDGGLWLRQWRWKLVFULWLTXH
RIWKHLQWHOOHFWXDOIDGRIV\VWHPVDSSURDFK
,Q RWKHU ZRUGV P\ PHWDWKHRU\ RI KROLVP RU VRSKLVWLFDWHG
PHWKRGRORJLFDOKROLVPLQVKRUWPDNHVDGLVWLQFWLRQEHWZHHQGRLQJKROLVWLF
ZRUNDQGGRLQJV\VWHPVZRUNIRUWZRUHDVRQV
7KHILUVWUHDVRQLVWKDWKROLVPLQP\WKHRU\GRHVQRWLPSO\V\VWHPV
DSSURDFK VLQFH LW UHMHFWV V\VWHPV DSSURDFK EHFDXVH RI WKH P\ULDG
SUREOHPV WKDW WKH OLWHUDWXUH RQ V\VWHPV DSSURDFK KDV EHHQ XQDEOH WR
UHVROYHZKLOHOHDUQLQJVRPHWKLQJIURPLW
$QGWKHVHFRQGUHDVRQLVWKDWP\WKHRU\LVUHODWHGWRWKHRWKHUWKHRU\
RI PLQH WKDW LV H[LVWHQWLDO GLDOHFWLFV ZKLFK GRHV QRW H[FOXGH
PHWKRGRORJLFDO LQGLYLGXDOLVP EXW LQFOXGHV LW EHFDXVH LW VLPSO\ JRHV
EH\RQGERWKUHGXFWLRQLVPDQGUHYHUVHUHGXFWLRQLVPLQDGLDOHFWLFZD\
)RU WKHVH UHDVRQV DQG RWKHUV WRR DV VXPPDUL]HG LQ 7DEOH P\
YHUVLRQ RI PHWKRGRORJLFDO KROLVP LV VRSKLVWLFDWHGQRW YXOJDU DV
VRPHWLPHVXVHGE\LQDSWVFKRODUVHPSOR\LQJWKHVDPHWHUP
7KH2QWRORJLFDO&RQVWUDLQWV
6RSKLVWLFDWHG PHWKRGRORJLFDO KROLVP LV VXEMHFW WR VRPH RQWRORJLFDO
FRQVWUDLQWV DQG VRPH JRRG H[DPSOHV LQFOXGH WKH IRUPDOQHVV
LQIRUPDOQHVV SULQFLSOH WKH DEVROXWHQHVVUHODWLYHQHVV SULQFLSOH WKH
SDUWLDOLW\WRWDOLW\SULQFLSOHWKHSUHGLFWDELOLW\XQSUHGLFWDELOLW\SULQFLSOH
WKH H[SOLFDELOLW\LQH[SOLFDELOLW\ SULQFLSOH DQG WKH ILFWLRQUHDOOLW\
SULQFLSOHLQH[LVWHQWLDOGLDOHFWLFV
2IFRXUVHWKHUHFDQEHPRUHWKDQVL[RQWRORJLFDOSULQFLSOHVLQUHODWLRQ
WR PHWKRG EXW WKH H[DPSOHV KHUH DUH VXIILFLHQW WR LOOXVWUDWH WKH SRLQW LQ
TXHVWLRQ
:LWK WKLV FDYHDW LQ PLQGWKH ILUVW WZR ZHUH DOUHDG\ DQDO\]HG LQ
SUHYLRXV ERRNV RI PLQH OLNH )& DQG )$( ZKHUHDV WKH WKLUG RQH ZDV
DGGUHVVHGLQ)3+8WKHIRXUWKDQGILIWKRQHVZHUHDFFRXQWHGIRULQ)3+.
DQG)3+0/UHVSHFWLYHO\DQGWKHODVWRQHZDVDGGUHVVHGLQ)3+/,7
)RUQRZLWVXIILFHVWRVKRZWKDWVRSKLVWLFWHGPHWKRGRORJLFDOKROLVP
EHFDXVH RI WKHVH RQWRORJLFDO FRQVWUDLQWV RQ PHWKRGRORJ\ WDUJHWV WZR
PDMRU VLQV RI PHWKRGRORJ\ QDPHO\ ZKDW , FDOO LQ WKH DEVHQFHRI EHWWHU
ZRUGV D UHGXFWLRQLVP DQG E UHYHUVHUHGXFWLRQLVPERWK RI ZKLFK
FRPHLQDOOVKDSHVDQGVL]HVWREHVXPPDUL]HGEHORZDQGDOVRVKRZQLQ
7DEOH
&KDSWHU,QWURGXFWLRQ7KH3UDFWLFHRI&XOLQDU\$UW
$JDLQVWWKH9DULHWLHVRI5HGXFWLRQLVP
7KHUHDUHIRXUYHUVLRQVRIUHGXFWLRQLVPWREHVXPPDUL]HGKHUHZKLFK
VRSKLVWLFDWHGPHWKRGRORJLFDOKROLVPUHMHFWVQDPHO\DFRQFHSWXDOD
WKHRUHWLFDO D PHWKRGRORJLFDO DQG D RQWRORJLFDO IRUPV RI
UHGXFWLRQLVP
D ,Q FRQFHSWXDO UHGXFWLRQLVP D JRRG FDVH LQ SRLQW FRQFHUQV
P\ULDG GXDOLWLHV OLNH PLQG YV ERG\ VHOI YV ZRUOG GHPRFUDF\ YV QRQ
GHPRFUDF\DQGWKHOLNHDVDOUHDG\DGGUHVVHGLQ)+&)3+&DQG%'3'
IRULQVWDQFH
D ,Q WKHRUHWLFDO UHGXFWLRQLVP DQ LOOXPLQDWLQJ FDVH VWXG\ LV EHVW
H[HPSOLILHGE\ZKDW,RULJLQDOO\FDOOHGWKHIRXQGDWLRQIDOODF\LQ)3+67
LQ DQ\ DWWHPSW WR QDLYHO\ XQGHUVWDQG VSDFHWLPH IURP WKH SK\VLFDO
SHUVSHFWLYH DV WKH IRXQGDWLRQ DQG FRQVHTXHQWO\ WR GDQJHURXVO\ GLVPLVV
RUEHOLWWOHRWKHUSHUVSHFWLYHV
,Q )$( , HODERUDWHG IXUWKHU WKHVH YHUVLRQV RI UHGXFWLRQLVP LQ WKH
OLWHUDWXUH RQ DHVWKHWLFV HJ IRUP YV FRQWHQW UHSUHVHQWDWLRQ YV
H[SUHVVLRQFULWLFVYVDUWLVWVDQGH[WHUQDOLVPYVLQWHUQDOLVP
,Q ),$ , UHYHDOHG RWKHU IRUPV RI UHGXFWLRQLVP LQ WKH OLWHUDWXUH RQ
LQIRUPDWLRQ DUFKLWHFWXUH HJ WKH FRQVWUXFWLYLVW DUJXPHQW DQG WKH
UHSUHVHQWDWLRQDODUJXPHQW
,Q)3+8,VKRZHGWKHSHUVLVWHQWOHJDF\RIUHGXFWLRQLVPWKLVWLPHLQ
WKH OLWHUDWXUH RQ DQRPDORXV H[SHULHQFH HJ WKH REVHVVLRQ ZLWK SK\VLFV
FKHPLVWU\DQGELRORJ\IRUH[SODLQLQJDQRPDORXVH[SHULHQFH
,Q )3+( , H[DPLQHG DQRWKHU FDVH RI UHGXFWLRQLVP LQ DFWLRQ LQ WKH
FRQWH[W RI HQJLQHHULQJ HJ WHFKQLFDO FRQVWUDLQWV YV QRUPDWLYH
FRQVWUDLQWV
,Q )3+00 , HODERUDWHG RQH PRUH YHUVLRQ RI UHGXFWLRQLVP LQ
UHODWLRQWRWKHWKUHHGRPDLQVRIFRPPXQLFDWLRQHJWKHFRPSHWLQJYLHZV
RQVHQGLQJFRQQHFWLQJDQGUHFHLYLQJ
,Q)3+&7,H[SORUHGDQRWKHUYHUVLRQRIUHGXFWLRQLVPLQUHODWLRQWR
LQYHQWLRQ DQG LQQRYDWLRQ HJ WKH ELRSV\FKRORJLFDO DUJXPHQW YV WKH
VRFLRFXOWXUDODUJXPHQWV
,Q)3+*,LGHQWLILHGDQRWKHUYHUVLRQRIUHGXFWLRQLVPLQ UHODWLRQWR
LQILQLW\ V\PPHWU\ DQG GLPHQVLRQDOLW\ HJ WKH (XFOLGHDQ DUJXPHQW YV
WKHQRQ(XFOLGHDQDUJXPHQWV
,Q)3+83,DQDO\]HGDQRWKHUYHUVLRQRIUHGXFWLRQLVPLQUHODWLRQWR
GHQVLW\ DQG YRLG HJ WKH HQJLQHHULQJ DUJXPHQW DQG WKH HFRORJ\
DUJXPHQW
,Q 3)+/ , H[DPLQHG DQRWKHU YHUVLRQ RI UHGXFWLRQLVP LQ UHODWLRQ WR
VWUXFWXUHDQGFRQWH[WHJWKHVWUXFWXUDOLVWDUJXPHQWDQGWKHFRQWH[WXDOLVW
DUJXPHQW
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
,Q 3)+2 , H[SORUHG DQRWKHU YHUVLRQ RI UHGXFWLRQLVP LQ UHODWLRQ WR
FRPPXQFDWLRQGHFLVLRQPDNLQJDQGOHDGHUVKLSHJWKHUDWLRQDOV\VWHP
DUJXPHQWYVWKHQDWXUDOV\VWHPDUJXPHQWYVWKHRSHQV\VWHPDUJXPHQW
,Q3)+0$,UHYHDOHGDQRWKHUYHUVLRQRIUHGXFWLRQLVPLQUHODWLRQWR
WKHPDUWLDOERG\DQGVSLULWHJWKHVSLULWXDODUJXPHQWYVWKHPDWHULDOLVW
DUJXPHQWYVWKHGHIHQVLYHDUJXPHQW
,Q3)+6,DQDO\]HGDQRWKHUYHUVLRQRIUHGXFWLRQLVPLQUHODWLRQWRWKH
VH[XDOERG\DQGVSLULWHJWKHQDWXUDOLVWDUJXPHQW YVWKHFRQVWUXFWLYLVW
DUJXPHQW
,Q3)+/$:,H[DPLQHGDQRWKHUYHUVLRQRIUHGXFWLRQLVPLQUHODWLRQ
WRODZHJWKHQHFHVVLW\DUJXPHQWYVWKHFRQWHQJHQF\DUJXPHQW
,Q)3+:3,VKRZDQRWKHUYHUVLRQRIUHGXFWLRQLVPLQUHODWLRQWRZDU
DQGSHDFHHJWKHDJJUHVVLYLVWDUJXPHQWYVWKHSDFLILVWDUJXPHQW
,Q %(3( , DQDO\]HG DQRWKHU YHUVLRQ RI UHGXFWLRQLVP LQ UHODWLRQ WR
PRUDOLW\ DQG LPPRUDOLW\ HJ WKH REMHFWLYLVW DUJXPHQW YV WKH QRQ
REMHFWLYLVWDUJXPHQWYVWKHVNHSWLFDODUJXPHQW
,Q %&26 , H[DPLQHG DQRWKHU YHUVLRQ RI UHGXFWLRQLVP LQ UHODWLRQ WR
WKH FRQWHVWHG EHJLQQLQJV DQG VSHFXODWLYH HQGV RI WKH XQLYHUVH HJ WKH
VFLHQWLILFDUJXPHQWYVWKHUHOLJLRXVDUJXPHQWYVWKHHVRWHULFDUJXPHQWYV
WKHPHWDSK\VLFDODUJXPHQW
,Q )3+3 , VKRZHG DQRWKHU YHUVLRQ RI UHGXFWLRQLVP LQ UHODWLRQ WR
QRUPDOLW\ DQG DEQRUPDOLW\ HJ WKH QDWXUDO DUJXPHQW YV WKH VRFLDO
DUJXPHQWYVWKHFXOWXUDODUJXPHQWYVWKHPHQWDODUJXPHQW
,Q )3+*(2/ , VFUXWLQL]HG DQRWKHU YHUVLRQ RI UHGXFWLRQLVP LQ
UHODWLRQ WR VWDWLFV DQG G\QDPLFV HJ WKH FDWDVWURSKH DUJXPHQW YV WKH
XQLIRUPLW\DUJXPHQWYVWKHUHYLVLRQDUJXPHQW
,Q)3+&+(66,VKRZHGDQRWKHUYHUVLRQRIUHGXFWLRQLVPLQUHODWLRQ
WRWDFWLFVDQG VWUDWHJ\HJWKHQDWXUDODUJXPHQW YVWKHVRFLDODUJXPHQW
YVWKHFXOWXUDODUJXPHQWYVWKHPHQWDODUJXPHQW
,Q )3+5 , UHYHDOHG DQRWKHU YHUVLRQ RI UHGXFWLRQLVP LQ UHODWLRQ WR
VHFXODUQHVV DQG VDFUHGQHVV HJ WKH FULWLFDO DUJXPHQW YV WKH VNHSWLFDO
DUJXPHQWYVWKHWKHLVWDUJXPHQW
,Q)3+('8,H[DPLQHGDQRWKHUYHUVLRQRIUHGXFWLRQLVPLQUHODWLRQ
WR WHDFKLQJ DQG OHDUQLQJ HJ WKH WHDFKHUFHQWHUHG DUJXPHQW YV WKH
VWXGHQWFHQWHUHGDUJXPHQWYVWKHEDODQFHGDUJXPHQW
,Q )3++ , H[SORUHG DQRWKHU YHUVLRQ RI UHGXFWLRQLVP LQ UHODWLRQ WR
MRNLQJDQGODXJKLQJHJWKHQDWXUDODUJXPHQWYVWKHVRFLDODUJXPHQWYV
WKHFXOWXUDODUJXPHQWYVWKHPHQWDODUJXPHQW
,Q )3+$ , UHYHDOHG DQRWKHU YHUVLRQ RI UHGXFWLRQLVP LQ UHODWLRQ WR
VRXQG DQG VLOHQFH HJ WKH QDWXUDO DUJXPHQW YV WKH VRFLDO DUJXPHQW YV
WKHFXOWXUDODUJXPHQWYVWKHPHQWDODUJXPHQW
&KDSWHU,QWURGXFWLRQ7KH3UDFWLFHRI&XOLQDU\$UW
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
$QGLQ)3+&$,SURSRVHDQRWKHUYHUVLRQRIUHGXFWLRQLVPLQUHODWLRQ
WR LQJUHGLHQWV DQG WHFKQLTXHV HJ WKH QDWXUDO DUJXPHQW YV WKH VRFLDO
DUJXPHQWYVWKHFXOWXUDODUJXPHQWYVWKHPHQWDODUJXPHQW
D ,Q PHWKRGRORJLFDO UHGXFWLRQLVP D JRRG LOOXVWUDWLRQ FDQ EH WKH
GHEDWHEHWZHHQGLIIHUHQWYHUVLRQVRITXDOLWDWLYHDQGTXDQWLWDWLYHPHWKRGV
DVDOUHDG\DQDO\]HGLQ)&DQGDOVR)+&
,Q )3+0/ , H[DPLQHG VLPLODU UHGXFWLRQLVP WKLV WLPH LQ WKH
OLWHUDWXUH RQ PDWKHPDWLFDO ORJLF HJ WKH REVHVVLRQ ZLWK FRQVLVWHQF\
VRXQGQHVVDQGFRPSOHWHQHVV
$QG LQ )3+)6 , H[SORUHG WKH SUREOHPV RI UHGXFWLRQLVP LQ WKH
FRQWH[WRIIRUPDOVFLHQFHHJWKHDQDO\WLFDODUJXPHQWDVRSSRVHGWRWKH
V\QWKHWLFDUJXPHQW
D ,Q RQWRORJLFDO UHGXFWLRQLVP DQ H[FHOOHQW LQVWDQFH LQYROYHV
DQRWKHU GHEDWH WKLV WLPH EHWZHHQ HPHUJHQWLVP DQG UHGXFWLRQLVP LQ
FRPSOH[LW\ WKHRU\ DV DGGUHVVHG LQ )& DQG DOVR LQ SV\FKRORJ\ DV
HODERUDWHGLQ)3+&LQWKHFRQWH[WRI%HLQJDQG%HORQJLQJ
%XW WR WDUJHW DJDLQVW WKH YDULHWLHV RI UHGXFWLRQLVP FRQVWLWXWHV RQO\ D
VLGHRIWKHVDPHFRLQDQGWKHRWKHUVLGHFRQFHUQVWKHYDULHWLHVRIUHYHUVH
UHGXFWLRQLVP
$JDLQVWWKH9DULHWLHVRI5HYHUVH5HGXFWLRQLVP
7KHRWKHUVLGHRIWKHVDPHFRLQLVWKHUHYHUVHYHUVLRQRIUHGXFWLRQLVP
ZKLFK LV ZKDW , ZDQW WR FDOO LQ WKH DEVHQFH RI EHWWHU ZRUGV UHYHUVH
UHGXFWLRQLVP
0\VRSKLVWLFDWHGYHUVLRQRIPHWKRGRORJLFDOKROLVPWDUJHWVDJDLQVWWKH
YDULHWLHV RI UHYHUVHUHGXFWLRQLVP MXVW DV LW DOVR UHMHFWV WKH RQHV RI
UHGXFWLRQLVP
3HUKDSV QRWKLQJ H[SUHVVHV EHWWHU WKH SRSXODULW\ RI UHYHUVH
UHGXFWLRQLPWKDQWKH DQ\WKLQJJRHV PHQWDOLW\LQSRVWPRGHUQLVPRIRXU
WLPHDVVKRZQLQWKHIROORZLQJIRXUYHUVLRQV
E ,Q FRQFHSWXDO UHYHUVHUHGXFWLRQLVP DQ\ FRQFHSW RI DUW HJ
ILQH DUW DSSOLHG DUW RXWVLGHU DUW MXQN DUW LV ZHOFRPH LQ SRVWPRGHUQLVP
DVDOUHDG\DQDO\]HGLQ&KRI)+&DQGDOVRLQ)$(
E ,Q WKHRUHWLFDO UHYHUVHUHGXFWLRQLVP D YDULHW\ RI DUW DQG OLWHUDU\
WKHRULHV FRH[LVW 7DNH WKH FDVH RI OLWHUDU\ VWXGLHV DV WKHUH DUH QRZ
/LWHUDU\ 6WUXFWXUDOLVP 0DU[LVW /LWHUDU\ &ULWLFLVP 1HZ &ULWLFLVP
3KHQRPHQRORJ\ +HUPHQHXWLFV /DQJXDJH*DPH /LWHUDU\ &ULWLFLVP
)HPLQLVW /LWHUDU\ &ULWLFLVP 5HFHSWLRQ 7KHRU\ 5HDGHU 5HVSRQVH
&ULWLFLVP3RVWVWUXFWXUDOLVP6HPLRWLFV3\VFKRDQDO\WLF/LWHUDU\&ULWLFLVP
MXVWWRFLWHVRPHZHOONQRZQRQHVZLWKQRRQHEHLQJVDLGWREHEHWWHUWKDQ
DQ\RWKHUVDVGHWDLOHGO\DQDO\]HGLQ&KRI)+&65DPDQ
&KDSWHU,QWURGXFWLRQ7KH3UDFWLFHRI&XOLQDU\$UW
,Q%11,HYHQLQWURGXFHGWKHFRPSURPLVHIDOODF\DVDQRWKHUJRRG
LOOXVWUDWLRQ RI WKHRUHWLFDO UHYHUVHUHGXFWLRQLVP LQ PLVOHDGLQJO\ WUHDWLQJ
ERWKJHQHWLFDQGHQYLURQPHQWDODSSURDFKHVDVHTXDOO\YDOLG
E,QPHWKRGRORJLFDOUHYHUVHUHGXFWLRQLVPPXOWLSOHPHWKRGRORJLHV
DUHGHHPHGDVDFFHSWDEOHLQSRVWPRGHUQLVPHJGRLQJDUWZLWKRXWSUD[LV
GRLQJDUWZLWKSUD[LVDQGGRLQJDUWE\VXEODWLRQDVDQDO\]HGLQ&KRI
)+&
$QGLQ)3+)6,H[SRVHGWKHSUREOHPVRIUHYHUVHUHGXFWLRQLVPLQWKH
FRQWH[WRIIRUPDOVFLHQFHLQUHODWLRQWRV\VWHPVWKHRU\HJWKHV\QWKHWLF
DUJXPHQW
E ,Q RQWRORJLFDO UHYHUVHUHGXFWLRQLVP QR SULYLOHJHG RQWRORJ\ LV
DOORZHG DQG WKH GRRU LV RSHQ SUDFWLFDOO\ IRU DQ\WKLQJ LQ SRVWPRGHUQLVP
HJ WKH HTXDO VWDWXV RI WKH RQWRORJ\ RI %HLQJ YV WKDW RI %HFRPLQJ DV
DOUHDG\DGGUHVVHGLQ&KRI)+&DQGDOVRLQ)3+&
,Q )$( , DOVR LQWURGXFHG DQRWKHU YHUVLRQ RI UHYHUVHUHGXFWLRQLVP
WKDW LV WKH SOXUDOLVW IDOODF\ LQ WKH FRQWH[W RI XQGHUVWDQGLQJ DHVWKHWLF
H[SHULHQFH IRU LQVWDQFHDOWKRXJK WKLV IDOODF\ KDV EHHQ FRPPLWWHG QRW
H[FOXVLYHO\LQUHODWLRQWRWKHRQWRORJLFDOOHYHOEXWDOVRDWWKHFRQFHSWXDO
WKHRUHWLFDODQGPHWKRGRORJLFDORQHV
7KHVHGXDOGDQJHUVDJDLQVWUHYHUVHUHGXFWLRQLVPLQWKLVVXEVHFWLRQ
DQG UHGXFWLRQLVP LQ WKH SUHYLRXV VXEVHFWLRQ DUH VRPHWKLQJ WKDW
VRSKLVWLFDWHG PHWKRGRORJLFDO KROLVP UHMHFWV $QG LQ )3+)6 , DGGUHVVHG
WKHVHWZRSUREOHPVIXUWKHU
7KLV SRLQW DERXW WKH GXDO GDQJHUV LV LPSRUWDQW HQRXJK VLQFH PDQ\
VFKRODUVRIWHQIDYRURQHDJDLQVWWKHRWKHUEXWLWLVYLWDOWRWDUJHWERWK
7KH+ROLVWLF2UJDQL]DWLRQRIDQ,QTXLU\
:LWK WKHVH GXDO GDQJHUV DJDLQVW UHGXFWLRQLVP DQG UHYHUVH
UHGXFWLRQLVPLQPLQGVRSKLVWLFDWHGPHWKRGRORJLFDOKROLVPVXJJHVWVWKDW
DQ LQTXLU\ RI DQ\ JLYHQ SKHQRPHQRQ LV PRUH FRPSOHWH LI WUHDWHG LQ WKH
FRQWH[W RI D FRPSUHKHQVLYH DQDO\VLV DW DOO UHOHYDQW OHYHOV ZKLFK
FKDOOHQJLQJO\HQFRPSDVVDOOWKHILHOGVRIKXPDQNQRZOHGJHUDQJLQJIURP
WKHQDWXUDOVFLHQFHVDQGIRUPDOVFLHQFHVWKURXJKWKHVRFLDOVFLHQFHVWRWKH
KXPDQLWLHV
7KLV VHFWLRQ LV VRPHWKLQJ WKDW , KDG DOUHDG\ VWUHVVHG LQ DOO P\
SUHYLRXV ERRNV DQG UHSHDW RIWHQ YHUEDWLP KHUHDIWHU %XW IRU WKRVH
UHDGHUVZKRKDGUHDGP\SUHYLRXVERRNVWKLVVHUYHVDVDUHPLQGHU
:LWK WKLV UHPLQGHU LQ PLQGWKHUH DUH PXOWLSOH ZD\V WR HQJDJH LQ D
KROLVWLFLQTXLU\ZLWKDOOUHOHYHQWOHYHOVRIDQDO\VLV2YHUWKH\HDUV,KDYH
SURSRVHGGLIIHUHQWZD\VWRIXOILOOWKLVKROLVWLFPHWKRGRORJLFDOUHTXLUHPHQW
DVUHSHDWHGLQP\SUHYLRXVERRNV
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
+HUHDIWHULVDVXPPDU\RIIRXUPDMRUZD\VQDPHO\DE\GLVFLSOLQH
E E\ GRPDLQ F E\ VXEMHFW DQG G E\ PHWDDQDO\VLVDOO RI ZKLFK
IXOILOOWKHKROLVWLFUHTXLUHPHQWRIVRSKLVWLFDWHGPHWKRGRORJLFDOKROLVPRQD
JLYHQLVVXH
D ,Q D KROLVWLF RUJDQL]DWLRQ E\ GLVFLSOLQH D JRRG LOOXVWUDWLRQ LV WKH
PXOWLSOH OHYHOV RI DQDO\VLV QDPHO\ D WKH PLFURSK\VLFDO D WKH
FKHPLFDO D WKH ELRORJLFDO D WKH SV\FKRORJLFDO D WKH
RUJDQL]DWLRQDODWKHLQVWLWXWLRQDODWKHVWUXFWXUDODWKHV\VWHPLF
DWKHFXOWXUDODWKHPDFURSK\VLFDOFRVPRORJLFDODQGDRWKHU
UHOHYDQW OHYHOV ZKLFK DUH HLWKHU D FRPELQDWLRQ RI DOO WKHVH OHYHOV RU WKH
SUDFWLFDODSSOLFDWLRQVZLWKDFRPELQDWLRQRIWKHP
7KLVKROLVWLFRUJDQL]DWLRQE\GLVFLSOLQHLVXVHGLQ)&'DQG%&3&IRU
LQVWDQFH
E ,Q D KROLVWLF RUJDQL]DWLRQ E\ GRPDLQ VRPH JRRG FDQGLGDWHV
LQFOXGHWKHFODVVLILFDWLRQRIGLIIHUHQWSHUVSHFWLYHVRIDQDO\VLVLQUHODWLRQWR
E QDWXUH E WKH PLQG E VRFLHW\ DQG E FXOWXUH DV DOUHDG\
ZRUNHG RXW LQ %&,9 )3+67 )& )$( )3+8 )3+. )3+( DQG
)3+)6MXVWWRFLWHVRPHH[DPSOHV
&XOWXUHLQELQWKLVUHFODVVLILFDWLRQLVWKHVDPHDVFXOWXUHLQD
DQG FDQ EH IXUWKHU GLYLGHG LQWR GLIIHUHQW VXEFDWHJRULHV ZLWK JRRG
H[DPSOHV OLNH DL HSLVWHPRORJ\ PHWKRGRORJ\ DLL DHVWKHWLFV DLLL
HWKLFVDLYPHWDSK\VLFVRQWRORJ\DQGDYUHOLJLRQ)RUFODULILFDWLRQ
HSLVWHPRORJ\PHWKRGRORJ\LQDLDQGPHWDSK\VLFVRQWRORJ\LQDLY
RYHUODSZLWKWKHFDWHJRU\RIPHWDWKHRU\
6RFLHW\LQELQFOXGHVWKHRUJDQL]DWLRQDOLQDWKHLQVWLWXWLRQDOLQ
DWKHVWUXFWXUDOLQDDQGWKHV\VWHPLFLQD
7KHPLQGEKDVPRUHWRGRZLWKWKHFKHPLFDOLQDWKHELRORJLFDO
LQ D DQG WKH SV\FKRORJLFDO LQ D DOWKRXJK LW FDQ RYHUODS ZLWK D
EDQGEIRULQVWDQFH
,WVKRXOGEHVWUHVVHGWKDWWKHPLQGKHUHDOVRLQFOXGHVWKHFDWHJRULHV
OLNH WKH EUDLQ ERG\ DQG WKH VSLULW RU WKH VRXOZKHQHYHU
QHHGHGLQDJLYHQFRQWH[WVRWKDWRQHGRHVQRWIDOOLQWRWKHLQWHOOHFWXDOWUDS
RI WKH PLQGERG\ GXDOLVP LQ WKH KLVWRU\ RI PRGHUQ DQG HVSHFLDOO\
SRVWPRGHUQSKLORVRSK\ZKLFK,DOUHDG\ZHQWWRJUHDWOHQJWKVWRH[SODLQ
LQ 7KH )XWXUH RI +XPDQ &LYLOL]DWLRQ $IWHU DOO LQ HYHU\GD\V XVDJH WKH
PLQG DOUHDG\ LPSOLHV WKH EUDLQ DQG WKH ERG\ WRJHWKHU ZLWK WKHLU
LQWHUDFWLRQVDQGKDVGLIIHUHQWOHYHOVRIFRQVFLRXVQHVV ZKLFKFDQEHERWK
VSLULWXDODQGQRQVSLULWXDO
$QGQDWXUHLQEUHIHUVWRWKHPLFURSK\VLFDOLQDDQGWKHPDFUR
SK\VLFDO FRVPRORJLFDO LQ D DOWKRXJK LW FDQ DOVR RYHUODS ZLWK D
DDQGD
&KDSWHU,QWURGXFWLRQ7KH3UDFWLFHRI&XOLQDU\$UW
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7KH HVVHQWLDO SRLQW WR UHPHPEHU KHUH DV , WKXV VWUHVV LQ DOO P\
SUHYLRXVERRNVLVWKDWWKHPXOWLSOHOHYHOVRIDQDO\VLVFDQEHUHRUJDQL]HGLQ
PDQ\GLIIHUHQWZD\VLQVRIDUDVQRQHRIWKHOHYHOVLIUHOHYDQWWRDQLQTXLU\
LQTXHVWLRQLVLJQRUHGRUGLVPLVVHGWRDYRLGWKHGDQJHURIUHGXFWLRQLVP
DQG IRU WKDW PDWWHU WKH RQH RI UHYHUVHUHGXFWLRQLVP LQ WKH RSSRVLWH
GLUHFWLRQ
7KUHH&ODULILFDWLRQV
7KUHH FODULILFDWLRQV DUH QHHGHG KHUH KRZHYHU WR DYRLG DQ\ KDVW\
PLVXQGHUVWDQGLQJ
)LUVWO\ WKH HQWLWLHV LQ HDFK FODVVLILFDWLRQ DUH QRW PXWXDOO\ H[FOXVLYH
)RU LQVWDQFH LQ WKH KROLVLWF RUJDQL]DWLRQ E\ GRPDLQ QDWXUH LQ E FDQ
DOVR EH OLQNHG WR WKH FKHPLFDO LQ D WKH ELRORJLFDO LQ D DQG WKH
V\VWHPLF LQ D $QG WKH PLQG E FDQ DOWHUQDWLYHO\ EH UHODWHG WR WKH
PLFURSK\VLFDOLQDDQGWKHFKHPLFDOLQDIRUH[DPSOH
6HFRQGO\WKHUHLVDOVRWKHLPSRUWDQWIDFWRURIOXFNRUXQFHUWDLQW\LQ
FRQYHQWLRQDO XVDJH EXW LW LV DOUHDG\ LPSOLHG RU DOORZHG LQ HDFK RI WKH
RUJDQL]DWLRQV RI DQ LQTXLU\HVSHFLDOO\ LQ UHODWLRQ WR WKH SUHGLFWDELOLW\
XQSUHGLFWDELOLW\ SULQFLSOH DQG WKH RUGHUFKDRV SULQFLSOH LQ H[LVWHQWLDO
GLDOHFWLFV 7KLV WRSLF DERXW XQFHUWDLQW\ ZDV DOUHDG\ DGGUHVVHG LQ )+&
DQGPRUHH[WHQVLYHO\LQ)&LQWKHFRQWH[WRIRUGHUDQGFKDRVDQGODWHU
WRDQH[WHQWLQ)3+.)3+)6DQG)3+*$0IRUH[DPSOH
$QG ODVWO\ WKH FRPSDULVRQ LQ D FODVVLILFDWLRQ LV QRW DEVROXWH EXW
UHODWLYHDVWKHUHDUHRIWHQVRPHVKDGHVRIJUD\QRWH[DFWO\EODFNRUZKLWH
ILJXUDWLYHO\VSHDNLQJ
6RPH IXUWKHU FODULILFDWLRQV DQG TXDOLILFDWLRQV RI VRSKLVWLFDWHG
PHWKRGRORJLFDOKROLVPDUHVKRZQLQ7DEOH
6RPH'LVWLQFWLYH8VHIXOQHVV
,Q WKH HQG VRSKLVWLFDWHG PHWKRGRORJLFDO KROLVPZKHQ DSSOLHG
HVSHFLDOO\WKRXJKQRWH[FOXVLYHO\DVLOOXVWUDWHGLQP\QXPHURXVZRUNV
FDQHQULFKWKHXQGHUVWDQGLQJRIUHDOLW\LQVRPHGLVWLQFWLYHZD\V+HUHDUH
IRXUH[DPSOHVDVUHYHDOHGLQHDFKRIP\ERRNV
)LUVWO\LWSURYLGHVDFRPSUHKHQVLYHDQDO\VLVRIDVXEMHFWPDWWHUIURP
ZKLFK PXFK FDQ EH OHDUQHG DERXW UHDOLW\ ERWK LQ UHODWLRQ WR WKH
SHUVSHFWLYHVRIWKHPLQGQDWXUHVRFLHW\DQGFXOWXUH
6HFRQGO\LWRIIHUVDQHZFODVVLILFDWLRQRIWKHVXEMHFWPDWWHU
7KLUGO\LWVXJJHVWVVRPHYLVLRQVRIWKHIXWXUHLQUHODWLRQWRWKHVXEMHFW
PDWWHULQTXHVWLRQ
&KDSWHU,QWURGXFWLRQ7KH3UDFWLFHRI&XOLQDU\$UW
&KDSWHU2XWOLQH
:LWKWKLVVXPPDU\RIP\WZRRULJLQDOPHWDWKHRULHVRQPHWKRGRORJ\
DQG RQWRORJ\ DOPRVW YHUEDWLP IURP P\ SUHYLRXV ZRUNV LQ PLQGWKLV
ERRNLVRUJDQL]HGLQIRXUPDLQSDUWVQDPHO\D3DUW,RQWKHLQWURGXFWLRQ
WRWKLVERRNE3DUW,,RQLQJUHGLHQWVF3DUW,,,RQWHFKQLTXHVDQGG
3DUW,9RQWKHFRQFOXVLRQRIWKHERRN
7KHERRNLVWKXVRUJDQL]HGLQIRXUFKDSWHUV
7KH LQWURGXFWRU\ FKDSWHU WKDW LV &KDSWHU 2QH WLWOHG ,QWURGXFWLRQ
7KH 3UDFWLFH RI &XOLQDU\ $UW EHJLQV ZLWK D FRQWHQWLRQ EHWZHHQ WZR
YLHZV SURYLGHV D GHILQLWLRQ DQG KLVWRU\ RI FXOLQDU\ DUW DQG WKHQ
LQWURGXFHVLQJUHGLHQWVDQGWHFKQLTXHVLQWKHVWXG\RIFXOLQDU\DUWDVZHOO
DVWKHJHQHUDOFKDUDFWHULVWLFVRIFXOLQDU\DUWWRJHWKHUZLWKWKHWKHRUHWLFDO
GHEDWH RQ FXOLQDU\ DUW P\ LQTXLVLWLYH WKHRU\ RI FXOLQDU\ DUW WKH
UHODWLRQVKLS EHWZHHQ WKHRU\ DQG PHWDWKHRU\ H[LVWHQWLDO GLDOHFWLFV
VRSKLVWLFDWHGPHWKRGRORJLFDOKROLVPDQGVRPHIXUWKHUFODULILFDWLRQV
&KDSWHU 7ZR WLWOHG ,QJUHGLHQWV DQG WKHLU 7ZLQ 4XDOLWLHV H[DPLQHV
WKHQDWXUHRILQJUHGLHQWVLQFXOLQDU\DUWIURPWKH IRXUSHUVSHFWLYHVRIWKH
PLQGQDWXUHVRFLHW\DQGFXOWXUHZLWKDGHFRQVWUXFWLYHFULWLTXHRIHDFK
&KDSWHU 7KUHH WLWOHG 7HFKQLTXHV DQG WKHLU 'XDO 6LGHV H[SORUHV WKH
QDWXUHRIWHFKQLTXHVLQFXOLQDU\DUWIURPWKHIRXUSHUVSHFWLYHVRIWKHPLQG
QDWXUHVRFLHW\DQGFXOWXUHZLWKDFRQVWUXFWLYHDVVHVVPHQWRIHDFK
7KH ODVW FKDSWHU WLWOHG &RQFOXVLRQ7KH )XWXUH RI &XOLQDU\ $UW
VXPPDUL]HVWKHDQDO\VLVLQWKHERRNLQWKHGLDOHFWLFFRQWH[WRILQJUHGLHQWV
DQGWHFKQLTXHVLQFXOLQDU\DUWZLWKWZHQW\HLJKWPDMRUWKHVHVQDPHO\D
WKH ILUVW WKHVLV WKH IRUPDOQHVVLQIRUPDOQHVV SULQFLSOH E WKH VHFRQG
WKHVLV WKH DEVROXWHQHVVUHODWLYHQHVV SULQFLSOH F WKH WKLUG WKHVLV WKH
SDUWLDOLW\WRWDOLW\ SULQFLSOH G WKH IRXUWK WKHVLV WKH SUHGLFWDELOLW\
XQSUHGLFWDELOLW\ SULQFLSOH H WKH ILIWK WKHVLV WKH H[SOLFDELOLW\
LQH[SOLFDELOLW\ SULQFLSOH I WKH VL[WK WKHVLV WKH ILFWLRQUHDOLW\ SULQFLSOH
J WKH VHYHQWK WKHVLV WKH ILQLWHQHVVWUDQVILQLWHQHVV SULQFLSOH K WKH
HLJKWKWKHVLVWKHSUHFLVHQHVVYDJXHQHVVSULQFLSOHLWKHQLQWKWKHVLVWKH
VLPSOHQHVVFRPSOLFDWHGQHVV SULQFLSOH M WKH WHQWK WKHVLV WKH RSHQQHVV
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
6RPH&ODULILFDWLRQV
+RZHYHUVRPHDGGLWLRQDOODVWFODULILFDWLRQVDUHQHHGHG
7KHVH FODULILFDWLRQV OHVW DQ\ SRWHQWLDO PLVXQGHUVWDQGLQJ E\ WKH
UHDGHUVRFFXUVUHIHUWRDWKHFRQYHUVDWLRQ ZLWK P\SUHYLRXVERRNVE
WKHLOOXVWUDWLYHVHOHFWLRQRIFDVHVWXGLHVDQGH[DPSOHVFGHWDLOHGDQDO\VLV
YHUVXV RYHUDOO DQDO\VLV G WKUHH GLVWLQFWLYH IHDWXUHV RI XVLQJ TXRWDWLRQV
H WZR GLIILFXOWLHV ZLWK XQGHUVWDQGLQJ I UHSHWLWLRQ DQG J WKH XVH RI
QHRORJLVPV
7KHVH FODULILFDWLRQV DUH VRPHWKLQJ WKDW , DOVR UHJXODUO\ UHSHDW LQ P\
SUHYLRXV ERRNV WRR VR WKHVH SRLQWV DUH UHSHDWHG KHUHDIWHU RIWHQ
YHUEDWLPDOEHLWLQDGLIIHUHQWFRQWH[WWKLVWLPH
,Q&RQYHUVDWLRQZLWK0\3UHYLRXV%RRNV
)LUVWO\ P\ LQTXLVLWLYH WKHRU\ RI FXOLQDU\ DUW LV FRQVWUXFWHG RQ WKH
WKHRUHWLFDO IRXQGDWLRQ RI P\ SUHYLRXV ERRNV LH )+& )&' )3+&
&KDSWHU,QWURGXFWLRQ7KH3UDFWLFHRI&XOLQDU\$UW
%'3' %&3& %&,9 )3+67 %11 %:7 )& )$( $/' ),$ )3+8
)3+. )3+0/ )3+( )3+00 )3+&7 )3+* )3+83 )3+/
)3+2 )3+0$ )3+6 )3+/$: )3+)6 )3+:3 )3+3 %&26
%(3( )3+*(2/ )3+&+(66 )3+5 )3+('8 )3++ )3+$
)3+*$0 )3+&20 )3+/,7 )3+&+(0 )3+'$ )3+*(2*
)3+3$ )3+6(0 )3+$5&+ )3+&5,0 )3++,67 )3+0,* DQG
)3+75$1DVH[SOLFDWHGLQ7KH/LVWRI$EEUHYLDWLRQV
)RUWKLVUHDVRQPDQ\RIP\ERRNVKDYHVRPHIDPLOLDUZRUGVLQWKHLU
WLWOHVOLNH7KH)XWXUHRI3RVW+XPDQBBBBRU%H\RQGBBBBWRBBBBDV
ZHOO DV VRPH WDEOHV IRU EDFNJURXQG LQIRUPDWLRQDV WKH\ FRQVWLWXWH D
VHULHVRIERRNVZLWKWKHILQDODLPWRFRQYHUJHDOORIP\RULJLQDOWKHRULHV
RQ QXPHURXV ILHOGV LQWR D XQLILHG WKHRU\ RI HYHU\WKLQJ DV DOUHDG\
VXPPDUL]HGLQWKHVHFWLRQRQWKHRU\DQGPHWDWKHRU\LQ&KDSWHU2QH
-XVWFRQVLGHUWKHIROORZLQJWZRLOOXVWUDWLRQVQDPHO\DLQUHODWLRQWR
RWKHUUHODWHGWKHRUHWLFDOGHEDWHVDQGELQUHODWLRQWRGLIIHUHQWYLVLRQVDV
ZRUNHGRXWLQP\SUHYLRXVERRNV
D 7KH ILUVW LOOXVWUDWLRQ LV WKDW WKH WKHRUHWLFDO GHEDWH KHUH DOVR
LQYROYHVDIHZRWKHUUHODWHGWKHRUHWLFDOLVVXHV
7KHVH RWKHU UHODWHG WKHRUHWLFDO LVVXHV KDYH WR GR ZLWK VRPH GHHSO\
FRQWHVWHGWKHRUHWLFDOGHEDWHVZKLFKKRZHYHU,KDGDOUHDG\JRQHWRJUHDW
OHQJWKV WR DQDO\]H LQ P\ QXPHURXV SUHYLRXV ERRNV DV VXPPDUL]HG
EHORZ,WVKRXOGDOVREHVWUHVVHGOHVWPLVXQGHUVWDQGLQJRFFXUVWKDWHDFK
RI WKH WKHRUHWLFDO GHEDWHV DV OLVWHG EHORZ GRHV QRW H[KDXVW WKH LVVXHV
FRYHUHGLQWKHERRNVDVHDFKERRNFRYHUVPRUHLVVXHVWKDQZKDWLVOLVWHG
EHORZIRULOOXVWUDWLRQRQO\
2QWKH$UWV
([7KH)XWXUHRI$HVWKHWLF([SHULHQFH
([7KH)XWXUHRI3RVW+XPDQ3HUIRUPLQJ$UWV
([7KH)XWXUHRI3RVW+XPDQ/LWHUDWXUH
([7KH)XWXUHRI3RVW+XPDQ$UFKLWHFWXUH
([7KH)XWXUHRI3RVW+XPDQ0DUWLDO$UWV
2Q&KHPLVWU\
([7KH)XWXUHRI3RVW+XPDQ&KHPLVWU\
2Q(WKLFV
([%H\RQG(WKLFVWR3RVW(WKLFV
([YROXPHV7KH)XWXUHRI+XPDQ&LYLOL]DWLRQ
2Q(FRQRPLFV
([7KH)XWXUHRI&DSLWDOLVPDQG'HPRFUDF\
([YROXPHV7KH)XWXUHRI+XPDQ&LYLOL]DWLRQ
([%H\RQG&DSLWDOLVPWR3RVW&DSLWDOLVP
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
2Q(QJLQHHULQJ
([7KH)XWXUHRI3RVW+XPDQ(QJLQHHULQJ
2QWKH(QYLURQPHQW
([7KH)XWXUHRI3RVW+XPDQ*HRJUDSK\
([7KH)XWXUHRI3RVW+XPDQ*HRORJ\
2Q7HFKQRORJ\
([7KH)XWXUHRI3RVW+XPDQ(QJLQHHULQJ
([YROXPHV7KH)XWXUHRI+XPDQ&LYLOL]DWLRQ
([7KH)XWXUHRI3RVW+XPDQ&RPSXWLQJ
2Q*OREDOL]DWLRQ
([7KH)XWXUHRI&DSLWDOLVPDQG'HPRFUDF\
([YROXPHV7KH)XWXUHRI+XPDQ&LYLOL]DWLRQ
2Q&LYLOL]DWLRQ
([%H\RQG&LYLOL]DWLRQWR3RVW&LYLOL]DWLRQ
([YROXPHV7KH)XWXUHRI+XPDQ&LYLOL]DWLRQ
2Q6SDFH&RORQL]DWLRQ
([7KH)XWXUHRI&DSLWDOLVPDQG'HPRFUDF\
([YROXPHV7KH)XWXUHRI+XPDQ&LYLOL]DWLRQ
2Q(SLVWHPRORJ\DQG2QWRORJ\
([7KH)XWXUHRI3RVW+XPDQ.QRZOHGJH
([7KH)XWXUHRI3RVW+XPDQ&RQVFLRXVQHVV
([YROXPHV7KH)XWXUHRI+XPDQ&LYLOL]DWLRQ
2Q5DWLRQDOLW\
([7KH)XWXUHRI3RVW+XPDQ0DWKHPDWLFDO/RJLF
([7KH)XWXUHRI3RVW+XPDQ+XPRU
2Q)UHHGRP
([YROXPHV7KH)XWXUHRI+XPDQ&LYLOL]DWLRQ
([7KH)XWXUHRI&DSLWDOLVPDQG'HPRFUDF\
([%H\RQG&DSLWDOLVPWR3RVW&DSLWDOLVP
([YROXPHV%H\RQG'HPRFUDF\WR3RVW'HPRFUDF\
([%H\RQG&LYLOL]DWLRQWR3RVW&LYLOL]DWLRQ
2Q&RPPXQLFDWLRQ
([7KH)XWXUHRI3RVW+XPDQ0DVV0HGLD
([7KH)XWXUHRI3RVW+XPDQ2UJDQL]DWLRQ
2Q/HDUQLQJ
([7KH)XWXUHRI3RVW+XPDQ/DQJXDJH
([7KH)XWXUHRI3RVW+XPDQ(GXFDWLRQ
2Q3V\FKRORJ\
([7KH)XWXUHRI3RVW+XPDQ8QFRQVFLRXVQHVV
([7KH)XWXUHRI3RVW+XPDQ&RQVFLRXVQHVV
([7KH)XWXUHRI&DSLWDOLVPDQG'HPRFUDF\
&KDSWHU,QWURGXFWLRQ7KH3UDFWLFHRI&XOLQDU\$UW
([7KH)XWXUHRI3RVW+XPDQ&UHDWLYH7KLQNLQJ
([7KH)XWXUHRI3RVW+XPDQ3HUVRQDOLW\
2Q&RJQLWLRQ
([7KH)XWXUHRI3RVW+XPDQ8QFRQVFLRXVQHVV
([7KH)XWXUHRI3RVW+XPDQ&RQVFLRXVQHVV
([7KH)XWXUHRI&DSLWDOLVPDQG'HPRFUDF\
([7KH)XWXUHRI3RVW+XPDQ&UHDWLYH7KLQNLQJ
([7KH)XWXUHRI3RVW+XPDQ3HUVRQDOLW\
2Q,QWXLWLRQ
([7KH)XWXUHRI3RVW+XPDQ8QFRQVFLRXVQHVV
([7KH)XWXUHRI3RVW+XPDQ&RQVFLRXVQHVV
([%H\RQG&DSLWDOLVPWR3RVW&DSLWDOLVP
([7KH)XWXUHRI&DSLWDOLVPDQG'HPRFUDF\
2Q(PRWLRQ
([7KH)XWXUHRI3RVW+XPDQ8QFRQVFLRXVQHVV
([7KH)XWXUHRI3RVW+XPDQ&RQVFLRXVQHVV
([7KH)XWXUHRI$HVWKHWLF([SHULHQFH
([%H\RQG&DSLWDOLVPWR3RVW&DSLWDOLVP
([7KH)XWXUHRI&DSLWDOLVPDQG'HPRFUDF\
([7KH)XWXUHRI3RVW+XPDQ3HUVRQDOLW\
2Q%HKDYLRU
([7KH)XWXUHRI3RVW+XPDQ/DQJXDJH
([7KH)XWXUHRI3RVW+XPDQ8QFRQVFLRXVQHVV
([7KH)XWXUHRI3RVW+XPDQ&RQVFLRXVQHVV
([%H\RQG&DSLWDOLVPWR3RVW&DSLWDOLVP
([7KH)XWXUHRI&DSLWDOLVPDQG'HPRFUDF\
([7KH)XWXUHRI3RVW+XPDQ6H[XDOLW\
([7KH)XWXUHRI3RVW+XPDQ3HUVRQDOLW\
([7KH)XWXUHRI3RVW+XPDQ0DUWLDO$UWV
2Q%HLQJDQG%HORQJLQJ
([7KH)XWXUHRI3RVW+XPDQ&RQVFLRXVQHVV
([YROXPHV7KH)XWXUHRI+XPDQ&LYLOL]DWLRQ
2Q'LIIHUHQW'LPHQVLRQVRI+XPDQ([LVWHQFH
([YROXPHV7KH)XWXUHRI+XPDQ&LYLOL]DWLRQ
2Q0RGHUQLW\3RVW0RGHUQLW\DQG$IWHU3RVWPRGHUQLW\
([YROXPHV7KH)XWXUHRI+XPDQ&LYLOL]DWLRQ
([%H\RQG&LYLOL]DWLRQWR3RVW&LYLOL]DWLRQ
2Q3UH0RGHUQLW\
([%H\RQG&LYLOL]DWLRQWR3RVW&LYLOL]DWLRQ
2Q6SLULWXDOLW\
([YROXPHV7KH)XWXUHRI+XPDQ&LYLOL]DWLRQ
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
([7KH)XWXUHRI&DSLWDOLVPDQG'HPRFUDF\
([7KH)XWXUHRI3RVW+XPDQ5HOLJLRQ
([%H\RQG&LYLOL]DWLRQWR3RVW&LYLOL]DWLRQ
([7KH)XWXUHRI3RVW+XPDQ6H[XDOLW\
([7KH)XWXUHRI3RVW+XPDQ0DUWLDO$UWV
([7KH)XWXUHRI3RVW+XPDQ8QFRQVFLRXVQHVV
([7KH)XWXUHRI3RVW+XPDQ&RQVFLRXVQHVV
([%H\RQG(WKLFVWR3RVW(WKLFV
7KHUHIRUH WKRVH ZKR DUH LQWHUHVWHG LQ WKHVH RWKHU WKHRUHWLFDO LVVXHV DQG
GHEDWHV ZKLFK DUH UHODWHG WR WKH FXUUHQW FRQWH[W FDQ FRQVXOW WKHVH RWKHU
ERRNVRIPLQHIRUPRUHGHWDLOV
E$QGWKHVHFRQGLOOXVWUDWLRQLVWKDWRQHRIWKHPDMRUWKHVHVRIWKLV
ERRN FRQFHUQV WKH IXWXUH EH LW KXPDQ DQG ODWHU SRVWKXPDQ ZKLFK LV
FORVHO\ OLQNHG ZLWK WKH GLIIHUHQW YLVLRQV WKDW , KDG ZRUNHG RXW LQ P\
SUHYLRXVERRNVLQUHODWLRQWRWKHPLQGQDWXUHVRFLHW\DQGFXOWXUH
2IFRXUVHIRUWKHFRQYHQLHQFHRIWKHUHDGHUVDVXPPDU\RIVRPHRI
WKHVH YLVLRQV ZLOO EH SURYLGHG ZKHQHYHU QHFHVVDU\ DV VKRZQ LQ WKH WZR
VHFWLRQV RQ PHWDWKHRU\ DERYH RIWHQ YHUEDWLP DQG LQ GLIIHUHQW WDEOHV DW
WKHHQGRIWKLVFKDSWHUDQGWKHFRQFOXGLQJFKDSWHUIRULQVWDQFH
<HW,VWLOOH[SHFWWKHUHDGHUVWRUHDGP\SUHYLRXVERRNVGLUHFWO\ IRU
PRUH GHWDLOVDV WKLV ERRN LV ZULWWHQ LQ FRQYHUVDWLRQ ZLWK P\ SUHYLRXV
RQHV
&DVH6WXGLHVDQG([DPSOHV
6HFRQGO\ WKH FDVH VWXGLHV DQG H[DPSOHV LQ WKH FKDSWHUV DUH QRW
H[KDXVWLYH EXW VROHO\ LOOXVWUDWLYH 1RU DUH WKH\ QHFHVVDULO\ PXWXDOO\
H[FOXVLYH DV WKH\ FDQ EH UHFODVVLILHG LQ D GLIIHUHQW ZD\ $QG H[FHSWLRQV
DUHDOORZHG
2QH LV WHPSWHG WR DVVXPH KRZHYHU WKDW VLQFH WKH FDVH VWXGLHV DQG
WKHLU H[DPSOHV DUH QRW H[KDXVWLYH PRUH FDVH VWXGLHV DQG H[DPSOHV DUH
QHHGHG %XW WKH SUREOHP KHUH LV WKDW MXVW DGGLQJ PRUH RI WKHP GRHV QRW
QHFHVVDULO\ FKDQJH WKH FRQFOXVLRQV WR EH GUDZQ DQG PD\ HYHQ OHDG WR
UHGXQGDQF\
$IWHUDOOWKHFDVHVWXGLHVDQGH[DPSOHVXVHGLQWKLVERRNDUHFKRVHQ
ZLWKFDUHDQGGHHPHGVXIILFLHQWIRUWKHSXUSRVHDWKDQGHYHQWKRXJKWKH\
DUHVROHO\LOOXVWUDWLYH
&KDSWHU,QWURGXFWLRQ7KH3UDFWLFHRI&XOLQDU\$UW
'HWDLOHG$QDO\VLVYHUVXV2YHUDOO6\QWKHVLV
7KLUGO\ WKHUH LV D GLVWLQFWLRQ EHWZHHQ GHWDLOHG DQDO\VLV DQG RYHUDOO
V\QWKHVLVLQWKDWWKHIRUPHULVHVSHFLDOO\WKRXJKQRWH[FOXVLYHO\PRUHIRU
WKH VSHFLDOL]HG YLHZSRLQW RI D VSHFLILF GLVFLSOLQH ZKHUHDV WKH ODWWHU LV
HVSHFLDOO\ WKRXJK QRW H[FOXVLYHO\ PRUH IRU WKH EURDG KRUL]RQ RI DQ
LQWHUGLVFLSOLQDU\DSSURDFKUHODWLYHO\VSHDNLQJRIFRXUVH
2UE\DQDORJ\WKHUHLVDGLVWLQFWLRQEHWZHHQGHSLFWLQJDWUHHZLWK
WLQ\ GHWDLOV LQ D IRUHVW DQG YLHZLQJ WKH HQWLUH IRUHVW LWVHOI ZLWK WKH
EURDGHUKRUL]RQ
7KLV ERRN OLNH DOO SUHYLRXV RQHV RI PLQH WULHV WR VWULNH D EDODQFH
EHWZHHQWKHWZRIRUPVRIXQGHUVWDQGLQJDOWKRXJKWKLVGRHVQRWLPSO\WKDW
WKH WZR IRUPV VKRXOG EH H[DFWO\ HTXDOO\ RIIHUHG LQ DQ H[DFW
EDODQFH
,QVWHDGWKHERRNPRUHRIWHQWKDQQRWGRHVQRWDOORZWKHWLQ\GHWDLOV
WRREVFXUHWKHODUJHUSLFWXUHLQDJLYHQFDVHVWXG\EHFDXVHWKHHQWLUHERRN
LV LQWHUGLVFLSOLQDU\ LQ QDWXUH DQG WULHV WR ORRN DW WKH HQWLUH IRUHVW QRW
EHLQJERJJHGGRZQZLWKWKHGHWDLOHGDQDO\VLVRIDQLQGLYLGXDOWUHHLQWKH
IRUHVWE\DQDORJ\
,Q WKLV VHQVH DOWKRXJK GHWDLOHG DQDO\VLV FDQ EH SURYLGHG ZKHQHYHU
QHHGHG IRU D JLYHQ FDVH VWXG\ WKH LPSRUWDQW SRLQW WR UHPHPEHU LV WKH
RYHUDOOKRUL]RQZLWKLWVEURDGQHVVRIVFRSH
7KUHH'LVWLQFWLYH)HDWXUHVRI8VLQJ4XRWDWLRQV
)RXUWKO\ WKH ZD\ WKDW TXRWHV DUH XVHG LQ WKLV ERRN DQG RWKHUV RI
PLQHKDVWKUHHGLVWLQFWLYHIHDWXUHVDVH[SODLQHGEHORZ
7KH ILUVW GLVWLQFWLYH IHDWXUH LV WKDW DW WKH HQG RI HDFK TXRWDWLRQ
VRPHWLPHV WKHUH DUH PRUH WKDQ RQH UHIHUHQFHLQ ZKLFK FDVH WKH ILUVW
UHIHUHQFHLVIRUWKHRULJLQDOFLWDWLRQDQGWKHUHVWRIWKHUHIHUHQFHVDUHIRU
WKH FRQYHQLHQFH RI WKH UHDGHU IRU PRUH LQIRUPDWLRQ DERXW WKH LVVXHV
XQGHUTXRWDWLRQ
7KHVHFRQGGLVWLQFWLYH IHDWXUHLV WKDWTXRWDWLRQVDUH XVHG DVRIWHQDV
SRVVLEOHVRDVWROHWRWKHUVVSHDNIRUWKHPVHOYHVZLWKRXWWKHQXLVDQFHRI
SXWWLQJ P\ RZQ ZRUGV LQWR WKHLU PRXWKV (YHQ PRUH LPSRUWDQWO\ WKLV
DOORZVPHWRXVHWKHRULJLQDOWH[WDVDQHYLGHQFHIRUFULWLFDODQDO\VLVDWWKH
HQGRIHDFKVHFWLRQ
$QG WKH WKLUG GLVWLQFWLYH IHDWXUH LV WKDW DOO WKHVH TXRWDWLRQV DUH XVHG
IRUP\RZQSXUSRVHVLQWKDW,RIWHQFUHDWLYHO\RURULJLQDOO\UHRUJDQL]H
WKHPIRUDQHZZD\RIDQDO\]LQJWKHLVVXHVLQTXHVWLRQ
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7ZR'LIILFXOWLHVZLWK8QGHUVWDQGLQJ
)LIWKO\ WR XQGHUVWDQG WKLV ERRN RU DQ\ RWKHU ERRN RI PLQH LV
GLIILFXOWIRUWZRPDLQUHDVRQV
,QUHJDUGWRWKHILUVWGLIILFXOW\WKLVERRNMXVWOLNHPDQ\RWKHUERRNV
RIPLQHLVLQFRQFHSWXDODQGWKHRUHWLFDOFRQYHUVDWLRQZLWKRWKHUERRNVRI
PLQH ERRNV DV RI $SULO VR WKLV UHTXLUHV D YDVW EDFNJURXQG
LQIRUPDWLRQRQQXPHURXVVXEMHFWPDWWHUV
$QG LQ UHJDUG WR WKH VHFRQG GLIILFXOW\ WKLV ERRN DOVR DQDO\]HV WKH
VXEMHFW PDWWHU LQ D ZD\ YHU\ GLIIHUHQW IURP WKH H[SHFWDWLRQ RI D
FRQYHQWLRQDO VSHFLDOLVW UHDGHU VLQFH LW H[DPLQHV UHDOLW\ RXWVLGH WKH
VSHFLDOLVW
V LQWHUHVW RU RXWVLGH KLV RU KHU FRPIRUW ]RQH IURP WKH IRXU
EURDG SHUVSHFWLYHV RI WKH PLQG QDWXUH VRFLHW\ DQG FXOWXUH VXFK WKDW LW
FRYHUV DOO GRPDLQV RI NQRZOHGJH LQ WKH VRFLDO VFLHQFHV WKH QDWXUDO
VFLHQFHV WKH IRUPDO VFLHQFHV DQG WKH KXPDQLWLHV ,Q RWKHU ZRUGV WKRVH
ZKR DUH WUXO\ LQWHUHVWHG LQ P\ SURMHFW IRU D XQLILHG WKHRU\ RIHYHU\WKLQJ
ZRXOG ILQG PDQ\ ERRNV RI PLQH KLJKO\ VWLPXODWLQJ EXW WKRVH ZKR DUH
VSHFLDOLVWVLQDVXEMHFW PDWWHUOLNHSK\VLFVJHRJUDSK\FKHVVDQGVRRQ
LQDVWULFWO\VSHFLDOLVWVHQVHZLOOQRWILQGWKHPVXLWDEOHWRWKHLUVSHFLDOLVW
WDVWHRUH[SHFWDWLRQ
1RW VXUSULVLQJO\ D FRQYHQWLRQDO VSHFLDOLVW UHDGHU ZRXOG ILQG WKHVH
WZR GLIILFXOWLHV ZLWK XQGHUVWDQGLQJ DOPRVW SUDFWLFDOO\ LPSRVVLEOH WR
RYHUFRPHDVWKH\DOPRVWUHTXLUHWKHPLQGRIDSRO\PDWK(YHQWKHQWKH
EHVWDGYLFHLVWKDWRQHVKRXOGVWLOOWU\RQHVEHVWWRXQGHUVWDQGLW
5HSHWLWLRQ
6L[WKO\ PDQ\ RI P\ ERRNV KDYH VRPHWKLQJ LQ FRPPRQ DQG WKH
UHDVRQ LV WR VKRZ WKH XQLILHG WKHRU\ RI HYHU\WKLQJ LQ DOO GRPDLQV RI
NQRZOHGJH
)RU WKLV UHDVRQ WKHUH LV FHUWDLQ UHSHWLWLRQ LQ DOO ERRNV HVSHFLDOO\ LQ
UHJDUG WR WKH EDFNJURXQG LQIRUPDWLRQ WRJHWKHU ZLWK WKH WDEOHV LQ WKH
LQWURGXFWRU\ FKDSWHU DQG WKH FRQFOXGLQJ FKDSWHU 7KHUHIRUH WKHVH ERRNV
DUHDOOWLWOHG7KH)XWXUHRI3RVW+XPDQBBBBRUDWWLPHV%H\RQGBBBB
WRBBBBDQGFRQVWLWXWHWKHSRVWKXPDQVHULHV
7KH8VHRI1HRORJLVPV
$QG ILQDOO\ , XVH GLIIHUHQW QHRORJLVPV LQ P\ ERRNV PRVWO\ WR
LQWURGXFH P\ RULJLQDO FRQFHSWV DQG WKHRULHV DQG JRRG LQVWDQFHV LQFOXGH
WKRVHKHUHRUHOVHZKHUHLQP\SUHYLRXVERRNVHJWKHLQTXLVLWLYHWKHRU\
&KDSWHU,QWURGXFWLRQ7KH3UDFWLFHRI&XOLQDU\$UW
SRVWGHPRFUDF\
DQG RWKHU RQHV DV LQWURGXFHG LQ>WKH@ SURMHFW
HJ
SRVWKXPDQ HOLWLVWV
DQG
SRVWKXPDQ FRXQWHUHOLWLVWV
MXVW WR FLWH D
IHZRIWKHPDUHPRUHIRURXUFXUUHQWLQWHOOHFWXDOFRQYHQLHQFHWKDQWRWKH
OLNLQJ RI IXWXUH KXPDQV DQG SRVWKXPDQV ZKR ZLOO VXUHO\ LQYHQW PRUH
WDVWHIXOQHRORJLVPVWRFDOOWKHLURZQHUDVHQWLWLHVDQGHYHU\WKLQJHOVHIRU
WKDWPDWWHU%XWWKHGLGDFWLFSRLQWKHUHLVWRXVHWKHWHUPVWRIRUHWHOOZKDW
WKH IXWXUH PLJKW EH OLNH QRW WKDW LWV HUDV DQG HQWLWLHV PXVW EH FDOOHG VR
H[DFWO\ DQG SHUPDQHQWO\ $IWHU DOO :LOOLDP 6KDNHVSHDUH $FW ,,
6FHQH,,/LQHZHOOVDLGORQJDJR
:KDWLVLQDQDPH"7KDWZKLFKZH
FDOODURVHE\DQ\RWKHUQDPHZRXOGVPHOODVVZHHW
$V,KDGDOVRVWUHVVHGWLPHDQGDJDLQEHIRUHHDFKRIWKHQHRORJLVPV
FDQEHUHZULWWHQDVDGLIIHUHQW;RQO\WREHUHQDPHGGLIIHUHQWO\E\WKH
SRZHUVWKDWEHLQGLIIHUHQWHUDVRIIXWXUHKLVWRU\
:LWK WKHVH FODULILFDWLRQV IRU WKRXJKW LQ PLQG, QRZ SURFHHG WR
&KDSWHU7ZRRQLQJUHGLHQWVDQGWKHLUWZLQTXDOLWLHV
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7DEOH*HQHUDO&KDUDFWHULVWLFVRI&XOLQDU\$UW
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
,QJUHGLHQWVDQG7HFKQLTXHV
,QJUHGLHQWV
([PROHFXOHV
([PDWWHUV
([GLHWDQGQXWULWLRQ
7HFKQLTXHV
([KDUYHVWLQJ
([VODXJKWHULQJ
([FRRNLQJ
([SUHVHUYLQJ
([SUHVHQWLQJ
$UWDPG6FLHQFH
$VDQDUWIRUH[DPSOHLQWKHFRQWH[WRIIRRGSUHVHQWDWLRQ
$VDVFLHQFHIRUH[DPSOHLQWKHFRQWH[WRIIRRGVFLHQFH
6XE)LHOGV
([IRRGVDIHW\
([IRRGPLFURELRORJ\
([IRRGHQJLQHHULQJ
([IRRGFKHPLVWU\
([IRRGWHFKQRORJ\
([IRRGSK\VLFV
&DUHHUV
([FRQVXOWLQJDQGGHVLJQVSHFLDOLVWV
([GLQLQJURRPVHUYLFH
([IRRGDQGEHYHUDJHFRQWUROOHU
([HQWUHSUHQHXUVKLS
([IRRGVW\OLVWVDQGSKRWRJUDSKHUV
([IRRGZULWHUVDQGIRRGFULWLFV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
1RWHV 7KH FDWHJRULHV DUH VROHO\ LOOXVWUDWLYH QRW H[KDXVWLYH DQG WKH
FRPSDULVRQ LV UHODWLYH QRW DEVROXWH QRU DUH WKH\ QHFHVVDULO\ PXWXDOO\
H[FOXVLYH$QGVRPHFDQEHHDVLO\UHFODVVLILHGHOVHZKHUH$VJHQHUDOLWLHV
WKH\DOORZH[FHSWLRQV
6RXUFH)URP6HF 6HFRI)3+&$6HHERRNIRUFLWDWLRQV
&KDSWHU,QWURGXFWLRQ7KH3UDFWLFHRI&XOLQDU\$UW
7DEOH1LQH*UHDW)XWXUH7UDQVIRUPDWLRQVRI&XOLQDU\$UW
3DUW,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
,Q5HODWLRQWRWKH0LQG
1HZ*RDOV
7KLV VHDUFK VHDUFK IRU QHZ JRDOV ZLOO JLYH IXWXUH DGYDQFHG
KXPDQV DQG ODWHU WKHLU VXFFHVVRUV QDPHO\ WKH SRVWKXPDQV
GLIIHUHQW PRWLYDWLRQV WR LPSURYH FXOLQDU\ DUW LQ D ZD\ WKDW
FXUUHQWKXPDQVFDQQRWLQUHODWLRQWRP\SUHYLRXVYLVLRQVRQWKH
IXWXUH SRVWKXPDQ VXSHUVHVVLRQ RI WKH KXPDQ PLQG OLNH WKH
VXSHUVHVVLRQFRPSXWLQJPHWDPRUSKLFKXPRUWKHFRQWUDULDQ
SHUVRQDOLW\WKHK\SHUPDUWLDOERG\WKHK\SHUVH[XDOERG\
IORDWLQJ FRQVFLRXVQHVV K\SHUVSDWLDO FRQVFLRXVQHVV
WKLQNLQJ PDFKLQHV XQIROGLQJ XQFRQVFLRXVQHVV WKLQNLQJ
URERWVJHQHWLFDOO\DOWHUHGVXSHULRUEHLQJVF\ERUJVHWF)RU
LQVWDQFH PRVW DGYDQFHG IRUPV RI IXWXUH LQWHOOLJHQW OLIH LQ GHHS
VSDFH XQWLO PXOWLYHUVHV HJ IORDWLQJ FRQVFLRXVQHVV GR QRW
QHHG WR KDYH WKH SK\VLFDO ERGLHV WKDW FXUUHQW KXPDQV KDYH DQG
WKHUHIRUH GR QRW QHFHVVDULO\ QHHG WKH IRRGVWXIIV WKDW FXUUHQW
KXPDQVGR
1HZ0HDQV
7KLV TXHVW IRU QHZ PHDQV ZLOO JLYH IXWXUH DGYDQFHG KXPDQV DQG
ODWHUWKHLUVXFFHVVRUV QDPHO\WKHSRVWKXPDQVWKHFDSDFLW\WR
ILQG QRYHO RSWLRQV WR DFKLHYH WKH JRDOV RI FXOLQDU\ DUW LQ D ZD\
WKDWFXUUHQWKXPDQVFDQQRW
,Q5HODWLRQWR1DWXUH
1HZ&RPSDULVRQV
7KLV VHDUFK IRU QHZ FRPSDULVRQV ZLOO JLYH IXWXUH DGYDQFHG
KXPDQVDQGODWHUWKHLUVXFFHVVRUVQDPHO\WKHSRVWKXPDQVWKH
DELOLW\ WR OHDUQ IURP DQLPDOV SODQWV DQG WKH XQLYHUVH WKURXJK
FRPSDULVRQDQGFRQWUDVWDERXWWKHIXWXUHRIFXOLQDU\DUWLQDZD\
WKDWFXUUHQWKXPDQVFDQQRW
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
FRQWLQXHGRQQH[WSDJH
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7DEOH1LQH*UHDW)XWXUH7UDQVIRUPDWLRQVRI&XOLQDU\$UW
3DUW,,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
,Q5HODWLRQWR1DWXUHFRQWG
1HZ,QWHJUDWLRQV
7KLVVHDUFKIRUQHZLQWHJUDWLRQVZLOOJLYHIXWXUHDGYDQFHGKXPDQV
DQGODWHUWKHLUVXFFHVVRUVQDPHO\WKHSRVWKXPDQVWKHDELOLW\WR
OLYHDQGLQWHUDFWZLWKQDWXUHIRUWKHIXWXUHRIFXOLQDU\DUWLQDZD\
WKDWFXUUHQWKXPDQVFDQQRW7KLVLVHVSHFLDOO\VRLQWKHFRQWH[W
RIWKHJUHDWIXWXUHWUDQVIRUPDWLRQVRIJHRORJ\LQ)3+*(2/RI
JHRJUDSK\ LQ )3+*(2* RI PLJUDWLRQ LQ )3+0,* DQG RI
WUDQVSRUWDWLRQ LQ )3+75$1LQ UHODWLRQ WR P\ SUHYLRXV
YLVLRQV RQ WKH IXWXUH SRVWKXPDQ DGYHQWXUHV LQWR GLIIHUHQW
GLPHQVLRQVRIVSDFHWLPHXQWRPXOWLYHUVHVOLNHWKHDOWHUDWLRQRI
VSDFHWLPH7DEOH 7DEOHPXOWLYHUVHV7DEOH
7DEOHK\SHUVSDFH7DEOH 7DEOHWLPHWUDYHO
7DEOH 7DEOHDQGRWKHUV
7KLVH[WHQVLRQLVFRQVLVWHQW ZLWK P\RWKHUWKHRU\ QDPHO\ WKH
WKHRU\ RI WKH F\FOLFDO SURJUHVVLRQ RI V\VWHP LQWHJUDWLRQ DQG
IUDJPHQWDWLRQ LQ )&' DW WKH VRFLDOV\VWHPLF OHYHO DV
DOUHDG\FODULILHGLQ6HFDQGVKRZQEHORZ
/RFDO5HJLRQDO*OREDO6RODU
*DODFWLF&OXVWHU\0XOWLYHUVDO
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
FRQWLQXHGRQQH[WSDJH
&KDSWHU,QWURGXFWLRQ7KH3UDFWLFHRI&XOLQDU\$UW
7DEOH1LQH*UHDW)XWXUH7UDQVIRUPDWLRQVRI&XOLQDU\$UW
3DUW,,,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
,Q5HODWLRQWR6RFLHW\
1HZ3UD[HV
7KLVVHDUFKIRUQHZSUD[HVZLOOJLYHIXWXUHDGYDQFHGKXPDQVDQG
ODWHU WKHLU VXFFHVVRUV QDPHO\ WKH SRVWKXPDQV WKH DELOLW\ WR
HQJDJH LQ SUDFWLFH OLNH DFWLYLVP SROLWLFV SHUVRQDO H[SHULHQFH
HWF IRU WKH IXWXUH RI FXOLQDU\ DUW LQ D ZD\ WKDW FXUUHQW KXPDQV
FDQQRW
1HZ7HFKQRORJLHV
7KLV VHDUFK IRU QHZ WHFKQRORJLHV ZLOO JLYH IXWXUH DGYDQFHG
KXPDQVDQGODWHUWKHLUVXFFHVVRUVQDPHO\WKHSRVWKXPDQVWKH
DELOLW\ WR FRPH XS ZLWK GLIIHUHQW WHFKQLTXHV PDWHULDOV DQG
H[SHULPHQWV IRU WKH IXWXUH RI FXOLQDU\ DUW LQ D ZD\ WKDW FXUUHQW
KXPDQVFDQQRW
1HZ6WUDWLILFDWLRQV
7KLV HPHUJHQFH RI QHZ VWUDWLILFDWLRQV ZLOO OHDG IXWXUH DGYDQFHG
KXPDQV DQG ODWHU WKHLU VXFFHVVRUV QDPHO\ WKH SRVWKXPDQV WR
IDFH QHZ LQHTXDOLWLHV LQ WKH IXWXUH RI FXOLQDU\ DUW LQ D ZD\ WKDW
FXUUHQWKXPDQVFDQQRW
,Q5HODWLRQWR&XOWXUH
1HZ6XE)LHOGV
7KLVVHDUFKIRUQHZVXEILHOGVZLOOJLYHIXWXUHDGYDQFHGKXPDQV
DQGODWHUWKHLUVXFFHVVRUVQDPHO\WKHSRVWKXPDQVWKHDELOLW\WR
H[SORUHQHZVSHFLDOWLHVIRUWKHIXWXUHRIFXOLQDU\DUWLQDZD\WKDW
FXUUHQWKXPDQVFDQQRW
1HZ,QWHUSUHWDWLRQV
7KLV VHDUFK IRU QHZ LQWHUSUHWDWLRQV ZLOO JLYH IXWXUH DGYDQFHG
KXPDQVDQGODWHUWKHLUVXFFHVVRUVQDPHO\WKHSRVWKXPDQVWKH
DELOLW\ WR FRPH XS ZLWK GLIIHUHQW HYDOXDWLRQV DQG YLHZV DERXW
FXOLQDU\DUWLQDZD\WKDWFXUUHQWKXPDQVFDQQRW
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
1RWHV7KHFDWHJRULHVDQGH[DPSOHVDUHVROHO\LOOXVWUDWLYHQRWH[KDXVWLYH
DQG WKH FRPSDULVRQ LV UHODWLYH QRW DEVROXWH QRU DUH WKH\ QHFHVVDULO\
PXWXDOO\ H[FOXVLYH $QG VRPH FDQ EH HDVLO\ UHFODVVLILHG HOVHZKHUH $V
JHQHUDOLWLHVWKH\DOORZH[FHSWLRQV
6RXUFH)URP&KRI)3+&$6HHWH[WIRUFLWDWLRQV
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7DEOH7KH7KHRUHWLFDO'HEDWHRQ6SDFH7LPH
3DUW,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
,VDDF1HZWRQV$EVROXWLVW6XEVWDQWLYLVW7KHRU\RI6SDFH7LPH
VSDFH DQG WLPH DUH LQGHSHQGHQW IURP HDFK RWKHU 7KH VWUXFWXUH RI
VSDFHWLPH LV (( ZLWK WKH VWUXFWXUH RI VSDFH 3 DV WKH VHW RI
VSDWLDO ORFDWLRQV LQ D WKUHHGLPHQVLRQDO (XFOLGHDQ VSDFH ( DQG
WKHVWUXFWXUHRIWLPHDVWKHVHWRIWHPSRUDOPRPHQWV7LQWKHRQH
GLPHQVLRQDOUHDOWLPH(
VSDFH DQG WLPH DUH DOVR LQGHSHQGHQW IURP WKH HIIHFWV RI PDWWHU DQG
HYHQWV 7KH H[LVWHQFH RI VSDFH DQG WLPH LV SRVVLEOH HYHQ LQ D ZRUOG
DEVHQW RI PDWWHU DQG IRU WKDW PDWWHU HYHQ LQ D ZRUOG DEVHQW RI
HYHQWV DV LI WKH\ ZHUH PDWHULDO REMHFWV EXW ZLWK WKHLU WRWDO
XQFKDQJLQJQHVVWKRURXJKWLPH
$OEHUW(LQVWHLQV5HODWLYLVW7KHRU\RI6SDFH7LPH
VSDFHDQGWLPHDUHLQWHUFKDQJHDEOHQRWDEVROXWHMXVWDVPDWWHUDQG
HQHUJ\DUHHTXLYDOHQWQRWLQGHSHQGHQWZLWKWKHIDPRXVHTXDWLRQ(
PFDVLQWKHVSHFLDOWKHRU\RIUHODWLYLW\LQ
VSDFHWLPHDQGPDWWHUHQHUJ\DUHDOVRUHODWLYHLQDJUDQGXQLRQDVLQ
WKH JHQHUDO WKHRU\RIUHODWLYLW\LQ7KXVHDFKSDLUDIIHFWV WKH
RWKHU SDLU DV PDWWHU
WHOOV
VSDFHWLPH KRZ WR FXUYH >LQ D QRQ
(XFOLGHDQ JHRPHWU\@ DQG FXUYHG VSDFHWLPH
WHOOV
PDWWHU KRZ WR
EHKDYH6SDFH FRQWUDFWV QHDU PDVV DQG GLODWHV DZD\ IURP LW 7LPH
GLODWHV QHDU PDVV DQG FRQWUDFWV DZD\ IURP LW &ORFNV SRVLWLRQHG
IDUWKHUDZD\IURPWKHPDVVRIWKHHDUWKUXQIDVWHUWKDQFORFNVFORVHUWR
WKHHDUWK/6KODLQ
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
FRQWLQXHGRQQH[WSDJH
&KDSWHU,QWURGXFWLRQ7KH3UDFWLFHRI&XOLQDU\$UW
7DEOH7KH7KHRUHWLFDO'HEDWHRQ6SDFH7LPH
3DUW,,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
3HWHU%DRIXV3HUVSHFWLYDO7KHRU\RI6SDFH7LPH
VSDFHDQGWLPHFDQEHXQGHUVWRRGIURPPXOWLSOHSHUVSHFWLYHVEHWKH\
LQ UHODWLRQ WR FXOWXUH VRFLHW\ QDWXUH DQG WKH PLQG ZLWK HDFK
SHUVSHFWLYH UHYHDOLQJ VRPHWKLQJ DERXW WKH QDWXUH RI VSDFHWLPH DQG
VLPXOWDQHRXVO\GHOLPLWLQJLWVYLHZ7KLVLVVXEMHFWWRWKHUHJUHVVLRQ
SURJUHVVLRQSULQFLSOHLQH[LVWHQWLDOGLDOHFWLFV
HDFKSHUVSHFWLYHRIVSDFHDQGWLPHH[LVWVLQVRFLHW\DQGFXOWXUHZLWK
JRRG UHDVRQV ZLWK VRPH EHLQJ PRUH VXFFHVVIXO DQG KHJHPRQLF
GRPLQDQWWKDQRWKHUV7KLVLVVXEMHFWWRWKHV\PPHWU\DV\PPHWU\
SULQFLSOHLQH[LVWHQWLDOGLDOHFWLFV
VSDFHDQGWLPHZLOOQRWODVWWREHHYHQWXDOO\VXSHUVHGHGDOWHUHGE\
SRVWKXPDQV LQ GLIIHUHQW IRUPV HJVWUHWFKLQJVKULQNLQJ VSDFHWLPH
HQJLQHHULQJ PRUH GLPHQVLRQV RI VSDFHWLPH DQG PDQLSXODWLQJ
PXOWLYHUVHV EH WKH\ KHUH LQ WKLV XQLYHUVH RU LQ PXOWLYHUVHV 7KXV
HYHQ WKH SK\VLFDO H[LVWHQFH RI VSDFHWLPH FDQQRW ODVW IRUHYHU ZLWK
HYHU PRUH WUDQVIRUPDWLRQV LQ WKH SURFHVV 7KLV LV VXEMHFW WR WKH
FKDQJHFRQVWDQF\SULQFLSOHLQH[LVWHQWLDOGLDOHFWLFV
WKH FRQYHQWLRQDO ZLVGRP HVSHFLDOO\ E\ SK\VLFLVWV RI WUHDWLQJ WKH
SK\VLFDOSHUVSHFWLYHRIVSDFHDQGWLPHDVWKHIRXQGDWLRQRIDOORWKHU
SHUVSHFWLYHVRIVSDFHDQGWLPHDQGRIUHJDUGLQJWKHPDVPXFKOHVV
LPSRUWDQW LV D IRUP RI UHGXFWLRQLVPFRPPLWWLQJ ZKDW , FDOO WKH
IRXQGDWLRQ IDOODF\ LQ PLVOHDGLQJO\ GLVPLVVLQJ WKH PXOWLSOH
SHUVSHFWLYHVRIVSDFHDQGWLPHLQUHODWLRQWRFXOWXUHVRFLHW\QDWXUH
DQGWKHPLQG
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
1RWHV 7KH H[DPSOHV LQ HDFK FDWHJRU\ DUH VROHO\ LOOXVWUDWLYH QRW
H[KDXVWLYH DQG WKH FRPSDULVRQ LV UHODWLYH QRW DEVROXWH QRU DUH WKH\
QHFHVVDULO\ PXWXDOO\ H[FOXVLYH 6RPH FDQ EH HDVLO\ UHFODVVLILHG
HOVHZKHUH$VJHQHUDOLWLHVWKH\DOORZH[FHSWLRQV
6RXUFH$VXPPDU\RI6HF6HFDQG6HFRI)3+67DQGIRU
WKDWPDWWHUWKHUHVWRI)3+67
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7DEOH0DLQ5HDVRQVIRU$OWHULQJ6SDFH7LPH
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
7KH1HHGWR0DNH1HZ(QHUJ\0DWWHU
([PDQLSXODWLQJPROHFXODUERQGVIRUQHZPDWHULDOV
([FUHDWLQJQDQRWHFKQRORJLHVRQWKHDWRPLFVFDOH
([HQJLQHHULQJWKHDWRPLFQXFOHXV
([UHVWUXFWXULQJPRVWHOHPHQWDU\SDUWLFOHV
([LQYHQWLQJQHZIRUPVRIPDWWHUDQGHQHUJ\
7KH1HHGWR&UHDWH1HZ6SDFH7LPH
([FUHDWLQJZDUSGULYHDVLQVFLHQFHILFWLRQIRUVSDFHWUDYHO
([FUHDWLQJSRFNHWXQLYHUVHV
7KH1HHGWR&RQTXHUWKH&RVPRVXQWR0XOWLYHUVHV
([ VSUHDGLQJ IORDWLQJ FRQVFLRXVQHVV DQG K\SHUVSDWLDO
FRQVFLRXVQHVVEHVLGHVRWKHUIRUPVWKDWKXPDQVKDYHQHYHUNQRZQLQ
WKHFRVPRVDQGEH\RQGXQWRPXOWLYHUVHVIRUXOWLPDWHFRQTXHVW
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
1RWHV 7KH H[DPSOHV LQ HDFK FDWHJRU\ DUH VROHO\ LOOXVWUDWLYH QRW
H[KDXVWLYH QRU QHFHVVDULO\ PXWXDOO\ H[FOXVLYH DQG WKH FRPSDULVRQ LV
UHODWLYH QRW DEVROXWH $V JHQHUDOLWLHV WKH\ DOORZ H[FHSWLRQV $OVR LW
VKRXOG EH VWUHVVHG WKDW WKH WKUHH UHDVRQV DUH DOO UHODWHG LQ WKDW WKH\ DOO
FRQWULEXWH WR WKH HYROXWLRQ RI LQWHOOLJHQW OLIH LQ WKH FRVPRV XQWR
PXOWLYHUVHVLQWKHPRVWGLVWDQWIXWXUHEH\RQGRXUFXUUHQWNQRZOHGJH
6RXUFHV$VXPPDU\RI6HFRI)3+676HHDOVR)+&)&')3+&
)&)3+8DQG)3+*IRUH[DPSOH
&KDSWHU,QWURGXFWLRQ7KH3UDFWLFHRI&XOLQDU\$UW
7DEOH7KH7HFKQRORJLFDO)URQWLHUVRIWKH0LFUR:RUOG
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
7\SH,0LQXV
([EXLOGLQJVWUXFWXUHVDQGPLQLQJ
7\SH,,0LQXV
([SOD\LQJZLWKWKHJHQHWLFPDNHXSVRIOLYLQJWKLQJV
7\SH,,,0LQXV
([PDQLSXODWLQJPROHFXODUERQGVIRUQHZPDWHULDOV
7\SH,90LQXV
([FUHDWLQJQDQRWHFKQRORJLHVRQWKHDWRPLFVFDOH
7\SH90LQXV
([HQJLQHHULQJWKHDWRPLFQXFOHXV
7\SH9,0LQXV
([UHVWUXFWXULQJPRVWHOHPHQWDU\SDUWLFOHV
7\SH0LQXV
([DOWHULQJWKHVWUXFWXUHRIVSDFHWLPH
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
1RWHV$VDOUHDG\LQGLFDWHGLQ6HFRI)3+&WKHSUREOHPZLWKWKLV
PLFURFODVVLILFDWLRQ IURP %DUURZV ZRUN LV WKDW WKH FLYLOL]DWLRQ W\SHV
ZLWKWKHH[FHSWLRQRI7\SH0LQXVIRUH[DPSOHDUHQRWTXLWHGLVWLQFW
VLQFHPDQ\RIWKHPFDQEHDFKLHYHGPRUHRUOHVVLQDFLYLOL]DWLRQWRWKH
H[WHQW WKDW 7\SH ,,PLQXV DQG 7\SH ,,,PLQXV MXVW WR FLWH WZR SODXVLEOH
W\SHVFDQEHKLVWRULFDOO\FRQWHPSRUDQHRXVUHODWLYHO\VSHDNLQJXQOLNHWKH
YDVW KLVWRULFDO GLVWDQFH EHWZHHQ VD\ 7\SH 2 DQG 7\SH , RU7\SH , DQG
7\SH,,FLYLOL]DWLRQV,QRWKHU ZRUGVWKH PLFURFODVVLILFDWLRQKHUHLVQRW
YHU\ XVHIXO WR XQGHUVWDQG FLYLOL]DWLRQ W\SHV EXW LV UHYHDOLQJ WR VHH WKH
WHFKQRORJLFDOIURQWLHUVRIWKHPLFURZRUOG
6RXUFHV$UHFRQVWUXFWLRQIURP-%DUURZDVRULJLQDOO\VKRZQ
LQ7DEOHRI)3+&6HH)3+&IRUPRUHLQIR
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7DEOH)LQLW\7UDQVILQLW\DQG,QILQLW\
3DUW,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
,QILQLW\
7KH WHUP LQILQLW\ ZKLFK LV V\PEROLFDOO\ UHSUHVHQWHG ZLWK
GHULYHV IURP WKH /DWLQ LQILQLWDV RU XQERXQGHGQHVV WR UHIHU WR
VHYHUDO GLVWLQFW FRQFHSWVXVXDOO\ OLQNHG WR WKH LGHD RI
ZLWKRXW
HQG
ZKLFK DULVH LQ SKLORVRSK\ PDWKHPDWLFV DQG WKHRORJ\ :.
F
,QWKHFRQWH[WRIPDWKHPDWLFVLQILQLW\LVRIWHQWUHDWHGDVLILWZHUH
D QXPEHU LH LW FRXQWV RU PHDVXUHV WKLQJV
DQ LQILQLWH QXPEHU RI
WHUPV
EXW LW LV D GLIIHUHQW W\SH RI
QXPEHU
IURP WKH UHDO QXPEHUV
,QILQLW\ LV UHODWHG WR OLPLWVODUJH FDUGLQDOVSURMHFWLYH JHRPHWU\
H[WHQGHG UHDO QXPEHUV DQG WKH DEVROXWH ,QILQLWH IRU LQVWDQFH :.
F
7UDQVILQLW\
7RDYRLGFRQIXVLRQP\XVDJHRIWKHZRUGWUDQVILQLWHDVXVHGKHUH
LQ WKH RQWRORJLFDO SULQFLSOH LV QRW WKH VDPH DV WKH RQH ZKLFK ZDV
RULJLQDOO\ FRLQHG E\ *HRUJ &DQWRU WR UHIHU WR FDUGLQDO QXPEHUV RU
RUGLQDO QXPEHUV WKDW DUH ODUJHU WKDQ DOO ILQLWH QXPEHUV \HW QRW
QHFHVVDULO\DEVROXWHO\LQILQLWHLQWKH PLQGRI*RGDVRSSRVHGWR
UHODWLYHLQILQLW\LQWKHPLQGRI0DQ:.G,QRWKHUZRUGV
IRU&DQWRUWKHUHDUHWZRNLQGVRILQILQLW\DEVROXWHDQGUHODWLYH
ZLWK UHODWLYH LQILQLW\ RU WUDQVILQLW\ LQ WKH PLQG RI 0DQ EHLQJ
GHSHQGHQW RQ DEVROXWH LQILQLW\ LQ WKH PLQG RI *RG IRU LWV
H[LVWHQFH
%\FRQWUDVWP\XVDJHRIWKHZRUGWUDQVILQLWHKHUHGLIIHUVUDGLFDOO\
IURPWKHRQHXVHGE\&DQWRUDQGRWKHUPDWKHPDWLFLDQVDQGLVPRUH
OLPLWHGLQOLJKWRIWKHSUREOHPVFRQIURQWLQJDQ\DWWHPSWWRXQGHUVWDQG
WKHLGHDRILQILQLW\EHLWE\LQWXLWLRQLPDJLQDWLRQDQGFRQFHSWLRQDV
DOUHDG\VKRZQLQWKHSUHYRXVWKUHHVXEVHFWLRQV
:LWK WKLV FODULILFDWLRQ LQ PLQG , DOORZ QXPEHUV ZKLFK FDQ EH PDQ\
WLPHV ODUJHURU VPDOOHU IRU WKDW PDWWHUWKDQ WKH ILQLWH WKLQJV WKDW
ZH HQFRXQWHU LQ GDLO\ OLIH EXW WKH\ GR QRW KDYH WR EH UHODWHG WR WKH
LGHDRILQILQLW\DWDOOZKLFKPD\QRWH[LVW
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
FRQWLQXHGRQQH[WSDJH
&KDSWHU,QWURGXFWLRQ7KH3UDFWLFHRI&XOLQDU\$UW
7DEOH)LQLW\7UDQVILQLW\DQG,QILQLW\
3DUW,,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
7UDQVILQLW\FRQWG
2IFRXUVHWKHUHPD\EHVRPHERUGHUOLQHFDVHVLQZKLFKLWLVQRWFOHDU
ZKHWKHUWKHQXPEHULQTXHVWLRQLVWUDQVILQLWHLQP\XVDJHRUVLPSO\
DPDWKHPDWLFDOFRQYHQLHQFH$JRRGH[DPSOHRIDERUGHUOLQHFDVHLV
WKH3ODQFNXQLWRIOHQJWKIRUWKHVPDOOHVWVSDFHSRVVLEO\PHDVXUHGLQ
QDWXUHZKLFKLVOHVVWKDQELOOLRQWKVRIWULOOLRQWKVRIWULOOLRQWKVRIDQ
LQFK RU VRPHWKLQJ OLNH PHWHUV 3 %DRIX D 1
0F$OHHU:.9'&RUEHWW
7KH LGHDV FRQFHUQLQJ V\PPHWU\ DQG GLPHQVLRQV LQ WKH H[DPSOHV
DERYH ZHUHDGGUHVVHGLQ&KDSWHU7KUHHDQG&KDSWHU)RXURI)3+*
)RU QRZ LW VXIILFHV WR IXUWKHU DGG WKDW LW LV PLQGERJJOLQJ WR HYHQ
FRQFHLYH RU LPDJLQH H[WUHPH QXPEHUV OLNH WKH 3ODQFN XQLW RI OHQJWK
RURWKHUV'RHVLWUHDOO\H[LVWDWDOO"2ULVLWPHUHO\DPDWKHPDWLFDO
FRQYHQLHQFHWRGHVFULEHDSK\VLFDOVLWXDWLRQWKDWWKHKXPDQPLQGGRHV
QRWXQGHUVWDQGSURSHUO\"
,Q DQ\ HYHQW WUDQVILQLW\ LQ P\ XVDJH FDQ EH XVHG DV D IXUWKHU
H[WHQVLRQRIQXPEHUWRWKHILQLWHQXPEHUVLQGDLO\OLIHDOEHLWZLWK
VRPHERUGHUOLQHFDVHVLQPLQG
)LQLW\
,W UHIHUV WR QXPEHUV ZKLFK DUH ERXQGHG WKDW LV ZLWK DQ HQG
HVSHFLDOO\ WKRXJK QRW H[FOXVLYHO\ LQ UHODWLRQ WR WKLQJV LQ HYHU\GD\
OLIH
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
6RXUFH)URP6HFDQG6HFRI)3+*
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7DEOH7KHRUHWLFDO6SHFXODWLRQVRI0XOWLYHUVHV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
%DE\8QLYHUVHV([$QGUH/LQGHDQGRWKHUV
([ ,Q D IODW XQLYHUVH WKHRU\ HYHQ LI RXU SDUW RI LW HYHQWXDOO\
FROODSVHVVRPH VSRWV LQ WKH FRVPRV ZRXOG VXGGHQO\ VWDUW LQIODWLQJ
RQ WKHLU RZQ FUHDWLQJ EUDQGQHZ
EDE\ XQLYHUVHV
3 %DRIX
3DUDOOHO8QLYHUVHV([6WHSKHQ+DZNLQJDQGRWKHUV
([ ,Q TXDQWXP FRVPRORJ\ WKHUH DOORZV WKH H[LVWHQFH RI LQILQLWH
QXPEHUVRISDUDOOHOXQLYHUVHVZLWKWXQQHOLQJDPRQJWKHP0.DNX
+DZNLQJODWHUUHYLVHGKLVYLHZVRQWKLV
3RFNHW8QLYHUVHV([$ODQ*XWK
([$VWKHSRFNHWXQLYHUVHVOLYHRXWWKHLUOLYHVDQGUHFROODSVHRU
GZLQGOHDZD\QHZXQLYHUVHVDUHJHQHUDWHGWRWDNHWKHLUSODFH:KLOH
OLIHLQRXUSRFNHWXQLYHUVHZLOOSUHVXPDEO\GLHRXWOLIHLQWKHXQLYHUVH
DV D ZKROH ZLOO WKULYH IRU HWHUQLW\ $ *XWK 3 %DRIX
%UDQH:RUOGV([:DUUHQ6LHJHO/LVD5DQGDOODQGRWKHUV
([2XUXQLYHUVHLVVWXFNRQDPHPEUDQHRIVSDFHWLPHHPEHGGHGLQ
D ODUJHU FRVPRV ZLWK GLIIHUHQW EUDQH ZRUOGV FRQQHFWLQJ DQGRU
FROOLGLQJZLWKHDFKRWKHU
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
1RWHV7KHVHH[DPSOHVDUHVROHO\LOOXVWUDWLYHQRWH[KDXVWLYHDQGVRPHRI
WKH LWHPV FDQ EH UHFODVVLILHG VRPHZKHUH HOVH 1RU DUH WKH\ DOZD\V
PXWXDOO\H[FOXVLYH6LQFHWKH\DUHJHQHUDOLWLHVH[FHSWLRQVDUHH[SHFWHG
6RXUFH)URP7DEOHRI)3+&
&KDSWHU,QWURGXFWLRQ7KH3UDFWLFHRI&XOLQDU\$UW
7DEOH7KH&RQIXVLRQEHWZHHQ0DQ\:RUOGVDQG0XOWLYHUVH
3DUW,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
)LUVW3UREOHP
7KHILUVWSUREOHPLQWKLVVHFRQGFRQIXVLRQFRQFHUQVDGHEDWHEHWZHHQ
WKH PDQ\ZRUOGV LQWHUSUHWDWLRQ RI TXDQWXP PHFKDQLFV E\ +XJK
(YHUHWWDQGRWKHUVDQGWKH&RSHQKDJHQLQWHUSUHWDWLRQE\1LHOV
%RKU DQG :HUQHU +HLVHQEHUJ RQ WKH HIIHFWV RI TXDQWXP VWDWHV DIWHU
LQWHUDFWLQJ ZLWK DQ H[WHUQDO HQYLURQPHQW HJ E\ D PHDVXULQJ
REVHUYHU
2Q WKH RQH KDQG WKH &RSHQKDJDQ LQWHUSUHWDWLRQ RI TXDQWXP
PHFKDQLFVLVPRUHLQGHWHUPLQLVWLFLQLWVFRQFHUQZLWKWKHSUREDELOLWLHV
RIWKHRXWFRPHVRIDZDYHIXQFWLRQDIWHULQWHUDFWLQJZLWKDQH[WHUQDO
HQYLURQPHQW HJ E\ D PHDVXULQJ REVHUYHU XVLQJ OLJKW WR GHWHFW IRU
H[DPSOH DQ HOHFWURQ LQ D SDUWLFXODU UHJLRQ DURXQG WKH QXFOHXV DW D
SDUWLFXODU WLPH :. H (DFK ZDYH IXQFWLRQ IRU WKH VWDWH RI D
SDUWLFOHUHIHUVWRDPDWKHPDWLFDOUHSUHVHQWDWLRQXVHGWRFDOFXODWHWKH
SUREDELOLW\IRULWWREHIRXQGLQDORFDWLRQRUVWDWHRIPRWLRQ:.
I $QG WKH ZDYHIXQFWLRQ FROODSVH PHDQV WKDW WKH DFW RI
PHDVXUHPHQWFDXVHVWKHFDOFXODWHGVHWRISUREDELOLWLHVWR
FROODSVH
WR
WKHYDOXHGHILQHGE\WKHPHDVXUHPHQW:.I
2Q WKH RWKHU KDQG WKH (YHUHWWV LQWHUUSHWDWLRQ LV PRUH GHWHUPLQLVWLF
LQ UHMHFWLQJ WKH REMHFWLYH UHDOLW\ RI ZDYHIXQFWLRQ FROODSVH DQG
LQVWHDG H[SODLQLQJ WKH VXEMHFWLYH DSSHDUDQFH RI ZDYHIXQFWLRQ
FROODSVHZLWKWKHPHFKDQLVPRITXDQWXPGHFRKHUHQFH:.J
7KHZRUGVTXDQWXPGHFRKHUHQFHKHUHUHIHUVWRWKHPHFKDQLVPE\
ZKLFK TXDQWXP V\VWHPV LQWHUDFW ZLWK WKHLU HQYLURQPHQWV WR H[KLELW
SUREDELOLVWLFDOO\DGGLWLYHEHKDYLRULQVXFKDZD\WKDWWKHTXDQWXP
QDWXUH RI WKH V\VWHP LV VLPSO\
OHDNHG
LQWR WKH HQYLURQPHQW :.
J )RU H[DPSOH >D@V D UHVXOW RI DQ LQWHUDFWLRQ WKH ZDYH
IXQFWLRQV RI WKH V\VWHP DQG WKH PHDVXULQJ GHYLFH EHFRPH HQWDQJOHG
ZLWKHDFKRWKHU'HFRKHUHQFHKDSSHQVZKHQGLIIHUHQWSRUWLRQVRIWKH
V\VWHP
V ZDYHIXQFWLRQ EHFRPH HQWDQJOHG LQ GLIIHUHQW ZD\V >LWDOLF
DGGHG@ZLWKWKHPHDVXULQJGHYLFH:.J7KXVIRU(YHUHWW
WKH DSSHDUDQFH RI ZDYHIXQFWLRQ FROODSVH FDQ EH H[SODLQHG E\
TXDQWXPGHFRKHUHQFHIRUTXDQWXPVWDWHVWREUDQFKRXWLQGLIIHUHQW
LQGHSHQGHQWZRUOGVDIWHULQWHUDFWLQJZLWKDQH[WHUQDOHQYLURQPHQW
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
FRQWLQXHGRQQH[WSDJH
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7DEOH7KH&RQIXVLRQEHWZHHQ0DQ\:RUOGVDQG0XOWLYHUVH
3DUW,,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
)LUVW3UREOHPFRQWG
<HW D PDMRU FULWLFLVP DJDLQVW (YHUHWWV LQWHUSUHWDWLRQ LV WKDW WKHVH
GLIIHUHQW LQGHSHQGHQW ZRUOGV LQ (YHUHWWV VHQVH ZLOO QHYHU EH
DFFHVVLEOH WR XV EHFDXVH RI WKH LQWHUIHUHQFH E\ WKH PHDVXULQJ
REVHUYHULQDQH[WHUQDOHQYLURQPHQW:.J
)RU LOOXVWUDWLRQ RQFH D PHDVXUHPHQW LV GRQH WKH PHDVXUHG V\VWHP
EHFRPHV HQWDQJOHG ZLWK ERWK WKH SK\VLFLVW ZKR PHDVXUHG LW DQG D
KXJH QXPEHU RI RWKHU SDUWLFOHV VRPH RI ZKLFK DUH SKRWRQV IO\LQJ
DZD\WRZDUGVWKHRWKHUHQGRIWKHXQLYHUVHLQRUGHUWRSURYHWKDWWKH
ZDYH IXQFWLRQ GLG QRW FROODSVH RQH ZRXOG KDYH WR EULQJ DOO WKHVH
SDUWLFOHVEDFNDQGPHDVXUHWKHPDJDLQWRJHWKHUZLWKWKHV\VWHPWKDW
ZDV PHDVXUHG RULJLQDOO\ 7KLV LV FRPSOHWHO\ LPSUDFWLFDO EXW HYHQ LI
RQH FDQ WKHRUHWLFDOO\ GR WKLV LW ZRXOG GHVWUR\ DQ\ HYLGHQFH WKDW WKH
RULJLQDOPHDVXUHPHQWWRRNSODFHLQFOXGLQJWKHSK\VLFLVW
VPHPRU\
:.J
%XWWKHQWKHFULWLFVDVN,IWKHVHLQGHSHQGHQWZRUOGVLQ(YHUHWWVVHQVH
DUHLQDFFHVVLEOHWRXVKRZGRZHNQRZPXFKRIDQ\WKLQJUHDOO\DERXW
WKHP"
6HFRQG3UREOHP
:KDWLVUHOHYDQWDWWKHTXDQWXPPHFKDQLFDOOHYHOPD\QRWQHFHVVDULO\
DSSO\WRWKHZRUOGDWWKHSK\VLFVOOHYHO
,Q IDFW WKH SHUVLVWHQW LQDELOLW\ DPRQJ FRQWHPSRURDU\ SK\VLFLVWV WR
XQLIL\ WKH WKHRU\ RI UHODWLYLW\ IRU ODUJH REMHFWV DW WKH SK\VLFDO OHYHO
DQG TXDQWXP PHFKDQLFV IRU WLQ\ REMHFWV DW WKH TXDQWXP PHFKDQLFDO
OHYHO VKRXOG ZDUQ XV DERXW WKH GDQJHU RI UHGXFWLRQLVP E\ UHGXFLQJ
WKH XQGHUVWDQGLQJ RI GLIIHUHQW XQLYHUVHV SDUDOOHO XQLYHUVHV DW WKH
SK\VLFDOOHYHOIURPDJHQHUDOL]DWLRQRIPDQ\ZRUOGVDWWKHTXDQWXP
PHFKDQLFDOOHYHO
7KLUG3UREOHP
7KHUH LV QR HPSLULFDO HYLGHQFH WR VXJJHVW WKDW WKHUH DUH LQILQLWH RU
H[WUHPHO\ PDQ\ SRVVLEOH ZRUOGV LQ WKH FRVPRV DV WKH PDQ\ZRUOGV
PRGHOE\(YHUHWWZRXOGKDYHXVWREHOLHYH
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
6RXUFH)URP6HFRI)3+*
&KDSWHU,QWURGXFWLRQ7KH3UDFWLFHRI&XOLQDU\$UW
7DEOH+\SHUVSDFHDQG,WV&KDOOHQJH
3DUW,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
)LUVW3UREOHP
+\SHUVSDFH IRU LQWUD DQG LQWHUXQLYHUVDO WUDYHO LV DVVXPHG WR EH
SRVVLEOH RQ WKH EDVLV RI IRXU PDLQ DVVXPSWLRQV DOWKRXJK WKHUH PD\
EHRWKHUVWKHVHDUHWKHRIWHQFLWHGRQHV
7KH ILUVW DVVXPSWLRQ FRQFHUQV WKH H[LVWHQFH RI HQWU\ DQG H[LW
SRLQWV LQ K\SHUVSDFH ZKLFK LV HDVLHU VDLG WKDQ GRQH WR HQWHU JR
WKURXJKDQGWKHQH[LWK\SHUVSDFH
)RU LQVWDQFH XVLQJ K\SHUVSDFH UHTXLUHV FRPSOH[ FDOFXODWLRQVRI
VLQJOH RU PXOWLSOH K\SHUVSDFH MXPSV DQG WKH FRQWURO RI WKH
MXPS3HWXUEDWLRQVVXFKDVWKRVHH[SHULHQFHGE\VKLSLQVSDFHIURP
WKH JUDYLWLRQDO ILHOGDURXQGDQREMHFWVXFKDVDSODQHWRUHYHQDVWDU
DUHH[DFHUEDWHGLQK\SHUVSDWLDOWUDYHOVLQFHPDVVLQUHDOVSDFHGLVWRUWV
K\SHUVSDFH LQ DQ HTXDO PHDVXUH
-XPSLQJ
QHDU WR D JUDYLWDWLRQDO
PDVV LV OLNHO\ WR PDNH UHVXOWLQJ H[LW IURP K\SHUVSDFH WR EH KLJKO\
XQFHUWDLQZLWKWKHOHYHORILPSUREDELOLW\LLQFUHDVLQJZLWKWKHVTXDUH
RIWKHGLVWDQFHWRWKHQHDUHVWJUDYLWLRQDO
ZHOO
:.K
%HVLGHV >R@QO\ VSDFHVKLSV HTXLSSHG ZLWK D VSHFLDO IRUFH ILHOG FDQ
HQWHU K\SHUVSDFH EHFDXVH H[SRVXUH WR K\SHUVSDFH HYHQ IRU VKRUW
SHULRGRIWLPHLVKD]DUGRXVWRXQSURWHFWHGKXPDQV:.K
6HFRQG3UREOHP
7KHVHFRQGDVVXPSWLRQFRQFHUQVWKHIDVWHUWKDQOLJKWVSHHG,WLVZHOO
NQRZQ WKDW (LQVWHLQ DUJXHG IRU WKH VSHHG RI OLJKW DV WKH XOWLPDWH
OLPLW EXW QRZDGD\V SK\LVFLVWV GR DOORZ WKH YLRODWLRQ RI WKLV OLPLW
XQGHUFHUWDLQFRQGLWLRQVOLNHWKHK\SRWKHWLFDOH[LVWHQFHRIWDFK\RQV
DVZLOOEHH[SODLQHGIXUWKHULQDODWHUVXEVHFWLRQRQWLPHWUDYHO
(YHQWKHQWKHUHLVDFKDOOHQJHWRH[SODLQLQVFLHQFHILFWLRQZK\VKLSV
FDQ WUDYHO IDVWHU WKDQ OLJKW LQ K\SHUVSDFH DQG WZR JRRG DUJXPHQWV
DUH WKDW K\SHUVSDFH PD\ EH VPDOOHU WKDQ UHDO VSDFH DQG WKHUHIRUH D
VWDUVKLS
VSURSXOVLRQVHHPVWREHJUHDWO\PXOWLSOLHGRUHOVHWKHVSHHG
RIOLJKWLQK\SHUVSDFHLVQRWDEDUULHUDVLWLVLQUHDOVSDFH:KDWHYHU
WKHUHDVRQLQJWKHJHQHUDOHIIHFWLVWKDWVKLSVWUDYHOLQJLQK\SHUVSDFH
VHHPWRKDYHEURNHQWKHVSHHGRIOLJKWDSSHDULQJDWWKHLUGHVWLQDWLRQV
PXFK PRUH TXLFNO\ DQG ZLWKRXW WKH VKLIW LQ WLPH WKDW WKH 7KHRU\ RI
5HODWLYLW\ZRXOGVXJJHVW:.K
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
FRQWLQXHGRQQH[WSDJH
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7DEOH+\SHUVSDFHDQG,WV&KDOOHQJH
3DUW,,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
7KLUG3UREOHP
7KHWKLUGDVVXPSWLRQFRQFHUQVWKHVSHHGRIWLPHWREHPHDVXUHGVD\
E\DFORFNEXWWKLVLVHODERUDWHGLQDGLIIHUHQWVHFWLRQRQWKHUHODWHG
LVVXHRIWLPHWUDYHODVVKRZQLQDGLIIHUHQWWDEOHRQWLPHWUDYHO
)RXUWK3UREOHP
7KH IRXUWK DVVXPSWLRQ FRQFHUQV VSDWLDO VKRUWFXW DV LW LV SRVVLEOH
EHFDXVH RI WKH FXUYDWXUH RI VSDFH LQ WKDW WKH PDQLIROG RI RUGLQDU\
WKUHHGLPHQVLRQDO VSDFH LV FXUYHG LQ IRXU RU PRUH
KLJKHU
VSDFLDO
GLPHQVLRQVD
K\SHUVSDFH
LQWKHJHRPHWULFVHQVH7KLVFXUYDWXUH
FDXVHV FHUWDLQ ZLGHO\ VHSDUDWHG SRLQWV LQ WKUHHGLPHQVLRQDO VSDFH WR
QRQHWKHOHVV EH
DGMDFHQW
WR HDFK RWKHU IRXUGLPHQVLRQDOO\ &UHDWLQJ
DQ DSHUWXUH LQ ' VSDFH D ZRUPKROH EHWZHHQ WKHVH ORFDWLRQV FDQ
DOORZ LQVWDQWDQHRXV WUDQVLW EHWZHHQ WKH WZR ORFDWLRQV D FRPPRQ
FRPSDULVRQLVWKDWRID IROGHGSLHFHRISDSHUZKHUHD KROHSXQFKHG
WKURXJKWZRIROGHGVHFWLRQVLVPRUHGLUHFWWKDQDOLQHGUDZQEHWZHHQ
WKHP RQ WKH VKHHW 7KLV LGHD SUREDEO\ DURVH RXW RI FHUWDLQ SRSXODU
GHVFULSWLRQVRI*HQHUDO5HODWLYLW\DQGRU5LHPDQQLDQ PDQLIROGVDQG
PD\ EH WKH RULJLQDO IRUP IURP ZKLFK ODWHU FRQFHSWV RI K\SHUVSDFH
DURVH:.K
%XW WKLV GRHV QRW PHDQ WKDW K\SHUSVDFH LV DOZD\V VDIH ,Q IDFW LQ
VRPH VFLHQFH ILFWLRQ WKH GDQJHU RI K\SHUVSDFH WUDYHO LV GXH WR WKH
FKDQFHWKDWWKHURXWHWKURXJKK\SHUVSDFHPD\WDNHDVKLSWRRFORVHWR
DFHOHVWLDOERG\ZLWKDODUJHJUDYLWDWLRQDOILHOGVXFKDVDVWDU,QVXFK
VFHQDULRV LI D VWDUVKLS SDVVHV WRR FORVH WR D ODUJH JUDYLWDWLRQDO ILHOG
ZKLOHLQK\SHUVSDFHWKHVKLSLVIRUFLEO\SXOOHGRXWRIK\SHUVSDFHDQG
UHYHUWVWRQRUPDOVSDFH7KHUHIRUHFHUWDLQK\SHUVSDFH
URXWHV
PD\EH
PDSSHG RXW WKDW DUH VDIH QRW SDVVLQJ WRR FORVH WR VWDUV RU RWKHU
GDQJHUV:-K
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
6RXUFH)URP6HFRI)3+*
&KDSWHU,QWURGXFWLRQ7KH3UDFWLFHRI&XOLQDU\$UW
7DEOH7KH3UREOHPVRI7LPH7UDYHOLQWRWKH)XWXUH
3DUW,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
)LUVW3UREOHP
7KHILUVWSUREOHPFRQFHUQVWLPHGLODWLRQXQGHUWKH7KHRU\RI6SHFLDO
5HODWLYLW\ ZKLFK VHSDUDWHV VSDFHWLPH IURP PDVVHQHUJ\ DV VSHFLDO
FDVHV6XSSRVH\RXDUHRQDPRYLQJWUDLQDQGDQREVHUYHURXWVLGHWKH
WUDLQLV ZDWFKLQJ \RXDORQJWKHWUDFNV $V \RXUWUDLQ PRYHVDORQJDW
WKH VSHHG RI OLJKW RU VRPHWKLQJ FORVH WR LW WLPH DV PHDVXUHG E\
\RXUZDWFKWLFNHGDORQJDWDVORZHUSDFHWKDQWLPHPHDVXUHGE\WKH
REVHUYHU 1RW RQO\ WKDW GLVWDQFH FKDQJHG WRR )RU WKH REVHUYHU D
RQHIRRWUXOHUZKL]]LQJE\RQWKHWUDLQZRXOGKDYHPHDVXUHGOHVVWKDQ
DIRRW12
,QIDFW\RXPD\QRWHYHQQRWLFHWKDWWKLVVORZHUFOLFNLQJRIWKHFORFN
LQ IDFW HYHU\WKLQJ ORRNV QRUPDO WR \RX LQVLGH WKH WUDLQ DV LW ZDV
EHIRUH 7KH ZHLUG WKLQJ LV WKDW IRU \RX RQ WKH WUDLQ WLPH ZRXOGQ
W
VHHP WR EH PRYLQJ VORZHU DQG \RXU UXOHU ZRXOGQ
W EH VKRUWHUDOO
ZRXOGDSSHDUQRUPDO12%\FRQWUDVW\RXLQVWHDGWKLQNWKDW
WLPHRQWKHUHVWRIWKH(DUWKZRXOGDSSHDUWREHWLFNLQJDORQJVORZHU
DQGLWVUXOHUVZRXOGEHVKRUWHU126RERWKRI\RXLQVLVWWKDW
WKH RWKHU FORFN QRW KLV LV FOLFNLQJ PRUH VORZO\DVVXPLQJ RI
FRXUVHDQLQHUWLDOIUDPHRIUHIHUHQFH
1RZFKDQJHWKHVWRU\DELWLQWKDWWKLVWLPHLQVWHDGRIDQLQHUWLDO
UHIHUHQFHIUDPHDFFHOHUDWLRQLVDOORZHGDQG\RXDUHRQ\RXUZD\WR
ERDUG D VSDFHVKLS $V DQ LOOXVWUDWLRQ VXSSRVH >\@RX ERDUG D
VSDFHVKLSDQGWDNHRIIIRUGHHSVSDFH7KHVKLSDSSURDFKHVWKHVSHHG
RI OLJKW 7LPH IRU \RX VHHPV WR SDVV DV LW DOZD\V KDV ,W WDNHV \RX
DERXW ILYH VHFRQGV WR WLH \RXU VKRH %XW WR DQ REVHUYHU RQ (DUWK
DVVXPLQJ KH RU VKH FRXOG ZDWFK \RX \RX DUH PRYLQJ DW D VQDLO
V
SDFH,WWDNHVKRXUVWRWLH\RXUVKRH12,QDQ\HYHQW\RX
FRQWLQXHRQ\RXUMRXUQH\<RXVORZGRZQVWRSDQGDFFHOHUDWHEDFN
WR (DUWK <RX DUULYH KRPH <RX KDYH DJHG WZR \HDUV GXULQJ \RXU
IOLJKW 7ZR KXQGUHG \HDUV KDYH SDVVHG RQ (DUWK <RX KDYH
VXFFHVVIXOO\WUDYHOOHGIRUZDUGWKURXJKWLPH12,QWKLVFDVH
ERWKWKHREVHUYHULIKHLVVWLOODOLYHDQG\RXDJUHHWKDW\RXKDYHDJHG
OHVV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
FRQWLQXHGRQQH[WSDJH
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7DEOH7KH3UREOHPVRI7LPH7UDYHOLQWRWKH)XWXUH
3DUW,,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
)LUVW3UREOHPFRQWG
,Q RWKHU ZRUGV ZKHQ \RX DUH EDFN WR (DUWK D ORW RI WKLQJV KDYH
FKDQJHG VLQFH DQG \RX PD\ ILQG UDWKHU VWUDQJH WR EH LQ D QHZ
HQYLURQPHQW ZKLFK \RXKDUGO\UHFRJQL]H ZKHQFRPSDUHGZLWK ZKDW
\RX XVHG WR WKLQN DV \RXU FLW\ RU WKH (DUWK WZR \HDUV DJR ZHOO LQ
DFFRUGDQFHWR\RXUWLPHRIPHDVXUHPHQW7KLVPHDQVWKDW\RXDUHLQ
WKH IXWXUH WZR KXQGUHG \HDUV ODWHU HYHQ WKRXJK \RX DUH VWLOO
UHODWLYHO\\RXQJRQO\WZR\HDUVROGHU%XWFDQ\RXJREDFN":HOO
QR 7KH UHDVRQ LV WKDW >D@FFRUGLQJ WR UHODWLYLW\ \RX FDQ RQO\ PRYH
WKURXJKWLPHLQRQHGLUHFWLRQ12
6HFRQG3UREOHP
7KH VHFRQG SUREOHP FRQFHUQV WLPH GLODWLRQ XQGHU WKH 7KHRU\ RI
*HQHUDO 5HODWLYLW\ZKLFK XQLILHVVSDFHWLPH ZLWK PDVVHQHUJ\LQD
JHQHUDOWKHRU\WKHVDPHUHVXOWRIWLPHGLODWLRQRFFXUV
)RU LQVWDQFH ZKHQ RQH FORFN LV GHHSHU LQ D JUDYLW\ ZHOO WKDQ WKH
RWKHUDUHVXOWLVWKDWWKHFORFNGHHSHULQWKHZHOOZLOOWLFNPRUH
VORZO\ WKLV HIIHFW PXVW EH WDNHQ LQWR DFFRXQW ZKHQ FDOLEUDWLQJ WKH
FORFNVRQWKHVDWHOOLWHVRIWKH*OREDO3RVLWLRQLQJ6\VWHPDQGLWFRXOG
OHDG WR VLJQLILFDQW GLIIHUHQFHV LQ UDWHV RI DJLQJ IRU REVHUYHUV DW
GLIIHUHQWGLVWDQFHVIURPDEODFNKROH:.L
0RUH SUHFLVHO\ E\ ZD\ RI DQRWKHU H[DPSOH LW KDV EHHQ FDOFXODWHG
WKDWXQGHUJHQHUDOUHODWLYLW\DSHUVRQFRXOGWUDYHOIRUZDUGLQWLPHDW
D UDWH IRXU WLPHV WKDW RI GLVWDQW REVHUYHUV E\ UHVLGLQJ LQVLGH D
VSKHULFDO VKHOO ZLWK D GLDPHWHU RI PHWHUV DQG WKH PDVV RI -XSLWHU
)RU VXFK D SHUVRQ HYHU\ RQH VHFRQG RI WKHLU
SHUVRQDO
WLPH ZRXOG
FRUUHVSRQGWRIRXUVHFRQGVIRUGLVWDQWREVHUYHUV2IFRXUVHVTXHH]LQJ
WKHPDVVRIDODUJHSODQHWLQWRVXFKDVWUXFWXUHLVQRWH[SHFWHGWREH
ZLWKLQRXUWHFKQRORJLFDOFDSDELOLWLHVLQWKHQHDUIXWXUH:.L
5*RWW
7KH SRLQW KHUH KRZHYHU LV WKDW WLPH WUDYHO LQWR WKH IXWXUH LQ WKLV
VHQVH LV DOORZHG WKHRUHWLFDOO\ VSHDNLQJ EXW LQ D YHU\ OLPLWHG ZD\
IURPWKHWKHRU\RIUHODWLYLW\%XWRQHFDQDOVRDVN:KDWLIWKHWKHRU\
RIUHODWLYLW\ZHUHZURQJ":HOOLQWKDWFDVHWKHUHZRXOGEHDQHHGWR
ILQGDEHWWHUWKHRU\WRH[SODLQWLPHWUDYHOLQWRWKHIXWXUH
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
6RXUFH)URP6HFRI)3+*
&KDSWHU,QWURGXFWLRQ7KH3UDFWLFHRI&XOLQDU\$UW
7DEOH7KH3UREOHPVRI7LPH7UDYHOLQWRWKH3DVW
3DUW,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
)LUVW3UREOHP
7KH ILUVW SUREOHP FRQFHUQV WKH IDVWHUWKDQOLJKWVSHHG VLQFH LQ
DFFRUGDQFH WR WKH WKHRU\ RI VSHFLDO UHODWLYLW\ ZKHQ DQ REMHFW JRHV
IDVWHU WKDQ WKH VSHHG RI OLJKW VRPHWKLQJ ZHLUG FDQ KDSSHQ LQ WKDW
LQVWHDG RI KDYLQJ WKH FORFN FOLFNLQJ PRUH VORZO\ LW LV PRYLQJ
EDFNZDUGLQUHODWLRQWRVRPHLQHUWLDOIUDPHRIUHIHUHQFHZKLFKWKHQ
UDLVLHVWKHLVVXHRIZKHWKHUWLPHWUDYHOLQWRWKHSDVWLVSRVVLEOHDWDOO
%XWWKHSUREOHPKHUHLVDERXWWKHYLRODWLRQRIWKHODZRIFDVXDOLW\,Q
HYHU\GD\ ODQJXDJH DQ H[FHOOHQW LOOXVWUDWLRQ RI FDXVDOLW\ YLRODWLRQ LV
WKDWVXSSRVH\RXWUDYHOEDFNLQWRWKHSDVWDQGWKHQNLOO\RXUSDUHQWV
WKLVWKHQPHDQVWKDW\RXFRXOGQRWKDYHEHHQERUQ%XWWKLVLVQRWWUXH
VLQFH\RXDUHDOLYH
<HW LQ WKH FDVH RI D K\SRWKHWLFDO VLJQDO PRYLQJ IDVWHU WKDQ OLJKW
WKHUHZRXOGDOZD\VEHVRPHIUDPHVLQZKLFKWKHVLJQDOZDVUHFHLYHG
EHIRUH LW ZDV VHQW VR WKDW WKH VLJQDO FRXOG EH VDLG WR KDYH PRYHG
EDFNZDUGVLQWLPH7KHYLRODWLRQRIFDVXDOLW\H[LVWVLQWKLVFDVH
7KH ILUVW SDUW RI WKH SUREOHP LV WKDW LQ DFFRUGDQFH WR WKH WKHRU\ RI
VSHFLDO UHODWLYLW\ LW ZRXOG WDNH DQ LQILQLWH DPRXQW RI HQHUJ\ WR
DFFHOHUDWHDVORZHUWKDQOLJKWREMHFWWRWKHVSHHGRIOLJKWOHWDORQH
WKH HQHUJ\ QHHGHG WR SURSHODQ REMHFW WR JR IDVWHU WKDQ WKH VSHHG RI
OLJKW:.L$OWKRXJKVRPHVXJJHVWWKHSRVVLELOLW\RIQHJDWLYH
HQHUJ\LWUHPDLQVWREHVHHQWRZKDWH[WHQWWKLVLVWUXH
$QGWKH VHFRQGSDUWRIWKHSUREOHP LVWKDW DOWKRXJKUHODWLYLW\GRHV
QRW IRUELG WKH WKHRUHWLFDO SRVVLELOLW\ RI WDFK\RQV ZKLFK PRYH IDVWHU
WKDQ OLJKW DW DOO WLPHV ZKHQ DQDO\]HG XVLQJ TXDQWXP ILHOG WKHRU\ LW
VHHPV WKDW LW ZRXOG QRW DFWXDOO\ EH SRVVLEOH WR XVH WKHP WR WUDQVPLW
LQIRUPDWLRQ IDVWHU WKDQ OLJKW DQG WKHUH LV QR HYLGHQFH IRU WKHLU
H[LVWHQFH:.L6&KDVH
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
FRQWLQXHGRQQH[WSDJH
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7DEOH7KH3UREOHPVRI7LPH7UDYHOLQWRWKH3DVW
3DUW,,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
6HFRQG3UREOHP
7KHVHFRQGSUREOHPFRQFHUQVFRVPLFVWULQJDQGEODFNKROHVVLQFHLWLV
WKH WKHRU\ RI JHQHUDO UHODWLYLW\ ZKLFK H[WHQGV WKH VSHFLDO WKHRU\ WR
FRYHUJUDYLW\LOOXVWUDWLQJLWLQWHUPVRIFXUYDWXUHLQVSDFHWLPHFDXVHG
E\PDVVHQHUJ\DQGWKHIORZRIPRPHQWXP:.L
2QWKHRWKHUKDQG>J@HQHUDOUHODWLYLW\GHVFULEHVWKHXQLYHUVHXQGHUD
V\VWHPRIILHOGHTXDWLRQVDQGWKHUHH[LVWVROXWLRQVWRWKHVHHTXDWLRQV
WKDW SHUPLW ZKDW DUH FDOOHG
FORVHG WLPHOLNH FXUYHV
DQG KHQFH WLPH
WUDYHOLQWRWKHSDVW7KHILUVWRIWKHVHZDVSURSRVHGE\.XUW*|GHOD
VROXWLRQ NQRZQ DV WKH *|GHO PHWULF EXW KLV DQG PDQ\ RWKHUV
H[DPSOH UHTXLUHV WKH XQLYHUVH WR KDYH SK\VLFDO FKDUDFWHULVWLFV WKDW LW
GRHVQRWDSSHDUWRKDYH:.L.7KRUQH
%XW WKHQ WKH SUREOHP QRZ EHFRPHV :KHWKHU JHQHUDO UHODWLYLW\
IRUELGV FORVHG WLPHOLNH FXUYHV IRU DOO UHDOLVWLF FRQGLWLRQV LV
XQNQRZQ:.L
7KLUG3UREOHP
7KH WKLUG SUREOHP FRQFHUQV ZRUPKROHV DQG UHODWHG RQHV DQG
>Z@RUPKROHV DUH D K\SRWKHWLFDO ZDUSHG VSDFHWLPH ZKLFK DUH DOVR
SHUPLWWHG E\ WKH (LQVWHLQ ILHOG HTXDWLRQV RI JHQHUDO UHODWLYLW\
DOWKRXJKLWZRXOGEHLPSRVVLEOHWRWUDYHOWKURXJKDZRUPKROHXQOHVV
LW ZDV ZKDW LV NQRZQ DV D WUDYHUVDEOH ZRUPKROH :. L 0
9LVVHU ,Q RWKHU ZRUGV D ZRUPKROH LV D K\SRWKHWLFDO
WRSRORJLFDO IHDWXUH RI VSDFHWLPH WKDW LV IXQGDPHQWDOO\ D
VKRUWFXW
WKURXJK VSDFH DQG WLPH 6SDFHWLPH FDQ EH YLHZHG DV D ' VXUIDFH
DQG ZKHQ
IROGHG
RYHU D ZRUPKROH EULGJH FDQ EH IRUPHG $
ZRUPKROH KDV DW OHDVW WZR PRXWKV ZKLFK DUH FRQQHFWHG WR D VLQJOH
WKURDWRUWXEH,IWKHZRUPKROHLVWUDYHUVDEOHPDWWHUFDQ
WUDYHO
IURP
RQHPRXWKWRWKHRWKHUE\SDVVLQJWKURXJKWKHWKURDW:.M
%XWWKHSUREOHPKHUHLVWKUHHIROGDVVKRZQLQZKDWIROORZV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
FRQWLQXHGRQQH[WSDJH
&KDSWHU,QWURGXFWLRQ7KH3UDFWLFHRI&XOLQDU\$UW
7DEOH7KH3UREOHPVRI7LPH7UDYHOLQWRWKH3DVW
3DUW,,,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
7KLUG3UREOHPFRQWG
7KHILUVWSDUWRIWKHSUREOHPLVWKDWWKHUHLVQRREVHUYDWLRQDOHYLGHQFH
IRUZRUPKROHV:.M
7KH VHFRQG SDUW RI WKH SUREOHP LV WKDW LW LV QRW FOHDU KRZ H[DFWO\
ZRUPKROHVDQGEODFNKROHV IRUWKDW PDWWHUFRXOGDOORZ WLPHWUDYHO
LQWRWKHSDVWDWDOO
$QG WKH WKLUG SDUW RI WKH SUREOHP LV WKDW LI XVLQJ ZRUPKROHV DQG
EODFNKROHVIRUWKDWPDWWHUWRWUDYHOLQWRWKHSDVWUHTXLUHVVRPHWKLQJ
WRJRIDVWHUWKDQOLJKWWRRWKHQWKLVUDLVHVDQRWKHULVVXHFRQFHUQLQJWKH
WZRSUREOHPVDVSUHYLRXVO\LQGLFDWHGLQWKHVXEVHFWLRQRQWKHIDVWHU
WKDQOLJKWVSHHG
)RXUWK3UREOHP
7KH IRXUWK SUREOHP LV WKDW VRPH SK\VLFLVWV KDYH DUJXHG WKDW HYHQ
VKRXOG WLPH WUDYHO LQWR WKH SDVW EH SRVVLEOH E\ ZD\ RI WKHVH WKUHH
PHWKRGVWKHSHUVRQVWLOOZRXOGQRWUHWXUQWRWKHVDPHSDVWKLVWRU\WKDW
KHH[DFWO\H[SHULHQFHGEHIRUHEXWLQDGLIIHUHQWRQH:.L
,Q RWKHU ZRUGV VWULFWO\ VSHDNLQJ WLPH WUDYHO LQWR WKH SDVW LV QRW
UHDOO\ SRVVLEOH LQ OLJKW RI WKHVH FULWLFLVPV VR WKHUH LV QR QHHG WR
ZRUU\ WKDW RQH FRXOG WUDYHO LQWR WKH SDVW DQG NLOO RQHV SDUHQW DV D
ZD\WRYLRODWHWKHODZRIFDVXDOLW\
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
6RXUFH)URP6HFRI)3+*
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7DEOH7KH&RQFHSWXDO'LPHQVLRQVRI&RQVFLRXVQHVV
DQG2WKHU0HQWDO6WDWHV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
2Q+HUHGLW\DQG7LPH
+HUHGLW\DQGWKH(QYLURQPHQW
7KH3DVWDQGWKH3UHVHQW
2Q/D\HUVRI0HQWDO6WDWHVDQG$EQRUPDOLW\
&RQVFLRXVQHVV8QFRQVFLRXVQHVVDQG3UHFRQVFLRXVQHVV
1RUPDOLW\DQG3DUDQRUPDOLW\
2Q2UJDQLFLW\DQG0RWLYDWLRQ
0HFKDQLFLW\DQG2UJDQLFLW\
3ULPDU\0RWLYDWLRQVDQG0XOWLSOH0RWLYDWLRQV
2Q2WKHU0RVWO\(SLVWHPLF&RQVLGHUDWLRQV
6\QWKHVLVDQG$QDO\VLV
6LWXDWLRQDQGWKH6XEMHFW
3URFHVVDQG2XWFRPH
5HDVRQLQJDQG2WKHU0RGHVRI7KLQNLQJ
0HWD&RQFHSWXDO1RPLQDOLVPDQG5HDOLVP
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
1RWHV7KHVHH[DPSOHVDUHVROHO\LOOXVWUDWLYHQRWH[KDXVWLYHDQGVRPH
RI WKH LWHPV FDQ EH UHFODVVLILHG VRPHZKHUH HOVH 1RU DUH WKH\ DOZD\V
PXWXDOO\H[FOXVLYH6LQFHWKH\DUHJHQHUDOLWLHVH[FHSWLRQVDUHH[SHFWHG
6RXUFHV )URP )3+& $ UHFRQVWUXFWLRQ EXW ZLWK P\ RZQ FRQWULEXWLRQ
RULJLQDOO\ IURP */LQG]H\ &+DOO ,QWURGXFWLRQ WR 7KHRULHV RI
3HUVRQDOLW\1<-RKQ:LOH\ 6RQV
&KDSWHU,QWURGXFWLRQ7KH3UDFWLFHRI&XOLQDU\$UW
7DEOH7KH7KHRUHWLFDO/HYHOVRI&RQVFLRXVQHVV
DQG2WKHU0HQWDO6WDWHV
3DUW,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
$WWKH0LFUR3K\VLFDO7KHRUHWLFDO/HYHO
4XDQWXP0HFKDQLFV
(OHFWURPDJQHWLVP
$WWKH&KHPLFDO7KHRUHWLFDO/HYHO
%LRFKHPLVWU\
$WWKH%LRORJLFDO7KHRUHWLFDO/HYHO
(YROXWLRQDU\%LRORJ\
1HXURVFLHQFH
$UWLILFLDO,QWHOOLJHQFH
$WWKH3V\FKRORJLFDO7KHRUHWLFDO/HYHO
3V\FKRG\QDPLF3V\FKRORJ\
3V\FKRDQDO\WLFDO3V\FKRORJ\
$QDO\WLFDO3V\FKRORJ\
6RFLDOO\2ULHQWHG3V\FKRORJ\
([SHULPHQWDO%HKDYLRUDO3V\FKRORJ\
2SHUDQW5HLQIRUFHPHQW7KHRU\
6WLPXOXV5HVSRQVH7KHRU\
6RFLDO/HDUQLQJ7KHRU\
&RJQLWLYH*HVWDOW3V\FKRORJ\
+XPDQLVW3V\FKRORJ\
([LVWHQWLDO3V\FKRORJ\
)LHOG7KHRU\
3V\FKRPHWULF3V\FKRORJ\
,GLRJUDSKLFV
&RQVWLWXWLRQDO3V\FKRORJ\
6RFLDO3V\FKRORJ\
6\PEROLF,QWHUDFWLYH7KHRU\
6RFLDO([FKDQJH7KHRU\
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
FRQWLQXHGRQQH[WSDJH
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7DEOH7KH7KHRUHWLFDO/HYHOVRI&RQVFLRXVQHVV
DQG2WKHU0HQWDO6WDWHV
3DUW,,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
$WWKH2UJDQL]DWLRQDO7KHRUHWLFDO/HYHO
0DQDJHULDO%XUHDXFUDWLF7KHRU\
2OLJDUFKLF7KHRU\
1HWZRUN7KHRU\
$WWKH,QVWLWXWLRQDO7KHRUHWLFDO/HYHO
)XQFWLRQDOLVW7KHRU\
$QRPLF7KHRU\
$WWKH6WUXFWXUDO7KHRUHWLFDO/HYHO
&RQIOLFW7KHRU\
0DU[LDQ7KHRU\
&ULWLFDO7KHRU\
:HEHULDQ7KHRU\
*DPHV7KHRU\LQ)RUPDO7KHRU\
)HPLQLVW7KHRU\
)HPLQLVW&RQFHUQV
)HPLQLVW+RSHV
$WWKH6\VWHPLF7KHRUHWLFDO/HYHO
(TXLOLEULXP7KHRU\
6\VWHP7KHRU\
&KDRV7KHRU\
$WWKH&RVPRORJLFDO7KHRUHWLFDO/HYHO
6XSHUOXPLQDO0RGHO
7KH7KHRU\RI)ORDWLQJ&RQVFLRXVQHVV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
FRQWLQXHGRQQH[WSDJH
&KDSWHU,QWURGXFWLRQ7KH3UDFWLFHRI&XOLQDU\$UW
7DEOH7KH7KHRUHWLFDO/HYHOVRI&RQVFLRXVQHVV
DQG2WKHU0HQWDO6WDWHV
3DUW,,,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
$WWKH&XOWXUDO7KHRUHWLFDO/HYHO
6XEVWDQWLYH7KHRULHV
6WUXFWXUDOLVW7KHRU\
3RVW6WUXFWXUDOLVW7KHRU\LQ3RVWPRGHUQLVP
0HWD7KHRULHV
(SLVWHPLF2EMHFWLYLVPYV(SLVWHPLF+LVWRULFLVP
(SLVWHPLF6XEMHFWLYLVPYV(SLVWHPLF1RQ6XEMHFWLYLVP
3KHQRPHQRORJ\
(WKQRPHWKRGRORJ\
+HUPHQHXWLFV
(SLVWHPLF5HODWLYLVPYV(SLVWHPLF$EVROXWLVP
(SLVWHPLF5HGXFWLRQLVPYV(SLVWHPLF(PHUJHQFLVP
$W2WKHU/HYHOV
6WUXFWXUDWLRQ7KHRU\
5HIOH[LYH6RFLRDQDO\VLV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
1RWHV7KHVHH[DPSOHVDUHVROHO\LOOXVWUDWLYHQRWH[KDXVWLYHDQGVRPHRI
WKH LWHPV FDQ EH UHFODVVLILHG VRPHZKHUH HOVH 1RU DUH WKH\ DOZD\V
PXWXDOO\H[FOXVLYH6LQFHWKH\DUHJHQHUDOLWLHVH[FHSWLRQVDUHH[SHFWHG
6RXUFH)URPPDQ\GLIIHUHQWVRXUFHVDVLQGLFDWHGLQ)3+&
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7DEOH7KH7KHPDWLF,VVXHVRI&RQVFLRXVQHVV
DQG2WKHU0HQWDO6WDWHV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
7KH)DFWRURI+LVWRU\
3UH0RGHUQLW\
0RGHUQLW\
3RVWPRGHUQLW\
$IWHU3RVWPRGHUQLW\
7KH,PSRUWDQFHRI1HHGV
+DYLQJHJWKHHYHU\GD\WKHWHFKQRORJLFDO
%HORQJLQJHJWKHMXVWDQGWKHJRRG
%HLQJHJWKHWUXHWKHKRO\WKHVXEOLPHEHDXWLIXODQGWKHJRRG
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
1RWHV 7KHVH H[DPSOHV DUH VROHO\ LOOXVWUDWLYH QRW H[KDXVWLYH 1RU DUH
WKH\DOZD\VPXWXDOO\H[FOXVLYH6LQFHWKH\DUHJHQHUDOLWLHVH[FHSWLRQVDUH
H[SHFWHG$OVRVRPHFDWHJRULHVRYHUODSZLWKRWKHUVIRULQVWDQFHWKHJRRG
LVDOVRUHODWHGZLWKEHLQJQHVVMXVWDVWKHHYHU\GD\FDQEHFRQQHFWHGZLWK
EHORQJQHVV
6RXUFHV)URP)3+&EDVHGRQ)+&DQG)&'
&KDSWHU,QWURGXFWLRQ7KH3UDFWLFHRI&XOLQDU\$UW
7DEOH+DYLQJ%HORQJLQJDQG%HLQJ
LQ&RQVFLRXVQHVV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
+DYLQJHJ$ERXWWKH(YHU\GD\DQG7HFKQRORJLFDO
([3K\VLRORJLFDOQHHGVHJWKLUVWKXQJHUVH[
([6DIHW\HJVWDELOLW\IUHHGRPIURPIHDUDQGDQ[LHW\
%HORQJLQJHJ$ERXWWKH*RRGDQG-XVW
([6RFLDOLQWHUDFWLRQ
([)ULHQGVKLSDFTXDLQWDQFH
([/RYHIDPLO\
([6HOIUHVSHFWUHVSHFWIURPRWKHUV
%HLQJHJ$ERXWWKH7UXH+RO\%HDXWLIXO6XEOLPHDQG*RRG
([8QGHUVWDQGLQJRIUHDOLW\DERXWVHOIDQGZRUOG
([6SLULWXDOTXHVWIRUKROLQHVVEHDXW\VXEOLPLW\DQGJRRGQHVV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
1RWHV7KHVHH[DPSOHVDUHVROHO\LOOXVWUDWLYHQRWH[KDXVWLYHDQGVRPH
RI WKH LWHPV FDQ EH UHFODVVLILHG VRPHZKHUH HOVH 1RU DUH WKH\ DOZD\V
PXWXDOO\H[FOXVLYH6LQFHWKH\DUHJHQHUDOLWLHVH[FHSWLRQVDUHH[SHFWHG
6RXUFHV)URP)3+&EDVHGRQ)+&DQG)&'
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7DEOH7KH+DYLQJ1HVVRI&RQVFLRXVQHVV
DQG2WKHU0HQWDO6WDWHV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
$WWKH0LFUR3K\VLFDO/HYHO
([7KHILQHUSK\VLFVRIQXWULWLRQ
$WWKH&KHPLFDO/HYHO
([)RRGJXLGHS\UDPLG
$WWKH%LR3V\FKRORJLFDO/HYHO
([7KHKLHUDUFK\RIQHHGV
$WWKH,QVWLWXWLRQDO/HYHO
([7KHSURGXFWLRQRIFRPPRGLW\IHWLVKLVP
$WWKH2UJDQL]DWLRQDO/HYHO
([0DVVVWDQGDUGL]DWLRQDQGFXVWRPL]DWLRQEXUHDXFUDWLF
UDWLRQDOLW\
$WWKH6WUXFWXUDO/HYHO
([7KHGLYLGHEHWZHHQWKHKDYHVDQGWKHKDYHQRWV
$WWKH&XOWXUDO/HYHO
([7KHERQGDJHRIJUHDWHUH[SHFWDWLRQV
$WWKH6\VWHPLF/HYHO
([7KHWHFKQRORJLFDOWUDQVIRUPDWLRQRISRYHUW\ZLWK
WUDQVYDOXDWLRQV
$WWKH&RVPRORJLFDO/HYHO
([)ORDWLQJFRQVFLRXVQHVVLQGHHSVSDFHZLWKRXWWKHKXPDQ
SK\VLRORJLFDOQHHGV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
1RWHV7KHVHH[DPSOHVDUHVROHO\LOOXVWUDWLYHQRWH[KDXVWLYHDQGVRPHRI
WKH LWHPV FDQ EH UHFODVVLILHG VRPHZKHUH HOVH 1RU DUH WKH\ DOZD\V
PXWXDOO\H[FOXVLYH6LQFHWKH\DUHJHQHUDOLWLHVH[FHSWLRQVDUHH[SHFWHG
6RXUFHV)URP)3+&6HHDOVR)&'DQG)+&
&KDSWHU,QWURGXFWLRQ7KH3UDFWLFHRI&XOLQDU\$UW
7DEOH7KH%HORQJLQJ1HVVRI&RQVFLRXVQHVV
DQG2WKHU0HQWDO6WDWHV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
$WWKH0LFUR3K\VLFDO/HYHO
([6WDWLVWLFDOSK\VLFVDQGVRFLDOQHWZRUNV
$WWKH&KHPLFDO/HYHO
([2OIDFWLRQDQGVRFLDOUHODWLRQV
$WWKH%LR3V\FKRORJLFDO/HYHO
(['XDOKXPDQQDWXUHRQUHODWLRQVKLSV
$WWKH,QVWLWXWLRQDO/HYHO
([3ULYDWHSURSHUW\DQGVRFLDOFOHDYDJH
$WWKH2UJDQL]DWLRQDO/HYHO
([/HJDOIRUPDOLVPDQGLURQFDJH
$WWKH6WUXFWXUDO/HYHO
([&ODVVFRQIOLFWVDQGVRFLDODOLHQDWLRQ
$WWKH&XOWXUDO/HYHO
([5XWKOHVVVRFLHW\DQGWKHFXOWXUHRIODZ
$WWKH6\VWHPLF/HYHO
([+XPDQH[WLQFWLRQDQGSRVWKXPDQUHODWLRQV
$WWKH&RVPRORJLFDO/HYHO
([7KHWUDQVFHQGHQFHRIHTXDOLW\LQWKHFRVPRVDQGEH\RQG
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
1RWHV7KHVHH[DPSOHVDUHVROHO\LOOXVWUDWLYHQRWH[KDXVWLYHDQGVRPHRI
WKH LWHPV FDQ EH UHFODVVLILHG VRPHZKHUH HOVH 1RU DUH WKH\ DOZD\V
PXWXDOO\H[FOXVLYH6LQFHWKH\DUHJHQHUDOLWLHVH[FHSWLRQVDUHH[SHFWHG
6RXUFHV)URP)3+&6HHDOVR)&'DQG)+&
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7DEOH7KH%HLQJ1HVVRI&RQVFLRXVQHVV
DQG2WKHU0HQWDO6WDWHV
3DUW,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
$WWKH0LFUR3K\VLFDO/HYHO
([6SDFHWLPHDQGPDWWHUHQHUJ\LQFODVVLFDOPHFKDQLFVTXDQWXP
PHFKDQLFVDQGWKHWKHRU\RIUHODWLYLW\
$WWKH&KHPLFDO/HYHO
(['UXJVDQGZHOOEHLQJ
$WWKH%LRORJLFDO/HYHO
([1HXURVFLHQFHDQGP\VWLFDOH[SHULHQFHV
$WWKH3V\FKRORJLFDO/HYHO
([5HGXFWLRQLVPDQGHPHUJHQFLVP
$WWKH,QVWLWXWLRQDO/HYHO
([7KHSUROLIHUDWLRQRIFXOWVDQGVHFWVDQGWKHFRUSRUDWHDUW
LQGXVWU\
$WWKH2UJDQL]DWLRQDO/HYHO
([7KHRUJDQL]DWLRQRILGHDVLQWKHVFKHPHRIWKLQJV
$WWKH6WUXFWXUDO/HYHO
(['LVFLSOLQDU\SRZHUDQGFRQWUROLQWKHRUGHURIWKLQJV
$WWKH6\VWHPLF/HYHO
([0XWXDOLVPDQGHFRORJLFDOSV\FKRORJ\
$WWKH&XOWXUDO/HYHO
([7KHUHFXUUHQFHRIFRPSHWLQJVSLULWVDQGIORDWLQJFRQVFLRXVQHVV
DVDFOLPD[RIHYROXWLRQ
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
FRQWLQXHGRQQH[WSDJH
&KDSWHU,QWURGXFWLRQ7KH3UDFWLFHRI&XOLQDU\$UW
7DEOH7KH%HLQJ1HVVRI&RQVFLRXVQHVV
DQG2WKHU0HQWDO6WDWHV
3DUW,,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
$WWKH&RVPRORJLFDO/HYHO
([7KHVHDUFKIRUHOVHZKHUHZKHQDQGWKHHYROXWLRQRIRWKHU
FRQVFLRXVQHVVHVHJWKHK\SHUVSDWLDOFRQVFLRXVQHVV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
1RWHV7KHVHH[DPSOHVDUHVROHO\LOOXVWUDWLYHQRWH[KDXVWLYHDQGVRPHRI
WKH LWHPV FDQ EH UHFODVVLILHG VRPHZKHUH HOVH 1RU DUH WKH\ DOZD\V
PXWXDOO\H[FOXVLYH6LQFHWKH\DUHJHQHUDOLWLHVH[FHSWLRQVDUHH[SHFWHG
6RXUFHV)URP)3+&6HHDOVR)&'DQG)+&
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7DEOH&RJQLWLYH3DUWLDOLW\
LQ'LIIHUHQW0HQWDO6WDWHV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
7KH&RQVFLRXV
%LDVHG
([6HOIRYHUUDWLQJQHVV
([6HOIPRGHVW\
([6HOIIXOILOOLQJSURSKHV\
6KDOORZ
([$WWULEXWLRQHUURU
([+HXULVWLFV
([,OOXVRU\WKLQNLQJ
6KRUWWHUP
(['HLQGLYLGXDWLRQ
0DWHULDOLVWLF
([+LHUDUFK\RIQHHGV
7KH6XEFRQVFLRXV
([PHQWDOUHFRQVWUXFWLRQ
([VWHUHRW\SLQJ
7KH8QFRQVFLRXV
([DXWRPDWLFSURFHVVLQJ
([FRJQLWLYHLQWXLWLRQ
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
1RWHV7KHVHH[DPSOHVDUHVROHO\LOOXVWUDWLYHQRWH[KDXVWLYHDQGVRPHRI
WKH LWHPV FDQ EH UHFODVVLILHG VRPHZKHUH HOVH 1RU DUH WKH\ DOZD\V
PXWXDOO\ H[FOXVLYH 6LQFH WKH\ DUH JHQHUDOLWLHV H[FHSWLRQV DUH H[SHFWHG
$QGWKHFRPSDULVRQLVUHODWLYHQRWDEVROXWH
6RXUFH)URP%&3&
&KDSWHU,QWURGXFWLRQ7KH3UDFWLFHRI&XOLQDU\$UW
7DEOH(PRWLRQDO1RQ1HXWUDOLW\DQG%HKDYLRUDO$OWHUDWLRQ
LQ'LIIHUHQW0HQWDO6WDWHV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
7KH(PRWLRQDO
&RQVFLRXV
([)HHOLQJV
6XEFRQVFLRXV
([0RRGV
8QFRQVFLRXV
([(PSDWK\
([,QVWLQFWV
7KH%HKDYLRUDO
&RQVFLRXV
([)RRWLQWKHGRRU
([5ROHSOD\LQJ
([6D\LQJLVEHOLHYLQJ
6XEFRQVFLRXV
(['LVFULPLQDWLRQ
8QFRQVFLRXV
([1RQ9HUEDO&RPPXQLFDWLRQ
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
1RWHV7KHVHH[DPSOHVDUHVROHO\LOOXVWUDWLYHQRWH[KDXVWLYHDQGVRPHRI
WKH LWHPV FDQ EH UHFODVVLILHG VRPHZKHUH HOVH 1RU DUH WKH\ DOZD\V
PXWXDOO\ H[FOXVLYH 6LQFH WKH\ DUH JHQHUDOLWLHV H[FHSWLRQV DUH H[SHFWHG
$QGWKHFRPSDULVRQLVUHODWLYHQRWDEVROXWH
6RXUFH)URP%&3&
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7DEOH7KH/LPLWVRI,QWXLWLRQLQ8QFRQVFLRXVQHVV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
&RJQLWLYH,QWXLWLRQRU,QWXLWLYH7KLQNLQJ
)HDWXUHV
([PHQWDOVFKHPDV
([H[SHUWLVH
([EOLQGVLJKW
3UREOHPV
([LQDFFXUDWH
([QRQH[SODQDWRU\
(PRWLRQDO,QWXLWLRQ
)HDWXUHV
([HPSDWK\
([LQVWLQFWV
3UREOHPV
([RYHUJHQHUDOL]HG
([QRQH[SODQDWRU\
%HKDYLRUDO,QWXLWLRQ
)HDWXUHV
([SURVHPLFV
([NLQHVLFV
3UREOHPV
([XQUHOLDEOH
([QRQH[SODQDWRU\
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
1RWHV7KHVHH[DPSOHVDUHVROHO\LOOXVWUDWLYHQRWH[KDXVWLYHDQGVRPHRI
WKH LWHPV FDQ EH UHFODVVLILHG VRPHZKHUH HOVH 1RU DUH WKH\ DOZD\V
PXWXDOO\ H[FOXVLYH 6LQFH WKH\ DUH JHQHUDOLWLHV H[FHSWLRQV DUH H[SHFWHG
$QGWKHFRPSDULVRQLVUHODWLYHQRWDEVROXWH
6RXUFH)URP%&3&
&KDSWHU,QWURGXFWLRQ7KH3UDFWLFHRI&XOLQDU\$UW
7DEOH7KH:HDOWK3RYHUW\'LDOHFWLFVLQ'LIIHUHQW0HQWDO6WDWHV
7KH&DVHRI&RJQLWLRQ
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
7KH&RQVFLRXV
%LDVHG
([,IULFKHULQVHOIVHUYLQJELDVWKHQSRRUHULQXQGHUVWDQGLQJ
RWKHUV
6KDOORZ
([,IULFKHULQKHXULVWLFWKLQNLQJWKHQSRRUHULQFRPSUHKHQGLQJ
UHDOLW\
6KRUWWHUP
([,IULFKHULQVKRUWWHUPWHQGHQF\WKHQSRRUHULQORQJWHUP
SODQQLQJ
0DWHULDOLVWLF
([,IULFKHULQSK\VLRORJLFDOREVHVVLRQWKHQSRRUHULQVSLULWXDO
HQOLJKWHQPHQW
7KH6XEFRQVFLRXV
([,IULFKHULQPHQWDOUHFRQVWUXFWLRQWKHQSRRUHULQDFFXUDF\RI
UHFDOO
([,IULFKHULQVWHUHRW\SLQJWKHQSRRUHULQXQGHUVWDQGLQJJURXSV
7KH8QFRQVFLRXV
([,IULFKHULQDXWRPDWLFSURFHVVLQJWKHQSRRUHULQGHSWKRI
DQDO\VLV
([,IULFKHULQFRJQLWLYHLQWXLWLRQWKHQSRRUHULQUHOLDELOLW\RI
MXGJPHQWV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
1RWHV7KHVHH[DPSOHVDUHVROHO\LOOXVWUDWLYHQRWH[KDXVWLYHDQGVRPHRI
WKH LWHPV FDQ EH UHFODVVLILHG VRPHZKHUH HOVH 1RU DUH WKH\ DOZD\V
PXWXDOO\ H[FOXVLYH 6LQFH WKH\ DUH JHQHUDOLWLHV H[FHSWLRQV DUH H[SHFWHG
$QGWKHFRPSDULVRQLVUHODWLYHQRWDEVROXWH
6RXUFH)URP%&3&
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7DEOH7KH:HDOWK3RYHUW\'LDOHFWLFVLQ'LIIHUHQW0HQWDO6WDWHV
7KH&DVHRI(PRWLRQDQG%HKDYLRU
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
(PRWLRQ
&RQVFLRXV
([,IULFKHULQUHO\LQJRQIDPLOLDULW\DQGVLPLODULW\IRUVRFLDO
DWWUDFWLRQWKHQSRRUHULQKDYLQJGLYHUVHVRFLDOUHODWLRQV
6XEFRQVFLRXV
([,IULFKHULQPRRGLQHVVWKHQSRRUHULQVREHUWKLQNLQJ
8QFRQVFLRXV
([,IULFKHULQHPSDWK\WKHQSRRUHULQWDVNRULHQWHGHIILFLHQF\
([,IULFKHULQLQVWLQFWVWKHQSRRUHULQFULWLFDOWKLQNLQJ
%HKDYLRU
&RQVFLRXV
([,IULFKHULQIRRWLQWKHGRRUWHFKQLTXHWKHQSRRUHULQLQVWDQW
*UDWLILFDWLRQ
([,IULFKHULQUROHSOD\LQJWKHQSRRUHULQLGHQWLW\VWDELOLW\
6XEFRQVFLRXV
([,IULFKHULQGLVFULPLQDWLQJWKHQSRRUHULQVRFLDOKDUPRQ\
8QFRQVFLRXV
([,IULFKHULQNLQHVLFVDQGSUR[HPLFVWKHQSRRUHULQYHUEDOVNLOOV
UHODWLYHO\VSHDNLQJ
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
1RWHV7KHVHH[DPSOHVDUHVROHO\LOOXVWUDWLYHQRWH[KDXVWLYHDQGVRPHRI
WKH LWHPV FDQ EH UHFODVVLILHG VRPHZKHUH HOVH 1RU DUH WKH\ DOZD\V
PXWXDOO\ H[FOXVLYH 6LQFH WKH\ DUH JHQHUDOLWLHV H[FHSWLRQV DUH H[SHFWHG
$QGWKHFRPSDULVRQLVUHODWLYHQRWDEVROXWH
6RXUFH)URP%&3&
&KDSWHU,QWURGXFWLRQ7KH3UDFWLFHRI&XOLQDU\$UW
7DEOH7KH7KHRUHWLFDO'HEDWHRQ1DWXUHYV1XUWXUH
3DUW,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
7KH(QYLURQPHQWDO$SSURDFK
7KHVLV ,W IRFXVHV UHODWLYHO\ VSHDNLQJ PRUH RQ WKH HQYLURQPHQW
FXOWXUH DQG VRFLHW\ LQ H[SODLQLQJ WKH DFKLHYHPHQW JDS DPRQJ
LQGLYLGXDOVDQGIRUWKDWPDWWHUFRXQWULHVRUUHJLRQVZKHQFRQWUDVWHG
ZLWKWKHQDWXUDOIDFWRUV
'LVFRXUVH ([DPSOHV LQFOXGH -RVH 2UWHJD \ *DVVHW 0DQ KDV QR
QDWXUH ZKDW KH KDV LV KLVWRU\ $VKOH\ 0RQWDJX 0DQ LV PDQ
EHFDXVHKHKDVQRLQVWLQFWVEHFDXVHHYHU\WKLQJKHLVDQGKDVEHFRPH
KH KDV OHDUQHG IURP KLV FXOWXUH IURP WKH PDQPDGH SDUW RI WKH
HQYLURQPHQWIURPRWKHUKXPDQEHLQJV6WHSKHQ-D\*RXOG>7KH@
EUDLQ >LV@ FDSDEOH RI D IXOO UDQJH RI EHKDYLRUV DQG SUHGLVSRVHG WR
QRQHDQG-HVVH-DFNVRQZKREODPHVZKLWHUDFLVPIRUWKHIDLOXUHRI
EODFNV WR FORVH WKH DFKLHYHPHQW JDS EHWZHHQ ZKLWHV DQG EODFNV LQ
$PHULFD7KH ZRUNVRQGHSHQGHQF\WKHRU\LQLQWHUQDWLRQDOSROLWLFDO
HFRQRP\ZLWKD0DU[LDQLQIOXHQFHDQGRQWKH3URWHVWDQWZRUNHWKLF
E\0D[:HEHUDOVRSRLQWWRWKLVHQYLURQPHQWDOGLUHFWLRQ
7KH*HQHWLF$SSURDFK
7KHVLV ,W IRFXVHV LQVWHDG UHODWLYHO\ VSHDNLQJ DJDLQ RQ KHUHGLWRU\
IDFWRUVHJJHQHVDQGHYROXWLRQLQH[SODLQLQJWKHDFKLHYHPHQWJDS
DPRQJ LQGLYLGXDOV DQG IRU WKDW PDWWHU FRXQWULHV RU UHJLRQV ZKHQ
FRQWUDVWHGZLWKWKHHQYULRQPHQWDOIDFWRUV
'LVFRXUVH ([DPSOHV DUH +DQV (\VHQFN DQG :LOOLDP 6KHOGRQ LQ
FRQVWLWXWLRQDO SV\FKRORJ\ .RQUDG /RUHQ] LQ KLV ZRUN RQ LQQDWH
DJJUHVVLYH KXPDQ QDWXUH *DU\ 0DUFXV RQ WKH FRPSOH[LWLHV RI
KXPDQ WKRXJKW E\ D WLQ\ QXPEHU RI JHQHV DQG 5REHUW 3ORPLQ
WRJHWKHUZLWK0LFKDHO2ZHQDQG3HWHU0F*XIILQRQWKHJHQHWLFEDVLV
RIFRPSOH[KXPDQEHKDYLRUV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
FRQWLQXHGRQQH[WSDJH
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7DEOH7KH7KHRUHWLFDO'HEDWHRQ1DWXUHYV1XUWXUH
3DUW,,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
7KH&RPSURPLVH$SSURDFK
7KHVLV ,W VHHNV WKH PLGGOHRIWKHURDG DUJXPHQW LQ UHJDUG WR QDWXUH
DQGQXUWXUHDQGUHJDUGVDOOGLIIHUHQFHVDPRQJLQGLYLGXDOVDQGJURXSV
DV WKH UHVXOW RI WKH PL[WXUH RI ERWK QDWXUH DQG QXUWXUH PRUH RU OHVV
HTXDOO\
'LVFRXUVH([DPSOHVLQFOXGH&0XUUD\DQG5+HUUQVWHLQ,WVHHPV
KLJKO\OLNHO\WRXVWKDWERWKJHQHVDQGHQYLURQPHQWKDYHVRPHWKLQJWR
GRZLWKWKLVLVVXHDQG'DQ 'HQQHWW6XUHO\
HYHU\RQHNQRZV
WKDW
WKHQDWXUHQXUWXUHGHEDWHZDVUHVROYHGORQJDJRDQGQHLWKHUVLGHZLQV
VLQFHHYHU\WKLQJLVDPL[WXUHRIERWKDQGLWVDOOYHU\
FRPSOLFDWHG
7KH7UDQVFHQGHQW$SSURDFK
7KHVLV ,W JRHV EH\RQG ERWK QDWXUH DQG QXUWXUH ZLWKRXW KRZHYHU
FRPPLWWLQJ WKH FRPSURPLVH IDOODF\ LQ VKRZLQJ WKHLU FORVHO\
LQWHUWZLQHG LQWHUDFWLRQV LQ SURGXFLQJ WKH EHKDYLRUDO GLIIHUHQFHV DV
RIWHQVHHQLQLQGLYLGXDOKXPDQHQGHDYRUVRQWKHPLFURVFDOHDQGIRU
WKDWPDWWHULQFRXQWU\RUUHJLRQDOHQGHDYRUVRQWKHPDFURRQHLQ
WKHFRQWH[WRIP\ILYHWKHVHVQDPHO\DWKHFRPSURPLVHIDOODF\E
QRRSSUHVVLRQZLWKRXWVHOIRSSUHVVLRQFQRVXFFHVVZLWKRXWIDLOXUH
G WKH IDFWRU RI UDQGRPQHVV DQG H WKH SRVWKXPDQ YLVLRQ WR EH
HODERUDWHGLQ&KDSWHU6L[
'LVFRXUVH 3HWHU %DRIX SURSRVHG WKLV DSSURDFK RQ WKH EDVLV RI KLV
WKHRU\ RI FRQWUDVWLYH DGYDQWDJHV DV DQ RULJLQDO WKHRUHWLFDO
FRQWULEXWLRQWRWKHGHEDWH ZKLFK ZDVILUVWSURSRVHGDQGDQDO\]HGLQ
7KH )XWXUH RI &DSLWDOLVP DQG 'HPRFUDF\ ,Q WKH HQG WKH KXPDQ
JHQHV ZLOO QRW ODVW WR EH HYHQWXDOO\ VXSHUVHGHG E\ SRVWKXPDQ OLIH
IRUPV VR WKH GHEDWH EHWZHHQ JHQHV DQG PHPHV KDV REVFXUHG
VRPHWKLQJ SURIRXQGO\ LPSRUWDQW DERXW WKH IXWXUH WKDW WKH ZRUOG KDV
QHYHU NQRZQ $QG WKH GHEDWH LV DOVR PLVOHDGLQJ DQG IDXOW\ LQ LWV
GLFKRWRP\
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
6RXUFH)URP%116HHWKHERRNIRUFLWDWLRQVDQGGHWDLOV
&KDSWHU,QWURGXFWLRQ7KH3UDFWLFHRI&XOLQDU\$UW
7DEOH3K\VLFDO&KDOOHQJHVWR+\SHU6SDWLDO&RQVFLRXVQHVV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
7KH8QGHUVWDQGLQJRID+LJKHU'LPHQVLRQDO:RUOGRI6SDFH7LPH
([IRUWUDGLWLRQDODVSHFWVRIVSDFHWLPHHJOHQJWKZLGWKEUHDGWK
DQGWLPHSOXVPRUHQHZGLPHQVLRQVLQWKHRU\RIK\SHUVSDFHZLWK
SURIRXQG LPSOLFDWLRQV IRU SUDFWLFDO DSSOLFDWLRQV WR QHZ IRUPV RI
FRQVFLRXVQHVV
7KH0DVWHULQJRI'DUN0DWWHUDQG'DUN(QHUJ\
([RUGLQDU\PDWWHUHJDWRPVPROHFXOHVDVDPHUHRIWKH
XQLYHUVH ZLWK PDGH RI FROG GDUN PDWWHU DQG WKH UHVW DERXW
RI P\VWHULRXV GDUN HQHUJ\ ZLWK IXQGDPHQWDO VLJQLILFDQFH WR
TXHVWLRQV DERXW WKH OLPLW RI WKH VSHHG RI HQHUJ\ RU LQIR WKH
DYDLODELOLW\RIHQHUJ\IRUXVHDQGWKHQDWXUHRIVSDFHWLPHMXVWWRFLWH
VRPHH[DPSOHV
7KH([SORUDWLRQRI0XOWLYHUVHV
([WKHRUHWLFDOVSHFXODWLRQRIRWKHUXQLYHUVHVHJEDE\XQLYHUVHV
JDWHZD\V LQ EODFN KROHV ZDYH IXQFWLRQ RI WKH XQLYHUVH PDQ\
ZRUOGV EUDQH ZRUOGV ZLWK SRWHQWLDOO\ VHPLQDU\ GLVFRYHULHV RI
GLIIHUHQW SK\VLFDO ODZV LQ UHODWLRQ WR PDWWHUHQHUJ\ DQG VSDFHWLPH
DQG YLWDO GLIIHUHQFHV WR WKH IXWXUH RI SRVWKXPDQ FRQTXHVW RI RWKHU
XQLYHUVHVIRUWKHHPHUJHQFHRIQHZIRUPVRIFRQVFLRXVQHVV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
1RWHV7KHVHH[DPSOHVDUHVROHO\LOOXVWUDWLYHQRWH[KDXVWLYHDQGVRPHRI
WKH LWHPV FDQ EH UHFODVVLILHG VRPHZKHUH HOVH 1RU DUH WKH\ DOZD\V
PXWXDOO\ H[FOXVLYH 6LQFH WKH\ DUH JHQHUDOLWLHV H[FHSWLRQV DUH H[SHFWHG
7KHSRLQWKHUHLVWRJLYHDURXJKSLFWXUHRIWKHHYROXWLRQRIFRQVFLRXVQHVV
WR WKH K\SHUVSDWLDO FRQVFLRXVQHVV DQG RWKHUV WRWDOO\ XQNQRZQ WR FXUUHQW
HDUWKOLQJV $V D QRWH RI FODULILFDWLRQ LW PDNHV QR GLIIHUHQFH WR P\
DUJXPHQWDVWRZKHWKHURUQRWWKHK\SHUVSDWLDOFRQVFLRXVQHVVPD\HPHUJH
EHIRUHGXULQJDQGDIWHUIORDWLQJFRQVFLRXVQHVV
6RXUFH)URP7DEOHRI)3+&
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7DEOH7KH7KHRU\RI)ORDWLQJ&RQVFLRXVQHVV
3DUW,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
$WWKH0LFUR3K\VLFDO/HYHO
([LQWHOOLJHQWOLIHZLWKRXWWKHKXPDQSK\VLFDOFKHPLFDOV\VWHP
$WWKH&KHPLFDO/HYHO
([VSDFHUDGLDWLRQDQGWR[LQV
$WWKH%LR3V\FKRORJLFDO/HYHO
([H[RELRORJLFDOHYROXWLRQLQGHHSVSDFH
([JHQHWLFHQJLQHHULQJRIQHZEHLQJV
$WWKH,QVWLWXWLRQDO/HYHO
([SRVWFDSLWDOLVP
([SRVWGHPRFUDF\
$WWKH2UJDQL]DWLRQDO/HYHO
([OHVVOHJDOIRUPDOLVWLFURXWLQHV
$WWKH6WUXFWXUDO/HYHO
([DOLHQIRUPVRIYLROHQFH
$WWKH&XOWXUDO/HYHO
([WUDQVFHQGLQJIUHHGRP
([WUDQVFHQGLQJHTXDOLW\
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
FRQWLQXHGRQQH[WSDJH
&KDSWHU,QWURGXFWLRQ7KH3UDFWLFHRI&XOLQDU\$UW
7DEOH7KH7KHRU\RI)ORDWLQJ&RQVFLRXVQHVV
3DUW,,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
$WWKH&RVPRORJLFDO/HYHO
([SDUDOOHOXQLYHUVHV
([SRFNHWXQLYHUVHV
$WWKH6\VWHPLF/HYHO
([VSDFHKDELWDWVLQ]HURJUDYLW\
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
1RWHV (DFK H[DPSOH GUDZV IURP WKH ZRUNV RI GLIIHUHQW VFKRODUV LQ WKH
ILHOG)RULQVWDQFHDWWKHFRVPRORJLFDOOHYHOWKHLGHDRISDUDOOHOXQLYHUVHV
LV IURP WKH WKHRUHWLFDO VSHFXODWLRQ LQ TXDQWXP FRVPRORJ\ E\ 6WHSKHQ
+DZNLQJ DQG RWKHUV ZKLOH WKH RQH RI SRFNHW XQLYHUVHV FRPHV IURP WKH
WKHRUHWLFDO ZRUN RI $OODQ *XWK DW 0,7 $QG DW WKH LQVWLWXWLRQDO OHYHO ,
SURSRVHG SRVWFDSLWDOLVP DQG SRVWGHPRFUDF\ LQ )&' DQG ODWHU IURP
%'3' DQG %&3& ,Q DGGLWLRQ WKH H[DPSOHV DUH VROHO\ LOOXVWUDWLYH QRW
H[KDXVWLYH DQG VRPH RI WKH LWHPV FDQ EH UHFODVVLILHG VRPHZKHUH HOVH
1RU DUH WKH\ DOZD\V PXWXDOO\ H[FOXVLYH 6LQFH WKH\ DUH JHQHUDOLWLHV
H[FHSWLRQVDUHH[SHFWHG
6RXUFHV)URP)3+&DQGRULJLQDOO\IURP)&'
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7DEOH7KH3RWHQWLDORI8QIROGLQJ8QFRQVFLRXVQHVV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
6XSHULRU6HQVHV
7KURXJKVSDFH
([FODLUVHQWLHQFHLQIHHOLQJ
([FODLUYR\DQFHLQVHHLQJ
([FODLUDXGLHQFHLQKHDULQJ
([FODLUDXVWDQFHLQWDVWLQJ
([FODLUDOLHQFHLQVPHOOLQJ
([FODLUFRJQL]DQFHLQNQRZLQJ
7KURXJKWLPH
([SUHFRJQLWLRQLQNQRZLQJSUHVHQWLPHQWLQIHHOLQJ
([UHWURFRJQLWLRQLQNQRZLQJUHWURVHQWLPHQWLQIHHOLQJ
6XSHULRU&RQWDFWV
:LWKOLYLQJPLQGV
([WHOHSDWK\
:LWKWKHGHDG
([PHGLXPVKLS
:LWKRWKHUOLYLQJHQWLWLHV
([WHOHNLQHVLV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
1RWHV7KHFDWHJRULHVDQGH[DPSOHVDUHVROHO\LOOXVWUDWLYHQRWH[KDXVWLYH
DQG WKH FRPSDULVRQ LV UHODWLYH QRW DEVROXWH QRU DUH WKH\ QHFHVVDULO\
PXWXDOO\ H[FOXVLYH $QG VRPH FDQ EH HDVLO\ UHFODVVLILHG HOVHZKHUH $V
JHQHUDOLWLHVWKH\DOORZH[FHSWLRQV
6RXUFH$VXPPDU\RI&KRI)3+8
&KDSWHU,QWURGXFWLRQ7KH3UDFWLFHRI&XOLQDU\$UW
7DEOH7KH)XWXUH([SORUDWLRQRI8QIROGLQJ8QFRQVFLRXVQHVV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
,QWKH&RQWH[WRI1DWXUH
([WKHKLJKHUGLPHQVLRQDOVSDFHWLPHLQK\SHUVSDFHWKHRU\
([WKHSDUWLFOHZDYHLQWHUDFWLRQVLQTXDQWXPPHFKDQLFV
([WKHVWXG\RIEUDLQZDYHVLQHOHFWURPDJQHWLFWKHRU\
,QWKH&RQWH[WRIWKH0LQG
([WKHXQFRQVFLRXVIDQWDVLHVLQSV\FKRDQDO\VLV
([WKHPLQGDOWHULQJGUXJVLQELRFKHPLVWU\
([WKHPDQLSXODWLRQRIQHXUDODFWLYLW\LQQHXURELRORJ\
,QWKH&RQWH[WRI&XOWXUH
([WKHFRUUHODWLRQEHWZHHQDQRPDORXVH[SHULHQFHDQG
PRUDOUHOLJLRXVDHVWKHWLFLQWHUHVWVLQFXOWXUHVWXGLHV
([WKHUROHRIP\WKVDQGODQJXDJHLQHSLVWHPRORJ\
,QWKH&RQWH[WRI6RFLHW\
([GLIIHUHQWRUJDQL]DWLRQDODJHQGDVLQDQRPDORXVUHVHDUFK
([WKHVFKRODUO\GLYLGHRQDQRPDORXVVWXG\
([LQWHUHVWVDQGSURSDJDQGDLQLQVWLWXWLRDQOUHVHDUFK
([WKHWUDQVIRUPDWLYHSRZHURIWHFKQRORJ\LQUHVHDUFKRQ
VRFLDOV\VWHPV
([WKHQDWXUDODQGQRQQDWXUDOVHOHFWLRQRIRWKHUZRUOGVLQ
H[RELRORJ\
([WKHUROHRIWKHSRVWKXPDQFRQVFLRXVPLQGLQTXDOLWDWLYH
GHPRJUDSK\
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
1RWHV 7KH H[DPSOHV LQ HDFK FDWHJRU\ DUH VROHO\ LOOXVWUDWLYH QRW
H[KDXVWLYH DQG WKH FRPSDULVRQ LV UHODWLYH QRW DEVROXWH QRU DUH WKH\
QHFHVVDULO\ PXWXDOO\ H[FOXVLYH $QG VRPH FDQ EH HDVLO\ UHFODVVLILHG
HOVHZKHUH$VJHQHUDOLWLHVWKH\DOORZH[FHSWLRQV
6RXUFH$VXPPDU\RI&KVRI)3+8LQFRQMXQFWLRQZLWKWKHUHVWRI
WKHERRN
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7DEOH&UHDWLYH7HFKQLTXHVDQG7UDLWV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
&UHDWLYH7HFKQLTXHV
&RPSUHKHQVLYHQHVV
([%URDGQHVVRI6FRSH
([,Q'HSWK$QDO\VLV
([0XOWLIDFHWHG7D[RQRP\
([1XPHURXV7KHRULHV
$UUDQJHPHQW
([6HSDUDWLRQRU6XEWUDFWLRQ
([&RPELQDWLRQRU$GGLWLRQ
([5HSODFHPHQW
([$FFRPPRGDWLRQ
([5HYHUVDO
([6WUHWFKLQJ
6HUHQGLSLW\
([3OD\
([&KDQFH
&UHDWLYH7UDLWV
2SHQQHVV5LVN
([$ELOLW\WRZHOFRPHQHZLGHDVRUWRGRQHZWKLQJVZLWKULVN
'LVFLSOLQH
([$ELOLW\WRVDFULILFHZKDWHYHULWWDNHVWRVXFFHHG
5HVLOLHQFH&RQILGHQFH
([$ELOLW\WRWDNHIDLOXUHVWRPLQGQRWWRKHDUW
7UXVW
([$ELOLW\WRFRRSHUDWHZLWKRWKHUVIRUWHDPZRUNLIQHFHVVDU\
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
1RWHV 7KH H[DPSOHV LQ WKH FDWHJRULHV DUH VROHO\ LOOXVWUDWLYH QRW
H[KDXVWLYH DQG WKH FRPSDULVRQ LV UHODWLYH QRW DEVROXWH QRU DUH WKH\
QHFHVVDULO\ PXWXDOO\ H[FOXVLYH $QG VRPH FDQ EH HDVLO\ UHFODVVLILHG
HOVHZKHUH$VJHQHUDOLWLHVWKH\DOORZH[FHSWLRQV
6RXUFH)URP6HFRI)3+&7)RUPRUHGHWDLOVDOVRUHDGWKHUHVWRIWKH
ERRN
&KDSWHU,QWURGXFWLRQ7KH3UDFWLFHRI&XOLQDU\$UW
7DEOH7KH'HVLUDELOLW\RI&UHDWLYLW\DQG,WV'DUN6LGHV
3DUW,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
,Q5HODWLRQWR,QVWUXPHQWDO5DWLRQDOLW\
'HVLUDELOLW\
([)RUWKHVDNHRIHIILFLHQF\DQGHIIHFWLYHQHVVLQWKLVFDSLWDOLVWHUD
RIRXUWLPH
8QGHVLUDELOLW\
([:KDW0D[:HEHUFDOOHGWKHLURQFDJHRIFDSLWDOLVP
ZKHUH OLYH WKH VHQVXDOLVWV ZLWKRXW KHDUW VSHFLDOLVWV ZLWKRXW
VSLULWRUVRPHWKLQJZKLFKWKH)UDQNIXUW6FKRROKDVIRUFHIXOO\
DVNHGXVWREHIUHHGIURP
,Q5HODWLRQWR6XEVWDQWLYH5DWLRQDOLW\
'HVLUDELOLW\
([ )RU WKH VDNH RI *RG WKH .LQJ 0RWKHUODQG RU RWKHU
FRPSDUDEOHLGHDOV
8QGHVLUDELOLW\
(['RPLQDWLRQDQGRSSUHVVLRQRIYDULRXVIRUPVVRPHWKLQJ
ZKLFKWKHPRGHUQVKDGVWUXJJOHGWRIUHHWKHPVHOYHVIURPLQWKH
ILUVWSODFHVLQFHWKHGDZQRIPRGHUQLW\
,Q5HODWLRQWR$XWRQRPRXV5DWLRQDOLW\
'HVLUDELOLW\
([)RUWKHVDNHRILWVHOIWKHDXWRQRP\RIFUHDWLYHHQGHDYRU
8QGHVLUDELOLW\
([7KHGHFDGHQFHRILWVRZQGHJHQHUDWLRQHJWKHGRQZVLGHVRI
SRVWPRGHUQLVPLQRXUSRVWPRGHUQWLPHVRUZKDW1LHW]VFKHRQFH
FDOOHG WKH XQEHDUDEOH XQUHDOLW\ DQG IDOVHQHVV RI WKH
DXWRQRPRXVDUWLVWVLQQHUPRVWH[LVWHQFHDQGLQRWKHUFDVHV
WKH SDLQIXO VXIIHULQJ IURP GLIIHUHQW PHQWDO LOOQHVVHV IRU WKRVH
KLJKO\FUHDWLYHLQGLYLGXDOV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
FRQWLQXHGRQQH[WSDJH
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7DEOH7KH'HVLUDELOLW\RI&UHDWLYLW\DQG,WV'DUN6LGHV
3DUW,,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
1RWHV 7KH H[DPSOHV LQ WKH FDWHJRULHV DUH VROHO\ LOOXVWUDWLYH QRW
H[KDXVWLYH DQG WKH FRPSDULVRQ LV UHODWLYH QRW DEVROXWH QRU DUH WKH\
QHFHVVDULO\ PXWXDOO\ H[FOXVLYH $QG VRPH FDQ EH HDVLO\ UHFODVVLILHG
HOVHZKHUH$VJHQHUDOLWLHVWKH\DOORZH[FHSWLRQV
$OVR,DOUHDG\ZHQWWRJUHDWOHQJKWVWRH[SODLQWKHGHVLUDELOLW\DQGLWVGDUN
VLGHVRIDOOWKHVHWKUHHUDWLRQDOLWLHVDOWKRXJKWKHUH PD\EHRWKHUVWRRLQ
WKHWZRYROXPHVRI)+&DQGIRUWKDWPDWWHU)&'
6RXUFH)URP6HFRI)3+&7)RUPRUHGHWDLOVDOVRUHDGWKHUHVWRIWKH
ERRN
&KDSWHU,QWURGXFWLRQ7KH3UDFWLFHRI&XOLQDU\$UW
7DEOH3RVWKXPDQ,VP3RVW+XPDQLVPDQG7UDQV+XPDQLVP
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
3RVW+XPDQLVP
7KH QHRORJLVP SRVWKXPDQ XVHG LQ P\ ERRNV VKRXOG QRW EH
FRQIXVHG ZLWK DQRWKHU WHUP ZKLFK ORRNV VLPLODU EXW KDV D WRWDOO\
GLIIHUHQW PHDQLQJ LQ WKH OLWHUDWXUH RI SRVWPRGHUQLVP QDPHO\ SRVW
KXPDQLVPZKLFK FRQVWLWXWHV D FULWLTXH RI KXPDQLVP DV
WUDGLRQDOO\XQGHUVWRRGHVSHFLDOO\WKRXJKQRWH[FOXVLYHO\LQUHODWLRQ
WR WKH LGHD RI SURJUHVV LQ VFLHQFH DQG UHDVRQ LQ WKH (QOLJKWHQPHQW
SURMHFW:.
0\ ZRUNV UHMHFW WKH SURMHFW RI SRVWPRGHUQLVP DQG SURSRVH WKH
IXWXUHZRUOGRIZKDW,RULJQDOO\FDOOHGDIWHUSRVWPRGHUQLW\LQ)+&
DQG)&'IRULQVWDQFH
7UDQV+XPDQLVP
$OVR WKH QHRORJLVP SRVWKXPDQ XVHG LQ P\ ERRNV VKRXOG QRW EH
FRQIXVHGZLWKDVLPLODUWHUPZKLFKLVXVHGWRFKDPSLRQWKHLGHRORJ\
RI WHFKQRORJ\ IRU WKH IWXUXH FRH[LVWHQFH EHWZHHQ KXPDQV DQG
F\ERUJVLQWUDQVKXPDQLVP:.D
,QVWHDG P\ WHUP SRVWKXPDQ LQ UHODWLRQ WR SRVWKXPDQLVP DOVR
UHMHFWV WUDQVKXPDQLVP HVSHFLDOO\ WKRXJK QRW H[FOXVLYHO\ LQ
UHODWLRQ WR WKH SURPLVHV RI WHFKQRORJ\ DQG UHIHUV WR VRPHWKLQJ HOVH
DOWRJHWKHUWKDWLVWKHIXWXUHH[WLQFWLRQRIKXPDQVDQGLWVSRVWKXPDQ
VXFFHVVRUVLQGHHSVSDFHDQGEH\RQGXQWRPXOWLYHUVHV
&KDSWHU 7ZR RI P\ ERRN RQ HWKLFV %(3( SURYLGHV D PRUH
FRPSUHKHQVLYHFULWLTXHRIWUDQVKXPDQLVP
3RVWKXPDQ,VP
:LWK WKHVH WZR FODULILFDWLRQV LQ PLQG WKH SRVWKXPDQV DV
HQYLVLRQHGLQP\ERRNVFDQWDNHGLIIHUHQWIRUPVDQG,SURSRVHGLQ
P\ GLIIHUHQW ERRNV VRPH RI WKHP VXFK DV XQIROGLQJ
XQFRQVFLRXVQHVV
IORDWLQJ
FRQVFLRXVQHVV
K\SHUVSDWLDO
FRQVFLRXVQHVV WKLQNLQJ PDFKLQHV WKLQNLQJ URERWV JHQHWLFDOO\
DOWHUHGVXSHULRUEHLQJVF\ERUJVDQGRWKHUVDVDOUHDG\DQDO\]HGLQ
P\SUHYLRXVZRUNV
7KH\ZLOOHYROYHLQFRQMXQFWLRQZLWKRWKHUYLVLRQVRIPLQHLQUHODWLRQ
WRQDWXUHVRFLHW\DQGFXOWXUH
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
6RXUFHV)URP 6HFRI)3+(DQGDOVR%(3()RUPRUHGHWDLOVDOVR
UHDGWKHUHVWRIWKHERRNVDQGRWKHUERRNVRIPLQH
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7DEOH7KUHH*UHDW)XWXUH7UDQVIRUPDWLRQVRIWKH0DUWLDO%RG\
3DUW,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
9LUWXDO%DWWOH
([YLUWXDOILJKW
([YLUWXDOPHPRU\
7KH+\SHU0DUWLDO%RG\
,QUHODWLRQWRWKHSK\VLFDOGLPHQVLRQ
([VWULNLQJHJSXQFKLQJNLFNLQJWUDSSLQJDFXSUHVVXUHVWULNLQJ
DQGVRRQLQDQDPD]LQJZD\
([JUDSSLQJHJWKURZLQJSLQQLQJMRLQWORFNLQJDQGVRRQLQDQ
DPD]LQJZD\
([UXQQLQJDQGZDONLQJHJRQGLIIHUHQWVXUIDFHV
([MXPSLQJHJWKURXJKZDOOVWUHHVHWF
([IO\LQJHJWKURXJKVSDFH
([HQGXULQJSDLQHJDEVRUELQJSXQFKHVNLFNVDQGVRRQLQDQ
DPD]LQJZD\
([XVLQJH[WUHPHO\DGYDQFHGKLWHFKZHDSRQV
([KHDOLQJHJZLWKVSHFLDOHQHUJ\HWF
([HQWHULQJHJLQWRGLIIHUHQWGLPHQVLRQVRIVSDFH
([ VHQVLQJ HJ LQ H[WUDRUGLQDU\ ZD\V WKURXJK VSDFH DQG WLPH
HWF
([ZHDULQJKLWHFKVXLWVIRUGHIHQVLYHDQGRIIHQVLYHSXUSRVHVHJ
OLNHDKLWHFKDUPRU
,QUHODWLRQWRWKHPHQWDOGLPHQVLRQ
([WKHDELOLW\WRUHOD[WKHPDUWLDOERG\LQDZD\WKDWFXUUHQWKXPDQV
FDQQRW
([WKHDELOLW\WRFRQFHQWUDWHWKHPDUWLDOPLQGLQDZD\WKDWFXUUHQW
KXPDQVDUHQRWDFFXVWRPHGWR
([WKHDELOLW\WREUHDWKHDQGEHWLPHO\LQSUHSDULQJWKHPDUWLDOERG\
IRUILJKWLQJLQDZD\WKDWFXUUHQWKXPDQVDUHQRWJRRGDW
7KH3RVW0DUWLDO)ORDWLQJ0LQG
([WKHPLQGZLWKRXWWKHKXPDQERG\
([WKHTXHVWIRUVSLULWXDOLW\EH\RQGPDUWLDODUWV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
FRQWLQXHGRQQH[WSDJH
&KDSWHU,QWURGXFWLRQ7KH3UDFWLFHRI&XOLQDU\$UW
7DEOH7KUHH*UHDW)XWXUH7UDQVIRUPDWLRQVRIWKH0DUWLDO%RG\
3DUW,,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
1RWHV 7KH H[DPSOHV LQ WKH FDWHJRULHV DUH VROHO\ LOOXVWUDWLYH QRW
H[KDXVWLYH DQG WKH FRPSDULVRQ LV UHODWLYH QRW DEVROXWH QRU DUH WKH\
QHFHVVDULO\ PXWXDOO\ H[FOXVLYH $QG VRPH FDQ EH HDVLO\ UHFODVVLILHG
HOVHZKHUH$VJHQHUDOLWLHVWKH\DOORZH[FHSWLRQV
6RXUFH)URP6HFRI)3+0$6HHWH[WIRUFLWDWLRQV
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7DEOH7KUHH*UHDW)XWXUH7UDQVIRUPDWLRQVRIWKH6H[XDO%RG\
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
9LUWXDO3OHDVXUH
([YLUWXDO6H[
([YLUWXDO5HFDOO
7KH+\SHU6H[XDO%RG\
,QUHODWLRQWRWKHSK\VLFDOGLPHQVLRQ
([ WKH DELOLW\ WR SHUIRUP GLIIHUHQHW VH[XDO SRVLWLRQV ZLWKRXW WKH
YDULRXVSK\VLFDOOLPLWDWLRQVWKDWKXPDQVFXUUHQWO\KDYH
([WKHDELOLW\WRSURGXFHXQXVXDODPRXQWRIVH[XDOHQHUJ\WRHQGXUH
LQVH[XDODFWVLQDZD\WKDWKXPDQVFXUUHQWO\FDQQRW
([WKHDELOLW\WRHQJDJHLQPXOWLSOHVH[XDOH[SHULHQFHVFRPSDUDEOH
WR EXW GLIIHUHQW IURP QRQKXPDQ VH[XDOLW\ HJ KHUPDSKURGLWH
PRQRHFLRXV VH[VZLWFKLQJ DQG PDQ\ RWKHU W\SHV WKDW FXUUHQW
KXPDQVFDQQRW
,QUHODWLRQWRWKHPHQWDOGLPHQVLRQ
([WKHDELOLW\WRUHOD[WKHVH[XDOERG\LQDZD\WKDWFXUUHQWKXPDQV
DUHQRWDFFXVWRPHGWR
([WKHDELOLW\WRFRQFHQWUDWHWKHVH[XDOPLQGLQDZD\WKDWFXUUHQW
KXPDQVDUHQRWJRRGDW
([WKHDELOLW\WREUHDWKHDQGEHSDWLHQWLQSUHSDULQJWKHVH[XDOERG\
IRUVH[XDOLW\LQDZD\WKDWFXUUHQWKXPDQVDUHQRWDEOHWR
7KH3RVW6H[XDO)ORDWLQJ0LQG
([WKHPLQGZLWKRXWWKHKXPDQERG\
([WKHTXHVWIRUVSLULWXDOLW\EH\RQGVH[XDOLW\
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
1RWHV 7KH H[DPSOHV LQ WKH FDWHJRULHV DUH VROHO\ LOOXVWUDWLYH QRW
H[KDXVWLYH DQG WKH FRPSDULVRQ LV UHODWLYH QRW DEVROXWH QRU DUH WKH\
QHFHVVDULO\ PXWXDOO\ H[FOXVLYH $QG VRPH FDQ EH HDVLO\ UHFODVVLILHG
HOVHZKHUH$VJHQHUDOLWLHVWKH\DOORZH[FHSWLRQV
6RXUFH)URP6HFRI)3+66HHWH[WIRUPRUHLQIR
&KDSWHU,QWURGXFWLRQ7KH3UDFWLFHRI&XOLQDU\$UW
7DEOH7KH7ULQLW\RI3UH0RGHUQLW\
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
3UH)UHH6SLULWHG3UH0RGHUQLW\3UH0RGHUQLVPDQG
,WV,QWHUQDO6SOLW
&RPSHWLQJ ZRUOGYLHZV DQG YDOXHV ERWK ZLWKLQ DQG EHWZHHQ OLQHDU
FHQWULFHJ,VODPLF&KULVWLDQ-XGDLF,PSHULDO5RPDQDQGF\FOLFDO
FHQWULFHJ&RQIXFLDQ7DRLVW+LQGXDQG%XGGKLVWRULHQWDWLRQV
&RPSDUHPRGHUQLVPZLWKSUHPRGHUQLVPKHUHLQUHODWLRQWRWKHVHYHQ
GLPHQVLRQV RI KXPDQ H[LVWHQFH OLNH WKH WUXH DQG WKH KRO\ HJ
GLIIHUHQW YHUVLRQV RI HSLVWHPLF GRJPDV DQG UHOLJLRXV VXSHUVWLWLRQV
WKH HYHU\GD\ DQG WKH WHFKQRORJLFDO HJGLIIHUHQW YHUVLRQV RI QRQ
WHFKQRSKLOLVP DQG QRQFRQVXPHULVP WKH EHDXWLIXOVXEOLPH HJ
GLIIHUHQW YHUVLRQV RI DHVWKHWLF QRQDXWRQRP\ DQG WKH JRRG DQG WKH
MXVWHJGLIIHUHQWYHUVLRQVRIPRUDOSDUWLFXODULVP
3UH&DSLWDOLVW3UH0RGHUQLW\3UH0RGHUQL]DWLRQDQG
,WV2ZQ'LVFRQWHQWV
&RPSHWLQJ YHUVLRQV RI VRFLHWDO DUUDQJHPHQWV HJ IHXGDOLVP
PRQDUFKLVPDQGWKHKRO\RUGHU
+HJHPRQLF3UH0RGHUQLW\DQG,WV&RXQWHUYDLOLQJ)RUFHV
'LIIHUHQWSRZHUFHQWHUVDQGWKHLUHQHPLHVHJWKH5RPDQ(PSLUH
DQGWKHEDUEDULDQKRUGHVWKH+RO\&UXVDGHVDQGWKH0XVOLPVWKH
0LGGOH .LQJGRP DQG WKH LQYDGLQJ WULEHV GLIIHUHQW VRFLDO FDVWHV LQ
,QGLDDQGZDUULQJ*UHHNFLW\VWDWHV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
1RWHV 7KH H[DPSOHV LQ HDFK FDWHJRU\ DUH VROHO\ LOOXVWUDWLYH QRW
H[KDXVWLYH QRU QHFHVVDULO\ PXWXDOO\ H[FOXVLYH DQG WKH FRPSDULVRQ LV
UHODWLYHQRWDEVROXWH$VJHQHUDOLWLHVWKH\DOORZH[FHSWLRQV$OVRLWGRHV
QRWPDWWHUZKDWWKHEDVHHUDLVLQWKHDQDO\VLVRIDQ\WULQLW\$QGLQWKH
SUHVHQW FRQWH[W WKH EDVH HUD LV PRGHUQLW\ IRU LQVWDQFH ZLWK LWV IUHH
VSLULWHG PRGHUQLW\ DQG WKH RWKHU WZR SDUWV 6R IRU SUHPRGHUQLW\ WKH
WULQLW\ WDNHV WKH IRUP RI VD\ SUHIUHHVSLULWHG SUHPRGHUQLW\ WRJHWKHU
ZLWKWKHRWKHUWZRSDUWV
6RXUFHV)URP&KRI%&,9DQGDOVRWKHYROXPHVRI)+&
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7DEOH7KH7ULQLW\RI0RGHUQLW\
3DUW,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
)UHH6SLULWHG0RGHUQLW\0RGHUQLVPDQG,WV,QWHUQDO6SOLW
2QWKH7UXHDQGWKH+RO\
7KH IUHHGRP IURP WKH GRJPDV RI WKH SDVW WR WKH EHWWHU
XQGHUVWDQGLQJRIDQGXQLRQZLWKWKHZRUOGDQGVHOI&KRI)+&
$OWHUQDWLYHGLVFRXUVHVDERXWWKHWUXHHJDQWLVFLHQFHGLVFRXUVHV
DQGWKHKRO\QRQPDLQVWUHDPWKHRORJLHV&KRI)+&
2QWKH7HFKQRORJLFDODQGWKH(YHU\GD\
7KH IUHHGRP IURP OLIH KDUVKQHVV WR WKH KLJKHU WHFKQRSKLOLF
FRQVXPHULVWLFOLIHIRUP&KRI)+&
$OWHUQDWLYH GLVFRXUVHV DERXW WKH HYHU\GD\ HJ WUDQVFHQGHQWDO
PLQGVHWVDQGWKHWHFKQRORJLFDOHJ$UFDGLDQLVP&KRI)+&
2QWKH*RRGDQGWKH-XVW
7KH IUHHGRP IURP WKH WKHRDULVWRFUDWLF W\UDQQ\ WR WKH PRUDO
XQLYHUVDOLW\IRUDMXVWVRFLHW\&KRI)+&
$OWHUQDWLYH GLVFRXUVHV DERXW WKH MXVW HJ &RPPXQLVP
$QDUFKLVP DQG WKH JRRG HJ 1D]LVP)DVFLVP DQG
=DUDWKXVWULDQLVP&KVRI)+&
2QWKH%HDXWLIXODQGWKH6XEOLPH
7KHIUHHGRPIURPWKHH[WHUQDOGLVWRUWLRQRIDHVWKHWLFSOHDVXUHWRWKH
ERXQGOHVVLQILQLW\RIWRWDOLW\LQDUWLVWLFDXWRQRP\&KRI)+&
$OWHUQDWLYHGLVFRXUVHVDERXWWKHEHDXWLIXOVXEOLPHHJNLWVFKDQG
KLVWRULFDODYDQWJDUGLVP&KRI)+&
&DSLWDOLVW0RGHUQLW\0RGHUQL]DWLRQDQG,WV2ZQ'LVFRQWHQWV
'XULQJWKH,QGXVWULDO5HYROXWLRQ
([0DU[RQWKHLQVWLWXWLRQRILQHTXDOLW\&KRI)+&
'XULQJWKH0RGHUQ5DWLRQDO,QVWUXPHQWDO(SRFK
([:HEHURQWKHSROLWLFVRIVRIWOLEHUDOLQVWLWXWLRQV&KRI)+&
'XULQJWKH*UHDW'HSUHVVLRQ
([.H\QHVRQWKHP\WKRIWKHIUHHPDUNHW&KVRI)+&
'XULQJWKH&ROG:DU
([/DVFKRQWKHQDUFLVVLVWLFFXOWXUHLQGXVWU\&KVRI)+&
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
FRQWLQXHGRQQH[WSDJH
&KDSWHU,QWURGXFWLRQ7KH3UDFWLFHRI&XOLQDU\$UW
7DEOH7KH7ULQLW\RI0RGHUQLW\
3DUW,,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
+HJHPRQLF0RGHUQLW\DQG,WV&RXQWHUYDLOLQJ)RUFHV
7KH/HJDFLHVRI&RORQLDOLVPDQG,PSHULDOLVP
([(XURSHDQFRORQL]DWLRQRIPRVWRIWKHPRGHUQZRUOG&KRI
)+&
7KH6WUXJJOHIRU'HFRORQLDOL]DWLRQ
([7KHFRXQWHUYDLOLQJIRUFHVRIUHVHQWPHQWUHFKDQWPHQW
DQGUHJLRQDOLVP&KV RI)+&
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
1RWHV 7KH H[DPSOHV LQ HDFK FDWHJRU\ DUH VROHO\ LOOXVWUDWLYH QRW
H[KDXVWLYH QRU QHFHVVDULO\ PXWXDOO\ H[FOXVLYH DQG WKH FRPSDULVRQ LV
UHODWLYHQRWDEVROXWH$VJHQHUDOLWLHVWKH\DOORZH[FHSWLRQV
6RXUFHV)URPWKHYROXPHVRI)+&DQGDOVRIURP)&'
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7DEOH7KH7ULQLW\RI3RVW0RGHUQLW\
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
)UHH6SLULWHG3RVWPRGHUQLW\3RVWPRGHUQLVPDQG,WV,QWHUQDO6SOLW
2QWKH7UXHDQGWKH+RO\
3RVWPRGHUQSHUIRUPDWLYHWXUQIRUNQRZLQJDQGLWVHQHPLHV&KRI
)+&
3RVWPRGHUQFRPSDUDWLYHWKHRORJ\DQGLWVRSSRQHQWV&KRI)+&
2QWKH7HFKQRORJLFDODQGWKH(YHU\GD\
3RVWPRGHUQ FRUSRUDWH WHFKQRORJLFDO PLQGVHW DQG LWV DGYHUVDULHV
&KRI)+&
3RVWPRGHUQSRVWPDWHULDOLVPDQGLWVFULWLFV&KRI)+&
2QWKH*RRGDQGWKH-XVW
3RVWPRGHUQSROLWLFVRIGLIIHUHQFHDQGLWVIRHV&KRI)+&
2QWKH%HDXWLIXODQGWKH6XEOLPH
3RVWPRGHUQGHFRQVWUXFWLRQDQGLWVGLVVHQWHUV&KRI)+&
&DSLWDOLVW3RVWPRGHUQLW\3RVWPRGHUQL]DWLRQDQG,WV2ZQ
'LVFRQWHQWV
'XULQJWKH3RVW&ROG:DUDQG%H\RQG
([ SRVW)RUGLVP DQG LWV VKRUWFRPLQJV &K RI )+& &KV RI
)&'
+HJHPRQLF3RVWPRGHUQLW\DQG,WV&RXQWHUYDLOLQJ)RUFHV
7KH'HEDWHRQWKH*OREDO9LOODJH
([XQLFLYLOL]DWLRQDOLVPYVPXOWLFLYLOL]DWLRQDOLVP&KRI)+&
7KH5HVLVWDQFH0RYHPHQW
([ UHFKDQWPHQW DQG WKH SROLWLFV RI FLYLOL]DWLRQDO FODLPV HJ
,VODPLF &RQIXFLDQ DQG RWKHU HWKRV LQ UHODWLRQ WR WKH 6DPH &K
RI)+&&KRI)&'
([ UHVHQWPHQW DQG WKH SROLWLFV RI UHVXUJHQFH HJ WKH ULVLQJ
&KLQHVHVXSHUSRZHUWKHJURZLQJ(8DQGRWKHUSOD\HUVLQUHODWLRQ
WRWKH86DQGKHUDOOLHV&KRI)+&&KRI)&'
([ UHJLRQDOLVP DQG WKH SROLWLFV RI LQHTXDOLW\ HJ WUDQV RU LQWHU
QDWLRQDO EORFV WKH 1RUWK6RXWK GLYLGH 1*2V &K RI )+&
&KRI)&'
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
1RWHV 7KH H[DPSOHV LQ HDFK FDWHJRU\ DUH VROHO\ LOOXVWUDWLYH QRW
H[KDXVWLYH QRU QHFHVVDULO\ PXWXDOO\ H[FOXVLYH DQG WKH FRPSDULVRQ LV
UHODWLYHQRWDEVROXWH$VJHQHUDOLWLHVWKH\DOORZH[FHSWLRQV
6RXUFHV)URP)&'DQGWKHYROXPHVRI)+&
&KDSWHU,QWURGXFWLRQ7KH3UDFWLFHRI&XOLQDU\$UW
7DEOH7KH7ULQLW\RI$IWHU3RVWPRGHUQLW\
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
)UHH6SLULWHG$IWHU3RVWPRGHUQLW\$IWHU3RVWPRGHUQLVPDQG
,WV,QWHUQDO6SOLW
7KHGLVFRXUVHRIQDNHGFRQWLQJHQF\&KRI)&'&KRI)3+&
3RVW&DSLWDOLVW$IWHU3RVWPRGHUQLW\$IWHU3RVWPRGHUQL]DWLRQ
DQG,WV2ZQ'LVFRQWHQWV
'LIIHUHQWYHUVLRQVRISRVWFDSLWDOLVPDQGSRVWGHPRFUDF\DQG
WKHLUHQHPLHV&KRI)&'&KVRI)3+&
+HJHPRQLF$IWHU3RVWPRGHUQLW\DQG,WV&RXQWHUYDLOLQJ)RUFHV
7KH&\FOLFDO3URJUHVVLRQRI+HJHPRQ\LQ0XOWLYHUVHV&KVRI
)&'&KRI)3+&
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
1RWHV 7KH H[DPSOHV LQ HDFK FDWHJRU\ DUH VROHO\ LOOXVWUDWLYH QRW
H[KDXVWLYH QRU QHFHVVDULO\ PXWXDOO\ H[FOXVLYH DQG WKH FRPSDULVRQ LV
UHODWLYHQRWDEVROXWH$VJHQHUDOLWLHVWKH\DOORZH[FHSWLRQV
6RXUFHV)URP)&'DQGDOVR)+&
3$577:2
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
,QJUHGLHQWV
&+$37(5
,1*5(',(176$1'7+(,57:,148$/,7,(6
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
3ULPDWHVQHHGJRRGQXWULWLRQWREHJLQ
ZLWK 1RW RQO\ IUXLWV DQG SODQWV EXW
LQVHFWVDVZHOO
5LFKDUG/HDNH\%4E
7KH1HFHVVLW\RI,QJUHGLHQWV
7KHVWXG\RIFXOLQDU\DUWUHTXLUHVWKHXQGHUVWDQGLQJRILQJUHGLHQWVDQG
WHFKQLTXHVDVDOUHDG\H[SODLQHGLQ6HF
$VFKRODUO\GDQJHUKHUHRIFRXUVHLVWRUHGXFHWKHDQDO\VLVRIRQHWR
WKDW RI WKH RWKHU DV LV WKH FDVH ZKHQ WKH DQDO\VLV RI FRRNLQJ WHFKQLTXHV
RYHUVKDGRZV WKDW RI LQJUHGLHQWV FRQVHTXHQWO\ WKLV ERRN LV WR GHYRWH D
ZKROHFKDSWHURQHDFKZLWKWKHXQGHUVWDQGLQJRIFRXUVHWKDWWKHWZRDUH
UHODWHG
7KHLVVXHVFRQFHUQLQJLQJUHGLHQWVLQWKHVWXG\RIFXOLQDU\DUWDUHWREH
DGGUHVVHG LQ WKLV FKDSWHU &KDSWHU 7ZR ZKHUHDV WKH LVVXHV FRQFHUQLQJ
WHFKQLTXHVLQWKHVWXG\RIFXOLQDU\DUWZLOOEHDQDO\]HGLQWKHQH[WFKDSWHU
&KDSWHU7KUHH
:LWK WKLV GLDOHFWLF WUHDWPHQW LQ PLQGD JRRG ZD\ WR H[DPLQH
LQJUHGLHQWVDQGWKHLUWZLQTXDOLWLHVLQWKHVWXG\RIFXOLQDU\DUWLVE\ZD\RI
WKH HYDOXDWLRQ RI WKH H[WHQW WR ZKLFK WKH\ DUH LQ IDFW ERWK SRVVLEOH RU
LPSRVVLEOHDQGGHVLUDEOHRUXQGHVLUDEOH
7KLVFDQEHGRQHE\ ZD\RIDFRPSUHKHQVLYHDQDO\VLVRILQJUHGLHQWV
LQWKHFRQWH[WRIWKHVWXG\RIFXOLQDU\DUWIURPWKHIRXUSHUVSHFWLYHVRIWKH
PLQG QDWXUH VRFLHW\ DQG FXOWXUH LQ DFFRUGDQFH WR P\ VRSKLVWLFDWHG
PHWKRGRORJLFDOKROLVPDVH[SODLQHGLQ6HF
,Q RWKHU ZRUGV WKLV FKDSWHU LV RUJDQL]HG LQ IRXU PDLQ VHFWLRQV LQ
UHODWLRQ WR LQJUHGLHQWV DQG WKH PLQG LQJUHGLHQWV DQG QDWXUH
LQJUHGLHQWV DQG VRFLHW\ DQG LQJUHGLHQWV DQG FXOWXUHWR EH
DGGUHVVHGKHUHDIWHULQWKDWRUGHUDQGVXPPDUL]HGLQ7DEOH
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
,QJUHGLHQWVDQGWKH0LQG
,QJUHGLHQWVZKHQH[DPLQHGIURPWKHSHUVSHFWLYHRIWKHPLQGUHYHDO
WKHLUSRVVLELOLW\RULPSRVVLELOLW\DQGGHVLUDELOLW\RUXQGHVLUDELOLW\DQG
WKLVFDQEHVKRZQE\ZD\RIWZRFDVHVWXGLHVQDPHO\LQJUHGLHQWV
DSKURGLVLDFV DQG VH[XDOLW\ DQG LQJUHGLHQWV IRRG JXLGH S\UDPLG
DQGQXWULWLRQWREHDGGUHVVHGLQZKDWIROORZVUHVSHFWLYHO\
,QJUHGLHQWV$SKURGLVLDFVDQG6H[XDOLW\
$ JRRG ZD\ WR HYDOXDWH WKH SRVVLELOLW\ RU LPSRVVLELOLW\ DQG
GHVLUDELOLW\ RU XQGHVLUDELOLW\ RI LQJUHGLHQWV IURP WKH SHUVSHFWLYH RI WKH
PLQGLVWRH[SORUHLQJUHGLHQWVDSKURGLVLDFVDQGVH[XDOLW\
7KH WHUP DSKURGLVLDF UHIHUV WR D VXEVWDQFH WKDW LQFUHDVHV VH[XDO
GHVLUH 7KH QDPH FRPHV IURP $SKURGLWH WKH *UHHN JRGGHVV RI VH[XDOLW\
DQGORYH7KURXJKRXWKLVWRU\PDQ\IRRGVGULQNVDQGEHKDYLRUVKDYHKDG
D UHSXWDWLRQ IRU PDNLQJ VH[ PRUH DWWDLQDEOH DQGRU SOHDVXUDEOH :.
J
6\QWKHWLF$SKURGLVLDFV
7KHUH DUH DOO NLQGV RI DSKURGLVLDFV DQG VRPH JRRG H[DPSOHV RI
V\QWKHWLFRUQRQQDWXUDODSKURGLVLDFVDUHVKRZQEHORZDQGVXPPDUL]HG
LQ7DEOH
D$ON\O1LWULWHV
7KHILUVWNLQGRIV\QWKHWLFDSKURGLVLDFVWREHLQWURGXFHGKHUHLVDON\O
QLWULWHV
$ON\OQLWULWHVSRSSHUVDUHZHOONQRZQLQGHHGVLQFHWKH\KDYHD
ORQJ KLVWRU\ RI XVH DV D VH[XDO HQKDQFHPHQW DLG JRLQJ EDFN DERXW ILIW\
\HDUV $FFRUGLQJ WR WKH WH[W
,VREXW\O 1LWULWH DQG 5HODWHG &RPSRXQGV
PDQ\UHVHDUFKHUVDJUHHWKDWWKHDON\OQLWULWHPD\EHDWUXHDSKURGLVLDFLQ
WKHVHQVHRISURPRWLQJDQGHQKDQFLQJVH[XDOUHVSRQVH:.J
E%UHPHODQRWLGH
7KH VHFRQG NLQG RI V\QWKHWLF DSKURGLVLDFV WR EH LQWURGXFHG KHUH LV
EUHPHODQRWLGH
7KH FRPSRXQGV LQ EUHPHODQRWLGH FDQ DFWLYDWH WKH PHODQRFRUWLQ
UHFHSWRUV 0&5 DQG 0&5 LQ WKH EUDLQ DQG DUH HIIHFWLYH
DSKURGLVLDFV%UHPHODQRWLGH IRUPHUO\ NQRZQ DV 37 LV XQGHUJRLQJ
FOLQLFDO WULDOV IRU WKH WUHDWPHQW RI VH[XDO DURXVDO GLVRUGHU DQG HUHFWLOH
G\VIXQFWLRQ,WLVLQWHQGHGIRUERWKPHQDQGZRPHQ:.J
&KDSWHU,QJUHGLHQWVDQGWKHLU7ZLQ4XDOLWLHV
$QGRQ$XJXVW3DODWLQWKHFRPSDQ\GHYHORSLQJWKHGUXJ
DQQRXQFHGSRVLWLYHUHVXOWVRIDSKDVH,FOLQLFDOVWXG\ZKHUHWULDOVXEMHFWV
ZHUHLQVWHDGDGPLQLVWHUHGWKHGUXJVXEFXWDQHRXVO\3DODWLQLVFRQFXUUHQWO\
GHYHORSLQJDUHODWHGFRPSRXQGWKH\FDOO3/:.J
F0HODQRWDQ,,
7KH WKLUG NLQG RI V\QWKHWLF DSKURGLVLDFV WR EH LQWURGXFHG KHUH LV
0HODQRWDQ,,
,Q IDFW 0HODQRWDQ ,, EUHPHODQRWLGH
V SUHFXUVRU KDV EHHQ
GHPRQVWUDWHG WR KDYH DSKURGLVLDF SURSHUWLHV :. J 0 +DGOH\
'5XW]/-DURII
G&URFLQ
7KH IRXUWK NLQG RI V\QWKHWLF DSKURGLVLDFV WR EH LQWURGXFHG KHUH LV
FURFLQ
,Q D QHZ VWXG\ FURFLQ KDV GHPRQVWUDWHG WKH SURSHUWLHV RI DQ
DSKURGLVLDF LQ UDWV 7KLV LV VXSSRUWHG E\ SLORW WHVWV WKDW GHPRQVWUDWH WKH
HIILFDF\RIVDIIURQDVDQDSKURGLVLDF:.J
H3($
7KH ILIWK NLQG RI V\QWKHWLF DSKURGLVLDFV WR EH LQWURGXFHG KHUH LV
3($
3($ LV RIWHQ IRXQG LQ FKRFRODWH EXW WKHUH LV VRPH GHEDWH LQ OD\
FLUFOHV DV WR ZKHWKHU D FKHPLFDO FDOOHG SKHQ\OHWK\ODPLQH SUHVHQW LQ
FKRFRODWHLVDQDSKURGLVLDF7KHUHLVVRPHHYLGHQFHWRVXSSRUWWKHWKHRU\
WKDW SKHQHWK\ODPLQH UHOHDVH LQ WKH EUDLQ PD\ EH LQYROYHG LQ VH[XDO
DWWUDFWLRQ DQG DURXVDO EXW WKLV FRPSRXQG LV TXLFNO\ GHJUDGHG E\ WKH
HQ]\PH 0$2 DQG VR LW LV XQOLNHO\ WKDW DQ\ VLJQLILFDQW FRQFHQWUDWLRQV
ZRXOGUHDFKWKHEUDLQZKHQSKHQHWK\ODPLQHLVWDNHQRUDOO\:.J
I7HVWRVWHURQH
7KH VL[WK NLQG RI V\QWKHWLF DSKURGLVLDFV WR EH LQWURGXFHG KHUH LV
WHVWRVWHURQH
,W ZDV IRXQGWKDW OLELGRLVFOHDUO\OLQNHGWROHYHOVRIVH[ KRUPRQHV
SDUWLFXODUO\ WHVWRVWHURQH :KHQ D UHGXFHG VH[ GULYH RFFXUV LQ LQGLYLGXDOV
ZLWKUHODWLYHO\ORZOHYHOVRIWHVWRVWHURQHHJSRVWPHQRSDXVDOZRPHQRU
PHQ RYHU DJH WHVWRVWHURQH VXSSOHPHQWV ZLOO RIWHQ LQFUHDVH OLELGR
$SSURDFKHV XVLQJ D QXPEHU RI SUHFXUVRUV LQWHQGHG WR UDLVH WHVWRVWHURQH
OHYHOV KDYH EHHQ HIIHFWLYH LQ ROGHU PDOHV EXW KDYH QRW IDUHG ZHOO ZKHQ
WHVWHGRQRWKHUJURXSV:.J56KDEVLJK3*UD\*
%URZQ
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
J<RKLPELQH
7KH VHYHQWK NLQG RI V\QWKHWLF DSKURGLVLDFV WR EH LQWURGXFHG KHUH LV
\RKLPELQH
<RKLPELQH LV WKH PDLQ DONDORLG RI <RKLPEH <RKLPEH EXW QRW
<RKLPELQH LV RIWHQ SRSXODUO\ UHIHUUHG WR DV D
ZHDN 0$2 LQKLELWRU
3KDUPDFHXWLFDO SUHSDUDWLRQV RI \RKLPELQH GR QRW LQGLFDWH WKDW WKH GUXJ
ZKLFKLVDSSURYHGLQWKH86IRUWUHDWPHQWRILPSRWHQFHXQGHUVXFKEUDQG
QDPHVDV<RFRQ<RKLPH[$SKURG\QHDQG9LULWDELVDQ0$2LQKLELWRU
,WVPDLQDFWLRQLVDVDQDOSKDDGUHQHUJLFDQWDJRQLVWE\ZKLFK\RKLPELQH
PD\LQFUHDVHJHQLWDOEORRGIORZDQGERWKVH[XDOVHQVLWLYLW\DQGH[FLWDWLRQ
LQVRPHSHRSOH:.J
K2WKHU'UXJV
$QGWKHHLJKWKNLQGRIV\QWKHWLFDSKURGLVLDFVWREHLQWURGXFHGKHUHLV
RWKHUGUXJV
)RU H[DPSOH VWLPXODQWV DIIHFWLQJ WKH GRSDPLQH V\VWHP VXFK DV
FRFDLQHDQGDPSKHWDPLQHVHJ PHWKDPSKHWDPLQHDNDFU\VWDO PHWKDUH
IUHTXHQWO\ DVVRFLDWHG ZLWK K\SHUDURXVDO DQG K\SHUVH[XDOLW\ WKRXJK ERWK
PD\ LPSDLU VH[XDO IXQFWLRQLQJ SDUWLFXODUO\ ZLWK ORQJ WHUP XVH :.
J
,QDGGLWLRQVRPHGLUHFWO\DFWLQJGRSDPLQHDJRQLVWVPD\DOVRFDXVH
LQFUHDVHG OLELGR DOWKRXJK WKH\ FDQ DOVR FDXVH YDULRXV VLGH HIIHFWV
3UDPLSH[ROH LV WKH RQO\ GRSDPLQH DJRQLVW XVHG LQ PHGLFLQH DV DQ
DSKURGLVLDF DQG LV VRPHWLPHV SUHVFULEHG WR FRXQWHUDFW WKH GHFUHDVH LQ
OLELGR DVVRFLDWHG ZLWK 665, DQWLGHSUHVVDQW GUXJV 7KH ROGHU GRSDPLQH
DJRQLVW DSRPRUSKLQH KDV EHHQ XVHG IRU WKH WUHDWPHQW RI HUHFWLOH
G\VIXQFWLRQ EXW LV RI SRRU HIILFDF\ DQG KDV D WHQGHQF\ WR FDXVH QDXVHD
2WKHUGRSDPLQHDJRQLVWVVXFKDVEURPRFULSWLQHDQGFDEHUJROLQHPD\DOVR
EH DVVRFLDWHG ZLWK LQFUHDVHG OLELGR DV FDQ WKH GRSDPLQH SUHFXUVRU /
'RSDEXWWKLVLVRIWHQSDUWRIDVSHFWUXPRIVLGHHIIHFWVZKLFKFDQLQFOXGH
PRRGVZLQJVDQGSUREOHPJDPEOLQJDQGVRWKHVHGUXJVDUHQRWSUHVFULEHG
IRUWKLVSXUSRVH:.J
1DWXUDO$SKURGLVLDFV
%HVLGHV V\QWKHWLF RU QRQQDWXUDO DSKURGLVLDFV DV VKRZQ DERYH
WKHUHDUHDOVRQDWXUDODSKURGLVLDFV
)RULQVWDQFHVRPHQDWXUDOLWHPVDUHFODLPHGWREHDSKURGLVLDFVZKHQ
LQJHVWHGRUDSSOLHGWRWKHERG\$IHZRIWKHVHVXFKDV(SLPHGLXPKDYH
VLJQLILFDQW VFLHQWLILF SURRI RI HIIHFW 7KHVH PD\ DIIHFW KRUPRQH OHYHOV
7HVWRVWHURQHDFWDVSGHLQKLELWRUV,FDULLQLQFUHDVHQLWULFR[LGH&LWUXOOLQH
RU DIIHFW QHXURWUDQVPLWWHUV 'RSDPLQH 0RVW VXFK HIIHFWV DUH ZHDN DQG
&KDSWHU,QJUHGLHQWVDQGWKHLU7ZLQ4XDOLWLHV
PD\ UHTXLUH XVH RYHU D SHULRG RI WLPH DQGRU FRQVXPSWLRQ RI ODUJH
TXDQWLWLHV WR DFKLHYH WKH GHVLUHG UHVXOW 7KHVH VKRXOG EH WDNHQ ZLWK FDUH
VLQFHVHYHUDORIWKHPPD\GLUHFWO\LPSDFWSUHVFULSWLRQPHGLFDWLRQVWDNHQ
IRURWKHUFRQGLWLRQV:.J
,Q RWKHUV D IHZ RI WKHVH QDWXUDO DSKURGLVLDFV H[KLELW V\QHUJ\ )RU
H[DPSOH FLWUXOOLQH IURP ZDWHUPHORQ D ZHDN QLWULF R[LGH VWLPXODWRU
EHFRPHVVLJQLILFDQWO\PRUHHIIHFWLYHZKHQFRPELQHGZLWK(SLGHPLXPD
QDWXUDOSGHLQKLELWRUDQG0DFDZHDNGRSDPLQHLQKLELWRUDQGVHUDWRQLQ
VWLPXODWRU:.J
3UREOHPVZLWKWKH6WXG\RI$SKURGLVLDFVDQG6H[XDOLW\
+RZHYHUIRUWKHFULWLFVWKLVVWXG\RIDSKURGLVLDFVDQGVH[XDOLW\KDV
VRPHPDMRUSUREOHPV&RQVLGHUIRULOOXVWUDWLRQDIHZH[DPSOHVEHORZDV
VXPPDUL]HGLQ7DEOH
)LUVWO\RQHPDLQFULWLFLVPRIWKHVWXG\RIDSKURGLVLDFVDQGVH[XDOLW\
LVWKDWWKHDOOHJHGUHVXOWVDUHTXHVWLRQDEOH
)RUH[DPSOHIURPDKLVWRULFDODQGVFLHQWLILFVWDQGSRLQWWKHDOOHJHG
UHVXOWV PD\ KDYHEHHQ PDLQO\GXH WR PHUHEHOLHIE\WKHLUXVHUVWKDWWKH\
ZRXOGEHHIIHFWLYHLHWKHSODFHERHIIHFW,QSDUWLFXODU:HVWHUQPHGLFDO
VFLHQFH KDV QR VXEVWDQWLDWHG FODLPV WKDW DQ\ SDUWLFXODU IRRG LQFUHDVHV
VH[XDOGHVLUHRUSHUIRUPDQFH:.J
6HFRQGO\ DQRWKHU PDLQ FULWLFLVP RI WKH VWXG\ RI DSKURGLVLDFV DQG
VH[XDOLW\ LV WKDW LW LV PRUH SV\FKRORJLFDO LQ UHODWLRQ WR WKH H[WHUQDO
DSSHDUDQFHRIWKHGUXJVWKDQHIIHFWLYHLQUHODWLRQWRWKHFKHPLFDOSRWHQF\
RIWKHGUXJVWKHPVHOYHV
)RU LQVWDQFH IRU WKH FULWLFV VRPH SXUSRUWHG DSKURGLVLDFV JDLQ WKHLU
UHSXWDWLRQIURPWKHSULQFLSOHVRIV\PSDWKHWLFPDJLFIRUH[DPSOHR\VWHUV
GXHWRWKHLUVKDSH:.J
$QG WKLUGO\ VWLOO DQRWKHU PDLQ FULWLFLVP RI WKH VWXG\ RI DSKURGLVLDFV
DQGVH[XDOLW\LVWKDWDSKURGLVLDFVFDQKDYHQHJDWLYHVLGHHIIHFWV
)RU LQVWDQFH DOWKRXJK UHVXOWV KDYH SURYHQ WKH HIILFDF\ RI
EUHPHODQRWLGHWKHGHYHORSPHQWRIWKHGUXJ ZDVVXVSHQGHGGXHWRD
VLGHHIIHFWRILQFUHDVHGEORRGSUHVVXUHREVHUYHGLQDVPDOOQXPEHURIWULDO
VXEMHFWVZKRDGPLQLVWHUHGWKHGUXJLQWUDQDVDOO\:.J37,
$QG LQ WKH FDVH RI \RKLPELQH VLGH HIIHFWV FDQ LQFOXGH UDSLG SXOVH
VZHDWLQJ DQG DQ[LHW\ UHDFWLRQV LQ VXVFHSWLEOH SHRSOH 3KDUPDFHXWLFDO
SUHSDUDWLRQV RI \RKLPELQH FDQ DOVR SURGXFH WKHVH VLGH HIIHFWV DW KLJKHU
GRVHV EXW DUH DYDLODEOH LQ VWDQGDUGL]HG GRVHV ZKLFK DOORZ WKH SDWLHQW WR
GRVHLQDFRQWUROOHGIDVKLRQ:.J$$GHQL\L9.RYDOHY
1HJDWLYHVLGHHIIHFWVDOVRH[LVWLQRWKHUGUXJVDVLQGLFDWHGHDUOLHU
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
%H\RQG$SKURGLVLDFV
7KHVH FULWLFLVPV RI WKH XVH RI DSKURGLVLDFV VKRXOG QRW EH
PLVXQGHUVWRRGDVDWRWDOUHMHFWLRQRIWKHLUXVHIXOQHVVEXWVHUYHWRVKRZXV
WKH WZR RSSRVLQJ VLGHV RI WKH GHEDWH VXFK WKDW WKH SRVVLELOLW\ RU
LPSRVVLELOLW\DQGGHVLUDELOLW\RUXQGHVLUDELOLW\RIDSKURGLVLDFVIURPWKH
SHUVSHFWLYHRIWKHPLQGZLWKLQJUHGLHQWVDSKURGLVLDFVDQGVH[XDOLW\DVD
FDVHVWXG\KHUHDUHQRWWRWKHH[WHQWWKDWWKHUHVSHFWLYHGHIHQGHUVZRXOG
OLNHXVWREHOLHYH
)XUWKHUPRUHWKHDQDO\VLVRILQJUHGLHQWVDSKURGLVLDFVDQGVH[XDOLW\
FDQ WHDFK XV VRPHWKLQJ LPSRUWDQW DERXW WKH RQWRORJLFDO SULQFLSOHV LQ
H[LVWHQWLDO GLDOHFWLFV DQG JRRG H[DPSOHV LQFOXGH WKH IRUPDOQHVV
LQIRUPDOQHVV SULQFLSOH WKH DEVROXWHQHVVUHODWLYHQHVV SULQFLSOH WKH
SDUWLDOLW\WRWDOLW\ SULQFLSOH WKH SUHGLFWDELOLW\XQSUHGLFWDELOLW\ SULQFLSOH
WKH H[SOLFDELOLW\LQH[SOLFDELOLW\ SULQFLSOH WKH ILFWLRQUHDOLW\ SULQFLSOH WKH
ILQLWHQHVVWUDQVILQLWHQHVV SULQFLSOH WKH SUHFLVHQHVVYDJXHQHVV SULQFLSOH
WKH VLPSOHQHVVFRPSOLFDWHGQHVV SULQFLSOH WKH RSHQQHVVKLGGHQQHVV
SULQFLSOH WKH GHQVHQHVVHPSWLQHVV SULQFLSOH WKH FKDQJHFRQVWDQF\
SULQFLSOHWKHRUGHUFKDRVSULQFLSOHWKHVORZQHVVTXLFNQHVVSULQFLSOHWKH
H[SDQVLRQFRQWUDFWLRQ SULQFLSOH WKH WKHRU\SUD[LV SULQFLSOH WKH
FRQYHQWLRQQRYHOW\ SULQFLSOH WKH HYROXWLRQWUDQVIRUPDWLRQ SULQFLSOH WKH
V\PPHWU\DV\PPHWU\ SULQFLSOH WKH VRIWQHVVKDUGQHVV SULQFLSOH WKH
VHULRXVQHVVSOD\IXOQHVV SULQFLSOH WKH DFWLYHQHVVLQDFWLYHVV SULQFLSOH WKH
VHOIQHVVRWKHUQHVV SULQFLSOH WKH UHJUHVVLRQSURJUHVVLRQ SULQFLSOH WKH
VDPHGLIIHUHQFH SULQFLSOH WKH VWDELOLW\UHDFWLRQ SULQFLSOH DQG WKH
IXQFWLRQDOLW\QRQIXQFWLRQDOLW\SULQFLSOH
)RU LQVWDQFH LQ UHODWLRQ WR WKH IRUPDOQHVVLQIRUPDOQHVV SULQFLSOH LI
WKHUHLVIRUPDOQHVVHJWKHIRUPDOORJLFDOUHTXLUHPHQWRIVRXQGQHVVDQG
FRPSOHWHQHVV LQ D V\VWHP RI LGHDV DV LQ WKH VWXG\ RI DSKURGLVLDFV DQG
VH[XDOLW\ WKHUH LV LQIRUPDOQHVV HJ WKH QRQIRUPDO H[LVWHQFH RI
XQVRXQGQHVV DQG LQFRPSOHWHQHVV LQ WKH VWXG\ RI DSKURGLVLDFV DQG
VH[XDOLW\ DV VKRZQ LQ WKH FULWLFLVPV WKDW WKH DOOHJHG UHVXOWV DUH
TXHVWLRQDEOH WKDW DSKURGLVLDFV FDQ KDYH QHJDWLYH VLGHHIIHFWV HWF $QG
WKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH DEVROXWHQHVVUHODWLYHQHVV SULQFLSOH LI WKHUH LV
DEVROXWHQHVVHJWKHDEVROXWHSHUFHSWLRQDVVKRZQWKURXJKRXWKLVWRU\
ZKHQ PDQ\ IRRGV GULQNV DQG EHKDYLRUV KDYH KDG D UHSXWDWLRQ IRU
PDNLQJ VH[ PRUH DWWDLQDEOH DQGRU SOHDVXUDEOH WKHUH LV UHODWLYHQHVV
HJZKDWLVULJKWIRUWKHSRSXODUSHUFHSWLRQWKURXJKRXWKLVWRU\ZKHQ
PDQ\IRRGVGULQNVDQGEHKDYLRUVKDYHKDGDUHSXWDWLRQIRUPDNLQJVH[
PRUH DWWDLQDEOH DQGRU SOHDVXUDEOH LV QRW QHFHVVDULO\ VR IRU :HVWHUQ
PHGLFDO VFLHQFH ZKLFK KDV QR VXEVWDQWLDWHG FODLPV WKDW DQ\ SDUWLFXODU
&KDSWHU,QJUHGLHQWVDQGWKHLU7ZLQ4XDOLWLHV
IRRG LQFUHDVHV VH[XDO GHVLUH RU SHUIRUPDQFH :. J $QG WKH
UHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHSDUWLDOLW\WRWDOLW\SULQFLSOHLIWKHUHLVSDUWLDOLW\HJ
WKH SDUWLDO YLHZ RI 3DODWLQ WKH FRPSDQ\ GHYHORSLQJ WKH GUXJ
%UHPHODQRWLGHLQUHJDUGWRLWVHIIHFWVRQVH[XDOLW\WKHUHLVWRWDOLW\HJ
WKH PRUH KROLVWLF YLHZ RI %UHPHODQRWLGH VXFK WKDW WKH ZKROH LV QRW WKH
VXPRILWVSDUWVWKDWLVLWFDQQRWEHUHGXFHGWRWKHVXPRIRSSRVLQJYLHZV
E\3DODWLQDQGLWVFULWLFVVLQFHWKHUHZLOOHPHUJHQHZYLHZVLQWKHIXWXUH
QRW\HWNQRZQWRGD\MXVWDVWKHUHDUHDOUHDG\QHZUHVXOWVDERXWWKHVLGH
HIIHFWV QRW NQRZQDWWKHWLPHDQGDOWHUQDWLYHGUXJV QRZDYDLODOEOH $QG
WKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH SUHGLFWDELOLW\XQSUHGLFWDELOLW\ SULQFLSOH LI WKHUH LV
SUHGLFWDELOLW\ HJ WKH SUHGLFWDEOH WHQGHQF\ RI D GUXJ FRPSDQ\ OLNH
3DODWLQWRSURPRWHWKHDSKURGLVLDFVWKDWLW VHOOVWKHUHLV XQSUHGLFWDELOLW\
HJ WKH PRUH GLIILFXOW WDVN WR SUHGLFW H[DFWO\ WKH H[WHQW WR ZKLFK D
SDUWLFXODUGUXJOLNH%UHPHODQRWLGHLVHIIHFWLYHDWDJLYHQWLPHDVVKRZQLQ
WKHH[DPSOHWKDWLWVHYHORSPHQWZDVVXVSHQGHGLQEXWDEHWWHUUHVXOW
ZDVWHVWHGLQ$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH H[SOLFDELOLW\LQH[SOLFDELOLW\ SULQFLSOH LI WKHUH LV
H[SOLFDELOLW\HJWKHH[SODQDWLRQRIWKHGHVLUDELOLW\RI\RKLPELQHRQWKH
EDVLV RI LWV HIIHFWLYHQHVV E\ WKH DGYRFDWHV WKHUH LV LQH[SOLFDELOLW\ HJ
WKH ODFN RI VXIILFLHQW H[SODQDWLRQ RI ZK\ \RKLPELQH LV QHFHVVDULO\
HIIHFWLYH E\ WKH DGYRFDWHV VLQFH WKHUH DUH VLGH HIIHFWV ZKLFK FDQ
LQFOXGH UDSLG SXOVH VZHDWLQJ DQG DQ[LHW\ UHDFWLRQV LQ VXVFHSWLEOH
SHRSOH$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH ILFWLRQUHDOLW\ SULQFLSOH LI WKHUH LV ILFWLRQ HJ WKH
ILFWLRQDO DVSHFW RI DSKURGLVLDFV LQVRIDU DV WKH DOOHJHG UHVXOWV PD\ KDYH
EHHQPDLQO\GXHWRPHUHEHOLHIE\WKHLUXVHUVWKDWWKH\ZRXOGEHHIIHFWLYH
>LH WKH SODFHER HIIHFW@ WKHUH LV UHDOLW\ HJ WKH UHDOLVWLF DVSHFW RI
DSKURGLVLDFV LQVRIDU DV WKURXJKRXW KLVWRU\ PDQ\ IRRGV GULQNV DQG
EHKDYLRUV KDYH KDG D UHSXWDWLRQ IRU PDNLQJ VH[ PRUH DWWDLQDEOH DQGRU
SOHDVXUDEOH$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH ILQLWHQHVVWUDQVILQLWHQHVV SULQFLSOH LI WKHUH LV
ILQLWHQHVVHJWKHILQLWHQXPEHURIWKHFDWHJRULHVRIDSKURGLVLDFVOLNHWKH
V\QWKHWLF DQG QDWXUDO NLQGV WKHUH LV WUDQVILQLWHQHVV HJ WKH WUDQVILQLWH
QXPEHU RI DOO WKH LQGLYLGXDO SLHFHV RI DSKURGLVLDFV LQ KLVWRU\ WKDW KDYH
HYHUEHHQXVHGE\KXPDQV$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH SUHFLVHQHVVYDJXHQHVV SULQFLSOH LI WKHUH LV
SUHFLVHQHVV HJ WKH SUHFLVH LGHQWLILFDWLRQ RI NLQGV RI V\QWKHWLF
DSKURGLVLDFV LQ WKH DUWLFOH DIRUHFLWHG WKHUH LV YDJXHQHVV HJ WKH
YDJXHQHVVLQWKHLGHQWLILFDWLRQRIWKHNLQGVRIV\QWKHWLFDSKURGLVLDFVLQ
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
WKHDUWLFOHDIRUHFLWHGVLQFHLWLVQRWFOHDUZK\WKHUHPXVWEHRQO\QRW
DQGVRRQ$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH VLPSOHQHVVFRPSOLFDWHGQHVV SULQFLSOH LI WKHUH LV
VLPSOHQHVV HJ WKH UHODWLYHO\ VLPSOH DQDO\VLV RI WKH DSSHDO RI
DSKURGLVLDFVE\LWVDGYRFDWHVWKHUHLVFRPSOLFDWHGQHVVHJWKHUHODWLYHO\
PRUHFRPSOLFDWHGDQDO\VLVRIDSKURGLVLFDVE\FKDOOHQJLQJWKHFODLPVDQG
DVVXPSWLRQVDVVKRZQLQWKHSUREOHPVSRLQWHGRXWE\WKHFULWLFVDVFLWHG
$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHRSHQQHVVKLGGHQQHVVSULQFLSOHLIWKHUHLVRSHQQHVV
HJWKHRSHQH[SORUDWLRQRIWKHLPSDFWRIDSKURGLVLDFVRQVH[XDOLW\E\LWV
DGYRFDWHV WKHUH LV KLGGHQQHVV HJ WKH KLGGHQ ELDV LQ WKH FODLP RI WKH
LPSDFW RI DSKURGLVLDFV RQ VH[XDOLW\ E\ LWV DGYRFDWHV EHFDXVH RI WKH
H[LVWHQFHRI QHJDWLYHVLGHHIIHFWVDQGTXHVWLRQDEOHUHVXOWVSRLQWHGRXWE\
WKHFULWLFV$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHGHQVHQHVVHPSWLQHVVSULQFLSOHLIWKHUHLVGHQVHQHVV
HJWKHUHODWLYHO\GHQVHUFRQFHQWUDWLRQRIVH[KRUPRQHVLQPHQZKRDUH
\RXQJ DQG KHDOWK\ WKHUH LV HPSWLQHVV HJ WKH UHODWLYHO\ OHVV GHQVH RU
PRUH HPSW\ FRQFHQWUDWLRQ RI VH[ KRUPRQHV LQ PHQ ZKR DUH RYHU DJH
ZLWKRXWDQ\UHOLDQFHRQDSKURGLVLDFV$QGWKHUHYHUVHGLUHFWLRQDOVR
KROGVWUXH
,QUHODWLRQWRWKHFKDQJHFRQVWDQF\SULQFLSOHLIWKHUHLVFKDQJHHJ
WKH HYHU QHZ ZD\V WR LQFUHDVH VH[XDO SOHDVXUH DV VKRZQ LQ WKH XVH RI
DSKURGLVLDFV WKHUH LV FRQVWDQF\ HJ WKH HYHU FRQVWDQW H[LVWHQFH RI
GLIIHUHQW SUREOHPV LQ WKH HYHU QHZ ZD\V WR LQFUHDVH VH[XDO SOHDVXUH DV
VKRZQ LQ WKH SUREOHPV ZLWK WKH XVH RI DSKURGLVLFDV SRLQWHG RXW E\ WKH
FULWLFV$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHRUGHUFKDRVSULQFLSOHLIWKHUHLVRUGHUHJWKHPRUH
RU OHVV RUGHUO\ QDWXUH RI QDWXUDO DSKURGLVLDFV OLNH (SLPHGLXP ZKLFK
KDVVLJQLILFDQWVFLHQWLILFSURRIRIHIIHFWWKHUHLVFKDRVHJWKHPRUHRU
OHVVFKDRWLFQDWXUHRIPDQ\QDWXUDODSKURGLVLDFVVROGRQOLQHQRZDGD\V
ZLWK WKHLU TXHVWLRQDEOH PDUNHWLQJ FODLPV VLQFH PDQ\ RI WKHVHDUH
UHPRYHG IURP WKH PDUNHW E\ WKH )'$ ZKHQ IRXQG $QG WKH UHYHUVH
GLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH VORZQHVVTXLFNQHVV SULQFLSOH LI WKHUH LV VORZQHVV
HJ WKH UHODWLYHO\ VORZHU VSHHG RI WKH HIIHFWLYHQHVV RI QDWXUDO
DSKURGLVLDFV OLNH FLWUXOOLQH IURP ZDWHUPHORQ ZKLFK LV D ZHDN QLWULF
R[LGHVWLPXODWRUWKHUHLVTXLFNQHVVHJWKHUHODWLYHO\TXLFNHUVSHHGRI
WKH HIIHFWLYHQHVV RI QDWXUDO DSKURGLVLDFV OLNH FLWUXOOLQH IURP
ZDWHUPHORQZKHQ FRPELQHG ZLWK (SLGHPLXP >D QDWXUDO SGH LQKLELWRU@
DQG 0DFD >GRSDPLQH LQKLELWRU DQG VHUDWRQLQ VWLPXODWRU@ :. J
$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
&KDSWHU,QJUHGLHQWVDQGWKHLU7ZLQ4XDOLWLHV
,QUHODWLRQWRWKHH[SDQVLRQFRQWUDFWLRQSULQFLSOHLIWKHUHLVH[SDQVLRQ
HJWKHUHODWLYHH[SDQVLRQRIWKHSHQLVGXULQJHUHFWLRQHVSHFLDOO\ZKHQ
KHOSHG E\ DQWLHUHFWLOH G\VIXQFWLRQ GUXJV VXFK DV 9LDJUD DQG /HYLWUD
WKHUHLVFRQWUDFWLRQHJWKHUHODWLYHVKULQNDJHRIWKHSHQLVDIWHUHUHFWLRQ
HVSHFLDOO\ ZLWKRXW DQ\ KHOS RI DQWLHUHFWLOH G\VIXQFWLRQ GUXJV VXFK DV
9LDJUDDQG/HYLWUD$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH WKHRU\SUD[LV SULQFLSOH LI WKHUH LV WKHRU\ HJ WKH
WKHRUHWLFDO FRQVWUXFWLRQ RI PHWKDPSKHWDPLQH LQ FKHPLVWU\ WKHUH LV
SUD[LV HJ WKH SUDFWLFDO DSSOLFDWLRQ RI WKH WKHRUHWLFDO FRQVWUXFWLRQ RI
PHWKDPSKHWDPLQH LQ FKHPLVWU\ WR WKH ILHOG RI VH[XDOLW\ VLQFH
VWLPXODQWV DIIHFWLQJ WKH GRSDPLQH V\VWHP VXFK DV FRFDLQH DQG
DPSKHWDPLQHV >OLNH PHWKDPSKHWDPLQH@ DUH IUHTXHQWO\ DVVRFLDWHG
ZLWKK\SHUVH[XDOLW\$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHFRQYHQWLRQQRYHOW\SULQFLSOHLIWKHUHLVFRQYHQWLRQ
HJ WKH FRQYHQWLRQDO ZLVGRP DERXW WKH XVH RI QDWXUDO DSKURGLVLDFV IRU
VH[XDOLW\ WKHUH LV QRYHOW\ HJ WKH DOWHUQDWLYH QRYHO FKDOOHQJH WR WKH
FRQYHQWLRQDO ZLVGRP DERXW WKH XVH RI QDWXUDO DSKURGLVLDFV IRU VH[XDOLW\
E\WKHQHZLGHDRIXVLQJV\QWKHWLFRUQRQQDWXUDODSKURGLVLDFVLQPRGHUQ
WLPHV ZLWK WKH ODWHVW H[DPSOHV OLNH WKH XVH RI 9LDJUD $QG WKH UHYHUVH
GLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH HYROXWLRQWUDQVIRUPDWLRQ SULQFLSOH LI WKHUH LV
HYROXWLRQHJWKHQDWXUDOHYROXWLRQRIPDOHVWRKDYHHUHFWLRQLQWKHVWDWH
RI QDWXUH WKHUH LV WUDQVIRUPDWLRQ HJ WKH WHFKQLFDO WUDQVIRUPDWLRQ RI
PDOHV WR KDYH HUHFWLRQ E\ WKH LQYHQWLRQ RI 9LDJUD DQG /HYLWUD $QG WKH
UHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHV\PPHWU\DV\PPHWU\SULQFLSOHLIWKHUHLVV\PPHWU\
HJ WKH H[LVWHQFH RI GLIIHUHQW ZD\V WR KDYH VH[XDO HUHFWLRQ WKHUH LV
DV\PPHWU\HJWKHDSSHDORIKDYLQJQDWXUDOHUHFWLRQLQWKHROGHUGD\V
EXW WKH SRSXODULW\ RI KDYQJ VH[XDO HUHFWLRQ ZLWK WKH KHOS RI 9LDJUD
QRZDGD\V$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHVRIWQHVVKDUGQHVVSULQFLSOHLIWKHUHLVVRIWQHVVHJ
WKH UHODWLYH VRIWQHVV RI WKH SHQLV LQ WKH VWDWH RI VKULQNDJH DIWHU HUHFWLRQ
WKHUH LV KDUGQHVV HJ WKH UHODWLYH KDUGQHVV RI WKH SHQLV LQ WKH VWDWH RI
HUHFWLRQ HVSHFLDOO\ ZLWK WKH KHOS RI 9LDJUD $QG WKH UHYHUVH GLUHFWLRQ
DOVRKROGVWUXH
,Q UHODWLRQ WR WKH VHULRXVQHVVSOD\IXOQHVV SULQFLSOH LI WKHUH LV
VHULRXVQHVV HJ WKH VHULRXVQHVV RI WKRVH LQGLYLGLXDOV ZKHQ WKH\ GR QRW
XVH DSKURGLVLDFV DQG DUH LQ D VREHU VWDWH ZLWKRXW VH[XDOLW\ WKHUH LV
SOD\IXOQHVVHJWKHSOD\IXOSDUWRIWKRVHLQGLYLGXDOVZKHQVWLPXODWHGE\
DSKURGLVLDFV$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
,QUHODWLRQWRWKHDFWLYHQHVVLQDFWLYHVVSULQFLSOHLIWKHUHLVDFWLYHQHVV
HJWKHK\SHUDOHUWQHVVRIWKRVHZKRDUHVWLPXODWHGE\DSKURGLVLDFVOLNH
FRFDLQHZKLFKLVDVVRFLDWHGZLWKK\SHUDURXVDOWKHUHLVLQDFWLYHQHVVHJ
WKH UHODWLYH LQDFWLYHQHVV RI WKRVH ZKR DUH WLUHG DIWHU K\SHUVH[XDOLW\ DQG
WKHQIDOODVOHHS
,QUHODWLRQWRWKHVHOIQHVVRWKHUQHVVSULQFLSOHLIWKHUHLVVHOIQHVVHJ
WKHWHQGHQF\WREHPRVWO\FHQWHUHGRQRQHVVHOIRUJURXSDVVKRZQLQWKH
XVHRIDSKURGLVLDFVOLNH9LDJUDWRVXVWDLQHUHFWLRQWKHUHLVRWKHUQHVVHJ
WKH WHQGHQF\ WR EH PRVWO\ FHQWHUHG RQ RWKHUV DV VKRZQ LQ WKH VWXGLHV
DERXW WKH QHJDWLYH VLGHHIIHFWV RI DSKURGLVLDFV E\ UHVHDUFKHUV LQ WKH
PHGLFDOFRPPXQLW\IRUWKHDGYDQFHPHQWRIPHGLFDONQRZOHGJH$QGWKH
UHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH UHJUHVVLRQSURJUHVVLRQ SULQFLSOH LI WKHUH LV
UHJUHVVLRQ HJ WKH UHJUHVVLRQ PDGH E\ DSKURGLVLDFV DV VKRZQ LQ WKH
SUREOHPVSRLQWHGRXWE\WKHFULWLFVWKHUHLVSURJUHVVLRQHJWKHSURJUHVV
PDGH E\ DSKURGLVLDFV DV VKRZQ LQ WKHLU FRQWULEXWLRQ WR VH[XDOLW\
DIRUHFLWHG$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH VDPHGLIIHUHQFH SULQFLSOH LI WKHUH LV VLPLODULW\ LQ
RXWFRPH HJ WKH FRQWULEXWLRQ WR WKH PROGLQJ DQG FRQWURO RI EHOLHIV
YDOXHV DQG EHKDYLRUV UHJDUGOHVV RI ZKHWKHU WKLV EH GRQH E\ WKH XVH RI
QDWXUDO DSKURGLVLDFV RU E\ WKH XVH RI V\QWKHWLF DSKURGLVLDFV WKHUH LV
GLIIHUHQFHLQRXWFRPHHJWKHFRQWULEXWLRQWRWKHPROGLQJDQGFRQWURORI
EHOLHIV YDOXHV DQG EHKDYLRUV E\ WKH XVH RI QDWXUDO DSKURGLVLDFV IRU D
UHODWLYHO\PRUHQDWXUDOLVWLFOLIHZRUOGEXWWKHFRQWULEXWLRQWRWKHPROGLQJ
DQG FRQWURO RI EHOLHIV YDOXHV DQG EHKDYLRUV E\ WKH XVH RI V\QWKHWLF
DSKURGLVLDFVIRUDUHODWLYHO\PRUHWHFKQRSKLOLFOLIHZRUOG$QGWKHUHYHUVH
GLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHVWDELOLW\UHDFWLRQSULQFLSOHLIWKHUHLVVWDELOLW\HJ
WKH UHODWLYHO\ PRUH VWDEOH FRQGLWLRQ RI WKH XVH RI QDWXUDO DSKURGLVLDFV LQ
WKH ROGHU GD\V WKHUH LV UHDFWLRQ HJ WKH UHODWLYH XVH RI QDWXUDO
DSKURGLVLDFV LQ WKH ROGHU GD\V WKHQ OHG WR IXUWKHU FKDQJHV ODWHU RQ ZKHQ
QRZDGD\V PRUH DQG PRUH V\QWKHWLF DSKURGLVLDFV DUH XVHG LQVWHDG $QG
WKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
$QGLQUHODWLRQWRWKHIXQFWLRQDOLW\QRQIXQFWLRQDOLW\SULQFLSOHLIWKHUH
LV IXQFWLRQDOLW\ HJ WKH SUHVHQFH RI DFWLRQ IRU ZKLFK VRPHWKLQJ RU
VRPHRQHLVILWWHGDVVKRZQLQWKHXVHRIDSKURGLVLDFVIRUVH[XDOLW\WKHUH
LVQRQIXQFWLRQDOLW\HJWKHUHODWLYHODFNRIDFWLRQIRUZKLFKVRPHWKLQJRU
VRPHRQH LV ILWWHG DV VKRZQ LQ WKH RFFXUUHQFH RI WKH SODFHER HIIHFW LQ
FHUWDLQ FDVHV DERXW WKH HIIHFWLYHQHVV RI DSKURGLVLDFV $QG WKH UHYHUVH
GLUHFWLRQDOVRKROGVWUXH
&KDSWHU,QJUHGLHQWVDQGWKHLU7ZLQ4XDOLWLHV
,QJUHGLHQWV)RRG*XLGH3\UDPLGDQG1XWULWLRQ
$QRWKHU ZD\ WR HYDOXDWH WKH SRVVLELOLW\ RU LPSRVVLELOLW\ DQG
GHVLUDELOLW\ RU XQGHVLUDELOLW\ RI LQJUHGLHQWV IURP WKH SHUVSHFWLYH RI WKH
PLQGLVWRH[SORUHLQJUHGLHQWVIRRGJXLGHS\UDPLGDQGQXWULWLRQ
7KH WHUP IRRG JXLGH S\UDPLG UHIHUV WR D WULDQJXODU RU S\UDPLG
VKDSHG QXWULWLRQ JXLGH GLYLGHG LQWR VHFWLRQV WR VKRZ WKH UHFRPPHQGHG
LQWDNHIRUHDFKIRRGJURXS:.S
'LIIHUHQW,QWHUSUHWDWLRQVRI)RRG*XLGH3\UDPLG
+RZHYHU WKHUH DUH VHYHUDO LQWHUSUHWDWLRQV RI IRRG JXLGH S\UDPLG
ZKLFK UHVXOW LQ WKH GHYHORSPHQW RYHU WLPH RI GLIIHUHQW YHUVLRQV RI IRRG
JXLGHS\UDPLGDVVKRZQEHORZDQGVXPPDUL]HGLQ7DEOH
D7KH6FDQGLQDYLDQ9HUVLRQ
7KH ILUVW YHUVLRQ RI IRRG JXLGH S\UDPLG WR EH LQWURGXFHG KHUH LV
6FDQGLQDYLDQLQRULJLQ
,QWKHILUVWIRRGS\UDPLGZDVSXEOLVKHGLQ6ZHGHQDVDUHVXOW
RIKLJKIRRGSULFHVLQZKLFKOHGWKH6ZHGHQ
V1DWLRQDO%RDUGRI
+HDOWK DQG :HOIDUH WR GHYHORS WKH LGHD RI
EDVLF IRRGV
WKDW ZHUH ERWK
FKHDSDQGQXWULWLRXVDQG
VXSSOHPHQWDOIRRGV
WKDWDGGHGQXWULWLRQPLVVLQJ
IURPWKHEDVLFIRRGV:.S
,Q IDFW $QQD %ULWW $JQVlWHU KHDG RI WKH WHVW NLWFKHQ DW .) D
FRQVXPHUFRRSWKDW ZRUNHG ZLWKWKH%RDUGKHOGDOHFWXUHWKHQH[W \HDU
RQKRZWRLOOXVWUDWHWKHVHIRRGJURXSV$WWHQGHH)MDODU&OHPHVVXJJHVWHGD
WULDQJOH GLVSOD\LQJ EDVLF IRRGV DW WKH EDVH $JQVlWHU GHYHORSHG WKH LGHD
LQWRWKHILUVWIRRGS\UDPLGZKLFKZDVLQWURGXFHGWRWKHSXEOLFLQLQ
.)
V9LPDJD]LQH:.S
,QWKLVILUVWYHUVLRQWKHS\UDPLGZDVGLYLGHGLQWREDVLFIRRGVDWWKH
EDVH LQFOXGLQJ PLON FKHHVH PDUJDULQH EUHDG FHUHDOV DQG SRWDWRHV D
ODUJH VHFWLRQ RI VXSSOHPHQWDO YHJHWDEOHV DQG IUXLW DQG DQ DSH[ RI
VXSSOHPHQWDO PHDW ILVK DQG HJJV 7KH S\UDPLG FRPSHWHG ZLWK WKH
1DWLRQDO %RDUG
V
GLHWDU\ FLUFOH
ZKLFK .) VDZ DV SUREOHPDWLF IRU
UHVHPEOLQJ D FDNH GLYLGHG LQWR VHYHQ VOLFHV DQG IRU QRW LQGLFDWLQJ KRZ
PXFKRIHDFKIRRGVKRXOGEHHDWHQ:KLOHWKH%RDUGGLVWDQFHGLWVHOIIURP
WKH S\UDPLG .) FRQWLQXHG WR SURPRWH LW DQG IRRG S\UDPLGV ZHUH
GHYHORSHGLQRWKHU6FDQGLQDYLDQFRXQWULHV:.S
E7KH:+2)$29HUVLRQ
7KHVHFRQGYHUVLRQRIIRRGJXLGHS\UDPLGWREHLQWURGXFHGKHUHZDV
MRLQWO\GHYHORSHGE\:+2DQG)$2LQRULJLQ
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
,Q WKH :RUOG +HDOWK 2UJDQL]DWLRQ LQ FRQMXQFWLRQ ZLWK WKH
)RRG DQG $JULFXOWXUH 2UJDQL]DWLRQ SXEOLVKHG JXLGHOLQHV WKDW FDQ
HIIHFWLYHO\ EH UHSUHVHQWHG LQ D IRRG S\UDPLG UHODWLQJ WR REMHFWLYHV WR
SUHYHQWREHVLW\FKURQLFGLVHDVHVDQGGHQWDOFDULHVEDVHGRQPHWDDQDO\VLV
WKRXJK WKH\ UHSUHVHQW LW DV D WDEOH UDWKHU WKDQ D
S\UDPLG
:. S
:+2
,Q WKLV S\UDPLG WKH VWUXFWXUH LV VLPLODU LQ VRPH UHVSHFWV WR WKH
86'$IRRGS\UDPLGEXWWKHUHDUHFOHDUGLVWLQFWLRQVEHWZHHQW\SHVRIIDWV
DQGDPRUHGUDPDWLFGLVWLQFWLRQZKHUHFDUERK\GUDWHVDUHVSOLWRQWKHEDVLV
RI IUHH VXJDUV YHUVXV VXJDUV LQ WKHLU QDWXUDO IRUP 6RPH IRRG VXEVWDQFHV
DUHVLQJOHGRXWGXHWRWKHLPSDFWRQWKHWDUJHWLVVXHVWKH
S\UDPLG
LVPHDQW
WR DGGUHVV ZKLOH LQ D ODWHU UHYLVLRQ VRPH UHFRPPHQGDWLRQV DUH RPLWWHG
VLQFHWKH\IROORZ DXWRPDWLFDOO\ IURPRWKHUUHFRPPHQGDWLRQV ZKLOHRWKHU
VXEFDWHJRULHVDUHDGGHG7KHUHSRUWVTXRWHGKHUHH[SODLQWKDWZKHUHWKHUH
LVQRVWDWHGORZHUOLPLWLQWKHWDEOHEHORZWKHUHLVQRUHTXLUHPHQWIRUWKDW
QXWULHQWLQWKHGLHW:.S
F7KH$PHULFDQ9HUVLRQ
$QGWKHWKLUGYHUVLRQRIIRRGJXLGHS\UDPLGWREHLQWURGXFHGKHUHLV
$PHULFDQLQRULJLQ
,QWKH86'$IRRGS\UDPLGZDVFUHDWHGDQGGLYLGHGLQWRVL[
KRUL]RQWDOVHFWLRQVFRQWDLQLQJGHSLFWLRQVRIIRRGVIURPHDFKVHFWLRQ
VIRRG
JURXS,WZDVXSGDWHGLQZLWKFRORUIXOYHUWLFDOZHGJHVUHSODFLQJWKH
KRUL]RQWDO VHFWLRQV DQG UHQDPHG 0\3\UDPLG 0\3\UDPLG ZDV RIWHQ
GLVSOD\HG ZLWK WKH IRRG LPDJHV DEVHQW FUHDWLQJ D PRUH DEVWUDFW GHVLJQ
:.S
7KHQLQLQDQHIIRUWWRUHVWUXFWXUHIRRGQXWULWLRQJXLGHOLQHVWKH
86'$ UROOHG RXW LWV QHZ 0\3ODWH SURJUDP LQ -XQH 0\3ODWH LV
GLYLGHG LQWR IRXU VOLJKWO\ GLIIHUHQW VL]HG TXDGUDQWV ZLWK IUXLWV DQG
YHJHWDEOHVWDNLQJXSKDOIWKHVSDFHDQGJUDLQVDQGSURWHLQPDNLQJXSWKH
RWKHUKDOI7KHYHJHWDEOHVDQGJUDLQVSRUWLRQVDUHWKHODUJHVWRIWKHIRXU
:.S
)RULOOXVWUDWLRQOHWVFRQVLGHUWKHVHIRRGJURXSVPRUHFORVHO\EHORZ
F9HJHWDEOHV
%\GHILQLWLRQD YHJHWDEOHLVDSDUWRIDSODQWFRQVXPHGE\ KXPDQV
WKDWLV JHQHUDOO\VDYRU\EXWLVQRWVZHHW$ YHJHWDEOHLV QRWFRQVLGHUHGD
JUDLQ IUXLW QXW VSLFH RU KHUE )RU H[DPSOH WKH VWHP URRW IORZHU HWF
PD\ EH HDWHQ DV YHJHWDEOHV 9HJHWDEOHV FRQWDLQ PDQ\ YLWDPLQV DQG
PLQHUDOV KRZHYHU GLIIHUHQW YHJHWDEOHV FRQWDLQ GLIIHUHQW VSUHDGV VR LW LV
LPSRUWDQW WR HDW D ZLGH YDULHW\ RI W\SHV )RU H[DPSOH JUHHQ YHJHWDEOHV
W\SLFDOO\ FRQWDLQ YLWDPLQ $ GDUN RUDQJH DQG GDUN JUHHQ YHJHWDEOHV
FRQWDLQ YLWDPLQ &DQG YHJHWDEOHV OLNH EURFFROL DQG UHODWHG SODQWV FRQWDLQ
&KDSWHU,QJUHGLHQWVDQGWKHLU7ZLQ4XDOLWLHV
LURQDQGFDOFLXP9HJHWDEOHVDUHYHU\ORZLQIDWVDQGFDORULHVEXWFRRNLQJ
FDQRIWHQDGGWKHVH:.S
F)UXLWV
%\ GHILQLWLRQ IUXLWV DUH WKH VZHHWWDVWLQJ VHHGEHDULQJ SDUWV RI
SODQWV RU RFFDVLRQDOO\ VZHHW SDUWV RI SODQWV ZKLFK GR QRW EHDU VHHGV
7KHVH LQFOXGH DSSOHV RUDQJHV SOXPV EDQDQDV HWF )UXLWV DUH ORZ LQ
FDORULHV DQG IDW DQG DUH D VRXUFH RI QDWXUDO VXJDUV ILEHU DQG YLWDPLQV
3URFHVVLQJIUXLWVZKHQFDQQLQJRUPDNLQJLQWRMXLFHVPD\DGGVXJDUVDQG
UHPRYH QXWULHQWV 7KH IUXLW IRRG JURXS LV VRPHWLPHV FRPELQHG ZLWK WKH
YHJHWDEOH IRRG JURXS 1RWH WKDW PDQ\ IRRGV FRQVLGHUHG IUXLWV LQ ERWDQ\
EHFDXVHWKH\EHDUVHHGVDUH QRWFRQVLGHUHGIUXLWVLQFXLVLQHEHFDXVHWKH\
ODFNWKHFKDUDFWHULVWLFVZHHWWDVWHHJWRPDWRVRUDYRFDGRV:.S
F2LOV
7KH 86 IRRG S\UDPLG DGYLVHV WKDW IDWV EH FRQVXPHG VSDULQJO\
%XWWHUDQGRLOVDUHH[DPSOHVRIIDWV+HDOWK\VRXUFHVRIIDWFDQEHIRXQGLQ
ILVK QXWV DQG FHUWDLQ IUXLWV DQG YHJHWDEOHV VXFK DV DYRFDGRV :.
S
F'DLU\
%\ QDWXUHGDLU\SURGXFWVDUHSURGXFHGIURPWKH PLONRI PDPPDOV
PRVW XVXDOO\ EXW QRW H[FOXVLYHO\ FDWWOH 7KH\ LQFOXGH PLON \RJXUW DQG
FKHHVH 0LON DQG LWV GHULYDWLYH SURGXFWV DUH D ULFK VRXUFH RI GLHWDU\
FDOFLXPEXWDOVRSURYLGHSURWHLQSKRVSKRUXVYLWDPLQ$DQGYLWDPLQ'
+RZHYHU PDQ\ GDLU\ SURGXFWV DUH KLJK LQ VDWXUDWHG IDW DQG FKROHVWHURO
FRPSDUHG WR YHJHWDEOHV IUXLWV DQG ZKROH JUDLQV ZKLFK LV ZK\ VNLPPHG
SURGXFWV DUH DYDLODEOH DV DQ DOWHUQDWLYH )RU DGXOWV WKUHH FXSV RI GDLU\
SURGXFWVDUHUHFRPPHQGHGSHUGD\:.S
F0HDWDQG%HDQV
7KHQ WKHUH LV PHDW ZKLFK LV WKH WLVVXHXVXDOO\ PXVFOHRI DQ
DQLPDO FRQVXPHG E\ KXPDQV 6LQFH PRVW SDUWV RI PDQ\ DQLPDOV DUH
HGLEOHWKHUHLVDYDVWYDULHW\RIPHDWV0HDWLVDPDMRUVRXUFHRISURWHLQ
DV ZHOO DV LURQ ]LQF DQG YLWDPLQ % 0HDWV SRXOWU\ DQG ILVK LQFOXGH
EHHIFKLFNHQSRUNVDOPRQWXQDVKULPSDQGHJJV:.S
%\FRPSDULVRQWKHPHDWJURXSLVRQHRIWKHPDMRUFRPSDFWHGIRRG
JURXSV LQ WKH IRRG JXLGH S\UDPLG 0DQ\ RI WKH VDPH QXWULHQWV IRXQG LQ
PHDWFDQDOVREHIRXQGLQIRRGVOLNHHJJVGU\EHDQVDQGQXWVVXFKIRRGV
DUH W\SLFDOO\ SODFHG LQ WKH VDPH FDWHJRU\ DV PHDWV DV PHDW DOWHUQDWLYHV
7KHVHLQFOXGHWRIXSURGXFWVWKDWUHVHPEOHPHDWRUILVKEXWDUHPDGHZLWK
VR\ HJJV DQG FKHHVHV )RU WKRVH ZKR GR QRW FRQVXPH PHDW RU DQLPDO
SURGXFWV PHDW DQDORJV WRIX EHDQV OHQWLOV FKLFN SHDV QXWV DQG RWKHU
KLJKSURWHLQ YHJHWDEOHV DUH DOVR LQFOXGHG LQ WKLV JURXS 7KH IRRG JXLGH
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
S\UDPLGVXJJHVWVWKDWDGXOWVHDWVHUYLQJVSHUGD\2QHVHUYLQJRIPHDW
LVR]JDERXWWKHVL]HRIDGHFNRIFDUGV:.S
6XUHO\WKHUHFDQEHRWKHUYHUVLRQVRIIRRGJXLGHS\UDPLGOLNHWKH
'DQLVK IRRG S\UDPLG VR WKH DERYH WKUHH H[DPSOHV DUH LOOXVWUDWLYH QRW
H[KDXVWLYH
3UREOHPVZLWKWKH6WXG\RI)RRG*XLGH3\UDPLGV
+RZHYHUIRUWKHFULWLFVWKLVVWXG\RIIRRGJXLGHS\UDPLGVKDVVRPH
PDMRU SUREOHPV &RQVLGHU IRU LOOXVWUDWLRQ D IHZ H[DPSOHV EHORZ DV
VXPPDUL]HGLQ7DEOH
)LUVWO\RQHPDLQFULWLFLVPRIWKHVWXG\RIIRRGJXLGHS\UDPLGVLVWKDW
WKHUHFRPPHQGHGIRRGJURXSVDUHQRWQHFHVVDULO\KHDOWK\
)RUH[DPSOHPDQ\QXWULWLRQDOH[SHUWVOLNH+DUYDUGQXWULWLRQLVW'U
:DOWHU :LOOHWW EHOLHYH WKH S\UDPLG GRHV QRW UHIOHFW WKH ODWHVW
UHVHDUFKRQGLHWHWLFV&HUWDLQGLHWDU\FKRLFHVWKDWKDYHEHHQOLQNHGWRKHDUW
GLVHDVHVXFKDVWKUHHFXSVRIZKROHPLONDQGDQR]JVHUYLQJRI
KDPEXUJHU GDLO\ ZHUH WHFKQLFDOO\ SHUPLWWHG XQGHU WKH S\UDPLG :.
S+63+
6HFRQGO\DQRWKHUPDLQFULWLFLVPRIWKHVWXG\RIIRRGJXLGHS\UDPLGV
LVWKDWWKH\FDQEHXQFOHDU
)RULQVWDQFHIRUWKHFULWLFVVRPHRIWKHUHFRPPHQGHGTXDQWLWLHVIRU
WKH GLIIHUHQW W\SHV RI IRRG LQ WKH ROG S\UDPLG KDYH DOVR FRPH XQGHU
FULWLFLVPIRUODFNRIFODULW\)RULQVWDQFHWKHS\UDPLGUHFRPPHQGVWZRWR
WKUHH VHUYLQJV IURP WKH SURWHLQULFK JURXS EXW WKLV LV LQWHQGHG WR EH D
PD[LPXP7KHS\UDPLGUHFRPPHQGVWZRWRIRXUIUXLWVHUYLQJVEXWWKLVLV
LQWHQGHGWREHWKHPLQLPXP:.S
7KLUGO\ VWLOO DQRWKHU PDLQ FULWLFLVP RI WKH VWXG\ RI IRRG JXLGH
S\UDPLGVLVWKDWWKH\DUHSROLWLFDOO\LQIOXHQFHG
)RU LQVWDQFH VHYHUDO ERRNV KDYH UHFHQWO\ FODLPHG WKDW IRRG DQG
DJULFXOWXUDODVVRFLDWLRQVH[HUWXQGXHSROLWLFDOSRZHURQWKH86'$)RRG
LQGXVWULHVVXFKDVPLONFRPSDQLHVKDYHEHHQDFFXVHGRILQIOXHQFLQJWKH
8QLWHG6WDWHV'HSDUWPHQWRI$JULFXOWXUHLQWRPDNLQJWKHFRORUHGVSRWVRQ
WKH QHZO\ FUHDWHG IRRG S\UDPLG ODUJHU IRU WKHLU SDUWLFXODU SURGXFW 7KH
PLON VHFWLRQ KDV EHHQ FODLPHG WR EH WKH HDVLHVW WR VHH RXW RI WKH VL[
VHFWLRQVRIWKHS\UDPLGPDNLQJLQGLYLGXDOVEHOLHYHWKDWPRUHPLONVKRXOG
EH FRQVXPHG RQ D GDLO\ EDVLV FRPSDUHG WR WKH RWKHUV )XUWKHUPRUH WKH
LQFOXVLRQRIPLONDVDJURXSXQWRLWVHOILPSOLHVWKDWLVDQHVVHQWLDOSDUWRID
KHDOWK\ GLHW GHVSLWH WKH PDQ\ SHRSOH ZKR DUH ODFWRVH LQWROHUDQW DQG
FKRRVH WR DEVWDLQ IURP GDLU\ DQG D QXPEHU RI FXOWXUHV WKDW KDYH
KLVWRULFDOO\ FRQVXPHG OLWWOH LI DQ\ GDLU\ SURGXFWV ZLWK WKH H[FHSWLRQ RI
&KDSWHU,QJUHGLHQWVDQGWKHLU7ZLQ4XDOLWLHV
EUHDVWIHHGLQJ :. S & &DPSEHOO 0 1HVWOH 5
5H\HV
)RXUWKO\ DQ DGGLWLRQDO PDLQ FULWLFLVP RI WKH VWXG\ RI IRRG JXLGH
S\UDPLGV LV WKDW GLIIHUHQW YHUVLRQV GLIIHU IURP HDFK RWKHU LQ WHUPV RI
UHFRPPHQGDWLRQ
)RULQVWDQFHWKH:+26WXG\*URXSUHFRPPHQGHGRI
SRO\XQVDWXUDWHG IDWW\ DFLGV 38)$V DQG RI FRPSOH[
FDUERK\GUDWH LQ GLHWDU\ IDFWRUEXW WKH -RLQW :+2)$2 ([SHUW
&RQVXOWDWLRQ UHFRPPHQGHG LQVWHDG RI SRO\XQVDWXUDWHG IDWW\
DFLGV38)$VDQGQRWKLQJRIFRPSOH[FDUERK\GUDWHLQGLHWDU\IDFWRU
:.S
$QG ILIWKO\ DQRWKHU DGGLWLRQDO PDLQ FULWLFLVP RI WKH VWXG\ RI IRRG
JXLGH S\UDPLGV LV WKDW WKH PDLQVWUHDP IRRG JXLGH S\UDPLGV LJQRUH
DOWHUQDWLYHYLHZV
)RU LQVWDQFH WKHUH DUH DOWHUQDWLYH YHUVLRQV OLNH WKH KHDOWK\ HDWLQJ
S\UDPLGE\WKH+DUYDUG6FKRRORI3XEOLF+HDOWKDQGWKHKHDOLQJIRRGV
S\UDPLG E\ WKH 8QLYHUVLW\ RI 0LFKLJDQ ,QWHJUDWLYH 0HGLFLQH ERWK RI
ZKLFKFRPSHWHZLWKWKHVWDQGDUGIRRGJXLGHS\UDPLGV:.S
%H\RQG)RRG*XLGH3\UDPLG
7KHVH FULWLFLVPV RI WKH IRRG JXLGH S\UDPLGV DUH QRW WR UHMHFW WKHLU
XVHIXOQHVVEXWVHUYHWRVKRZXVWKHWZRRSSRVLQJVLGHVRIWKHGHEDWHVXFK
WKDWWKHSRVVLELOLW\RULPSRVVLELOLW\DQGGHVLUDELOLW\RUXQGHVLUDELOLW\RI
LQJUHGLHQWVIURPWKHSHUVSHFWLYHRIWKHPLQGZLWKLQJUHGLHQWVIRRGJXLGH
S\UDPLGDQGQXWULWLRQDVDFDVHVWXG\KHUHDUHQRWWRWKHH[WHQWWKDWWKH
UHVSHFWLYHGHIHQGHUVZRXOGOLNHXVWREHOLHYH
,Q DGGLWLRQ WKH DQDO\VLV RI LQJUHGLHQWV IRRG JXLGH S\UDPLG DQG
QXWULWLRQ UHYHDOV VRPHWKLQJ LQVLJKWIXO DERXW WKH RQWRORJLFDO SULQFLSOHV LQ
H[LVWHQWLDO GLDOHFWLFV DQG JRRG H[DPSOHV LQFOXGH WKH IRUPDOQHVV
LQIRUPDOQHVV SULQFLSOH WKH DEVROXWHQHVVUHODWLYHQHVV SULQFLSOH WKH
SDUWLDOLW\WRWDOLW\ SULQFLSOH WKH SUHGLFWDELOLW\XQSUHGLFWDELOLW\ SULQFLSOH
WKH H[SOLFDELOLW\LQH[SOLFDELOLW\ SULQFLSOH WKH ILFWLRQUHDOLW\ SULQFLSOH WKH
ILQLWHQHVVWUDQVILQLWHQHVV SULQFLSOH WKH SUHFLVHQHVVYDJXHQHVV SULQFLSOH
WKH VLPSOHQHVVFRPSOLFDWHGQHVV SULQFLSOH WKH RSHQQHVVKLGGHQQHVV
SULQFLSOH WKH GHQVHQHVVHPSWLQHVV SULQFLSOH WKH FKDQJHFRQVWDQF\
SULQFLSOHWKHRUGHUFKDRVSULQFLSOHWKHVORZQHVVTXLFNQHVVSULQFLSOHWKH
H[SDQVLRQFRQWUDFWLRQ SULQFLSOH WKH WKHRU\SUD[LV SULQFLSOH WKH
FRQYHQWLRQQRYHOW\ SULQFLSOH WKH HYROXWLRQWUDQVIRUPDWLRQ SULQFLSOH WKH
V\PPHWU\DV\PPHWU\ SULQFLSOH WKH VRIWQHVVKDUGQHVV SULQFLSOH WKH
VHULRXVQHVVSOD\IXOQHVV SULQFLSOH WKH DFWLYHQHVVLQDFWLYHVV SULQFLSOH WKH
VHOIQHVVRWKHUQHVV SULQFLSOH WKH UHJUHVVLRQSURJUHVVLRQ SULQFLSOH WKH
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
&KDSWHU,QJUHGLHQWVDQGWKHLU7ZLQ4XDOLWLHV
LQH[SOLFDELOLW\HJWKHODFNRIVXIILFLHQWH[SODQDWLRQE\WKHDGYRFDWHVRI
WKH+DUYDUG6FKRRORI3XEOLF+HDOWKRIZK\LWVKHDOWK\HDWLQJS\UDPLG
LV QHFHVVDULO\ EHWWHU VLQFH IRU WKH FULWLFV OLNH 5D\ .XU]ZHLO DQG 7HUU\
*URVVPDQ ZKR SRLQWHG RXW LQ )DQWDVWLF 9R\DJH /LYH /RQJ (QRXJK WR
/LYH)RUHYHUWKDWWKHJXLGHOLQHVSURYLGHGLQWKH+DUYDUG3\UDPLGIDLOWR
GLVWLQJXLVK EHWZHHQ KHDOWK\ DQG XQKHDOWK\ RLOVDQG ZKROHJUDLQ IRRGV
DUHJLYHQPRUHSULRULW\WKDQYHJHWDEOHVZKLFKVKRXOGQRWEHWKHFDVHDV
YHJHWDEOHV KDYH D ORZHU JO\FHPLF ORDG :. S $QG WKH UHYHUVH
GLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH ILFWLRQUHDOLW\ SULQFLSOH LI WKHUH LV ILFWLRQ HJ WKH
ILFWLRQDO DVSHFW RI WKH +DUYDUG 3\UDPLG LQVRIDU LW UHFRPPHQGV WKDW
ZKROHJUDLQIRRGVDUHJLYHQPRUHSULRULW\WKDQYHJHWDEOHVZKLFKVKRXOG
QRWEHWKHFDVHDVYHJHWDEOHVKDYHDORZHUJO\FHPLFORDGWKHUHLVUHDOLW\
HJ WKH UHDOLVWLF DVSHFW RI WKH +DUYDUG 3\UDPLG LQVRIDU LW UHFRPPHQGV
FDOFLXP DQG PXOWLYLWDPLQ VXSSOHPHQWV DV ZHOO DV PRGHUDWH DPRXQWV RI
DOFRKRO DV DQ DOWHUQDWLYH WR WKH )RRG *XLGH 3\UDPLG $QG WKH UHYHUVH
GLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH ILQLWHQHVVWUDQVILQLWHQHVV SULQFLSOH LI WKHUH LV
ILQLWHQHVVHJWKHILQLWHQXPEHURIFDWHJRULHVRIIRRGJURXSVLQWKHIRRG
JXLGH S\UDPLGV OLNH WKH JURXSV LQ WKH $PHULFDQ YHUVLRQ WKHUH LV
WUDQVILQLWHQHVVHJWKHWUDQVILQLWHQXPEHURIDOOWKHLQGLYLGXDOSLHFHVRI
IRRG LWHPV LQ KLVWRU\ WKDW KDYH HYHU EHHQ FRQVXPHG UHJDUGOHVV RI KRZ
WKH\ DUH WR EH FODVVLILHG LQ WKH $PHULFDQ YHUVLRQ $QG WKH UHYHUVH
GLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH SUHFLVHQHVVYDJXHQHVV SULQFLSOH LI WKHUH LV
SUHFLVHQHVV HJ WKH SUHFLVH LGHQWLILFDWLRQ RI WKH IRRG JURXSV LQ WKH
'DQLVK IRRG S\UDPLG WKHUH LV YDJXHQHVV HJ WKH YDJXHQHVV LQ WKH
LGHQWLILFDWLRQRIWKHIRRGJURXSVLQWKH'DQLVKIRRGS\UDPLGVLQFHLWLV
QRWFOHDUZK\WKHUHPXVWEHRQO\QRWDQGVRRQ$QGWKH
UHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH VLPSOHQHVVFRPSOLFDWHGQHVV SULQFLSOH LI WKHUH LV
VLPSOHQHVV HJ WKH UHODWLYHO\ VLPSOH DQDO\VLV RI WKH IRRG JXLGH
S\SUDPLGVE\WKHDGYRFDWHVWKHUHLVFRPSOLFDWHGQHVVHJWKHUHODWLYHO\
PRUH FRPSOLFDWHG DQDO\VLV RI WKH IRRG JXLGH S\SUDPLGV E\ FKDOOHQJLQJ
WKHFODLPVDQGDVVXPSWLRQVDVVKRZQLQWKHSUREOHPVSRLQWHGRXWE\WKH
FULWLFVDVFLWHG$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHRSHQQHVVKLGGHQQHVVSULQFLSOHLIWKHUHLVRSHQQHVV
HJWKHRSHQH[SORUDWLRQRIGLIIHUHQWIRRGJURXSVLQWKH$PHULFDQIRRG
JXLGHS\UDPLGWKHUHLVKLGGHQQHVVHJWKHKLGGHQELDVLQWKH$PHULFDQ
IRRGJXLGHS\UDPLGEHFDXVHIRUWKHFULWLFVLWLJQRUHVDOWHUQDWLYHYHUVLRQV
OLNHWKHKHDOWK\HDWLQJS\UDPLGE\WKH+DUYDUG6FKRRORI3XEOLF+HDOWK
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
DQGWKHKHDOLQJIRRGVS\UDPLGE\WKH8QLYHUVLW\RI0LFKLJDQ,QWHJUDWLYH
0HGLFLQHIRUH[DPSOH$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHGHQVHQHVVHPSWLQHVVSULQFLSOHLIWKHUHLVGHQVHQHVV
HJ WKH UHODWLYHO\ GHQVHU FRQFHQWUDWLRQ RI PLON SURGXFWV WR EH
UHFRPPHQGHG IRU FRQVXPSWLRQ LI YLHZHG IURP WKH QHZO\ FUHDWHG IRRG
S\UDPLG LQIOXHQFHG E\ PLON FRPSDQLHV ZKLFK KDYH EHHQ DFFXVHG RI
LQIOXHQFLQJ WKH 8QLWHG 6WDWHV 'HSDUWPHQW RI $JULFXOWXUH LQWR PDNLQJ WKH
FRORUHGVSRWVRQWKHQHZO\FUHDWHGIRRGS\UDPLGODUJHUIRUWKHLUSDUWLFXODU
SURGXFW WKHUH LV HPSWLQHVV HJ WKH UHODWLYHO\ OHVV GHQVH RU PRUH
HPSW\ FRQFHQWUDWLRQ RI PLON SURGXFWV WR EH FRQVXPHG IRU WKRVH SHRSOH
ZKR DUH ODFWRVH LQWROHUDQW DQG FKRRVH WR DEVWDLQ IURP GDLU\ $QG WKH
UHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHFKDQJHFRQVWDQF\SULQFLSOHLIWKHUHLVFKDQJHHJ
WKHHYHUQHZZD\VWRXQGHUVWDQGIRRGJURXSVWREHFRQVXPHGIRUQXWULWLRQ
DV VKRZQ LQ WKH GLIIHUHQW YHUVLRQV RI WKH IRRG JXLGH S\UDPLG DQG WKHLU
DOWHUQDWLYHV WKHUH LV FRQVWDQF\ HJ WKH HYHU FRQVWDQW H[LVWHQFH RI
GLIIHUHQWSUREOHPVLQWKHHYHUQHZ ZD\VWRXQGHUVWDQGIRRGJURXSVWREH
FRQVXPHG IRU QXWULWLRQ DV VKRZQ LQ WKH SUREOHPV ZLWK WKH GLIIHUHQW
YHUVLRQV RI WKH IRRG JXLGH S\UDPLG DQG WKHLU DOWHUQDWLYHV SRLQWHG RXW E\
WKHFULWLFV$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHRUGHUFKDRVSULQFLSOHLIWKHUHLVRUGHUHJWKHPRUH
RU OHVV RUGHUO\ SUHVHQWDWLRQ RI IRRG JURXSV WR EH UHFRPPHQGHG IRU
FRQVXPSWLRQ LI ORRNHG IURP WKH YDQWDJH SRLQW RI D SDUWLFXODU YHUVLRQ RI
WKH IRRG JXLGH S\UDPLG OLNH WKH 6FDQGLQDYLDQ RQH WKHUH LV FKDRV HJ
WKH PRUHRUOHVVFKDRWLFSUHVHQWDWLRQRI IRRGJURXSVWREHUHFRPPHQGHG
IRUFRQVXPSWLRQLIORRNHGIURPWKHYDQWDJHSRLQWVRIGLIIHUHQWFRQIOLFWLQJ
YHUVLRQV RI WKH IRRG JXLGH S\UDPLG DV ZHOO DV WKHLU FRPSHWLQJ
DOWHUQDWLYHV$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH VORZQHVVTXLFNQHVV SULQFLSOH LI WKHUH LV VORZQHVV
HJ WKH UHODWLYHO\ VORZHU VSHHG RI PLON SURGXFWV WR EH FRQVXPHG E\
SHRSOHZKRDUHODFWRVHLQWROHUDQWWKHUHLVTXLFNQHVVHJWKHUHODWLYHO\
TXLFNHU VSHHG RI PLON SURGXFWV WR EH FRQVXPHG E\ SHRSOH ZKR DUH QRW
ODFWRVH LQWROHUDQW DQG DUH KHDYLO\ LQIOXHQFHG E\ WKH DGV RI PLON
FRPSDQLHV$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHH[SDQVLRQFRQWUDFWLRQSULQFLSOHLIWKHUHLVH[SDQVLRQ
HJWKHUHODWLYHVSUHDGRIWKHHGXFDWLRQDERXWWKHIRRGJXLGHS\UDPLGLQ
WKH86LQWKHVWKHUHLVFRQWUDFWLRQHJWKHUHODWLYHGHFOLQHLQWKH
86GXULQJWKHVRIWKHSHUFHSWLRQFRPPRQO\IRXQGLQDQXPEHURI
FXOWXUHV WKDW KDYH KLVWRULFDOO\ FRQVXPHG OLWWOH LI DQ\ GDLU\ SURGXFWV ZLWK
WKH H[FHSWLRQ RI EUHDVWIHHGLQJ $QG WKH UHYHUVH GLUHFWLRQ DOVR KROGV
WUXH
&KDSWHU,QJUHGLHQWVDQGWKHLU7ZLQ4XDOLWLHV
,Q UHODWLRQ WR WKH WKHRU\SUD[LV SULQFLSOH LI WKHUH LV WKHRU\ HJ WKH
WKHRUHWLFDO FRQVWUXFWLRQ E\ )MDODU &OHPHV LQ RI DQ LGHD DERXW D
WULDQJOH GLVSOD\LQJ EDVLF IRRGV DW WKH EDVH WKHUH LV SUD[LV HJ WKH
SUDFWLFDODSSOLFDWLRQRIWKHLGHDDERXWDWULDQJOHGLVSOD\LQJEDVLFIRRGVDW
WKHEDVHWRWKHILHOGRIQXWULWLRQDVVKRZQLQWKHVSUHDGRIWKHHGXFDWLRQ
DERXWWKHIRRGJXLGHS\UDPLGSURSRVHGE\WKH86'$LQWKH86GXULQJ
WKHV$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHFRQYHQWLRQQRYHOW\SULQFLSOHLIWKHUHLVFRQYHQWLRQ
HJWKHFRQYHQWLRQDOZLVGRPDERXWWKHIRRGJXLGHS\UDPLGLQWKH86LQ
WKH V WKHUH LV QRYHOW\ HJ WKH DOWHUQDWLYH QRYHO FKDOOHQJH WR WKH
FRQYHQWLRQDO ZLVGRP DERXW WKH IRRG JXLGH S\UDPLG LQ WKH 86 LQ WKH
V E\ WKH QHZ LGHD RI WKH KHDOWK\ HDWLQJ S\UDPLG E\ WKH +DUYDUG
6FKRRORI3XEOLF+HDOWKRUWKHKHDOLQJIRRGVS\UDPLGE\WKH8QLYHUVLW\
RI0LFKLJDQ,QWHJUDWLYH0HGLFLQHLQWKHV$QGWKHUHYHUVHGLUHFWLRQ
DOVRKROGVWUXH
,Q UHODWLRQ WR WKH HYROXWLRQWUDQVIRUPDWLRQ SULQFLSOH LI WKHUH LV
HYROXWLRQ HJ WKH QDWXUDO HYROXWLRQ RI KXPDQV WR FRQVXPH ZKDW ZDV
IRXQG LQ WKH VWDWH RI QDWXUH LQ D SULPLWLYH ZD\ WKHUH LV WUDQVIRUPDWLRQ
HJ WKH WHFKQLFDO WUDQVIRUPDWLRQ RI KXPDQ DELOLW\ WR FRQVXPH E\ WKH
LQYHQWLRQ RI WKH VFLHQWLILF VWXGLHV RI GLIIHUHQW IRRG JURXSV OLNH WKRVH
UHFRPPHQGHG E\ GLIIHUHQW IRRG JXLGH S\UDPLGV QRZDGD\V $QG WKH
UHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHV\PPHWU\DV\PPHWU\SULQFLSOHLIWKHUHLVV\PPHWU\
HJ WKH H[LVWHQFH RI GLIIHUHQW ZD\V WR XQGHUVWDQG IRRG JURXSV IRU
FRQVXPSWLRQWKHUHLVDV\PPHWU\HJWKHSRSXODULW\RIWKH6FDQGLQDYLDQ
IRRG JXLGH S\UDPLG LQ WKH V EXW WKH SRSXODULW\ RI WKH $PHULFDQ
IRRGJXLGHS\SUDPLGQRZDGD\V$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHVRIWQHVVKDUGQHVVSULQFLSOHLIWKHUHLVVRIWQHVVHJ
WKH DSSUHFLDWLRQ RI WKH IRRG JXLGH S\UDPLG E\ WKH DGYRFDWHV LQ WKH
86'$WKHUHLVKDUGQHVVHJWKHFULWLTXHRIWKHIRRGJXLGHS\UDPLGE\
WKRVHZKRSURSRVHDOWHUQDWLYHRQHV$QGWKHUHYHUVHGLUHFWLRQDOVRKROGV
WUXH
,Q UHODWLRQ WR WKH VHULRXVQHVVSOD\IXOQHVV SULQFLSOH LI WKHUH LV
VHULRXVQHVVHJWKHVHULRXVEXVLQHVVRIWKRVHUHVHDUFKHUVZKRWU\WRVWXG\
WKH ULJKW EDODQFH RI GLIIHUHQW IRRG JURXSV IRU FRQVXPSWLRQ WKHUH LV
SOD\IXOQHVVHJWKHSOD\IXOSDUWRIWKRVHUHVHDUFKHUVZKRWU\WRVWXG\WKH
ULJKW EDODQFH RI GLIIHUHQW IRRG JURXSV IRU FRQVXPSWLRQ ZKHQ WKH\ SOD\
DURXQG ZLWK GLIIHUHQW YHUVLRQV RYHU WKH GHFDGHV DV VKRZQ LQ WKH
6FDQGLQDYLDQ IRRG JXLGH S\UDPLG WKH :+2 IRRG JXLGH S\UDPLG WKH
$PHULFDQIRRGJXLGHS\SUDPLGDQGWKHDOWHUQDWLYHRQHVDIRUHFLWHG$QG
WKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
,QUHODWLRQWRWKHDFWLYHQHVVLQDFWLYHVVSULQFLSOHLIWKHUHLVDFWLYHQHVV
HJ WKH DFWLYHQHVV RI WKRVH ZKR HDW KHDOWK\ IRRG DQG VWD\ ILW WKHUH LV
LQDFWLYHQHVVHJWKHUHODWLYHLQDFWLYHQHVVRIWKRVHZKRDUHVLFNEHFDXVH
WKH\HDWXQKHDOWK\IRRGDQGGRQRWH[HUFLVH
,QUHODWLRQWRWKHVHOIQHVVRWKHUQHVVSULQFLSOHLIWKHUHLVVHOIQHVVHJ
WKHWHQGHQF\WREHPRVWO\FHQWHUHGRQRQHVVHOIRUJURXSDVVKRZQE\WKH
PLON FRPSDQLHV ZKLFK SURPRWH WKHLU PLON SURGXFWV GHFHSWLYHO\WKHUH LV
RWKHUQHVVHJWKHWHQGHQF\WREHPRVWO\FHQWHUHGRQRWKHUVDVVKRZQLQ
WKHUHVHDUFKHUVZKRWU\WRFRPHXSZLWKDPRUHVFLHQWLLILFXQGHUVWDQGLQJ
RIIRRGJURXSVIRUFRQVXPSWLRQ$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH UHJUHVVLRQSURJUHVVLRQ SULQFLSOH LI WKHUH LV
UHJUHVVLRQ HJ WKH UHJUHVVLRQ PDGH E\ WKH IRRG JXLGH S\UDPLGV DV
VKRZQ LQ WKH ELDVHV DQG SUREOHPV SRLQWHG RXW E\ WKH FULWLFV WKHUH LV
SURJUHVVLRQ HJ WKH SURJUHVV PDGH E\ WKH IRRG JXLGH S\UDPLGV DV
VKRZQLQWKHLUFRQWULEXWLRQVWRDKHDOWK\GLHWZKLFKFDQDOVREHFKHDSDQG
QXWULWLRXVDIRUHFLWHG$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH VDPHGLIIHUHQFH SULQFLSOH LI WKHUH LV VLPLODULW\ LQ
RXWFRPH HJ WKH FRQWULEXWLRQ WR WKH PROGLQJ DQG FRQWURO RI EHOLHIV
YDOXHV DQG EHKDYLRUV UHJDUGOHVV RI ZKHWKHU WKLV EH GRQH E\ ZD\ RI
FRQWHPSRUDU\ IRRG JXLGH S\UDPLGV RU E\ ZD\ RI WUDGLWLRQDO GLHWDU\
SUDFWLFHV WKHUH LV GLIIHUHQFH LQ RXWFRPH HJ WKH FRQWULEXWLRQ WR WKH
PROGLQJ DQG FRQWURO RI EHOLHIV YDOXHV DQG EHKDYLRUV E\ ZD\ RI
FRQWHPSRUDU\ IRRG JXLGH S\UDPLGV IRU D UHODWLYHO\ PRUH VFLHQWLILF
ZRUOGYLHZEXW WKH FRQWULEXWLRQ WR WKH PROGLQJ DQG FRQWURO RI EHOLHIV
YDOXHV DQG EHKDYLRUV E\ ZD\ RI WUDGLWLRQDO GLHWDU\ SUDFWLFHV IRU D
UHODWLYHO\ PRUH FXVWRPDU\ ZRUOGYLHZ $QG WKH UHYHUVH GLUHFWLRQ DOVR
KROGVWUXH
,QUHODWLRQWRWKHVWDELOLW\UHDFWLRQSULQFLSOHLIWKHUHLVVWDELOLW\HJ
WKHUHODWLYHO\PRUHVWDEOHFRQGLWLRQRIVRPHFXOWXUHVLQWKHROGHUGD\VLQ
ZKLFKSHRSOHKDYHKLVWRULFDOO\FRQVXPHGOLWWOHLIDQ\GDLU\SURGXFWVZLWK
WKH H[FHSWLRQ RI EUHDVWIHHGLQJ WKHUH LV UHDFWLRQ HJ WKH UHODWLYHO\
PRUHVWDEOHFRQGLWLRQRIVRPHFXOWXUHVLQZKLFKSHRSOHKDYHKLVWRULFDOO\
FRQVXPHGOLWWOHLIDQ\GDLU\SURGXFWVZLWKWKHH[FHSWLRQRIEUHDVWIHHGLQJ
WKHQ OHG WR IXUWKHU FKDQJHV ODWHU RQ ZKHQ WKH VSUHDG RI :HVWHUQ IRRG
JXLGH S\UDPLGV EHFRPHV PRUH DQG PRUH LQIOXHQWLDO QRZDGD\V $QG WKH
UHYHUVHGLUHFWLRQDOVRKROGVWUXH
$QGLQUHODWLRQWRWKHIXQFWLRQDOLW\QRQIXQFWLRQDOLW\SULQFLSOHLIWKHUH
LVIXQFWLRQDOLW\HJWKHSUHVHQFHRIDFWLRQIRUZKLFKVRPHWKLQJLVILWWHG
DVVKRZQLQGDLU\SURGXFWVZKLFKDUHDULFKVRXUFHRIGLHWDU\FDOFLXPEXW
DOVR SURYLGH SURWHLQ SKRVSKRUXV YLWDPLQ $ DQG YLWDPLQ ' WKHUH LV
QRQIXQFWLRQDOLW\ HJ WKH UHODWLYH ODFN RI DFWLRQ IRU ZKLFK VRPHWKLQJ LV
&KDSWHU,QJUHGLHQWVDQGWKHLU7ZLQ4XDOLWLHV
ILWWHG DV VKRZQ LQ GDLU\ SURGXFWV ZKLFK DUH QRW ZHOO DFFHSWHG E\ WKRVH
ZKRDUHODFWRVHLQWROHUDQWDQGDUHWKXVXVHOHVVWRWKHVHSHRSOH$QGWKH
UHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QJUHGLHQWVDQG1DWXUH
,QJUHGLHQWVZKHQH[DPLQHGIURPWKHSHUVSHFWLYHRIQDWXUHFDQVKRZ
XV WKHLU SRVVLELOLW\ RU LPSRVVLELOLW\ DQG GHVLUDELOLW\ RU XQGHVLUDELOLW\
DQG WKLV FDQ EH VKRZQ E\ ZD\ RI WZR FDVH VWXGLHV QDPHO\
LQJUHGLHQWV IRRGFKDLQVDQG HFRORJLFDOS\UDPLGDQGLQJUHGLHQWV
QDWXUHDQGUDZIRRGWREHDGGUHVVHGLQZKDWIROORZVUHVSHFWLYHO\
,QJUHGLHQWV)RRG&KDLQVDQG(FRORJLFDO3\UDPLG
$ JRRG ZD\ WR HYDOXDWH WKH SRVVLELOLW\ RU LPSRVVLELOLW\ DQG
GHVLUDELOLW\ RU XQGHVLUDELOLW\ RI LQJUHGLHQWV IURP WKH SHUVSHFWLYH RI
QDWXUHLVWRH[SORUHLQJUHGLHQWVIRRGFKDLQVDQGHFRORJLFDOS\UDPLG
7KHWHUPIRRGFKDLQUHIHUVWRDOLQHDUVHTXHQFHRIOLQNVLQDIRRG
ZHE VWDUWLQJ IURP D WURSKLF VSHFLHV WKDW HDWV QR RWKHU VSHFLHV LQ WKH ZHE
DQG HQGV DW D WURSKLF VSHFLHV WKDW LV HDWHQ E\ QR RWKHU VSHFLHV LQ WKH
ZHE)RRGFKDLQV ZHUHILUVWLQWURGXFHGLQDERRNSXEOLVKHGLQE\
&KDUOHV(OWRQ:.K6$OOHVLQD)(JHUWRQ
$JUDSKLFDOUHSUHVHQWDWLRQRIIRRGFKDLQVFDQEHPDGHLQWHUPVRIDQ
HFRORJLFDO S\UDPLG DOVR WURSKLF S\UDPLG RU HQHUJ\ S\UDPLG VR DV WR
VKRZWKHELRPDVVRUELRPDVVSURGXFWLYLW\DWHDFKWURSKLFOHYHOLQDJLYHQ
HFRV\VWHP %LRPDVV LV WKH DPRXQW RI OLYLQJRU RUJDQLF PDWWHU SUHVHQW LQ
DQRUJDQLVP%LRPDVVS\UDPLGVVKRZKRZPXFKELRPDVVLVSUHVHQWLQWKH
RUJDQLVPV DW HDFK WURSKLF OHYHO ZKLOH SURGXFWLYLW\ S\UDPLGV VKRZ WKH
SURGXFWLRQRUWXUQRYHULQELRPDVV:.L
,QWKLVZD\HFRORJLFDOS\UDPLGVEHJLQZLWKSURGXFHUVRQWKHERWWRP
VXFK DV SODQWV DQG SURFHHG WKURXJK WKH YDULRXV WURSKLF OHYHOV VXFK DV
KHUELYRUHV WKDW HDW SODQWV WKHQ FDUQLYRUHV WKDW HDW KHUELYRUHV WKHQ
FDUQLYRUHV WKDW HDW WKRVH FDUQLYRUHV DQG VR RQ 7KH KLJKHVW OHYHO LV WKH
WRSRIWKHIRRGFKDLQ:.L
)RRG&KDLQ/HQJWK
)RRG FKDLQV KDYH GLIIHUHQW OHQJWKV DQG D IRRG FKDLQ OHQJWK LV D
FRQWLQXRXVYDULDEOHWKDWSURYLGHVDPHDVXUHRIWKHSDVVDJHRIHQHUJ\DQG
DQ LQGH[ RI HFRORJLFDO VWUXFWXUH WKDW LQFUHDVHV LQ YDOXH FRXQWLQJ
SURJUHVVLYHO\ WKURXJK WKH OLQNDJHV LQ D OLQHDU IDVKLRQ IURP WKH ORZHVW WR
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
WKH KLJKHVW WURSKLF IHHGLQJ OHYHOV )RRG FKDLQV DUH RIWHQ XVHG LQ
HFRORJLFDO PRGHOLQJ VXFK DV D WKUHH VSHFLHV IRRG FKDLQ 7KH\ DUH
VLPSOLILHG DEVWUDFWLRQV RI UHDO IRRG ZHEV EXW FRPSOH[ LQ WKHLU G\QDPLFV
DQG PDWKHPDWLFDO LPSOLFDWLRQV (FRORJLVWV KDYH IRUPXODWHG DQG WHVWHG
K\SRWKHVHV UHJDUGLQJ WKH QDWXUH RI HFRORJLFDO SDWWHUQV DVVRFLDWHG ZLWK
IRRG FKDLQ OHQJWK VXFK DV LQFUHDVLQJ OHQJWK LQFUHDVLQJ ZLWK HFRV\VWHP
VL]HUHGXFWLRQRIHQHUJ\DWHDFKVXFFHVVLYH OHYHORUWKHSURSRVLWLRQWKDW
ORQJ IRRG FKDLQ OHQJWKV DUH XQVWDEOH :. K ' 3RVW 5
5LFNOHIIV0=DQGHQ
,QJHQHUDOIRRGFKDLQYDU\LQOHQJWKIURPWKUHHWRVL[RUPRUHOHYHOV
$IRRGFKDLQFRQVLVWLQJRIDIORZHUDIURJDVQDNHDQGDQRZOFRQVLVWVRI
IRXUOHYHOVZKHUHDVDIRRGFKDLQFRQVLVWLQJRIJUDVVDJUDVVKRSSHUDUDW
DVQDNHDQGILQDOO\DKDZNFRQVLVWVRIILYHOHYHOV3URGXFHUVDUHRUJDQLVPV
WKDWXWLOL]HVRODUHQHUJ\RUKHDWHQHUJ\WRV\QWKHVLVHVWDUFK(JSODQWV$OO
IRRGFKDLQVPXVWVWDUWZLWKDSURGXFHU&RQVXPHUVDUHRUJDQLVPVWKDWHDW
RWKHURUJDQLVPV$OORUJDQLVPVLQDIRRGFKDLQH[FHSWWKHILUVWRUJDQLVP
DUHFRQVXPHUV:.K
3\UDPLGRI%LRPDVV
:LWK WKLV LGHD RI IRRG FKDLQV DQG WKHLU OHQJWKV LQ PLQGDQ
HFRORJLFDO S\UDPLG RI ELRPDVV VKRZV WKH UHODWLRQVKLS EHWZHHQ ELRPDVV
DQG WURSKLF OHYHO E\ TXDQWLI\LQJ WKH DPRXQW RI ELRPDVV SUHVHQW DW HDFK
WURSKLFOHYHORIDQHFRORJLFDOFRPPXQLW\DWDSDUWLFXODUPRPHQWLQWLPH,W
LVDJUDSKLFDOUHSUHVHQWDWLRQRIELRPDVVWRWDODPRXQWRIOLYLQJRURUJDQLF
PDWWHU LQ DQ HFRV\VWHP SUHVHQW LQ XQLW DUHD LQ GLIIHUHQW WURSLF OHYHOV
7\SLFDOXQLWVIRUDELRPDVVS\UDPLGFRXOGEHJUDPVSHUPHWHURUFDORULHV
SHUPHWHU:.L
%XW WKH S\UDPLG RI ELRPDVV PD\ EH
LQYHUWHG
)RU H[DPSOH LQ D
SRQGHFRV\VWHPWKHVWDQGLQJFURSRISK\WRSODQNWRQWKHPDMRUSURGXFHUV
DWDQ\JLYHQSRLQWZLOOEHORZHUWKDQWKHPDVVRIWKHKHWHURWURSKVVXFKDV
ILVK DQG LQVHFWV 7KLV LV H[SODLQHG DV WKH SK\WRSODQNWRQ UHSURGXFH YHU\
TXLFNO\EXWKDYHPXFKVKRUWHULQGLYLGXDOOLYHV:.L
3\UDPLGRI3URGXFWLYLW\
%\ FRQWUDVW LQ D PRUH G\QDPLF SHUVSHFWLYH DQHFRORJLFDO S\UDPLG
RISURGXFWLYLW\LVRIWHQPRUHXVHIXOVKRZLQJWKHSURGXFWLRQRUWXUQRYHURI
ELRPDVV DW HDFK WURSKLF OHYHO ,QVWHDG RI VKRZLQJ D VLQJOH VQDSVKRW LQ
WLPH SURGXFWLYLW\ S\UDPLGV VKRZ WKH IORZ RI HQHUJ\ WKURXJK WKH IRRG
FKDLQ 7\SLFDO XQLWV ZRXOG EH JUDPV SHU PHWHU SHU \HDU RU FDORULHV SHU
&KDSWHU,QJUHGLHQWVDQGWKHLU7ZLQ4XDOLWLHV
PHWHUSHU\HDU$VZLWKWKHRWKHUVWKLVJUDSKEHJLQVZLWKSURGXFHUVDWWKH
ERWWRPDQGSODFHVKLJKHUWURSKLFOHYHOVRQWRS:.L
6R WKLV PHDQV WKDW ZKHQ DQ HFRV\VWHP LV KHDOWK\ WKLV JUDSK
SURGXFHV D VWDQGDUG HFRORJLFDO S\UDPLG 7KLV LV EHFDXVH LQ RUGHU IRU WKH
HFRV\VWHP WR VXVWDLQ LWVHOI WKHUH PXVW EH PRUH HQHUJ\ DW ORZHU WURSKLF
OHYHOVWKDQWKHUHLVDWKLJKHUWURSKLFOHYHOV7KLVDOORZVIRURUJDQLVPVRQ
WKH ORZHU OHYHOV WR QRW RQO\ PDLQWDLQ D VWDEOH SRSXODWLRQ EXW WR DOVR
WUDQVIHU HQHUJ\ XS WKH S\UDPLG 7KH H[FHSWLRQ WR WKLV JHQHUDOL]DWLRQ LV
ZKHQ SRUWLRQV RI D IRRG ZHE DUH VXSSRUWHG E\ LQSXWV RI UHVRXUFHV IURP
RXWVLGH RI WKH ORFDO FRPPXQLW\ ,Q VPDOO IRUHVWHG VWUHDPV IRU H[DPSOH
JRQHXSJUHDWHUWKDQFRXOGEHVXSSRUWHGE\WKHORFDOSULPDU\SURGXFWLRQ
:.L
0RUH VSHFLILFDOO\ ZKHQ HQHUJ\ LV WUDQVIHUUHG WR WKH QH[W WURSKLF
OHYHO W\SLFDOO\ RQO\ RI LW LV XVHG WR EXLOG QHZ ELRPDVV EHFRPLQJ
VWRUHG HQHUJ\ WKH UHVW JRLQJ WR PHWDEROLF SURFHVVHV $V VXFK LQ D
S\UDPLGRISURGXFWLYLW\HDFKVWHSZLOOEHWKHVL]HRIWKHSUHYLRXVVWHS
:.L
7KH XVH RI WKH S\UDPLG RI SURGXFWLYLW\ KDV VRPH DGYDQWDJHV DV
VKRZQEHORZ:.L
,WWDNHVDFFRXQWRIWKHUDWHRISURGXFWLRQRYHUDSHULRGRIWLPH
7ZR VSHFLHV RI FRPSDUDEOH ELRPDVV PD\ KDYH YHU\ GLIIHUHQW OLIH
VSDQV 7KHUHIRUH WKHLU UHODWLYH ELRPDVVHV LV PLVOHDGLQJ EXW WKHLU
SURGXFWLYLW\LVGLUHFWO\FRPSDUDEOH
7KH UHODWLYH HQHUJ\ FKDLQ ZLWKLQ DQ HFRV\VWHP FDQ EH FRPSDUHG
XVLQJ S\UDPLGV RI HQHUJ\ DOVR GLIIHUHQW HFRV\VWHPV FDQ EH
FRPSDUHG
7KHUHDUHQRLQYHUWHGS\UDPLGV
7KHLQSXWRIVRODUHQHUJ\FDQEHDGGHG
,Q JHQHUDO SURGXFWLYLW\ S\UDPLGV XVXDOO\ SURYLGH PRUH LQVLJKW LQWR DQ
HFRORJLFDOFRPPXQLW\ZKHQWKHQHFHVVDU\LQIRUPDWLRQLVDYDLODEOH
3UREOHPVZLWKWKH6WXG\RI(FRORJLFDO3\UDPLG
+RZHYHU IRU WKH FULWLFV WKLV VWXG\ RI IRRG FKDLQV DQG HFRORJLFDO
S\UDPLG KDV VRPH PDMRU SUREOHPV &RQVLGHU IRU LOOXVWUDWLRQ D IHZ
H[DPSOHVEHORZ
)LUVWO\RQHPDLQFULWLFLVPRIWKHVWXG\RIIRRGFKDLQVDQGHFRORJLFDO
S\UDPLGLVWKDWELRPDVVS\UDPLGVFDQEHPLVOHDGLQJ
)RU LQVWDQFH IRU WKH FULWLFV RQH SUREOHP ZLWK ELRPDVV S\UDPLGV LV
WKDWWKH\FDQPDNHDWURSKLFOHYHOORRNOLNHLWFRQWDLQVPRUHHQHUJ\WKDQLW
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
DFWXDOO\ GRHV )RU H[DPSOH DOO ELUGV KDYH EHDNV DQG VNHOHWRQV ZKLFK
GHVSLWHWDNLQJXSPDVVDUHQRWHDWHQE\WKHQH[WWURSKLFOHYHO,QDS\UDPLG
RIELRPDVVWKHVNHOHWRQVDQGEHDNVZRXOGVWLOOEHTXDQWLILHGHYHQWKRXJK
WKH\GRQRWFRQWULEXWHWRWKHRYHUDOOIORZRIHQHUJ\:.L
6HFRQGO\ DQRWKHU PDLQ FULWLFLVP RI WKH VWXG\ RI IRRG FKDLQV DQG
HFRORJLFDO S\UDPLG LV WKDW WKH GHVLJQDWLRQ RI RUJDQLVPV LQ D S\UDPLG RI
SURGXFWLYLW\FDQEHVRPHZKDWDUELWUDU\GHSHQGLQJRQWKHFDVHV
)RULQVWDQFHIRUWKHFULWLFVWKHUHLVWKHGLIILFXOW\RIDVVLJQLQJWKH
RUJDQLVPV WR D VSHFLILF WURSKLF OHYHO DQG LQ UHJDUG WR WKH RUJDQLVP LQ
WKH IRRG FKDLQV WKHUH LV WKH SUREOHP RI DVVLJQLQJ WKH GHFRPSRVHUV DQG
GHWULWLYRUHVWRDSDUWLFXODUWURSKLFOHYHO:.L
$QG WKLUGO\ VWLOO DQRWKHU PDLQ FULWLFLVP RI WKH VWXG\ RI IRRG FKDLQV
DQGHFRORJLFDOS\UDPLGLVWKDWLWPDNHVPHDVXUHPHQWPRUHGLIILFXOW
)RU LQVWDQFH ZKHQ ZRUNLQJ ZLWK WKH S\UDPLG RI SURGXFWLYLW\ WKH
UDWH RI ELRPDVV SURGXFWLRQ RI DQ RUJDQLVP LV UHTXLUHG ZKLFK LQYROYHV
PHDVXULQJ JURZWK DQG UHSURGXFWLRQ WKURXJK WLPH EXW WKLV LV HDVLHU VDLG
WKDQGRQH:.L
%H\RQG(FRORJLFDO3\UDPLG
+RZHYHUWKHVHFULWLFLVPVRIWKHVWXG\RIIRRGFKDLQVDQGHFRORJLFDO
S\UDPLGGRQRWLPSO\DWRWDOUHMHFWLRQRILWVXVHIXOQHVVEXWVHUYHWRVKRZ
XV WKH WZR RSSRVLQJ VLGHV RI WKH GHEDWH VXFK WKDW WKH SRVVLELOLW\ RU
LPSRVVLELOLW\DQGGHVLUDELOLW\RUXQGHVLUDELOLW\RILQJUHGLHQWVIURPWKH
SHUVSHFWLYH RI QDWXUH ZLWK LQJUHGLHQWV IRRG FKDLQV DQG HFRORJLFDO
S\UDPLG DV D FDVH VWXG\ KHUH DUH QRW WR WKH H[WHQW WKDW WKH UHVSHFWLYH
GHIHQGHUVZRXOGOLNHXVWREHOLHYH
,QGHHG WKH DQDO\VLV RI LQJUHGLHQWV IRRG FKDLQV DQG HFRORJLFDO
S\UDPLG FDQ LOOXPLQDWH WKH QDWXUH RI WKH RQWRORJLFDO SULQFLSOHV LQ
H[LVWHQWLDO GLDOHFWLFV DQG JRRG H[DPSOHV LQFOXGH WKH IRUPDOQHVV
LQIRUPDOQHVV SULQFLSOH WKH DEVROXWHQHVVUHODWLYHQHVV SULQFLSOH WKH
SDUWLDOLW\WRWDOLW\ SULQFLSOH WKH SUHGLFWDELOLW\XQSUHGLFWDELOLW\ SULQFLSOH
WKH H[SOLFDELOLW\LQH[SOLFDELOLW\ SULQFLSOH WKH ILFWLRQUHDOLW\ SULQFLSOH WKH
ILQLWHQHVVWUDQVILQLWHQHVV SULQFLSOH WKH SUHFLVHQHVVYDJXHQHVV SULQFLSOH
WKH VLPSOHQHVVFRPSOLFDWHGQHVV SULQFLSOH WKH RSHQQHVVKLGGHQQHVV
SULQFLSOH WKH GHQVHQHVVHPSWLQHVV SULQFLSOH WKH FKDQJHFRQVWDQF\
SULQFLSOHWKHRUGHUFKDRVSULQFLSOHWKHVORZQHVVTXLFNQHVVSULQFLSOHWKH
H[SDQVLRQFRQWUDFWLRQ SULQFLSOH WKH WKHRU\SUD[LV SULQFLSOH WKH
FRQYHQWLRQQRYHOW\ SULQFLSOH WKH HYROXWLRQWUDQVIRUPDWLRQ SULQFLSOH WKH
V\PPHWU\DV\PPHWU\ SULQFLSOH WKH VRIWQHVVKDUGQHVV SULQFLSOH WKH
VHULRXVQHVVSOD\IXOQHVV SULQFLSOH WKH DFWLYHQHVVLQDFWLYHVV SULQFLSOH WKH
VHOIQHVVRWKHUQHVV SULQFLSOH WKH UHJUHVVLRQSURJUHVVLRQ SULQFLSOH WKH
&KDSWHU,QJUHGLHQWVDQGWKHLU7ZLQ4XDOLWLHV
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
UHIOHFWLQJ WKH UHODWLRQVKLS EHWZHHQ ELRPDVV DQG WURSKLF OHYHO WKHUH LV
LQH[SOLFDELOLW\HJWKHODFNRIVXIILFLHQWH[SODQDWLRQE\WKRVHLQWKHVWXG\
RI IRRG FKDLQV DQG HFRORJLFDO S\UDPLG RI ZK\ WKHUH DUH VRPHF VSHFLILF
RUJDQLVPVDW D VSHFLILF WURSKLF OHYHO EHFDXVH IRU WKH FULWLFV WKH
GHVLJQDWLRQ RI RUJDQLVPV LQ D S\UDPLG RI SURGXFWLYLW\ FDQ EH VRPHZKDW
DUELWUDU\MXVWDVLQUHJDUGWRWKHRUJDQLVPLQWKHIRRGFKDLQVWKHUHLVWKH
SUREOHP RI DVVLJQLQJ WKH GHFRPSRVHUV DQG GHWULWLYRUHV WR D SDUWLFXODU
WURSKLFOHYHO$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH ILFWLRQUHDOLW\ SULQFLSOH LI WKHUH LV ILFWLRQ HJ WKH
ILFWLRQDO DVSHFW RI HFRORJLFDO S\UDPLGV LQVRIDU DV WKDW WKH\ FDQ PDNH D
WURSKLF OHYHO ORRN OLNH LW FRQWDLQV PRUH HQHUJ\ WKDQ LW DFWXDOO\ GRHV
EHFDXVH IRUH[DPSOH DOOELUGVKDYHEHDNVDQG VNHOHWRQV ZKLFKGHVSLWH
WDNLQJ XS PDVV DUH QRW HDWHQ E\ WKH QH[W WURSKLF OHYHO WKHUH LV UHDOLW\
HJWKHUHDOLVWLFDVSHFWRIHFRORJLFDOS\UDPLGVLQVRIDUDVWKDWWKH\WHOOXV
VRPHWKLQJDERXWELRPDVVDQGWURSKLFOHYHO$QGWKHUHYHUVHGLUHFWLRQDOVR
KROGVWUXH
,Q UHODWLRQ WR WKH ILQLWHQHVVWUDQVILQLWHQHVV SULQFLSOH LI WKHUH LV
ILQLWHQHVVHJWKHILQLWHQXPEHURIWKHOHYHOVLQDIRRGFKDLQOHQJWKOLNH
RUIRULOOXVWUDWLRQWKHUHLVWUDQVILQLWHQHVVHJWKHWUDQVILQLWHQXPEHU
RIDOOWKHLQGLYLGXDORUJDQLVPVLQKLVWRU\WKDWKDYHHYHUH[LVWHGLQDOOWKH
IRRGFKDLQOHQJWKV$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH SUHFLVHQHVVYDJXHQHVV SULQFLSOH LI WKHUH LV
SUHFLVHQHVVHJWKHSUHFLVHLGHQWLILFDWLRQRIPDLQDGYDQWDJHVLQWKHXVH
RIWKHS\UDPLGRISURGXFWLYLW\LQWKHDUWLFOHDIRUHFLWHGWKHUHLVYDJXHQHVV
HJ WKH YDJXHQHVV LQ WKH LGHQWLILFDWLRQ RI WKH PDLQ DGYDQWDJHV LQ WKH
XVHRIWKHS\UDPLGRISURGXFWLYLW\LQWKHDUWLFOHDIRUHFLWHGVLQFHLWLVQRW
FOHDU ZK\ WKHUH PXVW EH RQO\ QRW DQG VR RQ $QG WKH UHYHUVH
GLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH VLPSOHQHVVFRPSOLFDWHGQHVV SULQFLSOH LI WKHUH LV
VLPSOHQHVV HJ WKH UHODWLYHO\ VLPSOH DQDO\VLV RI IRRG FKDLQV DQG
HFRORJLFDO S\UDPLG E\ WKH DGYRFDWHV WKHUH LV FRPSOLFDWHGQHVV HJ WKH
UHODWLYHO\ PRUH FRPSOLFDWHG DQDO\VLV RI IRRG FKDLQV DQG HFRORJLFDO
S\UDPLG E\ FKDOOHQJLQJ WKH FODLPV DQG DVVXPSWLRQV DV VKRZQ LQ WKH
SUREOHPVSRLQWHGRXWE\WKHFULWLFVDVFLWHG$QGWKHUHYHUVHGLUHFWLRQDOVR
KROGVWUXH
,QUHODWLRQWRWKHRSHQQHVVKLGGHQQHVVSULQFLSOHLIWKHUHLVRSHQQHVV
HJ WKH RSHQ H[SORUDWLRQ RI WKH UHODWLRQVKLS EHWZHHQ ELRPDVV DQG
WURSKLFOHYHOLQWKHVWXG\RIIRRGFKDLQVDQGHFRORJLFDOS\UDPLGWKHUHLV
KLGGHQQHVVHJWKHKLGGHQELDVLQWKHVWXG\RIIRRGFKDLQVDQGHFRORJLFDO
S\UDPLG EHFDXVH IRU WKH FULWLFV WKH GHVLJQDWLRQ RI RUJDQLVPV LQ D
S\UDPLG RI SURGXFWLYLW\ FDQ EH VRPHZKDW DUELWUDU\ MXVW DV LQ UHJDUG WR
&KDSWHU,QJUHGLHQWVDQGWKHLU7ZLQ4XDOLWLHV
WKH RUJDQLVP LQ WKH IRRG FKDLQV WKHUH LV WKH SUREOHP RI DVVLJQLQJ WKH
GHFRPSRVHUV DQG GHWULWLYRUHV WR D SDUWLFXODU WURSKLF OHYHO $QG WKH
UHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHGHQVHQHVVHPSWLQHVVSULQFLSOHLIWKHUHLVGHQVHQHVV
HJWKHUHODWLYHO\GHQVHUFRQFHQWUDWLRQRIRUJDQLVPVDWWKHORZHVWWURSKLF
>IHHGLQJ@OHYHOVLQIRRGFKDLQVWKHUHLVHPSWLQHVVHJWKHUHODWLYHO\OHVV
GHQVH RU PRUH HPSW\ FRQFHQWUDWLRQ RI RUJDQLVPV DW WKH KLJKHVW WURSKLF
>IHHGLQJ@OHYHOVLQIRRGFKDLQV$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHFKDQJHFRQVWDQF\SULQFLSOHLIWKHUHLVFKDQJHHJ
WKHHYHUQHZZD\VWRVWXG\WKHUHODWLRQVKLSVDPRQJGLIIHUHQWRUJDQLVPVLQ
QDWXUH DV VKRZQ LQ WKH VWXG\ RI IRRG FKDLQV DQG HFRORJLFDO S\UDPLG
WKHUHLVFRQVWDQF\HJWKHHYHUFRQVWDQWH[LVWHQFHRIGLIIHUHQWSUREOHPV
LQWKHHYHUQHZZD\VWRVWXG\WKHUHODWLQVKLSVDPRQJGLIIHUHQWRUJDQLVPV
DV VKRZQ LQ WKH SUREOHPV ZLWK WKH VWXG\ RI IRRG FKDLQV DQG HFRORJLFDO
S\UDPLG SRLQWHG RXW E\ WKH FULWLFV $QG WKH UHYHUVH GLUHFWLRQ DOVR KROGV
WUXH
,QUHODWLRQWRWKHRUGHUFKDRVSULQFLSOHLIWKHUHLVRUGHUHJWKHPRUH
RU OHVV RUGHUO\ UHDOLW\ RI IRRG FKDQV DQG HFRORJLFDO S\UDPLG LI ORRNHG
IURP WKH YDQWDJH SRLQW RI WKH DFDGHPLF GHVLJQDWLRQ RI RUJDQLVPV LQ D
S\UDPLG RI SURGXFWLYLW\ RU RI WKH GHFRPSRVHUV DQG GHWULWLYRUHV DW D
SDUWLFXODU WURSKLF OHYHO WKHUH LV FKDRV HJ WKH PRUH RU OHVV FKDRWLF
UHDOLW\RI IRRGFKDQVDQGHFRORJLFDOS\UDPLGLIORRNHGIURPWKH YDQWDJH
SRLQW RI WKH FULWLFV ZKR ZDUQ XV WKDW WKH GHVLJQDWLRQ RI RUJDQLVPV LQ D
S\UDPLG RI SURGXFWLYLW\ FDQ EH DUELWUDU\ MXVW DV LQ UHJDUG WR WKH
RUJDQLVP LQ WKH IRRG FKDLQV WKHUH LV WKH SUREOHP RI DVVLJQLQJ WKH
GHFRPSRVHUV DQG GHWULWLYRUHV WR D SDUWLFXODU WURSKLF OHYHO $QG WKH
UHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH VORZQHVVTXLFNQHVV SULQFLSOH LI WKHUH LV VORZQHVV
HJWKHUHODWLYHO\VORZHUVSHHGRIWKHUHSURGXFWLRQRIKHWHURWURSKVVXFK
DVILVKDQGLQVHFWVDWWKHKLJKHUWURSKLFOHYHOWKHUHLVTXLFNQHVVHJWKH
UHODWLYHO\TXLFNHUVSHHGRIWKHUHSURGXFWLRQRISK\WRSODQNWRQZKLFKDUH
WKHPDMRUSURGXFHUVDWWKHORZHVWWURSKLFOHYHO$QGWKHUHYHUVHGLUHFWLRQ
DOVRKROGVWUXH
,QUHODWLRQWRWKHH[SDQVLRQFRQWUDFWLRQSULQFLSOHLIWKHUHLVH[SDQVLRQ
HJWKHUHODWLYHH[SDQVLRQRIWKHQXPEHURIRUJDQLVLPVDWORZHUWURSKLF
OHYHOV WKHUH LV FRQWUDFWLRQ HJ WKH UHODWLYH GHFOLQH RI WKH QXPEHU RI
RUJDQLVLPVDWKLJKHUWURSKLFOHYHOV:.L$QGWKHUHYHUVHGLUHFWLRQ
DOVRKROGVWUXH
,Q UHODWLRQ WR WKH WKHRU\SUD[LV SULQFLSOH LI WKHUH LV WKHRU\ HJ WKH
WKHRUHWLFDOFRQVWUXFWLRQRIIRRGFKDLQVLQHFRORJ\WKHUHLVSUD[LVHJ
WKH SUDFWLFDO DSSOLFDWLRQ RI IRRG FKDLQV LQ HFRORJ\ WR WKH ILHOG RI
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
HFRWR[LFRORJ\ IRU WKH VWXG\ RI WKH SDWKZD\V DQG ELRPDJQLILFDWLRQ RI
HQYLURQPHQWDO FRQWDPLQDQWV :. L ( 2GXP $QG WKH
UHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHFRQYHQWLRQQRYHOW\SULQFLSOHLIWKHUHLVFRQYHQWLRQ
HJWKHFRQYHQWLRQDOZLVGRPDERXWIRRGFKDLQVDQGHFRORJLFDOS\UDPLG
WKHUH LV QRYHOW\ HJ WKH DOWHUQDWLYH QRYHO FKDOOHQJH WR WKH FRQYHQWLRQDO
ZLVGRPDERXW IRRGFKDLQVDQGHFRORJLFDOS\UDPLGE\WKH QHZLGHDWKDW
DVWKHFULWLFVSRLQWRXWELRPDVVS\UDPLGVFDQEHPLVOHDGLQJDQGDUELWUDU\
$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH HYROXWLRQWUDQVIRUPDWLRQ SULQFLSOH LI WKHUH LV
HYROXWLRQHJWKHQDWXUDOHYROXWLRQRIRUJDQLVPVWROLYHDWWKHLUVSHFLILF
WURSKLF OHYHOV LQ WKH VWDWH RI QDWXUH WKHUH LV WUDQVIRUPDWLRQ HJ WKH
WHFKQLFDO WUDQVIRUPDWLRQ RI KXPDQV WR XQGHUVWDQG WKHLU VSHFLILF WURSKLF
OHYHOV LQ QDWXUH E\ WKH LQYHQWLRQ RI WKH VWXGLHV DERXW IRRG FKDLQ DQG
HFRORJLFDOS\UDPLG$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHV\PPHWU\DV\PPHWU\SULQFLSOHLIWKHUHLVV\PPHWU\
HJWKHH[LVWHQFHRIGLIIHUHQWWURSKLFOHYHOVLQHFRORJLFDOS\UDPLGWKHUH
LVDV\PPHWU\HJKXPDQVFDQFRQVXPHWKRVHDWWKHORZHUWURSKLFOHYHOV
EXWWKRVHDWWKHORZHVWWURSKLFOHYHOWKDWLVWKHSURGXFHUVFDQQRWFRQVXPH
KXPDQV$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHVRIWQHVVKDUGQHVVSULQFLSOHLIWKHUHLVVRIWQHVVHJ
SLJVFDQ PDNHORYH ZLWKHDFKRWKHUWKHUHLV KDUGQHVVHJKXPDQVFDQ
NLOODQGHDWSLJV$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH VHULRXVQHVVSOD\IXOQHVV SULQFLSOH LI WKHUH LV
VHULRXVQHVV HJ WKH VHULRXV EXVLQHVV RI WKH UHVHDUFKHUV WR XQGHUVWDQG
IRRGFKDLQVDQGHFRORJLFDOS\UDPLGWKHUHLVSOD\IXOQHVVHJWKHSOD\IXO
SDUWRIWKHUHVHDUFKHUVWRXQGHUVWDQGIRRGFKDLQVDQGHFRORJLFDOS\UDPLG
ZKHQ WKH\ SOD\ DURXQG ZLWK GLIIHUHQW GHVLJQDWLRQV RI RUJDQLVPV LQ D
S\UDPLG RI SURGXFWLYLW\ RYHU WLPH ZKLFK IRU WKH FULWLFV FDQ EH
VRPHZKDWDUELWUDU\DQGPLVOHDGLQJ$QGWKHUHYHUVHGLUHFWLRQDOVRKROGV
WUXH
,QUHODWLRQWRWKHDFWLYHQHVVLQDFWLYHVVSULQFLSOHLIWKHUHLVDFWLYHQHVV
HJ WKH DOHUWQHVV RI WKRVH RUJDQLVPV DW WKH ORZHU WURSKLF OHYHOV WR GR
WKHLU EHVW WR DYRLG EHLQJ HDWHQ WKHUH LV LQDFWLYHQHVV HJ WKH UHODWLYH
LQDFWLYHQHVVRIWKRVHRUJDQLVPVDWWKHORZHUWURSKLFOHYHOVZKLFKDUHWLUHG
VOHHS\VLFNRUROGZKHQWKH\EHFRPHYXOHUDEOHWREHHDWHQ
,QUHODWLRQWRWKHVHOIQHVVRWKHUQHVVSULQFLSOHLIWKHUHLVVHOIQHVVHJ
WKH WHQGHQF\ WR EH PRVWO\ FHQWHUHG RQ RQHV VHOI RU JURXS DV VKRZQ LQ
GLIIHUHQW RUJDQLVPV ZKLFK WU\ WR HDW WKRVH DW WKH ORZHU WURSKLF OHYHOV IRU
VXUYLYDO WKHUH LV RWKHUQHVV HJ WKH WHQGHQF\ WR EH PRVWO\ FHQWHUHG RQ
RWKHUV DV VKRZQ LQ VRPH RUJDQLVPV ZKLFK FDQ VDFULILFH WKHPVHOYHV IRU
&KDSWHU,QJUHGLHQWVDQGWKHLU7ZLQ4XDOLWLHV
RWKHUVOLNH LQFOXVLYHILWQHVVLQWKHHYROXWLRQRIDOWUXLVPLQWKHVWDWHRI
QDWXUH:.T$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH UHJUHVVLRQSURJUHVVLRQ SULQFLSOH LI WKHUH LV
UHJUHVVLRQ HJ WKH UHJUHVVLRQ PDGH E\ WKH VWXG\ RI IRRG FKDLQV DQG
HFRORJLFDOS\UDPLGDVVKRZQLQWKHSUREOHPVSRLQWHGRXWE\WKHFULWLFV
WKHUH LV SURJUHVVLRQ HJ WKH SURJUHVV PDGH E\ WKH VWXG\ RI IRRG FKDLQV
DQG HFRORJLFDO S\UDPLG DV VKRZQ LQ WKH FRQWULEXWLRQ WR WKH EHWWHU
XQGHUVWDQGLQJ RI ELRPDVV DQG ELRPDVV SURGXFWLYLW\ DIRUHFLWHG $QG WKH
UHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH VDPHGLIIHUHQFH SULQFLSOH LI WKHUH LV VLPLODULW\ LQ
RXWFRPH HJ WKH FRQWULEXWLRQ WR WKH PROGLQJ DQG FRQWURO RI EHOLHIV
YDOXHVDQGEHKDYLRUVUHJDUGOHVVRIZKHWKHUWKLVEHGRQHE\WKHEHOLHILQ
IRRGFKDLQVDQGHFRORJLFDOS\UDPLGRUE\WKHEHOLHILQWKHJUHDWFKDLQRI
EHLQJ WKHUH LV GLIIHUHQFH LQ RXWFRPH HJ WKH FRQWULEXWLRQ WR WKH
PROGLQJDQGFRQWURORIEHOLHIVYDOXHVDQGEHKDYLRUVE\WKHEHOLHILQIRRG
FKDLQVDQGHFRORJLFDOS\UDPLGIRUDUHODWLYHO\PRUHVHFXODUZRUOGYLHZ
EXW WKH FRQWULEXWLRQ WR WKH PROGLQJ DQG FRQWURO RI EHOLHIV YDOXHV DQG
EHKDYLRUVE\WKHEHOLHILQWKHJUHDWFKDLQRIEHLQJIRUDUHODWLYHO\PRUH
UHOLJLRXV ZRUOGYLHZ :. U $QG WKH UHYHUVH GLUHFWLRQ DOVR KROGV
WUXH
,QUHODWLRQWRWKHVWDELOLW\UHDFWLRQSULQFLSOHLIWKHUHLVVWDELOLW\HJ
WKH UHODWLYHO\ PRUH VWDEOH FRQGLWLRQ RI WKH EHOLHI LQ WKH JUHDW FKDLQ RI
EHLQJ LQ WKH ROGHU GD\V ZKHQ 3ODWR $ULVWRWOH DQG RWKHUV DGYRFDWHG LW
WKHUHLVUHDFWLRQHJWKHEHOLHILQWKHJUHDWFKDLQRIEHLQJLQWKHROGHU
GD\V WKHQ OHG WR IXUWKHU FKDQJHV ODWHU RQ ZKHQ QRZDGD\V WKHUH LV WKH
DOWHUQDWLYHEHOLHILQIRRGFKDLQVDQGHFRORJLFDOS\UDPLG:.U$QG
WKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
$QGLQUHODWLRQWRWKHIXQFWLRQDOLW\QRQIXQFWLRQDOLW\SULQFLSOHLIWKHUH
LVIXQFWLRQDOLW\HJWKHSUHVHQFHRIDFWLRQIRUZKLFKVRPHWKLQJLVILWWHG
DVVKRZQLQWKHVWXG\RIELRPDVVS\UDPLGVZKHQELRPDVVLVWRFRQWULEXWH
WRWKHRYHUDOOIORZRIHQHUJ\WKHUHLVQRQIXQFWLRQDOLW\HJWKHUHODWLYH
ODFN RI DFWLRQ IRU ZKLFK VRPHWKLQJ LV ILWWHG DV VKRZQ LQ WKH VWXG\ RI
ELRPDVV S\UDPLGV ZKHQ DOO ELUGV KDYH EHDNV DQG VNHOHWRQV ZKLFK
GHVSLWHWDNLQJXS PDVVDUHQRWHDWHQE\WKH QH[WWURSKLFOHYHOVR LQD
S\UDPLGRIELRPDVVWKHVNHOHWRQVDQGEHDNVZRXOGVWLOOEHTXDQWLILHGEXW
WKH\ GR QRW FRQWULEXWH WR WKH RYHUDOO IORZ RI HQHUJ\ $QG WKH UHYHUVH
GLUHFWLRQDOVRKROGVWUXH
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
,QJUHGLHQWV1DWXUHDQG5DZ)RRG
$ JRRG ZD\ WR HYDOXDWH WKH SRVVLELOLW\ RU LPSRVVLELOLW\ DQG
GHVLUDELOLW\ RU XQGHVLUDELOLW\ RI LQJUHGLHQWV IURP WKH SHUVSHFWLYH RI
QDWXUHLVWRH[SORUHLQJUHGLHQWVQDWXUHDQGUDZIRRG
7KH WHUP UDZ IRRG UHIHUV WR IRRG ZKLFK LV XQSURFHVVHG DQG
XQFRRNHGDQG UDZ IRRGLVP UHIHUV WR WKH SUDFWLFH RI FRQVXPLQJ
XQFRRNHG XQSURFHVVHG DQG RIWHQ RUJDQLF IRRGV DV D ODUJH SHUFHQWDJH RI
WKHGLHW'HSHQGLQJRQWKHW\SHRIOLIHVW\OHDQGUHVXOWVGHVLUHGUDZ IRRG
GLHWV PD\ LQFOXGH D VHOHFWLRQ RI UDZ IUXLWV YHJHWDEOHV QXWV VHHGV
LQFOXGLQJ VSURXWHG ZKROH JUDLQV VXFK DV JDED ULFH HJJV ILVK VXFK DV
VDVKLPLPHDWVXFKDVFDUSDFFLRDQGQRQSDVWHXUL]HGQRQKRPRJHQL]HG
GDLU\SURGXFWVVXFKDVUDZPLONUDZPLONFKHHVHDQGUDZPLON\RJXUW
:.V&:RQJ
9DULHWLHVRI5DZ)RRGLVP
5DZIRUGLVPFDQFRPHLQDOOVKDSHVDQGVL]HVDQGKHUHDIWHUDUHWKUHH
PDLQH[DPSOHVIRULOOXVWUDWLRQDVVXPPDUL]HGLQ7DEOH
D5DZ9HJDQLVP
7KH ILUVW YHUVLRQ RI UDZ IRRGLVP WR EH LQWURGXFHG KHUH LV UDZ
YHJDQLVP
5DZ YHJDQLVP UHIHUV WR D UDZ YHJDQ GLHW ZKLFK FRQVLVWV RI
XQSURFHVVHGUDZSODQWIRRGVWKDWKDYHQRWEHHQKHDWHGDERYH&
) 5DZ YHJDQV VXFK DV 'RXJODV *UDKDP >@ EHOLHYH WKDW IRRGV
FRRNHG DERYH WKLV WHPSHUDWXUH KDYH ORVW PXFK RI WKHLU QXWULWLRQDO YDOXH
DQGDUHOHVVKHDOWKIXORUHYHQKDUPIXOWRWKHERG\:.V
7KHDGYRFDWHVRIUDZYHJDQLVPDUJXHWKDWUDZRUOLYLQJIRRGVKDYH
QDWXUDOHQ]\PHVZKLFKDUHFULWLFDOLQEXLOGLQJSURWHLQVDQGUHEXLOGLQJWKH
ERG\DQGWKDWKHDWLQJWKHVHIRRGVNLOOVWKHQDWXUDOHQ]\PHVDQGFDQOHDYH
WR[LQV EHKLQG7\SLFDO IRRGV LQFOXGHG LQ UDZ IRRG GLHWV DUH IUXLWV
YHJHWDEOHVQXWVVHHGVDQGVSURXWHGJUDLQVDQGOHJXPHV:.V
,Q DQ\ HYHQW DPRQJ UDZ YHJDQV WKHUH DUH VRPH VXEJURXSV VXFK DV
IUXLWDULDQV MXLFHDULDQV RU VSURXWDULDQV )UXLWDULDQV HDW SULPDULO\ RU
H[FOXVLYHO\ IUXLWV EHUULHV VHHGV DQG QXWV -XLFHDULDQV SURFHVV WKHLU UDZ
SODQW IRRGV LQWR MXLFH 6SURXWDULDQV DGKHUH WR D GLHW FRQVLVWLQJ PDLQO\ RI
VSURXWHGVHHGV:.V
E5DZ9HJHWDULDQLVP
7KH VHFRQG YHUVLRQ RI UDZ IRRGLVP WR EH LQWURGXFHG KHUH LV UDZ
YHJHWDULDQLVP
&KDSWHU,QJUHGLHQWVDQGWKHLU7ZLQ4XDOLWLHV
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
%HOLHIVLQ5DZ)RRGLVP
7KHVHYDULHWLHVRIUDZIRRGLVPDVLGHWKHUHDUHEDVLFEHOLHIVKHOGE\
UDZ IRRGLVWV LQ JHQHUDO DQG KHUHDIWHU DUH VRPH JRRG H[DPSOHV DV
VXPPDUL]HG LQ 7DEOH :. V 0 %LWRPVN\ ' %HQGHU
$0RUJDQ5+LJKILHOG
6RPHUDZIRRGLVWVEHOLHYHWKDWGLJHVWLYHHQ]\PHVLQUDZIRRGVVXFK
DVDP\ODVHVSURWHDVHVDQGOLSDVHVDLGGLJHVWLRQ+HDWLQJIRRGDERYH
)DKUHQKHLW &HOVLXV GHJUDGHV RU GHVWUR\V WKHVH
HQ]\PHVLQIRRG
5DZIRRGVLQFOXGHEDFWHULDDQGRWKHUPLFURRUJDQLVPVWKDWDIIHFWWKH
LPPXQH V\VWHP DQG GLJHVWLRQ E\ SRSXODWLQJ WKH GLJHVWLYH WUDFW ZLWK
EHQHILFLDO JXW IORUD ,Q DGGLWLRQ PDQ\ UDZIRRGLVWV SDUWLFXODUO\
SULPDOGLHWHUV DUH EHOLHYHUV LQ WKH K\JLHQH K\SRWKHVLV D FRQFHSW
ZKLFK IRFXVHV RQ WKH KHDOWK EHQHILWV RI H[SRVXUH WR SDUDVLWHV DQG
EDFWHULD
5DZ IRRGV KDYH KLJKHU QXWULHQW YDOXHV WKDQ IRRGV ZKLFK KDYH EHHQ
FRRNHG
0RVWUDZIRRGLVWVEHOLHYHSURFHVVHGIRRGDQGFRQYHQLHQFHIRRGRIWHQ
FRQWDLQ H[FLWRWR[LQV VXFK DV IODYRU HQKDQFHUV ZKLFK FDQ FDXVH
H[FLWRWR[LFLW\ )RRGV ZLWK DGGHG FKHPLFDOV SUHVHUYDWLYHV DGGLWLYHV
FRORXULQJ DJHQWVG\HV RI DQ\ NLQG DUH IURZQHG XSRQ E\ PRVW UDZ
IRRGLVWV
5DZ IRRGLVWV EHOLHYH WKDW UDZ IRRGV DUH WKH LGHDO IRRG IRU KXPDQ
FRQVXPSWLRQ DQG WKH EDVLV RI D UDZ IRRG OLIHVW\OH ,UULWDQWV RU
VWLPXODQWVOLNHFRIIHHDOFRKRODQGWREDFFRDUHUHFRPPHQGHGDJDLQVW
$OVRKHDWHGIDWVDQGSURWHLQVOLNHIULHGRLOVDQGURDVWHGQXWVDUHWREH
DYRLGHGRQDUDZIRRGGLHWDVWKH\DUHGHHPHGE\UDZIRRGLVWVWREH
FDUFLQRJHQLF
:LOGIRRGVIROORZHGE\RUJDQLFZKROHIRRGVDUHPRUHQXWULWLRXVWKDQ
FRQYHQWLRQDOO\GRPHVWLFDWHGIRRGVRULQGXVWULDOO\SURGXFHGIRRGV
&RRNHG IRRGV FRQWDLQ KDUPIXO WR[LQV ZKLFK FDQ FDXVH FKURQLF
GLVHDVH DQG RWKHU SUREOHPV +HDWLQJ RLOV DQG IDWV FDQ SURGXFH WUDFH
DPRXQWV RI WUDQV IDWV &RRNLQJ IRRGV SURGXFHV DGYDQFHG JO\FDWLRQ
HQGSURGXFWV
JO\FRWR[LQV
5DZIRRGVVXFKDVIUXLWVDQGYHJHWDEOHVDUHKLJKLQDQWLR[LGDQWVDQG
UDZIRRGLVWV EHOLHYH WKH\ FDQ KHOS WR VWLIOH VLJQV RI DJLQJ 'U -RHO
)XKUPDQ DXWKRU RI
(DW 7R /LYH
VD\V WKDW XQFRRNHG FUXFLIHURXV
YHJHWDEOHVKDYHWKHPRVWSRZHUIXODQWLFDQFHUHIIHFWVRIDOOIRRGV+H
DOVR VD\V WKDW PRVW RI WKH SK\WRQXWULHQWV IXQFWLRQ DV DQWLR[LGDQWV LQ
WKH ERG\ PHDQLQJ WKH\ QHXWUDOL]H IUHH UDGLFDOV UHQGHULQJ WKHP
&KDSWHU,QJUHGLHQWVDQGWKHLU7ZLQ4XDOLWLHV
KDUPOHVV DQG UHGXFLQJ FDQFHU ULVN 7KLV SURSHUW\ IRXQG LQ DONDOLQH
OLYLQJ IRRGV RU UDZ IRRG WKDW QHXWUDOL]H IUHH UDGLFDOV PDNHV JUHHQ
VPRRWKLHVDSRZHUIXODQWLR[LGDQWGULQN
6XUHO\ WKHUH FDQ EH RWKHU EHOLHIV VR WKH RQHV DERYH DUH LOOXVWUDWLYH QRW
H[KDXVWLYH
5HVHDUFKLQ5DZ)RRGLVP
$GYRFDWHVRIUDZIRRGLVPOLNHWRDVVHUWWKDWWKHLUFODLPVDUHEDVHGRQ
ZHOOJURXQGHGUHVHDUFKVWXGLHV
)RUH[DPSOHDFFRUGLQJWRRQHPHGLFDOWULDO
ORQJWHUPFRQVXPSWLRQ
RI D UDZSODQWIRRG GLHW LV DVVRFLDWHG ZLWK IDYRUDEOH VHUXP /'/
FKROHVWHURODQGWULJO\FHULGHV EXWDOVR ZLWKHOHYDWHGSODVPDKRPRF\VWHLQH
DQG ORZ VHUXP +'/ FKROHVWHURO
DV ZHOO DV YLWDPLQ % GHILFLHQF\
$QRWKHUVWXG\IURP*HUPDQ\IRXQGWKDWD
ORQJWHUPVWULFWUDZIRRGGLHWLV
DVVRFLDWHGZLWKIDYRXUDEOHSODVPDEHWDFDURWHQHDQGORZSODVPDO\FRSHQH
FRQFHQWUDWLRQV
$ VWXG\ PHQWLRQHG EHQHILWV RI D UDZ YHJDQ GLHW IRU
ORZHULQJ REHVLW\ DQG K\SHUWHQVLRQ $ VWXG\ KDV DOVR VKRZQ UHGXFHG
ILEURP\DOJLDV\PSWRPVIRUWKRVHRQDUDZYHJDQGLHWDV ZHOODVUHGXFHG
V\PSWRPV RI UKHXPDWRLG DUWKULWLV DFFRUGLQJ WR DQRWKHU VWXG\ :.
V&.RHEQLFN$*DUFLD-'RXJODVV..DDUWLQHQ
01HQRQHQ
$*HUPDQUHVHDUFKLQVKRZHGVLJQLILFDQWEHQHILWVLQUHGXFLQJ
EUHDVW FDQFHU ULVN ZKHQ ODUJH DPRXQWV RI UDZ YHJHWDEOH PDWWHU DUH
LQFOXGHGLQWKHGLHW7KHDXWKRUVDWWULEXWHVRPHRIWKLVHIIHFWWRKHDWODELOH
SK\WRQXWULHQWV&RORPELD8QLYHUVLW\UHVHDUFKLQVKRZHG VLJQLILFDQW
LPSURYLQJ RI PHQWDO DQG HPRWLRQDO TXDOLW\ RI OLIH IRU SDUWLFLSDQWV ZKR
XVHGUDZYHJDQGLHWLQUDZYHJDQLQVWLWXWH$QRWKHUDPHULFDQUHVHDUFKLQ
VKRZHG )LEURP\DOJLD V\QGURPH LPSURYHG LQ REVHUYDWLRQDO VWXG\
XVLQJ D PRVWO\ UDZ YHJHWDULDQ GLHW :. V . $G]HUVHQ 0
'RQDOGVRQ
6XUHO\ WKHUH FDQ EH RWKHU VWXGLHV VR WKH H[DPSOHV KHUH DUH
LOOXVWUDWLYHQRWH[KDXVWLYH
3UREOHPVZLWKWKH6WXG\RI5DZ)RRGLVP
+RZHYHU IRU WKH FULWLFV WKLV VWXG\ RI UDZ IRRGLVP KDV VRPH PDMRU
SUREOHPV &RQVLGHU IRU LOOXVWUDWLRQ D IHZ H[DPSOHV EHORZ DV
VXPPDUL]HGLQ7DEOH
)LUVWO\ RQH PDLQ FULWLFLVP RI WKH VWXG\ RI UDZ IRRGLVP LV WKDW WKH
UHDVRQVIRULWVMXVWLILFDWLRQDUHTXHVWLRQDEOH
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
)RUH[DPSOHVRPHFULWLFVDUJXHWKDWHQ]\PHVDVZLWKRWKHUSURWHLQV
FRQVXPHGLQWKHGLHWDUHGHQDWXUHGDQGHYHQWXDOO\O\VHGE\WKHGLJHVWLYH
SURFHVV UHQGHULQJ WKHP QRQIXQFWLRQDO DQG WKHUHIRUH WKLV TXHVWLRQV WKH
FODLP E\ UDZ IRRGLVWV WKDW GLJHVWLYH HQ]\PHV LQ UDZ IRRGV VXFK DV
DP\ODVHVSURWHDVHVDQGOLSDVHVDLGGLJHVWLRQ:.V
6HFRQGO\DQRWKHUPDLQFULWLFLVPRIWKHVWXG\RIUDZIRRGLVPLVWKDW
WKHSUDFWLFHFDQSURGXFHGHWULPHQWDOKHDOWKHIIHFWV
)RU LQVWDQFH IRU WKH FULWLFV FHUWDLQ VWXGLHV KDYH LQGLFDWHG
GHWULPHQWDO KHDOWK HIIHFWV VWHPPLQJ IURP UDZ YHJDQ GLHWV $ VWXG\
KDVVKRZQWKDWDUDZYHJDQGLHWLVDVVRFLDWHGZLWKDORZHUERQHGHQVLW\
2QHVWXG\RIUDZYHJDQGLHWVVKRZVDPHQRUUKHDDQGXQGHUZHLJKWQHVVLQ
ZRPHQ $QRWKHU RQH LQGLFDWHV DQ LQFUHDVHG ULVN RI GHQWDO HURVLRQ ZLWK D
UDZYHJDQGLHW:.V(&XQQLQJKDP'&XQGLII0
'RQDOGVRQ/)RQWDQD&.RHEQLFN0*DQVV
7KLUGO\ VWLOO DQRWKHU PDLQ FULWLFLVP RI WKH VWXG\ RI UDZ IRRGLVP LV
WKDWWKHSUDFWLFHFDQOHDGWRIRRGSRLVRQLQJ
)RULQVWDQFHIRRGSRLVRQLQJDWWULEXWHGWRFRQWDPLQDWHGUDZSURGXFH
KDVULVHQWHQIROGVLQFHWKHV6DODGOHWWXFHMXLFHPHORQVSURXWVDQG
EHUULHV ZHUH PRVW IUHTXHQWO\ LPSOLFDWHG LQ RXWEUHDNV 0DQ\ UDZ SODQW
IRRGV KDYH EHHQ FRQWDPLQDWHG E\ GDQJHURXV DQG HYHQ GHDGO\
PLFURRUJDQLVPV LQFOXGLQJ MDODSHxR DQG VHUUDQR SHSSHUV DOIDOID VSURXWV
DQG RWKHU VSURXWHG VHHGV JUHHQ RQLRQV VSLQDFK OHWWXFH RUDQJH MXLFH
DSSOH MXLFH DQG RWKHU XQSDVWHXUL]HG IUXLW MXLFHV :. V 6
6LYDSDODVLQJDP&'&%0DKRQ&'HQWLQJHU-
+HDWRQ*:LQWHU03DULVK
$QGIRXUWKO\DQDGGLWLRQDOPDLQFULWLFLVPRIWKHVWXG\RIUDZIRRGLVP
LVWKDWWKHSUDFWLFHFDQOHDGWRQXWULWLRQDOGHILFLHQFLHV
)RUH[DPSOHDVWXG\VXUYH\LQJSHRSOHSUDFWLFLQJUDZYHJDQGLHWVRI
YDU\LQJ LQWHQVLWLHV IRXQG WKDW VLQFH PDQ\ UDZ IRRG GLHWHUV ZHUH
XQGHUZHLJKWDQGH[KLELWHGDPHQRUUKRHD
DYHU\VWULFWUDZIRRGGLHWFDQQRW
EHUHFRPPHQGHGRQDORQJWHUPEDVLV
:.V&.RHEQLFN
%H\RQG5DZ)RRGLVP
+RZHYHU WKHVH FULWLFLVPV RI UDZ IRRGLVP DUH QRW PHDQW WR UHMHFW LWV
XVHIXOQHVVEXWVHUYHWRVKRZXVWKHWZRRSSRVLQJVLGHVRIWKHGHEDWHVXFK
WKDWWKHSRVVLELOLW\RULPSRVVLELOLW\DQGGHVLUDELOLW\RUXQGHVLUDELOLW\RI
LQJUHGLHQWV IURP WKH SHUVSHFWLYH RI QDWXUH ZLWK LQJUHGLHQWV QDWXUH DQG
UDZ IRRG DV D FDVH VWXG\ KHUH DUH QRW WR WKH H[WHQW WKDW WKH UHVSHFWLYH
GHIHQGHUVZRXOGOLNHXVWREHOLHYH
,Q DGGLWLRQ WKH DQDO\VLV RI LQJUHGLHQWV QDWXUH DQG UDZ IRRG FDVWV D
EULJKWOLJKWRQWKHRQWRORJLFDOSULQFLSOHVLQH[LVWHQWLDOGLDOHFWLFVDQGJRRG
&KDSWHU,QJUHGLHQWVDQGWKHLU7ZLQ4XDOLWLHV
H[DPSOHVLQFOXGHWKHIRUPDOQHVVLQIRUPDOQHVVSULQFLSOHWKHDEVROXWHQHVV
UHODWLYHQHVV SULQFLSOH WKH SDUWLDOLW\WRWDOLW\ SULQFLSOH WKH SUHGLFWDELOLW\
XQSUHGLFWDELOLW\ SULQFLSOH WKH H[SOLFDELOLW\LQH[SOLFDELOLW\ SULQFLSOH WKH
ILFWLRQUHDOLW\ SULQFLSOH WKH ILQLWHQHVVWUDQVILQLWHQHVV SULQFLSOH WKH
SUHFLVHQHVVYDJXHQHVV SULQFLSOH WKH VLPSOHQHVVFRPSOLFDWHGQHVV
SULQFLSOH WKH RSHQQHVVKLGGHQQHVV SULQFLSOH WKH GHQVHQHVVHPSWLQHVV
SULQFLSOH WKH FKDQJHFRQVWDQF\ SULQFLSOH WKH RUGHUFKDRV SULQFLSOH WKH
VORZQHVVTXLFNQHVV SULQFLSOH WKH H[SDQVLRQFRQWUDFWLRQ SULQFLSOH WKH
WKHRU\SUD[LV SULQFLSOH WKH FRQYHQWLRQQRYHOW\ SULQFLSOH WKH HYROXWLRQ
WUDQVIRUPDWLRQSULQFLSOHWKHV\PPHWU\DV\PPHWU\SULQFLSOHWKHVRIWQHVV
KDUGQHVV SULQFLSOH WKH VHULRXVQHVVSOD\IXOQHVV SULQFLSOH WKH DFWLYHQHVV
LQDFWLYHVV SULQFLSOH WKH VHOIQHVVRWKHUQHVV SULQFLSOH WKH UHJUHVVLRQ
SURJUHVVLRQSULQFLSOHWKHVDPHGLIIHUHQFHSULQFLSOHWKH VWDELOLW\UHDFWLRQ
SULQFLSOHDQGWKHIXQFWLRQDOLW\QRQIXQFWLRQDOLW\SULQFLSOH
)RU LQVWDQFH LQ UHODWLRQ WR WKH IRUPDOQHVVLQIRUPDOQHVV SULQFLSOH LI
WKHUHLVIRUPDOQHVVHJWKHIRUPDOORJLFDOUHTXLUHPHQWRIVRXQGQHVVDQG
FRPSOHWHQHVVLQDV\VWHPRILGHDVDVLQWKHVWXGLHVRQUDZIRRGLVPWKHUH
LV LQIRUPDOQHVV HJ WKH QRQIRUPDO H[LVWHQFH RI XQVRXQGQHVV DQG
LQFRPSOHWHQHVVLQWKHVWXGLHVRQUDZIRRGLVPDVVKRZQLQWKHFULWLFLVPV
WKDWWKHUHDVRQVIRULWVMXVWLILFDWLRQDUHTXHVWLRQDEOHWKDWWKHSUDFWLFHFDQ
SURGXFH GHWULPHQWDO KHDOWK HIIHFWV WKDW WKH SUDFWLFH FDQ OHDG WR IRRG
SRLVRQLQJ WKDW WKH SUDFWLFH FDQ OHDG WR QXWULWLRQDO GHILFLHQFLHV HWF
$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH DEVROXWHQHVVUHODWLYHQHVV SULQFLSOH LI WKHUH LV
DEVROXWHQHVVHJWKHDEVROXWHYLHZRIUDZYHJDQLVWVLQUHJDUGWRDUDZ
YHJDQGLHWWKHUHLVUHODWLYHQHVVHJZKDWLVULJKWIRUUDZYHJDQLVWVLQ
UHJDUGWRDUDZYHJDQGLHWLVQRWQHFHVVDULO\VRIRUWKHFULWLFVZKRDUJXH
LQVWHDGWKDWWKHSUDFWLFHFDQSURGXFHGHWULPHQWDOKHDOWKHIIHFWVDQGFDQ
OHDGWRIRRGSRLVRQLQJ$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHSDUWLDOLW\WRWDOLW\SULQFLSOHLIWKHUHLVSDUWLDOLW\HJ
WKH SDUWLDO YLHZ RI UDZ YHJDQLVWV LQ UHJDUG WR UDZ IRRG WKHUH LV WRWDOLW\
HJ WKH PRUH KROLVWLF YLHZ RI UDZ IRRG VXFK WKDW WKH ZKROH LV QRW WKH
VXPRILWVSDUWVWKDWLVLWFDQQRWEHUHGXFHGWRWKHVXPRIRSSRVLQJYLHZV
OLNH UDZ YHJDQLVWV UDZ YHJHWDULDQV UDZ DQLPDO IRRGLVWV DQG WKH FULWLFV
VLQFHWKHUHZLOOHPHUJHQHZYLHZVLQWKHIXWXUHQRW\HWNQRZQWRGD\MXVWV
WKHUHDUHDOUHDG\HYHUQHZVWXGLHVZKLFKFKDOOHQJHWKHYLHZVRISUHYLRXV
RQHVQRZDGD\V$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH SUHGLFWDELOLW\XQSUHGLFWDELOLW\ SULQFLSOH LI WKHUH LV
SUHGLFWDELOLW\ HJ WKH SUHGLFWDEOH WHQGHQF\ RI WKRVH LQ UDZ IRRGLVP WR
DGYRFDWHUDZIRRGGLHWVWKHUHLVXQSUHGLFWDELOLW\HJWKHPRUHGLIILFXOW
WDVN WR SUHGLFW H[DFWO\ WKH H[WHQW WR ZKLFK D SDUWLFXODU YHUVLRQ RI UDZ
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
IRRGLVP ZLOO UHPDLQ LQIOXHQWLDO LQ D VSHFLILF IXWXUH KLVWRULFDO HUD VLQFH
GLIIHUHQWYHUVLRQVWHQGWRULVHDQGIDOORYHUWLPH$QGWKHUHYHUVHGLUHFWLRQ
DOVRKROGVWUXH
,Q UHODWLRQ WR WKH H[SOLFDELOLW\LQH[SOLFDELOLW\ SULQFLSOH LI WKHUH LV
H[SOLFDELOLW\ HJ WKH H[SODQDWLRQ E\ WKH DGYRFDWHV RI UDZ IRRGLVP WKDW
GLJHVWLYHHQ]\PHVLQUDZIRRGV>VXFKDVDP\ODVHVSURWHDVHVDQGOLSDVHV@
DLG GLJHVWLRQ WKHUH LV LQH[SOLFDELOLW\ HJ WKH ODFN RI VXIILFLHQW
H[SODQDWLRQE\ WKHDGYRFDWHV RIUDZIRRGLVPDERXWWKHFODLPFRQFHUQLQJ
GLJHVWLYH HQ]\PHV VLQFH IRU WKH FULWLFV HQ]\PHV DV ZLWK RWKHU
SURWHLQV FRQVXPHG LQ WKH GLHW DUH GHQDWXUHG DQG HYHQWXDOO\ O\VHG E\ WKH
GLJHVWLYH SURFHVV UHQGHULQJ WKHP QRQIXQFWLRQDO $QG WKH UHYHUVH
GLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH ILFWLRQUHDOLW\ SULQFLSOH LI WKHUH LV ILFWLRQ HJ WKH
ILFWLRQDODVSHFWRIUDZIRRGLVPLQVRIDUDVFHUWDLQVWXGLHVKDYHLQGLFDWHG
GHWULPHQWDO KHDOWK HIIHFWV VWHPPLQJ IURP UDZ YHJDQ GLHWV DV DIRUH
GHVFULEHGWKHUHLVUHDOLW\HJWKHUHDOLVWLFDVSHFWRIUDZIRRGLVPLQVRIDU
DV WKHUH DUH KHDOWK EHQHILWV DV VKRZQ LQ D *HUPDQ UHVHDUFK LQ
ZKLFK VKRZHG VLJQLILFDQW EHQHILWV LQ UHGXFLQJ EUHDVW FDQFHU ULVN ZKHQ
ODUJHDPRXQWVRIUDZYHJHWDEOHPDWWHUDUHLQFOXGHGLQWKHGLHW$QGWKH
UHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH ILQLWHQHVVWUDQVILQLWHQHVV SULQFLSOH LI WKHUH LV
ILQLWHQHVV HJ WKH ILQLWH QXPEHU RI WKH FDWHJRULHV RI UDZ SODQW IRRGV
ZKLFK KDYH EHHQ FRQWDPLQDWHG E\ GDQJHURXV DQG HYHQ GHDGO\
PLFURRUJDQLVPV LQFOXGLQJ MDODSHxR DQG VHUUDQR SHSSHUV DOIDOID VSURXWV
DQG RWKHU VSURXWHG VHHGV JUHHQ RQLRQV VSLQDFK OHWWXFH RUDQJH MXLFH
DSSOH MXLFH DQG RWKHU XQSDVWHXUL]HG IUXLW MXLFHV WKHUH LV WUDQVILQLWHQHVV
HJWKHWUDQVILQLWHQXPEHURIDOOWKHLQGLYLGXDOSLHFHVRIUDZSODQWIRRGV
LQ KLVWRU\ WKDW KDYH HYHU H[LVWHG OLNH MDODSHxR DQG VHUUDQR SHSSHUV
DOIDOID VSURXWV DQG RWKHU VSURXWHG VHHGV JUHHQ RQLRQV VSLQDFK OHWWXFH
RUDQJH MXLFH DSSOH MXLFH DQG RWKHU XQSDVWHXUL]HG IUXLW MXLFHV $QG WKH
UHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH SUHFLVHQHVVYDJXHQHVV SULQFLSOH LI WKHUH LV
SUHFLVHQHVV HJ WKH SUHFLVH LGHQWLILFDWLRQ RI WKUHH YHUVLRQV RI UDZ
IRRGLVPLQWKHDUWLFOHDIRUHFLWHGWKHUHLVYDJXHQHVVHJWKHYDJXHQHVVLQ
WKH LGHQWLILFDWLRQ RI WKH WKUHH YHUVLRQV RI UDZ IRRGLVP LQ WKH DUWLFOH
DIRUHFLWHGVLQFHLWLVQRWFOHDUZK\WKHUHPXVWEHRQO\QRWDQGVR
RQ$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH VLPSOHQHVVFRPSOLFDWHGQHVV SULQFLSOH LI WKHUH LV
VLPSOHQHVV HJ WKH UHODWLYHO\ VLPSOH DQDO\VLV RI UDZ IRRGLVP E\ WKH
DGYRFDWHVWKHUHLVFRPSOLFDWHGQHVVHJWKHUHODWLYHO\PRUHFRPSOLFDWHG
DQDO\VLV RI UDZ IRRGLVP E\ FKDOOHQJLQJ WKH FODLPV DQG DVVXPSWLRQV DV
&KDSWHU,QJUHGLHQWVDQGWKHLU7ZLQ4XDOLWLHV
VKRZQLQWKHSUREOHPVSRLQWHGRXWE\WKHFULWLFVDVFLWHG$QGWKHUHYHUVH
GLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHRSHQQHVVKLGGHQQHVVSULQFLSOHLIWKHUHLVRSHQQHVV
HJ WKH RSHQ H[SORUDWLRQ RI WKH UHODWLRQVKLS EHWZHHQ UDZ IRRG DQG
GLJHVWLYHHQ]\PHVLQUDZIRRGLVPWKHUHLVKLGGHQQHVVHJWKHKLGGHQ
ELDV LQ UDZ IRRGLVP VLQFH WKH FULWLFV KDG SRLQWHG RXW WKDW HQ]\PHV DV
ZLWK RWKHU SURWHLQV FRQVXPHG LQ WKH GLHW DUH GHQDWXUHG DQG HYHQWXDOO\
O\VHG E\ WKH GLJHVWLYH SURFHVV UHQGHULQJ WKHP QRQIXQFWLRQDO $QG WKH
UHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHGHQVHQHVVHPSWLQHVVSULQFLSOHLIWKHUHLVGHQVHQHVV
HJ WKH UHODWLYHO\ GHQVHU FRQFHQWUDWLRQ RI FHUWDLQ IRRG JURXSV WR EH
FRQVXPHG LQ UDZ YHJHWDULDQLVP OLNH IUXLW YHJHWDEOHV VSURXWV QXWV
VHHGV JUDLQV OHJXPHV GDLU\ HJJV DQG KRQH\ WKHUH LV HPSWLQHVV HJ
WKH UHODWLYHO\ OHVV GHQVH RU PRUH HPSW\ FRQFHQWUDWLRQ RI PHDW WR EH
FRQVXPHGLQUDZYHJHWDULDQLVP$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHFKDQJHFRQVWDQF\SULQFLSOHLIWKHUHLVFKDQJHHJ
WKH HYHU QHZ ZD\V WR VWXG\ WKH LQFOXVLRQ RI FHUWDLQ IRRG JURXSV IRU
FRQVXPSWLRQ DV VKRZQ LQ WKH GLIIHUHQW VWXGLHV RI UDZ IRRGLVP WKHUH LV
FRQVWDQF\HJWKHHYHUFRQVWDQWH[LVWHQFHRIGLIIHUHQWSUREOHPVZLWKWKH
HYHU QHZ ZD\V WR VWXG\ WKH LQFOXVLRQ RI FHUWDLQ IRRG JURXSV IRU
FRQVXPSWLRQ DV VKRZQ LQ WKH SUREOHPV ZLWK WKH GLIIHUHQW VWXGLHV RI UDZ
IRRGLVP SRLQWHG RXW E\ WKH FULWLFV $QG WKH UHYHUVH GLUHFWLRQ DOVR KROGV
WUXH
,QUHODWLRQWRWKHRUGHUFKDRVSULQFLSOHLIWKHUHLVRUGHUHJWKHPRUH
RUOHVVRUGHUO\UHDOLW\RIWKHULJKWIRRGJURXSVWREHFRQVXPHGLIORRNHG
IURP WKH VROH YDQWDJH SRLQW RI UDZ YHJDQLVP WKHUH LV FKDRV HJ WKH
PRUH RU OHVV FKDRWLF UHDOLW\ RI WKH ULJKW IRRG JURXSV WR EH FRQVXPHG LI
ORRNHG IURP WKH GLYHUVH RIWHQ FRQIOLFWLQJ YDQWDJH SRLQWV RI UDZ
YHJDQLVP UDZ YHJHWDULDQLVP UDZ DQLPDO IRRG GLHWV QRUPDO GLHWV DQG
RWKHUYLHZVE\GLIIHUHQWIRRGFULWLFV$QGWKHUHYHUVHGLUHFWLRQDOVRKROGV
WUXH
,Q UHODWLRQ WR WKH VORZQHVVTXLFNQHVV SULQFLSOH LI WKHUH LV VORZQHVV
HJWKHUHODWLYHO\VORZHUVSHHGRIIRRGWREHIXOO\FRRNHGLIKHDWHGZHOO
EHORZ )DKUHQKHLW > &@ WKHUH LV TXLFNQHVV HJ WKH UHODWLYHO\
TXLFNHU VSHHG RI IRRG WR EH IXOO\ FRRNHG LI KHDWHG ZHOO DERYH
)DKUHQKHLW>&HOVLXV@$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHH[SDQVLRQFRQWUDFWLRQSULQFLSOHLIWKHUHLVH[SDQVLRQ
HJ WKH UHODWLYH WHQIROG ULVH RI IRRG SRLVRQLQJ DWWULEXWHG WR
FRQWDPLQDWHG UDZ SURGXFHVLQFH WKH V WKHUH LV FRQWUDFWLRQ HJ
WKH UHODWLYH GHFOLQH RI IRRG SRLVRQLQJ DWWULEXWHG WR FRQWDPLQDWHG IXOO\
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
SURFHVVHG IRRG LQ PRGHUQ WLPHV $QG WKH UHYHUVH GLUHFWLRQ DOVR KROGV
WUXH
,Q UHODWLRQ WR WKH WKHRU\SUD[LV SULQFLSOH LI WKHUH LV WKHRU\ HJ WKH
WKHRUHWLFDO FRQVWUXFWLRQ RI WKH LGHD RI QDWXUDO HYROXWLRQ LQ ELRORJ\
WKHUH LV SUD[LV HJ WKH SUDFWLFDO DSSOLFDWLRQ RI WKH LGHD RI QDWXUDO
HYROXWLRQ LQ ELRORJ\ WR WKH ILHOG RI QXWULWLRQ DV VKRZQ E\ WKH ZRUN RI
5LFKDUG:UDQJKDP>@ZKRDUJXHGWKDWHDWLQJFRRNHGIRRGLVPRUH
QDWXUDO
IRU WKH KXPDQ GLJHVWLYH V\VWHP EHFDXVH WKH KXPDQ GLJHVWLYH
V\VWHP PD\ KDYH HYROYHG WR GHDO ZLWK FRRNHG IRRGV :. V %
&OHPHQW$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHFRQYHQWLRQQRYHOW\SULQFLSOHLIWKHUHLVFRQYHQWLRQ
HJWKHFRQYHQWLRQDOPDLQVWUHDPYLHZDPRQJDQWKURSRORJLVWVWKDWWKH
LQFUHDVHVLQKXPDQEUDLQVL]HRFFXUUHGZHOOEHIRUHWKHDGYHQWRIFRRNLQJ
GXH WR D VKLIW DZD\ IURP WKH FRQVXPSWLRQ RI QXWV DQG EHUULHV WR WKH
FRQVXPSWLRQ RI PHDW WKHUH LV QRYHOW\ HJ WKH DOWHUQDWLYH QRYHO
FKDOOHQJH WR WKH FRQYHQWLRQDO PDLQVWUHDP YLHZ DPRQJ DQWKURSRORJLVWV
WKDWWKHLQFUHDVHVLQKXPDQEUDLQVL]HRFFXUUHGZHOOEHIRUHWKHDGYHQWRI
FRRNLQJGXHWRDVKLIWDZD\IURPWKHFRQVXPSWLRQRIQXWVDQGEHUULHVWR
WKHFRQVXPSWLRQRIPHDWE\WKHQHZLGHDRI5LFKDUG:UDQJKDP>@
ZKR DUJXHG WKDW FRRNLQJ H[SODLQV WKH LQFUHDVH LQ KRPLQLG EUDLQ VL]HV
DQG WKDW HDWLQJ FRRNHG IRRG LV PRUH
QDWXUDO
IRU WKH KXPDQ GLJHVWLYH
V\VWHP EHFDXVH WKH KXPDQ GLJHVWLYH V\VWHP PD\ KDYH HYROYHG WR GHDO
ZLWK FRRNHG IRRGV :. V 3 0F%URRP $QG WKH UHYHUVH
GLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH HYROXWLRQWUDQVIRUPDWLRQ SULQFLSOH LI WKHUH LV
HYROXWLRQHJWKHQDWXUDOHYROXWLRQRIKXPDQVWRKDYHWKHLQFUHDVHVLQ
KXPDQEUDLQVL]HZHOOEHIRUHWKHDGYHQWRIFRRNLQJGXHWRDVKLIWDZD\
IURP WKH FRQVXPSWLRQ RI QXWV DQG EHUULHV WR WKH FRQVXPSWLRQ RI PHDW
WKHUHLVWUDQVIRUPDWLRQHJWKHWHFKQLFDOWUDQVIRUPDWLRQRIKXPDQDELOLW\
WRSURFHVVIRRGE\WKHLQYHQWLRQRIPLFURZDYH$QGWKHUHYHUVHGLUHFWLRQ
DOVRKROGVWUXH
,QUHODWLRQWRWKHV\PPHWU\DV\PPHWU\SULQFLSOHLIWKHUHLVV\PPHWU\
HJ WKH H[LVWHQFH RI EUDLQ VL]HV DPRQJ KXPDQV DQG DQLPDOV ZLWK WKH
FRQVXPSWLRQ RI PHDW WKHUH LV DV\PPHWU\ HJ KXPDQ EUDLQ LV PRUH
SRZHUIXOWKDQWKHEUDLQVRIRWKHUDQLPDOVLQWHUPVRIWKHWHFKQRORJLHVWKDW
WKHIRUPHUKDVEHHQDEOHWRFUHDWHLQKLVWRU\VXFKWKDWWKHKXPDQVSHFLHV
EHFRPHWKHGRPLQDQWRQHRQHDUWK QRZDGD\V $QGWKHUHYHUVHGLUHFWLRQ
DOVRKROGVWUXH
,QUHODWLRQWRWKHVRIWQHVVKDUGQHVVSULQFLSOHLIWKHUHLVVRIWQHVVHJ
WKH FRQVXPSWLRQ RI QXWV ZLWKRXW WKH QHHG WR NLOO DQ DQLPDO WKHUH LV
&KDSWHU,QJUHGLHQWVDQGWKHLU7ZLQ4XDOLWLHV
KDUGQHVV HJ WKH FRQVXPSWLRQ RI PHDW ZLWK WKH QHHG WR NLOODQ DQLPDO
ILUVW$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH VHULRXVQHVVSOD\IXOQHVV SULQFLSOH LI WKHUH LV
VHULRXVQHVVHJWKHVHULRXVEXVLQHVVRIWKRVHZKRWU\WRXQGHUVWDQGUDZ
IRRGGLHWVWKHUHLVSOD\IXOQHVVHJWKHSOD\IXOSDUWRIWKRVHZKRWU\WR
XQGHUVWDQGUDZIRRGGLHWVZKHQWKH\SOD\DURXQGZLWKGLIIHUHQWYHUVLRQV
RIUDZIRRGLVPDQGGLIIHUHQWEHOLHIVLQUDZIRRGLVPPDQ\RIZKLFKKDYH
EHHQFULWLFL]HGE\WKHFULWLFV$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHDFWLYHQHVVLQDFWLYHVVSULQFLSOHLIWKHUHLVDFWLYHQHVV
HJWKHDFWLYHQHVVRIWKRVHZKRFDQZRUNEHFDXVHWKH\DUHKHDOWK\GXH
WR JRRG QXWULWLRQ WKHUH LV LQDFWLYHQHVV HJ WKH UHODWLYH LQDFWLYHQHVV RI
WKRVHZKRDUHVLFNGXHWRIRRGSRLVRQLQJIURPUDZIRRGGLHWV
,QUHODWLRQWRWKHVHOIQHVVRWKHUQHVVSULQFLSOHLIWKHUHLVVHOIQHVVHJ
WKH WHQGHQF\ WR EH PRVWO\ FHQWHUHG RQ RQHV VHOI RU JURXS DV VKRZQ E\
WKRVHZKRNLOODQLPDOVWRHDWPHDWUDZRUFRRNHGWKHUHLVRWKHUQHVVHJ
WKHWHQGHQF\WREHPRVWO\FHQWHUHGRQRWKHUVDVVKRZQE\WKRVHZKRIDYRU
UDZ YHJDQLVP IRU D PRUH KXPDQH UHODWLRQVKLS ZLWK WKH HFRV\VWHP
LQFOXGLQJ QRW NLOOLQJ DQLPDOV IRU PHDW FRQVXPSWLRQ $QG WKH UHYHUVH
GLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH UHJUHVVLRQSURJUHVVLRQ SULQFLSOH LI WKHUH LV
UHJUHVVLRQ HJ WKH UHJUHVVLRQ PDGH E\ UDZ IRRGLVP DV VKRZQ LQ WKH
SUREOHPVSRLQWHGRXWE\WKHFULWLFVWKHUHLVSURJUHVVLRQHJWKHSURJUHVV
PDGH E\ UDZ IRRGLVP DV VKRZQ LQ LWV FRQWULEXWLRQ WR D EHWWHU
XQGHUVWDQGLQJ RI KHDOWK GLHWV DIRUHFLWHG $QG WKH UHYHUVH GLUHFWLRQ DOVR
KROGVWUXH
,Q UHODWLRQ WR WKH VDPHGLIIHUHQFH SULQFLSOH LI WKHUH LV VLPLODULW\ LQ
RXWFRPH HJ WKH FRQWULEXWLRQ WR WKH PROGLQJ DQG FRQWURO RI EHOLHIV
YDOXHVDQGEHKDYLRUVUHJDUGOHVVRI ZKHWKHUWKLVEHGRQHE\ ZD\RIUDZ
IRRGLVPZKLFKLVQRWWROHUDQWRIFRIIHHDOFRKRODQGWREDFFRRUE\ZD\
RI FRRNHG IRRGLVP ZKLFK LV DOVR WROHUDQW RI FRIIHH DOFRKRO DQG
WREDFFR WKHUH LV GLIIHUHQFH LQ RXWFRPH HJ WKH FRQWULEXWLRQ WR WKH
PROGLQJ DQG FRQWURO RI EHOLHIV YDOXHV DQG EHKDYLRUV E\ ZD\ RI UDZ
IRRGLVP IRU D UHODWLYHO\ PRUH KHDOWKFRQVFLRXV DVFHWLF OLIHVW\OHEXW WKH
FRQWULEXWLRQ WR WKH PROGLQJ DQG FRQWURO RI EHOLHIV YDOXHV DQG EHKDYLRUV
E\ZD\RIFRRNHGIRRGLVPIRUDUHODWLYHO\PRUHKHGRQLVWLFOLIHVW\OH$QG
WKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHVWDELOLW\UHDFWLRQSULQFLSOHLIWKHUHLVVWDELOLW\HJ
WKHUHODWLYHO\PRUHVWDEOHFRQGLWLRQRIFRRNHGIRRGLVPLQWKHROGHUGD\V
ZKHQFRRNLQJJUDGXDOO\EHFDPHLQVWLWXWLRQDOL]HGLQKXPDQFXOWXUHWKHUH
LV UHDFWLRQ HJ FRRNHG IRRGLVP LQ WKH ROGHU GD\V WKHQ OHG WR IXUWKHU
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
FKDQJHVODWHURQZKHQWKHUDZIRRGPRYHPHQWEHFDPHPRUHLQIOXHQWLDOLQ
WKHWKFHQWXU\$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
$QGLQUHODWLRQWRWKHIXQFWLRQDOLW\QRQIXQFWLRQDOLW\SULQFLSOHLIWKHUH
LVIXQFWLRQDOLW\HJWKHSUHVHQFHRIDFWLRQIRUZKLFKVRPHWKLQJLVILWWHG
DV VKRZQ LQ UDZ IRRGLVP ZKHQ LWV DGYRFDWHV DUJXH WKDW LW KDV SRVLWLYH
KHDOWKHIIHFWVDIRUHFLWHGWKHUHLV QRQIXQFWLRQDOLW\HJWKHUHODWLYHODFN
RIDFWLRQIRUZKLFKVRPHWKLQJLVILWWHGDVVKRZQLQUDZIRRGLVPZKHQWKH
FULWLFV DUJXH WKDW HQ]\PHV DV ZLWK RWKHU SURWHLQV FRQVXPHG LQ WKH GLHW
DUHGHQDWXUHGDQGHYHQWXDOO\O\VHGE\WKHGLJHVWLYHSURFHVVUHQGHULQJWKHP
QRQIXQFWLRQDODQGWKHUHIRUHWKLVTXHVWLRQVWKHFODLPE\UDZIRRGLVWVWKDW
GLJHVWLYHHQ]\PHVLQUDZIRRGV>VXFKDVDP\ODVHVSURWHDVHVDQGOLSDVHV@
DLGGLJHVWLRQ$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QJUHGLHQWVDQG6RFLHW\
,QJUHGLHQWV ZKHQ H[DPLQHG IURP WKH SHUVSHFWLYH RI VRFLHW\ FDQ
UHYHDO WR XV VRPH SRZHUIXO IHDWXUHV LQ UHODWLRQ WR WKHLU SRVVLELOLW\ RU
LPSRVVLELOLW\ DQG GHVLUDELOLW\ RU XQGHVLUDELOLW\ DQG WKLV FDQ EH VKRZQ
E\ZD\RIWZRFDVHVWXGLHVQDPHO\LQJUHGLHQWVIRRGVXSSO\DQG
0DOWKXVLDQLVP DQG LQJUHGLHQWV IRRG VHFXULW\ DQG QXWULWLRQDO
HFRQRPLFVWREHDGGUHVVHGKHUHDIWHU
,QJUHGLHQWV)RRG6XSSO\DQG0DOWKXVLDQLVP
$ JRRG ZD\ WR HYDOXDWH WKH SRVVLELOLW\ RU LPSRVVLELOLW\ DQG
GHVLUDELOLW\ RU XQGHVLUDELOLW\ RI LQJUHGLHQWV IURP WKH SHUVSHFWLYH RI
VRFLHW\LVWRH[SORUHLQJUHGLHQWVIRRGVXSSO\DQG0DOWKXVLDQLVP
7KH WHUP 0DOWKXVLDQLVP UHIHUV WR LGHDV GHULYHG IURP WKH
SROLWLFDOHFRQRPLF WKRXJKW RI 5HYHUHQG 7KRPDV 5REHUW 0DOWKXV DV ODLG
RXWLQLWLDOO\LQKLVZULWLQJV$Q(VVD\RQWKH3ULQFLSOHRI3RSXODWLRQ
ZKLFK GHVFULEHV KRZ XQFKHFNHG SRSXODWLRQ JURZWK LV H[SRQHQWLDO
ZKLOH WKH JURZWK RI WKH IRRG VXSSO\ ZDV H[SHFWHG WR EH
DULWKPHWLFDO:.O
)RU0DOWKXVWKHUHZHUHWZRW\SHVRI
FKHFNV
WKDWFRXOGWKHQUHGXFH
WKHSRSXODWLRQUHWXUQLQJLWWRDPRUHVXVWDLQDEOHOHYHO+HEHOLHYHGWKHUH
ZHUH
SUHYHQWLYH
FKHFNV VXFK DV PRUDO UHVWUDLQWV DEVWLQHQFH GHOD\HG
PDUULDJHXQWLOILQDQFHVEHFRPHEDODQFHGDQGUHVWULFWLQJPDUULDJHDJDLQVW
SHUVRQV VXIIHULQJ SRYHUW\ DQGRU GHIHFWV 0DOWKXV EHOLHYHG LQ
SRVLWLYH
FKHFNV
ZKLFKOHDGWR
SUHPDWXUH
GHDWKGLVHDVHVWDUYDWLRQZDUUHVXOWLQJ
LQZKDWLVFDOOHGD0DOWKXVLDQFDWDVWURSKH:.O
&KDSWHU,QJUHGLHQWVDQGWKHLU7ZLQ4XDOLWLHV
,Q DQ\ HYHQW WKHUH DUH WZR W\SHV RI 0DOWKXVLDQLVP QDPHO\ D
FODVVLFDODQGEPRGHUQDVH[SODLQHGEHORZ
&ODVVLFDO0DOWKXVLDQLVP
&ODVVLFDO0DOWKXVLDQLVPLQFOXGHWKHLGHDVRI0DOWKXVDQGRWKHUVDWWKH
WLPHVLQFHKHZDVQRWWKHILUVWWRRXWOLQHWKHSUREOHPVKHSHUFHLYHG7KH
RULJLQDOHVVD\ZDVSDUWRIDQRQJRLQJLQWHOOHFWXDOGLVFXVVLRQDWWKHHQGRI
WKHWKFHQWXU\UHJDUGLQJWKHRULJLQVRISRYHUW\3ULQFLSOHRI3RSXODWLRQ
ZDVVSHFLILFDOO\ZULWWHQDVDUHEXWWDOWRWKLQNHUVOLNH:LOOLDP*RGZLQDQG
WKH0DUTXLVGH&RQGRUFHWDQG0DOWKXV
VRZQIDWKHUZKREHOLHYHGLQWKH
SHUIHFWLELOLW\ RI KXPDQLW\ 0DOWKXV EHOLHYHG KXPDQLW\
V DELOLW\ WR
UHSURGXFHWRRUDSLGO\GRRPHGHIIRUWVDWSHUIHFWLRQDQGFDXVHYDULRXVRWKHU
SUREOHPV:.O
7KXV0DOWKXVSHUFHLYHGLGHDVRIFKDULW\WRWKHSRRUW\SLILHGE\7RU\
SDWHUQDOLVPZHUHIXWLOHDVWKHVHZRXOGRQO\UHVXOWLQLQFUHDVHGQXPEHUVRI
WKH SRRU DQG ZDV GHYHORSHG LQWR :KLJ HFRQRPLF LGHDV H[HPSOLILHG E\
7KH3RRU/DZ$PHQGPHQW$FWRI:.O
,QIDFWLWLVLPSRUWDQWWR QRWHWKDW RQHSURSRQHQWRI0DOWKXVLDQLVP
ZDVWKHQRYHOLVW+DUULHW0DUWLQHDXZKRVHFLUFOHRIDFTXDLQWDQFHVLQFOXGHG
&KDUOHV'DUZLQDQGWKHLGHDVRI0DOWKXVZHUHDVLJQLILFDQWLQIOXHQFHRQ
WKH LQFHSWLRQ RI 'DUZLQ
V WKHRU\ RI HYROXWLRQ 'DUZLQ ZDV LPSUHVVHG E\
WKHLGHDWKDWSRSXODWLRQJURZWKZRXOGHYHQWXDOO\OHDGWRPRUHRUJDQLVPV
WKDQ FRXOG SRVVLEO\ VXUYLYH LQ DQ\ JLYHQ HQYLURQPHQW OHDGLQJ KLP WR
WKHRUL]H WKDW RUJDQLVPV ZLWK D UHODWLYH DGYDQWDJH LQ WKH VWUXJJOH IRU
VXUYLYDODQGUHSURGXFWLRQZRXOGEHDEOHWRSDVVWKHLUFKDUDFWHULVWLFVRQWR
IXUWKHUJHQHUDWLRQV3URSRQHQWVRI0DOWKXVLDQLVPZHUHLQWXUQLQIOXHQFHG
E\ 'DUZLQ
V LGHDV ERWK VFKRROV FRPLQJ WR KHDYLO\ LQIOXHQFH WKH ILHOG RI
HXJHQLFV +HQU\ )DLUILHOG 2VERUQ DGYRFDWHG
KXPDQH ELUWK VHOHFWLRQ
WKURXJK KXPDQHELUWKFRQWURO
LQRUGHUWRDYRLGD0DOWKXVLDQFDWDVWURSKH
E\HOLPLQDWLQJWKH
XQILW
:.O-YDQ:\KH
0RGHUQ0DOWKXVLDQLVP
/DWHU JHQHUDWLRQV DOVR PDGH JRRG XVH RI FODVVLFDO 0DOWKXVLDQLVP
WKRXJKZLWKFHUWDLQUHYLVLRQV
)RU LQVWDQFH -RKQ 0D\QDUG .H\QHV LQ (FRQRPLF &RQVHTXHQFHV RI
WKH3HDFHRSHQVKLVSROHPLFZLWKD0DOWKXVLDQSRUWUD\DORIWKHSROLWLFDO
HFRQRP\RI(XURSHDVXQVWDEOHGXHWR0DOWKXVLDQSRSXODWLRQSUHVVXUHRQ
IRRG VXSSOLHV 0DQ\ PRGHOV RI UHVRXUFH GHSOHWLRQ DQG VFDUFLW\ DUH
0DOWKXVLDQ LQ FKDUDFWHU WKH UDWH RI HQHUJ\ FRQVXPSWLRQ ZLOO RXWVWULS WKH
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
DELOLW\ WR ILQG DQG SURGXFH QHZ HQHUJ\ VRXUFHV DQG VR OHDG WR D FULVLV
:.O
(OVHZKHUH OLNH LQ )UDQFH WHUPV VXFK DV
SROLWLTXH 0DOWKXVLHQQH
0DOWKXVLDQSROLWLFV
UHIHUWRSRSXODWLRQFRQWUROVWUDWHJLHV7KHFRQFHSWRI
UHVWULFWLRQ RI SRSXODWLRQ DVVRFLDWHG ZLWK 0DOWKXV PRUSKHG LQ ODWHU
SROLWLFDO HFRQRPLF WKHRU\ LQWR WKH QRWLRQ RI UHVWULFWLRQ RI SURGXFWLRQ ,Q
WKH )UHQFK VHQVH D
0DOWKXVLDQ HFRQRP\
LV RQH LQ ZKLFK SURWHFWLRQLVP
DQG WKH IRUPDWLRQ RI FDUWHOV LV QRW RQO\ WROHUDWHG EXW HQFRXUDJHG :.
O
,QJHQHUDO
1HR0DOWKXVLDQLVP
PD\EHXVHGDVDODEHOIRUWKRVHZKR
DUH FRQFHUQHG WKDW RYHUSRSXODWLRQ PD\ LQFUHDVH UHVRXUFH GHSOHWLRQ RU
HQYLURQPHQWDO GHJUDGDWLRQ WR D GHJUHH WKDW LV QRW VXVWDLQDEOH ZLWK WKH
SRWHQWLDO RI HFRORJLFDO FROODSVH RU RWKHU KD]DUGV 7KH WHUP LV DOVR RIWHQ
LPPHGLDWHO\FRQQHFWHGZLWKHXJHQLFV:.O
,QIDFWWKHUDSLGLQFUHDVHLQWKHJOREDOSRSXODWLRQRIWKHSDVWFHQWXU\
H[HPSOLILHV 0DOWKXV
V SUHGLFWHG SRSXODWLRQ SDWWHUQV LW DOVR DSSHDUV WR
GHVFULEHVRFLRGHPRJUDSKLFG\QDPLFVRIFRPSOH[SUHLQGXVWULDOVRFLHWLHV
7KHVH ILQGLQJV DUH WKH EDVLV IRU QHRPDOWKXVLDQ PRGHUQ PDWKHPDWLFDO
PRGHOVRIORQJWHUPKLVWRULFDOG\QDPLFV:.O
,Q WKH VHFRQG KDOI RI WKH WK FHQWXU\ WKHUH ZDV D JHQHUDO
QHR
0DOWKXVLDQ
UHYLYDOLQWKHVVDQGVDIWHUWKHSXEOLFDWLRQRIWZR
LQIOXHQWLDO ERRNV LQ )DLUILHOG 2VERUQ
V 2XU 3OXQGHUHG 3ODQHW DQG
:LOOLDP9RJW
V5RDGWR6XUYLYDO'XULQJWKDWWLPHWKHSRSXODWLRQRIWKH
ZRUOG URVH GUDPDWLFDOO\ 0DQ\ LQ HQYLURQPHQWDO PRYHPHQWV EHJDQ WR
VRXQGWKHDODUPUHJDUGLQJWKHSRWHQWLDOGDQJHUVRISRSXODWLRQJURZWK7KH
&OXERI5RPHSXEOLVKHGDIDPRXVERRNHQWLWOHG7KH/LPLWVWR*URZWKLQ
7KH UHSRUW DQG WKH RUJDQLVDWLRQ VRRQ EHFDPH FHQWUDO WR WKH QHR
0DOWKXVLDQ UHYLYDO 3DXO 5 (KUOLFK KDV EHHQ RQH RI WKH PRVW SURPLQHQW
QHR0DOWKXVLDQV VLQFH WKH SXEOLFDWLRQ RI 7KH 3RSXODWLRQ %RPE LQ
2WKHU SURPLQHQW 0DOWKXVLDQV LQFOXGH WKH 3DGGRFN EURWKHUV DXWKRUV RI
)DPLQH$PHULFD
V'HFLVLRQ:KR:LOO6XUYLYH":.O
%\ WKH WXUQ RI WKH VW FHQWXU\ SURPLQHQW QHRPDOWKXVLDQV VXFK DV
3DXO(KUOLFK>@PDLQWDLQWKDWXOWLPDWHO\SRSXODWLRQJURZWKRQ(DUWK
LVVWLOOWRRKLJKDQGZLOOHYHQWXDOO\OHDGWRDVHULRXVFULVLV7KHLQFUHDVHLQ
IRRG SULFHV IURP WR SUHVHQW KDV LQVSLUHG IXUWKHU 0DOWKXVLDQ
DUJXPHQWVUHJDUGLQJWKHSURVSHFWVIRUJOREDOIRRGVXSSO\:.O-
.XQVWOHU/%URZQ
&KDSWHU,QJUHGLHQWVDQGWKHLU7ZLQ4XDOLWLHV
3UREOHPVZLWKWKH6WXG\RI)RRG6XSSO\DQG0DOWKXVLDQLVP
+RZHYHUIRUWKHFULWLFVWKLVVWXG\RIIRRGVXSSO\DQG0DOWKXVLDQLVP
KDV VRPH PDMRU SUREOHPV &RQVLGHU IRU LOOXVWUDWLRQ D IHZ H[DPSOHV
EHORZ
)LUVWO\ RQH PDLQ FULWLFLVP RI WKH VWXG\ RI IRRG VXSSO\ DQG
0DOWKXVLDQLVPLVWKDWLWLJQRUHVWKHLVVXHVFRQFHUQLQJHFRQRPLFEDVHDQG
VRFLDOVWUXFWXUH
)RU H[DPSOH RQH RI WKH WK FHQWXU\ FULWLFV RI 0DOWKXVLDQ WKHRU\
ZDV .DUO 0DU[ ZKR UHIHUUHG WR LW DV
QRWKLQJ PRUH WKDQ D VFKRROER\LVK
VXSHUILFLDO SODJLDU\ RI 'H )RH 6LU -DPHV 6WHXDUW 7RZQVHQG )UDQNOLQ
:DOODFH
LQ &DSLWDO0DU[ DQG (QJHOV GHVFULEHG 0DOWKXV DV D
ODFNH\
RI WKH ERXUJHRLVLH
6RFLDOLVWV DQG FRPPXQLVWV EHOLHYHG WKDW 0DOWKXVLDQ
WKHRULHV
EODPHG WKH SRRU
IRU WKHLU RZQ H[SORLWDWLRQ E\ WKH FDSLWDOLVW
FODVVHV DQG FRXOG EH XVHG WR VXSSUHVV WKH SUROHWDULDW WR DQ HYHQ JUHDWHU
GHJUHH ZKHWKHU WKURXJK DWWHPSWV WR UHGXFH IHUWLOLW\ RU E\ MXVWLI\LQJ WKH
JHQHUDOO\ SRRU FRQGLWLRQV RI ODERXU LQ WKH WK FHQWXU\ :. O 3
1HXUDWK
6HFRQGO\ DQRWKHU PDLQ FULWLFLVP RI WKH VWXG\ RI IRRG VXSSO\ DQG
0DOWKXVLDQLVPLVWKDWLWLVWRRSHVVLPLVWLF
)RU LQVWDQFH IRU WKH FULWLFV 7KRPDV &DUO\OH JDYH HFRQRPLFV WKH
QLFNQDPH
WKH GLVPDO VFLHQFH
DV D UHVSRQVH WR WKH ODWH WK FHQWXU\
ZULWLQJV RI WKH 5HYHUHQG 7KRPDV 5REHUW 0DOWKXV ZKR JULPO\ SUHGLFWHG
WKDW VWDUYDWLRQ ZRXOG UHVXOW DV SURMHFWHG SRSXODWLRQ JURZWK H[FHHGHG WKH
UDWHRILQFUHDVHLQWKH IRRGVXSSO\:.W,Q IDFW WKHWHUP LVDQ
LQYHUVLRQRIWKHSKUDVH
JD\VFLHQFH
PHDQLQJ
OLIHHQKDQFLQJNQRZOHGJH
D UHIHUHQFH WR WKH WHFKQLFDO VNLOOV RI VRQJ DQG YHUVH ZULWLQJ 7KLV ZDV D
IDPLOLDUH[SUHVVLRQDWWKHWLPHDQGZDVODWHUDGRSWHGDVWKHWLWOHRIDERRN
E\1LHW]VFKHOLNH7KH*D\6FLHQFH:.W
7KLUGO\VWLOODQRWKHUPDLQFULWLFLVPRIWKHVWXG\RIIRRGVXSSO\DQG
0DOWKXVLDQLVPLVWKDWIDPLQHLVPRUHSROLWLFDOWKDQHFRQRPLF
)RULQVWDQFH$PDUW\D6HQKDVREVHUYHGWKDW
WKHUHLVQRVXFKWKLQJ
DVDQDSROLWLFDOIRRGSUREOHP
:KLOHGURXJKWDQGRWKHUQDWXUDOO\RFFXUULQJ
HYHQWVPD\WULJJHUIDPLQHFRQGLWLRQVLWLVJRYHUQPHQWDFWLRQRULQDFWLRQ
WKDW GHWHUPLQHV LWV VHYHULW\ DQG RIWHQ HYHQ ZKHWKHU RU QRW D IDPLQH ZLOO
RFFXU7KHWKFHQWXU\LVIXOORIH[DPSOHVRIJRYHUQPHQWVXQGHUPLQLQJ
WKH IRRG VHFXULW\ RI WKHLU RZQ QDWLRQVVRPHWLPHV LQWHQWLRQDOO\ :.
N
$QGIRXUWKO\DQDGGLWLRQDOPDLQFULWLFLVPRIWKHVWXG\RIIRRGVXSSO\
DQG 0DOWKXVLDQLVP LV WKDW LW XQGHUVWLPDWHV WKH OLEHUDWLQJ SRZHU RI
WHFKQRORJ\
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
&KDSWHU,QJUHGLHQWVDQGWKHLU7ZLQ4XDOLWLHV
0DOWKXVLDQLVP DV VKRZQ LQ WKH FULWLFLVPV WKDW LW LJQRUHV WKH LVVXHV
FRQFHUQLQJ HFRQRPLF EDVH DQG VRFLDO VWUXFWXUH WKDW LW LV WRR SHVVLPLVWLF
WKDW IDPLQH LV PRUH SROLWLFDO WKDQ HFRQRPLF WKDW LW XQGHUVWLPDWHV WKH
OLEHUDWLQJSRZHURIWHFKQRORJ\HWF$QGWKHUHYHUVHGLUHFWLRQDOVRKROGV
WUXH
,Q UHODWLRQ WR WKH DEVROXWHQHVVUHODWLYHQHVV SULQFLSOH LI WKHUH LV
DEVROXWHQHVV HJ WKH DEVROXWH YLHZ RI 0DOWKXV LQ WKH HDUO\ GD\V WKDW
KXPDQLW\
V DELOLW\ WR UHSURGXFH WRR UDSLGO\ GRRPHG HIIRUWV DW SHUIHFWLRQ
DQG FDXVH YDULRXV RWKHU SUREOHPV WKHUH LV UHODWLYHQHVV HJ ZKDW LV
ULJKW IRU 0DOWKXV LQ WKH HDUO\ GD\V WKDW KXPDQLW\
V DELOLW\ WR UHSURGXFH
WRR UDSLGO\ GRRPHG HIIRUWV DW SHUIHFWLRQ DQG FDXVH YDULRXV RWKHU
SUREOHPV LV QRW QHFHVVDULO\ VR IRU 0DU[ ZKR DUJXHG WKDW 0DOWKXVLDQ
WKHRULHV
EODPHG WKH SRRU
IRU WKHLU RZQ H[SORLWDWLRQ E\ WKH FDSLWDOLVW
FODVVHV DQG FRXOG EH XVHG WR VXSSUHVV WKH SUROHWDULDW WR DQ HYHQ JUHDWHU
GHJUHH ZKHWKHU WKURXJK DWWHPSWV WR UHGXFH IHUWLOLW\ RU E\ MXVWLI\LQJ WKH
JHQHUDOO\SRRUFRQGLWLRQVRIODERXULQWKHWKFHQWXU\$QGWKHUHYHUVH
GLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHSDUWLDOLW\WRWDOLW\SULQFLSOHLIWKHUHLVSDUWLDOLW\HJ
WKHSDUWLDOYLHZRI0DOWKXVLQUHJDUGWRIRRGVHFXULW\DQGRYHUSRSXODWLRQ
WKHUH LV WRWDOLW\ HJ WKH PRUH KROLVWLF YLHZ RI IRRG VHFXULW\ DQG
RYHUSRSXODWLRQ VXFK WKDW WKH ZKROH LV QRW WKH VXP RI LWV SDUWV WKDW LV LW
FDQQRW EH UHGXFHG WR WKH VXP RI RSSRVLQJ YLHZV OLNH 0DOWKXV DQG KLV
FULWLFVVLQFHWKHUHZLOOHPHUJHQHZYLHZVDQGIDFWRUVLQWKHIXWXUHQRW\HW
NQRZQ WRGD\ MXVW DV QR RQH LQ WKH ROGHU GD\V FRXOG KDYH IRUHVHHQ WKH
JUHHQUHYROXWLRQWHFKQRORJLFDOLQFUHDVHVWKHRSHQLQJRIQHZWHUULWRU\WR
DJULFXOWXUH DQG LQFUHDVLQJ LQWHUQDWLRQDO WUDGH LQ WKH WK FHQWXU\ $QG
WKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH SUHGLFWDELOLW\XQSUHGLFWDELOLW\ SULQFLSOH LI WKHUH LV
SUHGLFWDELOLW\HJWKHSUHGLFWDEOHWHQGHQF\RIWKRVHIRU0DOWKXVLDQLVPWR
DUJXH WKDW KXPDQLW\
V DELOLW\ WR UHSURGXFH WRR UDSLGO\ GRRPHG HIIRUWV DW
SHUIHFWLRQ DQG FDXVH YDULRXV RWKHU SUREOHPV WKHUH LV XQSUHGLFWDELOLW\
HJ WKH PRUH GLIILFXOW WDVN WR SUHGLFW H[DFWO\ WKH H[WHQW WR ZKLFK
0DOWKXVLDQLVP ZLOOUHPDLQLQIOXHQWLDOLQDSDUWLFXODUIXWXUHKLVWRULFDOHUD
VLQFHLWKDYHDOUHDG\JRQHWKURXJKWKHF\FOHVRIULVHDQGIDOOLQSRSXODULW\
RYHUWLPH$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH H[SOLFDELOLW\LQH[SOLFDELOLW\ SULQFLSOH LI WKHUH LV
H[SOLFDELOLW\HJWKHH[SODQDWLRQE\0DOWKXVDERXWWKHSHUFHLYHGLGHDV
RI FKDULW\ WR WKH SRRU W\SLILHG E\ 7RU\ SDWHUQDOLVP DV IXWLOH DV WKHVH
ZRXOG RQO\ UHVXOW LQ LQFUHDVHG QXPEHUV RI WKH SRRU WKHUH LV
LQH[SOLFDELOLW\ HJ WKH ODFN RI VXIILFLHQW H[SODQDWLRQ E\ 0DOWKXV DERXW
WKH SHUFHLYHGLGHDVRIFKDULW\WRWKHSRRUW\SLILHGE\7RU\SDWHUQDOLVP
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
DV IXWLOH VLQFH IRU WKH FULWLFV WKH IHZ FHQWXULHV DIWHU 0DOWKXV KDG
H[SHULHQFHGWKHJUHHQUHYROXWLRQWHFKQRORJLFDOLQFUHDVHVWKHRSHQLQJ
RI QHZ WHUULWRU\ WR DJULFXOWXUH DQG LQFUHDVLQJ LQWHUQDWLRQDO WUDGH $QG
WKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH ILFWLRQUHDOLW\ SULQFLSOH LI WKHUH LV ILFWLRQ HJ WKH
ILFWLRQDODVSHFWRI0DOWKXVLDQLVPLQVRIDUDVIDPLQHLVPRUHSROLWLFDOWKDQ
HFRQRPLFDVSRLQWHGRXWE\ WKHFULWLFOLNH $PDUW\D6HQ WKHUHLVUHDOLW\
HJWKHUHDOLVWLFDVSHFWRI0DOWKXVLDQLVPLQVRIDUDVSRSXODWLRQJURZWK
RQ(DUWKLVVWLOOWRRKLJKDVSRLQWHGRXWE\3DXO(KUOLFK>@DQGWKH
LQFUHDVH LQ IRRG SULFHV IURP WR SUHVHQW KDV LQVSLUHG IXUWKHU
0DOWKXVLDQ DUJXPHQWV UHJDUGLQJ WKH SURVSHFWV IRU JOREDO IRRG VXSSO\
$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH ILQLWHQHVVWUDQVILQLWHQHVV SULQFLSOH LI WKHUH LV
ILQLWHQHVV HJ WKH ILQLWH QXPEHU RI QDWLRQVWDWHV ZKLFK KDYH VXIIHUHG
IURP RYHUSRSXODWLRQ LQ KLVWRU\ WKHUH LV WUDQVILQLWHQHVV HJ WKH
WUDQVILQLWH QXPEHU RI DOO WKH LQGLYLGXDOV DQG DQLPDOV LQ KLVWRU\ WKDW KDYH
VXIIHUHGIURPRYHUSRSXODWLRQ$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH SUHFLVHQHVVYDJXHQHVV SULQFLSOH LI WKHUH LV
SUHFLVHQHVVHJWKHSUHFLVH LGHQWLILFDWLRQRI PDMRUIDFWRUVWRDFFRXQW
IRU WKH GHFOLQH RI 0DOWKXVLDQLVP LQ WKH WK FHQWXU\ WKDW LV
WHFKQRORJLFDO LQFUHDVHV WKH RSHQLQJ RI QHZ WHUULWRU\ WR DJULFXOWXUH DQG
LQFUHDVLQJLQWHUQDWLRQDOWUDGHLQWKHDUWLFOHDIRUHFLWHGWKHUHLVYDJXHQHVV
HJWKHYDJXHQHVVLQWKHLGHQWLILFDWLRQRIWKHPDMRUIDFWRUVWRDFFRXQW
IRU WKH GHFOLQH RI 0DOWKXVLDQLVP LQ WKH WK FHQWXU\ LQ WKH DUWLFOH
DIRUHFLWHGVLQFHLWLVQRWFOHDUZK\WKHUHPXVWEHRQO\QRWDQGVR
RQ$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH VLPSOHQHVVFRPSOLFDWHGQHVV SULQFLSOH LI WKHUH LV
VLPSOHQHVV HJ WKH UHODWLYHO\ VLPSOH DQDO\VLV RI IRRG LQVHFXULW\ DQG
RYHUSRSOXDWLRQ E\ WKH DGYRFDWHV RI 0DOWKXVLDQLVP WKHUH LV
FRPSOLFDWHGQHVV HJ WKH UHODWLYHO\ PRUH FRPSOLFDWHG DQDO\VLV RI
0DOWKXVLDQLVP E\ FKDOOHQJLQJ WKH FODLPV DQG DVVXPSWLRQV DV VKRZQ LQ
WKHSUREOHPVSRLQWHGRXWE\WKHFULWLFVDVFLWHG$QGWKHUHYHUVHGLUHFWLRQ
DOVRKROGVWUXH
,QUHODWLRQWRWKHRSHQQHVVKLGGHQQHVVSULQFLSOHLIWKHUHLVRSHQQHVV
HJ WKH RSHQ H[SORUDWLRQ RI 0DOWKXVLDQLVP LQ UHJDUG WR FKDULW\ WR WKH
SRRUW\SLILHGE\7RU\SDWHUQDOLVPDQGWKHVXEVHTXHQWLQFUHDVHGQXPEHUV
RIWKHSRRUWKHUHLVKLGGHQQHVVHJWKHKLGGHQELDVLQ0DOWKXVLDQLVP
VLQFHIRUWKHFULWLFVLW
EODPHGWKHSRRU
IRUWKHLURZQH[SORLWDWLRQE\WKH
FDSLWDOLVWFODVVHVDQGFRXOGEHXVHGWRVXSSUHVVWKHSUROHWDULDWWRDQHYHQ
JUHDWHUGHJUHH$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
&KDSWHU,QJUHGLHQWVDQGWKHLU7ZLQ4XDOLWLHV
,QUHODWLRQWRWKHGHQVHQHVVHPSWLQHVVSULQFLSOHLIWKHUHLVGHQVHQHVV
HJWKHUHODWLYHO\GHQVHUFRQFHQWUDWLRQRIWKHSRRULIKHOSHGE\FKDULW\
ZLWK LWV VXEVHTXHQW LQFUHDVHG QXPEHUV RI WKH SRRU DFFRUGLQJ WR
0DOWKXVWKHUHLVHPSWLQHVVHJWKHUHODWLYHO\OHVVGHQVHRUPRUHHPSW\
FRQFHQWUDWLRQRIWKHSRRULIJUHDWO\UHGXFHGE\
SUHYHQWLYH
FKHFNVVXFK
DV PRUDO UHVWUDLQWV >DEVWLQHQFH GHOD\HG PDUULDJH XQWLO ILQDQFHV EHFRPH
EDODQFHG@ DQG UHVWULFWLQJ PDUULDJH DJDLQVW SHUVRQV VXIIHULQJ SRYHUW\
DQGRU GHIHFWV DV ZHOO DV
SRVLWLYH FKHFNV
ZKLFK OHDG WR
SUHPDWXUH
GHDWKGLVHDVHVWDUYDWLRQZDU$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHFKDQJHFRQVWDQF\SULQFLSOHLIWKHUHLVFKDQJHHJ
WKH HYHU QHZ ZD\V WR VWXG\ WKH FDXVHV RI IDPLQH DV VKRZQ LQ
0DOWKXVLDQLVP WKHUH LV FRQVWDQF\ HJ WKH HYHU FRQVWDQW H[LVWHQFH RI
GLIIHUHQWSUREOHPVLQWKHHYHUQHZZD\VWRVWXG\WKHFDXVHVRIIDPLQHDV
VKRZQ LQ WKH SUREOHPV ZLWK 0DOWKXVLDQLVP SRLQWHG RXW E\ WKH FULWLFV
$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHRUGHUFKDRVSULQFLSOHLIWKHUHLVRUGHUHJWKHPRUH
RU OHVV RUGHUO\ DSSHDUDQFH RI ZDUV LI XQGHUVWRRG IURP WKH 0DOWKXVLDQ
YDQWDJHSRLQWRISRVLWLYHFKHFNVDJDLQVWRYHUSRSXODWLRQWKHUHLVFKDRV
HJ WKH PRUH RU OHVV FKDRWLF DSSHDUDQFH RI ZDUV LI ORRNHG IURP WKH
YDQWDJHSRLQWRIWKHRIWHQXQFHUWDLQRXWFRPHVLQWKHEDWWOHILHOGVHVSHFLDOO\
WKRXJK QRW H[FOXVLYHO\ LQ UHJDUG WR LQGLYLGXDO OLYHV $QG WKH UHYHUVH
GLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH VORZQHVVTXLFNQHVV SULQFLSOH LI WKHUH LV VORZQHVV
HJWKHUHODWLYHO\VORZHUVSHHGRIDSRSXODWLRQWREHUHGXFHGLIDIIHFWHG
E\ FKDULW\ WR WKH SRRU WKHUH LV TXLFNQHVV HJ WKH UHODWLYHO\ TXLFNHU
VSHHG RI D SRSXODWLRQ WR EH UHGXFHG LI DIIHFWHG E\ SUHYHQWLYH FKHFNV
DQGSRVLWLYHFKHFNV$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHH[SDQVLRQFRQWUDFWLRQSULQFLSOHLIWKHUHLVH[SDQVLRQ
HJWKHUHODWLYHH[SDQVLRQRIDSRSXODWLRQLIJUHDWO\EHQHILWHGE\FKDULW\
WRWKHSRRUWKHUHLVFRQWUDFWLRQHJWKHUHODWLYHGHFOLQHRIDSRSXODWLRQ
LIJUHDWO\GHYDVWDWHGE\SUHPDWXUHGHDWKGLVHDVHVWDUYDWLRQZDU$QG
WKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH WKHRU\SUD[LV SULQFLSOH LI WKHUH LV WKHRU\ HJ WKH
WKHRUHWLFDOFRQVWUXFWLRQRI0DOWKXVLDQLVPLQHFRQRPLFVWKHUHLVSUD[LV
HJWKHSUDFWLFDODSSOLFDWLRQRI0DOWKXVLDQLVPLQHFRQRPLFVWRWKHILHOG
RI HYROXWLRQDU\ WKHRU\ EHFDXVH WKH LGHDV RI 0DOWKXV ZHUH D VLJQLILFDQW
LQIOXHQFH RQ WKH LQFHSWLRQ RI 'DUZLQ
V WKHRU\ RI HYROXWLRQ DV 'DUZLQ
ZDVLPSUHVVHGE\WKHLGHDWKDWSRSXODWLRQJURZWKZRXOGHYHQWXDOO\OHDGWR
PRUH RUJDQLVPV WKDQ FRXOG SRVVLEO\ VXUYLYH LQ DQ\ JLYHQ HQYLURQPHQW
OHDGLQJ KLP WR WKHRUL]H WKDW RUJDQLVPV ZLWK D UHODWLYH DGYDQWDJH LQ WKH
VWUXJJOH IRU VXUYLYDO DQG UHSURGXFWLRQ ZRXOG EH DEOH WR SDVV WKHLU
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
FKDUDFWHULVWLFVRQWRIXUWKHUJHQHUDWLRQV$QGWKHUHYHUVHGLUHFWLRQDOVR
KROGVWUXH
,QUHODWLRQWRWKHFRQYHQWLRQQRYHOW\SULQFLSOHLIWKHUHLVFRQYHQWLRQ
HJ WKH FRQYHQWLRQDO ZLVGRP DERXW 0DOWKXVLDQLVP LQ WKH ROGHU GD\V
WKHUH LV QRYHOW\ HJ WKH DOWHUQDWLYH QRYHO FKDOOHQJH WR WKH FRQYHQWLRQDO
ZLVGRPDERXWDERXW0DOWKXVLDQLVPLQWKHROGHUGD\VE\WKHQHZLGHDRI
$PDUW\D 6HQ ZKR DUJXHG LQVWHDG WKDW IDPLQH LV PRUH SROLWLFDO WKDQ
HFRQRPLF$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH HYROXWLRQWUDQVIRUPDWLRQ SULQFLSOH LI WKHUH LV
HYROXWLRQHJWKHQDWXUDOHYROXWLRQRIKXPDQVWRUHSURGXFHLQWKHVWDWHRI
QDWXUH LQ D SULPLWLYH ZD\ WKHUH LV WUDQVIRUPDWLRQ HJ WKH WHFKQLFDO
WUDQVIRUPDWLRQ RI KXPDQ DELOLW\ WR UHSURGXFH E\ WKH LQYHQWLRQ RI
SRSXODWLRQFRQWUROVWUDWHJLHV$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHV\PPHWU\DV\PPHWU\SULQFLSOHLIWKHUHLVV\PPHWU\
HJ WKH H[LVWHQFH RI GLIIHUHQW FODVVHV LQ VRFLHW\ WKHUH LV DV\PPHWU\
HJWKHULFKDUHPRUHOLNHO\WKDQWKHSRRUWRVXUYLYHUHSURGXFHDQGEH
ZHOOIHG$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHVRIWQHVVKDUGQHVVSULQFLSOHLIWKHUHLVVRIWQHVVHJ
FKDULW\WRWKHSRRUWKHUHLVKDUGQHVVHJWKHGHDWKRIPDQ\SRRUGXHWR
NLOOLQJLQZDU$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH VHULRXVQHVVSOD\IXOQHVV SULQFLSOH LI WKHUH LV
VHULRXVQHVVHJWKHVHULRXVEXVLQHVVRIWKRVHZKRWU\WRXQGHUVWDQGIRRG
VHFXULW\DQGRYHUSRSXODWLRQWKHUHLVSOD\IXOQHVVHJWKHSOD\IXOSDUWRI
WKRVHZKRWU\WRXQGHUVWDQGIRRGVHFXULW\DQGRYHUSRSXODWLRQZKHQWKH\
SOD\ DURXQG ZLWK GLIIHUHQW YHUVLRQV RI 0DOWKXVLDQLVP RYHU WLPH VR DV WR
UHVSRQG WR KLVWRULFDO FKDQJHV RYHU WLPH DQG WKHLU FKDOOHQJHV $QG WKH
UHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHDFWLYHQHVVLQDFWLYHVVSULQFLSOHLIWKHUHLVDFWLYHQHVV
HJ WKRVH ZKR DUH ZHOOIHG KDYH HQHUJ\ WR ZRUN WKHUH LV LQDFWLYHQHVV
HJWKHUHODWLYHLQDFWLYHQHVVRIWKRVHZKRDUHWLUHGDQGVLFNEHFDXVHRI
PDOQXWUWLRQ
,QUHODWLRQWRWKHVHOIQHVVRWKHUQHVVSULQFLSOHLIWKHUHLVVHOIQHVVHJ
WKHWHQGHQF\WREHPRVWO\FHQWHUHGRQRQHVVHOIRUJURXSDVVKRZQLQWKH
FDOO E\ VRFLDO HOLWHV WR UHVWULFWPDUULDJH DJDLQVW SHUVRQV VXIIHULQJ
SRYHUW\DQGRUGHIHFWVWKHUHLVRWKHUQHVVHJWKHWHQGHQF\WREHPRVWO\
FHQWHUHG RQ RWKHUV DV VKRZQ LQ WKH SROLF\ RI FKDULW\ WR WKH SRRU E\ D
EHQHYROHQWJRYHUQPHQW$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH UHJUHVVLRQSURJUHVVLRQ SULQFLSOH LI WKHUH LV
UHJUHVVLRQ HJ WKH UHJUHVVLRQ PDGH E\ 0DOWKXVLDQLVP DV VKRZQ LQ WKH
SUREOHPVSRLQWHGRXWE\WKHFULWLFVWKHUHLVSURJUHVVLRQHJWKHSURJUHVV
PDGH E\ 0DOWKXVLDQLVP DV VKRZQ LQ LWV FRQWULEXWLRQ WR D EHWWHU
&KDSWHU,QJUHGLHQWVDQGWKHLU7ZLQ4XDOLWLHV
,QJUHGLHQWV)RRG6HFXULW\DQG1XWULWLRQDO(FRQRPLFV
$ JRRG ZD\ WR HYDOXDWH WKH SRVVLELOLW\ RU LPSRVVLELOLW\ DQG
GHVLUDELOLW\ RU XQGHVLUDELOLW\ RI LQJUHGLHQWV IURP WKH SHUVSHFWLYH RI
VRFLHW\LVWRH[SORUHLQJUHGLHQWVIRRGVHFXULW\DQGQXWULWLRQDOHFRQRPLFV
7KH WHUP QXWULWLRQDO HFRQRPLFV UHIHUV WR D V\QWKHWLF FRQFHSW WKDW
GHDOVZLWKWKHLQWHUSOD\EHWZHHQHFRQRPLFV\VWHPVQXWULWLRQDOVWDWXVDQG
IRRGVHFXULW\DQGKRZFKDQJHVLQWKHIRUPHUDIIHFWWKHODWWHU1XWULWLRQDO
VWDWXV DIIHFWV RYHUDOO KHDOWK VWDWXV ZRUN SHUIRUPDQFH SRWHQWLDO DQG WKH
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
RYHUDOO SRWHQWLDO IRU HFRQRPLF GHYHORSPHQW HLWKHU LQ WHUPV RI KXPDQ
GHYHORSPHQW RU WUDGLWLRQDO ZHVWHUQ PRGHOV IRU DQ\ JLYHQ JURXS RI
SHRSOH:.X
0RGHVRI3URGXFWLRQDQG1XWULWLRQ
$V D VWDUW LW LV LPSRUWDQW WR XQGHUVWDQG PDMRU PRGHV RI SURGXFWLRQ
WKDW VRFLHWLHV KDYH XVHG WR SURGXFH WKH JRRGV DQG VHUYLFHV WKH\ KDYH
QHHGHG WKURXJKRXW KXPDQ KLVWRU\ DQG WKHVH PRGHV DUH IRUDJLQJ
VKLIWLQJ FXOWLYDWLRQ SDVWRUDOLVP DJULFXOWXUH DQG LQGXVWULDOLVP DV
GHVFULEHG EHORZ DQG VXPPDUL]HG LQ 7DEOH :. X 0 3DUN
D)RUDJLQJ
,Q IRUDJLQJ DOVR NQRZQ DV KXQWLQJ DQG JDWKHULQJ WKH VWUDWHJ\ LV
EDVHGRQVXEVLVWDQFHLQZKLFKDJURXSRISHRSOHJDWKHUVZLOGSODQWVDQG
KXQWV ZLOG DQLPDOV LQ RUGHU WR REWDLQ IRRG 7KLV VWUDWHJ\ ZDV WKH VROH
PRGHRIH[LVWHQFHIRUKXPDQEHLQJVIRUWKHYDVWPDMRULW\RIKXPDQKLVWRU\
LQFOXVLYH RI WKH DUFKHRORJLFDO DQG IRVVLO UHFRUG DQG FRQWLQXHG WR EH
SUDFWLFHGE\DIHZJURXSVDWOHDVWLQWRWKHPLGGOHSDUWRIWKHWKFHQWXU\
:.X
)RUDJLQJDVDPRGHRISURGXFWLRQLVJHQHUDOO\DVVRFLDWHGZLWKVPDOO
QRPDGLF JURXSV RI QR PRUH WKDQ ILIW\ DOVR NQRZQ DV EDQGV 7KH YDVW
PDMRULW\RIIRUDJLQJVRFLHWLHVGRQRWDFNQRZOHGJHH[FOXVLYHRZQHUVKLSRI
ODQG RU RWKHU PDMRU UHVRXUFHV WKRXJK WKH\ GR DFNQRZOHGJH SULPDU\ XVH
ULJKWV IRU JURXSV DQG SHRSOH PD\ LQGLYLGXDOO\ SRVVHVV VPDOO REMHFWV RU
WRROV VXFK DV D ERZ RU FXWWLQJ WRROV %HFDXVH IRUDJLQJ XVXDOO\ LQYROYHV
IUHTXHQWPRYHPHQWDQGWDNLQJIRRGQDWXUDOO\DYDLODEOHUDWKHUWKDQDOWHULQJ
ODQGVFDSHVIRUSURGXFWLRQPDQ\VFKRODUVVWDWHWKHIRUDJLQJKDVDPLQLPDO
QHJDWLYH HQYLURQPHQWDO LPSDFW FRPSDUHG WR RWKHU PRGHV RI SURGXFWLRQ
7KRXJK IRUDJHUV DUH JHQHUDOO\ OLPLWHG LQ DEVROXWH DPRXQW RI IRRG
DYDLODEOH LQ D JLYHQ DUHD IRUDJLQJ JURXSV VXFK DV WKH .XQJ LQ WKH
.DODKDUL 'HVHUW KDYH RIWHQ EHHQ FLWHG DV KDYLQJ D PRUH GLYHUVH GLHW DQG
VSHQGLQJ OHVV WLPH SHU ZHHN SURFXULQJ IRRG WKDQ VRFLHWLHV WKDW SUDFWLFH
RWKHUPRGHVRISURGXFWLRQVXFKDVLQWHQVLYHDJULFXOWXUH:.X
E6KLIWLQJ&XOWLYDWLRQ
,Q VKLIWLQJ FXOWLYDWLRQ WKH VWUDWHJ\ KHUH LV EDVHG RQ D PRGH RI
SURGXFWLRQ LQYROYLQJ WKH ORZ LQWHQVLW\ SURGXFWLRQ RI SODQWEDVHG IRRGV
WKLVPRGHLVDOVRNQRZQDVKRUWLFXOWXUHRUVODVKDQGEXUQDJULFXOWXUHLQ
VRPHWH[WV+RUWLFXOWXUDOVRFLHWLHVDUHJHQHUDOO\VLWXDWHGLQVHPLVHGHQWDU\
YLOODJHVRIDIHZKXQGUHGWKDWFOHDUDILHOGDQGEXUQWKHFOHDUHGYHJHWDWLRQ
LQ RUGHU WR XVH WKH DVKHV WR QRXULVK WKH VRLO KHQFH WKH SKUDVH VODVK DQG
&KDSWHU,QJUHGLHQWVDQGWKHLU7ZLQ4XDOLWLHV
EXUQ1H[WWKHJURXSSODQWVDFURSRUFURSVLQWKLVFOHDULQJDQGXVHVLWIRU
FXOWLYDWLRQIRUVHYHUDO\HDUV:.X
$W WKH HQG RI HDFK F\FOH WKH HQWLUH YLOODJH UHORFDWHV DQG VWDUWV WKH
SURFHVV DQHZ OHDYLQJ WKH ROG FOHDULQJ IDOORZ IRU D SHULRG RI GHFDGHV LQ
RUGHUWRDOORZUHJHQHUDWLRQWKURXJKWKHUHJURZWKRIZLOGYHJHWDWLRQ7KHVH
IRRGLWHPVFDQEHVXSSOHPHQWHGWKURXJKWKHUDLVLQJRIOLYHVWRFNKXQWLQJ
ZLOG JDPH DQG LQ PDQ\ FDVHV ZLWK WKH JDWKHULQJ RI ZLOG SODQWV :.
X%0LOOHU03DUN
+RZHYHU WKRXJK SHULRGLF PRYHPHQW SUHFOXGHV DEVROXWH SHUPDQHQW
RZQHUVKLS RI ODQG VRPH KRUWLFXOWXUDO VRFLHWLHV ILHUFHO\ GHIHQG FXUUHQW
WHUULWRULHVDQGSUDFWLFHYLROHQFHDJDLQVWQHLJKERULQJJURXSV)RULQVWDQFH
1DSROHRQ&KDJQRQ>@GHSLFWVWKH<DQDPDPRRI9HQH]XHODDQG%UD]LO
DVWKH
)LHUFH3HRSOH
+RUWLFXOWXUHFDQDOVRSURGXFHDEURDGGLHWDQGLQ
VRPH FDVHV PRUH IRRG SHU XQLW RI ODQG DUHD WKDQ IRUDJLQJ 7KRXJK
SRSXODWLRQV RI KRUWLFXOWXUDOLVWV WHQG WR KDYH JUHDWHU GHQVLW\ WKDQ WKRVH RI
IRUDJHUV WKH\ DUH JHQHUDOO\ OHVV GHQVH WKDQ WKRVH ZKLFK SUDFWLFH RWKHU
PRGHVRISURGXFWLRQ,ISUDFWLFHGRQDVPDOOVFDOHRYHUDODUJHDUHDZLWK
ORQJ IDOORZ SHULRGV KRUWLFXOWXUH KDV OHVV QHJDWLYH HQYLURQPHQWDO LPSDFW
WKDQDJULFXOWXUHRULQGXVWULDOLVPEXWPRUHWKDQIRUDJLQJ:.X%
0LOOHU
F3DVWRUDOLVP
,Q SDVWRUDOLVP WKH VWUDWHJ\ KHUH LV D UHOLDQFH RQ SURGXFWV IURP
OLYHVWRFN FRXSOHG ZLWK D VHDVRQDO QRPDGLF KHUGLQJ WUDGLWLRQ6RFLDO
JURXSV LQ SDVWRUDO VRFLHWLHV WHQG WR KDYH VLPLODU QXPEHUV DQG SRSXODWLRQ
GHQVLW\ WR KRUWLFXOWXUDO VRFLHWLHV 3DVWRUDO VRFLHWLHV RIWHQ WUDGH DQLPDO
SURGXFWVZLWKDJULFXOWXUDOVRFLHWLHVIRUSODQWEDVHGIRRGVWRDXJPHQWWKHLU
GLHW )UHTXHQW PRYHPHQW RIWHQ PHDQV WKDW SDVWRUDOLVP KDV D VLPLODU
HQYLURQPHQWDOLPSDFWWRKRUWLFXOWXUHWKRXJKLQVWDQFHVRIRYHUJUD]LQJDQG
FRQVHTXHQW ODQG GHJUDGDWLRQKDYH EHHQ VLWHG LQ VRPH FDVHV :.
X
,Q JHQHUDO SDVWRUDOLVPHQWDLOV D JUHDWHU UHOLDQFH RQ PHDW RU RWKHU
DQLPDO SURGXFWV VXFK DV PLON RU EORRG WKDQ RWKHU PRGHV RI SURGXFWLRQ
7KLV PRGH RI SURGXFWLRQ KDV D VLPLODU XVH ULJKWV SURILOH WR VKLIWLQJ
FXOWLYDWLRQ 7UDGLWLRQDOO\ SDVWRUDOLVP KDV FRLQFLGHG ZLWK D VXEVLVWHQFH
EDVHGHFRQRP\EXWLQWKHODVWVHYHUDOGHFDGHVVRPHSDVWRUDOLVWVRFLHWLHV
VXFK DV 0RQJROLD KDYH KHUGHG DQLPDOV DQG SUDFWLFHG QRPDGLF OLYLQJ
SDWWHUQVEXWKDYHSURGXFHGOLYHVWRFNSULPDULO\IRUPDUNHWH[FKDQJH:.
X
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
G$JULFXOWXUH
,QDJULFXOWXUHWKHVWUDWHJ\ KHUHLVWRLQYROYH FOHDULQJDQGXVLQJWKH
VDPHSORWRIODQGIRUDQH[WHQGHGSHULRGVRPHWLPHVVHYHUDOJHQHUDWLRQVLW
DOVRLQYROYHVWKHXVHRISORZVDQGGUDIWDQLPDOVLQWKHSUHSDUDWLRQRIODQG
IRUSODQWLQJDQGWKHFXOWLYDWLRQRIFURSV$JULFXOWXUHRIWHQVXSSRUWVPXFK
KLJKHU SRSXODWLRQ GHQVLWLHV WKDQ RWKHU PRGHV RI SURGXFWLRQ H[FHSW
LQGXVWULDOLVP DQG DJULFXOWXUDO VRFLHWLHV FDQ UDQJH LQ SRSXODWLRQ IURP D
IHZWKRXVDQGLQWRWKHPLOOLRQV:.X
%XW WKHUH LV D WUDGHRII LQ WKDW WKRXJK DJULFXOWXUH SURGXFHV PRUH
IRRG SHU XQLW RI ODQG DUHD WKDQ WKH SUHYLRXVO\ PHQWLRQHG PRGHV WKH
WHQGHQF\RIDJULFXOWXUDOVRFLHWLHVWRIRFXVRQUHODWLYHO\IHZFURSVKDVRIWHQ
PHDQWWKDWWKHVHVRFLHWLHVKDYHPXFKOHVVGLYHUVHGLHWVWKDQIRUDJLQJDQG
KRUWLFXOWXUDO VRFLHWLHV 7KHUH LV VRPH DUFKDHRORJLFDO DQG IRVVLO HYLGHQFH
WKDW SRSXODWLRQV LQ WUDQVLWLRQ IURP IRUDJLQJ WR DJULFXOWXUH KDYH WHQGHG WR
VXIIHUUHGXFHGVWDWXUHUHGXFHGPXVFXODWXUHDQGWRH[KLELWRWKHUPDUNHUV
RI PDOQXWULWLRQ 5HVHDUFK KDV VXJJHVWHG WKDW DJULFXOWXUH SDUDGR[LFDOO\
DOORZVDKLJKHUEXWOHVVKHDOWK\SRSXODWLRQIRUDJLYHQDUHD7KHDGYHQWRI
DJULFXOWXUHKDVPDUNHGWKDWDGYHQWRIVRFLDOVWUDWLILFDWLRQLQPDQ\SDUWVRI
WKH ZRUOG ZLWK PDUNHG GLIIHUHQWLDOV LQ DFFHVV WR UHVRXUFHV EHWZHHQ
VHJPHQWVRIWKHVDPHVRFLHW\7KLVPRGHRISURGXFWLRQDOVRLVPRUHOLNHO\
WRHQWDLOSHUPDQHQWLQGLYLGXDORUIDPLO\RZQHUVKLSRISDUWLFXODUWUDFWVRI
ODQGWKDQSUHYLRXVO\PHQWLRQHGPRGHVRISURGXFWLRQ$JULFXOWXUHKDVFR
RFFXUUHGZLWKERWKVXEVLVWHQFHDQGPDUNHWHFRQRPLHVRIWHQZLWKDVLQJOH
VRFLHW\H[KLELWLQJVRPHGHJUHHRIERWKW\SHVRIHFRQRPLHVDQGKDVDPRUH
QHJDWLYH LPSDFW RQ WKH HQYLURQPHQW WKDQ WKH DIRUHPHQWLRQHG PRGHV RI
SURGXFWLRQ:.X
H,QGXVWULDOLVP
,Q LQGXVWULDOLVP WKH VWUDWHJ\ KHUH LV WR FRPELQHDJULFXOWXUH ZLWK
PHFKDQL]HGLQGXVWULDOSURGXFWLRQRIJRRGVWKURXJKWKHXVHRIIRVVLOIXHOV
$GGLWLRQDOO\ LQGXVWULDO VRFLHWLHV XVH PHFKDQL]HG HTXLSPHQW LQ RUGHU WR
SUHSDUH ODQG IRU SODQWLQJ KDUYHVW FURSV DQG GLVWULEXWH IRRG WR ORFDWLRQV
GLVWDQW IURP ZKHUH WKH RULJLQDO FURSV ZHUH SODQWHG ,QGXVWULDOLVP VKRZV
VLPLODU WUHQGV WR DJULFXOWXUH LQ WHUPV RI SRSXODWLRQ GHQVLW\ DQG
HQYLURQPHQWDOLPSDFWH[FHSWWRDPXFKJUHDWHUGHJUHH:.X
2IFRXUVHGLHWDU\GLYHUVLW\FDQEHKLJKO\YDULDEOHXQGHUDQLQGXVWULDO
PRGHRISURGXFWLRQDQGFDQGHSHQGRQDFFHVVWRIRRGVSURGXFHGIRUORFDO
VXEVLVWHQFHRQWKHRQHKDQGRUWRLQFRPHOHYHODQGSXUFKDVLQJSRZHUYLVD
YLH IRRGV DYDLODEOH LQ IRRG PDUNHWV'LHWDU\ GLYHUVLW\ DQG QXWULWLRQDO
KHDOWK RIWHQ FRUUHODWH ZLWK WKH GHJUHH RI VRFLDO VWUDWLILFDWLRQ ZLWKLQ DQ
LQGXVWULDO VRFLHW\ DQG VRPHWLPHV EHWZHHQ VRFLHWLHV :. X 7
/HDWKHUPDQ
&KDSWHU,QJUHGLHQWVDQGWKHLU7ZLQ4XDOLWLHV
,Q WKH SDVW IHZ WKRXVDQG \HDUV WKH JHQHUDO WUHQG IRU PDQ\
VRFLHWLHVKDV EHHQ WRZDUG DJULFXOWXUH DQG LQ WKH SDVW WZR FHQWXULHV
WRZDUG LQGXVWULDOLVP 7KRXJK WKHVH WZR PRGHV RI SURGXFWLRQ DUH E\ QR
PHDQVVXSHULRUWRRWKHUPRGHVLQHYHU\UHVSHFWWKHIDFWWKDWVRFLHWLHVWKDW
SUDFWLFHWKHPWHQGWRKDYHODUJHUSRSXODWLRQVKLJKHUSRSXODWLRQGHQVLWLHV
DQG D PRUH FRPSOH[ VRFLDO VWUXFWXUH KDV FRUUHODWHG ZLWK WKH JHRJUDSKLF
H[SDQVLRQ RI DJULFXOWXUDO DQG LQGXVWULDO VRFLHWLHV DW WKH H[SHQVH RI
VRFLHWLHV HPSKDVL]LQJ RWKHU PRGHV RI SURGXFWLRQ &RQFXUUHQW ZLWK WKLV
WUHQGWRZDUGLQWHQVLILHGDJULFXOWXUDODQGLQGXVWULDOSURGXFWLRQKDVEHHQWKH
ULVHRIWKHVRFLDODQGHFRQRPLFSDUDGLJPRIFDSLWDOLVPZKLFKHQWDLOVWKH
SURGXFWLRQDQGVDOHRIJRRGVDQGVHUYLFHVLQWKHPDUNHWSODFHLQRUGHUWR
SURGXFH D SURILW 7KHVH WUHQGV KDYH KDG SURIRXQG LPSOLFDWLRQV IRU
QXWULWLRQDOVWDWXVIRUKXPDQEHLQJVRQDJOREDOVFDOH:.X
*OREDOL]DWLRQDQG1XWULWLRQ
7KHLVVXHFRQFHUQLQJWKH JOREDOVFDOHLQWKHSUHYLRXVVHQWHQFH KDV
WRGRZLWKJOREDOL]DWLRQZKLFKLVRQHRIWKHPRVWVLJQLILFDQWHFRQRPLF
DQGHFRORJLFDOSKHQRPHQDWRGD\:.X
&RQVLGHU IRU LOOXVWUDWLRQ VRPH PDLQ H[DPSOHV RI WKH UHODWLRRQVKLS
EHWZHHQJOREDOL]DWLRQDQGQXWULWLRQEHORZ
D/DQG([SURSULDWLRQ
,QODQGH[SURSULDWLRQWKHVWUDWHJ\KHUHLVWKHGLVUXSWLRQRIWUDGLWLRQDO
RZQHUVKLS RI ODQG E\ PRUH SRZHUIXO LQWHUHVWV VXFK DV ORFDO HOLWHV
JRYHUQPHQWV RU WUDQVQDWLRQDO FRUSRUDWLRQV ZKLFK FDQ DOVR PDUNHGO\
DIIHFW QXWULWLRQDO VWDWXV >5LFKDUG> 5REELQV >@ GHWDLOV H[DPSOHV LQ
0H[LFR RI SHDVDQWV IDFLQJ ODQG H[SURSULDWLRQ LQ WKH IDFH RI DJULEXVLQHVV
FRQVROLGDWLRQXQGHUWKH1RUWK$PHULFDQ)UHH7UDGH$JUHHPHQW1$)7$
LQPDQ\FDVHVWKHVHVXEVLVWHQFHSURGXFHUVDUHIRUFHGHLWKHUWRPLJUDWHWR
FLWLHVRUZRUNVSRUDGLFDOO\DVDJULFXOWXUDOODERUV6LQFHPRVWLIQRWDOOIRRG
PXVW EH SXUFKDVHG XQGHU WKHVH FLUFXPVWDQFHV WKH IRRG VHFXULW\ DQG
QXWULWLRQDO VWDWXV RI WKHVH QHZHU DGGLWLRQV WR WKH SRRO RI SRRU XQVNLOOHG
ODERURIWHQGHFOLQHV:.X
E/DQG'HJUDGDWLRQ
,Q ODQG GHJUDGDWLRQ WKH VWUDWHJ\ KHUH UHIHUV WR WKH JHQHUDO LGHD RI
UHGXFHGVRLOIHUWLOLW\DQGUHGXFHGDELOLW\RIDJLYHQDUHDRIODQGWRSURYLGH
IRU SHRSOHV VXEVLVWHQFH QHHGV DV FRPSDUHG WR HDUOLHU SHULRGV LQ KXPDQ
KLVWRU\RQWKDWVDPHODQGDUHD:.X
)RU LQVWDQFH IDUPHU OLQNV PDOQXWULWLRQ LQ D +DLWLDQ YLOODJH ZLWK
YXOQHUDELOLW\WRLQIHFWLRXVGLVHDVHVLQFOXGLQJWXEHUFXORVLVDQG+,9$,'6
ERWK LQ WHUPV RI FKDQFH RI LQIHFWLRQ DQG VHYHULW\ RI V\PSWRPV IRU WKRVH
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
&KDSWHU,QJUHGLHQWVDQGWKHLU7ZLQ4XDOLWLHV
WR LQFUHDVH GLVSDULWLHV RI IRRG VHFXULW\ DQG QXWULWLRQDO VWDWXV ZLWKLQ DQG
EHWZHHQVRFLDOJURXSVZLWKVRPHVHJPHQWVVXIIHULQJPDUNHGGHJUDGDWLRQ
RIERWK:.X
$QG IRRG FRPPRGLWL]DWLRQ RU WKH WUHDWPHQW RI IRRG SULPDULO\ DV D
PDUNHWFRPPRGLW\UDWKHUWKDQSULRULWL]LQJRWKHUXVHVVXFKDVVXVWHQDQFH
KXPDQ ULJKWV HQWLWOHPHQW RU VRFLDO UHODWLRQV UHIHUV WR WKH GHOHWHULRXV
HIIHFWVRIIRRGFRPPRGLWL]DWLRQIRUUXUDOFRPPXQLWLHVLQ&HQWUDO$PHULFD
WR LQFOXGH UHGXFWLRQV LQ IRRG VHFXULW\ DQG QXWULWLRQDO VWDWXV 0XFK RI
WRXULVPOLWHUDWXUHGHWDLOVPDUNHGLQFUHDVHVLQWKHFRPPRGLWL]DWLRQRIIRRG
VXEVHTXHQW WR WKH LQWURGXFWLRQ RI WRXULVP DV D IRUP RI PDUNHW EDVHG
HFRQRPLF GHYHORSPHQW >.@ 'HZH\ >@ DQG 5REELQV DOVR VWDWH WKDW
ZKHQ IRRG LV SULPDULO\ VHHQ DV D FRPPRGLW\ E\ SRZHUIXO LQWHUHVWV QRW
RQO\ GRHV VXFK DQ LGHRORJ\ LQFUHDVH GHORFDOL]DWLRQ EXW DOVR ODQG
GHJUDGDWLRQ DQG H[SURSULDWLRQ DV HOLWH ODQG RZQHUV RU WUDQVQDWLRQDO
FRUSRUDWLRQVFDXVHPDVVLYHVRFLDODQGHFRORJLFDOGLVUXSWLRQVLQWKHSURFHVV
RI PRQRFURSSLQJ IRRG FURSV RYHU EURDG VZDWKV RI ODQG LQ RUGHU WR UHDS
PD[LPXP SURILWV IURP RYHUVHDV VDOHV ,QGHHG GHORFDOL]DWLRQ DQG
FRPPRGLWL]DWLRQ KDYH VLJQLILFDQW SRWHQWLDO WR GLPLQLVK IRRG VHFXULW\ DQG
QXWULWLRQDO VWDWXV LQ SRRU FRPPXQLWLHV RYHU EURDG DUHDV RI WKH ZRUOG
:.X
3UREOHPVZLWKWKH6WXG\RI1XWUWLRQDO(FRQRPLFV
+RZHYHUIRUWKHFULWLFVWKLVVWXG\RIQXWULWLRQDOHFRQRPLFVKDVVRPH
PDMRU SUREOHPV &RQVLGHU IRU LOOXVWUDWLRQ D IHZ H[DPSOHV EHORZ DV
VXPPDUL]HGLQ7DEOH
)LUVWO\RQHPDLQFULWLFLVPRIWKHVWXG\RIQXWULWLRQDOHFRQRPLFVLVWKDW
LWLVQRWQHFHVVDULO\DFFXUDWH
)RUH[DPSOHIRUWKHFULWLFVWKHDFFRXQWE\1DSROHRQ&KDJQRQRIWKH
<DQDPDPR RI 9HQH]XHOD DQG %UD]LO DV WKH
)LHUFH 3HRSOH
LQ WKH
KRUWLFXOWXUDO PRGH RI SURGXFWLRQ KDV EHHQ KLJKO\ FULWLFL]HG E\ RWKHU
VFKRODUV
6HFRQGO\DQRWKHUPDLQFULWLFLVPRIWKHVWXG\RIQXWULWLRQDOHFRQRPLFV
LVWKDWLWGRHVQRWQHFHVVDULO\PDNHDGLIIHUHQFHWRWKRVHZKRVXIIHU
)RU LQVWDQFH IRU WKH FULWLFV UHJDUGOHVV RI RQHV RYHUDOO SHUVSHFWLYH
RQ WKH FRVWV DQG EHQHILWV RI HFRQRPLF JOREDOL]DWLRQ WKHUH DUH VHYHUDO
H[DPSOHVRI JURXSV RI SHRSOH VXIIHULQJ D GHFOLQH LQ QXWULWLRQDO VWDWXHV
VXEVHTXHQW WR WKH LQWURGXFWLRQ RI D FDSLWDOLVW PDUNHWEDVHG HFRQRP\ LQWR
DQ DUHD WKDW KDV SUHYLRXVO\ SUDFWLFHG DQ HFRQRP\ EDVHG PRUH RQ
VXEVLVWHQFH SURGXFWLRQ DQG UHFLSURFLW\ DQG DOWKRXJK VRPH SHRSOHV
IRRG VHFXULW\ PD\ LPSURYH ZLWK DFFHVV WR PRUH VWHDG\ LQFRPH PDQ\
SHRSOH LQ FRPPXQLWLHV WKDW KDYH KHUHWRIRUH SUDFWLFHG D VXEVLVWHQFH
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
&KDSWHU,QJUHGLHQWVDQGWKHLU7ZLQ4XDOLWLHV
QHFHVVDULO\PDNHDGLIIHUHQFHWRWKRVHZKRVXIIHUWKDWLWVGHILQLWLRQVFDQ
EHSUREOHPDWLFHWF$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH DEVROXWHQHVVUHODWLYHQHVV SULQFLSOH LI WKHUH LV
DEVROXWHQHVV HJ WKH DEVROXWH YLHZ RI ORFDO HOLWHV JRYHUQPHQWV RU
WUDQVQDWLRQDOFRUSRUDWLRQVLQWKHFDVHRIODQGH[SURSULDWLRQDVVWXGLHG
E\ 5REELQV >@ WKHUH LV UHODWLYHQHVV HJ ZKDW LV ULJKW IRU ORFDO
HOLWHV JRYHUQPHQWV RU WUDQVQDWLRQDO FRUSRUDWLRQV LQ WKH FDVH RI ODQG
H[SURSULDWLRQ LV QRW QHFHVVDULO\ VR IRU WKH FULWLFV OLNH 5REELQV >@
VLQFH LQ WKH H[DPSOHV FRQFHUQLQJ SHDVDQWV LQ 0H[LFR LQ PDQ\ FDVHV
WKHVH VXEVLVWHQFHSURGXFHUVDUHIRUFHGHLWKHUWR PLJUDWHWRFLWLHVRU ZRUN
VSRUDGLFDOO\DVDJULFXOWXUDOODERUV$QGWKHUHYHUVHGLUHFWLRQDOVRKROGV
WUXH
,QUHODWLRQWRWKHSDUWLDOLW\WRWDOLW\SULQFLSOHLIWKHUHLVSDUWLDOLW\HJ
WKH SDUWLDO YLHZ RI ORFDO HOLWHV JRYHUQPHQWV RU WUDQVQDWLRQDO
FRUSRUDWLRQV LQ WKH FDVH RI ODQG H[SURSULDWLRQ DV VWXGLHG E\ 5REELQV
>@WKHUHLVWRWDOLW\HJWKHPRUHKROLVWLFYLHZRIODQGH[SURSULDWLRQ
VXFKWKDWWKHZKROHLVQRWWKHVXPRILWVSDUWVWKDWLVLWFDQQRWEHUHGXFHG
WR WKH VXP RI RSSRVLQJ YLHZV RI ORFDO HOLWHV JRYHUQPHQWV RU
WUDQVQDWLRQDOFRUSRUDWLRQVRQWKHRQHKDQGDQGWKHLUFULWLFVOLNH5REELQV
RQWKHRWKHUKDQGVLQFHWKHUHZLOOHPHUJHQHZYLHZVLQWKHIXWXUHQRW\HW
NQRZQ WRGD\ MXVW DV WKHUH DUH DOUHDG\ FULWLFLVPV DERXW YLHZV RQ ERWK
VLGHV$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH SUHGLFWDELOLW\XQSUHGLFWDELOLW\ SULQFLSOH LI WKHUH LV
SUHGLFWDELOLW\ HJ WKH SUHGLFWDEOH WHQGHQF\ RI WKH DGYRFDWHV RI
JOREDOL]DWLRQQRZDGD\VWRVSHDNDERXWLWVSRVLWLYHHFRQRPLFDQGVRFLDO
EHQHILWV WKHUH LV XQSUHGLFWDELOLW\ HJ WKH PRUH GLIILFXOW WDVN WR SUHGLFW
H[DFWO\ WKH H[WHQW WR ZKLFK JOREDOL]DWLRQ ZLOO ODVW LQ D SDUWLFXODU IXWXUH
KLVWRULFDO HUD VLQFH WKHUH DUH DOUHDG\ YDULRXV FULWLFLVPV DJDLQVW LW DV
SRLQWHGRXWE\WKHFULWLFVDIRUHFLWHG$QGWKHUHYHUVHGLUHFWLRQDOVRKROGV
WUXH
,Q UHODWLRQ WR WKH H[SOLFDELOLW\LQH[SOLFDELOLW\ SULQFLSOH LI WKHUH LV
H[SOLFDELOLW\HJWKHH[SODQDWLRQE\WKHDGYRFDWHVRIFDVKFURSSLQJRQ
WKH EDVLV RI LWV SURILWDELOLW\ E\ SODQWLQJ PDVVLYH DUHDV ZLWK RQH FDVK
FURS WKHUH LV LQH[SOLFDELOLW\ HJ WKH ODFN RI VXIILFLHQW H[SODQDWLRQ E\
WKHDGYRFDWHVRIFDVKFURSSLQJRIZK\SODQWLQJPDVVLYHDUHDVZLWKRQH
FDVK FURS LV QHFHVVDULO\ SURILWDEOH VLQFH IRU WKH FULWLFV &XED LV DQ
H[DPSOH RI JURZLQJ LPSRYHULVKPHQW DQG PDOQXWULWLRQ FRQFXUUHQW ZLWK
LQFUHDVLQJFRQFHQWUDWLRQRIODQGDQGRWKHUUHVRXUFHVLQIHZHUKDQGV$QG
WKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH ILFWLRQUHDOLW\ SULQFLSOH LI WKHUH LV ILFWLRQ HJ WKH
ILFWLRQDODVSHFWRIWKHDFFRXQWE\1DSROHRQ&KDJQRQRIWKH<DQDPDPR
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
RI 9HQH]XHOD DQG %UD]LO DV LW KDV EHHQ KLJKO\ FULWLFL]HG E\ RWKHU
VFKRODUV WKHUH LV UHDOLW\ HJ WKH UHDOLVWLF DVSHFW RI WKH DFFRXQW E\
1DSROHRQ&KDJQRQRIWKH<DQDPDPRRI9HQH]XHODDQG%UD]LOHVSHFLDOO\
LQUHJDUGWRWKHLUSUDFWLFHRIVKLIWLQJFXOWLYDWLRQ$QGWKHUHYHUVHGLUHFWLRQ
DOVRKROGVWUXH
,Q UHODWLRQ WR WKH ILQLWHQHVVWUDQVILQLWHQHVV SULQFLSOH LI WKHUH LV
ILQLWHQHVV HJ WKH ILQLWH QXPEHU RI WKH FDWHJRULHV RI WKH PRGHV RI
SURGXFWLRQ LQ WKH DUWLFOH DIRUHFLWHG WKHUH LV WUDQVILQLWHQHVV HJ WKH
WUDQVILQLWHQXPEHURIDOOWKHSRVVLEOHLQGLYLGXDOVLQKLVWRU\ZKRKDYHHYHU
HQJDJHGLQDQ\RIWKH PRGHVRISURGXFWLRQ $QGWKHUHYHUVHGLUHFWLRQ
DOVRKROGVWUXH
,Q UHODWLRQ WR WKH SUHFLVHQHVVYDJXHQHVV SULQFLSOH LI WKHUH LV
SUHFLVHQHVVHJWKHSUHFLVHLGHQWLILFDWLRQRIWKHPRGHVRISURGXFWLRQLQ
WKH DUWLFOH DIRUHFLWHG WKHUH LV YDJXHQHVV HJ WKH YDJXHQHVV LQ WKH
LGHQWLILFDWLRQRIWKHPRGHVRISURGXFWLRQLQWKHDUWLFOHDIRUHFLWHGVLQFHLW
LVQRWFOHDUZK\WKHUHPXVWEHRQO\QRWDQGVRRQ$QGWKH
UHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH VLPSOHQHVVFRPSOLFDWHGQHVV SULQFLSOH LI WKHUH LV
VLPSOHQHVVHJWKHUHODWLYHO\VLPSOHDQDO\VLVRI FDVKFURSSLQJE\WKH
DGYRFDWHVWKHUHLVFRPSOLFDWHGQHVVHJWKHUHODWLYHO\PRUHFRPSOLFDWHG
DQDO\VLVRIFDVKFURSSLQJE\FKDOOHQJLQJWKHFODLPVDQGDVVXPSWLRQV
DV VKRZQ LQ WKH SUREOHPV SRLQWHG RXW E\ WKH FULWLFV DV FLWHG $QG WKH
UHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHRSHQQHVVKLGGHQQHVVSULQFLSOHLIWKHUHLVRSHQQHVV
HJ WKH RSHQ H[SORUDWLRQ RI WKH UHODWLRQVKLS EHWZHHQ JOREDOL]DWLRQ DQG
KLJKHU LQFRPH IRU QXWULWLRQ LQ WKH VWXG\ RQ JOREDOL]DWLRQ DQG QXWULWLRQ
WKHUHLVKLGGHQQHVVHJWKHKLGGHQELDVLQWKHVWXG\RQJOREDOL]DWLRQDQG
QXWULWLRQ VLQFH PDQ\ FULWLTXHV WKH SROLFLHV RI WKH :RUOG %DQN DQG WKH
,QWHUQDWLRQDO 0RQHWDU\ )XQGLQ WKH SURPRWLRQ RI KLJK LQWHQVLW\ FDSLWDO
LQYHVWPHQW LQ GHYHORSLQJ QDWLRQV DV GLVSDULWLHV ZLWKLQ QDWLRQV DQG
JURZLQJSRYHUW\UDWHVLQ PDQ\ QDWLRQVDOVRSURYLGHFRPSHOOLQJHYLGHQFH
RIWKHLGHDWKDWWKHUHZDUGVRIHFRQRPLFJOREDOL]DWLRQDUHXQHYHQDWEHVW
:.X&:HOOHU0)RUW$QGWKHUHYHUVHGLUHFWLRQDOVR
KROGVWUXH
,QUHODWLRQWRWKHGHQVHQHVVHPSWLQHVVSULQFLSOHLIWKHUHLVGHQVHQHVV
HJ WKH UHODWLYHO\ GHQVHU FRQFHQWUDWLRQ RI WKH SRSXODWLRQV RI
KRUWLFXOWXUDOLVWV LQ WKDW SRSXODWLRQV RI KRUWLFXOWXUDOLVWV WHQG WR KDYH
JUHDWHU GHQVLW\ WKDQ WKRVH RI IRUDJHUV WKHUH LV HPSWLQHVV HJ WKH
UHODWLYHO\ OHVV GHQVH RU PRUH HPSW\ FRQFHQWUDWLRQ RI WKH SRSXODWLRQV RI
IRUDJHUVLQWKDWWKH\DUHOHVVGHQVHWKDQWKRVHRIKRUWLFXOWXUDOLVWV$QGWKH
UHYHUVHGLUHFWLRQDOVRKROGVWUXH
&KDSWHU,QJUHGLHQWVDQGWKHLU7ZLQ4XDOLWLHV
,QUHODWLRQWRWKHFKDQJHFRQVWDQF\SULQFLSOHLIWKHUHLVFKDQJHHJ
WKH HYHU QHZ ZD\V WR SURGXFH DV VKRZQ LQ WKH PRGHV RI SURGXFWLRQV
DIRUHGLVFXVVHG WKHUH LV FRQVWDQF\ HJ WKH HYHU FRQVWDQW H[LVWHQFH RI
GLIIHUHQW SUREOHPV LQ WKH HYHU QHZ ZD\V WR SURGXFH DV VKRZQ LQ WKH
SUREOHPV ZLWK WKH PRGHV RI SURGXFWLRQV DIRUHGLVFXVVHG $QG WKH
UHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHRUGHUFKDRVSULQFLSOHLIWKHUHLVRUGHUHJWKHPRUH
RUOHVVRUGHUO\DSSHDUDQFHRIWKHZRUOGLIORRNHGIURPWKHYDQWDJHSRLQW
RIKRZVWDUWLQJLQWKHODWH)LIWHHQWKFHQWXU\(XURSHDQSRZHUVH[SDQGHG
EH\RQG WKH (XURSHDQ VXEFRQWLQHQW WR IRXQG FRORQLHV LQ WKH $PHULFDV
ZKLFKOHGWRZHDOWKFUHDWLRQLQ(XURSHWKHUHLVFKDRVHJWKHPRUHRU
OHVVFKDRWLFDSSHDUDQFHRIWKHZRUOGLIORRNHGIURPWKHYDQWDJHSRLQWRI
KRZWKH(XURSHDQV
GLVFRYHUHG
WKH$PHULFDVVHWWLQJLQPRWLRQDSURFHVV
WKDWZRXOGGLVUXSWPDQ\VRFLHWLHVDQGGHYDVWDWHLQGLJHQRXVSRSXODWLRQVRI
WKH :HVWHUQ +HPLVSKHUH :. X $QG WKH UHYHUVH GLUHFWLRQ DOVR
KROGVWUXH
,Q UHODWLRQ WR WKH VORZQHVVTXLFNQHVV SULQFLSOH LI WKHUH LV VORZQHVV
HJ WKH UHODWLYHO\ VORZHU VSHHG RI D KRXVHKROG WR JHW DFFHVV WR WKH
SRUWLRQV RI GLHW ORFDOO\ DIWHU WKH RFFXUUHQFH RI GHORFDOL]DWLRQ DV
H[SODLQHG E\ 3HOWR DQG 3HOWR WKHUH LV TXLFNQHVV HJ WKH UHODWLYHO\
TXLFNHUVSHHGRIDKRXVHKROGWRJHWDFFHVVWRWKHSRUWLRQVRIGLHWORFDOO\
ORQJEHIRUHWKHRFFXUUHQFHRIGHORFDOL]DWLRQ$QGWKHUHYHUVHGLUHFWLRQ
DOVRKROGVWUXH
,QUHODWLRQWRWKHH[SDQVLRQFRQWUDFWLRQSULQFLSOHLIWKHUHLVH[SDQVLRQ
HJWKHUHODWLYHH[SDQVLRQRI(XURSHDQSRZHUVWRWKHUHVWRIWKH ZRUOG
VWDUWLQJLQWKHODWHWKFHQWXU\IRUFRORQL]DWLRQWKHUHLVFRQWUDFWLRQHJ
WKH UHODWLYH GHFOLQH RI &KLQD ZKHQ WKH (XURHSDQV VWDUWHG FRORQL]LQJ WKH
UHVWRIWKHZRUOGLQWKHPRGHUQHUD$QGWKHUHYHUVHGLUHFWLRQDOVRKROGV
WUXH
,Q UHODWLRQ WR WKH WKHRU\SUD[LV SULQFLSOH LI WKHUH LV WKHRU\ HJ WKH
WKHRUHWLFDO FRQVWUXFWLRQ RI JOREDOL]DWLRQ LQ HFRQRPLFV WKHUH LV SUD[LV
HJWKHSUDFWLFDODSSOLFDWLRQRIWKHLGHDRIJOREDOL]DWLRQLQHFRQRPLFV
WR WKH ILHOG RI QXWULWLRQDO VFLHQFH DV VKRZQ LQ WKH VWXG\ RI JOREDOL]DWLRQ
DQGQXWULWLRQ$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHFRQYHQWLRQQRYHOW\SULQFLSOHLIWKHUHLVFRQYHQWLRQ
HJ WKH FRQYHQWLRQDO ZLVGRP DERXW WKH PRGHV RI SURGXFWLRQ LQ WKH
PRGHUQ HFRQRPLF HUD WKHUH LV QRYHOW\ HJ WKH DOWHUQDWLYH QRYHO
FKDOOHQJHWRWKHFRQYHQWLRQDOZLVGRPDERXWWKHPRGHVRISURGXFWLRQLQ
WKH PRGHUQ HUD E\ WKH QHZ LGHD RI JOREDOL]DWLRQ QRZDGD\V LQ WKH
SRVWPRGHUQ HUD ZKLFK KDV SURIRXQG LPSOLFDWLRQV IRU QXWULWLRQDO VWDWXV
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
IRUKXPDQEHLQJVRQDJOREDOVFDOH$QGWKHUHYHUVHGLUHFWLRQDOVRKROGV
WUXH
,Q UHODWLRQ WR WKH HYROXWLRQWUDQVIRUPDWLRQ SULQFLSOH LI WKHUH LV
HYROXWLRQHJWKHQDWXUDOHYROXWLRQRIKXPDQVWRJDWKHUZLOGSODQWVDQG
NLOOZLOGDQLPDOVLQWKHVWDWHRIQDWXUHLQDSULPLWLYHZD\DVLQIRUDJLQJ
WKHUHLVWUDQVIRUPDWLRQHJWKHWHFKQLFDOWUDQVIRUPDWLRQRIKXPDQDELOLW\
WR SURGXFH E\ WKH LQYHQWLRQ RI LQGXVWULDOLVP DQG QRZDGD\V
JOREDOL]DWLRQ$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHV\PPHWU\DV\PPHWU\SULQFLSOHLIWKHUHLVV\PPHWU\
HJ WKH H[LVWHQFH RI GLIIHUHQW HFRQRPLHV OLNH WKH UHFLSURFDO JLIW
H[FKDQJHFRPSHWLWLYHJLIWH[FKDQJHDQGLPSHUVRQDO PDUNHWH[FKDQJH
WKHUH LV DV\PPHWU\ HJ LPSHUVRQDO PDUNHW H[FKDQJH LV WKH PRVW
GRPLQDQW VRFLDO UHODWLRQV QRZDGD\V LQ RXU DJH RI JOREDOL]DWLRQ ZKHQ
FRQWUDVWHG ZLWK WKH UHFLSURFDO JLIW H[FKDQJH DQG FRPSHWLWLYH JLIW
H[FKDQJH$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHVRIWQHVVKDUGQHVVSULQFLSOHLIWKHUHLVVRIWQHVVHJ
WKH SUDFWLFH RI FRRSHUDWLRQ LQ JDWKHULQJ ZLOG SODQWV LQ WKH PRGH RI
SURGXFWLRQ NQRZQ DV IRUDJLQJ WKHUH LV KDUGQHVV HJ WKH SUDFWLFH RI
YLROHQFHE\ VRPH KRUWLFXOWXUDOVRFLHWLHV ZKLFK ILHUFHO\ GHIHQGFXUUHQW
WHUULWRULHV DQG SUDFWLFH YLROHQFH DJDLQVW QHLJKERULQJ JURXSV $QG WKH
UHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH VHULRXVQHVVSOD\IXOQHVV SULQFLSOH LI WKHUH LV
VHULRXVQHVV HJ WKH VHULRXV EXVLQHVV RI WKRVH WR XQGHUVWDQG ODQG
GHJUDGDWLRQ WKHUH LV SOD\IXOQHVV HJ WKH SOD\IXO SDUW RI WKRVH WR
XQGHUVWDQG ODQG GHJUDGDWLRQ ZKHQ WKH\ SOD\ DURXQG ZLWK GLIIHUHQW
GHILQLWLRQV GHSHQGLQJ LQ ODUJH SDUW RQ WKH VFKRODU RU VWDNHKROGHU LQ
TXHVWLRQ DV SRLQWHG RXW E\ %ODNLH DQG %URRNILHOG $QG WKH UHYHUVH
GLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHDFWLYHQHVVLQDFWLYHVVSULQFLSOHLIWKHUHLVDFWLYHQHVV
HJWKHDFWLYHQHVVRIWKRVHZKRZHUHKHDOWK\HQRXJKWRZRUNDVVKRZQ
E\WKRVH$PHULQGLDQVSULRUWRWKHLQIHFWLRXVGLVHDVHRIWHQSUHFHGLQJDQG
IDFLOLWDWLQJVXEVHTXHQWFRQTXHVWE\(XURSHDQSRZHUVLQWKHHDUO\PRGHUQ
HUD WKHUH LV LQDFWLYHQHVV HJ WKH UHODWLYH LQDFWLYHQHVV RI WKRVH
$PHULQGLDQV ZKR ZHUH WRR WLUHG VLFN RU ROG ZKHQ WKH\ VXIIHUHG IURP
WKH GHFLPDWLRQWKURXJK LQIHFWLRXV GLVHDVH RIWHQ SUHFHGLQJ DQG
IDFLOLWDWLQJVXEVHTXHQWFRQTXHVWE\(XURSHDQSRZHUVLQWKHPRGHUQHUD
,QUHODWLRQWRWKHVHOIQHVVRWKHUQHVVSULQFLSOHLIWKHUHLVVHOIQHVVHJ
WKHWHQGHQF\WREHPRVWO\FHQWHUHGRQRQHVVHOIRUJURXSDVVKRZQLQWKH
(XURSHDQFRORQL]DWLRQRIWKHZRUOGLQWKHPRGHUQHUDWKHUHLVRWKHUQHVV
HJ WKH WHQGHQF\ WR EH PRVWO\ FHQWHUHG RQ RWKHUV DV VKRZQ LQ WKH
DFDGHPLF TXHVW E\ VRPH UHVHDUFKHUV IRU D PRUH REMHFWLYH DFFRXQW RI
&KDSWHU,QJUHGLHQWVDQGWKHLU7ZLQ4XDOLWLHV
,QJUHGLHQWVDQG&XOWXUH
,QJUHGLHQWVZKHQH[DPLQHGIURPWKHSHUVSHFWLYHRIFXOWXUHFDQFDVW
DQLOOXPLQDWLQJOLJKWRQWKHLUSRVVLELOLW\RULPSRVVLELOLW\DQGGHVLUDELOLW\
RU XQGHVLUDELOLW\ DQG WKLV FDQ EH VKRZQ E\ ZD\ RI WZR FDVH VWXGLHV
QDPHO\LQJUHGLHQWVGLHWDQGWKHHWKLFVRIHDWLQJPHDWDQG
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
,QJUHGLHQWV'LHWDQGWKH(WKLFVRI(DWLQJ0HDW
$Q H[FHOOHQW FDVH VWXG\ KHUH WR XQGHUVWDQG LQJUHGLHQWV IURP WKH
SHUVSHFWLYH RI FXOWXUH KDV WR GR ZLWK LQJUHGLHQWV GLHW DQG WKH HWKLFV RI
HDWLQJPHDW
7KH SKUDVH HWKLFV RI HDWLQJ PHDW UHIHUV WR WKH FRQWURYHUV\ DQG
GHEDWH DERXW WKH DFW RI XQQHFHVVDU\ NLOOLQJ RI VHQWLHQW EHLQJV OLNH
DQLPDOVIRUIRRG:.Q
+LVWRULFDOO\ WKHUH KDYH EHHQ VHYHUDO PDMRU DUJXPHQWV DJDLQVW HDWLQJ
PHDWDVH[SODLQHGEHORZDQGVXPPDUL]HGLQ7DEOH
)LUVW$UJXPHQW(WKLFVRI.LOOLQJIRU)RRG
7KH ILUVW DUJXPHQW DJDLQVW HDWLQJ PHDW KDV WR GR ZLWK HWKLFV RI
NLOOLQJIRUIRRG:.Q
)RU
H[DPSOH
3ULQFHWRQ
8QLYHUVLW\
SURIHVVRU3HWHU
6LQJHUEHOLHYHV WKDW LI DOWHUQDWLYH PHDQV RI VXUYLYDO H[LVW RQH RXJKW WR
FKRRVHWKHRSWLRQWKDWGRHVQRWFDXVHXQQHFHVVDU\KDUPWRDQLPDOV0RVW
HWKLFDO YHJHWDULDQV DUJXH WKDW WKH VDPH UHDVRQV H[LVW DJDLQVW NLOOLQJ
DQLPDOVWRHDWDVDJDLQVWNLOOLQJKXPDQVWRHDW(WKLFDOYHJHWDULDQVDOVR
EHOLHYHWKDWNLOOLQJDQDQLPDOOLNHNLOOLQJDKXPDQFDQRQO\EHMXVWLILHGLQ
H[WUHPH FLUFXPVWDQFHV DQG WKDW FRQVXPLQJ D OLYLQJ FUHDWXUH IRU LWV
HQMR\DEOHWDVWHFRQYHQLHQFHRUQXWULWLRQDOYDOXHLVQRWVXIILFLHQWFDXVH
:.Q
6HFRQG$UJXPHQW7UHDWPHQWRI$QLPDOV
7KH VHFRQG DUJXPHQW DJDLQVW HDWLQJ PHDW KDV WR GR ZLWK WKH
WUHDWPHQWRIDQLPDOV:.Q
)RULQVWDQFH)DUP6DQFWXDU\>@EHOLHYHVWKDWFRPPRGLI\LQJDQG
VODXJKWHULQJ DQLPDOV LV LQFRPSDWLEOH ZLWK WKH GHILQLWLRQ RI
KXPDQH
ZKLFK DFFRUGLQJ WR WKH :HEVWHU
V 'LFWLRQDU\ PHDQV
FKDUDFWHUL]HG E\
NLQGQHVVPHUF\RUFRPSDVVLRQ
:.Q
7KLUG$UJXPHQW$QLPDO&RQVFLRXVQHVV
7KH WKLUG DUJXPHQW DJDLQVW HDWLQJ PHDW KDV WR GR ZLWK DQLPDO
FRQVFLRXVQHVVZKLFKKDVWZRVSHFLILFSDUWVIRUDQDO\VLV:.Q
,Q UHJDUG WR WKH ILUVW SDUW RI WKH DUJXPHQW (XJHQH /LQGHQ >@
DXWKRU RI 7KH 3DUURW
V /DPHQW VXJJHVWV WKHUH DUH PDQ\ H[DPSOHV RI
&KDSWHU,QJUHGLHQWVDQGWKHLU7ZLQ4XDOLWLHV
DQLPDOEHKDYLRUDQGLQWHOOLJHQFHWKDWVXUSDVVZKDWSHRSOHZRXOGVXSSRVH
WREHWKHERXQGDU\RIDQLPDOFRQVFLRXVQHVV/LQGHQFRQWHQGVWKDWLQPDQ\
RI WKHVH GRFXPHQWHG H[DPSOHV D YDULHW\ RI DQLPDO VSHFLHV H[KLELWV
EHKDYLRU WKDW FDQ RQO\ EH DWWULEXWHG WR HPRWLRQ DQG WR D OHYHO RI
FRQVFLRXVQHVV WKDW ZH ZRXOG QRUPDOO\ DVFULEH RQO\ WR RXU RZQ VSHFLHV
:.Q
$QG LQ UHJDUG WR WKH VHFRQG SDUW RI WKH DUJXPHQW WKH SRLQW LV WKDW
DQLPDOV FDQ IHHO SDLQ LQ WKH ZD\ WKDW KXPDQV GR EHFDXVH SDLQ FDQ EH
GHPRQVWUDWHG E\ DYHUVH UHDFWLRQV WR QHJDWLYH VWLPXOL WKDW DUH QRQ
SXUSRVHIXO RU HYHQ PDODGDSWLYH 2QH VXFK UHDFWLRQ LV WUDQVPDUJLQDO
LQKLELWLRQ D SKHQRPHQRQ REVHUYHG LQ KXPDQV DQG VRPH DQLPDOV DNLQ WR
PHQWDOEUHDNGRZQ:.Q$&DUWHU
)RXUWK$UJXPHQW(QYLURQPHQWDO5HDVRQV
7KH IRXUWK DUJXPHQW DJDLQVW HDWLQJ PHDW KDV WR GR ZLWK
HQYLURQPHQWDOUHDVRQV:.Q
)RULQVWDQFHWKHXVHRIODUJHLQGXVWULDOPRQRFXOWXUHWKDWLVFRPPRQ
LQLQGXVWULDOL]HGDJULFXOWXUHW\SLFDOO\IRUIHHGFURSVVXFKDVFRUQDQGVR\
LV PRUHGDPDJLQJWRHFRV\VWHPVWKDQ PRUHVXVWDLQDEOHIDUPLQJSUDFWLFHV
VXFK DV RUJDQLF IDUPLQJ SHUPDFXOWXUH DUDEOH SDVWRUDO DQG UDLQIHG
DJULFXOWXUH2WKHUFRQFHUQVLQFOXGHWKHZDVWLQJRIQDWXUDOUHVRXUFHVVXFK
DVIRRGZDWHUHWF:.Q
7KHUHIRUHDQLPDOVWKDWIHHGRQJUDLQRUUHO\RQJUD]LQJUHTXLUHPRUH
ZDWHUWKDQJUDLQFURSV7KHUHVXOWLVWKDWSURGXFLQJDQLPDOEDVHGIRRGLV
W\SLFDOO\ PXFK OHVV HIILFLHQW WKDQ WKH KDUYHVWLQJ RI JUDLQV YHJHWDEOHV
OHJXPHVVHHGVDQGIUXLWVWKRXJKWKLVPLJKWQRWEHWUXHWRWKHVDPHH[WHQW
IRU DQLPDO KXVEDQGU\ LQ WKH GHYHORSLQJ ZRUOG ZKHUH IDFWRU\ IDUPLQJ LV
DOPRVW QRQ H[LVWHQW PDNLQJ DQLPDOEDVHG IRRG PXFK PRUH VXVWDLQDEOH
:.Q$.LUE\
)LIWK$UJXPHQW5HOLJLRXV7UDGLWLRQV
$QG WKH ILIWK DUJXPHQW DJDLQVW HDWLQJ PHDW KDV WR GR ZLWK UHOLJLRQ
WUDGLWLRQV:.Q
)RULQVWDQFH+LQGXVDGYRFDWHWKHSUDFWLFHRIDKLVQRQYLROHQFH
DQGUHVSHFWIRUDOOOLIHEHFDXVHGLYLQLW\LVEHOLHYHGWRSHUPHDWHDOOEHLQJV
LQFOXGLQJ SODQWV DQG QRQKXPDQ DQLPDOV,Q DFFRUGDQFH ZLWK DKLV
PDQ\ +LQGXV HPEUDFH YHJHWDULDQLVP WR UHVSHFW KLJKHU IRUPV RI OLIH
(VWLPDWHVRIWKHQXPEHURIODFWRYHJHWDULDQVLQ,QGLDLQFOXGHVDGKHUHQWV
RIDOOUHOLJLRQVYDU\EHWZHHQDQG7KHIRRGKDELWVYDU\ZLWKWKH
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
FRPPXQLW\DQGUHJLRQIRUH[DPSOHVRPHFDVWHVKDYLQJIHZHUYHJHWDULDQV
DQGFRDVWDOSRSXODWLRQVUHO\LQJRQVHDIRRG:.Y$)R[
3UREOHPVZLWKWKH6WXG\RI'LHWDQGWKH(WKLFVRI(DWLQJ0HDW
+RZHYHUIRUWKHFULWLFVWKHVWXG\RIGLHWDQGWKHHWKLFVRIHDWLQJPHDW
KDVVRPHPDMRUSUREOHPV&RQVLGHUIRULOOXVWUDWLRQDIHZH[DPSOHVEHORZ
DVVXPPDUL]HGLQ7DEOH
)LUVWO\RQHPDLQFULWLFLVPRIWKHVWXG\RIGLHWDQGWKHHWKLFVRIHDWLQJ
PHDWLVWKDWWKHUHDVRQLQJDJDLQVWNLOOLQJIRUIRRGLQWKHILUVWDUJXPHQWLV
LQFRQVLVWHQW
)RU LQVWDQFH IRU WKH FULWLFV WK>H@VDPH DUJXPHQW >DJDLQVW NLOOLQJ
IRU IRRG@ LV XVHG E\ RWKHUV WR FRXQWHU WKH WUHDWPHQW RI DQLPDOV DV PRUDO
HTXDOV ZLWK KXPDQV DQG WKH UHDVRQ LV WKDW HTXDOLW\ LQ D PRUDO
FRPPXQLW\ UHTXLUHV WKH FDSDELOLW\ RI DOO SDUWLFLSDQWV WR PDNH PRUDO
GHFLVLRQV$QLPDOVDUHLQFDSDEOHRIPDNLQJHWKLFDOFKRLFHVIRUH[DPSOHD
WLJHU ZRXOG QRW UHIUDLQ IURP HDWLQJ D KXPDQ EHFDXVH LW ZDV ZURQJ LW
ZRXOG GHFLGH ZKHWKHU WR DWWDFN EDVHG RQ ZKDW LW IHOW ZRXOG DOORZ LW WR
VXUYLYH:.Q
6HFRQGO\DQRWKHUPDLQFULWLFLVPRIWKHVWXG\RIGLHWDQGWKHHWKLFVRI
HDWLQJPHDWLVWKDWWKHWUHDWPHQWRIDQLPDOVLQWKHVHFRQGDUJXPHQWLVPRUH
KXPDQHLQGHHG
)RU LQVWDQFH ) - 6RQQ\ )DLVRQ SUHVLGHQW RI &DUUROOV )RRGV
DUJXHGWKDWWKH\>WKHDQLPDOVWREHNLOOHGIRUIRRG@DUHLQVWDWHRIWKHDUW
FRQILQHPHQW IDFLOLWLHV 7KH FRQGLWLRQV WKDW ZH NHHS WKHVH DQLPDOV LQ DUH
PXFKPRUHKXPDQHWKDQZKHQWKH\ZHUHRXWLQWKHILHOG7RGD\WKH\
UHLQ
KRXVLQJWKDWLVHQYLURQPHQWDOO\FRQWUROOHGLQPDQ\UHVSHFWV$QGWKHIHHG
LVULJKWWKHUHIRUWKHPDOOWKHWLPHDQGZDWHUIUHVKZDWHU7KH\
UHORRNHG
DIWHU LQ VRPH RI WKH EHVW FRQGLWLRQV EHFDXVH WKH KHDOWKLHU DQG >PRUH@
FRQWHQW WKDW DQLPDO WKH EHWWHU LW JURZV 6R ZH
UH YHU\ LQWHUHVWHG LQ WKHLU
ZHOOEHLQJXSWRDQH[WHQW:.Q06FXOO\
7KLUGO\VWLOODQRWKHUPDLQFULWLFLVPRIWKHVWXG\RIGLHWDQGWKHHWKLFV
RI HDWLQJ PHDW LV WKDW WKH ILUVW SDUW RI WKH WKLUG DUJXPHQW LV H[DJJHUDWHG
EHFDXVHDQLPDOVGRQRWKDYHWKHFRQVFLRXVQHVVWKDWKXPDQVKDYH
)RU LQVWDQFH 'DQLHO 'HQQHWW DUJXHG WKDW FRQVFLRXVQHVV
UHTXLUHVDFHUWDLQNLQGRILQIRUPDWLRQDORUJDQL]DWLRQWKDWGRHVQRWVHHPWR
EH
KDUGZLUHG
LQ KXPDQV EXW LV LQVWLOOHG E\ KXPDQ FXOWXUH 0RUHRYHU
FRQVFLRXVQHVVLVQRWDEODFNRUZKLWHDOORUQRWKLQJW\SHRISKHQRPHQRQ
DVLVRIWHQDVVXPHG7KHGLIIHUHQFHVEHWZHHQKXPDQVDQGRWKHUVSHFLHVDUH
VR JUHDW WKDW VSHFXODWLRQV DERXW DQLPDO FRQVFLRXVQHVV VHHP XQJURXQGHG
0DQ\DXWKRUVVLPSO\DVVXPHWKDWDQDQLPDOOLNHDEDWKDVDSRLQWRIYLHZ
&KDSWHU,QJUHGLHQWVDQGWKHLU7ZLQ4XDOLWLHV
EXWWKHUHVHHPVWREHOLWWOHLQWHUHVWLQH[SORULQJWKHGHWDLOVLQYROYHG:.
Q
)RXUWKO\ DQ DGGLWLRQDO PDLQ FULWLFLVP RI WKH VWXG\ RI GLHW DQG WKH
HWKLFV RI HDWLQJ PHDW LV WKDW LW LV QRW NQRZQ ZKHUH WKH OLQH RI
FRQVFLRXVQHVV EHWZHHQ KXPDQV DQG DQLPDOV LV WR EH GUDZQ ZKLFK LV
LPSRUWDQWWRDUJXHWRZKDWH[WHQWDQLPDOVIHHOSDLQLQDZD\WKDWKXPDQV
GRDVUHTXLUHGLQWKHVHFRQGSDUWRIWKHWKLUGDUJXPHQW
)RU LQVWDQFH IRU WKH FULWLFV LW LV GHEDWDEOH ZKHUH H[DFWO\ WKLV OLQH
VKRXOG EH GUDZQ DV -XVWLQ /HLEHU LQWHUHVWLQJO\ VKRZHG WKH
FRQIOLFWLQJ YLHZV DPRQJ GLIIHUHQW VFKRODUV RQ WKH VXEMHFW LQ WKLV ZD\
&ODUNH DJUHH LQ GHQ\LQJ FRQVFLRXVQHVV WR VSRQJHV 6LQJHU ORFDWHV WKH
GLVWLQFWLRQ VRPHZKHUH EHWZHHQ WKH VKULPS DQG WKH R\VWHU7KH LQWUHSLG
0LGJOH\ RQ WKH RWKHU KDQG VHHPV ZLOOLQJ WR VSHFXODWH DERXW WKH
VXEMHFWLYH H[SHULHQFH RI WDSHZRUPV1DJHODSSHDUV WR GUDZ WKH OLQH DW
IORXQGHUVDQG ZDVSVWKRXJK PRUHUHFHQWO\ KHVSHDNVRI WKHLQQHUOLIHRI
FRFNURDFKHV:.Q
)LIWKO\DQRWKHUDGGLWLRQDOPDLQFULWLFLVPRIWKHVWXG\RIGLHWDQGWKH
HWKLFV RI HDWLQJ PHDW LV WKDW WKH FDOO IRU VXVWDLQDEOH HQYLURQPHQW LV QRW
LQFRPSDWLEOHZLWKWKHSURGXFWLRQRIDQLPDOEDVHGIRRG
)RU LQVWDQFH IRU WKH FULWLFV D KHDOWK\ VXVWDLQDEOH HQYLURQPHQW LV
QHFHVVDU\IRUKXPDQZHOOEHLQJUDWKHUWKDQIRULWVRZQVDNHVRLWLVVWLOO
SRVVLEOHWRHDWPHDWLQVRIDUDVSURGXFLQJDQLPDOEDVHGIRRGFDQEHPDGH
HIILFLHQWDQGVXVWDLQDEOH
6L[WKO\VWLOODQRWKHUDGGLWLRQDOPDLQFULWLFLVPRIWKHVWXG\RIGLHWDQG
WKHHWKLFVRIHDWLQJPHDWLVWKDWGLIIHUHQWUHOLJLRXVWUDGLWLRQVKDYHGLIIHUHQW
RIWHQFRQIOLFWLQJFXVWRPVLQUHJDUGWRHDWLQJPHDW
)RU LQVWDQFH XQOLNH +LQGXLVP ZKLFK DGYRFDWHV YHJHWDULDQLVPWKH
HDWLQJRIPHDWZLWKLQ-HZLVKUHOLJLRXVWUDGLWLRQVDUHFRQWUROOHGE\WKHVHW
RI-HZLVKGLHWDU\ODZV.DVKUXWZKLFKDOORZVPHDWWKDWPD\EHFRQVXPHG
DFFRUGLQJWRKDODNKD-HZLVKODZDQGWHUPHGNRVKHUDQGPHDWWKDWLVQRW
LQ DFFRUGDQFH ZLWK -HZLVK ODZ DQG FDOOHG WUHLI %XW IXUWKHU ZLWKLQ WKH
-XGHR&KULVWLDQWUDGLWLRQVRI&KULVWLDQLW\WKHUHDUHVRPHIROORZHUVZLWKLQ
WKHH[HUFLVHRIWKDWIDLWKKROGWKHHDWLQJRIPHDWDVEHLQJGLYLQHO\RUGDLQHG
ZLWKLQ WKDW IDLWK DQG D QHFHVVDU\ SDUW RI EHLQJ VWURQJ ZLWKLQ WKHLU RZQ
UHOLJLRXVIDLWK:.Q
$QG VHYHQWKO\ RQH ODVW PDLQ FULWLFLVP RI WKH VWXG\ RI GLHW DQG WKH
HWKLFVRIHDWLQJPHDWLVWKDWHDWLQJPHDWLVJHQGHUUHODWLYH
)RU LQVWDQFH D UHFHQW UHVHDUFK LQ WKH 86 VKRZV WKDW PHQ WHQG WR
SUHIHU PHDW ZKHUHDV ZRPHQ WHQG WR SUHIHU YHJJLHV DQG WKH UHVXOWV
GHWDLOHGLQWKH2FWREHULVVXHRIWKH-RXUQDORI&RQVXPHU5HVHDUFK
PD\ H[SODLQ ZK\ PHQ DUH OHVV OLNHO\ WKDQ ZRPHQ WR HDW YHJHWDEOHV DQG
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
LQVWHDGFKRRVHIRRGVWKDWVHHPWRMLYHPRUHZLWKWKHLUPDFKRVHOILPDJH
WKHUHVHDUFKHUVVDLG-%U\QHU
%H\RQGWKH(WKLFVRI(DWLQJ0HDW
7KHVHFULWLFLVPVRIWKHHWKLFVRIHDWLQJPHDWKRZHYHUVKRXOGQRWEH
PLVXQGHUVWRRGDVDWRWDOUHMHFWLRQRILWVXVHIXOQHVVEXWVHUYHWRVKRZXVWKH
WZR RSSRVLQJ VLGHV RI WKH GHEDWH VXFK WKDW WKH SRVVLELOLW\ RU
LPSRVVLELOLW\DQGGHVLUDELOLW\RUXQGHVLUDELOLW\RILQJUHGLHQWVIURPWKH
SHUVSHFWLYHRIFXOWXUHZLWKLQJUHGLHQWVGLHWDQGWKHHWKLFVRIHDWLQJPHDW
DV D FDVH VWXG\ KHUH DUH QRW WR WKH H[WHQW WKDW WKH UHVSHFWLYH GHIHQGHUV
ZRXOGOLNHXVWREHOLHYH
0RUHRYHU WKH DQDO\VLV RI LQJUHGLHQWV GLHW DQG WKH HWKLFV RI HDWLQJ
PHDW VKRZV XV WKH LPSRUWDQW DVSHFWV RI WKH RQWRORJLFDO SULQFLSOHV LQ
H[LVWHQWLDO GLDOHFWLFV DQG JRRG H[DPSOHV LQFOXGH WKH IRUPDOQHVV
LQIRUPDOQHVV SULQFLSOH WKH DEVROXWHQHVVUHODWLYHQHVV SULQFLSOH WKH
SDUWLDOLW\WRWDOLW\ SULQFLSOH WKH SUHGLFWDELOLW\XQSUHGLFWDELOLW\ SULQFLSOH
WKH H[SOLFDELOLW\LQH[SOLFDELOLW\ SULQFLSOH WKH ILFWLRQUHDOLW\ SULQFLSOH WKH
ILQLWHQHVVWUDQVILQLWHQHVV SULQFLSOH WKH SUHFLVHQHVVYDJXHQHVV SULQFLSOH
WKH VLPSOHQHVVFRPSOLFDWHGQHVV SULQFLSOH WKH RSHQQHVVKLGGHQQHVV
SULQFLSOH WKH GHQVHQHVVHPSWLQHVV SULQFLSOH WKH FKDQJHFRQVWDQF\
SULQFLSOHWKHRUGHUFKDRVSULQFLSOHWKHVORZQHVVTXLFNQHVVSULQFLSOHWKH
H[SDQVLRQFRQWUDFWLRQ SULQFLSOH WKH WKHRU\SUD[LV SULQFLSOH WKH
FRQYHQWLRQQRYHOW\ SULQFLSOH WKH HYROXWLRQWUDQVIRUPDWLRQ SULQFLSOH WKH
V\PPHWU\DV\PPHWU\ SULQFLSOH WKH VRIWQHVVKDUGQHVV SULQFLSOH WKH
VHULRXVQHVVSOD\IXOQHVV SULQFLSOH WKH DFWLYHQHVVLQDFWLYHVV SULQFLSOH WKH
VHOIQHVVRWKHUQHVV SULQFLSOH WKH UHJUHVVLRQSURJUHVVLRQ SULQFLSOH WKH
VDPHGLIIHUHQFH SULQFLSOH WKH VWDELOLW\UHDFWLRQ SULQFLSOH DQG WKH
IXQFWLRQDOLW\QRQIXQFWLRQDOLW\SULQFLSOH
)RU LQVWDQFH LQ UHODWLRQ WR WKH IRUPDOQHVVLQIRUPDOQHVV SULQFLSOH LI
WKHUH LV IRUPDOQHVV HJ WKH IRUPDO ORJLFDO UHTXLUHPHQW RI FRQVLVWHQF\
VRXQGQHVVDQGFRPSOHWHQHVVLQDV\VWHPRILGHDVDVLQWKHVWXG\RIGLHW
DQGWKHHWKLFVRIHDWLQJPHDWWKHUHLVLQIRUPDOQHVVHJWKHQRQIRUPDO
H[LVWHQFHRILQFRQVLVWHQF\XQVRXQGQHVVDQGLQFRPSOHWHQHVVLQWKHVWXG\
RIGLHWDQGWKHHWKLFVRIHDWLQJ PHDWDVVKRZQLQWKHFULWLFLVPVWKDWWKH
UHDVRQLQJDJDLQVWNLOOLQJIRUIRRGLQWKHILUVWDUJXPHQWLVLQFRQVLVWHQWWKDW
WKHWUHDWPHQWRIDQLPDOVLQWKHVHFRQGDUJXPHQWLVPRUHKXPDQHLQGHHG
WKDW DQLPDOV GR QRW KDYH WKH FRQVFLRXVQHVV WKDW KXPDQV KDYH WKDW
GLIIHUHQW UHOLJLRXV WUDGLWLRQV KDYH FRQIOLFWLQJ FXVWRPV LQ UHJDUG WR HDWLQJ
PHDW WKDW HDWLQJ PHDW LV JHQGHUUHODWLYH HWF $QG WKH UHYHUVH GLUHFWLRQ
DOVRKROGVWUXH
&KDSWHU,QJUHGLHQWVDQGWKHLU7ZLQ4XDOLWLHV
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
WKHDUW FRQILQHPHQW IDFLOLWLHV DQG WKH FRQGLWLRQV WKDW ZH NHHS WKHVH
DQLPDOVLQDUHPXFKPRUHKXPDQHWKDQZKHQWKH\ZHUHRXWLQWKHILHOG
WKHUH LV UHDOLW\ HJ WKH UHDOLVWLF DVSHFW RI WKH FODLP DERXW WKH LQKXPDQH
WUHDWPHQWRIDQLPDOVDV)DUP6DQFWXDU\VKRZHGXVWKDWFRPPRGLI\LQJ
DQGVODXJKWHULQJDQLPDOVLVLQFRPSDWLEOHZLWKWKHGHILQLWLRQRI
KXPDQH
$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH ILQLWHQHVVWUDQVILQLWHQHVV SULQFLSOH LI WKHUH LV
ILQLWHQHVV HJ WKH ILQLWH QXPEHU RI WKH FDWHJRULHV RI PHDW WR EH EDQQHG
XQGHUYHJHWDULDQLVPWKHUHLVWUDQVILQLWHQHVVHJWKHWUDQVILQLWH QXPEHU
RIDOOWKHLQGLYLGXDOSLHFHVRIPHDWLQKLVWRU\WKDWKDYHHYHUH[LVWHG$QG
WKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH SUHFLVHQHVVYDJXHQHVV SULQFLSOH LI WKHUH LV
SUHFLVHQHVV HJ WKH SUHFLVH LGHQWLILFDWLRQ RI DUJXPHQWV DJDLQVW HDWLQJ
PHDW LQ WKH DUWLFOH DIRUHFLWHG WKHUH LV YDJXHQHVV HJ WKH YDJXHQHVV LQ
WKH LGHQWLILFDWLRQ RI WKH DUJXPHQWV DJDLQVW HDWLQJ PHDW LQ WKH DUWLFOH
DIRUHFLWHGVLQFHLWLVQRWFOHDUZK\WKHUHPXVWEHRQO\QRWDQG
VRRQ$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH VLPSOHQHVVFRPSOLFDWHGQHVV SULQFLSOH LI WKHUH LV
VLPSOHQHVVHJWKHUHODWLYHO\VLPSOHDQDO\VLVRIWKHHWKLFVRIHDWLQJPHDW
E\ WKH DGYRFDWHV WKHUH LV FRPSOLFDWHGQHVV HJ WKH UHODWLYHO\ PRUH
FRPSOLFDWHG DQDO\VLV RI WKH HWKLFV RI HDWLQJ PHDW E\ FKDOOHQJLQJ WKH
FODLPV DQG DVVXPSWLRQV DV VKRZQ LQ WKH SUREOHPV SRLQWHG RXW E\ WKH
FULWLFVDVFLWHG$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHRSHQQHVVKLGGHQQHVVSULQFLSOHLIWKHUH LVRSHQQHVV
HJ WKH RSHQ H[SORUDWLRQ RI WKH UHODWLRQVKLS EHWZHHQ QRQYLROHQFH LQ
+LQGXLVPDQGWKHSUHIHUHQFHIRUYHJHWDULDQLVPWKHUHLVKLGGHQQHVVHJ
WKH KLGGHQ ELDV LQ +LQGXLVP LQ UHJDUG WR YHJHWDULDQLVP VLQFH GLIIHUHQW
UHOLJLRXV WUDGLWLRQV KDYH FRQIOLFWLQJ FXVWRPV LQ UHJDUG WR HDWLQJ PHDW
$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHGHQVHQHVVHPSWLQHVVSULQFLSOHLIWKHUHLVGHQVHQHVV
HJ WKH UHODWLYHO\ GHQVHU FRQFHQWUDWLRQ RI WKH DPRXQW RI PHDW WR EH
FRQVXPHGE\PDOHVRQDYHUDJHLQDFFRUGDQFHWRDUHFHQWUHVHDUFKLQWKH
86 WKHUH LV HPSWLQHVV HJ WKH UHODWLYHO\ OHVV GHQVH RU PRUH HPSW\
FRQFHQWUDWLRQ RI WKH DPRXQW RI PHDW WR EH FRQVXPHG E\ IHPDOHV RQ
DYHUDJHLQDFFRUGDQFH WRDUHFHQWUHVHDUFKLQWKH 86 $QGWKHUHYHUVH
GLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHFKDQJHFRQVWDQF\SULQFLSOHLIWKHUHLVFKDQJHHJ
WKHHYHUQHZZD\VWRVWXG\GLHWDQGQXWULWLRQDVVKRZQLQWKHVWXG\RIGLHW
DQG WKH HWKLFV RI HDWLQJ PHDW WKHUH LV FRQVWDQF\ HJ WKH HYHU FRQVWDQW
H[LVWHQFHRIGLIIHUHQWSUREOHPVZLWKWKHHYHUQHZ ZD\VWRVWXG\GLHWDQG
QXWULWLRQDVVKRZQLQWKHSUREOHPVZLWKWKHVWXG\RIGLHWDQGWKHHWKLFVRI
&KDSWHU,QJUHGLHQWVDQGWKHLU7ZLQ4XDOLWLHV
HDWLQJ PHDW SRLQWHG RXW E\ WKH FULWLFV $QG WKH UHYHUVH GLUHFWLRQ DOVR
KROGVWUXH
,QUHODWLRQWRWKHRUGHUFKDRVSULQFLSOHLIWKHUHLVRUGHUHJWKHPRUH
RUOHVVRUGHUO\DSSHDUDQFHRI+LQGXLVPLIORRNHGIURPWKHYDQWDJHSRLQW
RILWVJHQHUDODGYRFDWLRQRIQRQYLROHQFHWRHPEUDFHYHJDWDULDQLVPWKHUH
LVFKDRVHJWKHPRUHRUOHVVFKDRWLFDSSHDUDQFHRI+LQGXLVPLIORRNHG
IURP WKH YDQWDJH SRLQW RI LWV GLYHUVH FRQIOLFWLQJ IRRG KDELWV LQ SUDFWLFH
ZKLFKYDU\JUHDWO\ZLWKWKHFRPPXQLW\DQGUHJLRQDQGDOVRIURPVHFWWR
VHFW$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH VORZQHVVTXLFNQHVV SULQFLSOH LI WKHUH LV VORZQHVV
HJWKHUHODWLYHO\VORZHUVSHHGRIVRPHRQHWRJLYHLQWRWKHLQFOLQDWLRQRI
HDWLQJ PHDW LI RQH GRHV QRW DOORZ DQ\ H[FXVH DQG VWULFWO\ IROORZV
YHJHWDULDQLVP DV DGYRFDWHG E\ )DUP 6DQFWXDU\ WKHUH LV TXLFNQHVV HJ
WKH UHODWLYHO\ TXLFNHU VSHHG RI VRPHRQH WR JLYH LQ WR WKH LQFOLQDWLRQ RI
HDWLQJPHDWLIRQHKDVH[FXVHVWRHQDEOHRQHWRILQGRUPDNHDUHDVRQ
IRUHYHU\WKLQJRQHKDVDPLQGWRGRDVWROGE\%HQMDPLQ)UDQNOLQ>@
ZKHQ KH RQFH FRQIHVVHG WR KDYH YLRODWHG KLV RZQ YHJHWDULDQLVP :.
Q$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHH[SDQVLRQFRQWUDFWLRQSULQFLSOHLIWKHUHLVH[SDQVLRQ
HJWKHUHODWLYHH[SDQVLRQQRZDGD\VRIWKHDQLPDOOLEHUDWLRQPRYHPHQW
WKHUH LV FRQWUDFWLRQ HJ WKH UHODWLYH GHFOLQH QRZDGD\V RI WKH EUXWDO
VODXJKWHULQJ RI DQLPDOV IRU FRQVXPSWLRQ LQ WKH ROGHU GD\V ZLWKRXW DQ\
UHJDUGRIDQLPDOSV\FKRORJ\$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH WKHRU\SUD[LV SULQFLSOH LI WKHUH LV WKHRU\ HJ WKH
WKHRUHWLFDOFRQVWUXFWLRQRIXWLOLWDULDQLVPLQHWKLFVWKHUHLVSUD[LVHJWKH
SUDFWLFDO DSSOLFDWLRQ RI XWLOLWDULDQLVP LQ HWKLFV WR WKH ILHOG RI DQLPDO
WUHDWPHQWDVVKRZQE\WKHXWLOLWDULDQDUJXPHQWSURSRVHGE\3HWHU6LQJHU
IRUDQLPDOOLEHUDWLRQ$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHFRQYHQWLRQQRYHOW\SULQFLSOHLIWKHUHLVFRQYHQWLRQ
HJ WKH FRQYHQWLRQDO ZLVGRP DERXW WKH ERXQGDU\ RI DQLPDO
FRQVFLRXVQHVVWKHUHLVQRYHOW\HJWKHDOWHUQDWLYHQRYHOFKDOOHQJHWRWKH
FRQYHQWLRQDOZLVGRPDERXWWKHERXQGDU\RIDQLPDOFRQVFLRXVQHVVE\WKH
QHZ LGHD RI (XJHQH /LQGHQ ZKR VXJJHVWV WKHUH DUH PDQ\ H[DPSOHV RI
DQLPDOEHKDYLRUDQGLQWHOOLJHQFHWKDWVXUSDVVZKDWSHRSOHZRXOGVXSSRVH
WR EH WKH ERXQGDU\ RI DQLPDO FRQVFLRXVQHVV $QG WKH UHYHUVH GLUHFWLRQ
DOVRKROGVWUXH
,Q UHODWLRQ WR WKH HYROXWLRQWUDQVIRUPDWLRQ SULQFLSOH LI WKHUH LV
HYROXWLRQHJWKHQDWXUDOHYROXWLRQRIKXPDQVWRIROORZDQLPDOLQVWLQFWV
LQWKHVWDWHRIQDWXUHLQDSULPLWLYHZD\WKHUHLVWUDQVIRUPDWLRQHJWKH
WHFKQLFDO WUDQVIRUPDWLRQ RI KXPDQ DELOLW\ WR JR EH\RQG WKH DQLPDO
LQVWLQFWV E\ WKH LQYHQWLRQ RI FXOWXUH LQQRYDWLRQ DQG WKH VXEOLPDWLRQ RI
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
LQVWLQFW LQ RUGHU WR DFW LQ DQ HWKLFDO PDQQHU $QG WKH UHYHUVH GLUHFWLRQ
DOVRKROGVWUXH
,QUHODWLRQWRWKHV\PPHWU\DV\PPHWU\SULQFLSOHLIWKHUHLVV\PPHWU\
HJWKHH[LVWHQFHRIGLIIHUHQWDQLPDOVRQHDUWKWKHUHLVDV\PPHWU\HJ
KXPDQV FDQ PDVVFRQVXPH DQLPDOV LQ D ZD\ WKDW DQLPDOV FDQQRW GR WKH
VDPHWRKXPDQVQRZDGD\V$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHVRIWQHVVKDUGQHVVSULQFLSOHLIWKHUHLVVRIWQHVVHJ
FRZV DQG ODPEV ERWK VHHN DQG HQMR\ SOHDVXUH ZKHQ WKH\ OLH ZLWK WKHLU
KHDGV UDLVHG WR WKH VXQ RQ D SHUIHFW (QJOLVK VXPPHU
V GD\ WKHUH LV
KDUGQHVV HJ WLJHU ZRXOG QRW UHIUDLQ IURP HDWLQJ DQ DQLPDO VLQFH LW
ZRXOG GHFLGH ZKHWKHU WR DWWDFN EDVHG RQ ZKDW LW IHOW ZRXOG DOORZ LW WR
VXUYLYH:.Q$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH VHULRXVQHVVSOD\IXOQHVV SULQFLSOH LI WKHUH LV
VHULRXVQHVV HJ WKH VHULRXV EXVLQHVV RI WKRVH LQ +LQGXLVP WR DGYRFDWH
QRQYLROHQFHIRUYHJHWDULDQLVPWKHUHLVSOD\IXOQHVVHJWKHSOD\IXOSDUW
RI WKRVH LQ +LQGXLVP WR DGYRFDWH QRQYLROHQFH IRU YHJHWDULDQLVP ZKHQ
WKH\ SOD\ DURXQG ZLWK GLIIHUHQW ZD\V WR SUDFWLFH WKH IRRG KDELWV ZKLFK
YDU\ ZLWK WKH FRPPXQLW\ DQG UHJLRQ DQG HYHQ IURP VHFW WR VHFW $QG
WKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHDFWLYHQHVVLQDFWLYHVVSULQFLSOHLIWKHUHLVDFWLYHQHVV
HJ WKH DFWLYHQHVV RI WKRVH ZKR DUH UHDG\ WR NLOO IRU IRRG ZLWKRXW DQ\
HWKLFVRIHDWLQJPHDWWKHUHLVLQDFWLYHQHVVHJWKHUHODWLYHLQDFWLYHQHVV
RIWKRVHZKREHOLHYHLQDVURQJHWKLFVRIHDWLQJPHDWDQGWKHUHIRUHFDQQRW
NLOOIRUIRRG
,QUHODWLRQWRWKHVHOIQHVVRWKHUQHVVSULQFLSOHLIWKHUHLVVHOIQHVVHJ
WKH WHQGHQF\ WR EH PRVWO\ FHQWHUHG RQ RQHV VHOI RU JURXS DV VKRZQ E\
WKRVHZKRDUHZLOOLQJWRNLOODQLPDOVIRUIRRGWKHUHLVRWKHUQHVVHJWKH
WHQGHQF\WREHPRVWO\FHQWHUHGRQRWKHUVDVVKRZQE\WKRVHZKRDGYRFDWH
DQLPDO FRPSDVVLRQ IRU DQLPDO OLEHUDWLRQ $QG WKH UHYHUVH GLUHFWLRQ DOVR
KROGVWUXH
,Q UHODWLRQ WR WKH UHJUHVVLRQSURJUHVVLRQ SULQFLSOH LI WKHUH LV
UHJUHVVLRQ HJ WKH UHJUHVVLRQ PDGH E\ WKH HWKLFV RI HDWLQJ PHDW DV
VKRZQ LQ WKH SUREOHPV SRLQWHG RXW E\ WKH FULWLFV WKHUH LV SURJUHVVLRQ
HJ WKH SURJUHVV PDGH E\ WKH HWKLFV RI HDWLQJ PHDW DV VKRZQ E\ LWV
FRQWULEXWLRQ WR WKH DQLPDO OLEHUDWLRQ PRYHPHQW DIRUHFLWHG $QG WKH
UHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH VDPHGLIIHUHQFH SULQFLSOH LI WKHUH LV VLPLODULW\ LQ
RXWFRPH HJ WKH FRQWULEXWLRQ WR WKH PROGLQJ DQG FRQWURO RI EHOLHIV
YDOXHVDQGEHKDYLRUVUHJDUGOHVVRIZKHWKHUWKLVEHGRQHE\ZD\RINLOOLQJ
IRUIRRGRUE\ZD\RI+LQGXLVPIRUYHJDWDULDQLVPWKHUHLVGLIIHUHQFHLQ
RXWFRPH HJ WKH FRQWULEXWLRQ WR WKH PROGLQJ DQG FRQWURO RI EHOLHIV
&KDSWHU,QJUHGLHQWVDQGWKHLU7ZLQ4XDOLWLHV
YDOXHV DQG EHKDYLRUV E\ ZD\ RI NLOOLQJ IRU IRRG IRU D UHODWLYHO\ PRUH
SUDFWLFDO OLIHZRUOGEXW WKH FRQWULEXWLRQ WR WKH PROGLQJ DQG FRQWURO RI
EHOLHIV YDOXHV DQG EHKDYLRUV E\ ZD\ RI +LQGXLVP IRU YHJDWDULDQLVP
IRUDUHODWLYHO\PRUHVDFUDOOLIHZRUOG$QGWKHUHYHUVHGLUHFWLRQDOVRKROGV
WUXH
,QUHODWLRQWRWKHVWDELOLW\UHDFWLRQSULQFLSOHLIWKHUHLVVWDELOLW\HJ
WKH UHODWLYHO\ PRUH VWDEOH FRQGLWLRQ RI NLOOLQJ IRU IRRG LQ WKH ROGHU GD\V
OLNHIRUDJLQJWKHUHLVUHDFWLRQHJWKHNLOOLQJIRUIRRGLQWKHROGHUGD\V
WKHQOHGWRIXUWKHUFKDQJHVODWHURQZKHQQRZDGD\VWKHDQLPDOOLEHUDWLRQ
PRYHPHQWUDLVHVWKHGHEDWHFRQFHUQLQJ WKHEDQRINLOOLQJIRUIRRG$QG
WKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
$QGLQUHODWLRQWRWKHIXQFWLRQDOLW\QRQIXQFWLRQDOLW\SULQFLSOHLIWKHUH
LVIXQFWLRQDOLW\HJWKHSUHVHQFHRIDFWLRQIRUZKLFKVRPHWKLQJLVILWWHG
DVVKRZQLQWKHROGIDVKLRQHGSUDFWLFHRINLOOLQJDQLPDOVLQWKHROGHUGD\V
LQVRIDUDVLW VHUYHGWKH QHHG RIIRRGHYHQ ZKHQWKHDQLPDOVH[SHULHQFHG
XQGXH
H[FLWHPHQWDQGGLVFRPIRUW
WKHUHLVQRQIXQFWLRQDOLW\HJWKH
UHODWLYHODFNRIDFWLRQIRUZKLFKVRPHWKLQJLVILWWHGDVVKRZQLQWKHEDQRI
NLOOLQJ IRU IRRG QRZDGD\V LQ WKH 86 LI WKH DQLPDOV DUH WR VXIIHU IURP
XQGXH
H[FLWHPHQW DQG GLVFRPIRUW
VR WKH ROGIDVKLRQHG SUDFWLFH RI
NLOOLQJ IRU IRRG DW DQ\ FRVW LV QR ORQJHU IXQFWLRQDO LQ RXU WLPH ZKLFK
UHTXLUHV D QHZ HWKLFDO VWDQGDUG IRU DQLPDO ULJKWV :. F $QG WKH
UHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QJUHGLHQWV&DOLIRUQLD&XLVLQHDQGWKH&XOLQDU\5HYROXWLRQ
$QRWKHU ZD\ WR HYDOXDWH WKH SRVVLELOLW\ RU LPSRVVLELOLW\ DQG
GHVLUDELOLW\ RU XQGHVLUDELOLW\ RI LQJUHGLHQWV IURP WKH SHUVSHFWLYH RI
FXOWXUH FRQFHUQV LQJUHGLHQWV &DOLIRUQLD FXLVLQH DQG WKH &XOLQDU\
5HYROXWLRQ
7KHWHUP&XOLQDU\5HYROXWLRQUHIHUVWRDPRYHPHQWGXULQJWKHODWH
V DQG V JURZLQJ RXW RI WKH )UHH 6SHHFK 0RYHPHQW ZKHQ
VRFLRSROLWLFDO LVVXHV EHJDQ WR SURIRXQGO\ DIIHFW WKH ZD\ $PHULFDQV HDW
HVSHFLDOO\LQUHJDUGWR&DOLIRUQLDFXLVLQH:.Z
$QG&DOLIRUQLDFXLVLQHLVDVW\OHRIFXLVLQH PDUNHGE\DQLQWHUHVW
LQIXVLRQFXLVLQHLQWHJUDWLQJGLVSDUDWHFRRNLQJVW\OHVDQGLQJUHGLHQWVDQG
LQ WKH XVH RI IUHVKO\ SUHSDUHG ORFDO LQJUHGLHQWV 7KH IRRG LV W\SLFDOO\
SUHSDUHGZLWKVWURQJDWWHQWLRQWRSUHVHQWDWLRQ7KHWHUP&DOLIRUQLDFXLVLQH
DURVHDVDUHVXOWRIFXOLQDU\PRYHPHQWVLQWKHODVWGHFDGHVDQGVKRXOGQRW
EH FRQIXVHG ZLWK WKH WUDGLWLRQDO IRRGV RI &DOLIRUQLD :. [ %
6KHDUHU
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7KLV &XOLQDU\ 5HYROXWLRQ FDQ EH DQDO\]HG LQ WHUPV RI LWV YLVLRQV
HVWDEOLVKPHQWVDQGULYDOULHVDVVKRZQEHORZ
,WV9LVLRQV
7KHILUVWDVSHFWRIWKH&XOLQDU\5HYROXWLRQKDVWRGRZLWKLWVYLVLRQV
)RUVRPHSHRSOHWKH&XOLQDU\5HYROXWLRQLVRIWHQFUHGLWHGWR$OLFH
:DWHUV WKH RZQHU RI &KH] 3DQLVVH UHVWDXUDQW LQ %HUNHOH\ &DOLIRUQLD
ZLWKWKHPDQWUDRIXVLQJIUHVKORFDODQGVHDVRQDOLQJUHGLHQWVDW:DWHUV
V
&KH] 3DQLVVH DV ZHOO DV RWKHU VLPLODU
1HZ $PHULFDQ FXLVLQH
UHVWDXUDQWVDQGLWKDVJUHDWO\FKDQJHGIRRGVHUYHGLQUHVWDXUDQWVDQGDW
KRPH WKXV FUHDWLQJ &DOLIRUQLD &XLVLQH DQG D EURDGHU PRYHPHQW LQ WKH
FXLVLQHRIWKH8QLWHG6WDWHV:.Z
7KHVWRU\KDVLWWKDW:DWHUVGHYHORSHGDQHZYLHZRIWKHLPSRUWDQFH
RIIRRGGXULQJKHUILUVWWULSWR)UDQFHLQ6KHEHJDQWRVHHWKDWVRPH
RIKHUSHHUVGHSULYHGWKHPVHOYHVRIJRRGIRRGDQGWKHUHDVRQLVWKDWIRU
:DWHUVLWVQRWHQRXJKWROLEHUDWH\RXUVHOISROLWLFDOO\WROLEHUDWH\RXUVHOI
VH[XDOO\\RXKDYHWROLEHUDWHDOOWKHVHQVHVDVVKHEHOLHYHGWKDWHDWLQJ
WRJHWKHUZDVDVRFLDOO\SURJUHVVLYHDFWRQHWKDWZDVXQGHUWKUHDWIURPWKH
ILIWLHV$PHULFDQ79IUR]HQIRRGFXOWXUH:.Z'.DPS
)RULQVWDQFH:DWHUVLQWURGXFHGWR$PHULFDPDQ\IRRGVWKDWWRGD\
PD\ VHHP FRPPRQSODFH VXFK DV VDODGV RI PL[HG JUHHQV DV VKH WKXV
H[SODLQHG :H ZHUH GRLQJ WKRVH YHU\ HDUO\ RQ , WKLQN OHWWXFH ZDV P\
ILUVWSDVVLRQ,ZDVEULQJLQJVHHGVRYHULQWKHHDUO\VHYHQWLHVIURP)UDQFH
DQG SODQWLQJ
HP LQ P\ EDFN \DUG ZDQWLQJ D )UHQFK NLQG RI VDODG ZLWK
IULVq DQG PkFKH ,
P VXUH , KDYH FRQWULEXWHG WR WKH DZIXO GHPLVH RI WKH
FRQFHSWRIPHVFOXQMXVWE\SURPRWLQJLWLQPDQ\PDQ\PDQ\ZD\V$QG
QRZRIFRXUVHRQHRIWKRVHELJFRPSDQLHVKDVJUDEEHGRQWRWKHLGHDDQG
WKH\ FXW XS ELJ OHWWXFHV DQG SXW
HP LQ D EDJ PL[
HP XS DQG FDOO
HP
PHVFOXQ :KR LV LW'ROH SLQHDSSOH RU VRPHERG\" :. Z '
.DPS
,WV(VWDEOLVKPHQWV
7KH VHFRQG DVSHFW RI WKH &XOLQDU\ 5HYROXWLRQ KDV WR GR ZLWK LWV
HVWDEOLVKPHQWV
,Q RWKHU ZRUGV :DWHUV SXW KHU LGHDV LQWR DFWLRQ DQG RSHQHG &KH]
3DQLVVH ZKLFK ZDV HVWDEOLVKHG LQ DQG LV QRZ FRQVLGHUHG WR EH
RQH RI WKH PRVW LQIOXHQWLDO GLQLQJ HVWDEOLVKPHQWV LQ WKH 8QLWHG 6WDWHV
:.Z
,QGHHG&KH]3DQLVVH ZDV WKHSXEOLF YHQXHLQ ZKLFK:DWHUVFRXOG
SXW KHU FXOLQDU\ LGHDOV LQWR SUDFWLFH XVLQJ IUHVK ORFDO DQG VHDVRQDO
&KDSWHU,QJUHGLHQWVDQGWKHLU7ZLQ4XDOLWLHV
&DOLIRUQLD&XLVLQH
+HOHIW&KH]3DQLVVHLQDQGEHJDQDQLPSRUWDQW
FDUHHU RQ KLV RZQ )URP WR KH ZRUNHG DW RWKHU 1RUWKHUQ
&DOLIRUQLD UHVWDXUDQWV OLNH 9HQWDQD LQ %LJ 6XU DQG %DOERD &DIH LQ 6DQ
)UDQFLVFR +H DOVR WDXJKW EULHIO\ DW WKH &DOLIRUQLD &XOLQDU\ $FDGHP\
GXULQJ WKH VFKRRO
V HDUOLHU \HDUV DURXQG 7RZHU RSHQHG KLV RZQ
UHVWDXUDQWWKHZLGHO\DFFODLPHG6WDUVLQ6DQ)UDQFLVFRLWZDVDEXVLQHVV
SDUWQHUVKLSZLWKWKHVDPHLQYHVWRUVLQYROYHGLQDQRWKHUSRSXODUUHVWDXUDQW
FDOOHG
6DQWD )H %DU DQG *ULOO
LQ %HUNHOH\ &DOLIRUQLD 7RZHU NQHZ WKH
FKHI ZKR RSHQHG 6DQWD )H %DU *ULOO DV KH ZDV D IRUPHU FROOHDJXH DW
&KH]3DQLVVH:.Z-&KLOG135
+RZHYHU7RZHU>@KDVFULWLFL]HG:DWHUVIRUWDNLQJPRVWLIQRW
DOOWKHSUDLVHDQGFUHGLWIRUWKHDFFODLPRI&KH]3DQLVVHIXUWKHUPRUHKH
VHHPV WR FULWLFL]H KHU IRU WDNLQJ FUHGLW IRU WKH SULPDU\ OHDGHUVKLS LQ WKH
QHZ
&DOLIRUQLD &XLVLQH
PRYHPHQW DQG WKH $PHULFDQ
&XOLQDU\
5HYROXWLRQ
+H DOVR TXHVWLRQV :DWHUV
UROH DV DQ DFWXDO
FKHI
LQ WKH
NLWFKHQLPSO\LQJWKDWVKHKDVQRWFRRNHGLQ\HDUVWKHQDOVRTXHVWLRQVKHU
UROH LQ WKH UHVWDXUDQW DOWRJHWKHU 7RZHU KDV ZULWWHQ DERXW WKLV LVVXH RI
FRQWHQWLRQLQKLVERRN&DOLIRUQLD'LVK:KDW,VDZDQG&RRNHGDWWKH
$PHULFDQ &XOLQDU\ 5HYROXWLRQ TXRWLQJ PDQ\ RI KLV SHHUV IURP
&KH]3DQLVVHIRUVXSSRUW0DQ\RIWKHVHSHHUVKDYHVLQFHJRQHRQWRRWKHU
YHQWXUHV PXFK DV 7RZHU KLPVHOI KDV GRQH 0DQ\ RI WKHP DUH HTXDOO\
SRSXODU DQG SUROLILF LQ WKH RQJRLQJ GHYHORSPHQW RI WKH QHZ
&DOLIRUQLD
&XLVLQH
RU WKH
1HZ $PHULFDQ &ODVVLFV
WR ZKLFK 7RZHU UHIHUV :.
Z
$QG7RZHULVSUDLVHGIRUKLVFRQWULEXWLRQVE\YDULRXVSRSXODUFKHIV
DPRQJ WKHP 6DUD 0RXOWRQ DQG -DFTXHV 3HSLQ IRU LQVWDQFH IRU 3HSLQ
WKHIRRGRI-HUHPLDK7RZHU KDVDOZD\VVDWLVILHG P\EHOO\DQG P\VRXO
+HZDVWKHUHIURPWKHVWDUWDQGLVPRUHTXDOLILHGWKDQDQ\RQHHOVHWRWHOO
WKH VWRU\ RI WKH $PHULFDQ IRRG UHYROXWLRQ RI WKH ODVW WKLUW\ \HDUVDQG
IRU0RXOWRQ&DOLIRUQLD'LVKGHOLYHUVRQWKHGRXEOHPHDQLQJLPSOLFLWLQ
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
&KDSWHU,QJUHGLHQWVDQGWKHLU7ZLQ4XDOLWLHV
&XOLQDU\5HYROXWLRQ
WKHUHLVUHODWLYHQHVVHJZKDWLVULJKWIRU:DWHUV
DERXW KHU SULPDU\ OHDGHUVKLS LQ WKH QHZ
&DOLIRUQLD &XLVLQH
PRYHPHQW
DQGWKH$PHULFDQ
&XOLQDU\5HYROXWLRQ
LVQRWQHFHVVDULO\VRIRU7RZHU
ZKRKDVFULWLFL]HG:DWHUVIRUWDNLQJPRVWLIQRWDOOWKHSUDLVHDQGFUHGLW
IRU WKH DFFODLP RI &KH] 3DQLVVH DQG IRU WDNLQJ FUHGLW IRU WKH SULPDU\
OHDGHUVKLS LQ WKH QHZ
&DOLIRUQLD &XLVLQH
PRYHPHQW DQG WKH $PHULFDQ
&XOLQDU\5HYROXWLRQ
$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHSDUWLDOLW\WRWDOLW\SULQFLSOHLIWKHUHLVSDUWLDOLW\HJ
WKHSDUWLDOYLHZRI:DWHUVDERXWWKH&XOLQDU\5HYROXWLRQWKHUHLVWRWDOLW\
HJ WKH PRUH KROLVWLF YLHZ RI WKH &XOLQDU\ 5HYROXWLRQ VXFK WKDW WKH
ZKROHLVQRWWKHVXPRILWVSDUWVWKDWLVLWFDQQRWEHUHGXFHGWRWKHVXPRI
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
RSSRVLQJ YLHZV RI :DWHUV 7RZHUV DQG RWKHUV VLQFH WKHUH ZLOO HPHUJH
QHZ YLHZV LQ WKH IXWXUH QRW \HW NQRZQ WRGD\ MXVW DV WKHUH DUH DOUHDG\
GLIIHUHQWFULWLFLVPVE\IRRGFULWLFVDERXWGLIIHUHQWILJXUHVLQWKHFXOLQDU\
UHYROXWLRQDQGLWVDIWHUPDWK$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH SUHGLFWDELOLW\XQSUHGLFWDELOLW\ SULQFLSOH LI WKHUH LV
SUHGLFWDELOLW\ HJ WKH SUHGLFWDEOH WHQGHQF\ RI WKRVH LQ WKH $PHULFDQ
&XOLQDU\ 5HYROXWLRQ WR DGYRFDWH IXVLRQ FXLVLQH >LQWHJUDWLQJ GLVSDUDWH
FRRNLQJVW\OHVDQGLQJUHGLHQWV@WKHUHLVXQSUHGLFWDELOLW\HJWKHPRUH
GLIILFXOWWDVNWRSUHGLFWH[DFWO\WKHH[WHQWWRZKLFKWKH$PHULFDQ&XOLQDU\
5HYROXWLRQ ZLOO UHPDLQ LQIOXHQWLDO LQ D SDUWLFXODU IXWXUH KLVWRULFDO HUD
VLQFH WKHUH DUH DOUHDG\ DOWHUQDWLYHV LQ WKH V NQRZQ DV WKH 1HZ
$PHULFDQ&XLVLQH$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH H[SOLFDELOLW\LQH[SOLFDELOLW\ SULQFLSOH LI WKHUH LV
H[SOLFDELOLW\ HJ WKH H[SODQDWLRQ E\ WKH DGYRFDWHV RI &DOLIRUQLD FXLVLQH
WKDWLWLVGHVLUDEOHRQWKHEDVLVRILQWHJUDWLQJGLVSDUDWHFRRNLQJVW\OHVDQG
LQJUHGLHQWV WKHUH LV LQH[SOLFDELOLW\ HJ WKH ODFN RI VXIILFLHQW
H[SODQDWLRQE\WKHDGYRFDWHVRI&DOLIRUQLDFXLVLQHRIZK\IXVLRQFXLVLQHLV
QHFHVVDULO\GHVLUDEOHVLQFHIRUWKHFULWLFVWKRVHLQRWKHUFXLVLQHVOLNHWKH
&KLQHVH DQG WKH )UHQFK DUH QRW VR HQWKXVLDVWLF DERXW &DOLIRUQLD FXLVLQH
$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH ILFWLRQUHDOLW\ SULQFLSOH LI WKHUH LV ILFWLRQ HJ WKH
ILFWLRQDODVSHFWRIWKHFODLPWKDWWKH&XOLQDU\5HYROXWLRQLVRIWHQFUHGLWHG
WR$OLFH:DWHUVEHFDXVHVXFKFODLPVDUHFRQWHVWHGDQGWKHPRYHPHQW
LVDWWULEXWHGWRFROODERUDWLRQVRIRWKHULQGLYLGXDOVWKHUH LVUHDOLW\HJ
WKH UHDOLVWLF DVSHFW RI WKH FODLP WKDW WKH &XOLQDU\ 5HYROXWLRQ LV RIWHQ
FUHGLWHGWR$OLFH:DWHUVEHFDXVHRIKHUSULPDU\OHDGHUVKLSLQWKHQHZ
&DOLIRUQLD&XLVLQH
PRYHPHQWDQGWKH $PHULFDQ
&XOLQDU\5HYROXWLRQ
$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH ILQLWHQHVVWUDQVILQLWHQHVV SULQFLSOH LI WKHUH LV
ILQLWHQHVV HJ WKH ILQLWH QXPEHU RI WKH FDWHJRULHV RI LQJUHGLHQWVXVHGLQ
&DOLIRUQLD FXLVLQH OLNH IUHVK ORFDO DQG VHDVRQDO LQJUHGLHQWV DW
:DWHUV
V &KH] 3DQLVVH WKHUH LV WUDQVILQLWHQHVV HJ WKH WUDQVILQLWH
QXPEHU RI DOO WKH LQGLYLGXDO SLHFHV RI IUHVK ORFDO DQG VHDVRQDO
LQJUHGLHQWVLQKLVWRU\WKDWKDYHHYHUH[LVWHGDQGRUXVHG$QGWKHUHYHUVH
GLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH SUHFLVHQHVVYDJXHQHVV SULQFLSOH LI WKHUH LV
SUHFLVHQHVV HJ WKH SUHFLVH LGHQWLILFDWLRQ RI PDMRU OHDGHUV LQ WKH
&XOLQDU\5HYROXWLRQLQWKHDUWLFOHDIRUHFLWHGWKDWLV:DWHUVDQG7RZHUV
WKHUH LV YDJXHQHVV HJ WKH YDJXHQHVV LQ WKH LGHQWLILFDWLRQ RI PDMRU
OHDGHUVLQWKH&XOLQDU\5HYROXWLRQLQWKHDUWLFOHDIRUHFLWHGVLQFHLWLVQRW
&KDSWHU,QJUHGLHQWVDQGWKHLU7ZLQ4XDOLWLHV
FOHDU ZK\ WKHUH PXVW EH RQO\ QRW DQG VR RQ $QG WKH UHYHUVH
GLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH VLPSOHQHVVFRPSOLFDWHGQHVV SULQFLSOH LI WKHUH LV
VLPSOHQHVVHJWKHUHODWLYHO\VLPSOHDQDO\VLVRI&DOLIRUQLDFXLVLQHE\WKH
DGYRFDWHVWKHUHLVFRPSOLFDWHGQHVVHJWKHUHODWLYHO\PRUHFRPSOLFDWHG
DQDO\VLVRI&DOLIRUQLDFXLVLQHE\FKDOOHQJLQJWKHFODLPVDQGDVVXPSWLRQV
DV VKRZQ LQ WKH SUREOHPV SRLQWHG RXW E\ WKH FULWLFV DV FLWHG $QG WKH
UHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHRSHQQHVVKLGGHQQHVVSULQFLSOHLIWKHUHLVRSHQQHVV
HJ WKH RSHQ H[SORUDWLRQ RI WKH SULPDU\ UROH RI :DWHUV LQ WKH &XOLQDU\
5HYROXWLRQ WKHUH LV KLGGHQQHVVHJWKH KLGGHQELDVLQWKHFODLP DERXW
WKHSULPDU\UROHRI:DWHUVLQWKH&XOLQDU\5HYRXWLRQVLQFHWKHFULWLFVOLNH
7RZHUFULWLFL]HG:DWHUVIRUWDNLQJ PRVWLIQRWDOOWKHSUDLVHDQGFUHGLW
IRU WKH DFFODLP RI &KH] 3DQLVVH DQG IRU WDNLQJ FUHGLW IRU WKH SULPDU\
OHDGHUVKLS LQ WKH QHZ
&DOLIRUQLD &XLVLQH
PRYHPHQW DQG WKH $PHULFDQ
&XOLQDU\5HYROXWLRQ
$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHGHQVHQHVVHPSWLQHVVSULQFLSOHLIWKHUHLVGHQVHQHVV
HJWKHUHODWLYHO\GHQVHUFRQFHQWUDWLRQRIWKHXVHRIIUHVKLQJUHGLHQWV
DW :DWHUV
V &KH] 3DQLVVH WKHUH LV HPSWLQHVV HJ WKH UHODWLYHO\ OHVV
GHQVHRUPRUHHPSW\FRQFHQWUDWLRQRIWKHXVHRIIUHVKLQJUHGLHQWVLQ
IUR]HQ IDVWIRRG FXLVLQH EHIRUH WKH &XOLQDU\ 5HYROXWLRQ LQ &DOLIRUQLD
$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHFKDQJHFRQVWDQF\SULQFLSOHLIWKHUHLVFKDQJHHJ
WKH HYHU QHZ ZD\V WR XQGHUVWDQG IRRG FRQVXPSWLRQ DV VKRZQ LQ WKH
&XOLQDU\ 5HYROXWLRQ IRU &DOLIRUQLD FXLVLQH WKHUH LV FRQVWDQF\ HJ WKH
HYHU FRQVWDQW H[LVWHQFH RI GLIIHUHQW SUREOHPV LQ WKH HYHU QHZ ZD\V WR
XQGHUVWDQGIRRGFRQVXPSWLRQDVVKRZQLQWKHSUREOHPVZLWKWKH&XOLQDU\
5HYROXWLRQ IRU &DOLIRUQLD FXLVLQH SRLQWHG RXW E\ WKH FULWLFV $QG WKH
UHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHRUGHUFKDRVSULQFLSOHLIWKHUHLVRUGHUHJWKHPRUH
RU OHVV RUGHUO\ DSSHDUDQFH RI WKH ROGHU IDVWIRRG FXLVLQH SULRU WR WKH
RFFXUUHQFHRIWKH &XOLQDU\ 5HYROXWLRQEHFDXVHRILWVUHOLDQFHRQ IUR]HQ
IDVW IRRG WKHUH LV FKDRV HJ WKH PRUH RU OHVV FKDRWLF DSSHDUDQFH RI
&DOLIRUQLDFXLVLQHEHFDXVHRILWVUHOLDQFHRQGLVSDUDWHFRRNLQJVW\OHVDQG
LQJUHGLHQWV IURP PXOWLSOH HYHQ FRQIOLFWLQJ VRXUFHV $QG WKH UHYHUVH
GLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH VORZQHVVTXLFNQHVV SULQFLSOH LI WKHUH LV VORZQHVV
HJ WKH UHODWLYHO\ VORZHU VSHHG RI IRRG WR EH SURFHVVHG LQ &DOLIRUQLD
FXLVLQHEHFDXVHRILWVUHOLDQFHRQIUHVKLQJUHGLHQWVWKHUHLVTXLFNQHVV
HJWKHUHODWLYHO\TXLFNHUVSHHGRIIRRGWREHSURFHVVHGLQIUR]HQIDVW
IRRG FXLVLQH EHFDXVH RI LWV UHOLDQFH RQ IUR]HQ IDVWIRRG LQJUHGLHQWV
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
ZKLFKDUHDOUHDG\SUHKHDWHGDQGSUHFRRNHGVRWKH\DUHUHDG\WREHXVHG
TXLFNO\DWDQ\WLPH$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHH[SDQVLRQFRQWUDFWLRQSULQFLSOHLIWKHUHLVH[SDQVLRQ
HJWKHUHODWLYHH[SDQVLRQRI&DOLIRUQLDFXLVLQHLQWKH86LQWKHV
DQG V WKHUH LV FRQWUDFWLRQ HJ WKH UHODWLYH GHFOLQH RI IUR]HQ IDVW
IRRG FXLVLQH DIWHU WKH &XOLQDU\ 5HYROXWLRQ DQG ODWHU WKH 1HZ $PHULFDQ
&XLVLQH$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH WKHRU\SUD[LV SULQFLSOH LI WKHUH LV WKHRU\ HJ WKH
WKHRUHWLFDOFRQVWUXFWLRQRI IUHHVSHHFKLQSROLWLFDOSKLORVRSK\WKHUHLV
SUD[LV HJ WKH SUDFWLFDO DSSOLFDWLRQ RI IUHH VSHHFK LQ SROLWLFDO
SKLORVRSK\ WR WKH ILHOG RI FXOLQDU\ DUW DV VKRZQ LQ WKH &XOLQDU\
5HYROXWLRQ ZKLFK JUHZ RXW RI WKH )UHH 6SHHFK 0RYHPHQW ZKHQ
VRFLRSROLWLFDOLVVXHVEHJDQWRSURIRXQGO\DIIHFWWKHZD\$PHULFDQVHDW
$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHFRQYHQWLRQQRYHOW\SULQFLSOHLIWKHUHLVFRQYHQWLRQ
HJWKHFRQYHQWLRQDOZLVGRPDERXWIUR]HQIDVWIRRGFXLVLQHLQWKH86
SULRU WR WKH &XOLQDU\ 5HYROXWLRQ WKHUH LV QRYHOW\ HJ WKH DOWHUQDWLYH
QRYHO FKDOOHQJH WR WKH FRQYHQWLRQDO ZLVGRP DERXW IUR]HQ IDVWIRRG
FXLVLQH LQ WKH 86 E\ WKH QHZ LGHD RI WKH &XOLQDU\ 5HYROXWLRQ ZKLFK
HPSKDVL]HV RQ IUHVK ORFDO DQG VHDVRQDO LQJUHGLHQWV $QG WKH
UHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH HYROXWLRQWUDQVIRUPDWLRQ SULQFLSOH LI WKHUH LV
HYROXWLRQ HJ WKH QDWXUDO HYROXWLRQ RI KXPDQV WR HQJDJH LQ IRUDJLQJ LQ
WKH VWDWH RI QDWXUH LQ D SULPLWLYH ZD\ WKHUH LV WUDQVIRUPDWLRQ HJ WKH
WHFKQLFDOWUDQVIRUPDWLRQRIKXPDQDELOLW\WRVHOHFWLQJUHGLHQWVIRUIRRGE\
WKH LQYHQWLRQ RI FXLVLQH OLNH &DOLIRUQLD FXLVLQH LQ WKH V DQG V
$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHV\PPHWU\DV\PPHWU\SULQFLSOHLIWKHUHLVV\PPHWU\
HJ WKH H[LVWHQFH RI GLIIHUHQW FXLVLQHV WKHUH LV DV\PPHWU\ HJ
&DOLIRUQLDFXLVLQHLVPRUHLQIOXHQWLDOLQFRQWHPSRUDU\$PHULFDWKDQVD\
0LGGOH(DVWHUQFXLVLQH$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHVRIWQHVVKDUGQHVVSULQFLSOHLIWKHUHLVVRIWQHVVHJ
WKH SUDLVH RI :DWHUV E\ 7RZHUV WKHUH LV KDUGQHVV HJ WKH FULWLTXH RI
:DWHUVE\7RZHUV$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH VHULRXVQHVVSOD\IXOQHVV SULQFLSOH LI WKHUH LV
VHULRXVQHVVHJWKHVHULRXVEXVLQHVVRIWKRVHLQ&DOLIRUQLDFXLVLQHWRILQG
RXWZKDWJRRGIRRGLVWKHUHLVSOD\IXOQHVVHJWKHSOD\IXOSDUWRIWKRVH
LQ&DOLIRUQLDFXLVLQHZKHQWKH\SOD\DURXQGZLWKGLIIHUHQWLQJUHGLHQWVDQG
GLIIHUHQW GLVSDUDWH FRRNLQJ VW\OHV IURP PXOWLSOH HYHQ FRQIOLFWLQJ
VRXUFHV$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
&KDSWHU,QJUHGLHQWVDQGWKHLU7ZLQ4XDOLWLHV
,QUHODWLRQWRWKHDFWLYHQHVVLQDFWLYHVVSULQFLSOHLIWKHUHLVDFWLYHQHVV
HJWKHDFWLYHQHVVRIWKRVHFKHIVDW&KH]3DQLVVHZKRZRUNHGWKHUHIRU
&DOLIRUQLD FXLVLQH RYHU WKH \HDUV WKHUH LV LQDFWLYHQHVV HJ WKH UHODWLYH
LQDFWLYHQHVV RI WKRVH FKHIV OLNH WKRVH SHHUV RI 7RZHUV IURP &KH]
3DQLVVH ZKR KDG UHWLUHG DQG KDG VLQFH JRQH RQ WR RWKHU YHQWXUHV QRW
UHODWHGWR&DOLIRUQLDFXLVLQH:.Z
,QUHODWLRQWRWKHVHOIQHVVRWKHUQHVVSULQFLSOHLIWKHUHLVVHOIQHVVHJ
WKHWHQGHQF\WREHPRVWO\FHQWHUHGRQRQHVVHOIRUJURXSDVVKRZQLQWKH
ULYDOULHV DPRQJ GLIIHUHQW OHDGHUV OLNH :DWHUV DQG 7RZHU LQ WKH &XOLQDU\
5HYROXWLRQWKHUHLVRWKHUQHVVHJWKHWHQGHQF\WREHPRVWO\FHQWHUHGRQ
RWKHUVDVVKRZQLQWKHJHQHURVLW\RI7RZHUZKRKDVRIWHQFUHGLWHG$OLFH
:DWHUVZLWKWKHLQYHQWLRQRIWKHWKHQ
QHZ
VW\OHRI
&DOLIRUQLD&XLVLQH
$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH UHJUHVVLRQSURJUHVVLRQ SULQFLSOH LI WKHUH LV
UHJUHVVLRQHJWKHUHJUHVVLRQPDGHE\WKH&XOLQDU\5HYROXWLRQDVVKRZQ
LQWKHSUREOHPVSRLQWHGRXWE\WKHFULWLFVWKHUH LVSURJUHVVLRQHJ WKH
SURJUHVVPDGHE\WKH&XOLQDU\5HYROXWLRQDVVKRZQLQLWVFRQWULEXWLRQWR
DQDOWHUQDWLYHFXLVLQHWRUHSODFHIUR]HQIDVWIRRGFXLVLQHDIRUHFLWHG$QG
WKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH VDPHGLIIHUHQFH SULQFLSOH LI WKHUH LV VLPLODULW\ LQ
RXWFRPH HJ WKH FRQWULEXWLRQ WR WKH PROGLQJ DQG FRQWURO RI EHOLHIV
YDOXHV DQG EHKDYLRUV UHJDUGOHVV RI ZKHWKHU WKLV EH GRQH E\ ZD\ RI WKH
1HZ$PHULFDQ&XLVLQHRUE\ZD\RI&KLQHVHFXLVLQHWKHUHLVGLIIHUHQFH
LQ RXWFRPH HJ WKH FRQWULEXWLRQ WR WKH PROGLQJ DQG FRQWURO RI EHOLHIV
YDOXHV DQG EHKDYLRUV E\ ZD\ RI WKH 1HZ $PHULFDQ &XLVLQH IRU D
UHODWLYHO\ PRUH K\EULG ZRUOGYLHZ PRVWO\ IURP /DWLQ $PHULFD WKH
0HGLWHUUDQHDQUHJLRQDQG$VLDEXWWKHFRQWULEXWLRQWRWKHPROGLQJDQG
FRQWURORIEHOLHIV YDOXHVDQGEHKDYLRUVE\ ZD\RI &KLQHVHFXLVLQH IRUD
UHODWLYHO\ PRUH WUDGLWLRQDO ZRUOGYLHZ PRVWO\ IURP (DVW $VLD $QG WKH
UHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHVWDELOLW\UHDFWLRQSULQFLSOHLIWKHUHLVVWDELOLW\HJ
WKH UHODWLYHO\ PRUH VWDEOH FRQGLWLRQ RI IUR]HQ IDVWIRRG FXLVLQH LQ WKH
ROGHUGD\VSULRUWRWKHULVHRIWKH1HZ$PHULFDQ&XLVLQHLQVWKHUH
LV UHDFWLRQ HJ WKH IUR]HQ IDVWIRRG FXLVLQH LQ WKH ROGHU GD\V WKHQ OHG
WRIXUWKHUFKDQJHVODWHURQOLNHWKHULVHRIWKH1HZ$PHULFDQ&XLVLQHLQ
V$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
$QGLQUHODWLRQWRWKHIXQFWLRQDOLW\QRQIXQFWLRQDOLW\SULQFLSOHLIWKHUH
LVIXQFWLRQDOLW\HJWKHSUHVHQFHRIDFWLRQIRUZKLFKVRPHWKLQJLVILWWHG
DVVKRZQLQWKHULVHRIWKHIDVWIRRGUHVWDXUDQWWRFRLQFLGHZLWKWKHDGYHQW
RIWKHDXWRPRELOHLQWKH86DIWHU::,WKHUHLVQRQIXQFWLRQDOLW\HJ
WKH UHODWLYH ODFN RI DFWLRQ IRU ZKLFK VRPHWKLQJ LV ILWWHG DV VKRZQ LQ WKH
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
ULVHRI&DOLIRUQLDFXLVLQHLQWKHVDQGVWRUHSODFHZKDW:DWHUV
FDOOHG WKH 79 IUR]HQIRRG FXOWXUH VLQFH WKH IDVWIRRG FXLVLQH LV QR
ORQJHUVXIILFLHQWO\ IXQFWLRQDO LQRXUWLPHLQ ZKLFKDV:DWHUVH[SODLQHG
LWV QRW HQRXJK WR OLEHUDWH \RXUVHOI SROLWLFDOO\ WR OLEHUDWH \RXUVHOI
VH[XDOO\\RX KDYH WR OLEHUDWH DOO WKH VHQVHV :. ] $QG WKH
UHYHUVHGLUHFWLRQDOVRKROGVWUXH
7KH&RQWLQJHQF\RI,QJUHGLHQWV
7KLVFRPSUHKHQVLYHDQDO\VLV RIWKHSRVVLELOLW\RULPSRVVLELOLW\DQG
GHVLUDELOLW\RUXQGHVLUDELOLW\RILQJUHGLHQWVLQWKHFRQWH[WRIFXOLQDU\DUW
IURP WKH SHUVSHFWLYHV RI WKH PLQG QDWXUH VRFLHW\ DQG FXOWXUH LV
LPSRUWDQWLQVKRZLQJXVWKHGLIIHUHQWZD\VLQ ZKLFKLQJUHGLHQWVDUHERWK
SRVVLEOH DQG GHVLUDEOH EXW QRW WR WKH H[WHQW WKDW WKH VSRNHVSHUVRQV IURP
HDFKVLGHZRXOGOLNHXVWREHOLHYH
,QJUHGLHQWV WKXV KDYH WKHLU FRQWLQJHQF\ MXVW DV WKH\ KDYH WKHLU
QHFHVVLW\WRRDVWKHRWKHUSDUWRIWKHVDPHPLUURU
%XWWKLVLVRQO\RQHSDUWRIDODUJHUVWRU\VLQFHWKHUHLVWKHRWKHUVLGH
RI WKH VWRU\ ZKLFK FRQFHUQV WHFKQLTXHV WKH RWKHU VLGH RI FXOLQDU\ DUW
6LQFHWKLVFKDSWHUDOUHDG\GHDOVZLWKLQLQJUHGLHQWVWKHQH[WFKDSWHUZLOO
WKHUHIRUHDGGUHVVWKHLVVXHRIWHFKQLTXHV
7KHVH GXDO DQDO\VHV VKRXOG QRW EH XQGHUHVWLPDWHG EHFDXVH WKRVH RQ
WKHVLGHRIWHFKQLTXHVRIWHQGLVPLVVLQJUHGLHQWVPHUHO\DVWKHRWKHUVLGHRI
FXOLQDU\ DUW ZLWKRXW UHDOO\ DSSUHFLDWLQJ WKHP IURP WKH YDQWDJH SRLQW RI
LQJUHGLHQWVWRRDQGYLFHYHUVD
:LWK WKLV FDXWLRQ LQ PLQG OHWV QRZ WXUQ WR &KDSWHU 7KUHH IRU WKH
VWXG\ RI WHFKQLTXHV DQG WKHLU GXDO VLGHVIRU ZKLFK ZH QRZ WXUQ WR
FKDSWHUWKUHH
&KDSWHU,QJUHGLHQWVDQGWKHLU7ZLQ4XDOLWLHV
7DEOH,QJUHGLHQWVDQGWKHLU7ZLQ4XDOLWLHV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
,QJUHGLHQWVDQGWKH0LQG
([LQJUHGLHQWVDSKURGLVLDFVDQGVH[XDOLW\
([LQJUHGLHQWVIRRGJXLGHS\UDPLGDQGQXWULWLRQ
,QJUHGLHQWVDQG1DWXUH
([LQJUHGLHQWVIRRGFKDLQVDQGHFRORJLFDOS\UDPLG
([LQJUHGLHQWVQDWXUHDQGUDZIRRG
,QJUHGLHQWVDQG6RFLHW\
([LQJUHGLHQWVIRRGVXSSO\DQG0DOWKXVLDQLVP
([LQJUHGLHQWVIRRGVHFXULW\DQGQXWULWLRQDOHFRQRPLFV
,QJUHGLHQWVDQG&XOWXUH
([LQJUHGLHQWVGLHWDQGWKHHWKLFVRIHDWLQJPHDW
([LQJUHGLHQWV&DOLIRUQLDFXLVLQHDQGWKH&XOLQDU\5HYROXWLRQ
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
1RWHV 7KH H[DPSOHV LQ WKH FDWHJRULHV DUH VROHO\ LOOXVWUDWLYH QRW
H[KDXVWLYH DQG WKH FRPSDULVRQ LV UHODWLYH QRW DEVROXWH QRU DUH WKH\
QHFHVVDULO\ PXWXDOO\ H[FOXVLYH $QG VRPH FDQ EH HDVLO\ UHFODVVLILHG
HOVHZKHUH$VJHQHUDOLWLHVWKH\DOORZH[FHSWLRQV
6RXUFH$VXPPDU\RI&KRI)3+&$
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7DEOH,QJUHGLHQWV$SKURGLVLDFVDQG6H[XDOLW\
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
6\QWKHWLF$SKURGLVLDFV
([$ON\O1LWULWHV
([%UHPHODQRWLGH
([0HODQRWDQ,,
([&URFLQ
([3($
([7HVWRVWHURQH
([<RKLPELQH
1DWXUDO$SKURGLVLDFV
([(SLPHGLXP
([0DFD
3UREOHPVZLWKWKH6WXG\RI$SKURGLVLDFVDQG6H[XDOLW\
)LUVWO\RQHPDLQFULWLFLVPRIWKHVWXG\RIDSKURGLVLDFVDQGVH[XDOLW\
LVWKDWWKHDOOHJHGUHVXOWVDUHTXHVWLRQDEOH
6HFRQGO\ DQRWKHU PDLQ FULWLFLVP RI WKH VWXG\ RI DSKURGLVLDFV DQG
VH[XDOLW\ LV WKDW LW LV PRUH SV\FKRORJLFDO LQ UHODWLRQ WR WKH H[WHUQDO
DSSHDUDQFH RI WKH GUXJV WKDQ HIIHFWLYH LQ UHODWLRQ WR WKH FKHPLFDO
SRWHQF\RIWKHGUXJVWKHPVHOYHV
$QGWKLUGO\VWLOODQRWKHUPDLQFULWLFLVPRIWKHVWXG\RIDSKURGLVLDFV
DQGVH[XDOLW\LVWKDWDSKURGLVLDFVFDQKDYHQHJDWLYHVLGHHIIHFWV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
1RWHV 7KH H[DPSOHV LQ WKH FDWHJRULHV DUH VROHO\ LOOXVWUDWLYH QRW
H[KDXVWLYH DQG WKH FRPSDULVRQ LV UHODWLYH QRW DEVROXWH QRU DUH WKH\
QHFHVVDULO\ PXWXDOO\ H[FOXVLYH $QG VRPH FDQ EH HDVLO\ UHFODVVLILHG
HOVHZKHUH$VJHQHUDOLWLHVWKH\DOORZH[FHSWLRQV
6RXUFH)URP6HFRI)3+&$6HHERRNIRUFLWDWLRQV
&KDSWHU,QJUHGLHQWVDQGWKHLU7ZLQ4XDOLWLHV
7DEOH,QJUHGLHQWV)RRG*XLGH3\UDPLGDQG1XWULWLRQ
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
'LIIHUHQW,QWHUSUHWDWLRQVRI)RRG*XLGH3\UDPLG
([WKH6FDQGLQDYLDQYHUVLRQ
([WKH:+2)$2YHUVLRQ
([WKH$PHULFDQYHUVLRQ
3UREOHPVZLWKWKH6WXG\RI)RRG*XLGH3\UDPLG
)LUVWO\RQHPDLQFULWLFLVPRIWKHVWXG\RIIRRGJXLGHS\UDPLGVLVWKDW
WKHUHFRPPHQGHGIRRGJURXSVDUHQRWQHFHVVDULO\KHDOWK\
6HFRQGO\DQRWKHUPDLQFULWLFLVPRIWKHVWXG\RIIRRGJXLGHS\UDPLGV
LVWKDWWKH\FDQEHXQFOHDU
7KLUGO\ VWLOO DQRWKHU PDLQ FULWLFLVP RI WKH VWXG\ RI IRRG JXLGH
S\UDPLGVLVWKDWWKH\DUHSROLWLFDOO\LQIOXHQFHG
)RXUWKO\ DQ DGGLWLRQDO PDLQ FULWLFLVP RI WKH VWXG\ RI IRRG JXLGH
S\UDPLGVLVWKDWGLIIHUHQWYHUVLRQVGLIIHUIURPHDFKRWKHULQWHUPVRI
UHFRPPHQGDWLRQ
$QG ILIWKO\ DQRWKHU DGGLWLRQDO PDLQ FULWLFLVP RI WKH VWXG\ RI IRRG
JXLGH S\UDPLGV LV WKDW WKH PDLQVWUHDP IRRG JXLGH S\UDPLGV LJQRUH
DOWHUQDWLYHYLHZV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
1RWHV 7KH H[DPSOHV LQ WKH FDWHJRULHV DUH VROHO\ LOOXVWUDWLYH QRW
H[KDXVWLYH DQG WKH FRPSDULVRQ LV UHODWLYH QRW DEVROXWH QRU DUH WKH\
QHFHVVDULO\ PXWXDOO\ H[FOXVLYH $QG VRPH FDQ EH HDVLO\ UHFODVVLILHG
HOVHZKHUH$VJHQHUDOLWLHVWKH\DOORZH[FHSWLRQV
6RXUFH )URP 6HF RI )3+&$ 6HH ERRN IRU PRUH GHWDLOV DQG
FLWDWLRQV
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7DEOH,QJUHGLHQWV1DWXUHDQG5DZ)RRG
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
9DULHWLHVRI5DZ)RRGLVP
([UDZYHJDQLVP
([UDZYHJHWDULDQLVP
([UDZDQLPDOIRRGGLHWV
%HOLHIVLQ5DZ)RRGLVP
([VRPHUDZ IRRGLVWV EHOLHYHWKDWGLJHVWLYHHQ]\PHVLQUDZ IRRGV
VXFKDVDP\ODVHVSURWHDVHVDQGOLSDVHVDLGGLJHVWLRQ
([UDZIRRGVLQFOXGHEDFWHULDDQGRWKHUPLFURRUJDQLVPVWKDWDIIHFW
WKH LPPXQH V\VWHP DQG GLJHVWLRQ E\ SRSXODWLQJ WKH GLJHVWLYH WUDFW
ZLWKEHQHILFLDOJXWIORUD
([PRVWUDZIRRGLVWVEHOLHYHSURFHVVHGIRRGDQGFRQYHQLHQFHIRRG
RIWHQFRQWDLQH[FLWRWR[LQVVXFKDVIODYRUHQKDQFHUVZKLFKFDQFDXVH
H[FLWRWR[LFLW\
([UDZIRRGLVWVEHOLHYHWKDWUDZIRRGVDUHWKHLGHDOIRRGIRUKXPDQ
FRQVXPSWLRQDQGWKHEDVLVRIDUDZIRRGOLIHVW\OH
([ZLOGIRRGVIROORZHGE\RUJDQLFZKROHIRRGVDUHPRUHQXWULWLRXV
WKDQ FRQYHQWLRQDOO\ GRPHVWLFDWHG IRRGV RU LQGXVWULDOO\ SURGXFHG
IRRGV
([UDZIRRGVVXFKDVIUXLWVDQGYHJHWDEOHVDUHKLJKLQDQWLR[LGDQWV
DQGUDZIRRGLVWVEHOLHYHWKH\FDQKHOSWRVWLIOHVLJQVRIDJLQJ
3UREOHPVZLWKWKH6WXG\RI5DZ)RRGLVP
)LUVWO\ RQH PDLQ FULWLFLVP RI WKH VWXG\ RI UDZ IRRGLVP LV WKDW WKH
UHDVRQVIRULWVMXVWLILFDWLRQDUHTXHVWLRQDEOH
6HFRQGO\DQRWKHUPDLQFULWLFLVPRIWKHVWXG\RIUDZIRRGLVPLVWKDW
WKHSUDFWLFHFDQSURGXFHGHWULPHQWDOKHDOWKHIIHFWV
7KLUGO\ VWLOO DQRWKHU PDLQ FULWLFLVP RI WKH VWXG\ RI UDZ IRRGLVP LV
WKDWWKHSUDFWLFHFDQOHDGWRIRRGSRLVRQLQJ
$QG IRXUWKO\ DQ DGGLWLRQDO PDLQ FULWLFLVP RI WKH VWXG\ RI UDZ
IRRGLVPLVWKDWWKHSUDFWLFHFDQOHDGWRQXWULWLRQDOGHILFLHQFLHV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
1RWHV 7KH H[DPSOHV DUH VROHO\ LOOXVWUDWLYH QRW H[KDXVWLYH DQG WKH
FRPSDULVRQ LV UHODWLYH QRW DEVROXWH QRU DUH WKH\ QHFHVVDULO\ PXWXDOO\
H[FOXVLYH$QGVRPHFDQEHHDVLO\UHFODVVLILHGHOVHZKHUH$VJHQHUDOLWLHV
WKH\DOORZH[FHSWLRQV
6RXUFH)URP6HFRI)3+&$6HHERRNIRUFLWDWLRQV
&KDSWHU,QJUHGLHQWVDQGWKHLU7ZLQ4XDOLWLHV
7DEOH,QJUHGLHQWV)RRG6HFXULW\DQG1XWUWLRQDO(FRQRPLFV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
0RGHVRI3URGXFWLRQDQG1XWULWLRQ
([IRUDJLQJ
([VKLIWLQJFXOWLYDWLRQ
([SDVWRUDOLVP
([DJULFXOWXUH
([LQGXVWULDOLVP
*OREDOL]DWLRQDQG1XWULWLRQ
([ODQGH[SURSULDWLRQ
([ODQGGHJUDGDWLRQ
([FDVKFURSSLQJ
([GHORFDOL]DWLRQDQGFRPPRGLWL]DWLRQ
3UREOHPVZLWKWKH6WXG\RI1XWUWLRQDO(FRQRPLFV
)LUVWO\ RQH PDLQ FULWLFLVP RI WKH VWXG\ RI QXWULWLRQDO HFRQRPLFV LV
WKDWLWLVQRWQHFHVVDULO\DFFXUDWH
6HFRQGO\ DQRWKHU PDLQ FULWLFLVP RI WKH VWXG\ RI QXWULWLRQDO
HFRQRPLFV LV WKDW LW GRHV QRW QHFHVVDULO\ PDNH D GLIIHUHQFH WR WKRVH
ZKRVXIIHU
$QG WKLUGO\ VWLOO DQRWKHU PDLQ FULWLFLVP RI WKH VWXG\ RI QXWULWLRQDO
HFRQRPLFVLVWKDWLWVGHILQLWLRQVFDQEHSUREOHPDWLF
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
1RWHV 7KH H[DPSOHV DUH VROHO\ LOOXVWUDWLYH QRW H[KDXVWLYH DQG WKH
FRPSDULVRQ LV UHODWLYH QRW DEVROXWH QRU DUH WKH\ QHFHVVDULO\ PXWXDOO\
H[FOXVLYH$QGVRPHFDQEHHDVLO\UHFODVVLILHGHOVHZKHUH$VJHQHUDOLWLHV
WKH\DOORZH[FHSWLRQV
6RXUFH)URP6HFRI)3+&$6HHERRNIRUFLWDWLRQV
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7DEOH,QJUHGLHQWV'LHWDQGWKH(WKLFVRI(DWLQJ0HDW
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
0DLQ$UJXPHQWV
([HWKLFVRINLOOLQJIRUIRRG
([LQKXPDQHWUHDWPHQWRIDQLPDOV
([DQLPDOFRQVFLRXVQHVV
([HQYLURQPHQWDOFRQFHUQV
([UHOLJLRXVWUDGLWLRQV
3UREOHPVZLWKWKH6WXG\RI'LHWDQGWKH(WKLFVRI(DWLQJ0HDW
)LUVWO\RQHPDLQFULWLFLVPRIWKHVWXG\RIGLHWDQGWKHHWKLFVRIHDWLQJ
PHDWLVWKDWWKHUHDVRQLQJDJDLQVWNLOOLQJIRUIRRGLQWKHILUVWDUJXPHQW
LVLQFRQVLVWHQW
6HFRQGO\DQRWKHUPDLQFULWLFLVPRIWKHVWXG\RIGLHWDQGWKHHWKLFVRI
HDWLQJPHDWLVWKDWWKHWUHDWPHQWRIDQLPDOVLQWKHVHFRQGDUJXPHQWLV
PRUHKXPDQHLQGHHG
7KLUGO\VWLOODQRWKHUPDLQFULWLFLVPRIWKHVWXG\RIGLHWDQGWKHHWKLFV
RI HDWLQJ PHDW LV WKDW WKH ILUVW SDUW RI WKH WKLUG DUJXPHQW LV
H[DJJHUDWHG EHFDXVH DQLPDOV GR QRW KDYH WKH FRQVFLRXVQHVV WKDW
KXPDQVKDYH
)RXUWKO\ DQ DGGLWLRQDO PDLQ FULWLFLVP RI WKH VWXG\ RI GLHW DQG WKH
HWKLFV RI HDWLQJ PHDW LV WKDW LW LV QRW NQRZQ ZKHUH WKH OLQH RI
FRQVFLRXVQHVVEHWZHHQKXPDQVDQGDQLPDOVLVWREHGUDZQZKLFKLV
LPSRUWDQW WR DUJXH WR ZKDW H[WHQW DQLPDOV IHHO SDLQ LQ D ZD\ WKDW
KXPDQVGRDVUHTXLUHGLQWKHVHFRQGSDUWRIWKHWKLUGDUJXPHQW
)LIWKO\DQRWKHUDGGLWLRQDOPDLQFULWLFLVPRIWKHVWXG\RIGLHWDQGWKH
HWKLFVRIHDWLQJPHDWLVWKDWWKHFDOOIRUVXVWDLQDEOHHQYLURQPHQWLVQRW
LQFRPSDWLEOHZLWKWKHSURGXFWLRQRIDQLPDOEDVHGIRRG
6L[WKO\VWLOODQRWKHUDGGLWLRQDOPDLQFULWLFLVPRIWKHVWXG\RIGLHWDQG
WKH HWKLFV RI HDWLQJ PHDW LV WKDW GLIIHUHQW UHOLJLRXV WUDGLWLRQV KDYH
GLIIHUHQWRIWHQFRQIOLFWLQJFXVWRPVLQUHJDUGWRHDWLQJPHDW
$QG VHYHQWKO\ RQH ODVW PDLQ FULWLFLVP RI WKH VWXG\ RI GLHW DQG WKH
HWKLFVRIHDWLQJPHDWLVWKDWHDWLQJPHDWLVJHQGHUUHODWLYH
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
1RWHV 7KH H[DPSOHV DUH VROHO\ LOOXVWUDWLYH QRW H[KDXVWLYH DQG WKH
FRPSDULVRQ LV UHODWLYH QRW DEVROXWH QRU DUH WKH\ QHFHVVDULO\ PXWXDOO\
H[FOXVLYH$QGVRPHFDQEHHDVLO\UHFODVVLILHGHOVHZKHUH$VJHQHUDOLWLHV
WKH\DOORZH[FHSWLRQV
6RXUFH)URP6HFRI)3+&$6HHERRNIRUFLWDWLRQV
3$577+5((
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
7HFKQLTXHV
&+$37(5
7(&+1,48(6$1'7+(,5'8$/6,'(6
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
0HQ GR QRW KDYH WR FRRN WKHLU IRRG
WKH\ GR VR IRU V\PEROLF UHDVRQV WR
VKRZWKH\DUHPHQDQGQRWEHDVWV
(GPXQG/HDFK7(
7KH(IIHFWLYHQHVVRI7HFKQLTXHV
7KHQDWXUHRIFXOLQDU\DUWLQYRYOHVERWKLQJUHGLHQWVDQGWHFKQLTXHV
DVDOUHDG\H[SODLQHGLQ6HF
7KHUHODWLRQVKLSEHWZHHQLQJUHGLHQWVDQGWHFKQLTXHVLVGLDOHFWLFVLQFH
RQHFDQQRWH[LVWZLWKRXWWKHRWKHU
<HWDVFKRODUO\GDQJHUKHUHLVWRUHGXFHWKHDQDO\VLVRIRQHWRWKDWRI
WKH RWKHU FRQVHTXHQWO\ WKLV ERRN LV WR GHYRWH D ZKROH FKDSWHU RQ HDFK
ZLWKWKHXQGHUVWDQGLQJRIFRXUVHWKDWWKHWZRDUHUHODWHG
7KH LVVXHV FRQFHUQLQJ LQJUHGLHQWV LQ WKH VWXG\ RI FXOLQDU\ DUW ZHUH
DOUHDG\ DGGUHVVHG LQ WKH SUHYLRXV FKDSWHU &KDSWHU 7ZR ZKHUHDV WKH
LVVXHV FRQFHUQLQJ WHFKQLTXHV DUH WR EH DQDO\]HG LQ WKLV FKDSWHU &KDSWHU
7KUHH
:LWK WKLV GLDOHFWLF WUHDWPHQW LQ PLQGD JRRG ZD\ WR H[DPLQH WKH
HIIHFWLYHQHVV RI WHFKQLTXHV LQ WKH VWXG\ RI FXOLQDU\ DUW DQG WKHLU
LQHIIHFWLYHQHVVLVE\ZD\RIWKHHYDOXDWLRQRIWKHH[WHQWWRZKLFKWKH\DUH
LQIDFWERWKSRVVLEOHRULPSRVVLEOHDQGGHVLUDEOHRUXQGHVLUDEOH
7KLVFDQEHGRQHE\ZD\RIDFRPSUHKHQVLYHDQDO\VLVRIWHFKQLTXHVLQ
WKH FRQWH[W RI WKH VWXG\ RI FXOLQDU\ DUW IURP WKH IRXU SHUVSHFWLYHV RI WKH
PLQG QDWXUH VRFLHW\ DQG FXOWXUH LQ DFFRUGDQFH WR P\ VRSKLVWLFDWHG
PHWKRGRORJLFDOKROLVPDVH[SODLQHGLQ6HF
,Q RWKHU ZRUGV WKLV FKDSWHU LV RUJDQL]HG LQ IRXU PDLQ VHFWLRQV LQ
UHODWLRQ WR WHFKQLTXHV DQG WKH PLQG WHFKQLTXHV DQG QDWXUH
WHFKQLTXHV DQG VRFLHW\ DQG WHFKQLTXHV DQG FXOWXUHWR EH
DGGUHVVHGKHUHDIWHULQWKDWRUGHUDQGVXPPDUL]HGLQ7DEOH
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7HFKQLTXHVDQGWKH0LQG
7HFKQLTXHV ZKHQ H[DPLQHG IURP WKH SHUVSHFWLYH RI WKH PLQG FDQ
UHYHDO WKHLU SRVVLELOLW\ RU LPSRVVLELOLW\ DQG GHVLUDELOLW\ RU
XQGHVLUDELOLW\DQGWKLVFDQEHVKRZQE\ZD\RIWZRFDVHVWXGLHVQDPHO\
WHFKQLTXHV GLVHDVH DQG IRRG VDIHW\ DQG WHFKQLTXHV
FRRNLQJDQGKHDOWKWREHDGGUHVVHGLQZKDWIROORZVUHVSHFWLYHO\
7HFKQLTXHV'LVHDVHDQG)RRG6DIHW\
$ JRRG ZD\ WR HYDOXDWH WKH SRVVLELOLW\ RU LPSRVVLELOLW\ DQG
GHVLUDELOLW\ RU XQGHVLUDELOLW\ RI WHFKQLTXHV IURP WKH SHUVSHFWLYH RI WKH
PLQGLVWRH[SORUHWHFKQLTXHVGLVHDVHDQGIRRGVDIHW\
7KH WHUP IRRG VDIHW\ UHIHUV WR D VFLHQWLILF GLVFLSOLQH GHVFULELQJ
KDQGOLQJSUHSDUDWLRQDQGVWRUDJHRIIRRGLQZD\VWKDWSUHYHQWIRRGERUQH
LOOQHVV 7KLV LQFOXGHV D QXPEHU RI URXWLQHV WKDW VKRXOG EH IROORZHG WR
DYRLGSRWHQWLDOO\VHYHUHKHDOWKKD]DUGV:.DD
7KHUHDVRQLVWKDWIRRGFDQWUDQVPLWGLVHDVHIURPSHUVRQWRSHUVRQDV
ZHOO DV VHUYH DV D JURZWK PHGLXP IRU EDFWHULD WKDW FDQ FDXVH IRRG
SRLVRQLQJ'HEDWHVRQJHQHWLFIRRGVDIHW\LQFOXGHVXFKLVVXHVDVLPSDFWRI
JHQHWLFDOO\ PRGLILHG IRRG RQ KHDOWK RI IXUWKHU JHQHUDWLRQV DQG JHQHWLF
SROOXWLRQ RI HQYLURQPHQW ZKLFK FDQ GHVWUR\ QDWXUDO ELRORJLFDO GLYHUVLW\
,Q GHYHORSHG FRXQWULHV WKHUH DUH LQWULFDWH VWDQGDUGV IRU IRRG SUHSDUDWLRQ
ZKHUHDV LQ OHVVHU GHYHORSHG FRXQWULHV WKH PDLQ LVVXH LV VLPSO\ WKH
DYDLODELOLW\RIDGHTXDWHVDIHZDWHUZKLFKLVXVXDOO\DFULWLFDOLWHP:.
DD06DWLQ,6KLNORPDQRY
)RRG+\JLHQH
$W OHDVW LQ WKHRU\ IRRG SRLVRQLQJ LV SUHYHQWDEOH WKHUHIRUH
WKHUHKDYHEHHQSULQFLSOHVSURSRVHGRYHUWKHGHFDGHVIRUWKHSUHYHQWLRQRI
IRRGSRLVRQLQJ
)RU H[DPSOH WKHUH DUH WKH ILYH NH\ SULQFLSOHV RI IRRG K\JLHQH
DFFRUGLQJ WR :+2 >@ DV VKRZQ EHORZ DQG VXPPDUL]HG LQ 7DEOH
:.DD
3UHYHQW FRQWDPLQDWLQJ IRRG ZLWK SDWKRJHQV VSUHDGLQJ IURP SHRSOH
SHWVDQGSHVWV
6HSDUDWHUDZDQGFRRNHGIRRGVWRSUHYHQWFRQWDPLQDWLQJWKHFRRNHG
IRRGV
&KDSWHU7HFKQLTXHVDQGWKHLU'XDO6LGHV
&RRNIRRGVIRUWKHDSSURSULDWHOHQJWKRIWLPHDQGDWWKHDSSURSULDWH
WHPSHUDWXUHWRNLOOSDWKRJHQV
6WRUHIRRGDWWKHSURSHUWHPSHUDWXUH
'RXVHVDIHZDWHUDQGFRRNHGPDWHULDOV
6XUHO\WKHUHFDQEHRWKHUVEXWWKHVHDUHWKHILYHSULQFLSOHVDVVXJJHVWHG
E\:+2
&RRNLQJ&RQWURO
%HVLGHV WKH SULQFLSOHV IRU IRRG K\JLHQH DERYH WKHUH DUH DOVR VRPH
JXLGHOQHVIRUFRRNLQJFRQWURO
)RU LQVWDQFH WKH 8. )RRG 6WDQGDUGV $JHQF\ SXEOLVKHV
UHFRPPHQGDWLRQV DV SDUW RI LWV +D]DUG $QDO\VLV DQG &ULWLFDO &RQWURO
3RLQWV+$&&3SURJUDPPH7KHUHOHYDQW JXLGHOLQHV VWDWHWKDW FRRNLQJ
IRRGXQWLOWKH&25(7(03(5$785(LV&RUDERYHZLOOHQVXUHWKDW
KDUPIXOEDFWHULDDUHGHVWUR\HG:.DD
%XW ORZHU FRRNLQJ WHPSHUDWXUHV DUH DFFHSWDEOH SURYLGHG WKDW WKH
&25( 7(03(5$785( LV PDLQWDLQHG IRU D VSHFLILHG SHULRG RI WLPH DV
IROORZVDQGVXPPDUL]HGLQ7DEOH:.DD
&IRUDPLQLPXPRIPLQXWHV
&IRUDPLQLPXPRIPLQXWHV
&IRUDPLQLPXPRIPLQXWHV
2IFRXUVHWKHUHFDQEHRWKHUVSHFLILFVEXWWKHVHDUHWKHRQHVVXJJHVWHGE\
WKH8.)RRG6WDQGDUGV$JHQF\
&RQVXPHU/DEHOLQJ
%HVLGHV IRRG K\JLHQH DQG FRRNLQJ FRQWURO WKHUH LV DOVR WKH QHHG RI
FRQVXPHUODEHOLQJ
)RU LQVWDQFH LQ WKH 8. IRRGVWXIIVKDYH RQH RI WZR ODEHOV WR
LQGLFDWHWKHQDWXUHRIWKHGHWHULRUDWLRQRIWKHSURGXFWDQGDQ\VXEVHTXHQW
KHDOWKLVVXHV(+2)RRG+\JLHQHFHUWLILFDWLRQLVUHTXLUHGWRSUHSDUHDQG
GLVWULEXWH IRRG :KLOH WKHUH LV QR VSHFLILHG H[SLU\ GDWH RI VXFK D
TXDOLILFDWLRQ LW LV VXJJHVWHG WR XSGDWH HYHU\ ILYH \HDUV %HVW EHIRUH
LQGLFDWHVDIXWXUHGDWHEH\RQGZKLFKWKHIRRGSURGXFWPD\ORVHTXDOLW\LQ
WHUPV RI WDVWH RU WH[WXUH DPRQJVW RWKHUV EXW GRHV QRW LPSO\ DQ\ VHULRXV
KHDOWKSUREOHPVLI IRRGLVFRQVXPHGEH\RQGWKLVGDWHZLWKLQUHDVRQDEOH
OLPLWV8VHE\LQGLFDWHVDOHJDOGDWHEH\RQGZKLFKLWLVQRWSHUPLVVLEOHWR
VHOO D IRRG SURGXFW XVXDOO\ RQH WKDW GHWHULRUDWHV IDLUO\ UDSLGO\ DIWHU
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
SURGXFWLRQ GXH WR WKH SRWHQWLDO VHULRXV QDWXUH RI FRQVXPSWLRQ RI
SDWKRJHQV/HHZD\LVVRPHWLPHVSURYLGHGE\SURGXFHUVLQVWDWLQJGLVSOD\
XQWLOGDWHVVRWKDWSURGXFWVDUHQRWDWWKHLUOLPLWRIVDIHFRQVXPSWLRQRQWKH
DFWXDO GDWH VWDWHG WKLV ODWWHU LV YROXQWDU\ DQG QRW VXEMHFW WR UHJXODWRU\
FRQWURO7KLVDOORZVIRUWKHYDULDELOLW\LQSURGXFWLRQVWRUDJHDQGGLVSOD\
PHWKRGV:.DD
,QWKH8QLWHG6WDWHV ZLWKWKHH[FHSWLRQRILQIDQW IRUPXODDQGEDE\
IRRGVZKLFKPXVWEHZLWKGUDZQE\WKHLUH[SLUDWLRQGDWH)HGHUDOODZGRHV
QRWUHTXLUHH[SLUDWLRQGDWHV)RUDOORWKHUIRRGVH[FHSWGDLU\SURGXFWVLQ
VRPH VWDWHV IUHVKQHVV GDWLQJ LV VWULFWO\ YROXQWDU\ RQ WKH SDUW RI
PDQXIDFWXUHUV ,Q UHVSRQVH WR FRQVXPHU GHPDQG SHULVKDEOH IRRGV DUH
W\SLFDOO\ODEHOHGZLWKD6HOOE\GDWH,WLVXSWRWKHFRQVXPHUWRGHFLGHKRZ
ORQJ DIWHU WKH 6HOO E\ GDWH D SDFNDJH LV XVDEOH 2WKHU FRPPRQ GDWLQJ
VWDWHPHQWVDUH%HVWLIXVHGE\8VHE\ GDWH([SLUDWLRQGDWH*XDUDQWHHG
IUHVKGDWHDQG3DFNGDWH:.DD
5HJXODWRU\(PIRUFHPHQWV
%XW WKH LVVXHV RI IRRG K\JLHQH FRRNLQJ FRQWURO DQG FRQVXPHU
ODEHOLQJDOVRUHTXLUHUHJXODWRU\HQIRUFHPHQWVWRPDNHWKHPDSSOLHG
3UHFLVHO\ KHUH GLIIHUHQW FRXQWULHV KDYH GLIIHUHQW UHJXODWRU\
HQIRUFHPHQWV ZLWK WKHLU GLIIHUHQW SUREOHPV &RQVLGHU D IHZ RI WKHP
EHORZ
D$XVWUDOLD
,Q$XVWUDOLD $XVWUDOLDQ)RRG$XWKRULW\LV ZRUNLQJWRZDUGHQVXULQJ
WKDW DOO IRRG EXVLQHVVHV LPSOHPHQW IRRG VDIHW\ V\VWHPV WR HQVXUH IRRG LV
VDIHWRFRQVXPHLQDELGWRKDOWWKHLQFUHDVLQJLQFLGHQFHRIIRRGSRLVRQLQJ
WKLV LQFOXGHV EDVLF IRRG VDIHW\ WUDLQLQJ IRU DW OHDVW RQH SHUVRQ LQ HDFK
EXVLQHVV:.DD
6RPHEDVLFJXLGHOLQHVLQ$XVWUDOLDQIRRGVDIHW\WUDLQLQJLQFOXGHVWKH
IROORZLQJ:.DD
8QGHUVWDQGLQJWKHKD]DUGVDVVRFLDWHGZLWKWKHPDLQW\SHVRIIRRGDQG
WKHFRQGLWLRQVWRSUHYHQWWKHJURZWKRIEDFWHULDZKLFKFDQFDXVHIRRG
SRLVRQLQJ
7KH SUREOHPV DVVRFLDWHG ZLWK SURGXFW SDFNDJLQJ VXFK DV OHDNV LQ
YDFXXP SDFNV GDPDJH WR SDFNDJLQJ RU SHVW LQIHVWDWLRQ DV ZHOO DV
SUREOHPVDQGGLVHDVHVVSUHDGE\SHVWV
6DIH IRRG KDQGOLQJ 7KLV LQFOXGHV VDIH SURFHGXUHV IRU HDFK SURFHVV
VXFKDVUHFHLYLQJUHSDFNLQJIRRGVWRUDJHSUHSDUDWLRQDQGFRRNLQJ
FRROLQJ DQG UHKHDWLQJ GLVSOD\LQJ SURGXFWV KDQGOLQJ SURGXFWV ZKHQ
&KDSWHU7HFKQLTXHVDQGWKHLU'XDO6LGHV
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
WRIRRGVDIHW\WKHWHQGHQF\WRHUURQWKHVLGHRIPD[LPXPSURWHFWLRQIRU
WKHFRQVXPHUPD\EHVHHQDVDSRVLWLYHEHQHILW:.DD
,QDGGLWLRQLQGLYLGXDOPHPEHUVWDWHVPD\DOVRKDYHRWKHUOHJLVODWLRQ
DQG FRQWUROV LQ UHVSHFW RI IRRG VDIHW\ SURYLGHG WKDW WKH\ GR QRW SUHYHQW
WUDGH ZLWK RWKHU VWDWHV DQG FDQ GLIIHU FRQVLGHUDEO\ LQ WKHLU LQWHUQDO
VWUXFWXUHVDQGDSSURDFKHV WR WKHUHJXODWRU\FRQWURORI IRRGVDIHW\:.
DD
G3DNLVWDQ
,Q 3DNLVWDQ WKHUH LV QR LQWHJUDWHG OHJDO IUDPHZRUN EXWD VHW RI
ODZVZKLFKGHDOVZLWKYDULRXVDVSHFWVRIIRRGVDIHW\7KHVHODZVGHVSLWH
WKHIDFWWKDWWKH\ZHUHHQDFWHGORQJWLPHDJRKDYHWUHPHQGRXVFDSDFLW\WR
DFKLHYHDWOHDVWPLQLPXPOHYHORIIRRGVDIHW\:.DD
8QIRUWXQDWHO\OLNHPDQ\RWKHUODZVWKHVHODZVUHPDLQYHU\SRRUO\
HQIRUFHG7KHUHDUHIRXUODZVWKDWVSHFLILFDOO\GHDOZLWKIRRGVDIHW\7KUHH
RIWKHVHODZVGLUHFWO\IRFXVLVVXHVUHODWHGWRIRRGVDIHW\ZKLOHWKHIRXUWK
WKH 3DNLVWDQ 6WDQGDUGV DQG 4XDOLW\ &RQWURO $XWKRULW\ $FW LV LQGLUHFWO\
UHOHYDQWWRIRRGVDIHW\:.DD
)XUWKHUPRUH WKHUH DUH QR H[SUHVV SURYLVLRQV IRU FRQVXPHU
FRPSODLQWV LQ WKH 3DNLVWDQ 5HVWDXUDQWV $FW 3DNLVWDQ 3HQDO &RGH
DQG 3DNLVWDQ 6WDQGDUGV DQG 4XDOLW\ &RQWURO $XWKRULW\ $FW
7KH ODZV GR QRW SUHYHQW FLWL]HQV IURP ORGJLQJ FRPSODLQWV ZLWK WKH
FRQFHUQHGJRYHUQPHQWRIILFLDOVKRZHYHUWKHFRQVLGHUDWLRQDQGKDQGOLQJ
RIFRPSODLQWVLVDPDWWHURIGLVFUHWLRQRIWKHRIILFLDOV:.DD0
6LUDM
H8QLWHG6WDWHV
,QWKH8QLWHG6WDWHVWKH)RRGDQG'UXJ$GPLQLVWUDWLRQSXEOLVKHVWKH
)RRG &RGH D PRGHO VHW RI JXLGHOLQHV DQG SURFHGXUHV WKDW DVVLVWV IRRG
FRQWUROMXULVGLFWLRQVE\SURYLGLQJDVFLHQWLILFDOO\VRXQGWHFKQLFDODQGOHJDO
EDVLV IRU UHJXODWLQJ WKH UHWDLO DQG IRRG VHUYLFH LQGXVWULHV LQFOXGLQJ
UHVWDXUDQWVJURFHU\VWRUHVDQGLQVWLWXWLRQDO IRRGVHUYLFHSURYLGHUVVXFKDV
QXUVLQJ KRPHV 5HJXODWRU\ DJHQFLHV DW DOO OHYHOV RI JRYHUQPHQW LQ WKH
8QLWHG 6WDWHV XVH WKH )'$ )RRG &RGH WR GHYHORS RU XSGDWH IRRG VDIHW\
UXOHVLQWKHLUMXULVGLFWLRQVWKDWDUHFRQVLVWHQWZLWKQDWLRQDOIRRGUHJXODWRU\
SROLF\$FFRUGLQJWRWKH)'$RIVWDWHVDQGWHUULWRULHVUHSUHVHQWLQJ
RIWKH86SRSXODWLRQKDYHDGRSWHGIRRGFRGHVSDWWHUQHGDIWHURQH
RIWKH ILYHYHUVLRQVRIWKH )RRG&RGHEHJLQQLQJ ZLWKWKH HGLWLRQ
:.DD)'$
+RZHYHUWKHUHDUHWZRPDMRUSUREOHPV
)LUVWO\IHGHUDOUHJXODWLRQVJRYHUQLQJIRRGVDIHW\DUHIUDJPHQWHGDQG
FRPSOLFDWHG DFFRUGLQJ WR D )HEUXDU\ UHSRUW IURP WKH *RYHUQPHQW
&KDSWHU7HFKQLTXHVDQGWKHLU'XDO6LGHV
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
6XUHO\ WKLV GRHV QRW PHDQ WR IDYRU RQH UHFRPPHQGDWLRQ RI RQH DJHQF\
RYHUWKHRWKHUEXWWKHSRLQWKHUHLVWRSRLQWRXWWKHGLIIHUHQWFRQIOLFWLQJ
UHFRPPHQGDWLRQVZLWKQRFOHDUFRQVHQVXV
6HFRQGO\ DQRWKHU PDLQ FULWLFLVP RI WKH QDWXUH RI IRRG VDIHW\ LV WKDW
FRRNLQJFRQWUROLVQRWVXIILFLHQW
)RU LQVWDQFH IRU WKH FULWLFV UHFRPPHQGHG FRRNLQJ FRQGLWLRQV DUH
RQO\ DSSURSULDWH LI LQLWLDO EDFWHULDO QXPEHUV LQ WKH XQFRRNHG IRRG DUH
VPDOO&RRNLQJGRHVQRWRYHUFRPHSRRUK\JLHQH:.DD
7KLUGO\VWLOODQRWKHUPDLQFULWLFLVPRIWKHQDWXUHRIIRRGVDIHW\LVWKDW
WKHUHDUHGLYHUVHFRQIOLFWLQJUHJXODWRU\HQIRUFHPHQWV
)RULQVWDQFHWKHDQDO\VLVRIWKHGLIIHUHQWUHJXODWRU\HQIRUFHPHQWVLQ
WKH HDUOLHU VXEVHFWLRQ SUHFLVHO\ UHYHDOV GLIIHUHQW VWDQGDUGV LQ GLIIHUHQW
FRXQWULHV
$QGIRXUWKO\DQDGGLWLRQDOPDLQFULWLFLVPRIWKHQDWXUHRIIRRGVDIHW\
LVWKDWSUDFWLFHLVGLIIHUHQWIURPWKHRU\
)RU LQVWDQFH DOWKRXJK LQ WKHRU\ IRRG SRLVRQLQJ LV
SUHYHQWDEOH WKH GLIIHUHQW SUREOHPV LQ GLIIHUHQW FRXQWULHV LQ UHJDUG WR
UHJXODWRU\ HQIRUFHPHQWV FOHDUO\ VKRZ WKDW UHDOLW\ LV IDU IURP ZKDW WKH
WKHRU\ZRXOGKDYHXVEHOLHYH
%H\RQG)RRG6DIHW\
7KHVHFULWLFLVPVRIIRRGVDIHW\LQGLIIHUHQWFRXQULHVKRZHYHUGRQRW
VXJJHVW D WRWDO UHMHFWLRQ RI LWV XVHIXOQHVV EXW VHUYH WR VKRZ XV WKH WZR
RSSRVLQJ VLGHV RI WKH GHEDWH VXFK WKDW WKH SRVVLELOLW\ RU LPSRVVLELOLW\
DQGGHVLUDELOLW\RUXQGHVLUDELOLW\RIWHFKQLTXHVIURPWKHSHUVSHFWLYHRI
WKH PLQG ZLWK WHFKQLTXHV GLVHDVH DQG IRRG VDIHW\ DV D FDVH VWXG\ KHUH
DUHQRWWRWKHH[WHQWWKDWWKHUHVSHFWLYHGHIHQGHUVZRXOGOLNHXVWREHOLHYH
,QIDFWWKHDQDO\VLVRIWHFKQLTXHVGLVHDVHDQGIRRGVDIHW\FDQWHDFK
XV VRPHWKLQJ YDOXDEOH DERXW WKH RQWRORJLFDO SULQFLSOHV LQ H[LVWHQWLDO
GLDOHFWLFV DQG JRRG H[DPSOHV LQFOXGH WKH IRUPDOQHVVLQIRUPDOQHVV
SULQFLSOH WKH DEVROXWHQHVVUHODWLYHQHVV SULQFLSOH WKH SDUWLDOLW\WRWDOLW\
SULQFLSOH WKH SUHGLFWDELOLW\XQSUHGLFWDELOLW\ SULQFLSOH WKH H[SOLFDELOLW\
LQH[SOLFDELOLW\ SULQFLSOH WKH ILFWLRQUHDOLW\ SULQFLSOH WKH ILQLWHQHVV
WUDQVILQLWHQHVV SULQFLSOH WKH SUHFLVHQHVVYDJXHQHVV SULQFLSOH WKH
VLPSOHQHVVFRPSOLFDWHGQHVV SULQFLSOH WKH RSHQQHVVKLGGHQQHVV SULQFLSOH
WKH GHQVHQHVVHPSWLQHVV SULQFLSOH WKH FKDQJHFRQVWDQF\ SULQFLSOH WKH
RUGHUFKDRV SULQFLSOH WKH VORZQHVVTXLFNQHVV SULQFLSOH WKH H[SDQVLRQ
FRQWUDFWLRQ SULQFLSOH WKH WKHRU\SUD[LV SULQFLSOH WKH FRQYHQWLRQQRYHOW\
SULQFLSOH WKH HYROXWLRQWUDQVIRUPDWLRQ SULQFLSOH WKH V\PPHWU\
DV\PPHWU\ SULQFLSOH WKH VRIWQHVVKDUGQHVV SULQFLSOH WKH VHULRXVQHVV
SOD\IXOQHVV SULQFLSOH WKH DFWLYHQHVVLQDFWLYHVV SULQFLSOH WKH VHOIQHVV
&KDSWHU7HFKQLTXHVDQGWKHLU'XDO6LGHV
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
ZKHWKHULQ&KLQDRUWKHUHVWRI$VLDSUHVHQWO\SURYLGHOLWWOHPRWLYDWLRQRU
LQFHQWLYHIRULQGLYLGXDOIDUPHUVWRPDNHLPSURYHPHQWVWRHLWKHUTXDOLW\RU
VDIHW\$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH H[SOLFDELOLW\LQH[SOLFDELOLW\ SULQFLSOH LI WKHUH LV
H[SOLFDELOLW\HJWKHH[SODQDWLRQE\)'$WKDWLWV)RRG&RGHLVGHVLUDEOH
EHFDXVH LW SURYLGHV D VFLHQWLILFDOO\ VRXQG WHFKQLFDO DQG OHJDO EDVLV IRU
UHJXODWLQJWKHUHWDLODQGIRRGVHUYLFHLQGXVWULHVIRUIRRGVDIHW\WKHUHLV
LQH[SOLFDELOLW\HJWKHODFNRIVXIILFLHQWH[SODQDWLRQE\)'$RIZK\LWV
)RRG&RGHLVGHVLUDEOHEHFDXVHIRUWKHFULWLFVWKHIRRGLQGXVWU\GLVDJUHH
DQG LV MHRSDUGL]LQJ 86 SXEOLF KHDOWK E\ ZLWKKROGLQJ LQIRUPDWLRQ IURP
IRRG VDIHW\ LQYHVWLJDWRUV RU SUHVVXULQJ UHJXODWRUV WR ZLWKGUDZ RU DOWHU
SROLF\ GHVLJQHG WR SURWHFW FRQVXPHUV $QG WKH UHYHUVH GLUHFWLRQ DOVR
KROGVWUXH
,Q UHODWLRQ WR WKH ILFWLRQUHDOLW\ SULQFLSOH LI WKHUH LV ILFWLRQ HJ WKH
ILFWLRQDODVSHFWRIWKHIRXUODZVWKDWVSHFLILFDOO\GHDOZLWKIRRGVDIHW\
LQ 3DNLVWDQ EHFDXVH XQIRUWXQDWHO\ OLNH PDQ\ RWKHU ODZV WKHVH ODZV
UHPDLQYHU\SRRUO\HQIRUFHGWKHUHLVUHDOLW\HJWKHUHDOLVWLFDVSHFWRI
WKHIRXUODZVWKDWVSHFLILFDOO\GHDOZLWKIRRGVDIHW\LQ3DNLVWDQEHFDXVH
WKHVHODZVKDYHWUHPHQGRXVFDSDFLW\WRDFKLHYHDWOHDVWPLQLPXPOHYHO
RIIRRGVDIHW\$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH ILQLWHQHVVWUDQVILQLWHQHVV SULQFLSOH LI WKHUH LV
ILQLWHQHVV HJ WKH ILQLWH QXPEHU RI WKH SULQFLSOHV RI IRRG K\JLHQH DV
VKRZQ E\ WKH SULQFLSOHV DFFRUGLQJ WR :+2 WR ILJKW EDFWHULD LQ IRRG
WKHUH LV WUDQVILQLWHQHVV HJ WKH WUDQVILQLWH QXPEHU RI DOO WKH SRVVLEOH
LQGLYLGXDO EDFWHULD LQ KLVWRU\ ZKLFK KDYH HYHU H[LVWHG LQ IRRG $QG WKH
UHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH SUHFLVHQHVVYDJXHQHVV SULQFLSOH LI WKHUH LV
SUHFLVHQHVV HJ WKH SUHFLVH LGHQWLILFDWLRQ RI EDVLF JXLGHOLQHV LQ
$XVWUDOLDQIRRGVDIHW\WUDLQLQJLQWKHDUWLFOHDIRUHFLWHGWKHUHLVYDJXHQHVV
HJ WKH YDJXHQHVV LQ WKH LGHQWLILFDWLRQ RI WKH EDVLF JXLGHOLQHV LQ
$XVWUDOLDQIRRGVDIHW\WUDLQLQJLQWKHDUWLFOHDIRUHFLWHGVLQFHLWLVQRWFOHDU
ZK\WKHUHPXVWEHRQO\QRWDQGVRRQ$QGWKHUHYHUVHGLUHFWLRQ
DOVRKROGVWUXH
,Q UHODWLRQ WR WKH VLPSOHQHVVFRPSOLFDWHGQHVV SULQFLSOH LI WKHUH LV
VLPSOHQHVV HJ WKH UHODWLYHO\ VLPSOH DQDO\VLV RI IRRG VDIHW\ E\ WKH
DGYRFDWHVWKHUHLVFRPSOLFDWHGQHVVHJWKHUHODWLYHO\PRUHFRPSOLFDWHG
DQDO\VLV RI IRRG VDIHW\ E\ FKDOOHQJLQJ WKH FODLPV DQG DVVXPSWLRQV DV
VKRZQLQWKHSUREOHPVSRLQWHGRXWE\WKHFULWLFVDVFLWHG$QGWKHUHYHUVH
GLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHRSHQQHVVKLGGHQQHVVSULQFLSOHLIWKHUHLVRSHQQHVV
HJ WKH RSHQ H[SORUDWLRQ RI WKH YLRODWLRQV RI IRRG VDIHW\ E\ 86'$
&KDSWHU7HFKQLTXHVDQGWKHLU'XDO6LGHV
DJDLQVW WKH IRRG LQGXVWU\ WKHUH LV KLGGHQQHVV HJ WKH KLGGHQ ELDV LQ
86'$ LQ LWV UHJXODWRU\ HQIRUFHPHQWV DJDLQVW WKH IRRG LQGXVWU\ EHFDXVH
DFFRUGLQJWR'U'HDQ:\DWWD86'$YHWHULQDULDQZKRRYHUVHHVIHGHUDO
VODXJKWHUKRXVHLQVSHFWRUV
8SSHUOHYHOPDQDJHPHQWGRHVQRWDGHTXDWHO\
VXSSRUW ILHOG LQVSHFWRUV DQG WKH DFWLRQV WKH\ WDNH WR SURWHFW WKH IRRG
VXSSO\1RWRQO\LVWKHUHODFNRIVXSSRUWEXWWKHUH
VRXWULJKWREVWUXFWLRQ
UHWDOLDWLRQDQGDEXVHRISRZHU
$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHGHQVHQHVVHPSWLQHVVSULQFLSOHLIWKHUHLVGHQVHQHVV
HJ WKH UHODWLYHO\ GHQVHU FRQFHQWUDWLRQ RI FRQFHUQV ZLWK IRRG VDIHW\
DPRQJWKRVHLQWKH6WDWH)RRGDQG'UXJ$GPLQLVWUDWLRQLQ&KLQDWKHUHLV
HPSWLQHVVHJWKHUHODWLYHO\OHVVGHQVHRUPRUHHPSW\FRQFHQWUDWLRQRI
FRQFHUQVZLWKIRRGVDIHW\DPRQJWKRVHLQWUDGLWLRQDOPDUNHWLQJV\VWHPV
ZKHWKHU LQ &KLQD RU WKH UHVW RI $VLD ZKLFK SUHVHQWO\ SURYLGH OLWWOH
PRWLYDWLRQ RU LQFHQWLYH IRU LQGLYLGXDO IDUPHUV WR PDNH LPSURYHPHQWV WR
HLWKHUTXDOLW\RUVDIHW\$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHFKDQJHFRQVWDQF\SULQFLSOHLIWKHUHLVFKDQJHHJ
WKH HYHU QHZ ZD\V WR SUHYHQW IRRG SRLVRQLQJ DV VKRZQ LQ WKH GLIIHUHQW
UHJXODWRU\ HQIRUFHPHQWV LQ GLIIHUHQW FRXQWULHV DIRUHFLWHG WKHUH LV
FRQVWDQF\ HJ WKH HYHU FRQVWDQW H[LVWHQFH RI GLIIHUHQW SUREOHPV LQ WKH
HYHUQHZZD\VWRSUHYHQWIRRGSRLVRQLQJDVVKRZQLQWKHSUREOHPVZLWK
WKHGLIIHUHQWUHJXODWRU\HQIRUFHPHQWVLQGLIIHUHQWFRXQWULHVSRLQWHGRXWE\
WKHFULWLFV$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHRUGHUFKDRVSULQFLSOHLIWKHUHLVRUGHUHJWKHPRUH
RU OHVV RUGHUO\ DSSHDUDQFH RI IRRG VDIHW\ LQ WKH 8QLWHG 6WDWHV LI ORRNHG
IURP WKH YDQWDJH SRLQW RI WKH )RRG DQG 'UXJ $GPLQLVWUDWLRQ ZKLFK
SXEOLVKHVWKH)RRG&RGHD PRGHOVHWRI JXLGHOLQHVDQGSURFHGXUHVWKDW
DVVLVWV IRRG FRQWURO MXULVGLFWLRQV E\ SURYLGLQJ D VFLHQWLILFDOO\ VRXQG
WHFKQLFDO DQG OHJDO EDVLV IRU UHJXODWLQJ WKH UHWDLO DQG IRRG VHUYLFH
LQGXVWULHV WKHUH LV FKDRV HJ WKH PRUH RU OHVV FKDRWLF DSSHDUDQFH RI
IRRG VDIHW\ LQ WKH 8QLWHG 6WDWHV LI ORRNHG IURP WKH YDQWDJH SRLQW RI
IHGHUDO UHJXODWLRQV JRYHUQLQJ IRRG VDIHW\ ZKLFK DUH WRR IUDJPHQWHG
DQG FRPSOLFDWHG DFFRUGLQJ WR D )HEUXDU\ UHSRUW IURP WKH
*RYHUQPHQW$FFRXQWDELOLW\2IILFH$QGWKHUHYHUVHGLUHFWLRQDOVRKROGV
WUXH
,Q UHODWLRQ WR WKH VORZQHVVTXLFNQHVV SULQFLSOH LI WKHUH LV VORZQHVV
HJWKHUHODWLYHO\VORZHUVSHHGRIFRRNLQJIRUIRRGVDIHW\LIFRRNHGZLWK
DWHUPSHUDWXUHRI&IRUVHFRQGVDVVXJJHVWHGLQRQHJXLGHOLQHE\
WKH 8. 'HSDUWPHQW 2I +HDOWK WKHUH LV TXLFNQHVV HJ WKH UHODWLYHO\
TXLFNHUVSHHGRIFRRNLQJIRUIRRGVDIHW\LIFRRNHGZLWKDWHUPSHUDWXUHRI
& IRU VHFRQGV DV VXJJHVWHG LQ DQRWKHU JXLGHOLQH E\ WKH 8.
'HSDUWPHQWRI+HDOWK$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
,QUHODWLRQWRWKHH[SDQVLRQFRQWUDFWLRQSULQFLSOHLIWKHUHLVH[SDQVLRQ
HJ WKH UHODWLYH H[SDQVLRQ QRZDGD\V RI JXLGHOLQHV IRU IRRG VDIHW\ LQ
&KLQD HVSHFLDOO\ ZLWK WKH FUHDWLRQ RI WKH 6WDWH )RRG DQG 'UXJ
$GPLQLVWUDWLRQ LQ WKHUH LV FRQWUDFWLRQ HJ WKH UHODWLYH GHFOLQH
QRZDGD\VRIWUDGLWLRQDOPDUNHWLQJV\VWHPVZKHWKHULQ&KLQDRUWKHUHVW
RI $VLD HYHQ WKRXJK WKH\ VWLOO SUHVHQWO\ SURYLGH OLWWOH PRWLYDWLRQ RU
LQFHQWLYHIRULQGLYLGXDOIDUPHUVWRPDNHLPSURYHPHQWVWRHLWKHUTXDOLW\RU
VDIHW\$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH WKHRU\SUD[LV SULQFLSOH LI WKHUH LV WKHRU\ HJ LQ
WKHRU\ IRRG SRLVRQLQJ LV SUHYHQWDEOH WKHUH LV SUD[LV HJ WKH
GLIIHUHQW SUREOHPV LQ GLIIHUHQW FRXQWULHV LQ UHJDUG WR UHJXODWRU\
HQIRUFHPHQWVFOHDUO\VKRZWKDWUHDOLW\LVIDU IURP ZKDWWKHWKHRU\ ZRXOG
KDYHXVEHOLHYH$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHFRQYHQWLRQQRYHOW\SULQFLSOHLIWKHUHLVFRQYHQWLRQ
HJ WKH FRQYHQWLRQDO ZLVGRP DERXW WUDGLWLRQDO PDUNHWLQJ V\VWHPV
ZKHWKHULQ&KLQDRUWKHUHVWRI$VLDZKLFKSURYLGHOLWWOHPRWLYDWLRQRU
LQFHQWLYHIRULQGLYLGXDOIDUPHUVWRPDNHLPSURYHPHQWVWRHLWKHUTXDOLW\RU
VDIHW\ WKHUH LV QRYHOW\ HJ WKH DOWHUQDWLYH QRYHO FKDOOHQJH WR WKH
FRQYHQWLRQDO ZLVGRP DERXW WUDGLWLRQDO PDUNHWLQJ V\VWHPV E\ WKH QHZ
LGHDRIWKH6WDWH)RRGDQG'UXJ$GPLQLVWUDWLRQLQ&KLQDIRUIRRGVDIHW\
$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH HYROXWLRQWUDQVIRUPDWLRQ SULQFLSOH LI WKHUH LV
HYROXWLRQHJWKHQDWXUDOHYROXWLRQRIKXPDQVWRGHSHQGRQHDWLQJZLOG
SODQWV LQ WKH VWDWH RI QDWXUH LQ D SULPLWLYH ZD\ WKHUH LV WUDQVIRUPDWLRQ
HJWKHWHFKQLFDOWUDQVIRUPDWLRQRIKXPDQDELOLW\WRFRRNVDIHO\E\WKH
LQYHQWLRQ RI GLIIHUHQW IRRG VDIHW\ JXLGHOLQHV OLNH FRRNLQJ FRQWURO IRRG
K\JLHQHHWF$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHV\PPHWU\DV\PPHWU\SULQFLSOHLIWKHUHLVV\PPHWU\
HJ WKH H[LVWHQFH RI GLIIHUHQW VRFLDO DJHQWV OLNH $XVWUDOLDQ )RRG
$XWKRULW\ IRRG EXVLQHVVHV FRQVXPHUV HWF WKHUH LV DV\PPHWU\ HJ
$XVWUDOLDQ )RRG $XWKRULW\ FDQ IRUFH IRRG EXVLQHVVHV E\ UHJXODWRU\
HQIRUFHPHQWVWRFRPSO\ZLWKGLIIHUHQWJXLGHOLQHVWRHQVXUHIRRGLVVDIHWR
FRQVXPHUV$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHVRIWQHVVKDUGQHVVSULQFLSOHLIWKHUHLVVRIWQHVVHJ
WKHEDVLFIRRGVDIHW\WUDLQLQJLQ$XVWUDOLDWKHUHLVKDUGQHVVHJSHRSOH
UHVSRQVLEOHIRUVHUYLQJXQVDIHIRRGFDQEHOLDEOHIRUKHDY\ILQHVXQGHUWKLV
QHZOHJLVODWLRQLQ$XVWUDOLD$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH VHULRXVQHVVSOD\IXOQHVV SULQFLSOH LI WKHUH LV
VHULRXVQHVV HJ WKH VHULRXV EXVLQHVV RI WKRVH IRU IRRG VDIHW\ WR SUHYHQW
IRRG SRLVRQLQJ WKHUH LV SOD\IXOQHVV HJ WKH SOD\IXO SDUW RI WKRVH IRU
IRRG VDIHW\ WR SUHYHQW IRRG SRLVRQLQJ ZKHQ WKH\ SOD\ ZLWK GLIIHUHQW
&KDSWHU7HFKQLTXHVDQGWKHLU'XDO6LGHV
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
$QGLQUHODWLRQWRWKHIXQFWLRQDOLW\QRQIXQFWLRQDOLW\SULQFLSOHLIWKHUH
LVIXQFWLRQDOLW\HJWKHSUHVHQFHRIDFWLRQIRUZKLFKVRPHWKLQJLVILWWHG
DVVKRZQLQWUDGLWLRQDOPDUNHWLQJV\VWHPVZKLFKVHUYHGZHOOWKHROGHU
PDUNHWLQJ IUDPHZRUNV LQ &KLQD DQG WKH UHVW RI $VLD LQ WKH ROGHU GD\V
WKHUH LV QRQIXQFWLRQDOLW\ HJ WKH UHODWLYH ODFN RI DFWLRQ IRU ZKLFK
VRPHWKLQJLVILWWHGDV VKRZQLQWKHFUHDWLRQRIWKH 6WDWH )RRGDQG'UXJ
$GPLQLVWUDWLRQ LQ &KLQD LQ ZKHQ WKH ROGHU WUDGLWLRQDO PDUNHWLQJ
V\VWHPVDUHQRORQJHUIXQFWLRQDOLQRXUWLPHEHFDXVHRIWKHLUIDLOXUHWR
PDNH LPSURYHPHQWV WR HLWKHU TXDOLW\ RU VDIHW\ E\ FRQWHPSRUDU\ KLJKHU
VWDQGDUGV$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
7HFKQLTXHV&RRNLQJDQG+HDOWK
$QRWKHU ZD\ WR HYDOXDWH WKH SRVVLELOLW\ RU LPSRVVLELOLW\ DQG
GHVLUDELOLW\ RU XQGHVLUDELOLW\ RI WHFKQLTXHV IURP WKH SHUVSHFWLYH RI WKH
PLQGLVWRH[SORUHWHFKQLTXHVFRRNLQJDQGKHDOWK
7KH ZRUG FRRNLQJ UHIHUV WR WKH SURFHVV RI SUHSDULQJ IRRG RIWHQ
ZLWK WKH XVH RI KHDW &RRNLQJ WHFKQLTXHV DQG LQJUHGLHQWV YDU\ ZLGHO\
DFURVVWKHZRUOGUHIOHFWLQJXQLTXHHQYLURQPHQWDOHFRQRPLFDQGFXOWXUDO
WUDGLWLRQV&RRNVWKHPVHOYHVDOVRYDU\ZLGHO\LQVNLOODQGWUDLQLQJ:.
D
:KHQFRQWUDVWHGZLWKRWKHUDQLPDOVSUHSDULQJIRRGZLWKKHDWRUILUH
LVDQDFWLYLW\XQLTXHWRKXPDQVDQGVRPHVFLHQWLVWVEHOLHYHWKHDGYHQWRI
FRRNLQJ SOD\HG DQ LPSRUWDQW UROH LQ KXPDQ HYROXWLRQ 0RVW
DQWKURSRORJLVWVEHOLHYHWKDWFRRNLQJILUHV ILUVWGHYHORSHGDURXQG
\HDUV DJR 7KH GHYHORSPHQW RI DJULFXOWXUH FRPPHUFH DQG WUDQVSRUWDWLRQ
EHWZHHQ FLYLOL]DWLRQV LQ GLIIHUHQW UHJLRQV RIIHUHG FRRNV PDQ\ QHZ
LQJUHGLHQWV1HZLQYHQWLRQVDQGWHFKQRORJLHVVXFKDVSRWWHU\IRUKROGLQJ
DQGERLOLQJZDWHUH[SDQGHGFRRNLQJWHFKQLTXHV:.D:*LEEV
0HWKRGVRI&RRNLQJ
%HFDXVHRIWKLVORQJKLVWRU\LWLVWKXVQRVXUSULVHWKDWWKHUHDUHYHU\
PDQ\ PHWKRGV RI FRRNLQJ PRVW RI ZKLFK KDYH EHHQ NQRZQ VLQFH
DQWLTXLW\9DULRXVPHWKRGVXVHGLIIHULQJOHYHOVRIKHDWDQGPRLVWXUHDQG
YDU\ LQ FRRNLQJ WLPH 7KH PHWKRG FKRVHQ JUHDWO\ DIIHFWV WKH HQG UHVXOW
6RPH IRRGV DUH PRUH DSSURSULDWH WR VRPH PHWKRGV WKDQ RWKHUV :.
D
+HUHDIWHUDUHVRPHPRVWFRPPRQFRRNLQJWHFKQLTXHVDVVXPPDUL]HG
LQ7DEOH:.D
&KDSWHU7HFKQLTXHVDQGWKHLU'XDO6LGHV
URDVWLQJ
([ URDVWLQJ EDUEHFXLQJ JULOOLQJEURLOLQJ URWLVVHULH
VHDULQJHWF
%DNLQJ
([EDNLQJEDNLQJEOLQGIODVKEDNLQJHWF
%RLOLQJ
([ ERLOLQJ EODQFKLQJ EUDLVLQJ FRGGOLQJ GRXEOH
VWHDPLQJ LQIXVLRQ SRDFKLQJ SUHVVXUH FRRNLQJ
VLPPHULQJ VWHDPLQJ VWHHSLQJ VWHZLQJ YDFXXP IODVN
FRRNLQJHWF
)U\LQJ
([ IU\LQJ GHHS IU\LQJ KRW VDOW IU\LQJ KRW VDQG IU\LQJ
SDQIU\LQJSUHVVXUHIU\LQJVDXWpLQJVWLUIU\LQJHWF
6PRNLQJ
0LFURZDYLQJ
2IFRXUVHWKHUHFDQEHRWKHUPHWKRGVWRRIRULQVWDQFHFRRNLQJFDQDOVR
RFFXU WKURXJK FKHPLFDO UHDFWLRQV ZLWKRXW WKH SUHVHQFH RI KHDW PRVW
QRWDEO\DVLQ&HYLFKHDWUDGLWLRQDO6SDQLVKGLVKZKHUHILVKLVFRRNHGZLWK
WKH DFLGV LQ OHPRQ RU OLPH MXLFH 6XVKL DOVR XWLOL]HV D VLPLODU FKHPLFDO
UHDFWLRQEHWZHHQILVKDQGWKHDFLGLFFRQWHQWRIULFHJOD]HGZLWKYLQHJDU
:.D
&RRNLQJDQG+HDOWK
7KLV WKHQ UDLVHV WKH TXHVWLRQ RI KRZ KHDOWK\ WKHVH GLIIHUHQW FRRNLQJ
WHFKQLTXHVDUH
,QJHQHUDOWKHUHDUHIRXUPDLQLVVXHVDERXWKHDOWKDQGFRRNLQJZKLFK
KDYH EHHQ GHEDWHG FRQVLGHU IRU LOOXVWUDWLRQ D IHZ H[DPSOHV EHORZ DV
VXPPDUL]HGLQ7DEOH
D)RRG6DIHW\
$Q LVVXH DERXW KHDOWK DQG FRRNLQJ ZKLFK LV KRWO\ GHEDWHG DPRQJ
WKRVH LQ FXOLQDU\ DUW FRQFHUQV IRRG VDIHW\ ZKLFK DV D UHPLQGHU ZDV
DOUHDG\GLVFXVVHGLQGHWDLOLQWKHSUHYLRXVVHFWLRQ
7KH UHDVRQ LV WKDW ZKHQ KHDW LV XVHG LQ WKH SUHSDUDWLRQ RI IRRG LW
FDQ NLOORULQDFWLYDWHSRWHQWLDOO\ KDUPIXORUJDQLVPV VXFKDVEDFWHULDDQG
YLUXVHV DV ZHOO DV YDULRXV SDUDVLWHV VXFK DV WDSHZRUPV DQG 7R[RSODVPD
JRQGLL )RRG SRLVRQLQJ DQG RWKHU LOOQHVV IURP XQFRRNHG RU SRRUO\
SUHSDUHG IRRG PD\ EH FDXVHG E\ EDFWHULD VXFK DV SDWKRJHQLF VWUDLQV RI
(VFKHULFKLD FROL 6DOPRQHOOD W\SKLPXULXP DQG &DPS\OREDFWHU YLUXVHV
VXFKDVQRURYLUXVHVDQGSURWR]RDVXFKDV(QWDPRHEDKLVWRO\WLFD3DUDVLWHV
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
PD\EHLQWURGXFHGWKURXJKVDODGPHDWWKDWLVXQFRRNHGRUGRQHUDUHDQG
XQERLOHGZDWHU:.D
7KHUHIRUH LW LV LPSRUWDQW WKDW FRRNLQJ SUHYHQWV PDQ\ IRRGERUQH
LOOQHVVHV WKDW ZRXOG RWKHUZLVH RFFXU LI WKH UDZ IRRG ZDV HDWHQ &RRNLQJ
DOVRLQFUHDVHVWKHGLJHVWLELOLW\RIVRPHIRRGVVXFKDVJUDLQV0DQ\IRRGV
ZKHQ UDZ DUH LQHGLEOH DQG VRPH DUH SRLVRQRXV )RU H[DPSOH NLGQH\
EHDQV DUH WR[LF ZKHQ UDZ RU LPSURSHUO\ FRRNHG GXH WR WKH SUHVHQFH RI
SK\WRKDHPDJJOXWLQLQ ZKLFK FDQ EH LQDFWLYDWHG DIWHU FRRNLQJ IRU DW OHDVW
WHQ PLQXWHV DW & 6ORZ FRRNHU KRZHYHU PD\ QRW UHDFK WKH GHVLUHG
WHPSHUDWXUHDQGFDVHVRISRLVRQLQJIURPUHGEHDQVFRRNHGLQVORZFRRNHU
KDYHEHHQUHSRUWHG:.D11RDK
%HVLGHVFRRNLQJSUHSDUDWLRQKDQGOLQJDQGVWRUDJHRIIRRGDUHRWKHU
FRQVLGHUDWLRQVLQIRRGVDIHW\7KHWHPSHUDWXUHUDQJHIURP)WR)
&WR&LVWKH
'DQJHU]RQH
ZKHUHEDFWHULDLVOLNHO\WRSUROLIHUDWH
IRRGWKHUHIRUHVKRXOGQRWEHVWRUHGLQWKLVWHPSHUDWXUHUDQJH:DVKLQJRI
KDQGV DQG VXUIDFHV DQG DYRLGDQFH RI FURVVFRQWDPLQDWLRQ DUH JRRG
SUDFWLFHV LQ IRRG VDIHW\ )RRG SUHSDUHG RQ SODVWLF FXWWLQJ ERDUGV PD\ EH
OHVVOLNHO\WRKDUERUEDFWHULDWKDQZRRGHQRQHV:DVKLQJDQGVDQLWL]LQJ
FXWWLQJERDUGVLVKLJKO\UHFRPPHQGHGHVSHFLDOO\DIWHUXVHZLWKUDZPHDW
SRXOWU\RUVHDIRRG+RWZDWHUDQGVRDSIROORZHGE\DULQVHZLWKDQGLOXWHG
DQWLEDFWHULDOFOHDQHURUDWULSWKURXJKDGLVKZDVKHUZLWKD
VDQLWL]H
F\FOH
DUHHIIHFWLYHPHWKRGVIRUUHGXFLQJWKHULVNRILOOQHVVGXHWRFRQWDPLQDWHG
FRRNLQJLPSOHPHQWV:.D86'$8$5*
E(IIHFWVRQ1XWULWLRQDO&RQWHQWRI)RRG
$QRWKHULVVXHDERXWKHDOWKDQGFRRNLQJZKLFKLVKRWO\GHEDWHGDPRQJ
WKRVH LQ FXOLQDU\ DUW FRQFHUQV UDZ IRRGLVP ZKLFK ZDV DOUHDG\
GLVFXVVHGLQGHWDLOLQ6HF
2Q WKH RQH KDQG SURSRQHQWV RI 5DZ IRRGLVP DUJXH WKDW FRRNLQJ
IRRG LQFUHDVHV WKH ULVN RI VRPH RI WKH GHWULPHQWDO HIIHFWV RQ IRRG RU
KHDOWK7KH\SRLQWRXWWKDWWKHFRRNLQJRIYHJHWDEOHVDQGIUXLWFRQWDLQLQJ
YLWDPLQ&ERWKHOXWHVWKHYLWDPLQLQWRWKHFRRNLQJZDWHUDQGGHJUDGHVWKH
YLWDPLQ WKURXJK R[LGDWLRQ 3HHOLQJ YHJHWDEOHV FDQ DOVR VXEVWDQWLDOO\
UHGXFH WKH YLWDPLQ & FRQWHQW HVSHFLDOO\ LQ WKH FDVH RI SRWDWRHV ZKHUH
PRVW YLWDPLQ & LV LQ WKH VNLQ*HUPDQ UHVHDUFK LQ VKRZHG
VLJQLILFDQWEHQHILWVLQUHGXFLQJEUHDVWFDQFHUULVN ZKHQ ODUJHDPRXQWVRI
UDZYHJHWDEOH PDWWHUDUHLQFOXGHGLQWKHGLHW7KHDXWKRUVDWWULEXWHVRPH
RI WKLV HIIHFW WR KHDWODELOH SK\WRQXWULHQWV 6XOIRUDSKDQH ZKLFK PD\ EH
IRXQG LQ YHJHWDEOHV VXFK DV EURFFROL KDV EHHQ VKRZQ WR EH SURWHFWLYH
DJDLQVW SURVWDWH FDQFHU KRZHYHU PXFK RI LW LV GHVWUR\HG ZKHQ WKH
YHJHWDEOHLVERLOHG:.D<-LQ
&KDSWHU7HFKQLTXHVDQGWKHLU'XDO6LGHV
2QWKHRWKHUKDQGUHVHDUFKXVLQJDQDUWLILFLDOJXWKDVVKRZQWKDWLQ
WKH VSHFLILF FDVH RI FDURWHQRLGV D JUHDWHU SURSRUWLRQ LV DEVRUEHG IURP
FRRNHGYHJHWDEOHVWKDQIURPUDZYHJHWDEOHVVRFRRNLQJLVVWLOOGHVLUDEOH
:.D%%&
F&RRNLQJDQG&DUFLQRJHQV
$WKLUGLVVXHDERXWKHDOWKDQGFRRNLQJZKLFKLVKRWO\GHEDWHGDPRQJ
WKRVHLQFXOLQDU\DUWFRQFHUQVFRRNLQJDQGFDUFLQRJHQV
)RULQVWDQFHLQDKXPDQHSLGHPLRORJLFDODQDO\VLVE\5LFKDUG'ROO
DQG5LFKDUG3HWRLQGLHWZDVHVWLPDWHGWRFDXVHSHUKDSVDURXQG
RIFDQFHUV6RPHRIWKHVHFDQFHUVPD\EHFDXVHGE\FDUFLQRJHQVLQIRRG
JHQHUDWHGGXULQJFRRNLQJSURFHVVDOWKRXJKLWLVRIWHQGLIILFXOWWRLGHQWLI\
WKH VSHFLILF FRPSRQHQWV LQ GLHW WKDW VHUYH WR LQFUHDVH FDQFHU ULVN 0DQ\
IRRGVXFKDVEHHIVWHDNDQGEURFFROLFRQWDLQORZFRQFHQWUDWLRQVRIERWK
FDUFLQRJHQVDQGDQWLFDUFLQRJHQV:.D5'ROO
2WKHU VWXGLHV VLQFH LQGLFDWH WKDW FRRNLQJ PHDW DW KLJK
WHPSHUDWXUH FUHDWHV KHWHURF\FOLF DPLQHV +&$V ZKLFK DUH WKRXJKW WR
LQFUHDVH FDQFHU ULVN LQ KXPDQV 5HVHDUFKHUV DW WKH 1DWLRQDO &DQFHU
,QVWLWXWHIRXQGWKDWKXPDQVXEMHFWVZKRDWHEHHIUDUHRUPHGLXPUDUHKDG
OHVV WKDQ RQH WKLUG WKH ULVN RI VWRPDFK FDQFHU WKDQ WKRVH ZKR DWH EHHI
PHGLXPZHOORUZHOOGRQH:KLOHHDWLQJPHDWUDZPD\EHWKHRQO\ZD\WR
DYRLG+&$V IXOO\WKH1DWLRQDO&DQFHU,QVWLWXWH VWDWHVWKDWFRRNLQJ PHDW
EHORZ ) & FUHDWHV
QHJOLJLEOH DPRXQWV
RI +&$V $OVR
PLFURZDYLQJ PHDW EHIRUH FRRNLQJ PD\ UHGXFH +&$V E\
1LWURVDPLQHV SUHVHQW LQ SURFHVVHG DQG FRRNHG IRRGV KDYH DOVR EHHQ
QRWHG DV EHLQJ FDUFLQRJHQLF EHLQJ OLQNHG WR FRORQ FDQFHU :. D
1&,
,Q DGGLWLRQ UHVHDUFK KDV VKRZQ WKDW JULOOLQJ EDUEHFXLQJ DQG
VPRNLQJ PHDW DQG ILVK LQFUHDVHV OHYHOV RI FDUFLQRJHQLF 3RO\F\FOLF
DURPDWLF K\GURFDUERQV 3$+ ,Q (XURSH JULOOHG PHDW DQG VPRNHG ILVK
JHQHUDOO\ RQO\ FRQWULEXWH D VPDOO SURSRUWLRQ RI GLHWDU\ 3$+ LQWDNH VLQFH
WKH\DUHDPLQRUFRPSRQHQWRIGLHWPRVWLQWDNHFRPHVIURPFHUHDOVRLOV
DQGIDWV+RZHYHULQWKH86JULOOHGEDUEHFXHGPHDWLVWKHVHFRQGKLJKHVW
FRQWULEXWRU RI WKH PHDQ GDLO\ LQWDNH RI EHQ]R>D@S\UHQH DW DIWHU
EUHDG FHUHDO DQG JUDLQ DW %DNLQJ JULOOLQJ RU EURLOLQJ IRRG
HVSHFLDOO\ VWDUFK\ IRRGV XQWLO D WRDVWHG FUXVW LV IRUPHG JHQHUDWHV
VLJQLILFDQW FRQFHQWUDWLRQV RI DFU\ODPLGH D SRVVLEOH FDUFLQRJHQ :.
D6&)(7DUHNH
G2WKHU+HDOWK,VVXHV
7KHUHDUHDOVRRWKHULVVXHVDERXWKHDOWKDQGFRRNLQJZKLFKDUHKRWO\
GHEDWHGDPRQJWKRVHLQFXOLQDU\DUWDVGLVFXVVHGEHORZ
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
)RULQVWDQFHFRRNLQJGDLU\SURGXFWVPD\UHGXFHDSURWHFWLYHHIIHFW
DJDLQVWFRORQFDQFHU5HVHDUFKHUVDWWKH8QLYHUVLW\RI7RURQWRVXJJHVWWKDW
LQJHVWLQJXQFRRNHGRUXQSDVWHXUL]HGGDLU\SURGXFWVPD\UHGXFHWKHULVN
RIFRORUHFWDOFDQFHU0LFHDQGUDWVIHGXQFRRNHGVXFURVHFDVHLQDQGEHHI
WDOORZ KDG RQHWKLUG WR RQHILIWK WKH LQFLGHQFH RI PLFURDGHQRPDV DV WKH
PLFH DQG UDWV IHG WKH VDPH LQJUHGLHQWV FRRNHG 7KLV FODLP KRZHYHU LV
FRQWHQWLRXV$FFRUGLQJWRWKH)RRGDQG'UXJ$GPLQLVWUDWLRQRIWKH8QLWHG
6WDWHV KHDOWK EHQHILWV FODLPHG E\ UDZ PLON DGYRFDWHV GR QRW H[LVW
7KH
VPDOO TXDQWLWLHV RI DQWLERGLHV LQ PLON DUH QRW DEVRUEHG LQ WKH KXPDQ
LQWHVWLQDO WUDFW
VD\V %DUEDUD ,QJKDP 3K' DVVRFLDWH SURIHVVRU DQG
H[WHQVLRQIRRGVFLHQWLVWDWWKH8QLYHUVLW\RI:LVFRQVLQ0DGLVRQ
7KHUHLV
QRVFLHQWLILFHYLGHQFHWKDWUDZPLONFRQWDLQVDQDQWLDUWKULWLVIDFWRURUWKDW
LWHQKDQFHVUHVLVWDQFHWRRWKHUGLVHDVHV
:.D'&RUSHW
;=KDQJ
2WKHU VWXGLHV VXJJHVWHG WKDW GHHS IULHG IRRG LQ UHVWDXUDQWV PD\
FRQWDLQ KLJK OHYHO RI WUDQV IDW ZKLFK LV NQRZQ WR LQFUHDVH OHYHO RI ORZ
GHQVLW\ OLSRSURWHLQ WKDW PD\ LQFUHDVH ULVN RI KHDUW GLVHDVHV DQG RWKHU
FRQGLWLRQV+RZHYHU PDQ\IDVWIRRGFKDLQVKDYHQRZ VZLWFKHGWRWUDQV
IDWIUHHDOWHUQDWLYHVIRUGHHSIU\LQJ:.D061%&
3UREOHPVZLWKWKH6WXG\RI&RRNLQJDQG+HDOWK
+RZHYHU IRU WKH FULWLFV WKLV VWXG\ RI FRRNLQJ DQG KHDOWK KDV VRPH
PDMRU SUREOHPV &RQVLGHU IRU LOOXVWUDWLRQ D IHZ H[DPSOHV EHORZ DV
VXPPDUL]HGLQ7DEOH
)LUVWO\RQH PDLQFULWLFLVPRIWKHVWXG\RIFRRNLQJDQGKHDOWKLVWKDW
FRRNLQJ GRHV QRW QHFHVVDULO\ VXFFHHG LQ NLOOLQJ EDFWHULD WR HQVXUH IRRG
VDIHW\
)RU H[DPSOH IRU WKH FULWLFV WKH VWHULOL]LQJ HIIHFW RI FRRNLQJ ZLOO
GHSHQGRQWHPSHUDWXUHFRRNLQJWLPHDQGWHFKQLTXHXVHG+RZHYHUVRPH
EDFWHULDVXFKDV&ORVWULGLXPERWXOLQXPRU%DFLOOXVFHUHXVFDQIRUPVSRUHV
WKDWVXUYLYHFRRNLQJZKLFKWKHQJHUPLQDWHDQGUHJURZDIWHUWKHIRRGKDV
FRROHG:.D)6*
6HFRQGO\ DQRWKHU PDLQ FULWLFLVP RI WKH VWXG\ RI FRRNLQJ DQG KHDOWK
LVWKDWUHVHDUFKUHVXOWVFDQEHLQFRQFOXVLYH
)RU LQVWDQFH IRU WKH FULWLFV DOWKRXJK VRPH UHFRPPHQGHG WKDW IRRG
SUHSDUHG RQ SODVWLF FXWWLQJ ERDUGV PD\ EH OHVV OLNHO\ WR KDUERU EDFWHULD
WKDQZRRGHQRQHVWKHUHDUHRWKHUUHVHDUFKZKLFKKRZHYHUVXJJHVWHG
RWKHUZLVH:.D5*
$QGWKLUGO\VWLOODQRWKHU PDLQFULWLFLVPRIWKH VWXG\RIFRRNLQJDQG
KHDOWKLVWKDWUHVHDUFKUHVXOWVFDQEHLQFRQVLVWHQW
&KDSWHU7HFKQLTXHVDQGWKHLU'XDO6LGHV
)RU LQVWDQFH RQ WKH RQH KDQG VRPH UHVHDUFK UHVXOWV VKRZHG WKDW
FRRNLQJ ZLWK KHDW LV KHDOWK\ EHFDXVH KHDW LV XVHG LQ WKH SUHSDUDWLRQ RI
IRRGLQRUGHUWRNLOORULQDFWLYDWHSRWHQWLDOO\KDUPIXORUJDQLVPVVXFKDV
EDFWHULD DQG YLUXVHV DV ZHOO DV YDULRXV SDUDVLWHV VXFK DV WDSHZRUPV DQG
7R[RSODVPDJRQGLL:.D
2Q WKH RWKHU KDQG RWKHU UHVHDUFK UHVXOWV VKRZHG WKDW FRRNLQJ ZLWK
KHDWLVXQKHDOWK\EHFDXVHRWKHUVWXGLHVVLQFHLQGLFDWHWKDWFRRNLQJ
PHDW DW KLJK WHPSHUDWXUH FUHDWHV KHWHURF\FOLF DPLQHV +&$V ZKLFK DUH
WKRXJKWWRLQFUHDVHFDQFHUULVNLQKXPDQV:.D1&,
%H\RQG&RRNLQJDQG+HDOWK
7KHVHFULWLFLVPVRIFRRNLQJDQGKHDOOWKKRZHYHUDUHQRWVXSSRVHGWR
PHDQ D WRWDO UHMHFWLRQ RI WKH XVHIXOQHVV RI FRRNLQJ EXW VHUYH WR VKRZ XV
WKH WZR RSSRVLQJ VLGHV RI WKH GHEDWH VXFK WKDW WKH SRVVLELOLW\ RU
LPSRVVLELOLW\ DQG GHVLUDELOLW\ RU XQGHVLUDELOLW\ RI WHFKQLTXHV IURP WKH
SHUVSHFWLYH RI WKH PLQG ZLWK WHFKQLTXHV FRRNLQJ DQG KHDOWK DV D FDVH
VWXG\KHUHDUHQRWWRWKHH[WHQWWKDWWKHUHVSHFWLYHGHIHQGHUVZRXOGOLNHXV
WREHOLHYH
%HVLGHV WKH DQDO\VLV RI WHFKQLTXHV FRRNLQJ DQG KHDOWK FDQ FDVW D
EULJKW OLJKW RQ WKH QDWXUH RI WKH RQWRORJLFDO SULQFLSOHV LQ H[LVWHQWLDO
GLDOHFWLFV DQG JRRG H[DPSOHV LQFOXGH WKH IRUPDOQHVVLQIRUPDOQHVV
SULQFLSOH WKH DEVROXWHQHVVUHODWLYHQHVV SULQFLSOH WKH SDUWLDOLW\WRWDOLW\
SULQFLSOH WKH SUHGLFWDELOLW\XQSUHGLFWDELOLW\ SULQFLSOH WKH H[SOLFDELOLW\
LQH[SOLFDELOLW\ SULQFLSOH WKH ILFWLRQUHDOLW\ SULQFLSOH WKH ILQLWHQHVV
WUDQVILQLWHQHVV SULQFLSOH WKH SUHFLVHQHVVYDJXHQHVV SULQFLSOH WKH
VLPSOHQHVVFRPSOLFDWHGQHVV SULQFLSOH WKH RSHQQHVVKLGGHQQHVV SULQFLSOH
WKH GHQVHQHVVHPSWLQHVV SULQFLSOH WKH FKDQJHFRQVWDQF\ SULQFLSOH WKH
RUGHUFKDRV SULQFLSOH WKH VORZQHVVTXLFNQHVV SULQFLSOH WKH H[SDQVLRQ
FRQWUDFWLRQ SULQFLSOH WKH WKHRU\SUD[LV SULQFLSOH WKH FRQYHQWLRQQRYHOW\
SULQFLSOH WKH HYROXWLRQWUDQVIRUPDWLRQ SULQFLSOH WKH V\PPHWU\
DV\PPHWU\ SULQFLSOH WKH VRIWQHVVKDUGQHVV SULQFLSOH WKH VHULRXVQHVV
SOD\IXOQHVV SULQFLSOH WKH DFWLYHQHVVLQDFWLYHVV SULQFLSOH WKH VHOIQHVV
RWKHUQHVV SULQFLSOH WKH UHJUHVVLRQSURJUHVVLRQ SULQFLSOH WKH VDPH
GLIIHUHQFHSULQFLSOHWKHVWDELOLW\UHDFWLRQSULQFLSOHDQGWKHIXQFWLRQDOLW\
QRQIXQFWLRQDOLW\SULQFLSOH
)RU LQVWDQFH LQ UHODWLRQ WR WKH IRUPDOQHVVLQIRUPDOQHVV SULQFLSOH LI
WKHUH LV IRUPDOQHVV HJ WKH IRUPDO ORJLFDO UHTXLUHPHQW RI FRQVLVWHQF\
VRXQGQHVV DQG FRPSOHWHQHVV LQ D V\VWHP RI LGHDV DV LQ WKH VWXG\ RQ
FRRNLQJDQGKHDOWKWKHUHLVLQIRUPDOQHVVHJWKHQRQIRUPDOH[LVWHQFH
RI LQFRQVLVWHQF\ XQVRXQGQHVV DQG LQFRPSOHWHQHVV LQ WKH VWXG\ RQ
FRRNLQJ DQG KHDOWK DV VKRZQ LQ WKH FULWLFLVPV WKDW FRRNLQJ GRHV QRW
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
QHFHVVDULO\VXFFHHGLQNLOOLQJEDFWHULDWRHQVXUHIRRGVDIHW\WKDWUHVHDUFK
UHVXOWVFDQEHLQFRQFOXVLYHWKDWUHVHDUFKUHVXOWVFDQEHLQFRQVLVWHQWHWF
$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH DEVROXWHQHVVUHODWLYHQHVV SULQFLSOH LI WKHUH LV
DEVROXWHQHVVHJWKHDEVROXWHYLHZRIUDZIRRGLVWVWKDWFRRNLQJZLWKKHDW
FDQNLOORULQDFWLYDWHSRWHQWLDOO\KDUPIXORUJDQLVPVVXFKDVEDFWHULDDQG
YLUXVHV DV ZHOO DV YDULRXV SDUDVLWHV VXFK DV WDSHZRUPV DQG 7R[RSODVPD
JRQGLL WKHUH LV UHODWLYHQHVV HJ ZKDW LV ULJKW IRU UDZ IRRGLVWV LV QRW
QHFHVVDULO\ VR IRU WKH FULWLFV ZKR VXJJHVWHG WKDW VRPH EDFWHULD VXFK DV
&ORVWULGLXP ERWXOLQXP RU %DFLOOXV FHUHXV FDQ IRUP VSRUHV WKDW VXUYLYH
FRRNLQJ ZKLFK WKHQ JHUPLQDWH DQG UHJURZ DIWHU WKH IRRG KDV FRROHG
$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHSDUWLDOLW\WRWDOLW\SULQFLSOHLIWKHUHLVSDUWLDOLW\HJ
WKHSDUWLDOYLHZRIUDZIRRGLVWVLQUHJDUGWRFRRNLQJWKHUHLVWRWDOLW\HJ
WKHPRUHKROLVWLFYLHZRIFRRNLQJVXFKWKDWWKHZKROHLVQRWWKHVXPRILWV
SDUWV WKDW LV LW FDQQRW EH UHGXFHG WR WKH VXP RI RSSRVLQJ YLHZV RI UDZ
IRRGLVPDQGWKHLUFULWLFVVLQFHWKHUHZLOOHPHUJHQHZYLHZVLQWKHIXWXUH
QRW \HW NQRZQ WRGD\ MXVW DV WKHUH DUH DOUHDG\ FULWLFLVPV DJDLQVW ERWK RI
WKHPQRZDGD\V$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH SUHGLFWDELOLW\XQSUHGLFWDELOLW\ SULQFLSOH LI WKHUH LV
SUHGLFWDELOLW\ HJ WKH SUHGLFWDEOH WHQGHQF\ RI WKRVH IRU UDZ IRRGLVP WR
DUJXH WKDW FRRNLQJ IRRG LQFUHDVHV WKH ULVN RI VRPH RI WKH GHWULPHQWDO
HIIHFWV RQ IRRG RU KHDOWK WKHUH LV XQSUHGLFWDELOLW\ HJ WKH PRUH
GLIILFXOW WDVN WR SUHGLFW H[DFWO\ WKH H[WHQW WR ZKLFK UDZ IRRGLVP ZLOO
UHPDLQLQIOXHQWLDOLQDSDUWLFXODUIXWXUHKLVWRULFDOHUDVLQFHWKHUHDUHRWKHU
VWXGLHV ZKLFK VKRZHG WKDW KHDW LV XVHG LQ WKH SUHSDUDWLRQ RI IRRG LQ
RUGHUWRNLOORULQDFWLYDWHSRWHQWLDOO\KDUPIXORUJDQLVPVVXFKDVEDFWHULD
DQG YLUXVHV DV ZHOO DV YDULRXV SDUDVLWHV VXFK DV WDSHZRUPV DQG
7R[RSODVPDJRQGLL$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH H[SOLFDELOLW\LQH[SOLFDELOLW\ SULQFLSOH LI WKHUH LV
H[SOLFDELOLW\ HJ WKH H[SODQDWLRQ E\ WKH DGYRFDWHV RI FRRNLQJ WKDW
FRRNLQJ ZLWK KHDW LV KHDOWK\ EHFDXVH KHDW LV XVHG LQ WKH SUHSDUDWLRQ RI
IRRGLQRUGHUWRNLOORULQDFWLYDWHSRWHQWLDOO\KDUPIXORUJDQLVPVVXFKDV
EDFWHULD DQG YLUXVHV DV ZHOO DV YDULRXV SDUDVLWHV VXFK DV WDSHZRUPV DQG
7R[RSODVPD JRQGLL WKHUH LV LQH[SOLFDELOLW\ HJ WKH ODFN RI VXIILFLHQW
H[SODQDWLRQ E\ WKH DGYRFDWHV RI FRRNLQJ RI ZK\ FRRNLQJ ZLWK KHDW LV
QHFHVVDULO\ KHDOWK\ EHFDXVH IRU WKH FULWLFV RWKHU VWXGLHV VLQFH
LQGLFDWH WKDW FRRNLQJ PHDW DW KLJK WHPSHUDWXUH FUHDWHV KHWHURF\FOLF
DPLQHV >+&$V@ ZKLFK DUH WKRXJKW WR LQFUHDVH FDQFHU ULVN LQ KXPDQV
$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
&KDSWHU7HFKQLTXHVDQGWKHLU'XDO6LGHV
,Q UHODWLRQ WR WKH ILFWLRQUHDOLW\ SULQFLSOH LI WKHUH LV ILFWLRQ HJ WKH
ILFWLRQDO DVSHFW RI UDZ IRRGLVP LQVRIDU DV D GLIIHUHQW UHVHDUFK XVLQJ DQ
DUWLILFLDO JXW KDV VKRZQ WKDW LQ WKH VSHFLILF FDVH RI FDURWHQRLGV D JUHDWHU
SURSRUWLRQ LV DEVRUEHG IURP FRRNHG YHJHWDEOHV WKDQ IURP UDZ
YHJHWDEOHV WKHUH LV UHDOLW\ HJ WKH UHDOLVWLF DVSHFW RI UDZ IRRGLVP
LQVRIDUDVWKHFRRNLQJRIYHJHWDEOHVDQGIUXLWFRQWDLQLQJYLWDPLQ&ERWK
HOXWHVWKHYLWDPLQLQWRWKHFRRNLQJZDWHUDQGGHJUDGHVWKHYLWDPLQWKURXJK
R[LGDWLRQ$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH ILQLWHQHVVWUDQVILQLWHQHVV SULQFLSOH LI WKHUH LV
ILQLWHQHVV HJ WKH ILQLWH QXPEHU RI WKH FDWHJRULHV RI EDFWHULD IRXQG LQ
IRRGOLNHSDWKRJHQLFVWUDLQVRI(VFKHULFKLDFROL6DOPRQHOODW\SKLPXULXP
DQG &DPS\OREDFWHU YLUXVHV VXFK DV QRURYLUXVHV DQG SURWR]RD VXFK DV
(QWDPRHED KLVWRO\WLFD WKHUH LV WUDQVILQLWHQHVV HJ WKH WUDQVILQLWH
QXPEHURIDOOWKHLQGLYLGXDOEDFWHULDHYHUIRXQGLQWKHKLVWRU\RIIRRGOLNH
SDWKRJHQLF VWUDLQV RI (VFKHULFKLD FROL 6DOPRQHOOD W\SKLPXULXP DQG
&DPS\OREDFWHU YLUXVHV VXFK DV QRURYLUXVHV DQG SURWR]RD VXFK DV
(QWDPRHEDKLVWRO\WLFDHWF$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH SUHFLVHQHVVYDJXHQHVV SULQFLSOH LI WKHUH LV
SUHFLVHQHVV HJ WKH SUHFLVH LGHQWLILFDWLRQ RI PDMRU LVVXHV ZKLFK DUH
KRWO\ GHEDWHG LQ FXOLQDU\ DUW DV FLWHG LQ WKH DUWLFOH WKHUH LV YDJXHQHVV
HJ WKH YDJXHQHVV LQ WKH LGHQWLILFDWLRQ RI WKH PDMRU LVVXHV ZKLFK DUH
KRWO\GHEDWHGLQFXOLQDU\DUWDVFLWHGLQWKHDUWLFOHVLQFHLWLVQRWFOHDUZK\
WKHUH PXVW EH RQO\ LVVXHV QRW DQG VR RQ $QG WKH UHYHUVH
GLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH VLPSOHQHVVFRPSOLFDWHGQHVV SULQFLSOH LI WKHUH LV
VLPSOHQHVV HJ WKH UHODWLYHO\ VLPSOH DQDO\VLV RI FRRNLQJ DQG KHDOWK E\
WKH DGYRFDWHV WKHUH LV FRPSOLFDWHGQHVV HJ WKH UHODWLYHO\ PRUH
FRPSOLFDWHGDQDO\VLVRIFRRNLQJDQGKHDOWKE\FKDOOHQJLQJWKHFODLPVDQG
DVVXPSWLRQVDVVKRZQLQWKHSUREOHPVSRLQWHGRXWE\WKHFULWLFVDVFLWHG
$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHRSHQQHVVKLGGHQQHVVSULQFLSOHLIWKHUH LVRSHQQHVV
HJWKHRSHQH[SORUDWLRQRIWKHUHODWLRQVKLSEHWZHHQFRRNLQJ ZLWK KHDW
DQGWKHNLOOLQJRIEDFWHULDWKHUHLVKLGGHQQHVVHJWKHKLGGHQQDWXUHRI
VRPHEDFWHULDVXFKWKDWVRPHEDFWHULDVXFKDV&ORVWULGLXPERWXOLQXPRU
%DFLOOXV FHUHXV FDQ KLGH LQ VSRUHV WKDW WKH\ IRUP DQG WKDW VXUYLYH
FRRNLQJ ZKLFK WKHQ JHUPLQDWH DQG UHJURZ DIWHU WKH IRRG KDV FRROHG
$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHGHQVHQHVVHPSWLQHVVSULQFLSOHLIWKHUHLVGHQVHQHVV
HJWKHUHODWLYHO\GHQVHUFRQFHQWUDWLRQRIVWRPDFKFDQFHUVDPRQJWKRVH
ZKR DWH EHHI ZHOOGRQH DFFRUGLQJ WR VRPH UHVHDUFKHUV DW WKH 1DWLRQDO
&DQFHU ,QVWLWXWH WKHUH LV HPSWLQHVV HJ WKH UHODWLYHO\ OHVV GHQVH RU
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
PRUHHPSW\FRQFHQWUDWLRQRIVWRPDFKFDQFHUVDPRQJWKRVHZKRDWHEHHI
UDUH RU PHGLXPUDUH DFFRUGLQJ WR VRPH UHVHDUFKHUV DW WKH 1DWLRQDO
&DQFHU,QVWLWXWH$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHFKDQJHFRQVWDQF\SULQFLSOHLIWKHUHLVFKDQJHHJ
WKH HYHU QHZ ZD\V WR VWXG\ KXPDQ KHDOWK DV VKRZQ LQ WKH VWXG\ RQ
FRRNLQJDQGKHDOWKWKHUHLVFRQVWDQF\HJWKHHYHUFRQVWDQWH[LVWHQFHRI
GLIIHUHQWSUREOHPVLQWKHHYHUQHZZD\VWRVWXG\KXPDQKHDOWKDVVKRZQ
LQWKHSUREOHPV ZLWKWKHVWXG\RQFRRNLQJDQGKHDOWKSRLQWHGRXWE\WKH
FULWLFV$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHRUGHUFKDRVSULQFLSOHLIWKHUHLVRUGHUHJWKHPRUH
RU OHVV RUGHUO\ DSSHDUDQFH RI FRRNLQJ DQG KHDOWK LI ORRNHG IURP WKH
YDQWDJH SRLQW RI WKH DGYRFDWHV RI FRRNLQJ DQG KHDOWK LQ WKDW KHDWFDQ
NLOO RU LQDFWLYDWH SRWHQWLDOO\ KDUPIXO RUJDQLVPV VXFK DV EDFWHULD DQG
YLUXVHV DV ZHOO DV YDULRXV SDUDVLWHV VXFK DV WDSHZRUPV DQG 7R[RSODVPD
JRQGLL WKHUH LV FKDRV HJ WKH PRUH RU OHVV FKDRWLF DSSHDUDQFH RI
FRRNLQJ DQG KHDOWK LI ORRNHG IURP WKH YDQWDJH SRLQWV RI GLIIHUHQW
FRQIOLFWLQJ VWXGLHV VXFK WKDW PDQ\ RI WKHVH UHVHDUFK UHVXOWV FDQ EH
LQFRQFOXVLYHLQFRQVLVWHQWHWF$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH VORZQHVVTXLFNQHVV SULQFLSOH LI WKHUH LV VORZQHVV
HJ WKH UHODWLYHO\ VORZHU VSHHG RI SRLVRQLQJ WR RFFXU LQ UHG EHDQV LI
WKH\ DUH FRRNHG ZLWK VORZ FRRNHU WKHUH LV TXLFNQHVV HJ WKH
UHODWLYHO\TXLFNHU VSHHGRISRLVRQLQJ WRRFFXULQ NLGQH\ EHDQVLIWKH\
DUH HDWHQ UDZ RU LPSURSHUO\ FRRNHG GXH WR WKH SUHVHQFH RI
SK\WRKDHPDJJOXWLQLQ ZKLFK FDQ EH LQDFWLYDWHG DIWHU FRRNLQJ IRU DW OHDVW
WHQPLQXWHVDW&$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHH[SDQVLRQFRQWUDFWLRQSULQFLSOHLIWKHUHLVH[SDQVLRQ
HJ WKH UHODWLYH H[SDQVLRQ RI VRPH EDFWHULD VXFK DV &ORVWULGLXP
ERWXOLQXP RU %DFLOOXV FHUHXV ZKHQ WKH\ FDQ IRUP VSRUHV WKDW VXUYLYH
FRRNLQJ ZKLFK WKHQ JHUPLQDWH DQG UHJURZ DIWHU WKH IRRG KDV FRROHG
WKHUH LV FRQWUDFWLRQ HJ WKH UHODWLYH GHFOLQH RI VRPH EDFWHULD DQG
YLUXVHV DV ZHOO DV YDULRXV SDUDVLWHV VXFK DV WDSHZRUPV DQG 7R[RSODVPD
JRQGLL LQ IRRG ZKHQ FRRNHG ZLWK KHDW $QG WKH UHYHUVH GLUHFWLRQ DOVR
KROGVWUXH
,Q UHODWLRQ WR WKH WKHRU\SUD[LV SULQFLSOH LI WKHUH LV WKHRU\ HJ WKH
WKHRUHWLFDOFRQVWUXFWLRQRIHYROXWLRQLQELRORJ\WKHUHLVSUD[LVHJWKH
SUDFWLFDODSSOLFDWLRQRIHYROXWLRQLQELRORJ\WRWKHILHOGRIIRRGVFLHQFH
OLNHWKHFODLPWKDWSUHSDULQJIRRGZLWKKHDWRUILUHLVDQDFWLYLW\XQLTXHWR
KXPDQV DQG VRPH VFLHQWLVWV EHOLHYH WKH DGYHQW RI FRRNLQJ SOD\HG DQ
LPSRUWDQW UROH LQ KXPDQ HYROXWLRQ :. D & 'HOO
$PRUH
$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
&KDSWHU7HFKQLTXHVDQGWKHLU'XDO6LGHV
,QUHODWLRQWRWKHFRQYHQWLRQQRYHOW\SULQFLSOHLIWKHUHLVFRQYHQWLRQ
HJ WKH FRQYHQWLRQDO ZLVGRP RI PRVW DQWKURSRORJLVWV ZKR EHOLHYH
WKDW FRRNLQJ ILUHV EHJDQ RQO\ DERXW \HDUV DJR ZKHQ KHDUWKV
VWDUWHG DSSHDULQJ WKHUH LV QRYHOW\ HJ WKH DOWHUQDWLYH QRYHO FKDOOHQJH
WR WKH FRQYHQWLRQDO ZLVGRP DERXW PRVW DQWKURSRORJLVWV ZKR EHOLHYH
WKDWFRRNLQJILUHVEHJDQRQO\DERXW\HDUVDJRE\WKHQHZLGHDRI
&KULV 2UJDQ &KDUOHV 1XQQ =DULQ 0DFKDQGD DQG 5LFKDUG :UDQJKDP
ZKR VXJJHVW WKDW FRRNLQJ PD\ KDYH EHHQ LQYHQWHG DV IDU EDFN DV
PLOOLRQWR PLOOLRQ \HDUVDJR:.D&2UJDQ $QGWKH
UHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH HYROXWLRQWUDQVIRUPDWLRQ SULQFLSOH LI WKHUH LV
HYROXWLRQ HJ WKH QDWXUDO HYROXWLRQ RI KXPDQV WR HDW ZLOG SODQWV LQ WKH
VWDWH RI QDWXUH LQ D SULPLWLYH ZD\ WKHUH LV WUDQVIRUPDWLRQ HJ WKH
WHFKQLFDO WUDQVIRUPDWLRQ RI KXPDQ DELOLW\ WR HDW E\ WKH LQYHQWLRQ RI
FRRNLQJ ZKLFK ZDV ODWHU IXUWKHU DGYDQFHG ZLWK WKH GHYHORSPHQW RI
DJULFXOWXUHFRPPHUFHDQGWUDQVSRUWDWLRQEHWZHHQFLYLOL]DWLRQVLQGLIIHUHQW
UHJLRQV$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHV\PPHWU\DV\PPHWU\SULQFLSOHLIWKHUHLVV\PPHWU\
HJWKHH[LVWHQFHRIGLIIHUHQW IRUPVRILQWHOOLJHQW OLIHOLNHEDFWHULDDQG
KXPDQV WKHUH LV DV\PPHWU\ HJ KXPDQV FDQ NLOO PRUH EDFWHULD WKDQ
EDFWHULDFDQNLOOKXPDQVLQWHUPVRIDEVROXWH QXPEHUV$QGWKHUHYHUVH
GLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHVRIWQHVVKDUGQHVVSULQFLSOHLIWKHUHLVVRIWQHVVHJ
WKH DSSUHFLDWLRQ RI FRRNLQJ EHFDXVH RI WKH FRQFHUQ ZLWK IRRG VDIHW\
WKHUHLVKDUGQHVVHJWKHFULWLTXHRIFRRNLQJEHFDXVHRIWKHFRQFHUQZLWK
FDQFHUULVN$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH VHULRXVQHVVSOD\IXOQHVV SULQFLSOH LI WKHUH LV
VHULRXVQHVVHJWKHVHULRXV EXVLQHVVRIWKRVH ZKRWU\WR XQGHUVWDQGWKH
UHODWLRQVKLSV EHWZHHQ FRRNLQJ DQG KHDOWK WKHUH LV SOD\IXOQHVV HJ WKH
SOD\IXO SDUW RI WKRVH ZKR WU\ WR XQGHUVWDQG WKH UHODWLRQVKLSV EHWZHHQ
FRRNLQJDQGKHDOWKZKHQWKH\SOD\DURXQGZLWKGLIIHUHQWUHVHDUFKVWXGLHV
ZKLFK FDQ EH LQFRQOXVLYH DQG LQFRQVLVWHQW ZLWK HDFK RWKHU $QG WKH
UHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHDFWLYHQHVVLQDFWLYHVVSULQFLSOHLIWKHUHLVDFWLYHQHVV
HJ WKH DFWLYHQHVV RI WKRVH EDFWHULD WR FDXVH SRLVRQLQJ LQ IRRG ZKHQ
WKH\VXUYLYHFRRNLQJWKHUHLVLQDFWLYHQHVVHJWKHUHODWLYHLQDFWLYHQHVV
RIWKRVHEDFWHULDWRFDXVHSRLVRQLQJLQIRRGZKHQWKH\DUHGDPDJHGRUGLH
GXHWRWKHKHDWRIFRRNLQJ
,QUHODWLRQWRWKHVHOIQHVVRWKHUQHVVSULQFLSOHLIWKHUHLVVHOIQHVVHJ
WKH WHQGHQF\ WR EH PRVWO\ FHQWHUHG RQ RQHV VHOI RU JURXS DV VKRZQ LQ
SDUDVLWHVZKLFKFDQEHLQWURGXFHGWKURXJKVDODGPHDWWKDWLVXQFRRNHG
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7HFKQLTXHVDQG1DWXUH
7HFKQLTXHVZKHQH[DPLQHGIURPWKHSHUVSHFWLYHRIQDWXUHFDQVKRZ
XV WKHLU SRVVLELOLW\ RU LPSRVVLELOLW\ DQG GHVLUDELOLW\ RU XQGHVLUDELOLW\
DQG WKLV FDQ EH VKRZQ E\ ZD\ RI WZR FDVH VWXGLHV QDPHO\
&KDSWHU7HFKQLTXHVDQGWKHLU'XDO6LGHV
7HFKQLTXHV0ROHFXODU*DVWURQRP\DQG)RRG3DLULQJ
$ JRRG ZD\ WR HYDOXDWH WKH SRVVLELOLW\ RU LPSRVVLELOLW\ DQG
GHVLUDELOLW\RUXQGHVLUDELOLW\RIWHFKQLTXHVIURPWKHSHUVSHFWLYHRIQDWXUH
LVWRH[SORUHWHFKQLTXHVPROHFXODUJDVWURQRP\DQGIRRGSDLULQJ
7KH WHUP PROHFXODU JDVWURQRP\ UHIHUV WR D VXEGLVFLSOLQH RI IRRG
VFLHQFH WKDW VHHNV WR LQYHVWLJDWH H[SODLQ DQG PDNH SUDFWLFDO XVH RI WKH
SK\VLFDO DQG FKHPLFDO WUDQVIRUPDWLRQV RI LQJUHGLHQWV WKDW RFFXU ZKLOH
FRRNLQJ DV ZHOO DV WKH VRFLDO DUWLVWLF DQG WHFKQLFDO FRPSRQHQWV RI
FXOLQDU\DQGJDVWURQRPLFSKHQRPHQDLQJHQHUDO0ROHFXODUJDVWURQRP\LV
DPRGHUQVW\OHRIFRRNLQJZKLFKLVSUDFWLFHGE\ERWKVFLHQWLVWVDQGIRRG
SURIHVVLRQDOVLQPDQ\SURIHVVLRQDONLWFKHQVDQGODEVDQGWDNHVDGYDQWDJH
RI PDQ\ WHFKQLFDO LQQRYDWLRQV IURP WKH VFLHQWLILF GLVFLSOLQHV :.
FF+7KLV
+LVWRU\RI0ROHFXODU*DVWURQRP\
+LVWRULFDOO\XQWLOWKHDGYHQWRIPROHFXODUJDVWURQRP\WKHUHZDVQR
IRUPDOVFLHQWLILFGLVFLSOLQHGHGLFDWHGWRVWXG\LQJWKHSURFHVVHVLQUHJXODU
FRRNLQJDVGRQHLQWKHKRPHRULQDUHVWDXUDQW7KHDIRUHPHQWLRQHGKDYH
PRVWO\ EHHQ FRQFHUQHG ZLWK LQGXVWULDO IRRG SURGXFWLRQ DQG ZKLOH WKH
GLVFLSOLQHV PD\ RYHUODS ZLWK HDFK RWKHU WR YDU\LQJ GHJUHHV WKH\ DUH
FRQVLGHUHGVHSDUDWHDUHDVRILQYHVWLJDWLRQ:.FF
7KLV LV VR HYHQ WKRXJK PDQ\ GLVSDUDWH H[DPSOHV RI WKH VFLHQWLILF
LQYHVWLJDWLRQRIFRRNLQJH[LVWWKURXJKRXWKLVWRU\EXWWKHFUHDWLRQRIWKH
GLVFLSOLQH RI PROHFXODU JDVWURQRP\ ZDV LQWHQGHG WR EULQJ WRJHWKHU ZKDW
KDG SUHYLRXVO\ EHHQ IUDJPHQWHG DQG LVRODWHG LQYHVWLJDWLRQ LQWR WKH
FKHPLFDO DQG SK\VLFDO SURFHVVHV RI FRRNLQJ LQWR DQ RUJDQL]HG GLVFLSOLQH
ZLWKLQ IRRG VFLHQFH WR DGGUHVV ZKDW WKH RWKHU GLVFLSOLQHV ZLWKLQ IRRG
VFLHQFH HLWKHU GR QRW FRYHU RU FRYHU LQ D PDQQHU LQWHQGHG IRU VFLHQWLVWV
UDWKHUWKDQFRRNV7KHVHPHUHLQYHVWLJDWLRQVLQWRWKHVFLHQWLILFSURFHVVRI
FRRNLQJ KDYH XQLQWHQWLRQDOO\ HYROYHG LQWR D UHYROXWLRQDU\ HSLFXUHDQ
SUDFWLFHWKDWLVQRZSURPLQHQWLQWRGD\
VFXOLQDU\ZRUOG:.FF
,Q WKH WHUP
0ROHFXODU DQG 3K\VLFDO *DVWURQRP\
ZDV
FRLQHGE\ +XQJDULDQ SK\VLFLVW 1LFKRODV .XUWL DQG )UHQFK SK\VLFDO
FKHPLVW +HUYp 7KLV ,W EHFDPH WKH WLWOH IRU D VHW RI ZRUNVKRSV KHOG LQ
(ULFH ,WDO\WKDW EURXJKW WRJHWKHU VFLHQWLVWV DQG SURIHVVLRQDO FRRNV IRU
GLVFXVVLRQV RQ WKH VFLHQFH EHKLQG WUDGLWLRQDO FRRNLQJ SUHSDUDWLRQV
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
&KDSWHU7HFKQLTXHVDQGWKHLU'XDO6LGHV
UHYLVHGWKHSULPDU\REMHFWLYHVRIPROHFXODUJDVWURQRP\DQGWKHFXUUHQW
REMHFWLYHVDUHWKUHHPDMRURQHVDVVKRZQEHORZ:.FF
WKHVRFLDOSKHQRPHQDOLQNHGWRFXOLQDU\DFWLYLW\
WKHDUWLVWLFFRPSRQHQWRIFXOLQDU\DFWLYLW\
WKHWHFKQLFDOFRPSRQHQWRIFXOLQDU\DFWLYLW\
2IFRXUVHWKHVHFXUUHQWREMHFWLYHVPD\QRWUHPDLQDVWKH\QRZDUHLQWKH
GLVWDQWIXWXUH
,QDQ\HYHQWJRRGH[DPSOHVRIWKHDUHDVRILQYHVWLJDWLRQLQPROHFXODU
JDVWURQRP\DUHVKRZQEHORZ:.FF',6
+RZLQJUHGLHQWVDUHFKDQJHGE\GLIIHUHQWFRRNLQJPHWKRGV
+RZDOOWKHVHQVHVSOD\WKHLURZQUROHVLQRXUDSSUHFLDWLRQRIIRRG
+RZWKHPHFKDQLVPVRIDURPDUHOHDVHDQGWKHSHUFHSWLRQRIWDVWHDQG
IODYRUZRUN
+RZDQGZK\ZHHYROYHGRXUSDUWLFXODUWDVWHDQGIODYRUVHQVHRUJDQV
DQGRXUJHQHUDOIRRGOLNHVDQGGLVOLNHV
+RZFRRNLQJPHWKRGVDIIHFWWKHHYHQWXDOIODYRUDQGWH[WXUHRIIRRG
LQJUHGLHQWV
+RZ QHZ FRRNLQJ PHWKRGV PLJKW SURGXFH LPSURYHG UHVXOWV RI
WH[WXUHDQGIODYRU
+RZRXUEUDLQVLQWHUSUHWWKHVLJQDOVIURPDOORXUVHQVHVWRWHOOXVWKH
IODYRU
RIIRRG
+RZ RXU HQMR\PHQW RI IRRG LV DIIHFWHG E\ RWKHU LQIOXHQFHV RXU
HQYLURQPHQWRXUPRRGKRZLWLVSUHVHQWHGZKRSUHSDUHVLWHWF
3HUKDSVDJRRGFDVHVWXG\RIPROHFXODUJDVWURQRP\LQDFWLRQFRQFHUQVWKH
LVVXH RI DURPD FRPSRXQGV LQ IRRG DV LQ IRRG SDLULQJ DV GLVFXVVHG
EHORZ
&DVH6WXG\)RRG3DLULQJDQGLWV0HWKRGRORJ\
7KH FDVH VWXG\ RI IRRG SDLULQJ LV DERXW D PHWKRG IRU LGHQWLI\LQJ
ZKLFK IRRGV JR ZHOO WRJHWKHU 7KH PHWKRG LV EDVHG RQ WKH SULQFLSOH WKDW
IRRGV FRPELQH ZHOO ZLWK RQH DQRWKHU ZKHQ WKH\ VKDUH NH\ IODYRU
FRPSRQHQWV)RRGSDLULQJLVDUHODWLYHO\QHZPHWKRGDQGLVRIWHQFRQIXVHG
ZLWK
ZLQHDQGIRRGSDLULQJ
ZKLFKLVWKHSUDFWLFHRIPDWFKLQJZLQHZLWK
IRRG%\FRQWUDVWIRRGSDLULQJXVHV+3/&JDVFKURPDWRJUDSK\DQGRWKHU
ODERUDWRU\PHWKRGVWRDQDO\VHIRRGDQGWRILQGFKHPLFDOFRPSRQHQWVWKDW
WKH\KDYHLQFRPPRQ:.M
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
$V D PHWKRG IRRGSDLULQJ VWDUWV ZLWK DQ DQDO\VLV RI D IRRG 7KH
DURPD FRPSRXQGV DUH GHWHUPLQHG ZLWK WKH DLG RI JDV FKURPDWRJUDSK\
ZKLFK LQ PRVW FDVHV LV FRXSOHG ZLWK D PDVV VSHFWURPHWHU *&06 7KH
RGRUDQWV DUH DOVR TXDQWLILHG ZLWK RWKHU WHFKQLTXHV .H\ RGRUDQWV FDQ EH
LGHQWLILHG E\ FRPSDULQJ WKH FRQFHQWUDWLRQV RI WKH RGRUDQWV ZLWK WKHLU
UHVSHFWLYHIODYRUWKUHVKROG.H\RGRUDQWVDUHWKHFRPSRXQGVWKDWDKXPDQ
ZLOOHIIHFWLYHO\VPHOO7KH\DUHGHILQHGDVHYHU\FRPSRXQGWKDWLVSUHVHQW
LQFRQFHQWUDWLRQVKLJKHUWKDQWKHLUVSHFLILFIODYRUWKUHVKROG)RUH[DPSOH
FRIIHH FRQWDLQV GLIIHUHQW DURPD FRPSRXQGV EXW WKHUH DUH RQO\ D
FRXSOH RI DURPDV LPSRUWDQW IRU WKH VPHOO RI FRIIHH EHFDXVH PRVW RI WKH
DURPDVDUHSUHVHQWLQFRQFHQWUDWLRQVWKDWDUHQRWSHUFHSWLEOHZLWKWKHQRVH
WKH\DUHSUHVHQWLQFRQFHQWUDWLRQVORZHUWKDQWKHLUIODYRUWKUHVKROG:.
M
,Q WKLV ZD\ WKH NH\ RGRUDQWV DUH HVVHQWLDO WR FRPSRVH WKH IODYRU
SURILOHRIWKHJLYHQSURGXFW7KHUHVXOWDQWIODYRUSURILOHLVVFUHHQHGDJDLQVW
D GDWDEDVH RI RWKHU IRRGV 3URGXFWV ZKLFK KDYH IODYRU FRPSRQHQWV LQ
FRPPRQZLWKWKHRULJLQDOLQJUHGLHQWDUHUHWDLQHG7KHVHSURGXFWVFRXOGEH
FRPELQHG ZLWK WKH RULJLQDO LQJUHGLHQW :LWK WKLV LQIRUPDWLRQ D
IRRGSDLULQJ WUHH LV EXLOW 7KH HVVHQFH RI IRRGSDLULQJ LV WKH SUDFWLFH RI
FRPELQLQJGLIIHUHQWIRRGVWKDWVKDUHWKHVDPHPDMRUIODYRUFRPSRQHQWV
:.M
3UREOHPVZLWKWKH6WXG\RI0ROHFXODU*DVWURQRP\DQG)RRG3DLULLQJ
+RZHYHUIRUWKHFULWLFVWKLVVWXG\RIPROHFXODUJDVWURQRP\DQGIRRG
SDLULQJ KDV VRPH PDMRU SUREOHPV &RQVLGHU IRU LOOXVWUDWLRQ D IHZ
H[DPSOHVEHORZ
)LUVWO\RQHPDLQFULWLFLVPRIWKHVWXG\RIIRRGSDLULQJLVWKDWLWGRHV
QRWRIIHUDQ\UHFLSHEDVHGLQJUHGLHQWPDWFKILQGHUV:.M
)RU LQVWDQFH IRU WKH FULWLFV XQOLNH IRRG SDLULQJ LQJUHGLHQW PDWFK
ILQGHUV SURYLGH PDWFKLQJ LQJUHGLHQWV EDVHG RQ WKHLU FRPELQDWLRQ
RFFXUUHQFHLQDYDVWUHFLSHGDWDEDVH:.M
6HFRQGO\DQRWKHUPDLQFULWLFLVPRIWKHVWXG\RIIRRGSDLULQJLVWKDWLW
GRHVQRWRIIHUDQ\QHZFRPELQDWLRQV
)RULQVWDQFHIRUWKHFULWLFVIRRGSDLULQJVLPSO\GRHVQRWRIIHUQHZ
FRPELQDWLRQV DQG D SURSRVHG PDWFK FDQ DOZD\V EH IRXQG LQ DQRWKHU
UHFLSHLQVWHDG:.M
7KLUGO\ VWLOO DQRWKHU PDLQ FULWLFLVP RI WKH VWXG\ RI PROHFXODU
JDVWURQRP\LVWKDWLWIRFXVHVWRRPXFKRQWKHZRUNVRI1LFKRODV.XUWLDQG
+HUYp7KLV
&KDSWHU7HFKQLTXHVDQGWKHLU'XDO6LGHV
)RULQVWDQFHIRUWKHFULWLFVWKHUHDUHRWKHULPSRUWDQWFRQWULEXWRUVWR
WKH ILHOG WRR DQG JRRG H[DPSOHV LQFOXGH (YHO\Q * +DOOLGD\ ,VDEHO 7
1REOH%HOOH/RZH0DULH$QWRLQH&DUrPHDQGRWKHUV:.FF
$QG IRXUWKO\ DQ DGGLWLRQDO PDLQ FULWLFLVP RI WKH VWXG\ RI PROHFXODU
JDVWURQRP\LVWKDWLWVPDLQREMHFWLYHVDUHGHEDWDEOH
)RULQVWDQFHIRUWKHFULWLFVHYHQ+HUYp7KLVKLPVHOIKDGFKDQJHGKLV
RULJLQDOVWLSXODWLRQRIWKHPDMRUREMHFWLYHVRIPROHFXODUJDVWURQRP\LQ
KLV GRFWRUDO GLVVHUWDWLRQ LQ WKH ROGHU GD\V WR WKH FXUUHQW LQVWHDG 2I
FRXUVH WKHVH FXUUHQW REMHFWLYHV PD\ QRW UHPDLQ DV WKH\ QRZ DUH LQ WKH
GLVWDQWIXWXUH
%H\RQG)RRG3DLULQJ
7KHVHFULWLFLVPVRIPROHFXODUJDVWURQRP\DQGIRRGSDLULQJKRZHYHU
VKRXOGQRWEHWDNHQDVDWRWDOUHMHFWLRQRILWVXVHIXOQHVVEXWVHUYHWRVKRZ
XV WKH WZR RSSRVLQJ VLGHV RI WKH GHEDWH VXFK WKDW WKH SRVVLELOLW\ RU
LPSRVVLELOLW\ DQG GHVLUDELOLW\ RU XQGHVLUDELOLW\ RI WHFKQLTXHV IURP WKH
SHUVSHFWLYH RI QDWXUH ZLWK WHFKQLTXHV PROHFXODU JDVWURQRP\ DQG IRRG
SDLULQJ DV D FDVH VWXG\ KHUH DUH QRW WR WKH H[WHQW WKDW WKH UHVSHFWLYH
GHIHQGHUVZRXOGOLNHXVWREHOLHYH
,Q IDFW WKH DQDO\VLV RI WHFKQLTXHV PROHFXODU JDVWURQRP\ DQG IRRG
SDLULQJFDQVKRZXVVRPHWKLQJLPSRUWDQWDERXWWKHRQWRORJLFDOSULQFLSOHV
LQ H[LVWHQWLDO GLDOHFWLFV DQG JRRG H[DPSOHV LQFOXGH WKH IRUPDOQHVV
LQIRUPDOQHVV SULQFLSOH WKH DEVROXWHQHVVUHODWLYHQHVV SULQFLSOH WKH
SDUWLDOLW\WRWDOLW\ SULQFLSOH WKH SUHGLFWDELOLW\XQSUHGLFWDELOLW\ SULQFLSOH
WKH H[SOLFDELOLW\LQH[SOLFDELOLW\ SULQFLSOH WKH ILFWLRQUHDOLW\ SULQFLSOH WKH
ILQLWHQHVVWUDQVILQLWHQHVV SULQFLSOH WKH SUHFLVHQHVVYDJXHQHVV SULQFLSOH
WKH VLPSOHQHVVFRPSOLFDWHGQHVV SULQFLSOH WKH RSHQQHVVKLGGHQQHVV
SULQFLSOH WKH GHQVHQHVVHPSWLQHVV SULQFLSOH WKH FKDQJHFRQVWDQF\
SULQFLSOHWKHRUGHUFKDRVSULQFLSOHWKHVORZQHVVTXLFNQHVVSULQFLSOHWKH
H[SDQVLRQFRQWUDFWLRQ SULQFLSOH WKH WKHRU\SUD[LV SULQFLSOH WKH
FRQYHQWLRQQRYHOW\ SULQFLSOH WKH HYROXWLRQWUDQVIRUPDWLRQ SULQFLSOH WKH
V\PPHWU\DV\PPHWU\ SULQFLSOH WKH VRIWQHVVKDUGQHVV SULQFLSOH WKH
VHULRXVQHVVSOD\IXOQHVV SULQFLSOH WKH DFWLYHQHVVLQDFWLYHVV SULQFLSOH WKH
VHOIQHVVRWKHUQHVV SULQFLSOH WKH UHJUHVVLRQSURJUHVVLRQ SULQFLSOH WKH
VDPHGLIIHUHQFH SULQFLSOH WKH VWDELOLW\UHDFWLRQ SULQFLSOH DQG WKH
IXQFWLRQDOLW\QRQIXQFWLRQDOLW\SULQFLSOH
)RU LQVWDQFH LQ UHODWLRQ WR WKH IRUPDOQHVVLQIRUPDOQHVV SULQFLSOH LI
WKHUH LV IRUPDOQHVV HJ WKH IRUPDO ORJLFDO UHTXLUHPHQW RI FRQVLVWHQF\
VRXQGQHVV DQG FRPSOHWHQHVV LQ D V\VWHP RI LGHDV DV LQ WKH VWXG\ RI
PROHFXODU JDVWURQRP\ DQG IRRG SDLULQJ WKHUH LV LQIRUPDOQHVV HJ WKH
QRQIRUPDO H[LVWHQFH RI LQFRQVLVWHQF\ XQVRXQGQHVV DQG LQFRPSOHWHQHVV
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
LQ WKH VWXG\ RI PROHFXODU JDVWURQRP\ DQG IRRG SDLULQJ DV VKRZQ LQ WKH
FULWLFLVPV WKDW LW GRHV QRW RIIHU DQ\ UHFLSHEDVHG LQJUHGLHQW PDWFK
ILQGHUV WKDW LW GRHV QRW RIIHU DQ\ QHZ FRPELQDWLRQV WKDW LW IRFXVHV WRR
PXFK RQ WKH ZRUNV RI 1LFKRODV .XUWL DQG +HUYp 7KLV WKDW LWV PDLQ
REMHFWLYHVDUHGHEDWDEOHHWF$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH DEVROXWHQHVVUHODWLYHQHVV SULQFLSOH LI WKHUH LV
DEVROXWHQHVV HJ WKH DEVROXWH YLHZ RI WKH RULJLQDO REMHFWLYHV RI
PROHFXODUJDVWURQRP\ZLWKLWVPDMRURQHVDVVXJJHVWHGE\7KLVWKHUH
LVUHODWLYHQHVVHJZKDWLVULJKWIRU7KLVLQWKHROGHUGD\VZKHQKHDWILUVW
VWLSXODWHG WKH REMHFWLYHV RI PROHFXODU JDVWURQRP\ LV QRW QHFHVVDULO\ VR
IRU 7KLV QRZDGD\V ZKHQ KH LQVWHDG VWLSXODWHV RQO\ REMHFWLYHV RI
PROHFXODUJDVWURQRP\$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHSDUWLDOLW\WRWDOLW\SULQFLSOHLIWKHUHLVSDUWLDOLW\HJ
WKH SDUWLDO YLHZ RI PROHFXODU JDVWURQRP\ IURP WKH SHUVSHFWLYH RI .XUWL
DQG 7KLV WKHUH LV WRWDOLW\ HJ WKH PRUH KROLVWLF YLHZ RI PROHFXODU
JDVWURQRP\ VXFK WKDW WKH ZKROH LV QRW WKH VXP RI LWV SDUWV WKDW LV LW
FDQQRW EH UHGXFHG WR WKH VXP RI WKH GLIIHUHQW YLHZV E\ .XUWL 7KLV
+DOOLGD\1REOH/RZH&DUrPHDQGRWKHUVVLQFHWKHUHZLOOHPHUJHQHZ
YLHZV LQ WKH IXWXUH QRW \HW NQRZQ WRGD\ MXVW DV WKHUH DUH DOUHDG\
QRZDGD\V RWKHU YLHZV E\ GLIIHUHQW FULWLFV DJDLQVW WKHP DOO $QG WKH
UHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH SUHGLFWDELOLW\XQSUHGLFWDELOLW\ SULQFLSOH LI WKHUH LV
SUHGLFWDELOLW\HJWKHSUHGLFWDEOHWHQGHQF\RIWKHDGYRFDWHVRIPROHFXODU
JDVWURQRP\ QRZDGD\V WR SXUVXH WKH REMHFWLYHV DV FXUUHQWO\ GHILQHG
WKHUHLVXQSUHGLFWDELOLW\HJWKHPRUHGLIILFXOWWDVNWRSUHGLFWH[DFWO\WKH
H[WHQW WR ZKLFK WKH REMHFWLYHV RI PROHFXODU JDVWURQRP\ DV FXUUHQWO\
GHILQHG ZLOO UHPDLQ LQIOXHQWLDO LQ D SDUWLFXODU IXWXUH KLVWRULFDO HUD VLQFH
WKHROGHUREMHFWLYHVZHUHDOUHDG\FKDQJHGIURPWRWKHFXUUHQWVRLWLV
QRWFOHDULIQHZFKDQJHVZLOOKDSSHQDJDLQLQWKHIXWXUH$QGWKHUHYHUVH
GLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH H[SOLFDELOLW\LQH[SOLFDELOLW\ SULQFLSOH LI WKHUH LV
H[SOLFDELOLW\HJWKHH[SODQDWLRQE\WKHDGYRFDWHVRIIRRGSDLULQJWKDWLW
LVGHVLUDEOHEHFDXVHRILWVDELOLW\WRKHOSXVLGHQWLI\ZKLFKIRRGVJRZHOO
WRJHWKHUWKHUHLVLQH[SOLFDELOLW\HJWKHODFNRI VXIILFLHQWH[SODQDWLRQ
E\ WKH DGYRFDWHV RI IRRG SDLULQJ RI ZK\ LW LV QHFHVVDULO\ GHVLUDEOH
EHFDXVH IRU WKH FULWLFV IRRG SDLULQJ GRHV QRW SURYLGH PDWFKLQJ
LQJUHGLHQWV EDVHG RQ WKHLU FRPELQDWLRQ RFFXUUHQFH LQ D YDVW UHFLSH
GDWDEDVHDQGWKDWLWDOVRGRHVQRWRIIHUDQ\QHZFRPELQDWLRQV$QGWKH
UHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH ILFWLRQUHDOLW\ SULQFLSOH LI WKHUH LV ILFWLRQ HJ WKH
ILFWLRQDO DVSHFW RI PROHFXODU JDVWURQRP\ LQVRIDU DV LWV REMHFWLYHV ZHUH
&KDSWHU7HFKQLTXHVDQGWKHLU'XDO6LGHV
RULJLQDOO\GHILQHGLQWHUPVRIEXWKDYHVLQFHEHHQFKDQJHGWRLQVWHDG
WKHUHLVUHDOLW\HJWKHUHDOLVWLFDVSHFWRIPROHFXODUJDVWURQRP\LQVRIDU
DVLWKDVFHUWDLQREMHFWLYHVDOWKRXJKWKHH[DFWQXPEHULVQRWFHUWDLQ$QG
WKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH ILQLWHQHVVWUDQVILQLWHQHVV SULQFLSOH LI WKHUH LV
ILQLWHQHVVHJWKHILQLWHQXPEHURIWKHFDWHJRULHVRIIODYRUVWKDWKXPDQV
FDQHIIHFWLYHO\VPHOOWKHUHLVWUDQVILQLWHQHVVHJWKHWUDQVILQLWHQXPEHU
RI DOO WKH LQGLYLGXDO DURPD FRPSRXQGV LQ DQ\ FRQFHQWUDWLRQV RI DQ\
IODYRUV LQ KLVWRU\ WKDW KDYH HYHU H[LVWHG $QG WKH UHYHUVH GLUHFWLRQ DOVR
KROGVWUXH
,Q UHODWLRQ WR WKH SUHFLVHQHVVYDJXHQHVV SULQFLSOH LI WKHUH LV
SUHFLVHQHVV HJ WKH SUHFLVH LGHQWLILFDWLRQ RI REMHFWLYHV RI PROHFXODU
JDVWURQRP\ DV RULJLDQOO\ GHILQHG E\ 7KLV WKHUH LV YDJXHQHVV HJ WKH
YDJXHQHVV LQ WKH LGHQWLILFDWLRQ RI WKH REMHFWLYHV RI PROHFXODU
JDVWURQRP\ DV RULJLDQOO\ GHILQHG E\ 7KLV VLQFH LW LV QRW FOHDU ZK\ WKHUH
PXVW EH RQO\ QRW DQG VR RQ VLQFH HYHQ 7KLV KLPVHOI ODWHU
FKDQJHGIURPWRLQVWHDG$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH VLPSOHQHVVFRPSOLFDWHGQHVV SULQFLSOH LI WKHUH LV
VLPSOHQHVV HJ WKH UHODWLYHO\ VLPSOH DQDO\VLV RI IRRG SDLULQJ E\ WKH
DGYRFDWHVWKHUHLVFRPSOLFDWHGQHVVHJWKHUHODWLYHO\PRUHFRPSOLFDWHG
DQDO\VLV RI IRRG SDLULQJ E\ FKDOOHQJLQJ WKH FODLPV DQG DVVXPSWLRQV DV
VKRZQLQWKHSUREOHPVSRLQWHGRXWE\WKHFULWLFVDVFLWHG$QGWKHUHYHUVH
GLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHRSHQQHVVKLGGHQQHVVSULQFLSOHLIWKHUH LVRSHQQHVV
HJWKHRSHQH[SORUDWLRQRIKRZRXUVHQVHVSOD\WKHLURZQUROHVLQRXU
DSSUHFLDWLRQ RI IRRG WKHUH LV KLGGHQQHVV HJ WKH KLGGHQ ELDV LQ RXU
DSSUHFLDWLRQRIIRRGVLQFHWKH\DUHDOVRDIIHFWHGE\RWKHULQIOXHQFHVRXU
HQYLURQPHQW RXU PRRG KRZ LW LV SUHVHQWHG ZKR SUHSDUHV LW HWF $QG
WKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHGHQVHQHVVHPSWLQHVVSULQFLSOHLIWKHUHLVGHQVHQHVV
HJWKHUHODWLYHO\GHQVHUFRQFHQWUDWLRQRIDURPDFRPSRXQGVLQFRIIHHLI
DOO RI WKHP DUH FRXQWHG HYHQ LI WKH\ DUH DUH QRW SHUFHSWLEOH ZLWK WKH
KXPDQ QRVH VLQFH WKLV PHDQV WKDW WKHUH DUH GLIIHUHQW DURPD
FRPSRXQGVLQFRIIHHWKHUHLVHPSWLQHVVHJWKHUHODWLYHO\OHVVGHQVH
RUPRUHHPSW\FRQFHQWUDWLRQRIDURPDFRPSRXQGVLQFRIIHHLIRQO\WKRVH
ZKLFKDUHSHUFHSWLEOHZLWKWKHKXPDQQRVHDUHFRXQWHGVLQFHWKLVPHDQV
WKDWWKHUHDUHRQO\DFRXSOHRIDURPDVLPSRUWDQWIRUWKHVPHOORIFRIIHH
HYHQWKRXJK FRIIHHFRQWDLQVGLIIHUHQWDURPDFRPSRXQGV$QGWKH
UHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHFKDQJHFRQVWDQF\SULQFLSOHLIWKHUHLVFKDQJHHJ
WKH HYHU QHZ ZD\V WR VWXG\ IRRG LQ D V\VWHPDWLF ZD\ DV VKRZQ LQ WKH
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
&KDSWHU7HFKQLTXHVDQGWKHLU'XDO6LGHV
,QUHODWLRQWRWKHFRQYHQWLRQQRYHOW\SULQFLSOHLIWKHUHLVFRQYHQWLRQ
HJ WKH FRQYHQWLRQDO ZLVGRP DERXW XVLQJ WHFKQLTXHV GHYHORSHG LQ
FKHPLVWU\WRVWXG\IRRGZKLFKKDVH[LVWHGIRUPDQ\\HDUVLQGLIIHUHQW
FXOWXUHV WKHUH LV QRYHOW\ HJ WKH DOWHUQDWLYH QRYHO FKDOOHQJH WR WKH
FRQYHQWLRQDO ZLVGRP DERXW XVLQJ WHFKQLTXHV GHYHORSHG LQ FKHPLVWU\ WR
VWXG\IRRGE\WKHQHZLGHDRI.XUWLDQG7KLV>@ZKRGHFLGHGWKDW
D QHZ RUJDQL]HG DQG VSHFLILF GLVFLSOLQH VKRXOG EH FUHDWHG ZLWKLQ IRRG
VFLHQFHWKDWLQYHVWLJDWHGWKHSURFHVVHVLQUHJXODUFRRNLQJ>DVIRRGVFLHQFH
ZDV SULPDULO\ FRQFHUQHG ZLWK WKH QXWULWLRQDO SURSHUWLHV RI IRRG DQG
GHYHORSLQJ PHWKRGV WR SURFHVV IRRG RQ DQ LQGXVWULDO VFDOH@ $QG WKH
UHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH HYROXWLRQWUDQVIRUPDWLRQ SULQFLSOH LI WKHUH LV
HYROXWLRQHJWKHQDWXUDOHYROXWLRQRIKXPDQVWRHDWZKDWWKH\IRXQGLQ
WKH VWDWH RI QDWXUH DQG OHDUQHG WKURXJK WLPH ZKLFK IRRGV ZHQW ZHOO
WRJHWKHU DOEHLW LQ D SULPLWLYH ZD\ WKHUH LV WUDQVIRUPDWLRQ HJ WKH
WHFKQLFDO WUDQVIRUPDWLRQ RI KXPDQ DELOLW\ WR XQGHUVWDQG ZKLFK IRRGV JR
ZHOO WRJHWKHU E\ WKH LQYHQWLRQ RI IRRG VFLHQFH OLNH WKH V\VWHPDWLF
VFLHQWLILF VWXG\ RI IRRG SDLULQJ $QG WKH UHYHUVH GLUHFWLRQ DOVR KROGV
WUXH
,QUHODWLRQWRWKHV\PPHWU\DV\PPHWU\SULQFLSOHLIWKHUHLVV\PPHWU\
HJ WKH H[LVWHQFH RI GLIIHUHQW FRQWULEXWRUV WR WKH ILHOG RI PROHFXODU
JDVWURQRP\ WKHUH LV DV\PPHWU\ HJ WKH ZRUNV RI 1LFKRODV .XUWL DQG
+HUYp 7KLV DUH PRUH LQIOXHQWLDO WKDQ WKRVH RI RWKHUV OLNH (YHO\Q *
+DOOLGD\,VDEHO71REOH%HOOH/RZH0DULH$QWRLQH&DUrPHHWF$QG
WKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHVRIWQHVVKDUGQHVVSULQFLSOHLIWKHUHLVVRIWQHVVHJ
WKHDSSOLFDWLRQRIIRRGSDLULQJZKHQQHZDQGXQH[SHFWHGFRPELQDWLRQV
VXFK DV VWUDZEHUULHV SDLUHG ZLWK SHDV ZHUH DGRSWHG E\ 6DQJ +RRQ
'HJHLPEUHFKHIRI/$LUGXWHPSVLQ%HOJLXPWKHUHLVKDUGQHVVHJ
WKHFULWLTXHRIIRRGSDLULQJDVVKRZQLQWKHSUREOHPVSRLQWHGRXWE\WKH
FULWLFVDVFLWHG$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH VHULRXVQHVVSOD\IXOQHVV SULQFLSOH LI WKHUH LV
VHULRXVQHVVHJWKHVHULRXV EXVLQHVVRIWKRVH ZKRWU\WR XQGHUVWDQGWKH
REMHFWLYHVRIPROHFXODUJDVWURQRP\WKHUHLVSOD\IXOQHVVHJWKHSOD\IXO
SDUW RI WKRVH ZKR WU\ WR XQGHUVWDQG WKH REMHFWLYHV RI PROHFXODU
JDVWURQRP\DVVKRZQ LQWKH GLIIHUHQWGHILQLWLRQVE\7KLV RYHUWLPHOLNH
KLV VWLSXDWLRQ RI REMHFWLYHV DW WKH EHJLQQLQJ DQG ODWHU RQ REMHFWLYHV
LQVWHDG$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHDFWLYHQHVVLQDFWLYHVVSULQFLSOHLIWKHUHLVDFWLYHQHVV
HJ WKH DFWLYHQHVV RI WKRVH ZKR FDQ ZRUN LI WKH\ HDW IRRGV ZKLFK JR
ZHOO WRJHWKHU FKHPLFDOO\ DQG GR QRW JHW VLFN WKHUH LV LQDFWLYHQHVV HJ
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
WKH UHODWLYH LQDFWLYHQHVV RI WKRVH ZKR DUH VLFN LQ WKH VWRPDFK EHFDXVH
WKH\ HDW IRRGV ZKLFK GR QRW JR ZHOO WRJHWKHU DQG VXIIHU IURP IRRG
SRLVRQLQJ
,QUHODWLRQWRWKHVHOIQHVVRWKHUQHVVSULQFLSOHLIWKHUHLVVHOIQHVVHJ
WKHWHQGHQF\WREHPRVWO\FHQWHUHGRQRQHVVHOIRUJURXSDVVKRZQLQWKH
GHVLUHV RI .XUWL DQG 7KLV WR SURPRWH WKHPVHOYHV DV WKH IRXQGHUV RI
PROHFXODUJDVWURQRP\WKHUHLVRWKHUQHVVHJWKHWHQGHQF\WREHPRVWO\
FHQWHUHGRQRWKHUVDVVKRZQLQVRPHUHVHDUFKHUVZKRWU\WREHIDLUWRDOO
E\ LQFOXGLQJ DOO UHOHYDQW FRQWULEXWRUV IRU WKH DGYDQFHPHQW RI FXOLQDU\
NQRZOHGJH ZLWKRXW REVHVVLYHO\ IRFXVLQJ RQ D IHZ PDMRU VFKRODUV RQO\
$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH UHJUHVVLRQSURJUHVVLRQ SULQFLSOH LI WKHUH LV
UHJUHVVLRQ HJ WKH UHJUHVVLRQ PDGH E\ WKH VWXG\ RI IRRG SDLULQJ DV
VKRZQ LQ WKH SUREOHPV SRLQWHG RXW E\ WKH FULWLFV WKHUH LV SURJUHVVLRQ
HJ WKH SURJUHVV PDGH E\ WKH VWXG\ RI IRRG SDLULQJ DV VKRZQ LQ LWV
FRQWULEXWLRQ WR WKH XQGHUVWDQGLQJ RI ZKLFK IRRGV JR ZHOO WRJHWKHU
DIRUHFLWHG$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH VDPHGLIIHUHQFH SULQFLSOH LI WKHUH LV VLPLODULW\ LQ
RXWFRPH HJ WKH FRQWULEXWLRQ WR WKH PROGLQJ DQG FRQWURO RI EHOLHIV
YDOXHV DQG EHKDYLRUV UHJDUGOHVV RI ZKHWKHU WKLV EH GRQH E\ ZD\ RI
PROHFXODU JDVWURQRP\ QRZDGD\V RU E\ ZD\ RI WUDGLWLRQDO FRRNLQJ
SUDFWLFH LQ WKH ROGHU GD\V WKHUH LV GLIIHUHQFH LQ RXWFRPH HJ WKH
FRQWULEXWLRQ WR WKH PROGLQJ DQG FRQWURO RI EHOLHIV YDOXHV DQG EHKDYLRUV
E\ZD\RIPROHFXODUJDVWURQRP\QRZDGD\VIRUDUHODWLYHO\PRUHVFLHQWLILF
ZRUOGYLHZEXW WKH FRQWULEXWLRQ WR WKH PROGLQJ DQG FRQWURO RI EHOLHIV
YDOXHVDQGEHKDYLRUVE\ ZD\RIWUDGLWLRQDOFRRNLQJSUDFWLFHLQWKHROGHU
GD\V IRU D UHODWLYHO\ PRUH FXVWRPDU\ ZRUOGYLHZ $QG WKH UHYHUVH
GLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHVWDELOLW\UHDFWLRQSULQFLSOHLIWKHUHLVVWDELOLW\HJ
WKH UHODWLYHO\ PRUH VWDEOH FRQGLWLRQ RI WKH RULJLQDO REMHFWLYHV RI
PROHFXODU JDVWURQRP\ LQ WKH ROGHU GD\V WKHUH LV UHDFWLRQ HJ WKH
RULJLQDOREMHFWLYHVRIPROHFXODUJDVWURQRP\LQWKHROGHUGD\VWKHQOHGWR
IXUWKHU FKDQJHV ODWHU RQ ZKHQ WKH\ DUH QRZ UHGXFHG WR REMHFWLYHV
LQVWHDG$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
$QGLQUHODWLRQWRWKHIXQFWLRQDOLW\QRQIXQFWLRQDOLW\SULQFLSOHLIWKHUH
LVIXQFWLRQDOLW\HJWKHSUHVHQFHRIDFWLRQIRUZKLFKVRPHWKLQJLVILWWHG
DV VKRZQ LQ WKH H[DPSOH RI RQO\ D FRXSOH RI DURPDV ZKLFK DUH
LPSRUWDQWIRUWKHVPHOORIFRIIHHDVWKH\DUHVXIILFLHQWO\FRQFHQWUDWHG
HQRXJK WR VHUYH WKH HVVHQWLDO IXQFWLRQ WR GHWHUPLQH WKH VSHFLILF IODYRU
WKUHVKROGLQTXHVWLRQWKHUHLVQRQIXQFWLRQDOLW\HJWKHUHODWLYHODFNRI
DFWLRQ IRU ZKLFK VRPHWKLQJ LV ILWWHG DV VKRZQ LQ WKH H[DPSOH RI
&KDSWHU7HFKQLTXHVDQGWKHLU'XDO6LGHV
GLIIHUHQWDURPDFRPSRXQGVLQFRIIHHPDQ\RIZKLFKDUHQRWSHUFHSWLEOH
ZLWKWKHKXPDQQRVHVRWKH\DUHQRWFRXQWHGRUGRQRWVHUYHWKHIXQFWLRQ
WRGHWHUPLQHWKHVSHFLILFIODYRUWKUHVKROGLQTXHVWLRQ$QGWKHUHYHUVH
GLUHFWLRQDOVRKROGVWUXH
7HFKQLTXHV$QLPDO6ODXJKWHUDQG5DGLFDO(QYLURQPHQWDOLVP
$QRWKHU JRRG ZD\ WR HYDOXDWH WKH SRVVLELOLW\ RU LPSRVVLELOLW\ DQG
GHVLUDELOLW\RUXQGHVLUDELOLW\RIWHFKQLTXHVIURPWKHSHUVSHFWLYHRIQDWXUH
LVWRH[SORUHWHFKQLTXHVDQLPDOVODXJKWHUDQGUDGLFDOHQYLURQPHQWDOLVP
7KH WHUP DQLPDO VODXJKWHU UHIHUV WR WKH NLOOLQJ DQG EXWFKHULQJ RI
DQLPDOV XVXDOO\ IRU IRRG7KH DQLPDOV PRVW FRPPRQO\ VODXJKWHUHG IRU
IRRG DUH FDWWOH IRU EHHI DQG YHDO ZDWHU EXIIDOR VKHHS IRU ODPE DQG
PXWWRQJRDWVSLJVIRUSRUNKRUVHVIRUKRUVHPHDWDQGIRZOODUJHO\
FKLFNHQV WXUNH\V DQG GXFNV DQG LQFUHDVLQJO\ ILVK IURP WKH DTXDFXOWXUH
LQGXVWU\ILVKIDUPLQJ:.F
$QGUDGLFDOHQYLURQPHQWDOLVPLVDJUDVVURRWVEUDQFKRIWKHODUJHU
HQYLURQPHQWDO PRYHPHQW WKDW HPHUJHG RXW RI DQ HFRFHQWULVPEDVHG
IUXVWUDWLRQ ZLWK WKH FRRSWLRQ RI PDLQVWUHDP HQYLURQPHQWDOLVP ,W LV WKH
LGHRORJ\ EHKLQG WKH UDGLFDO HQYLURQPHQWDO PRYHPHQW 7KH UDGLFDO
HQYLURQPHQWDOPRYHPHQWDVSLUHVWRZKDWVFKRODU&KULVWRSKHU0DQHVFDOOV
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
0HFKDQLFDO*XQVKRW
7KLV PHWKRG LV DSSURYHG IRU FDWWOH FDOYHV VKHHS VZLQH JRDWV
KRUVHV PXOHV DQG RWKHU HTXLQHV 7KH JXQ LV XVHG WR UHQGHU WKH
DQLPDO TXLFNO\ XQFRQVFLRXV DQG SUHVXPDEO\ GHDG EHIRUH EHLQJ
EOHG
(OHFWULFDO6WXQQLQJRU6ODXJKWHULQJZLWK(OHFWULF&XUUHQW
7KLVPHWKRGLVDSSURYHGIRUVZLQHVKHHSFDOYHVFDWWOHDQGJRDWV
7KH FXUUHQW DSSOLHG LV VXIILFLHQW WR HQVXUH VXUJLFDO DQHVWKHVLD
WKURXJKRXWWKH
EOHHGLQJ
RIWKHDQLPDO
2IFRXUVHHDFKRIWKHVHPHWKRGVLVRXWOLQHGLQGHWDLODQGWKHUHJXODWLRQV
UHTXLUHWKDWLQVSHFWRUVLGHQWLI\RSHUDWLRQVZKLFKFDXVH
XQGXH
H[FLWHPHQW
DQGGLVFRPIRUW
RIDQLPDOV:.F
5HDFWLRQVRI5DGLFDO(QYLURQPHQWDOLVP
+RZHYHU WKRVH ZKR ILJKW IRU DQLPDO ULJKWV DUH QRW SOHDVHG ZLWK WKH
GLIIHUHQW PHWKRGV RI DQLPDO VODXJKWHU HVSHFLDOO\ LQ UHJDUG WR VRPH
DQLPDOV WKDW WKH\ ORYH $OWKRXJK WKHUH DUH GLIIHUHQW JURXSV RI UDGLFDO
HQYLURQPHQWDOLVP D JRRG H[DPSOH LV DQ RUJDQL]DWLRQ NQRZQ DV 6HD
6KHSKHUG
6HD 6KHSKHUG LV D QRQSURILW PDULQH FRQVHUYDWLRQ RUJDQL]DWLRQ
EDVHG LQ )ULGD\ +DUERU RQ 6DQ -XDQ ,VODQG :DVKLQJWRQ LQ WKH 8QLWHG
6WDWHV7KHJURXSXVHVGLUHFWDFWLRQWDFWLFVWRSURWHFWVHDOLIH6HD6KHSKHUG
FXUUHQWO\RSHUDWHVWKHYHVVHOV0<6WHYH,UZLQWKH0<%RE%DUNHUDQGWKH
09%ULJLWWH%DUGRWDQGPRVWRIWKHJURXS
VUHFHQWDFWLYLWLHVWDNHSODFHLQ
LQWHUQDWLRQDO ZDWHUV 7KH RUJDQL]DWLRQ ZDV IRXQGHG LQ XQGHU WKH
QDPH (DUWK )RUFH 6RFLHW\ E\ 3DXO :DWVRQ D IRUPHU PHPEHU RI
*UHHQSHDFHDIWHUDGLVSXWHZLWKWKDWRUJDQL]DWLRQRYHUZKDW:DWVRQVDZ
DVLWVODFNRIPRUHDJJUHVVLYHLQWHUYHQWLRQ:.HH-/\QFK
3+HOOHU
7KH WDFWLFV XVHG E\ 6HD 6KHSKHUG KDYH LQFOXGHG VFXWWOLQJ DQG
GLVDEOLQJ ZKDOLQJ YHVVHOV DW KDUERU LQWHUYHQLQJ LQ &DQDGLDQ DQG
1DPLELDQVHDOKXQWVVKLQLQJODVHUOLJKWLQWRWKHH\HVRIZKDOHUVWKURZLQJ
ERWWOHV RI IRXOVPHOOLQJ EXW\ULF DFLG RQWR YHVVHOV DW VHD ERDUGLQJ RI
ZKDOLQJ YHVVHOV ZKLOH DW VHD DQG VHL]XUH DQG GHVWUXFWLRQ RI GULIW QHWV DW
VHD:.HH-9LGDO1<1=+
&KDSWHU7HFKQLTXHVDQGWKHLU'XDO6LGHV
3UREOHPVZLWK$QLPDO6ODXJKWHUDQG5DGLFDO(QYLURQPHQWDOLVP
+RZHYHU IRU WKH FULWLFV WKLV VWXG\ RI DQLPDO VODXJKWHU DQG UDGLFDO
HQYLURQPHQWDOLVP KDV VRPH PDMRU SUREOHPV &RQVLGHU IRU LOOXVWUDWLRQ D
IHZH[DPSOHVEHORZ
)LUVWO\ RQH PDLQ FULWLFLVP RI WKH VWXG\ RI DQLPDO VODXJKWHU LV WKDW
JRYHUQPHQWUHJXODWLRQVLQUHJDUGWRDQLPDOVODXJKWHUDUHQRWXQLYHUVDO
)RU H[DPSOH DOWKRXJK WKHUH DUH VRPH VLPLODULWLHV LQ UHJDUG WR WKH
PHWKRGV RI DQLPDO VODXJKWHU LQ ERWK WKH 8QLWHG 6WDWHV DQG WKH 8QLWHG
.LQJGRP WKHUH DUH VRPH GLIIHUHQFHV DQG JRRG H[DPSOHV LQFOXGH WKH
XVH RI FDSWLYH EROW HTXLSPHQW DQG HOHFWULFDO VWXQQLQJ LQ WKH 8. ZKLFK
DUH DSSURYHG PHWKRGV RI VWXQQLQJ VKHHS JRDWV FDWWOH DQG FDOYHV IRU
FRQVXPSWLRQZLWKWKHXVHRIJDVUHVHUYHGIRUVZLQH)UHHEXOOHWVODXJKWHU
LVQRWDQDFFHSWHGPHWKRGLQWKH8QLWHG.LQJGRPLIWKHDQLPDOLVLQWHQGHG
IRUFRQVXPSWLRQ:.F
6HFRQGO\DQRWKHUPDLQFULWLFLVPRIWKHVWXG\RIDQLPDOVODXJKWHUDQG
UDGLFDO HQYLURQPHQWDOLVP LV WKDW UDGLFDO HQYLURQPHQWDOLVP OLNH WKH RQH
SUDFWLFHGE\6HD6KHSKHUGYLRODWHVLQWHUQDWLRQDOODZ
)RU LQVWDQFH FULWLFV FODLP WKDW 6HD 6KHSKHUG
V DFWLRQV FRQVWLWXWH
YLRODWLRQVRILQWHUQDWLRQDOODZ:.HH6%LJJV,QIDFWDV
RI WKH RUJDQL]DWLRQ KDV VXQN WHQ ZKDOLQJ VKLSV ZKLOH DOVR
GHVWUR\LQJ PLOOLRQV RI GROODUV ZRUWK RI HTXLSPHQW :. HH .
:RRGKDP (YHQ *UHHQSHDFH KDV FULWLFL]HG 6HD 6KHSKHUG IRU WKH
JURXS
V WDFWLFV SDUWLFXODUO\ UHJDUGLQJ LWV LQWHUDFWLRQ ZLWK ZKDOLQJ VKLSV
ZKLOH DW VHD 7KHHQYLURQPHQWDO JURXS PDLQWDLQV 6HD 6KHSKHUG LV D
YLROHQW RUJDQL]DWLRQ ZKRVH WDFWLFVHQGDQJHU WKH OLYHV RI ILVKHUPHQ DQG
ZKDOHUV:.HH-9LGDO50F.LH')UDVHU
7KLUGO\ VWLOO DQRWKHU PDLQ FULWLFLVP RI WKH VWXG\ RI DQLPDO VODXJKWHU
DQG UDGLFDO HQYLURQPHQWDOLVP LV WKDW UDGLFDO HQYLURQPHQWDOLVP OLNH WKH
RQHSUDFWLFHGE\6HD6KHSKHUGSUDFWLFHVDIRUPRIHFRWHUURULVPZKLFK
UHIHUVWRDFWVRIYLROHQFHRUVDERWDJHFRPPLWWHGLQVXSSRUWRIHFRORJLFDO
HQYLURQPHQWDORUDQLPDOULJKWVFDXVHVDJDLQVWSHUVRQVRUWKHLUSURSHUW\
:.II)5(0:'F
)RULQVWDQFHWKH$PHULFDQ&DQDGLDQDQG-DSDQHVHJRYHUQPHQWVDV
ZHOODVWKH,QVWLWXWHRI&HWDFHDQ5HVHDUFKRI-DSDQKDYHUHIHUUHGWRWKHP
DVWHUURULVWV:.HH)%,&6,6&797(/
* 1DJW]DDP ,Q DGGLWLRQ LQ WHVWLPRQ\ RQ
7KH 7KUHDW RI (FR
7HUURULVP
JLYHQ WR WKH D 86 FRQJUHVVLRQDO VXEFRPPLWWHH LQ 6HD
6KHSKHUG ZDV WKH ILUVW JURXS PHQWLRQHG E\ DQ )%, RIILFLDO IRU KDYLQJ
DWWDFNHG FRPPHUFLDO ILVKLQJ RSHUDWLRQV E\ FXWWLQJ GULIW QHWV $Q HDUOLHU
&DQDGLDQLQWHOOLJHQFHUHSRUWRQ
VLQJOHLVVXHWHUURULVP
VWDWHGWKDW
:DWVRQ
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
DQG KLV VXSSRUWHUV KDYH EHHQ LQYROYHG LQ D QXPEHU RI PLOLWDQW DFWLRQV
DJDLQVW ZKDOH KXQWLQJ GULIWQHW ILVKLQJ VHDO KXQWLQJ DQG RWKHU UHODWHG
LVVXHV
DQGPHQWLRQV
DFWLYLWLHVDJDLQVWORJJLQJRSHUDWLRQVLQ&DQDGD
'XH
WR WKH RSHUDWLRQV DJDLQVW &DQDGLDQ VHDO KXQWHUV 'DQQ\ :LOOLDPV
3UHPLHURI1HZIRXQGODQGDQG/DEUDGRUFDOOHG:DWVRQDWHUURULVWDQGVDLG
WKDW6HD6KHSKHUG ZDVQRW ZHOFRPHLQWKHSURYLQFH:.HH)%,
&6,6&797(/
$QG IRXUWKO\ DQ DGGLWLRQDO PDLQ FULWLFLVP RI WKH VWXG\ RI DQLPDO
VODXJKWHU DQG UDGLFDO HQYLURQPHQWDOLVP LV WKDW UDGLFDO HQYLURQPHQWDOLVP
OLNHWKHRQHSUDFWLFHGE\6HD6KHSKHUGLVDPRUDOLQLWVGHOLEHUDWHVSUHDG
RIOLEHOLQJDQGIDOVHKRRG
)RU LQVWDQFH :DWVRQ >@ DGYLVHV UHDGHUV WR PDNH XS IDFWV DQG
ILJXUHVZKHQWKH\QHHGWRDQGWRGHOLYHUWKHPWRUHSRUWHUVFRQILGHQWO\+H
DOVRVWDWHVWKDWWKH
WUXWKLVLUUHOHYDQW
GXHWRWKHQDWXUHRIPDVVPHGLD,Q
UHVSRQVH WR FULWLFLVP WKDW KH PDQLSXODWHV WKH PHGLD :DWVRQ KDV VWDWHG
:KDW ZH GR LV SURYLGH WKH PHGLD ZLWK WKH NLQG RI VWRULHV WKH\ FDQ
W
UHVLVWDQG WKLV LV KRZ ZH EULQJ DWWHQWLRQ WR ZKDW
V KDSSHQLQJ WR WKH
ZKDOHVWKHVHDOVWKHVKDUNVDQGWKHRWKHUPDULQHFRQVHUYDWLRQFDPSDLJQV
ZH
UHLQYROYHGLQ
:.HH5.KDWFKDGRXULDQ7(/
%H\RQG$QLPDO6ODXJKWHUDQG5DGLFDO(QYLURQPHQWDOLVP
7KHVH FULWLFLVPV RI DQLPDO VODXJKWHU DQG UDGLFDO HQYLURQPHQWDOLVP
KRZHYHUDUHQRWWRVXJJHVWWKHWRWDOUHMHFWLRQRIWKHLUXVHIXOHQVVEXWVHUYH
WRVKRZXVWKHWZRRSSRVLQJVLGHVRIWKHGHEDWHVXFKWKDWWKHSRVVLELOLW\
RU LPSRVVLELOLW\ DQG GHVLUDELOLW\ RU XQGHVLUDELOLW\ RI WHFKQLTXHV IURP
WKH SHUVSHFWLYH RI QDWXUH ZLWK WHFKQLTXHV DQLPDO VODXJKWHU DQG UDGLFDO
HQYLURQPHQWDOLVP DV D FDVH VWXG\ KHUH DUH QRW WR WKH H[WHQW WKDW WKH
UHVSHFWLYHGHIHQGHUVZRXOGOLNHXVWREHOLHYH
,Q DGGLWLRQ WKH DQDO\VLV RI WHFKQLTXHV DQLPDO VODXJKWHU DQG UDGLFDO
HQYLURQPHQWDOLVP LV WR UHYHDO WKH UHIUHVKLQJ LQVLJKWV RI WKH RQWRORJLFDO
SULQFLSOHV LQ H[LVWHQWLDO GLDOHFWLFV DQG JRRG H[DPSOHV LQFOXGH WKH
IRUPDOQHVVLQIRUPDOQHVVSULQFLSOHWKHDEVROXWHQHVVUHODWLYHQHVVSULQFLSOH
WKH SDUWLDOLW\WRWDOLW\ SULQFLSOH WKH SUHGLFWDELOLW\XQSUHGLFWDELOLW\
SULQFLSOH WKH H[SOLFDELOLW\LQH[SOLFDELOLW\ SULQFLSOH WKH ILFWLRQUHDOLW\
SULQFLSOH WKH ILQLWHQHVVWUDQVILQLWHQHVV SULQFLSOH WKH SUHFLVHQHVV
YDJXHQHVV SULQFLSOH WKH VLPSOHQHVVFRPSOLFDWHGQHVV SULQFLSOH WKH
RSHQQHVVKLGGHQQHVV SULQFLSOH WKH GHQVHQHVVHPSWLQHVV SULQFLSOH WKH
FKDQJHFRQVWDQF\ SULQFLSOH WKH RUGHUFKDRV SULQFLSOH WKH VORZQHVV
TXLFNQHVVSULQFLSOHWKHH[SDQVLRQFRQWUDFWLRQSULQFLSOHWKHWKHRU\SUD[LV
SULQFLSOH WKH FRQYHQWLRQQRYHOW\ SULQFLSOH WKH HYROXWLRQWUDQVIRUPDWLRQ
SULQFLSOH WKH V\PPHWU\DV\PPHWU\ SULQFLSOH WKH VRIWQHVVKDUGQHVV
&KDSWHU7HFKQLTXHVDQGWKHLU'XDO6LGHV
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
&KDSWHU7HFKQLTXHVDQGWKHLU'XDO6LGHV
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
WHFKQLFDOWUDQVIRUPDWLRQRIKXPDQDELOLW\WRNLOODQLPDOVE\WKHLQYHQWLRQ
RI DQLPDO ULJKWV VR DV WR GHFLGH LGHRORJLFDOO\ ZKLFK DQLPDOV WR NLOO DQG
ZKLFKRQHVQRWWR$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHV\PPHWU\DV\PPHWU\SULQFLSOHLIWKHUHLVV\PPHWU\
HJWKHH[LVWHQFHRIGLIIHUHQWJURXSVWRHQJDJHLQPDULQHFRQVHUYDWLRQ
WKHUH LV DV\PPHWU\ HJ 6HD 6KHSKHUG LV PRUH YLROHQFHSURQH WKDQ
*UHHQSHDFH$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHVRIWQHVVKDUGQHVVSULQFLSOHLIWKHUHLVVRIWQHVVHJ
WKH UHODWLYHO\ OHVV YLROHQW WDFWLFV E\ VRPH HQYLURQPHQWDO JURXSV OLNH
*UHHQSHDFHWKHUHLVKDUGQHVVHJWKHUHODWLYHO\PRUHYLROHQWWDFWLFVE\
VRPHHQYLURQPHQWDOJURXSVOLNH6HD6KHSKHUG$QGWKHUHYHUVHGLUHFWLRQ
DOVRKROGVWUXH
,Q UHODWLRQ WR WKH VHULRXVQHVVSOD\IXOQHVV SULQFLSOH LI WKHUH LV
VHULRXVQHVVHJWKHVHULRXVEXVLQHVVRI6HD6KHSKHUGWRHQJDJHLQPDULQH
FRQVHUYDWLRQWKHUHLVSOD\IXOQHVVHJWKHSOD\IXOSDUWRI6HD6KHSKHUG
WRHQJDJHLQPDULQHFRQVHUYDWLRQZKHQLWSOD\VDURXQGZLWKOLEHOLQJDQG
IDOVHKRRGWRDWWUDFWPHGLDDWWHQWLRQ$QGWKHUHYHUVHGLUHFWLRQDOVRKROGV
WUXH
,QUHODWLRQWRWKHDFWLYHQHVVLQDFWLYHVVSULQFLSOHLIWKHUHLVDFWLYHQHVV
HJ WKH DFWLYHQHVV RI WKRVH ILVKLQJ ERDWV ZKLFK DUH QRW GDPDQJHG E\
HQYLRUQPHQWDOJURXSVDQGFDQHQJDJHLQNLOOLQJILVKWKHUHLVLQDFWLYHQHVV
HJ WKH UHODWLYH LQDFWLYHQHVV RI WKRVH ILVKLQJ ERDWV ZKLFK DUH VXQN RU
GDPDJHG E\ HQYLRUQPHQWDO JURXSV VR WKDW WKH\ FDQQRW HQJDJH LQ NLOOLQJ
ILVKIRUIRRG$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHVHOIQHVVRWKHUQHVVSULQFLSOHLIWKHUHLVVHOIQHVVHJ
WKH WHQGHQF\ WR EH PRVWO\ FHQWHUHG RQ RQHV VHOI RU JURXS DV VKRZQ E\
WKRVHLQILVKLQJERDWVWRNLOOZKDOHVWKHUHLVRWKHUQHVVHJWKHWHQGHQF\
WR EH PRVWO\ FHQWHUHG RQ RWKHUV DV VKRZQ E\ WKH DGYRFDWHV RI
LQWHUQDWLRQDO FRQVHUYDWLRQ ODZV DQG LQWHUQDWLRQDO PDULWLPH ODZ IRU WKH
FRPPRQJRRGRIKXPDQLW\$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH UHJUHVVLRQSURJUHVVLRQ SULQFLSOH LI WKHUH LV
UHJUHVVLRQ HJ WKH UHJUHVVLRQ PDGH E\ HQYLURQPHQWDO JURXSV DV VKRZQ
LQWKHSUREOHPVSRLQWHGRXWE\WKHFULWLFVWKHUH LVSURJUHVVLRQHJ WKH
SURJUHVVPDGHE\HQYLURQPHQWDOJURXSVDVVKRZQLQWKHLUFRQWULEXWLRQWR
WKH HQIRUFHPHQW DJDLQVW VSHFLHVHQGDQJHULQJ ZKDOLQJ DQG ILVKLQJ
SUDFWLFHVDIRUHFLWHG$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH VDPHGLIIHUHQFH SULQFLSOH LI WKHUH LV VLPLODULW\ LQ
RXWFRPH HJ WKH FRQWULEXWLRQ WR WKH PROGLQJ DQG FRQWURO RI EHOLHIV
YDOXHV DQG EHKDYLRUV UHJDUGOHVV RI ZKHWKHU WKLV EH GRQH E\ ZD\ RI
LQWHUQDWLRQDOFRQVHUYDWLRQODZRUE\ZD\RIWKHWDFWLFVRI6HD6KHSKHUG
WKHUH LV GLIIHUHQFH LQ RXWFRPH HJ WKH FRQWULEXWLRQ WR WKH PROGLQJ DQG
&KDSWHU7HFKQLTXHVDQGWKHLU'XDO6LGHV
FRQWURO RI EHOLHIV YDOXHV DQG EHKDYLRUV E\ ZD\ RI LQWHUQDWLRQDO
FRQVHUYDWLRQ ODZ IRU D UHODWLYHO\ PRUH OHJDOLVWLF ZRUOGYLHZEXW WKH
FRQWULEXWLRQ WR WKH PROGLQJ DQG FRQWURO RI EHOLHIV YDOXHV DQG EHKDYLRUV
E\ ZD\ RI WKH WDFWLFV RI 6HD 6KHSKHUG IRU D UHODWLYHO\ PRUH YLROHQW
ZRUOGYLHZ$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHVWDELOLW\UHDFWLRQSULQFLSOHLIWKHUHLVVWDELOLW\HJ
WKH UHODWLYHO\ PRUH VWDEOH FRQGLWLRQ RI LQWHUQDWLRQDO FRQVHUYDWLRQ ODZV
DQGLQWHUQDWLRQDOPDULWLPHODZLQWKHROGHUGD\VZKHQWKHUHZDVDODFNRI
GLUHFW HQIRUFHPHQW PHFKDQLVPV WKHUH LV UHDFWLRQ HJ LQWHUQDWLRQDO
FRQVHUYDWLRQODZVDQGLQWHUQDWLRQDO PDULWLPHODZ LQ WKHROGHUGD\VWKHQ
OHGWRIXUWKHUFKDQJHVODWHURQZKHQQRZDGD\VWKHUHLV6HD6KHSKHUGZLWK
LWVYLROHQWGLUHFWDFWLYLVP$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
$QGLQUHODWLRQWRWKHIXQFWLRQDOLW\QRQIXQFWLRQDOLW\SULQFLSOHLIWKHUH
LVIXQFWLRQDOLW\HJWKHSUHVHQFHRIDFWLRQIRUZKLFKVRPHWKLQJLVILWWHG
DVVKRZQLQWKHROGHUGD\VZKHQNLOOLQJDQLPDOVZDVDFFHSWHGLQVRIDUDVLW
VHUYHGWKHIXQFWLRQRIIRRGSURYLVLRQWKHUHLVQRQIXQFWLRQDOLW\HJWKH
UHODWLYHODFNRIDFWLRQIRUZKLFKVRPHWKLQJLVILWWHGDVVKRZQLQWKHPRUH
KXPDQHPHWKRGVRIDQLPDOVODXJKWHUUHJXODWHGE\86'$QRZDGD\VVXFK
WKDW WKH ROGHU LQKXPDQH PHWKRGV FDQ QR ORQJHU VHUYH WKH IXQFWLRQ RI D
GLIIHUHQWVWDQGDUGIRUDQLPDOULJKWVLQRXUWLPH$QGWKHUHYHUVHGLUHFWLRQ
DOVRKROGVWUXH
7HFKQLTXHVDQG6RFLHW\
7HFKQLTXHV ZKHQ H[DPLQHG IURP WKH SHUVSHFWLYH RI VRFLHW\ FDQ
VKRZ XV WKHLU SRVVLELOLW\ RU LPSRVVLELOLW\ DQG GHVLUDELOLW\ RU
XQGHVLUDELOLW\DQGWKLVFDQEHVKRZQE\ZD\RIWZRFDVHVWXGLHVQDPHO\
WHFKQLTXHV SUHVHUYDWLRQ DQG IRRG WHFKQRORJ\ DQG
WHFKQLTXHVIDVWIRRGDQGWKHIRRGLQGXVWU\WREHDGGUHVVHGKHUHDIWHU
7HFKQLTXHV3UHVHUYDWLRQDQG)RRG7HFKQRORJ\
$ JRRG ZD\ WR HYDOXDWH WKH SRVVLELOLW\ RU LPSRVVLELOLW\ DQG
GHVLUDELOLW\ RU XQGHVLUDELOLW\ RI WHFKQLTXHV IURP WKH SHUVSHFWLYH RI
VRFLHW\LVWRH[SORUHWHFKQLTXHVSUHVHUYDWLRQDQGIRRGWHFKQRORJ\
7KHWHUPIRRGWHFKQRORJ\UHIHUVWRDEUDQFKRIIRRGVFLHQFHZKLFK
GHDOVZLWKWKHDFWXDOSURGXFWLRQSURFHVVHVWRPDNHIRRGVDQGRQHEHQHILW
LVIRUIRRGSUHVHUYDWLRQ:.JJ
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
(DUO\+LVWRU\RI)RRG7HFKQRORJ\
+LVWRULFDOO\UHVHDUFKLQWKHILHOGQRZNQRZQDVIRRGWHFKQRORJ\KDV
EHHQFRQGXFWHGIRUGHFDGHV1LFRODV$SSHUWVGHYHORSPHQWLQRIWKH
FDQQLQJSURFHVVZDVDGHFLVLYHHYHQW7KHSURFHVV ZDVQWFDOOHGFDQQLQJ
WKHQ DQG $SSHUW GLG QRW UHDOO\ NQRZ WKH SULQFLSOH RQ ZKLFK KLV SURFHVV
ZRUNHG EXW FDQQLQJ KDV KDG D PDMRU LPSDFW RQ IRRG SUHVHUYDWLRQ
WHFKQLTXHV:.JJ
2QH VKRXOG DOVR PHQWLRQ /RXLV 3DVWHXU ZKRVH UHVHDUFK RQ WKH
VSRLODJHRIZLQHDQGKLVGHVFULSWLRQRIKRZWRDYRLGVSRLODJHLQZDV
DQ HDUO\ DWWHPSW WR SXW IRRG WHFKQRORJ\ RQ D VFLHQWLILF EDVLV %HVLGHV
UHVHDUFK LQWR ZLQH VSRLODJH 3DVWHXU GLG UHVHDUFK RQ WKH SURGXFWLRQ RI
DOFRKRO YLQHJDU ZLQHV DQG EHHU DQG WKH VRXULQJ RI PLON +H GHYHORSHG
SDVWHXUL]DWLRQWKHSURFHVVRI KHDWLQJ PLONDQG PLONSURGXFWVWRGHVWUR\
IRRGVSRLODJHDQGGLVHDVHSURGXFLQJRUJDQLVPV,QKLVUHVHDUFK LQWRIRRG
WHFKQRORJ\ 3DVWHXU EHFDPH WKH SLRQHHU LQWR EDFWHULRORJ\ DQG RI PRGHUQ
SUHYHQWLYHPHGLFLQH:.JJ
7KH,QYHQWLRQRI&DQQLQJ
7KHLQYHQWLRQRIFDQQLQJDVLQGLFDWHGDERYHLVDQLPSRUWDQWFKDSWHU
LQ WKH KLVWRU\ RI IRRG WHFKQRORJ\ IRU IRRG SUHVHUYDWLRQ VLQFH LW LV D
PHWKRG RI SUHVHUYLQJ IRRG LQ ZKLFK WKH IRRG FRQWHQWV DUH SURFHVVHG DQG
VHDOHG LQ DQ DLUWLJKW FRQWDLQHU &DQQLQJ SURYLGHV D W\SLFDO VKHOI OLIH
UDQJLQJ IURP RQH WR ILYH \HDUV DOWKRXJK XQGHU VSHFLILF FLUFXPVWDQFHV D
IUHH]HGULHGFDQQHGSURGXFWVXFKDVFDQQHGGULHGOHQWLOVFDQODVWDVORQJ
DV\HDUVLQDQHGLEOHVWDWH:.KK
7KH LQYHQWLRQ RI FDQQLQJ RFFXUUHG LQ ZKHQ GXULQJ WKH ILUVW
\HDUVRIWKH1DSROHRQLF:DUVWKH)UHQFKJRYHUQPHQWRIIHUHGDKHIW\FDVK
DZDUG RI IUDQFV WR DQ\ LQYHQWRU ZKR FRXOG GHYLVH D FKHDS DQG
HIIHFWLYHPHWKRGRISUHVHUYLQJODUJHDPRXQWVRIIRRG7KHODUJHUDUPLHVRI
WKHSHULRGUHTXLUHGLQFUHDVHGDQGUHJXODUVXSSOLHVRITXDOLW\IRRG/LPLWHG
IRRGDYDLODELOLW\ZDVDPRQJWKHIDFWRUVOLPLWLQJPLOLWDU\FDPSDLJQVWRWKH
VXPPHUDQGDXWXPQPRQWKV,QD)UHQFKFRQIHFWLRQHUDQGEUHZHU
1LFRODV$SSHUWREVHUYHGWKDWIRRGFRRNHGLQVLGHDMDUGLGQRWVSRLOXQOHVV
WKHVHDOVOHDNHGDQGGHYHORSHGDPHWKRGRIVHDOLQJIRRGLQJODVVMDUV7KH
UHDVRQ IRU ODFN RI VSRLODJH ZDV XQNQRZQ DW WKH WLPH VLQFH LW ZRXOG EH
DQRWKHU \HDUVEHIRUH/RXLV3DVWHXUGHPRQVWUDWHGWKHUROHRIPLFUREHV
LQIRRGVSRLODJH:.KK
%XWWKHSUREOHPKHUHLVWKDWJODVVFRQWDLQHUVSUHVHQWHGFKDOOHQJHVIRU
WUDQVSRUWDWLRQ VR JODVV MDUV ZHUH ODUJHO\ UHSODFHG LQ FRPPHUFLDO
FDQQHULHVZLWKF\OLQGULFDOWLQRUZURXJKWLURQFDQLVWHUVODWHUVKRUWHQHGWR
&KDSWHU7HFKQLTXHVDQGWKHLU'XDO6LGHV
FDQV
IROORZLQJWKH ZRUNRI 3HWHU'XUDQG&DQVDUHFKHDSHUDQG
TXLFNHU WR PDNH DQG PXFK OHVV IUDJLOH WKDQ JODVV MDUV *ODVV MDUV KDYH
UHPDLQHGSRSXODUIRUVRPHKLJKYDOXHSURGXFWVDQGLQKRPHFDQQLQJ&DQ
RSHQHUVZHUHQRWLQYHQWHGIRUDQRWKHUWKLUW\\HDUVDWILUVWVROGLHUVKDGWR
FXW WKH FDQV RSHQ ZLWK ED\RQHWV RU VPDVK WKHP RSHQ ZLWK URFNV :.
KK
7KHSURFHVVRIFDQQLQJLVFRPSOLFDWHGHQRXJKVLQFH WRSUHYHQWWKH
IRRG IURP EHLQJ VSRLOHG EHIRUH DQG GXULQJ FRQWDLQPHQW D QXPEHU RI
PHWKRGV DUH XVHG SDVWHXULVDWLRQ ERLOLQJ DQG RWKHU DSSOLFDWLRQV RI KLJK
WHPSHUDWXUHRYHUDSHULRGRIWLPHUHIULJHUDWLRQIUHH]LQJGU\LQJYDFXXP
WUHDWPHQW DQWLPLFURELDO DJHQWV WKDW DUH QDWXUDO WR WKH UHFLSH RI WKH IRRGV
EHLQJ SUHVHUYHG D VXIILFLHQW GRVH RI LRQL]LQJ UDGLDWLRQ VXEPHUVLRQ LQ D
VWURQJ VDOLQH VROXWLRQ DFLG EDVH RVPRWLFDOO\ H[WUHPH IRU H[DPSOH YHU\
VXJDU\RURWKHUPLFURELDOO\FKDOOHQJLQJHQYLURQPHQWV:.KK
/DWHU LQ 0D[ $PV LQYHQWHG PRGHUQ GRXEOH VHDPV ZKLFK
SURYLGH DQ DLUWLJKW VHDO WR WKH WLQ FDQ 7KLV DLUWLJKW QDWXUH LV FUXFLDO WR
NHHSLQJ EDFWHULD RXW RI WKH FDQ DQG NHHSLQJ LWV FRQWHQWV VHDOHG LQVLGH
7KXVGRXEOHVHDPHGFDQVDUHDOVRNQRZQDV6DQLWDU\&DQV'HYHORSHGLQ
LQ (XURSH WKLV VRUW RI FDQ ZDV PDGH RI WKH WUDGLWLRQDO F\OLQGULFDO
ERG\PDGHZLWKWLQSODWH7KHWZRHQGVOLGVZHUHDWWDFKHGXVLQJZKDWLV
QRZ FDOOHG D GRXEOH VHDP $ FDQ WKXV VHDOHG LV LPSHUYLRXV WR
FRQWDPLQDWLRQ E\ FUHDWLQJ WZR WLJKW FRQWLQXRXV IROGV EHWZHHQ WKH FDQV
F\OLQGULFDO ERG\ DQG WKH OLGV 7KLV HOLPLQDWHG WKH QHHG IRU VROGHU DQG
DOORZHG LPSURYHPHQWV LQ PDQXIDFWXULQJ VSHHG UHGXFLQJ FRVW :.
KK06XWWRQ
7KHXVHRIFDQQLQJEHFDPHPRUHZLGHVSUHDGHVSHFLDOO\GXULQJ::,
VLQFH GHPDQG IRU FDQQHG IRRG VN\URFNHWHG GXULQJ :RUOG :DU , DV
PLOLWDU\FRPPDQGHUVVRXJKWYDVWTXDQWLWLHVRIFKHDSKLJKFDORULHIRRGWR
IHHGWKHLUPLOOLRQVRIVROGLHUVZKLFKFRXOGEHWUDQVSRUWHGVDIHO\VXUYLYH
WUHQFK FRQGLWLRQV DQG QRW VSRLO LQ WUDQVSRUW$IWHU WKH ZDU FRPSDQLHV
WKDWKDGVXSSOLHGPLOLWDU\FDQQHGIRRGLPSURYHGWKHTXDOLW\RIWKHLUJRRGV
IRUFLYLOLDQVDOH:.KK
1RZDGD\V WLQFRDWHG VWHHO LV WKH PDWHULDO PRVW FRPPRQO\ XVHG
/DPLQDWH YDFXXP SRXFKHV DUH DOVR XVHG IRU FDQQLQJ VXFK DV XVHG LQ
05(VDQG&DSUL6XQGULQNV:.KK
0DLQ'HYHORSPHQWVLQ)RRG7HFKQRORJ\
6LQFH WKH ZRUNV RI $SSHUW 3DVWHXU $PV DQG RWKHUV GLIIHUHQW
GHYHORSPHQWV LQ IRRG WHFKQRORJ\ KDYH EHHQ DGYDQFHG DQG KHUHDIWHU DUH
VRPHJRRGH[DPSOHVRIWKHPDVVXPPDUL]HGLQ7DEOH:.JJ
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
&KDSWHU7HFKQLTXHVDQGWKHLU'XDO6LGHV
ELVSKHQRO $ D SRWHQWLDO HQGRFULQH GLVUXSWRU WKDW LV DQ LQJUHGLHQW LQ WKH
HSR[\FRPPRQO\XVHGWRFRDWWKHLQQHUVXUIDFHRIFDQV:.KK
6HFRQGO\DQRWKHUPDLQFULWLFLVPRIIRRGWHFKQRORJ\IRUSUHVHUYDWLRQ
LVWKDWLWFDQOHDGWRXQEDODQFHGGLHWDU\VDOW
)RU LQVWDQFH IRU WKH FULWLFV FDQQHG IRRG FDQ EH D PDMRU VRXUFH RI
GLHWDU\VDOWVRGLXPFKORULGH7RRPXFKVDOWLQFUHDVHVWKHULVNRI KHDOWK
SUREOHPV LQFOXGLQJ KLJK EORRG SUHVVXUH 7KHUHIRUH KHDOWK DXWKRULWLHV
KDYH UHFRPPHQGHG OLPLWDWLRQV RI GLHWDU\ VRGLXP :. KK $+$
8.*)6$+($&
$QG WKLUGO\ VWLOO DQRWKHU PDLQ FULWLFLVP RI IRRG WHFKQRORJ\ IRU
SUHVHUYDWLRQLVWKDWLWFDQOHDGWRSDUDO\WLFLOOQHVV
)RU LQVWDQFH IRRGERUQH ERWXOLVP UHVXOWV IURP FRQWDPLQDWHG
IRRGVWXIIVLQ ZKLFK &ERWXOLQXPVSRUHV KDYHEHHQDOORZHGWRJHUPLQDWH
DQGSURGXFHERWXOLVPWR[LQDQGWKLVW\SLFDOO\RFFXUVLQFDQQHGQRQDFLGLF
IRRGVXEVWDQFHV&ERWXOLQXPSUHIHUVORZR[\JHQHQYLURQPHQWVDQGFDQ
WKHUHIRUH JURZ LQ FDQQHG IRRGV %RWXOLVP LV D UDUH EXW VHULRXV SDUDO\WLF
LOOQHVV OHDGLQJ WR SDUDO\VLV WKDW W\SLFDOO\ VWDUWV ZLWK WKH PXVFOHV RI WKH
IDFH DQG WKHQ VSUHDGV WRZDUGV WKH OLPEV ,Q VHYHUH IRUPV LW OHDGV WR
SDUDO\VLVRIWKHEUHDWKLQJPXVFOHVDQGFDXVHVUHVSLUDWRU\IDLOXUH,QYLHZ
RI WKLV OLIHWKUHDWHQLQJ FRPSOLFDWLRQ DOO VXVSHFWHG FDVHV RI ERWXOLVP DUH
WUHDWHG DV PHGLFDO HPHUJHQFLHV DQG SXEOLF KHDOWK RIILFLDOV DUH XVXDOO\
LQYROYHGWRSUHYHQWIXUWKHUFDVHVIURPWKHVDPHVRXUFH:.KK,
.RR-6REHO
%H\RQG)RRG7HFKQRORJ\
+RZHYHU WKHVH FULWLFLVPV RI IRRG WHFKQRORJ\ VKRXOG QRW EH
PLVXQGHUVWRRGDVDWRWDOUHMHFWLRQRILWVXVHIXOQHVVEXWVHUYHWRVKRZXVWKH
WZR RSSRVLQJ VLGHV RI WKH GHEDWH VXFK WKDW WKH SRVVLELOLW\ RU
LPSRVVLELOLW\ DQG GHVLUDELOLW\ RU XQGHVLUDELOLW\ RI WHFKQLTXHV IURP WKH
SHUVSHFWLYHRIVRFLHW\ZLWKWHFKQLTXHVSUHVHUYDWLRQDQGIRRGWHFKQRORJ\
DV D FDVH VWXG\ KHUH DUH QRW WR WKH H[WHQW WKDW WKH UHVSHFWLYH GHIHQGHUV
ZRXOGOLNHXVWREHOLHYH
%HVLGHVWKHDQDO\VLVRIWHFKQLTXHVSUHVHUYDWLRQDQGIRRGWHFKQRORJ\
FDQ WHDFK XV D JRRG OHVVRQ DERXW WKH RQWRORJLFDO SULQFLSOHV LQ H[LVWHQWLDO
GLDOHFWLFV DQG JRRG H[DPSOHV LQFOXGH WKH IRUPDOQHVVLQIRUPDOQHVV
SULQFLSOH WKH DEVROXWHQHVVUHODWLYHQHVV SULQFLSOH WKH SDUWLDOLW\WRWDOLW\
SULQFLSOH WKH SUHGLFWDELOLW\XQSUHGLFWDELOLW\ SULQFLSOH WKH H[SOLFDELOLW\
LQH[SOLFDELOLW\ SULQFLSOH WKH ILFWLRQUHDOLW\ SULQFLSOH WKH ILQLWHQHVV
WUDQVILQLWHQHVV SULQFLSOH WKH SUHFLVHQHVVYDJXHQHVV SULQFLSOH WKH
VLPSOHQHVVFRPSOLFDWHGQHVV SULQFLSOH WKH RSHQQHVVKLGGHQQHVV SULQFLSOH
WKH GHQVHQHVVHPSWLQHVV SULQFLSOH WKH FKDQJHFRQVWDQF\ SULQFLSOH WKH
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
&KDSWHU7HFKQLTXHVDQGWKHLU'XDO6LGHV
QHFHVVDULO\GHVLUDEOHEHFDXVHRILWVDELOLW\WRSUHVHUYHIRRGVLQFHIRUWKH
FULWLFVLWFDQFDXVHOHDGSRLVRQLQJFDQOHDGWRXQEDODQFHGGLHWDU\VDOWDQG
FDQOHDGWRSDUDO\WLFLOOQHVV$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH ILFWLRQUHDOLW\ SULQFLSOH LI WKHUH LV ILFWLRQ HJ WKH
ILFWLRQDODVSHFWRIFDQQLQJLQVRIDUDVLW ZDVEHOLHYHGWREHVDIH IRUIRRG
SUHVHUYDWLRQVLQFHIRUWKHFULWLFVLWFDQFDXVHOHDGSRLVRQLQJFDQOHDGWR
XQEDODQFHG GLHWDU\ VDOW DQG FDQ OHDG WR SDUDO\WLF LOOQHVV WKHUH LV UHDOLW\
HJWKHUHDOLVWLFDVSHFWRIFDQQLQJLQVRIDUDVLWFDQSUHVHUYHIRRGIRUD
ORQJWLPH$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH ILQLWHQHVVWUDQVILQLWHQHVV SULQFLSOH LI WKHUH LV
ILQLWHQHVVHJWKHILQLWHQXPEHURIWKHLQYHQWLRQVLQIRRGWHFKQRORJ\DV
VKRZQLQWKHH[DPSOHVLQWKHDUWLFOHDIRUHFLWHGWKHUHLVWUDQVILQLWHQHVV
HJWKHWUDQVILQLWH QXPEHURIDOOWKHLQGLYLGXDOLWHPVRI IRRGLQKLVWRU\
WKDWKDYHHYHUEHHQSUHVHUYHG$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH SUHFLVHQHVVYDJXHQHVV SULQFLSOH LI WKHUH LV
SUHFLVHQHVV HJ WKH SUHFLVH LGHQWLILFDWLRQ RI PDMRU GHYHORSPHQWV LQ
IRRG WHFKQRORJ\ LQ WKH DUWLFOH DIRUHFLWHG WKHUH LV YDJXHQHVV HJ WKH
YDJXHQHVV LQ WKH LGHQWLILFDWLRQ RI WKH PDMRU GHYHORSPHQWV LQ IRRG
WHFKQRORJ\LQWKHDUWLFOHDIRUHFLWHVLQFHLWLVQRWFOHDUZK\WKHUHPXVWEH
RQO\QRWDQGVRRQ$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH VLPSOHQHVVFRPSOLFDWHGQHVV SULQFLSOH LI WKHUH LV
VLPSOHQHVV HJ WKH UHODWLYHO\ VLPSOH DQDO\VLV RI FDQQLQJ E\ WKH
DGYRFDWHVWKHUHLVFRPSOLFDWHGQHVVHJWKHUHODWLYHO\PRUHFRPSOLFDWHG
DQDO\VLVRIFDQQLQJE\FKDOOHQJLQJWKHFODLPVDQGDVVXPSWLRQVDVVKRZQ
LQ WKH SUREOHPV SRLQWHG RXW E\ WKH FULWLFV DV FLWHG $QG WKH UHYHUVH
GLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHRSHQQHVVKLGGHQQHVVSULQFLSOHLIWKHUHLVRSHQQHVV
HJ WKH RSHQ H[SORUDWLRQ RI WKH XVH RI FDQQLQJ IRU IRRG SUHVHUYDWLRQ
WKHUHLVKLGGHQQHVVHJWKHKLGGHQZHDNQHVVLQWKHXVHRIFDQQLQJVLQFH
IRRGVWXIIV LQVLGH FDQV FDQ EH FRQWDPLQDWHG E\ & ERWXOLQXP VSRUHV
ZKLFK SUHIHUORZ R[\JHQ HQYLURQPHQWV DQG FDQ WKHUHIRUH JURZ LQ
FDQQHGIRRGV$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHGHQVHQHVVHPSWLQHVVSULQFLSOHLIWKHUHLVGHQVHQHVV
HJWKHUHODWLYHO\GHQVHUFRQFHQWUDWLRQRIIRRGVWXIIVWREHFRQWDPLQHGE\
& ERWXOLQXP VSRUHV LI QRW VWHULOL]HG WKHUH LV HPSWLQHVV HJ WKH
UHODWLYHO\ OHVV GHQVH RU PRUH HPSW\ FRQFHQWUDWLRQ RI IRRGVWXIIV WR EH
FRQWDPLQHG E\ & ERWXOLQXP VSRUHV LI VWHULOL]HG $QG WKH UHYHUVH
GLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHFKDQJHFRQVWDQF\SULQFLSOHLIWKHUHLVFKDQJHHJ
WKHHYHUQHZZD\VWRGHDOZLWKIRRGWHFKQRORJ\DVVKRZQLQWKHLQYHQWLRQ
RI FDQQLQJ WKHUH LV FRQVWDQF\ HJ WKH HYHU FRQVWDQW H[LVWHQFH RI
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
GLIIHUHQWSUREOHPVLQWKHHYHUQHZZD\VWRGHDOZLWKIRRGWHFKQRORJ\DV
VKRZQ LQ WKH SUREOHPV ZLWK WKH LQYHQWLRQ RI FDQQLQJ SRLQWHG RXW E\ WKH
FULWLFV$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHRUGHUFKDRVSULQFLSOHLIWKHUHLVRUGHUHJWKHPRUH
RU OHVV RUGHUO\ DSSHDUDQFH RI IRRG SUHVHUYDWLRQ QRZDGD\V LQVRIDU DV LW
IROORZVWKHVWDQGDUGL]HGSURFHVVRIFDQQLQJWKHUHLVFKDRVHJWKHPRUH
RUOHVVFKDRWLFDSSHDUDQFHRIIRRGSUHVHUYDWLRQLQWKHROGHUGD\VSULRUWR
FDQQLQJ VLQFH WKHUH ZHUH GLIIHUHQW PHWKRGV XVHG E\ GLIIHUHQW FXOWXUHV DW
GLIIHUHQWWLPHV$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH VORZQHVVTXLFNQHVV SULQFLSOH LI WKHUH LV VORZQHVV
HJWKHUHODWLYHO\VORZHUVSHHGRIWKHFDQQLQJSURFHVVDWWKHHDUO\VWDJH
RI LWV GHYHORSPHQW ZKHQ LQLWLDOO\ WKH FDQQLQJ SURFHVV ZDV VORZ DQG
ODERXULQWHQVLYH DV HDFK ODUJH FDQ KDG WR EH KDQGPDGH DQG WRRN XS WR
VL[ KRXUV WR FRRN PDNLQJ FDQQHG IRRG WRR H[SHQVLYH IRU RUGLQDU\
SHRSOH WKHUH LV TXLFNQHVV HJ WKH UHODWLYHO\ TXLFNHU VSHHG RI WKH
FDQQLQJSURFHVVODWHURQVLQFHE\WKHVVPDOOHUPDFKLQHPDGHVWHHO
FDQV ZHUH SRVVLEOH DQG WKH WLPH WR FRRN IRRG LQ VHDOHG FDQV KDG EHHQ
UHGXFHG IURP DURXQG VL[ KRXUV WR WKLUW\ PLQXWHV $QG WKH UHYHUVH
GLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHH[SDQVLRQFRQWUDFWLRQSULQFLSOHLIWKHUHLVH[SDQVLRQ
HJ WKH UHODWLYH H[SDQVLRQ RI WKH XVH RI FDQQLQJ IRU IRRG SUHVHUYDWLRQ
QRZDGD\V WKHUH LV FRQWUDFWLRQ HJ WKH UHODWLYH GHFOLQH RI WKH XVH RI
JODVVMDUVIRUIRRGSUHVHUYDWLRQQRZDGD\V$QGWKHUHYHUVHGLUHFWLRQDOVR
KROGVWUXH
,Q UHODWLRQ WR WKH WKHRU\SUD[LV SULQFLSOH LI WKHUH LV WKHRU\ HJ WKH
WKHRUHWLFDOFRQVWUXFWLRQRISDVWHXUL]DWLRQLQPHGLFLQHE\3DVWHXUWKHUH
LVSUD[LVHJWKHSUDFWLFDODSSOLFDWLRQRISDVWHXUL]DWLRQLQPHGLFLQHWR
WKHILHOGRIIRRGVFLHQFHIRUFDQQLQJ$QGWKHUHYHUVHGLUHFWLRQDOVRKROGV
WUXH
,QUHODWLRQWRWKHFRQYHQWLRQQRYHOW\SULQFLSOHLIWKHUHLVFRQYHQWLRQ
HJWKHFRQYHQWLRQDOZLVGRPDERXWXVLQJJODVVMDUVIRUIRRGSUHVHUYDWLRQ
E\ $SSHUW WKHUH LV QRYHOW\ HJ WKH DOWHUQDWLYH QRYHO FKDOOHQJH WR WKH
FRQYHQWLRQDO ZLVGRP DERXW XVLQJ JODVV MDUV IRU IRRG SUHVHUYDWLRQ E\
$SSHUW E\ WKH QHZ LGHD RI 'XUDQG ZKR ODWHU UHSODFHG JODVV MDUV ZLWK
F\OLQGULFDO WLQ RU ZURXJKWLURQ FDQLVWHUV LQ $QG WKH UHYHUVH
GLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH HYROXWLRQWUDQVIRUPDWLRQ SULQFLSOH LI WKHUH LV
HYROXWLRQHJWKHQDWXUDOHYROXWLRQRIKXPDQVWRXVHIRRGXQWLOLWVSRLOV
LQWKHVWDWHRIQDWXUHLQDSULPLWLYHZD\WKHUHLVWUDQVIRUPDWLRQHJWKH
WHFKQLFDOWUDQVIRUPDWLRQRIKXPDQDELOLW\WRXVHIRRGE\WKHLQYHQWLRQRI
FDQQLQJIRUIRRGSUHVHUYDWLRQ$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
&KDSWHU7HFKQLTXHVDQGWKHLU'XDO6LGHV
,QUHODWLRQWRWKHV\PPHWU\DV\PPHWU\SULQFLSOHLIWKHUHLVV\PPHWU\
HJWKHH[LVWHQFHRIGLIIHUHQWZD\VWRSUHVHUYHIRRGOLNHWKHXVHRIJODVV
MDUVDQGFDQVWKHUHLVDV\PPHWU\HJFDQVDUHFKHDSHUDQGTXLFNHUWR
PDNHDQGPXFKOHVVIUDJLOHWKDQJODVVMDUVVRWKH\DUHPRUHZLGHO\XVHG
QRZDGD\VEXW JODVV MDUV KDYH UHPDLQHG SRSXODU IRU VRPH KLJKYDOXH
SURGXFWV$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHVRIWQHVVKDUGQHVVSULQFLSOHLIWKHUHLVVRIWQHVVHJ
WKH DSSUHFLDWLRQ RI FDQQLQJ DV VKRZQ LQ LWV VSUHDG DIWHU ::, WKHUH LV
KDUGQHVVHJWKHFULWLTXHRIFDQQLQJDV VKRZQLQWKHSUREOHPVSRLQWHG
RXWE\WKHFULWLFVDVFLWHG$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH VHULRXVQHVVSOD\IXOQHVV SULQFLSOH LI WKHUH LV
VHULRXVQHVVHJWKHVHULRXV EXVLQHVVRIWKRVH ZKRWU\WR XQGHUVWDQGWKH
QDWXUHRIIRRGSUHVHUYDWLRQWKHUHLVSOD\IXOQHVVHJWKHSOD\IXOSDUWRI
WKRVH ZKR WU\ WR XQGHUVWDQG WKH QDWXUH RI IRRG SUHVHUYDWLRQ ZKHQ WKH\
SOD\HG DURXQG ZLWK GLIIHUHQW WHFKQLTXHV RYHU WLPH OLNH JODVV MDUV FDQV
VLQJOH VHDPV GRXEOH VHDPV HWF $QG WKH UHYHUVH GLUHFWLRQ DOVR KROGV
WUXH
,QUHODWLRQWRWKHDFWLYHQHVVLQDFWLYHVVSULQFLSOHLIWKHUHLVDFWLYHQHVV
HJ WKH DFWLYHQHVV RI PLFURRUJDQLVPV OLNH & ERWXOLQXP ZKLFK FDQ
JURZ LQ FDQQHG IRRGV WKHUH LV LQDFWLYHQHVV HJ WKH UHODWLYH
LQDFWLYHQHVVRIPLFURRUJDQLVPVOLNH&ERWXOLQXPZKLFKFDQQRWJURZLQ
FDQQHGIRRGVLIWKH\ZHQWWKURXJKWKHSURFHVVRIVWHULOL]DWLRQWKDWLVWR
EH HOLPLQDWHG DW WHPSHUDWXUHV DERYH WKH ERLOLQJ SRLQW :. KK
$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHVHOIQHVVRWKHUQHVVSULQFLSOHLIWKHUHLVVHOIQHVVHJ
WKHWHQGHQF\WREHPRVWO\FHQWHUHGRQRQHVVHOIRUJURXSDVVKRZQLQWKH
GHVLUH RI WKH )UHQFK PLOLWDU\ ZKHQ GXULQJ WKH ILUVW \HDUV RI WKH
1DSROHRQLF :DUV WKH\ RIIHUHG D KHIW\ FDVK DZDUG RI IUDQFV WR
DQ\LQYHQWRUZKRFRXOGGHYLVHDFKHDSDQGHIIHFWLYHPHWKRGRISUHVHUYLQJ
ODUJHDPRXQWVRIIRRGVRDVWRH[SDQG)UHQFKPLOLWDU\FDPSDLJQVWRDOO
VHDVRQV WKHUH LV RWKHUQHVV HJ WKH WHQGHQF\ WR EH PRVWO\ FHQWHUHG RQ
RWKHUV DV VKRZQ E\ WKH PHGLFDO UHVHDUFKHUV ZKR SRLQWHG RXW WKH KHDOWK
KD]DUGVRIFDQQLQJIRUWKHDGYDQFHPHQWRIPHGLFDONQRZOHGJH$QGWKH
UHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH UHJUHVVLRQSURJUHVVLRQ SULQFLSOH LI WKHUH LV
UHJUHVVLRQHJWKHUHJUHVVLRQPDGHE\FDQQLQJDVVKRZQLQWKHSUREOHPV
SRLQWHGRXWE\WKHFULWLFVWKHUHLVSURJUHVVLRQHJWKHSURJUHVVPDGHE\
FDQQLQJDVVKRZQLQLWVFRQWULEXWLRQWRIRRGSUHVHUYDWLRQDIRUHFLWHG$QG
WKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH VDPHGLIIHUHQFH SULQFLSOH LI WKHUH LV VLPLODULW\ LQ
RXWFRPH HJ WKH FRQWULEXWLRQ WR WKH PROGLQJ DQG FRQWURO RI EHOLHIV
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
YDOXHVDQGEHKDYLRUVUHJDUGOHVVRIZKHWKHUWKLVEHGRQHE\ZD\RIHDWLQJ
IRRGXQWLOVSRLODJHRUE\ZD\RIFDQQLQJWKHUHLVGLIIHUHQFHLQRXWFRPH
HJ WKH FRQWULEXWLRQ WR WKH PROGLQJ DQG FRQWURO RI EHOLHIV YDOXHV DQG
EHKDYLRUV E\ ZD\ RI HDWLQJ IRRG XQWLO VSRLODJH IRU D UHODWLYHO\ PRUH
QDWXUDOLVWLFOLIHZRUOGEXWWKHFRQWULEXWLRQWRWKH PROGLQJDQGFRQWURORI
EHOLHIV YDOXHV DQG EHKDYLRUV E\ ZD\ RI FDQQLQJ IRU D UHODWLYHO\ PRUH
WHFKQRSKLOLFOLIHZRUOG$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHVWDELOLW\UHDFWLRQSULQFLSOHLIWKHUHLVVWDELOLW\HJ
WKH UHODWLYHO\ PRUH VWDEOH FRQGLWLRQ RI FRQVXPLQJ IRRG XQWLO VSRLODJH LQ
WKHROGHUGD\VWKHUHLVUHDFWLRQHJWKHVWDEOHFRQGLWLRQRIFRQVXPLQJ
IRRGXQWLOVSRLODJHLQWKHROGHUGD\VWKHQOHGWRIXUWKHUFKDQJHVODWHURQ
ZKHQ QRZDGD\V FDQQLQJ LV ZLGHO\ XVHG IRU IRRG SUHVHUYDWLRQ LQVWHDG
$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
$QGLQUHODWLRQWRWKHIXQFWLRQDOLW\QRQIXQFWLRQDOLW\SULQFLSOHLIWKHUH
LVIXQFWLRQDOLW\HJWKHSUHVHQFHRIDFWLRQIRUZKLFKVRPHWKLQJLVILWWHG
DVVKRZQLQWKHXVHRIJODVVMDUVWRVHUYHWKHIXQFWLRQRIIRRGSUHVHUYDWLRQ
LQ WKH WK FHQWXU\ WKHUH LV QRQIXQFWLRQDOLW\ HJ WKH UHODWLYH ODFN RI
DFWLRQIRUZKLFKVRPHWKLQJLVILWWHGDVVKRZQLQWKHXVHRIFDQVQRZDGD\V
IRUIRRGSUHVHUYDWLRQLQVWHDGVLQFHFDQVDUHFKHDSHUDQGTXLFNHUWRPDNH
DQG PXFK OHVV IUDJLOH WKDQ JODVV MDUV VR JODVV MDUV QR ORQJHU VHUYH WKH
IXQFWLRQ RI IRRG SUHVHUYDWLRQ LQ RXU WLPH DOWKRXJK WKH\ KDYH UHPDLQHG
SRSXODU IRU VRPH KLJKYDOXH SURGXFWV $QG WKH UHYHUVH GLUHFWLRQ DOVR
KROGVWUXH
7HFKQLTXHV)DVW)RRGDQGWKH)RRG,QGXVWU\
$ JRRG ZD\ WR HYDOXDWH WKH SRVVLELOLW\ RU LPSRVVLELOLW\ DQG
GHVLUDELOLW\ RU XQGHVLUDELOLW\ RI WHFKQLTXHV IURP WKH SHUVSHFWLYH RI
VRFLHW\LVWRH[SORUHWHFKQLTXHVIDVWIRRGDQGWKHIRRGLQGXVWU\
7KHWHUPIDVWIRRGUHIHUVWRIRRGWKDWFDQEHSUHSDUHGDQGVHUYHG
YHU\TXLFNO\:KLOHDQ\PHDOZLWKORZSUHSDUDWLRQWLPHFDQEHFRQVLGHUHG
WR EH IDVW IRRG W\SLFDOO\ WKH WHUP UHIHUV WR IRRG VROG LQ D UHVWDXUDQW RU
VWRUHZLWKSUHKHDWHGRUSUHFRRNHGLQJUHGLHQWVDQGVHUYHGWRWKHFXVWRPHU
LQDSDFNDJHGIRUPIRUWDNHRXWWDNHDZD\:.]
)DVW)RRG+LVWRU\
7KH LGHD RI IDVW IRRG DV UHDG\FRRNHG IRRG IRU VDOH LV FORVHO\
FRQQHFWHGZLWKXUEDQGHYHORSPHQW:.]
)RU LQVWDQFH LQ $QFLHQW 5RPH FLWLHV KDG VWUHHW VWDQGV WKDW VROG
EUHDG VDXVDJHV DQG ZLQH ,Q WKH FLWLHV RI 5RPDQ DQWLTXLW\ PXFK RI WKH
XUEDQSRSXODWLRQOLYLQJLQLQVXODHPXOWLVWRU\DSDUWPHQWEORFNVGHSHQGHG
&KDSWHU7HFKQLTXHVDQGWKHLU'XDO6LGHV
RQIRRGYHQGRUVIRUPXFKRIWKHLUPHDOV,QWKHPRUQLQJVEUHDGVRDNHGLQ
ZLQHZDVHDWHQDVDTXLFNVQDFNDQGFRRNHGYHJHWDEOHVDQGVWHZVODWHULQ
WKHGD\DWDSRSLQDDVLPSOHW\SHRIHDWLQJHVWDEOLVKPHQW,QWKH0LGGOH
$JHV ODUJH WRZQV DQG PDMRU XUEDQ DUHDV VXFK DV /RQGRQ DQG 3DULV
VXSSRUWHG QXPHURXV YHQGRUV WKDW VROG GLVKHV VXFK DV SLHV SDVWLHV IODQV
ZDIIOHV ZDIHUV SDQFDNHV DQG FRRNHG PHDWV $V LQ 5RPDQ FLWLHV GXULQJ
DQWLTXLW\PDQ\RIWKHVHHVWDEOLVKPHQWVFDWHUHGWRWKRVHZKRGLGQRWKDYH
PHDQV WR FRRN WKHLU RZQ IRRG SDUWLFXODUO\ VLQJOH KRXVHKROGV 8QOLNH
ULFKHU WRZQ GZHOOHUV PDQ\ RIWHQ FRXOG QRW DIIRUG KRXVLQJ ZLWK NLWFKHQ
IDFLOLWLHVDQGWKXVUHOLHGRQIDVWIRRG7UDYHOOHUVDVZHOOVXFKDVSLOJULPV
HQ URXWH WR D KRO\ VLWH ZHUH DPRQJ WKH FXVWRPHUV :. ] -
6WDPEDXJK0&DUOLQJ
,Q PRGHUQ WLPHV HVSHFLDOO\ LQ WKH 8QLWHG 6WDWHV DV DXWRPRELOHV
EHFDPH SRSXODU DQG PRUH DIIRUGDEOH IROORZLQJ WKH )LUVW :RUOG :DU
GULYHLQ UHVWDXUDQWV ZHUH LQWURGXFHG 7KH $PHULFDQ FRPSDQ\ :KLWH
&DVWOHIRXQGHGE\%LOO\,QJUDPDQG:DOWHU$QGHUVRQLQ:LFKLWD.DQVDV
LQLVJHQHUDOO\FUHGLWHGZLWKRSHQLQJWKHVHFRQGIDVWIRRGRXWOHWDQG
ILUVW KDPEXUJHU FKDLQ VHOOLQJ KDPEXUJHUV IRU ILYH FHQWV HDFK :DOWHU
$QGHUVRQ KDG EXLOW WKH ILUVW :KLWH &DVWOH UHVWDXUDQW LQ :LFKLWD LQ
LQWURGXFLQJ WKH OLPLWHG PHQX KLJK YROXPH ORZ FRVW KLJK VSHHG
KDPEXUJHU UHVWDXUDQW $PRQJ LWV LQQRYDWLRQV WKH FRPSDQ\ DOORZHG
FXVWRPHUV WR VHH WKH IRRG EHLQJ SUHSDUHG :KLWH &DVWOH ZDV VXFFHVVIXO
IURPLWVLQFHSWLRQDQGVSDZQHGQXPHURXVFRPSHWLWRUV:.]135
-)DUUHOO
/DWHU IUDQFKLVLQJ ZDV LQWURGXFHG LQ E\ $ : 5RRW %HHU
ZKLFK IUDQFKLVHG LWV GLVWLQFWLYH V\UXS +RZDUG -RKQVRQ
V ILUVW IUDQFKLVHG
WKH UHVWDXUDQW FRQFHSW LQ WKH PLGV IRUPDOO\ VWDQGDUGL]LQJ PHQXV
VLJQDJHDQGDGYHUWLVLQJ:.]
)DVW)RRG2XWOHWV
)DVWIRRGFDQFRPHLQGLIIHUHQWRXWOHWVNQRZQDVWDNHDZD\RUWDNH
RXWSURYLGHUVRIWHQZLWKD
GULYHWKURXJK
VHUYLFHZKLFKDOORZVFXVWRPHUV
WRRUGHUDQGSLFNXSIRRGIURPWKHLUFDUVEXWPRVWDOVRKDYHDVHDWLQJDUHD
LQZKLFKFXVWRPHUVFDQHDWWKHIRRGRQWKHSUHPLVHV:.]
+RZHYHUIDVW IRRGKDVEHHQGHVLJQHGWREHHDWHQ
RQWKH JR
RIWHQ
GRHVQRWUHTXLUHWUDGLWLRQDOFXWOHU\DQGLVHDWHQDVDILQJHUIRRG&RPPRQ
PHQXLWHPVDW IDVWIRRGRXWOHWVLQFOXGHILVKDQGFKLSVVDQGZLFKHVSLWDV
KDPEXUJHUVIULHGFKLFNHQIUHQFKIULHVFKLFNHQQXJJHWVWDFRVSL]]DKRW
GRJV DQG LFH FUHDP DOWKRXJK PDQ\ IDVW IRRG UHVWDXUDQWV RIIHU
VORZHU
IRRGVOLNHFKLOLPDVKHGSRWDWRHVDQGVDODGV:.]
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
D)LOOLQJ6WDWLRQV
$JRRGH[DPSOHLVDILOOLQJVWDWLRQLQWKDWPDQ\SHWUROJDVVWDWLRQV
KDYHFRQYHQLHQFHVWRUHVZKLFKVHOOSUHSDFNDJHGVDQGZLFKHVGRXJKQXWV
DQGKRWIRRG0DQ\JDVVWDWLRQVLQWKH8QLWHG6WDWHVDQG(XURSHDOVRVHOO
IUR]HQ IRRGV DQG KDYH PLFURZDYHV RQ WKH SUHPLVHV LQ ZKLFK WR SUHSDUH
WKHP:.]
E6WUHHW9HQGRUVDQG&RQFHVVLRQV
$QRWKHUJRRGH[DPSOHKDVWRGRVWUHHWYHQGRUVDQGFRQFHVVLRQVLQ
WKDW WUDGLWLRQDO VWUHHW IRRG LV DYDLODEOH DURXQG WKH ZRUOG XVXDOO\ IURP
VPDOO RSHUDWRUV DQG LQGHSHQGHQW YHQGRUV RSHUDWLQJ IURP D FDUW WDEOH
SRUWDEOH JULOO RU PRWRU YHKLFOH &RPPRQ H[DPSOHV LQFOXGH 9LHWQDPHVH
QRRGOH YHQGRUV 0LGGOH (DVWHUQ IDODIHO VWDQGV 1HZ <RUN &LW\ KRW GRJ
FDUWVDQGWDFRWUXFNV7XUR7XURYHQGRUV7DJDORJ IRUSRLQWSRLQWDUHD
IHDWXUHRI3KLOLSSLQHOLIH&RPPRQO\VWUHHWYHQGRUVSURYLGHDFRORUIXODQG
YDU\LQJ UDQJH RI RSWLRQV GHVLJQHG WR TXLFNO\ FDSWLYDWH SDVVHUVE\ DQG
DWWUDFWDVPXFKDWWHQWLRQDVSRVVLEOH:.]
,Q IDFW GHSHQGLQJ RQ WKH ORFDOH PXOWLSOH VWUHHW YHQGRUV PD\
VSHFLDOL]H LQ VSHFLILF W\SHV RI IRRG FKDUDFWHULVWLF RI D JLYHQ FXOWXUDO RU
HWKQLFWUDGLWLRQ,QVRPHFXOWXUHVLWLVW\SLFDOIRUVWUHHWYHQGRUVWRFDOORXW
SULFHVVLQJRUFKDQWVDOHVSLWFKHVSOD\PXVLFRUHQJDJHLQRWKHUIRUPVRI
VWUHHWWKHDWULFV
LQRUGHUWRHQJDJHSURVSHFWLYHFXVWRPHUV,QVRPHFDVHV
WKLVFDQJDUQHUPRUHDWWHQWLRQWKDQWKHIRRG:.]
)DVW)RRG&XLVLQH
)DVWIRRGKDVLWVRZQGLVWLQFWLYHFXLVLQHLQWKDWQRGHUQFRPPHUFLDO
IDVW IRRG LV RIWHQ KLJKO\ SURFHVVHG DQG SUHSDUHG LQ DQ LQGXVWULDO IDVKLRQ
LH RQ D ODUJH VFDOH ZLWK VWDQGDUG LQJUHGLHQWV DQG VWDQGDUGL]HG FRRNLQJ
DQGSURGXFWLRQPHWKRGV:.]
,Q JHQHUDO LW LV XVXDOO\ UDSLGO\ VHUYHG LQ FDUWRQV RU EDJV RU LQ D
SODVWLF ZUDSSLQJ LQ D IDVKLRQ ZKLFK PLQLPL]HV FRVW ,Q PRVW IDVW IRRG
RSHUDWLRQV PHQX LWHPV DUH JHQHUDOO\ PDGH IURP SURFHVVHG LQJUHGLHQWV
SUHSDUHGDWDFHQWUDOVXSSO\IDFLOLW\DQGWKHQVKLSSHGWRLQGLYLGXDORXWOHWV
ZKHUHWKH\DUHUHKHDWHGFRRNHGXVXDOO\E\PLFURZDYHRUGHHSIU\LQJRU
DVVHPEOHG LQ D VKRUW DPRXQW RI WLPH 7KLV SURFHVV HQVXUHV D FRQVLVWHQW
OHYHO RI SURGXFW TXDOLW\ DQG LV NH\ WR EHLQJ DEOH WR GHOLYHU WKH RUGHU
TXLFNO\ WR WKH FXVWRPHU DQG HOLPLQDWH ODERU DQG HTXLSPHQW FRVWV LQ WKH
LQGLYLGXDOVWRUHV:.]
+RZHYHUWKHUHDUHGLIIHUHQWIRUPVRIIDVWIRRGLQWKH:HVWHUQZRUOG
HVSHFLDOO\ LQ WKH 8QLWHG 6WDWHV MXVW FRQVLGHU WKH IROORZLQJ YDULDQWV RI
IDVWIRRGDVGHVFULEHGEHORZDQGVXPPDUL]HGLQ7DEOH
&KDSWHU7HFKQLTXHVDQGWKHLU'XDO6LGHV
D&KLQHVH7DNHDZD\
,Q WKH VWDWHV &KLQHVH WDNHDZD\WDNHRXW UHVWDXUDQWV DUH SDUWLFXODUO\
SRSXODU 7KH\ QRUPDOO\ RIIHU D ZLGH YDULHW\ RI $VLDQ IRRG QRW DOZD\V
&KLQHVHZKLFKKDVQRUPDOO\EHHQIULHG0RVWRSWLRQVDUHVRPHIRUPRI
QRRGOHV ULFH RU PHDW ,Q VRPH FDVHV WKH IRRG LV SUHVHQWHG DV D
VP|UJnVERUGVRPHWLPHVVHOIVHUYLFH7KHFXVWRPHUFKRRVHVWKHVL]HRIWKH
FRQWDLQHUWKH\ ZLVK WREX\DQGWKHQLV IUHHWRILOOLW ZLWK WKHLUFKRLFHRI
IRRG,WLVFRPPRQWRFRPELQHVHYHUDORSWLRQVLQRQHFRQWDLQHUDQGVRPH
RXWOHWV FKDUJH E\ ZHLJKW UDWKHU WKDQ E\ LWHP 0DQ\ RI WKHVH UHVWDXUDQWV
RIIHUIUHHGHOLYHU\IRUSXUFKDVHVRYHUDPLQLPXPDPRXQW:.]
E6XVKL
7KH-DSDQHVHIDVWIRRGOLNHVXVKLKDVVHHQUDSLGO\ULVLQJSRSXODULW\LQ
UHFHQW WLPHV $ IRUP RI IDVW IRRG FUHDWHG LQ -DSDQ ZKHUH EHQW LV WKH
-DSDQHVH HTXLYDOHQW RI IDVW IRRG VXVKL LV QRUPDOO\ FROG VWLFN\ ULFH
IODYRUHG ZLWK D VZHHW ULFH YLQHJDU DQG VHUYHG ZLWK VRPH WRSSLQJ RIWHQ
ILVK RU DV LQ WKH PRVW SRSXODU NLQG LQ WKH :HVW UROOHG LQ QRUL GULHG
ODYHU ZLWK ILOOLQJ7KH ILOOLQJRIWHQLQFOXGHV ILVKFKLFNHQ RUFXFXPEHU
:.]
F3L]]D
3L]]DLVDOVRDFRPPRQIDVWIRRGFDWHJRU\LQWKH8QLWHG6WDWHVZLWK
FKDLQVVXFKDV3DSD-RKQ
V'RPLQR
V3L]]D6EDUURDQG3L]]D+XW0HQXV
DUH PRUHOLPLWHGDQGVWDQGDUGL]HGWKDQLQWUDGLWLRQDOSL]]HULDVDQGSL]]D
GHOLYHU\RIWHQZLWKDWLPHFRPPLWPHQWLVRIIHUHG:.]
G.HEDE
7KH 0LGGOH (DVWHUQ YDULDQW RI IDVW IRRG LV NHEDE HVSHFLDOO\ IURP
7XUNH\DQG/HEDQRQ0HDWLVVKDYHQIURPDURWLVVHULHDQGLVVHUYHGRQD
ZDUPHG IODWEUHDG ZLWK VDODG DQG D FKRLFH RI VDXFH DQG GUHVVLQJ 7KHVH
GRQHU NHEDEV RU VKDZDUPDV DUH GLVWLQFW IURP VKLVK NHEDEV VHUYHG RQ
VWLFNV .HEDE VKRSV DUH DOVR IRXQG WKURXJKRXW WKH ZRUOG HVSHFLDOO\
(XURSH1HZ=HDODQGDQG$XVWUDOLDEXWWKH\JHQHUDOO\DUHOHVVFRPPRQLQ
WKH86:.]
)DVW)RRG,QGXVWU\
:LWK WKHVH YDULDQWV RI IDVW IRRG LQ PLQGWKH 8QLWHG 6WDWHV DFWXDOO\
KDV WKH ODUJHVW IDVW IRRG LQGXVWU\ LQ WKH ZRUOG DQG $PHULFDQ IDVW IRRG
UHVWDXUDQWV DUH ORFDWHG LQ RYHU FRXQWULHV $SSUR[LPDWHO\ PLOOLRQ
86 ZRUNHUV DUH HPSOR\HG LQ WKH DUHDV RI IRRG SUHSDUDWLRQ DQG IRRG
VHUYLFLQJLQFOXGLQJIDVWIRRGLQWKH86$:.]
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7KH 86 %XUHDX RI /DERU 6WDWLVWLFV UHSRUWHG WKDW DERXW PLOOLRQ
86ZRUNHUVDUHHPSOR\HGLQIRRGSUHSDUDWLRQDQGVHUYLQJLQFOXGLQJIDVW
IRRGDVRI7KH%/6
VSURMHFWHGMRERXWORRNH[SHFWVDYHUDJHJURZWK
DQG H[FHOOHQW RSSRUWXQLW\ DV D UHVXOW RI KLJK WXUQRYHU :. ]
86%/6
%\ WKH JOREDO IDVW IRRG PDUNHW JUHZ E\ DQG UHDFKHG D
YDOXHRIELOOLRQDQGD YROXPHRIELOOLRQWUDQVDFWLRQV,Q,QGLD
DORQHWKHIDVWIRRGLQGXVWU\LVJURZLQJE\D\HDU:.]
,QIDFWWKHFDVHRI0F'RQDOGVLVWHOOLQJEHFDXVHLWLVORFDWHGLQ
FRXQWULHVRQFRQWLQHQWVDQGRSHUDWHVRYHUUHVWDXUDQWVZRUOGZLGH
2Q -DQXDU\ 0F'RQDOGV RSHQHG D UHVWDXUDQW LQ 0RVFRZ DQG
EURNHRSHQLQJGD\UHFRUGVIRUFXVWRPHUVVHUYHG7KH0RVFRZUHVWDXUDQW
LVWKHEXVLHVWLQWKHZRUOG7KHODUJHVW0F'RQDOGVLQWKHZRUOGLVORFDWHG
LQ2UODQGR)ORULGD86$:.]%%&
$QG%XUJHU.LQJKDVPRUHWKDQUHVWDXUDQWVLQPRUHWKDQ
FRXQWULHV .)& LV ORFDWHG LQ FRXQWULHV 6XEZD\ LV RQH RI WKH IDVWHVW
JURZLQJIUDQFKLVHVLQWKHZRUOGZLWKDSSUR[LPDWHO\UHVWDXUDQWVLQ
FRXQWULHVDVRI0D\>ZLWK@WKHILUVWQRQ86ORFDWLRQRSHQLQJLQ
'HFHPEHULQ%DKUDLQ3L]]D+XWLVORFDWHGLQFRXQWULHVZLWK
ORFDWLRQVLQ &KLQD7DFR%HOOKDVUHVWDXUDQWVORFDWHGLQFRXQWULHV
EHVLGHVWKH8QLWHG6WDWHV:.]
3UREOHPVZLWK)DVW)RRGDQGWKH)RRG,QGXVWU\
+RZHYHU IRU WKH FULWLFV IDVW IRRG DQG WKH IRRG LQGXVWU\ KDYH VRPH
PDMRU SUREOHPV &RQVLGHU IRU LOOXVWUDWLRQ D IHZ H[DPSOHV EHORZ DV
VXPPDUL]HGLQ7DEOH
)LUVWO\RQHPDLQFULWLFLVPRIIDVWIRRGLVWKDWLWKDVQHJDWLYHKHDOWK
HIIHFWV
)RUH[DPSOHIRUWKHFULWLFVDVWXG\GRQHLQ-HGGDKVKRZHGWKDWWKH
FXUUHQW GLHWDU\ KDELW >UHODWHG WR IDVW IRRG@ LV UHODWHG WR WKH LQFUHDVH RI
RYHUZHLJKW DQG REHVH DPRQJ DGROHVFHQWV LQ 6DXGL $UDELD :. ]
6 :DVKL $QRWKHU VWXG\ E\ (ULF 6FKORVVHU DOVR OLQNHG
LQFUHDVHGREHVLW\LQ&KLQDDQG-DSDQZLWKWKHDUULYDORIIDVWIRRG:.
LL
6HFRQGO\DQRWKHUPDLQFULWLFLVPRIIDVWIRRGLVWKDWLWLVUHVHQWHGE\
VRPHORFDOFRQVHUYDWLYHVDVDIRUPRIFXOWXUDOLPSHULDOLVP
)RU LQVWDQFH IRU WKH FULWLFV IDVW IRRG FKDLQV KDYH FRPH XQGHU
FULWLFLVP RYHU FRQFHUQVRI FXOWXUDO GHJUDGDWLRQ YLD VKLIWV LQ SHRSOH
V
HDWLQJSDWWHUQVDZD\IURPWUDGLWLRQDOIRRGV:.]
7KLUGO\VWLOODQRWKHUPDLQFULWLFLVPRIWKHIDVWIRRGLQGXVWU\LVWKDWLW
LVGRPLQDWHGE\DIHZPXOWLQDWLRQDOFRUSRUDWLRQV
&KDSWHU7HFKQLTXHVDQGWKHLU'XDO6LGHV
)RULQVWDQFHLQ)DVW)RRG1DWLRQ7KH'DUN6LGHRIWKH$OO$PHULFDQ
0HDO (ULF 6FKORVVHU H[SODLQV WKH WUDQVIRUPDWLRQ IURP FRXQWOHVV
LQGHSHQGHQW UHVWDXUDQWV WR D IHZ XQLIRUP IUDQFKLVHV+H VHHV WKDW
UHGXFWLRQV LQ FRUSRUDWH WD[DWLRQ KDYH FRPH DW WKH H[SHQVH RI VFKRRO
IXQGLQJ WKHUHE\ SUHVHQWLQJ PDQ\ FRUSRUDWLRQV ZLWK WKH RSSRUWXQLW\ IRU
VSRQVRUVKLS ZLWK WKRVH VDPH VFKRROV $FFRUGLQJ WR KLV VRXUFHV RI
VSRQVRUHG WH[WERRNV FRQWDLQ PDWHULDO WKDW LV ELDVHG LQ IDYRU RI WKH
VSRQVRUV DQG RI KLJK VFKRROV RIIHU IDVW IRRGV LQ WKHLU FDIHWHULDV
:.LL
)RXUWKO\DQDGGLWLRQDOPDLQFULWLFLVPRIWKHIDVWIRRGLQGXVWU\LVWKDW
LWHQJDJHVLQUXWKOHVVO\PDQLSXODWLYHWDFWLFV
)RU LQVWDQFH 6FKORVVHU H[SODLQV KRZ WKH 0F'RQDOG
V &RUSRUDWLRQ
PRGHOHG LWV PDUNHWLQJ WDFWLFV RQ 7KH :DOW 'LVQH\ &RPSDQ\ ZKLFK
LQVSLUHG WKH FUHDWLRQ RI DGYHUWLVLQJ LFRQV VXFK DV 5RQDOG 0F'RQDOG DQG
KLV VLGHNLFNV 0DUNHWLQJ H[HFXWLYHV LQWHQGHG WKDW WKLV PDUNHWLQJ VKLIW
ZRXOG UHVXOW QRW RQO\ LQ DWWUDFWLQJ FKLOGUHQ EXW WKHLU SDUHQWV DQG
JUDQGSDUHQWV DV ZHOO 0RUH LPSRUWDQWO\ WKH WDFWLF ZRXOG LQVWLOO EUDQG
OR\DOW\ WKDW ZRXOG SHUVLVW WKURXJK DGXOWKRRG WKURXJK QRVWDOJLF
DVVRFLDWLRQV WR 0F'RQDOG
V 6FKORVVHU DOVR GLVFXVVHV WKH WDFWLF
V LOOV WKH
H[SORLWDWLRQRIFKLOGUHQ
VQDwYHWpDQGWUXVWLQJQDWXUHZ.LL
$QGILIWKO\DQRWKHUDGGLWLRQDOPDLQFULWLFLVPRIWKHIDVWIRRGLQGXVWU\
LVWKDWLWLVKLJKO\H[SORLWDWLYH
)RU LQVWDQFH LQ KLV H[DPLQDWLRQ RI WKH PHDW SDFNLQJ LQGXVWU\
6FKORVVHU ILQGV WKDW LW LV QRZ GRPLQDWHG E\ FDVXDO HDVLO\ H[SORLWHG
LPPLJUDQW ODERU DQG WKDW OHYHOV RI LQMXU\ DUH DPRQJ WKH KLJKHVW RI DQ\
RFFXSDWLRQLQWKH8QLWHG6WDWHV6FKORVVHUGLVFXVVHVKLVILQGLQJVRQPHDW
SDFNLQJFRPSDQLHV,%3,QFDQGRQ.HQQ\'REELQV:.LL
%H\RQG)DVW)RRGDQGWKH)RRG,QGXVWU\
+RZHYHU WKHVH FULWLFLVPV RI IDVW IRRG DQG WKH IRRG LQGXVWU\ GR QRW
HQWDLO D WRWDO UHMHFWLRQ RI WKHLU XVHIXOQHVV EXW VHUYH WR VKRZ XV WKH WZR
RSSRVLQJ VLGHV RI WKH GHEDWH VXFK WKDW WKH SRVVLELOLW\ RU LPSRVVLELOLW\
DQGGHVLUDELOLW\RUXQGHVLUDELOLW\RIWHFKQLTXHVIURPWKHSHUVSHFWLYHRI
VRFLHW\ ZLWK WHFKQLTXHV IDVW IRRG DQG WKH IRRG LQGXVWU\ DV D FDVH VWXG\
KHUH DUH QRW WR WKH H[WHQW WKDW WKH UHVSHFWLYH GHIHQGHUV ZRXOG OLNH XV WR
EHOLHYH
)XUWKHUPRUH WKH DQDO\VLV RI WHFKQLTXHV IDVW IRRG DQG WKH IRRG
LQGXVWU\UHYHDOVVRPHLPSRUWDQWOHVVRQVDERXWWKHRQWRORJLFDOSULQFLSOHVLQ
H[LVWHQWLDO GLDOHFWLFV DQG JRRG H[DPSOHV LQFOXGH WKH IRUPDOQHVV
LQIRUPDOQHVV SULQFLSOH WKH DEVROXWHQHVVUHODWLYHQHVV SULQFLSOH WKH
SDUWLDOLW\WRWDOLW\ SULQFLSOH WKH SUHGLFWDELOLW\XQSUHGLFWDELOLW\ SULQFLSOH
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
&KDSWHU7HFKQLTXHVDQGWKHLU'XDO6LGHV
H[DFWO\WKHH[WHQWWRZKLFKWKHIDVWIRRGFRUSRUDWLRQVOLNH0F'RQDOGVDQG
%XUJHU.LQJZLOOFRQWLQXHLQEXVLQHVVLQDSDUWLFXODUIXWXUHKLVWRULFDOHUD
VLQFHGLIIHUHQWRXWOHWVDQGYDULDQWVRIIDVWIRRGULVHDQGIDOOLQLWVKLVWRU\
DIRUHGHVFULEHG$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH H[SOLFDELOLW\LQH[SOLFDELOLW\ SULQFLSOH LI WKHUH LV
H[SOLFDELOLW\HJWKHH[SODQDWLRQE\WKHDGYRFDWHVRIWKHPHDWSDFNLQJ
LQGXVWU\WKDWWKHXVHRILPPLJUDQWODERXULVGHVLUDEOHEHFDXVHRILWVORZHU
FRVWWKHUHLVLQH[SOLFDELOLW\HJWKHODFNRIVXIILFLHQWH[SODQDWLRQE\WKH
DGYRFDWHV RI WKH PHDW SDFNLQJ LQGXVWU\ RI ZK\ WKH XVH RI LPPLJUDQW
ODERXU LV QHFHVVDULO\ GHVLUDEOH VLQFH IRU WKH FULWLFV OLNH 6FKORVVHU WKH
SUDFWLFV LV H[SORLWDWLYH DQG OHYHOV RI LQMXU\ >LQ WKH LQGXVWU\@ DUH DPRQJ
WKH KLJKHVW RI DQ\ RFFXSDWLRQ LQ WKH 8QLWHG 6WDWHV $QG WKH UHYHUVH
GLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH ILFWLRQUHDOLW\ SULQFLSOH LI WKHUH LV ILFWLRQ HJ WKH
ILFWLRQDO DVSHFW RI WKH 0F'RQDOG
V &RUSRUDWLRQ LQVRIDU DV LWV PLVOHDGLQJ
PDUNHWLQJWDFWLFVDUHIRUWKHH[SORLWDWLRQRIFKLOGUHQ
VQDwYHWpDQGWUXVWLQJ
QDWXUH WKHUH LV UHDOLW\ HJ WKH UHDOLVWLF DVSHFW RI WKH 0F'RQDOG
V
&RUSRUDWLRQLQVRIDUDVLWWULHVLWVEHVWWRVHOOLWVRZQIRUPVRIIDVWIRRG
$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH ILQLWHQHVVWUDQVILQLWHQHVV SULQFLSOH LI WKHUH LV
ILQLWHQHVVHJWKHILQLWHQXPEHURIWKHFDWHJRULHVRIIDVWIRRGLQKLVWRU\
EH WKH\ DERXW WKRVH LQ DQWLTXLW\ RU LQ PRGHUQ WLPHV WKHUH LV
WUDQVILQLWHQHVV HJ WKH WUDQVILQLWH QXPEHU RI DOO WKH LQGLYLGXDO LWHPV RI
IDVWIRRGLQKLVWRU\WKDWKDYHHYHUEHHQVHUYHG$QGWKHUHYHUVHGLUHFWLRQ
DOVRKROGVWUXH
,Q UHODWLRQ WR WKH SUHFLVHQHVVYDJXHQHVV SULQFLSOH LI WKHUH LV
SUHFLVHQHVVHJWKHSUHFLVHLGHQWLILFDWLRQRIPDMRUYDULDQWVRIIDVWIRRG
LQWKH86LQWKHDUWLFOHDIRUHFLWHGWKHUHLVYDJXHQHVVHJWKHYDJXHQHVV
LQWKHLGHQWLILFDWLRQRIWKHPDMRUYDULDQWVRIIDVWIRRGLQWKH86LQWKH
DUWLFOHDIRUHFLWHGVLQFHLWLVQRWFOHDUZK\WKHUHPXVWEHRQO\QRW
DQGVRRQ$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH VLPSOHQHVVFRPSOLFDWHGQHVV SULQFLSOH LI WKHUH LV
VLPSOHQHVV HJ WKH UHODWLYHO\ VLPSOH DQDO\VLV RI IDVW IRRG E\ WKH
DGYRFDWHVWKHUHLVFRPSOLFDWHGQHVVHJWKHUHODWLYHO\PRUHFRPSOLFDWHG
DQDO\VLVRIIDVWIRRGE\FKDOOHQJLQJWKHFODLPVDQGDVVXPSWLRQVDVVKRZQ
LQ WKH SUREOHPV SRLQWHG RXW E\ WKH FULWLFV DV FLWHG $QG WKH UHYHUVH
GLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHRSHQQHVVKLGGHQQHVVSULQFLSOHLIWKHUH LVRSHQQHVV
HJWKHRSHQH[SORUDWLRQRIWKHUHODWLRQVKLSEHWZHHQLPPLJUDQWODERU
DQGFKHDSODERUFRVWE\WKHPHDWSDFNLQJLQGXVWU\LQWKH86WKHUHLV
KLGGHQQHVV HJ WKH KLGGHQ ELDV LQ WKH PHDW SDFNLQJ LQGXVWU\ LQ WKH
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
86DVVKRZQLQWKHLQYHVWLJDWLRQE\6FKORVVHUZKRIRXQGWKDWOHYHOVRI
LQMXU\LQWKHPHDWSDFNLQJLQGXVWU\LQWKH86ZLWKLWVXVHRILPPLJUDQW
ODERU DUH DPRQJ WKH KLJKHVW RI DQ\ RFFXSDWLRQ LQ WKH 8QLWHG 6WDWHV
$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHGHQVHQHVVHPSWLQHVVSULQFLSOHLIWKHUHLVGHQVHQHVV
HJ WKH UHODWLYHO\ GHQVHU FRQFHQWUDWLRQ RI IDVW IRRG UHVWDXUDQWV LQ WKH
ROGHUGD\VZKHQWKHUHZHUHFRXQWOHVVLQGHSHQGHQWUHVWDXUDQWVDVIRXQG
E\ 6FKORVVHU WKHUH LV HPSWLQHVV HJ WKH UHODWLYHO\ OHVV GHQVH RU PRUH
HPSW\ FRQFHQWUDWLRQ RI IDVW IRRG UHVWDXUDQWV QRZDGD\V ZKHQ WKH\ DUH
GRPLQDWHG E\ D IHZ XQLIRUP IUDQFKLVHV OLNH WKH PXOWLQDWLRQDO
FRUSRUDWLRQVDVSRLQWHGRXWE\6FKORVVHU $QGWKHUHYHUVHGLUHFWLRQDOVR
KROGVWUXH
,QUHODWLRQWRWKHFKDQJHFRQVWDQF\SULQFLSOHLIWKHUHLVFKDQJHHJ
WKHHYHUQHZZD\VWRSURYLGHIRRGVHUYLFHVDVVKRZQLQWKHVSUHDGRIIDVW
IRRG FXLVLQH QRZDGD\V WKHUH LV FRQVWDQF\ HJ WKH HYHU FRQVWDQW
H[LVWHQFH RI GLIIHUHQW SUREOHPV LQ WKH HYHU QHZ ZD\V WR SURYLGH IRRG
VHUYLFHV DV VKRZQ LQ WKH SUREOHPV ZLWK WKH VSUHDG RI IDVW IRRG FXLVLQH
QRZDGD\VSRLQWHGRXWE\WKHFULWLFV$QGWKHUHYHUVHGLUHFWLRQDOVRKROGV
WUXH
,QUHODWLRQWRWKHRUGHUFKDRVSULQFLSOHLIWKHUHLVRUGHUHJWKHPRUH
RU OHVV RUGHUO\ UHDOLW\ RI IDVW IRRG VHUYLFHV LI ORRNHG IURP WKH YDQWDJH
SRLQW RI WKH ULVH RI D IHZ PXOWLQDWLRQDO FRUSRUDWLRQV ZKLFK GRPLQDWH WKH
IDVW IRRG LQGXVWU\ LQ RXU DJH RI JOREDOL]DWLRQ ZLWK WKHLU XQLIRUP
SUHGLFWDEOHVHUYLFHVWKHUHLVFKDRVHJWKH PRUHRUOHVVFKDRWLFUHDOLW\
RI IDVW IRRG VHUYLFHV LI ORRNHG IURP WKH YDQWDJH SRLQW RI QXPHURXV
GLIIHUHQW RXWOHWV DQG IRUPV RI IDVW IRRG LQ GLIIHUHQW FXOWXUHV DW GLIIHUHQW
WLPHV LQ KLVWRU\ ZLWK GLIIHUHQW VWDQGDUGV EHIRUH WKH ULVH RI WKH IDVW IRRG
LQGXVWU\LQRXUWLPH$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH VORZQHVVTXLFNQHVV SULQFLSOH LI WKHUH LV VORZQHVV
HJWKHUHODWLYHO\VORZHUVSHHGRIIRRGWREHSURFHVVHGDQGUHDG\WREH
VHUYHGOLNHWKHWUDGLWLRQDOIRRGFRRNHGDWKRPHWKHUHLVTXLFNQHVVHJ
WKHUHODWLYHO\TXLFNHUVSHHGRIIRRGWREHSURFHVVHGDQGUHDG\WREHVHUYHG
LQIDVWIRRGRXWOHWV$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHH[SDQVLRQFRQWUDFWLRQSULQFLSOHLIWKHUHLVH[SDQVLRQ
HJ WKH UHODWLYH VSUHDG RI WKH IDVW IRRG LQGXVWU\ QRZDGD\V WKHUH LV
FRQWUDFWLRQHJWKHUHODWLYH GHFOLQHRIWUDGLWLRQDO IRRGWREHHODERUDWHO\
FRRNHGQRZDGD\V$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH WKHRU\SUD[LV SULQFLSOH LI WKHUH LV WKHRU\ HJ WKH
WKHRUHWLFDOFRQVWUXFWLRQRIWKHLGHDRIUHDG\FRRNHGIRRGIRUVDOHLQIRRG
KLVWRU\ WKHUH LV SUD[LV HJ WKH SUDFWLFDO DSSOLFDWLRQ RI WKH LGHD RI
UHDG\FRRNHG IRRG IRU VDOH LQ IRRG KLVWRU\ WR WKH UHVW RI WKH ZRUOG DV
&KDSWHU7HFKQLTXHVDQGWKHLU'XDO6LGHV
VKRZQE\WKHQXPEHUVWKDW%XUJHU.LQJKDVPRUHWKDQUHVWDXUDQWV
LQPRUHWKDQFRXQWULHV.)&LVORFDWHGLQFRXQWULHV6XEZD\LV
RQH RI WKH IDVWHVW JURZLQJ IUDQFKLVHV LQ WKH ZRUOG ZLWK DSSUR[LPDWHO\
UHVWDXUDQWVLQFRXQWULHVDVRI0D\3L]]D+XWLVORFDWHG
LQFRXQWULHVHWF$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHFRQYHQWLRQQRYHOW\SULQFLSOHLIWKHUHLVFRQYHQWLRQ
HJWKHFRQYHQWLRQDOZLVGRPRIVHOOLQJIDVWIRRGE\VWUHHWYHQGRUVLQWKH
ROGHU GD\V WKHUH LV QRYHOW\ HJ WKH DOWHUQDWLYH QRYHO FKDOOHQJH WR WKH
FRQYHQWLRQDOZLVGRPDERXWVHOOLQJIDVWIRRGE\VWUHHWYHQGRUVLQWKHROGHU
GD\V E\ WKH QHZ LGHD RI GULYHLQ UHVWDXUDQWV QRZDGD\V ZKHQ
DXWRPRELOHV EHFDPH SRSXODU DQG PRUH DIIRUGDEOH IROORZLQJ WKH )LUVW
:RUOG:DU$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH HYROXWLRQWUDQVIRUPDWLRQ SULQFLSOH LI WKHUH LV
HYROXWLRQHJWKH QDWXUDOHYROXWLRQRIKXPDQVWRHDWE\ IRUDJLQJLQWKH
VWDWH RI QDWXUH LQ D SULPLWLYH ZD\ WKHUH LV WUDQVIRUPDWLRQ HJ WKH
WHFKQLFDO WUDQVIRUPDWLRQ RI KXPDQ DELOLW\ WR HDW E\ WKH LQYHQWLRQ RI WKH
IDVWIRRGLQGXVWU\LQRXUWLPHRIJOREDOL]DWLRQ$QGWKHUHYHUVHGLUHFWLRQ
DOVRKROGVWUXH
,QUHODWLRQWRWKHV\PPHWU\DV\PPHWU\SULQFLSOHLIWKHUHLVV\PPHWU\
HJ WKH FRH[LVWHQFH RI GLIIHUHQW UHVWDXUDQWV WKHUH LV DV\PPHWU\ HJ
WKHIDVWIRRGLQGXVWU\LVQRZGRPLQDWHGE\DIHZXQLIRUPIUDQFKLVHVDV
SRLQWHGRXWE\6FKORVVHU$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHVRIWQHVVKDUGQHVVSULQFLSOHLIWKHUHLVVRIWQHVVHJ
WKHJORULILFDWLRQRI IDVW IRRGE\0F'RQDOGVWKHUHLVKDUGQHVVHJWKH
FULWLTXH RI IDVW IRRG E\ 6FKORVVHU $QG WKH UHYHUVH GLUHFWLRQ DOVR KROGV
WUXH
,Q UHODWLRQ WR WKH VHULRXVQHVVSOD\IXOQHVV SULQFLSOH LI WKHUH LV
VHULRXVQHVVHJWKHVHULRXV EXVLQHVVRIWKRVH ZKRSURYLGHIDVWIRRGIRU
VDOHWKHUHLVSOD\IXOQHVVHJWKHSOD\IXOSDUWRIWKRVHZKRSURYLGHIDVW
IRRGIRUVDOHZKHQWKH\SOD\DURXQGZLWKGLIIHUHQWYDULDQWVDQGRXWOHWVRI
IDVWIRRGRYHUWKHFHQWXULHV$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHDFWLYHQHVVLQDFWLYHVVSULQFLSOHLIWKHUHLVDFWLYHQHVV
HJ WKH DFWLYHQHVV RI WKRVH LPPLJUDQW ODERUHUV ZKR ZRUN IRU WKH PHDW
SDFNLQJ LQGXVWU\ LQ WKH 86 WKHUH LV LQDFWLYHQHVV HJ WKH UHODWLYH
LQDFWLYHQHVV RI WKRVH LPPLJUDQW ODERUHUV ZKR FDQQRW ZRUN IRU WKH PHDW
SDFNLQJ LQGXVWU\ LQ WKH 86 EHFDXVH WKH\ JHW LQMXUHG RQ WKH MRE VLQFH
OHYHOVRILQMXU\>LQWKHLQGXVWU\@DUHDPRQJWKHKLJKHVWRIDQ\RFFXSDWLRQ
LQ WKH 8QLWHG 6WDWHV DV IRXQG RXW E\ 6FKORVVHU $QG WKH UHYHUVH
GLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHVHOIQHVVRWKHUQHVVSULQFLSOHLIWKHUHLVVHOIQHVVHJ
WKHWHQGHQF\WREHPRVWO\FHQWHUHGRQRQHVVHOIRUJURXSDVVKRZQLQWKH
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
JUHHG\SUDFWLFHE\WKHPHDWSDFNLQJLQGXVWU\LQWKH86WRH[SORLWFKHDS
LPPLJUDQW ODERU WKHUH LV RWKHUQHVV HJ WKH WHQGHQF\ WR EH PRVWO\
FHQWHUHGRQRWKHUVDVVKRZQLQVRPHUHVHDUFKHUVZKRZDQWWRILQGRXWWKH
JUHHG\PDOSUDFWLFHRIWKHPHDWSDFNLQJLQGXVWU\LQWKH86IRUWKHIXUWKHU
HQKDQFHPHQWRIVRFLDOZHOIDUH$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH UHJUHVVLRQSURJUHVVLRQ SULQFLSOH LI WKHUH LV
UHJUHVVLRQ HJ WKH UHJUHVVLRQ PDGH E\ WKH IRRG LQGXVWU\ DV VKRZQ LQ
WKH SUREOHPV SRLQWHG RXW E\ WKH FULWLFV WKHUH LV SURJUHVVLRQ HJ WKH
SURJUHVV PDGH E\ WKH IRRG LQGXVWU\ DV VKRZQ LQ LWV FRQWULEXWLRQ WR IDVW
IRRGVHUYLFHVDIRUHFLWHG$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH VDPHGLIIHUHQFH SULQFLSOH LI WKHUH LV VLPLODULW\ LQ
RXWFRPH HJ WKH FRQWULEXWLRQ WR WKH PROGLQJ DQG FRQWURO RI EHOLHIV
YDOXHVDQGEHKDYLRUVUHJDUGOHVVRI ZKHWKHUWKLVEHGRQHE\WKHUHOLDQFH
RQIDVWIRRGRUE\WKHUHOLDQFHRQKRPHPDGHIRRGWKHUHLVGLIIHUHQFHLQ
RXWFRPH HJ WKH FRQWULEXWLRQ WR WKH PROGLQJ DQG FRQWURO RI EHOLHIV
YDOXHV DQG EHKDYLRUV E\ WKH UHOLDQFH RQ IDVW IRRG IRU D UHODWLYHO\ PRUH
XUEDQ OLIHZRUOGEXW WKH FRQWULEXWLRQ WR WKH PROGLQJ DQG FRQWURO RI
EHOLHIV YDOXHV DQG EHKDYLRUV E\ WKH UHOLDQFH RQ KRPHPDGH IRRG IRU D
UHODWLYHO\ PRUH DJULFXOWXUDO OLIHZRUOG $QG WKH UHYHUVH GLUHFWLRQ DOVR
KROGVWUXH
,QUHODWLRQWRWKHVWDELOLW\UHDFWLRQSULQFLSOHLIWKHUHLVVWDELOLW\HJ
WKHUHODWLYHO\PRUHVWDEOHFRQGLWLRQRIKRPHPDGHIRRGLQWKHROGHUGD\V
ZKHQ DJULFXOWXUH ZDV GRPLQDQW LQ DQ HFRQRP\ WKHUH LV UHDFWLRQ HJ
KRPHPDGH IRRG LQ WKH ROGHU GD\V WKHQ OHG WR IXUWKHU FKDQJHV ODWHU RQ
ZKHQ XUEDQ GHYHORSPHQW FRQWULEXWHG WR WKH ULVH RI IDVW IRRG $QG WKH
UHYHUVHGLUHFWLRQDOVRKROGVWUXH
$QGLQUHODWLRQWRWKHIXQFWLRQDOLW\QRQIXQFWLRQDOLW\SULQFLSOHLIWKHUH
LV IXQFWLRQ HJ WKH SUHVHQFH RI DFWLRQ IRU ZKLFK VRPHWKLQJ LV ILWWHG DV
VKRZQ LQ WKH LQVWLWXWLRQ RI KRPHPDGH IRRG LQ WKH ROGHU GD\V ZKHQ LW
VHUYHG ZHOOWKHDJULFXOWXUDOHFRQRP\WKHUHLVQRQIXQFWLRQDOLW\HJWKH
UHODWLYHODFNRIDFWLRQIRUZKLFKVRPHWKLQJLVILWWHGDVVKRZQLQWKHULVHRI
WKH IDVW IRRG LQGXVWU\ GXH WR XUEDQ GHYHORSPHQW VR WKH LQVWLWXWLRQ RI
KRPHPDGHIRRGLVQRORQJHUGRPLQDQWLQLWVIXQFWLRQIRUDSRVWLQGXVWULDO
VRFLHW\LQRXUWLPH$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
7HFKQLTXHVDQG&XOWXUH
7HFKQLTXHVZKHQH[DPLQHGIURPWKHSHUVSHFWLYHRIFXOWXUHFDQFDVW
D EULJKW OLJKW RQ WKHLU SRVVLELOLW\ RU LPSRVVLELOLW\ DQG GHVLUDELOLW\ RU
XQGHVLUDELOLW\DQGWKLVFDQEHVKRZQE\ZD\RIWZRFDVHVWXGLHVQDPHO\
WHFKQLTXHV IRRG SKRWRJUDSK\ DQG WKH DUW RI SUHVHQWDWLRQ DQG
&KDSWHU7HFKQLTXHVDQGWKHLU'XDO6LGHV
7HFKQLTXHV)RRG3KRWRJUDSK\DQGWKH$UWRI3UHVHQWDWLRQ
$Q H[FHOOHQW FDVH VWXG\ KHUH WR HYDOXDWH WKH SRVVLELOLW\ RU
LPSRVVLELOLW\ DQG GHVLUDELOLW\ RU XQGHVLUDELOLW\ RI WHFKQLTXHV IURP WKH
SHUVSHFWLYHRIFXOWXUHLVWRH[SORUHWHFKQLTXHVIRRGSKRWRJUDSK\DQGWKH
DUWRISUHVHQWDWLRQ
7KH WHUP IRRG SKRWRJUDSK\ UHIHUV WR D VWLOO OLIH VSHFLDOL]DWLRQ RI
FRPPHUFLDO SKRWRJUDSK\ DLPHG DW SURGXFLQJ DWWUDFWLYH SKRWRJUDSKV RI
IRRG IRU XVH LQ DGYHUWLVHPHQWV SDFNDJLQJ PHQXV RU FRRNERRNV
3URIHVVLRQDOIRRGSKRWRJUDSK\LVDFROODERUDWLYHHIIRUWXVXDOO\LQYROYLQJ
DQ DUW GLUHFWRU D SKRWRJUDSKHU D IRRG VW\OLVW D SURS VW\OLVW DQG WKHLU
DVVLVWDQWV:.R
)RRG6W\OHV
%HDXWLIXO IRRG SKRWRJUDSKV UHTXLUH VRPH XQGHUVWDQGLQJ RI IRRG
VW\OHV)RULQVWDQFHIRUDORQJWLPHIRRGSKRWRJUDSKVWHQGHGWREHVKRW
DQGFRPSRVHGWKH ZD\SHRSOH ZHUHXVHGWRHQFRXQWHULQJWKHLUIRRGODLG
RXWRQDWDEOHVHWWLQJDQGVKRWIURPDQRYHUKHDGSHUVSHFWLYHLHIURPWKH
SRLQWRIYLHZRIWKHHDWHU6W\OLVWVDFFRUGLQJO\DUUDQJHGWKHIRRGWRDSSHDU
JRRG IURP DERYH ZLWK WKH LWHPV DUUDQJHG IODW RQ WKH SODWH DQG FOHDUO\
VHSDUDWHGIURPHDFKRWKHU:.R/0DQQD
%XW WKLQJV FKDQJHG ODWHU RQ ZKHQ URPDQWLF OLJKWLQJ VKDOORZHU
DQJOHVDQGPRUHSURSVFDPHHQYRJXHZLWKH[WUHPHFDVHVOHDGLQJWRWKH
WHUP
IRRGSRUQ
:.R/0DQQD
7KHQ PRVW UHFHQWO\ WKH SUHYDLOLQJ WUHQG LQ :HVWHUQ FRPPHUFLDO
IRRGSKRWRJUDSK\LVWRSUHVHQWWKHIRRGDVVLPSOHFOHDQDQGQDWXUDOO\DV
SRVVLEOHDQG ZLWKOLWWOHSURSVRIWHQXVLQJHIIHFWVVXFKDVVHOHFWLYHIRFXV
WLOWHG SODWHV DQG H[WUHPH FORVHXSV 7KLV FRPSOHPHQWV WUHQGV LQ
SURIHVVLRQDO FRRNLQJ WR PDNH WKH IRRG PRUH YLVXDOO\ LQWHUHVWLQJ )RU
LQVWDQFHWKHKHLJKWRIGLVKHVWHQGVWRLQFUHDVHDQGWKHLUHOHPHQWVDUHRIWHQ
OD\HUHG ZKLFK OHQGV LWVHOI ZHOO WR QDUURZDQJOHG VKRWV :. R /
0DQQD
)RRG6W\OLVWV
%XW WKH IRRG VW\OLVW ZKR LV GRLQJ WKH VKRW FDQ KDYH D PDMRU UROH WR
SOD\WRR
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
$IWHU DOO WKH UROH RI WKH IRRG VW\OLVW LV WR PDNH WKH IRRG ORRN
DWWUDFWLYHLQWKHILQLVKHGSKRWRJUDSK7KHPDLQGLIIHUHQFHEHWZHHQKRZD
KRPH FRRN RU FKHI PD\ SUHVHQW IRRG DQG ZKDW D VW\OLVW GRHV LV WKH WLPH
DQG HIIRUW D VW\OLVW WDNHV WR FDUHIXOO\ DQG DUWIXOO\ DUUDQJH WKH IRRG $OVR
UHTXLUHGLVWKHYLVXDONQRZKRZDQGDELOLW\WRWUDQVODWHWKHSHUFHSWLRQRI
WDVWH DURPD DQG DSSHDO WKDW RQH JHWV IURP DQ DFWXDO GLVK WR D WZR
GLPHQVLRQDOSKRWRJUDSK:.R
*HQHUDOO\IRRGVW\OLVWVKDYHFXOLQDU\WUDLQLQJVRPHDUHSURIHVVLRQDO
FKHIVRUKDYHDEDFNJURXQGLQKRPHHFRQRPLFV,QDGGLWLRQWRNQRZOHGJH
RIQXWULWLRQDQGFRRNLQJWHFKQLTXHVIRRGVW\OLVWVPXVWDOVREHUHVRXUFHIXO
VKRSSHUV$VFUHDWLYHSURIHVVLRQDOVWKH\HQYLVLRQWKHILQLVKHGSKRWRJUDSK
DQGVW\OHWKHIRRGDFFRUGLQJO\:.R/0DQQD
)RRG3KRWRJUDSK\
2I FRXUVH WKLV LV HDVLHU VDLG WKDQ GRQH DV IRRG SKRWRJUDSK\ LV D
FRPSOLFDWHGSURFHVV
)RU LQVWDQFH WKH SURFHVV RI IRRG SKRWRJUDSK\ EHJLQV ZLWK WKH
SXUFKDVH RI WKH IRRG DQG LQJUHGLHQWV %HFDXVH RQO\ WKH PRVW YLVXDOO\
SHUIHFW IRRGVWXIIV DUH DFFHSWDEOH DQG PXOWLSOH EDFNXS RU WHVW LWHPV DUH
XVXDOO\QHHGHGWKLVLVDYHU\WLPHFRQVXPLQJSURFHVV7KHEHVWORRNLQJRI
WKHSXUFKDVHGLWHPVLVVHOHFWHGDQGPDUNHGDVWKH
KHUR
LHWKHLWHPWKDW
ZLOOEHIHDWXUHGLQWKHSKRWRJUDSK'XULQJWKHVHWXSDQGIRUWHVWVKRRWVLW
LVUHSUHVHQWHGE\DFDUGERDUGVWDQGLQ:.R/%HOOLQJKDP
7KHQ WKH DFWXDO SKRWRJUDSK\ FDQ WDNH SODFH LQ D VWXGLR XQGHU
FRQWUROOHG OLJKWLQJ FRQGLWLRQV RU XQGHU QDWXUDO OLJKW 7KH OLJKW
EDFNJURXQGDQGVHWWLQJLVFDUHIXOO\SUHSDUHGVRDVWRSUHVHQWWKHIRRGLQDQ
DV DWWUDFWLYH ZD\ DV SRVVLEOH ZLWKRXW GLVWUDFWLQJ IURP LW 7KH FRORU DQG
WH[WXUHRIWKHEDFNJURXQGLVVHOHFWHGVRDVWRHIIHFWLYHO\FRPSOHPHQWWKDW
RI WKH IRRG DQG WR DVVLVW ZLWK LWV OLJKWLQJ :. R / %HOOLQJKDP
$IWHU WKH VKRW VW\OHG IRRG LV XVXDOO\ PDUNHG DV LQHGLEOH DQG
GLVFDUGHGDIWHUWKHVKRRWEHFDXVHLWPD\KDYHEHHQKDQGOHGRUWUHDWHGLQ
ZD\V WKDW PDNH LW XQVDIH IRU FRQVXPSWLRQ :. R / %HOOLQJKDP
)RRG6W\OH7HFKQTLXHV
7KHDFWXDOVW\OLVWWHFKQLTXHVWKDWDIRRGSKRWRJUDSKHUXVHVFDQYDU\RI
FRXUVH DQG KHUHDIWHU DUH VRPH H[DPSOHV RI WHFKQLTXHV WR PDNH DSSHDU
WKH IRRG DV DWWUDFWLYH DV SRVVLEOH DV VXPPDUL]HG LQ 7DEOH :.
R
&KDSWHU7HFKQLTXHVDQGWKHLU'XDO6LGHV
([ FUHDWLQJ VWHDP ZLWK FRRO DLU QHEXOL]HUV RU D FRPELQDWLRQ RI
FKHPLFDOVWKDWJLYHRIIVPRNHWKDWJLYHVWKHDSSHDUDQFHRIVWHDP
([ VSUD\LQJ IRRG ZLWK ZDWHU RU PL[WXUHV RI ZDWHU FRUQ V\UXS RU
RWKHUOLTXLGVWRNHHSIRRGORRNLQJIUHVK
([PDNLQJDPL[WXUHRIVROLGVKRUWHQLQJFRUQV\UXSDQGSRZGHUHG
VXJDUHVVHQWLDOO\DYHU\VWLIIIURVWLQJWKDWFDQEHVFRRSHGWRVLPXODWH
UHDOLFHFUHDP
([ XVLQJ D YDULHW\ RI EURZQLQJ DJHQWV XVXDOO\ PL[WXUHV XVHG WR
EURZQJUDYLHVRUVRPHWLPHVKHDWDFWLYDWHGOLTXLGVXVHGLQFRPPHUFLDO
EDNHULHV WR HQKDQFH WKH FRORUEURZQQHVV RI FRRNHG PHDWV DQG
SRXOWU\
([XVLQJKHDY\FUHDPLQVWHDGRIPLONLQERZOVRIFHUHDOWRSUHYHQW
IODNHV IURP EHFRPLQJ VRJJ\ WRR TXLFNO\ 7KH XVH RI ZKLWH JOXH LV
JHQHUDOO\GLVFRXUDJHGDQGLVQRWXVXDOO\HQFRXQWHUHGDVPRVWFHUHDO
FRPSDQLHVSURKLELWWKLVSUDFWLFH
([ EODQFKLQJ JUHHQ YHJHWDEOHV WR MXVW EULQJ XS WKHLU EULJKW FRORU
UDWKHUWKDQFRRNLQJWKHPFRPSOHWHO\2WKHUYHJHWDEOHVDQGIRRGVPD\
EHFRRNHGMXVWWRFRORUVRWKH\GRQRWEURZQRUEHFRPHZULQNOHGLI
WKH\PXVWVWDQGXQGHUWKHFDPHUDIRUDZKLOH
([DGGLQJZDWHUWREHYHUDJHVVROLJKWZLOOILOWHUWKURXJKEHWWHUDQG
DGGVSDUNOHWRWKHGULQN
2IFRXUVHWKHUHDUHMXVWVRPHH[DPSOHV7KHVHWHFKQLTXHVKDYHEHHQXVHG
IRU VKRRWLQJ GLIIHUHQW SKRWRV RI GLIIHUHQW IRRGV DQG KHUHDIWHU DUH D IHZ
LOOXVWUDWLRQV
D&ROG%HYHUDJHV
,Q VKRRWLQJ FROG EHYHUDJHV LW LV QHFHVVDU\ WR FUHDWH WKH HIIHFW RI D
WKLQ OD\HU RI FRQGHQVDWLRQ IRUPLQJ RQ WKH RXWVLGH RI JODVVHV FRQWDLQLQJ
FROGOLTXLGVRGXOOLQJVSUD\PD\EHDSSOLHGZLWKSDSHURUPDVNLQJWDSH
SURWHFWLQJWKHQRQ
IURVWHG
DUHDV0RUHSURQRXQFHGFRQGHQVDWLRQDQGGHZ
GURSVDUHLPLWDWHGE\VSUD\LQJWKHJODVVZLWKFRUQV\UXSRUJO\FHULQ:.
R/%HOOLQJKDP
)RULFHFXEHVXVHGLQVKRRWVWKH\FDQEHPDGHRIDFU\OLFVRWKH\
ZRQ
WPRYHPHOWRUIORDW)UHVKORRNLQJEXEEOHVRQWKHVXUIDFHRIGULQNV
DUHFUHDWHGE\DSSO\LQJDPL[WXUHRIWKHGULQNDQGGHWHUJHQWWRWKHVXUIDFH
ZLWKDQH\HGURSSHU:KLWHJOXHPD\EHXVHGLQOLHXRIPLONDQGDPL[WXUH
RI EUHZHG FRIIHH DQG ZDWHU LQVWHDG RI WHD :. R / %HOOLQJKDP
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
E6DODGV
,Q VKRRWLQJ VDODGV IRRG SKRWRJUDSKHUV DUH LQWHUHVWHG LQ FUHDWLQJ
DSSHDOLQJ WH[WXUHV VKDSHV DQG FRORUV 7R LPSURYH VXSSRUW DQG DLG LQ
FRPSRVLWLRQVDODGLQDERZOLVEXLOWDURXQGDVPDOOHUERZOSODFHGXSVLGH
GRZQLQWKHRXWHUERZO6DODGJUHHQVDUHNHSWIUHVKDQGFULVSE\PLVWLQJ
WKHPZLWKFROGZDWHUSULRUWRFRPSRVLWLRQ6DODGGUHVVLQJLVQRWQRUPDOO\
XVHG DV LW PDNHV WKH VDODG VOLSSHU\ DQG GLIILFXOW WR VW\OH EXW WKH
DSSHDUDQFHRIGUHVVLQJPD\EHFUHDWHGE\VSULQNOLQJKHUEVDQGVSLFHVRYHU
WKH ZHWVDODGRU PL[LQJWKHPLQRLODQGDSSO\LQJLW ZLWKDEUXVK:.
R/%HOOLQJKDP
+RZHYHUIUXLWVDODGVDUHSDUWLFXODUO\FKDOOHQJLQJWRVKRRWEHFDXVHRI
WKH VKRUW WLPH WKH IUXLW SLHFHV ZKLFK DUH FXW LPPHGLDWHO\ SULRU WR ILQDO
SKRWRJUDSK\UHWDLQWKHLUDSSHDUDQFH$VRQO\WKHRXWHUOD\HURIWKHVDODG
LV RI LQWHUHVW WKH FRQFHDOHG LQWHULRU RI WKH VDODG ERZO PD\ EH ILOOHG E\
PDVKHG SRWDWRHV RU DQRWKHU PL[WXUH 7KLFN RU KHDY\ GUHVVLQJV GRQ
W
SKRWRJUDSK ZHOO WKH\ DUH XVXDOO\ WKLQQHG DQG DSSOLHG E\ EUXVK :.
R/%HOOLQJKDP
F+DPEXUJHUVDQG6DQGZLFKHV
$QG LQ WKH FDVH RI KDPEXUJHUV DQG VDQGZLFKHV SKRWRJUDSK\ LV
FKDOOHQJLQJEHFDXVHWKHEXQVGHQWHDVLO\DQGDQDVVHPEOHGEXUJHULVTXLFN
WRORVHLWVYLVXDODSSHDO:KHQDVVHPEOLQJWKHEXUJHUWKHLQJUHGLHQWVDUH
KHOG LQ SODFH ZLWK WRRWKSLFNV DQG WKH PHDW\ LQWHULRU RI WRPDWR VOLFHV LV
UHPRYHG WR DYRLG MXLFH GLVFRORULQJ WKH LQJUHGLHQWV 7KH PHDW SDWWLHV DUH
VXSHUILFLDOO\FRRNHGWKHHGJHVEURZQHGZLWKDWRUFKDQGWKHPHDWPDGHWR
ORRN PRUH DSSHWL]LQJ ZLWK D FRORUDQW 7KH HGJHV RI PHOWHG FKHHVH VOLFHV
PD\EHEUXVKHGZLWKKRXVHKROGFOHDQHUWRPDNHWKHPORRNIUHVKO\PHOWHG
ORQJHU&RQGLPHQWV VXFKDV PD\RQQDLVHDUHDSSOLHGWRWKHHGJHV ZLWKDQ
DSSOLFDWRUERWWOH:.R/%HOOLQJKDP
,QDGGLWLRQVDQGZLFKHVDUHDVVHPEOHGXVLQJVLPLODUWHFKQLTXHV:HW
SDSHU WRZHOV DUH XVHG WR SUHYHQW WKH EUHDG IURP GU\LQJ RXW ,I D KDOI
VDQGZLFKLVWREHGHSLFWHGWKHEUHDGDQGWKHFRPSRQHQWVDUHLQGLYLGXDOO\
VOLFHGZLWKVFLVVRUVDQGDVVHPEOHGLQSODFH:.R/%HOOLQJKDP
3UREOHPVZLWK)RRG3KRWRJUDSK\DQGWKH$UWRI3UHVHQWDWLRQ
+RZHYHUIRUWKHFULWLFVIRRGSKRWRJUDSK\DQGWKHDUWRISUHVHQWDWLRQ
KDYH VRPH PDMRU SUREOHPV &RQVLGHU IRU LOOXVWUDWLRQ D IHZ H[DPSOHV
EHORZDVVXPPDUL]HGLQ7DEOH
&KDSWHU7HFKQLTXHVDQGWKHLU'XDO6LGHV
)LUVWO\ RQH PDLQ FULWLFLVP RI IRRG SKRWRJUDSK\ DQG WKH DUW RI
SUHVHQWDWLRQ LV WKDW ZKDW LV UHJDUGHG DV D EHDXWLIXO IRRG SUHVHQWDWLRQ LV
UHODWLYHWRDKLVWRULFDOHUD
)RULQVWDQFHIRUDORQJWLPHIRRGSKRWRJUDSKVWHQGHGWREHVKRWDQG
FRPSRVHG WKH ZD\ SHRSOH ZHUH XVHG WR HQFRXQWHULQJ WKHLU IRRG ODLG RXW
RQ D WDEOH VHWWLQJ DQG VKRW IURP DQ RYHUKHDG SHUVSHFWLYH LH IURP WKH
SRLQWRIYLHZRIWKHHDWHU6W\OLVWVDFFRUGLQJO\DUUDQJHGWKHIRRGWRDSSHDU
JRRG IURP DERYH ZLWK WKH LWHPV DUUDQJHG IODW RQ WKH SODWH DQG FOHDUO\
VHSDUDWHGIURPHDFKRWKHU/DWHUURPDQWLFOLJKWLQJVKDOORZHUDQJOHVDQG
PRUHSURSVFDPHHQYRJXH ZLWKH[WUHPHFDVHVOHDGLQJWRWKHWHUP
IRRG
SRUQ
0RVW UHFHQWO\ WKH SUHYDLOLQJ WUHQG LQ :HVWHUQ FRPPHUFLDO IRRG
SKRWRJUDSK\ LV WR SUHVHQW WKH IRRG DV VLPSOH FOHDQ DQG QDWXUDOO\ DV
SRVVLEOHDQG ZLWKOLWWOHSURSVRIWHQXVLQJHIIHFWVVXFKDVVHOHFWLYHIRFXV
WLOWHGSODWHVDQGH[WUHPHFORVHXSV:.R/0DQQD
6HFRQGO\DQRWKHU PDLQFULWLFLVPRI IRRGSKRWRJUDSK\DQGWKHDUWRI
SUHVHQWDWLRQ LV WKDW IRRG SUHVHQWDWLRQ FDQ EH PLVOHDGLQJ DQG WKXV
FRQWURYHUVLDO
)RULQVWDQFHIRRGSKRWRJUDSK\LQDGYHUWLVLQJFRPPRQO\EHFRPHVD
VXEMHFWRISXEOLFVFUXWLQ\$GYHUWLVHPHQWVRIWHQH[DJJHUDWHDWWUDFWLYHQHVV
DQGVRPHWLPHVVL]HSHUKDSVPRVWIDPRXVO\LQWKHFDVHRIIDVWIRRG:.
R$/3.%KDVLQ
$QGWKLUGO\VWLOODQRWKHUPDLQFULWLFLVPRIIRRGSKRWRJUDSK\DQGWKH
DUW RI SUHVHQWDWLRQ LV WKDW WKH WHFKQRORJ\GULYHQ SURFHVV RI SKRWRJUDSK\
FRQWULEXWHVWRDKXPDQFHQWULFOLIHZRUOGZLWKSV\FKRWLFFRQVHTXHQFHV
)RU LQVWDQFH LQ P\ ERRN WLWOHG 7KH )XWXUH RI $HVWKHWLF ([SHULHQFH
,WKXVZDUQHG,QWKHFDVHRIDHVWKHWLFH[SHULHQFH
WHFKQRORJ\ ZLOO KDYHDQHYHQ PRUHDPD]LQJUROHWRSOD\LQWUDQVIRUPLQJ
WKH ZD\ WKDW DHVWKHWLF H[SHULHQFH LV WR EH KDG7KH ILUVW JUHDW
WUDQVIRUPDWLRQ LV WKDW LQ IXWXUH DHVWKHWLF REMHFWV GLIIHUHQW XOWUD
VRSKLVWLFDWHG WHFKQRORJLFDO GHYLFHV DQG VHQVRUV FDQ EHFRPH VR HIIHFWLYH
WKDWPDQ\SDLQWLQJVILOPVSKRWRVVFXOSWXUHVPXVLFDUFKLWHFWXUHSRHPV
DQG DOO HOVH ZLOO EH LQVWDOOHG ZLWK WKHP WR HQKDQFH WKH DPD]LQJ PXOWL
GLPHQVLRQDOYLUWXDODHVWKHWLFH[SHULHQFHWRWKHSRLQWWKDWWKHREMHFWVPD\
EHHDVLO\WDNHQDVUHDO,QWKHSUHVHQWFRQWH[WDYLVLRQDU\SURMHFWLRQRI
WKH IXWXUH RI DHVWKHWLF H[SHULHQFH FRQFHUQV SUHFLVHO\ WKH ULVH RI YLUWXDO
SV\FKRVLV
%H\RQG)RRG3KRWRJUDSK\DQGWKH$UWRI3UHVHQWDWLRQ
7KHVH FULWLFLVPV RI IRRG SKRWRJUDSK\ DQG WKH DUW RI SUHVHQWDWLRQ
VKRXOGQRWEHPLVFRQVWUXHGDVDWRWDOUHMHFWLRQRIWKHLUXVHIXOQHVVEXWVHUYH
WRVKRZXVWKHWZRRSSRVLQJVLGHVRIWKHGHEDWHVXFKWKDWWKHSRVVLELOLW\
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
&KDSWHU7HFKQLTXHVDQGWKHLU'XDO6LGHV
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
RQO\QRWDQGVRRQ$QGWKHUHYHUVHGLUHFWLRQDOVRKROGV
WUXH
,Q UHODWLRQ WR WKH VLPSOHQHVVFRPSOLFDWHGQHVV SULQFLSOH LI WKHUH LV
VLPSOHQHVVHJWKHUHODWLYHO\VLPSOHDQDO\VLVRIIRRGSKRWRSJUDK\E\WKH
DGYRFDWHVWKHUHLVFRPSOLFDWHGQHVVHJWKHUHODWLYHO\PRUHFRPSOLFDWHG
DQDO\VLVRIIRRGSKRWRJUDSK\E\FKDOOHQJLQJWKHFODLPVDQGDVVXPSWLRQV
DV VKRZQ LQ WKH SUREOHPV SRLQWHG RXW E\ WKH FULWLFV DV FLWHG $QG WKH
UHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHRSHQQHVVKLGGHQQHVVSULQFLSOHLIWKHUHLVRSHQQHVV
HJWKHRSHQH[SORUDWLRQRIXVLQJIRRGSKRWRJUDSK\IRUDGYHUWLVHPHQW
WKHUH LV KLGGHQQHVV HJ WKH KLGGHQ ELDV LQ IRRG SKRWRJUDSK\ IRU
DGYHUWLVHPHQW VLQFH IRU WKH FULWLFV IRRG SKRWRJUDSK\ LQ DGYHUWLVLQJ
H[DJJHUDWH>V@ DWWUDFWLYHQHVV DQG VRPHWLPHV VL]H $QG WKH UHYHUVH
GLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHGHQVHQHVVHPSWLQHVVSULQFLSOHLIWKHUHLVGHQVHQHVV
HJ WKH UHODWLYHO\ GHQVHU FRQFHQWUDWLRQ RI URPDQWLF OLJKWLQJ VKDOORZHU
DQJOHV DQG PRUH SURSV WR EH XVHG LQ IRRG SKRWRJUDSK\ ZLWK H[WUHPH
FDVHV NQRZQ DV IRRG SRUQ WKHUH LV HPSWLQHVV HJ WKH UHODWLYHO\ OHVV
GHQVH RU PRUH HPSW\ FRQFHQWUDWLRQ RI IRRG SRUQ QRZDGD\V EHFDXVH
PRVW UHFHQWO\ WKH SUHYDLOLQJ WUHQG LQ :HVWHUQ FRPPHUFLDO IRRG
SKRWRJUDSK\ LV WR SUHVHQW WKH IRRG DV VLPSOH FOHDQ DQG QDWXUDOO\ DV
SRVVLEOHDQGZLWKOLWWOHSURSV$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHFKDQJHFRQVWDQF\SULQFLSOHLIWKHUHLVFKDQJHHJ
WKH HYHU QHZ ZD\V WR VWXG\ IRRG VW\OH DV VKRZQ LQ WKH XVH RI IRRG
SKRWRJUDSK\ WKHUH LV FRQVWDQF\ HJ WKH HYHU FRQVWDQW H[LVWHQFH RI
GLIIHUHQWSUREOHPVZLWKWKHHYHUQHZZD\VWRVWXG\IRRGVW\OHDVVKRZQLQ
WKHSUREOHPVZLWKWKHXVHRIIRRGSKRWRJUDSK\SRLQWHGRXWE\WKHFULWLFV
$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHRUGHUFKDRVSULQFLSOHLIWKHUHLVRUGHUHJWKHPRUH
RUOHVVRUGHUO\DSSHDUDQFHRIIRRGLWHPVLQIRRGSKRWRVDIWHUKDYLQJEHHQ
QLFHO\ DQG SURSHUO\ DUUDQJHG E\ IRRG SKRWRJUDSKHUV IRU DGYHUWLVHPHQW
WKHUHLVFKDRVHJWKH PRUHRUOHVVFKDRWLFDSSHDUDQFHRIIRRGVDVWKH\
GHFD\ LQ QDWXUH ZLWKRXW EHLQJ QLFHO\ DQG SURSHUO\ DUUDQJHG E\ IRRG
SKRWRJUDSKHUV IRU DGYHUWLVHPHQW $QG WKH UHYHUVH GLUHFWLRQ DOVR KROGV
WUXH
,Q UHODWLRQ WR WKH VORZQHVVTXLFNQHVV SULQFLSOH LI WKHUH LV VORZQHVV
HJ WKH UHODWLYHO\ VORZHU VSHHG RI IRRG LWHPV WR EH VHOHFWHG IRU IRRG
SKRWRJUDSK\ZKHQWKH\EHJLQWRVSRLORUVLPSO\DUHQRWWKHPRVWYLVXDOO\
SHUIHFW IRRGVWXIIV WKHUH LV TXLFNQHVV HJ WKH UHODWLYHO\ TXLFNHU VSHHG
RIIRRGLWHPVWREHVHOHFWHGIRUIRRGSKRWRJUDSK\ZKHQWKH\DUHWKHPRVW
YLVXDOO\SHUIHFWIRRGVWXIIV$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
&KDSWHU7HFKQLTXHVDQGWKHLU'XDO6LGHV
,QUHODWLRQWRWKHH[SDQVLRQFRQWUDFWLRQSULQFLSOHLIWKHUHLVH[SDQVLRQ
HJ WKH UHODWLYH H[SDQVLRQ RI WKH VLPSOH IRRG VW\OH QRZDGD\V ZKLFK LV
WR SUHVHQW WKH IRRG DV VLPSOH FOHDQ DQG QDWXUDOO\ DV SRVVLEOH DQG ZLWK
OLWWOHSURSVWKHUHLVFRQWUDFWLRQHJWKHUHODWLYHGHFOLQHRIIRRGSRUQ
QRZDGD\V$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH WKHRU\SUD[LV SULQFLSOH LI WKHUH LV WKHRU\ HJ WKH
WKHRUHWLFDO FRQVWUXFWLRQ RI SKRWRJUDSK\ LQ HOHFWURQLFV WKHUH LV SUD[LV
HJWKHSUDFWLFDODSSOLFDWLRQRISKRWRJUDSK\LQHOHFWURQLFVWRWKHILHOGRI
IRRGDGYHUWLVHPHQWOLNHIRRGSKRWRJUDSK\$QGWKHUHYHUVHGLUHFWLRQDOVR
KROGVWUXH
,QUHODWLRQWRWKHFRQYHQWLRQQRYHOW\SULQFLSOHLIWKHUHLVFRQYHQWLRQ
HJWKHFRQYHQWLRQDOZLVGRPDERXWIRRGSRUQLQWKHROGHUGD\VWKHUH
LVQRYHOW\HJWKHDOWHUQDWLYHQRYHOFKDOOHQJHWRWKHFRQYHQWLRQDOZLVGRP
DERXWIRRGSRUQLQWKHROGHUGD\VE\WKHQHZLGHDRIVLPSOHIRRGVW\OH
QRZDGD\VZKLFKLVWRSUHVHQWWKHIRRGDVVLPSOHFOHDQDQGQDWXUDOO\DV
SRVVLEOHDQGZLWKOLWWOHSURSV$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH HYROXWLRQWUDQVIRUPDWLRQ SULQFLSOH LI WKHUH LV
HYROXWLRQHJWKHQDWXUDOHYROXWLRQRIKXPDQVWRHQMR\WKHYLVXDOEHDXW\
RI GLIIHUHQW IRRGV LQ WKH VWDWH RI QDWXUH LQ D SULPLWLYH ZD\ WKHUH LV
WUDQVIRUPDWLRQHJWKHWHFKQLFDOWUDQVIRUPDWLRQRIKXPDQDELOLW\WRHQMR\
WKHYLVXDOEHDXW\RIGLIIHUHQWIRRGVE\WKHLQYHQWLRQRIIRRGSKRWRJUDSK\
$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHV\PPHWU\DV\PPHWU\SULQFLSOHLIWKHUHLVV\PPHWU\
HJ WKH H[LVWHQFH RI GLIIHUHQW WUHQGV RI IRRG SKRWRJUSK\ WKHUH LV
DV\PPHWU\HJWKHSRSXODULW\RIIRRGSRUQLQWKHROGHUGD\VEXWWKH
SRSXODULW\RIVLPSOHIRRGVW\OHQRZDGD\VZKLFKLVWRSUHVHQWWKHIRRGDV
VLPSOH FOHDQ DQG QDWXUDOO\ DV SRVVLEOH DQG ZLWK OLWWOH SURSV $QG WKH
UHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHVRIWQHVVKDUGQHVVSULQFLSOHLIWKHUHLVVRIWQHVVHJ
WKHVHOHFWLRQRIIRRGLWHPVZKLFKDUHWKHPRVWYLVXDOO\SHUIHFWIRUIRRG
SKRWRJUDSK\WKHUHLVKDUGQHVVHJWKHUHMHFWLRQRIIRRGLWHPVIRUIRRG
SKRWRJUDSK\OLNHWKRVHZKLFKDUHGHFD\LQJRUORRNXJO\$QGWKHUHYHUVH
GLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH VHULRXVQHVVSOD\IXOQHVV SULQFLSOH LI WKHUH LV
VHULRXVQHVVHJWKHVHULRXVEXVLQHVVRIIRRGVW\OLVWVZKRWU\WRFRPHXS
ZLWKGLIIHUHQWQHZIRRGVW\OHVWKHUHLVSOD\IXOQHVVHJWKHSOD\IXOSDUW
RIIRRGVW\OLVWVZKHQWKH\SOD\DURXQGZLWKGLIIHUHQWQHZIRRGVW\OHVRYHU
WLPHDVVKRZQLQWKHULVHDQGIDOORIGLIIHUHQWIRRGVW\OHWUHQGVRYHUWLPH
$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHDFWLYHQHVVLQDFWLYHVVSULQFLSOHLIWKHUHLVDFWLYHQHVV
HJ WKH DFWLYHQHVV RI WKRVH FDPHUDV ZKLFK ZRUN ZHOO IRU IRRG
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
&KDSWHU7HFKQLTXHVDQGWKHLU'XDO6LGHV
7HFKQLTXHV&XLVLQHDQG&XOWXUDO9DULDWLRQV
$QRWKHU ZD\ WR HYDOXDWH WKH SRVVLELOLW\ RU LPSRVVLELOLW\ DQG
GHVLUDELOLW\ RU XQGHVLUDELOLW\ RI WHFKQLTXHV IURP WKH SHUVSHFWLYH RI
FXOWXUHFRQFHUQVWHFKQLTXHVFXLVLQHDQGFXOWXUDOYDULDWLRQV
7KH ZRUG FXVLQH LV IURP )UHQFK FXLVLQH
FRRNLQJ FXOLQDU\ DUW
NLWFKHQ
XOWLPDWHO\ IURP /DWLQ FRTXHUH
WR FRRN
ZKLFK UHIHUV WR D
FKDUDFWHULVWLF VW\OH RI FRRNLQJ SUDFWLFHV DQG WUDGLWLRQV RIWHQ DVVRFLDWHG
ZLWKDVSHFLILFFXOWXUH:.MM
,Q JHQHUDO FXLVLQHV DUH RIWHQ QDPHG DIWHU WKH JHRJUDSKLF DUHDV RU
UHJLRQVWKDWWKH\RULJLQDWHIURP$FXLVLQHLVSULPDULO\LQIOXHQFHGE\WKH
LQJUHGLHQWVWKDWDUHDYDLODEOHORFDOO\RUWKURXJKWUDGH5HOLJLRXVIRRGODZV
VXFKDV,VODPLFGLHWDU\ODZVDQG-HZLVKGLHWDU\ODZVFDQDOVRH[HUFLVHD
VWURQJLQIOXHQFHRQFXLVLQH5HJLRQDOIRRGSUHSDUDWLRQWUDGLWLRQVFXVWRPV
DQG LQJUHGLHQWV RIWHQ FRPELQH WR FUHDWH GLVKHV XQLTXH WR D SDUWLFXODU
UHJLRQ:.MM(/'/6WUDGOH\
*OREDO&XLVLQHV
7KHUH DUH GLIIHUHQW FXLVLQHV DURXQG WKH ZRUOG VR D VWXG\ RI JOREDO
FXLVLQHVUHTXLUHVDQXQGHUVWDQGLQJRIFXLVLQHVLQGLIIHUHQWUHJLRQV ZKLFK
DUHNQRZQDVUHJLRQDOFXLVLQHV:.MM
5HJLRQDOFXLVLQHVDUHFDWHJRUL]HGE\YDULRXVUHJLRQVDFFRUGLQJWRWKH
FRPPRQ XVH RI PDMRU IRRGVWXIIV LQFOXGLQJ JUDLQV SURGXFH DQG FRRNLQJ
IDWV 5HJLRQDO FXLVLQHV PD\ YDU\ EDVHG XSRQ IRRG DYDLODELOLW\ DQG WUDGH
FRRNLQJ WUDGLWLRQV DQG SUDFWLFHV DQG FXOWXUDO GLIIHUHQFHV :. MM
(/'
)RU LOOXVWUDWLRQ FRQVLGHU WKH IROORZLQJ UHJLRQDO FXLVLQHV DV
VXPPDUL]HG LQ 7DEOH DV D ZD\ WR XQGHUVWDQG WKH FXLVLQHV RI WKH
ZRUOG
D$IULFDQ&XLVLQH
7KH FDWHJRU\ RI $IULFDQ FXLVLQH LV D JHQHUDOL]HG WHUP FROOHFWLYHO\
UHIHUULQJ WR WKH FXLVLQHV RI $IULFD 7KH FRQWLQHQW RI $IULFD LV WKH VHFRQG
ODUJHVW ODQGPDVV RQ (DUWK DQG LV KRPH WR KXQGUHGV RI GLIIHUHQW FXOWXUDO
DQG HWKQLF JURXSV 7KLV GLYHUVLW\ LV DOVR UHIOHFWHG LQ WKH PDQ\ ORFDO
FXOLQDU\ WUDGLWLRQV LQ WHUPV RI FKRLFH RI LQJUHGLHQWV VW\OH RI SUHSDUDWLRQ
DQGFRRNLQJWHFKQLTXHV:.NN
)RU LQVWDQFH WKH YDULRXV FXLVLQHV RI $IULFD XVH D FRPELQDWLRQ RI
ORFDOO\ DYDLODEOH IUXLWV FHUHDO JUDLQV DQG YHJHWDEOHV DV ZHOO DV PLON DQG
PHDWSURGXFWV,QVRPHSDUWVRIWKHFRQWLQHQWWKHWUDGLWLRQDOGLHWIHDWXUHVD
SUHSRQGHUDQFH RI PLON FXUG DQG ZKH\ SURGXFWV ,Q PXFK RI WURSLFDO
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
$IULFDKRZHYHUFRZ
VPLONLVUDUHDQGFDQQRWEHSURGXFHGORFDOO\RZLQJ
WR YDULRXV GLVHDVHV WKDW DIIHFW OLYHVWRFN 'HSHQGLQJ RQ WKH UHJLRQ WKHUH
DUHDOVRVRPHWLPHVTXLWHVLJQLILFDQWGLIIHUHQFHVLQWKHHDWLQJDQGGULQNLQJ
KDELWV DQG SURFOLYLWLHV WKURXJKRXW WKH FRQWLQHQW
V PDQ\ SRSXODWLRQV
&HQWUDO $IULFD (DVW $IULFD WKH +RUQ RI $IULFD 1RUWK $IULFD 6RXWKHUQ
$IULFDDQG:HVW$IULFDHDFKKDYHWKHLURZQGLVWLQFWLYHGLVKHVSUHSDUDWLRQ
WHFKQLTXHVDQGFRQVXPSWLRQPRUHV:.NN
E$VLDQ&XLVLQH
7KH FDWHJRU\ RI $VLDQ FXLVLQH UHIHUV WR GLIIHUHQW FXLVLQHV RI $VLD
ZKLFK LVWKH ZRUOG
VODUJHVW DQG PRVWSRSXORXVFRQWLQHQWFRYHUV
RIWKH(DUWK
VWRWDOODQGDUHDKDVDSSUR[LPDWHO\ELOOLRQSHRSOHDQGKRVWV
RIWKHZRUOG
VFXUUHQWKXPDQSRSXODWLRQ:.NN
$VLDQFXLVLQHVW\OHVFDQEHEURNHQGRZQLQWRVHYHUDOUHJLRQDOVW\OHV
WKDW KDYH URRWV LQ WKH SHRSOHV DQG FXOWXUHV RI WKRVH UHJLRQV 7KH PDMRU
W\SHV FDQ EH URXJKO\ GHILQHG DV (DVW $VLDQ ZLWK LWV RULJLQV LQ ,PSHULDO
&KLQD DQG QRZ HQFRPSDVVLQJ PRGHUQ -DSDQ DQG WKH .RUHDQ SHQLQVXOD
6RXWKHDVW $VLDQ ZKLFK HQFRPSDVVHV &DPERGLD /DRV 7KDLODQG 9LHW
1DP%UXQHL,QGRQHVLD0DOD\VLD6LQJDSRUHDQGWKH3KLOLSSLQHV6RXWK
$VLDQZKLFKLVPDGHXSRI,QGLD%XUPD,QGLD6UL/DQNDDQG3DNLVWDQDV
ZHOO DV VHYHUDO RWKHU FRXQWULHV LQ WKLV UHJLRQ RI WKH FRQWLQHQW &HQWUDO
$VLDQDQG0LGGOH(DVWHUQ:.NN&/H
)RULQVWDQFHLQ&KLQHVHFXLVLQHFOLPDWHLVDQLPSRUWDQWIDFWRUVLQFH
LW DIIHFWV WKH VXSSO\ RI IXHO IRU FRRNLQJ D FRPPRQ &KLQHVH IRRG
SUHSDUDWLRQ PHWKRG ZDV FXWWLQJ IRRG LQWR VPDOO SLHFHV WR FRRN IRRGV
TXLFNO\DQGFRQVHUYHVFDUFHILUHZRRGDQGFKDUFRDO:.MM
$QG IURP ,QGLD WR ,QGRQHVLD WKH XVH RI VSLFHV LV FKDUDFWHULVWLF
FRFRQXWV DQG VHDIRRG DUH XVHG WKURXJKRXW WKH UHJLRQ ERWK DV IRRGVWXIIV
DQGDVVHDVRQLQJV:.MM
F(XURSHDQ&XLVLQH
7KH FDWHJRU\ RI (XURSHDQ FXLVLQH UHIHUV WR WKH FXLVLQHV RI (XURSH
DQGRWKHU:HVWHUQFRXQWULHV(XURSHDQFXLVLQHRU:HVWHUQFXLVLQHLQFOXGHV
WKDW RI (XURSH LQFOXGLQJ GHSHQGLQJ RQ WKH GHILQLWLRQ WKDW RI 5XVVLD DV
ZHOO DV QRQLQGLJHQRXV FXLVLQHV RI 1RUWK $PHULFD $XVWUDODVLD 2FHDQLD
DQG /DWLQ $PHULFD ZKLFK GHULYH VXEVWDQWLDO LQIOXHQFH IURP (XURSHDQ
VHWWOHUVLQWKRVHUHJLRQV:.NN(85
%XWWKHWHUPLVXVHGE\(DVW$VLDQVWRFRQWUDVWZLWK$VLDQVW\OHVRI
FRRNLQJ 7KH FXLVLQHV RI :HVWHUQ FRXQWULHV DUH GLYHUVH E\ WKHPVHOYHV
DOWKRXJK WKHUH DUH FRPPRQ FKDUDFWHULVWLFV WKDW GLVWLQJXLVKHV :HVWHUQ
FRRNLQJ IURP FXLVLQHV RI $VLDQ FRXQWULHV DQG RWKHUV &RPSDUHG ZLWK
WUDGLWLRQDO FRRNLQJ RI $VLDQ FRXQWULHV IRU H[DPSOH PHDW LV PRUH
&KDSWHU7HFKQLTXHVDQGWKHLU'XDO6LGHV
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
+RQH\ LV DQ LPSRUWDQW LQJUHGLHQW LQ PDQ\ 0H[LFDQ GLVKHV VXFK DV WKH
URVFDGHPLHODEXQGWOLNHFDNHDQGLQEHYHUDJHVVXFKDV EDOFKp:.
NN$QGLQWKH8QLWHG6WDWHV(XURSHDQFRORQL]DWLRQRIWKH$PHULFDV
\LHOGHGWKHLQWURGXFWLRQRIDQXPEHURILQJUHGLHQWVDQGFRRNLQJVW\OHVWR
WKHODWWHU7KHYDULRXVVW\OHVFRQWLQXHGH[SDQGLQJZHOOLQWRWKHWKDQG
WKFHQWXULHVSURSRUWLRQDOWRWKHLQIOX[RILPPLJUDQWVIURPPDQ\IRUHLJQ
QDWLRQV VXFK LQIOX[ GHYHORSHG D ULFK GLYHUVLW\ LQ IRRG SUHSDUDWLRQ
WKURXJKRXWWKHFRXQWU\:.NN
,Q &HQWUDO $PHULFD VRPH W\SLFDO IRRGVLQFOXGH PDL]HEDVHG
GLVKHV WRUWLOODV WDPDOHV SXSXVDV YDULRXV VDOVDV DQG RWKHU FRQGLPHQWV
JXDFDPROH SLFR GH JDOOR PROH FKLPLFKXUUL DQG SHEUH :. NN
0(6$)22'
$QG LQ 6RXWK $PHULFD WKH $PD]RQLD UHJLRQ RI 6RXWK $PHULFD
SURYLGHV D SOHWKRUD RI IUHVK ILVK DQG WURSLFDO IUXLWV ,Q 3HUX WKH ,QFD
(PSLUH 7DKXDQWLQVX\X DQG ,QFDQ FXLVLQH FRQWULEXWH WR WKH QDWLRQ
V
RYHUDOOFXLVLQH3RWDWRHVDUHFRPPRQDQGDOVRSODQWVVXFKDVTXLQRD7KH
3DFLILF2FHDQSURYLGHVDODUJHDPRXQWRI VHDIRRG0DQ\ SODLQV DOVRDUH
RQ WKLV FRQWLQHQW ZKLFK DUH ULFK IRU JURZLQJ IRRG LQ DEXQGDQFH ,Q WKH
3DWDJRQLDUHJLRQVRXWKRI&KLOHDQG$UJHQWLQDPDQ\SHRSOHSURGXFHODPE
DQG YHQLVRQ .LQJ FUDE LV W\SLFDOO\ FDXJKW DW WKH VRXWKHUQ HQG RI WKH
FRQWLQHQW $QWDUFWLF NULOO KDV MXVW UHFHQWO\ EHHQ GLVFRYHUHG DQG LV QRZ
DQRWKHU IRRG VRXUFH 7XQD DQG WURSLFDO ILVK DUH FDXJKW DOO DURXQG WKH
FRQWLQHQW (DVWHU ,VODQG LV D QRWDEOH DUHD ZKHUH WKH\ DUH IRXQG LQ
DEXQGDQFH /REVWHU LV DOVR FDXJKW LQ JUHDW TXDQWLWLHV IURP -XDQ
)HUQiQGH]:.NN%5$=,/
I2FHDQLDQ&XLVLQH
$QG WKH FDWHJRU\ RI 2FHDQLDQ FXLVLQH UHIHUV WR GLIIHUHQW FXLVLQHV LQ
$XVWUDOLD1HZ=HDODQGDQGRWKHULVODQGVLQWKHUHJLRQ
)RU LQVWDQFH LQ $XVWUDOLD RWKHU WKDQ E\ FOLPDWH DQG SURGXFH
DYDLODELOLW\$XVWUDOLDQFXLVLQHKDVEHHQLQIOXHQFHGE\WKHWDVWHVRIVHWWOHUV
WR$XVWUDOLD5HJLRQDO $XVWUDOLDQFXLVLQHVFRPPRQO\ XVH ORFDOO\ JURZQ
YHJHWDEOHVEDVHGRQVHDVRQDODYDLODELOLW\DQG$XVWUDOLDDOVRKDVODUJHIUXLW
JURZLQJ UHJLRQV 7KH *UDQQ\ 6PLWK YDULHW\ RI DSSOHV ILUVW RULJLQDWHG LQ
6\GQH\ $XVWUDOLD LQ ,Q WKH 6RXWKHUQ VWDWHV RI 9LFWRULD DQG 6RXWK
$XVWUDOLD LQ SDUWLFXODU WKH %DURVVD 9DOOH\ ZLQHV DQG IRRG UHIOHFWV WKH
UHJLRQ
V WUDGLWLRQV DQG KHULWDJH $XVWUDOLD
V FOLPDWH PDNHV EDUEHFXHV
FRPPRQSODFH %DUEHFXH VWDOOV VHOOLQJ VDXVDJHV DQG IULHG RQLRQ RQ ZKLWH
EUHDGZLWKWRPDWRRUEDUEHFXHVDXFHDUHFRPPRQ:.NN-$1(6
6287+
$QGLQ1HZ=HDODQGWKHNXPDUDLVDW\SHRIVZHHWSRWDWRWKDW
VEHHQ
JURZQ LQ 1HZ =HDODQG IRU WKRXVDQGV RI \HDUV DQG LV EHOLHYHG WR KDYH
&KDSWHU7HFKQLTXHVDQGWKHLU'XDO6LGHV
EHHQ LPSRUWHG E\ HDUO\ 0DRUL VHWWOHUV LQ WKH PLGV 9DULHWLHV RI
NXPDUDLQFOXGHJROG ZKLWHDQGUHG ZLWKUHG XVXDOO\WKH EHLQJ VZHHWHVW
.LZLIUXLW LV D VLJQLILFDQW SDUW RI 1HZ =HDODQG DJULFXOWXUDO SURGXFWLRQ
6LPLODUWRWKHFXLVLQHRI$XVWUDOLDWKHFXLVLQHRI1HZ=HDODQGLVDGLYHUVH
%ULWLVKEDVHG FXLVLQH ZLWK 0HGLWHUUDQHDQ DQG 3DFLILF 5LP LQIOXHQFHV DV
WKHFRXQWU\EHFRPHVPRUHFRVPRSROLWDQ+LVWRULFDOLQIOXHQFHVFDPHIURP
WKH 0RUL FXOWXUH 1HZ $PHULFDQ FXLVLQH 6RXWKHDVW $VLDQ (DVW $VLDQ
DQG,QGLDQWUDGLWLRQVKDYHEHFRPHSRSXODUVLQFHWKHV:.NN
$861=.*
)XVLRQ&XLVLQH
+RZHYHU LQ RXU DJH RI JOREDOL]DWLRQ JOREDO FXLVLQHV RU FXLVLQHV RI
WKHZRUOGWHQGWREHFRPHPRUHLQWHJUDWHGRUIXVHGRYHUWLPHLQZKDWLV
QRZ NQRZQ DV IXVLRQ FXLVLQH ZKLFK UHIHUV WR D GLVK WKDW FRPELQHV
HOHPHQWV RI YDULRXV FXOLQDU\ WUDGLWLRQV &XLVLQHV RI WKLV W\SH DUH QRW
FDWHJRUL]HGSHUDQ\RQHSDUWLFXODUFXLVLQHVW\OHDQGKDYHSOD\HGDSDUWLQ
LQQRYDWLRQV RI PDQ\ FRQWHPSRUDU\ UHVWDXUDQW FXLVLQHV VLQFH WKH V
:.OO5/LQGVH\
7KHUH DUH GLIIHUHQW YHUVLRQV RI IXVLRQ FXLVLQH IRU LOOXVWUDWLRQ
FRQVLGHUWKHIROORZLQJYHUVLRQVDVVXPPDUL]HGLQ7DEOH
D$VLDQ)XVLRQ&XLVLQH
7KH ILUVW YHUVLRQ RI IXVLRQ FXLVLQH KDV WR GR ZLWK $VLDQ IXVLRQ
UHVWDXUDQWV ZKLFK FRPELQH WKH YDULRXV FXLVLQHV RI GLIIHUHQW $VLDQ
FRXQWULHVDQG KDYHEHFRPHSRSXODULQ PDQ\SDUWVRIWKH8QLWHG6WDWHV
DQG 8QLWHG .LQJGRP 2IWHQ IHDWXUHG DUH 6RXWK $VLDQ (DVW $VLDQ DQG
6RXWK(DVW$VLDQGLVKHVDORQJVLGHRQHDQRWKHUDQGRIIHULQJGLVKHVWKDWDUH
LQVSLUHG FRPELQDWLRQV RI VXFK FXLVLQHV 2WKHU H[DPSOHV RI WKLV VW\OH
LQFOXGH 7H[0H[ ZKLFK FRPELQHV VRXWKZHVW 8QLWHG 6WDWHV FXLVLQH DQG
0H[LFDQFXLVLQHVDQG3DFLILF5LPFXLVLQH ZKLFKFRPELQHVWKHGLIIHUHQW
FXLVLQHVRIWKHYDULRXVLVODQGQDWLRQV:.OO:,*
(YHQ LQ $XVWUDOLD GXH WR WKH LQFUHDVLQJ LQIOX[ RI PLJUDQWV IXVLRQ
FXLVLQH LV EHLQJ UHLQYHQWHG DQG LV EHFRPLQJ LQFUHDVLQJO\ WKH QRUP DW
QXPHURXV FDIHV DQG UHVWDXUDQWV ZLWK 0HOERXUQH DQG 6\GQH\ QRZ EHLQJ
FRQVLGHUHGDVVRPHRIWKHEHVWFLWLHVLQWKHZRUOGZLWKUHJDUGWRWKHTXDOLW\
DQGFUHDWLYLW\RI$VLDQIXVLRQUHVWDXUDQWV:.OO
E(FOHFWLF)XVLRQ&XLVLQH
$QG WKH VHFRQG YHUVLRQ RI IXVLRQ FXLVLQH KDV WR GR ZLWK D PRUH
HFOHFWLF DSSURDFK ZKLFK JHQHUDOO\ IHDWXUHV RULJLQDO GLVKHV WKDW FRPELQH
YDULHWLHV RI LQJUHGLHQWV IURP YDULRXV FXLVLQHV DQG UHJLRQV 6XFK D
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
UHVWDXUDQWPLJKWIHDWXUHDZLGHYDULHW\RIGLVKHVLQVSLUHGE\DFRPELQDWLRQ
RIYDULRXVUHJLRQDOFXLVLQHVZLWKQHZLGHDV:.OO
$QRWKHUH[DPSOHLQYROYHVIRRGVEDVHGRQRQHFXOWXUHEXWSUHSDUHG
XVLQJ LQJUHGLHQWV DQG IODYRUV LQKHUHQW WR DQRWKHU FXOWXUH)RU LQVWDQFH
SL]]D PDGH ZLWK FKHGGDU DQG SHSSHU MDFN FKHHVH VDOVD UHIULHG EHDQV RU
RWKHU FRPPRQ WDFR LQJUHGLHQWV LV RIWHQ PDUNHWHG DV
7DFR 3L]]D
7KLV
SDUWLFXODU GLVK LV D IXVLRQ RI ,WDOLDQ DQG 0H[LFDQ FXLVLQHV 6LPLODU
DSSURDFKHV KDYH EHHQ XVHG IRU IXVLRQVXVKL VXFK DV UROOLQJ PDNL ZLWK
GLIIHUHQW W\SHV RI ULFH DQG LQJUHGLHQWV VXFK DV FXUU\ DQG EDVPDWL ULFH
FKHHVH DQG VDOVD VDXFH ZLWK 6SDQLVK ULFH RU VSLFHG JURXQG ODPE DQG
FDSHUV UROOHG ZLWK *UHHNVW\OH ULFH DQG JUDSH OHDYHV ZKLFK UHVHPEOHV
LQVLGHRXWGROPDGHV:.OO
3UREOHPVZLWKWKH6WXG\RI&XLVLQHDQG&XOWXUDO9DULDWLRQV
+RZHYHU IRU WKH FULWLFV WKLV VWXG\ RI FXLVLQH DQG FXOWXUDO YDULDWLRQV
KDVVRPHPDMRUSUREOHPV&RQVLGHUIRULOOXVWUDWLRQDIHZH[DPSOHVEHORZ
DVVXPPDUL]HGLQ7DEOH
)LUVWO\ RQH PDLQ FULWLFLVP RI WKH VWXG\ RI FXLVLQH DQG FXOWXUDO
YDULDWLRQVLVWKDWWKHSRUWUD\DORIJOREDOFXLVLQHVLVRYHUJHQHUDOL]HGDVLW
ODFNVLQGHSWKDQDO\VLV
)RU H[DPSOH IRU WKH FULWLFV LW LV QRW FOHDU WR ZKDW H[WHQW WKH
FDWHJRUL]DWLRQRIGLIIHUHQWFXLVLQHVRIWKHZRUOGLQWKHDUWLFOHDIRUHFLWHGLV
PRUH DFDGHPLF WKDQ SUDFWLFDO LQ LWV RYHUDOO JHQHUDOL]DWLRQ ZLWKRXW
VXIILFLHQW DWWHQWLRQ WR WKH PXOWLIDFHWHG GLIIHUHQFHV LQ GHWDLOV DPRQJ WKH
FXLVLQHVLQTXHVWLRQ
6HFRQGO\DQRWKHUPDLQFULWLFLVPRIWKHVWXG\RIFXLVLQHDQGFXOWXUDO
YDULDWLRQV LV WKDW WKH FODVVLILFDWLRQ RI GLIIHUHQW UHJLRQDO FXLVLQHV FDQ EH
FRQWURYHUVLDORUDUELWUDU\
)RULQVWDQFHIRUWKHFULWLFVKRZLV5XVVLDQFXLVLQHWREHFODVVLILHG",V
LW $VLDQ (XURSHDQ RU HOVH" %\ WKH VDPH ORJLF WR ZKDW H[WHQW LV /DWLQ
$PHULFDQFXLVLQH(XURSHDQE\LQIOXHQFH"
$QG WKLUGO\ VWLOO DQRWKHU PDLQ FULWLFLVP RI WKH VWXG\ RI FXLVLQH DQG
FXOWXUDOYDULDWLRQVLVWKDWIXVLRQFXLVLQHKDVLWVRZQOLPLWV
)RU LQVWDQFH IRU WKH FULWLFV WKH VXFFHVV RI D JLYHQ YHUVLRQ RI IXVLRQ
FXLVLQH GHSHQGV RQ GLIIHUHQW IDFWRUV DQG KHUHDIWHU DUH WKUHH PDMRU RQHV
:.OO
&OLHQWHOH
VRUSURVSHFWLYHFOLHQWHOH
VFXOWXUDOGLYHUVLW\
&OLHQWHOH
VWUDYHOSDWWHUQVDQGH[SHULHQFHV
&OLHQWHOH
V FXOLQDU\ VRSKLVWLFDWLRQ DQG RSHQQHVV WR QHZ HDWLQJ
H[SHULHQFHV
&KDSWHU7HFKQLTXHVDQGWKHLU'XDO6LGHV
6XUHO\ WKHUH FDQ EH RWKHU IDFWRUV IRU H[DPSOH DV DOUHDG\ GLVFXVVHG LQ
6HFRQIRRGSDLULQJQRWDOONLQGVRIIRRGVFDQJRZHOOWRJHWKHUVR
PL[LQJKDVLWVRZQOLPLWV
%H\RQG&XLVLQHDQG&XOWXUDO9DULDWLRQV
7KHVH FULWLFLVPV RI FXLVLQH DQG FXOWXUDO YDULDWLRQV KRZHYHU GR QRW
PHDQWRHQWDLODWRWDOUHMHFWLRQRIWKHLUXVHIXOQHVVEXWVHUYHWRVKRZXVWKH
WZR RSSRVLQJ VLGHV RI WKH GHEDWH VXFK WKDW WKH SRVVLELOLW\ RU
LPSRVVLELOLW\ DQG GHVLUDELOLW\ RU XQGHVLUDELOLW\ RI WHFKQLTXHV IURP WKH
SHUVSHFWLYHRIFXOWXUHZLWKWHFKQLTXHVFXLVLQHDQGFXOWXUDOYDULDWLRQVDVD
FDVHVWXG\KHUHDUHQRWWRWKHH[WHQWWKDWWKHUHVSHFWLYHGHIHQGHUVZRXOG
OLNHXVWREHOLHYH
,QGHHG WKH DQDO\VLV RI WHFKQLTXHV FXLVLQH DQG FXOWXUDO YDULDWLRQV
UHYHDOV WKH UHIUHVKLQJ LQVLJKWV DERXW WKH RQWRORJLFDO SULQFLSOHV LQ
H[LVWHQWLDO GLDOHFWLFV DQG JRRG H[DPSOHV LQFOXGH WKH IRUPDOQHVV
LQIRUPDOQHVV SULQFLSOH WKH DEVROXWHQHVVUHODWLYHQHVV SULQFLSOH WKH
SDUWLDOLW\WRWDOLW\ SULQFLSOH WKH SUHGLFWDELOLW\XQSUHGLFWDELOLW\ SULQFLSOH
WKH H[SOLFDELOLW\LQH[SOLFDELOLW\ SULQFLSOH WKH ILFWLRQUHDOLW\ SULQFLSOH WKH
ILQLWHQHVVWUDQVILQLWHQHVV SULQFLSOH WKH SUHFLVHQHVVYDJXHQHVV SULQFLSOH
WKH VLPSOHQHVVFRPSOLFDWHGQHVV SULQFLSOH WKH RSHQQHVVKLGGHQQHVV
SULQFLSOH WKH GHQVHQHVVHPSWLQHVV SULQFLSOH WKH FKDQJHFRQVWDQF\
SULQFLSOHWKHRUGHUFKDRVSULQFLSOHWKHVORZQHVVTXLFNQHVVSULQFLSOHWKH
H[SDQVLRQFRQWUDFWLRQ SULQFLSOH WKH WKHRU\SUD[LV SULQFLSOH WKH
FRQYHQWLRQQRYHOW\ SULQFLSOH WKH HYROXWLRQWUDQVIRUPDWLRQ SULQFLSOH WKH
V\PPHWU\DV\PPHWU\ SULQFLSOH WKH VRIWQHVVKDUGQHVV SULQFLSOH WKH
VHULRXVQHVVSOD\IXOQHVV SULQFLSOH WKH DFWLYHQHVVLQDFWLYHVV SULQFLSOH WKH
VHOIQHVVRWKHUQHVV SULQFLSOH WKH UHJUHVVLRQSURJUHVVLRQ SULQFLSOH WKH
VDPHGLIIHUHQFH SULQFLSOH WKH VWDELOLW\UHDFWLRQ SULQFLSOH DQG WKH
IXQFWLRQDOLW\QRQIXQFWLRQDOLW\SULQFLSOH
)RU LQVWDQFH LQ UHODWLRQ WR WKH IRUPDOQHVVLQIRUPDOQHVV SULQFLSOH LI
WKHUHLVIRUPDOQHVVHJWKHIRUPDOORJLFDOUHTXLUHPHQWRIVRXQGQHVVDQG
FRPSOHWHQHVVLQDV\VWHPRILGHDVDVLQWKHVWXG\RI JOREDOFXLVLQHVDQG
IXVLRQ FXLVLQH WKHUH LV LQIRUPDOQHVV HJ WKH QRQIRUPDO H[LVWHQFH RI
XQVRXQGQHVVDQGLQFRPSOHWHQHVVLQWKHVWXG\RIJOREDOFXLVLQHVDQGIXVLRQ
FXLVLQH DV VKRZQ LQ WKH FULWLFLVPV WKDW WKH DQDO\VLV RI JOREDO FXLVLQHV LV
RYHUJHQHUDOL]HGWKDWWKHFODVVLILFDWLRQRIGLIIHUHQWUHJLRQDOFXLVLQHVFDQEH
FRQWURYHUVLDORUDUELWUDU\WKDWIXVLRQFXLVLQHKDVLWVRZQOLPLWVHWF$QG
WKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH DEVROXWHQHVVUHODWLYHQHVV SULQFLSOH LI WKHUH LV
DEVROXWHQHVV HJ WKH DEVROXWH YLHZ RI WKH DGYRFDWHV RI IXVLRQ FXLVLQHV
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
IRU DQ HFOHFWLF DSSURDFK WKHUH LV UHODWLYHQHVV HJ ZKDW LV ULJKW IRU
WKHDGYRFDWHVRIIXVLRQFXLVLQHVIRUDQHFOHFWLFDSSURDFKLVQRWQHFHVVDULO\
VR IRU WKH FULWLFV EHFDXVH PL[LQJ IRRGV WRJHWKHU IURP GLIIHUHQW VRXUFHV
KDYH LWV RZQ OLPLWV GHSHQGLQJ RQ YDULRXV IDFWRUV $QG WKH UHYHUVH
GLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHSDUWLDOLW\WRWDOLW\SULQFLSOHLIWKHUHLVSDUWLDOLW\HJ
WKH SDUWLDO YLHZ RI HDFK UHJLRQDO FXLVLQH LQ UHJDUG WR LWV SUHIHUUHG
LQJUHGLHQWVDQGWHFKQLTXHVWKHUHLVWRWDOLW\HJWKHPRUHKROLVWLFYLHZRI
FXLVLQHVXFKWKDWWKHZKROHLVQRWWKHVXPRILWVSDUWVWKDWLVLWFDQQRWEH
UHGXFHGWRWKHVXPRIRSSRVLQJYLHZVRIGLIIHUHQWUHJLRQDOFXLVLQHVVLQFH
WKHUHZLOOHPHUJHQHZFXLVLQHVLQWKHIXWXUHQRW\HWNQRZQWRGD\MXVWDV
WKHUH DUH DOUHDG\ FULWLFLVPV DJDLQVW WKHP QRZDGD\V $QG WKH UHYHUVH
GLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH SUHGLFWDELOLW\XQSUHGLFWDELOLW\ SULQFLSOH LI WKHUH LV
SUHGLFWDELOLW\HJWKHSUHGLFWDEOHWHQGHQF\RIIXVLRQFXLVLQHWRFRQWLQXH
LWVJURZLQJSRSXODULW\LQWKHIRUHVHHDEOHIXWXUHWKHUHLVXQSUHGLFWDELOLW\
HJWKHPRUHGLIILFXOWWDVNWRSUHGLFWH[DFWO\WKHH[WHQWWRZKLFKIXVLRQ
FXLVLQHZLOOFRQWLQXHLWVJURZLQJLQIOXHQFHLQDSDUWLFXODUIXWXUHKLVWRULFDO
HUD VLQFH WKHUH DUH OLPLWLQJ IDFWRUV DJDLQVW LWV ZLGHVSUHDG DFFHSWDQFH
$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH H[SOLFDELOLW\LQH[SOLFDELOLW\ SULQFLSOH LI WKHUH LV
H[SOLFDELOLW\HJWKHH[SODQDWLRQE\WKHDGYRFDWHVRI&KLQHVHFXLVLQHWKDW
FXWWLQJ IRRG LQWR VPDOO SLHFHV LV LPSRUWDQW LQ RUGHU WR FRRN IRRGV
TXLFNO\ DQG FRQVHUYH VFDUFH ILUHZRRG DQG FKDUFRDO WKHUH LV
LQH[SOLFDELOLW\HJWKHODFNRIVXIILFLHQWH[SODQDWLRQE\WKHDGYRFDWHVRI
&KLQHVH FXLVLQH RI ZK\ FXWWLQJ IRRG LQWR VPDOO SLHFHV LV QHFHVVDULO\
GHVLUDEOH VLQFH LQ GLIIHUHQW UHJLRLQDO FXLVLQHV OLNH 5XVVLDQ FXLVLQH
FOLPDWH GRHV QRW QHJDWLYHO\ DIIHFW WKH VXSSO\ RI IXHO IRU FRRNLQJ DV
PXFKDVLWGRHVWRWKH&KLQHVH$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH ILFWLRQUHDOLW\ SULQFLSOH LI WKHUH LV ILFWLRQ HJ WKH
ILFWLRQDO DVSHFW RI WKH FODVVLILFDWLRQ RI GLIIHUHQW UHJLRQDO FXLVLQHV LQ WKH
DUWLFOHDIRUHFLWHGVLQFHLWFDQEHDUELWUDU\VLQFHWKHFULWLFVFDQDVN+RZLV
5XVVLDQ FXLVLQH WR EH FODVVLILHG" ,V LW $VLDQ (XURSHDQ RU HOVH" %\ WKH
VDPH ORJLF WR ZKDW H[WHQW LV /DWLQ $PHULFDQ FXLVLQH (XURSHDQ E\
LQIOXHQFH"WKHUHLVUHDOLW\HJWKHUHDOLVWLFDVSHFWRIWKHFODVVLILFDWLRQRI
GLIIHUHQW UHJLRQDO FXLVLQHV LQ WKH DUWLFOH DIRUHFLWHG LQVRIDU LW JLYHV XV D
URXJK LGHD RI GLIIHUHQW UHJLRQDO FXLVLQHV RI WKH ZRUOG $QG WKH UHYHUVH
GLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH ILQLWHQHVVWUDQVILQLWHQHVV SULQFLSOH LI WKHUH LV
ILQLWHQHVV HJ WKH ILQLWH QXPEHU RI WKH FDWHJRULHV RI LQJUHGLHQWVXVHGLQ
&KLQHVHFXLVLQHWKHUHLVWUDQVILQLWHQHVVHJWKHWUDQVILQLWHQXPEHURIDOO
&KDSWHU7HFKQLTXHVDQGWKHLU'XDO6LGHV
WKH LQGLYLGXDO SLHFHV RI LQJUHGLHQWV LQ &KLHQVH FRRNLQJ KLVWRU\ WKDW KDV
HYHUEHHQXVHGLQWKHODVWPLOOHQQLD$QGWKHUHYHUVHGLUHFWLRQDOVRKROGV
WUXH
,Q UHODWLRQ WR WKH SUHFLVHQHVVYDJXHQHVV SULQFLSOH LI WKHUH LV
SUHFLVHQHVV HJ WKH SUHFLVH LGHQWLILFDWLRQ RI PDLQ YHUVLRQV RI IXVLRQ
FXLVLQHLQWKHDUWLFOHDIRUHFLWHGWKHUHLVYDJXHQHVVHJWKHYDJXHQHVVLQ
WKH LGHQWLILFDWLRQ RI WKH PDLQ YHUVLRQV RI IXVLRQ FXLVLQH LQ WKH DUWLFOH
DIRUHFLWHG VLQFH LW LV QRW FOHDU ZK\ WKHUH PXVW EH RQO\ QRW
DQGVRRQ$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH VLPSOHQHVVFRPSOLFDWHGQHVV SULQFLSOH LI WKHUH LV
VLPSOHQHVV HJ WKH UHODWLYHO\ VLPSOH DQDO\VLV RI IXVLRQ FXLVLQH E\ LWV
DGYRFDWHVWKHUHLVFRPSOLFDWHGQHVVHJWKHUHODWLYHO\PRUHFRPSOLFDWHG
DQDO\VLVRIIXVLRQFXLVLQHE\FKDOOHQJLQJWKHFODLPVDQGDVVXPSWLRQVDV
VKRZQLQWKHSUREOHPVSRLQWHGRXWE\WKHFULWLFVDVFLWHG$QGWKHUHYHUVH
GLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHRSHQQHVVKLGGHQQHVVSULQFLSOHLIWKHUHLVRSHQQHVV
HJ WKH RSHQ H[SORUDWLRQ RI WKH PL[WXUH RI GLIIHUHQW FXLVLQHV WR IRUP D
QHZIRUPRIFXLVLQHNQRZQDVIXVLRQFXLVLQHWKHUHLVKLGGHQQHVVHJ
WKHKLGGHQELDVLQWKHPL[WXUHRIGLIIHUHQWFXLVLQHVWRIRUPDQHZIRUPRI
FXLVLQHNQRZQDVIXVLRQFXLVLQHVLQFHIRUWKHFULWLFVWKHUHDUHOLPLWLQJ
IDFWRUVDJDLQVWLWVVXFFHVV$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHGHQVHQHVVHPSWLQHVVSULQFLSOHLIWKHUHLVGHQVHQHVV
HJ WKH UHODWLYHO\ GHQVHU FRQFHQWUDWLRQ RI WKH XVH RI ULFH LQ &KLQHVH
FXLVLQHWKHUHLVHPSWLQHVVHJWKHUHODWLYHO\OHVVGHQVHRUPRUHHPSW\
FRQFHQWUDWLRQ RI WKH XVH RI ULFH LQ 5XVVLDQ FXLVLQH $QG WKH UHYHUVH
GLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHFKDQJHFRQVWDQF\SULQFLSOHLIWKHUHLVFKDQJHHJ
WKH HYHU QHZ ZD\V WR FRRN IRRG DV VKRZQ LQ WKH XVH RI IXVLRQ FXLVLQH
WKHUHLVFRQVWDQF\HJWKHHYHUFRQVWDQWH[LVWHQFHRIGLIIHUHQWSUREOHPV
LQWKHHYHUQHZZD\VWRFRRNIRRGDVVKRZQLQWKHSUREOHPVZLWKWKHXVH
RIIXVLRQFXLVLQHSRLQWHGRXWE\WKHFULWLFV$QGWKHUHYHUVHGLUHFWLRQDOVR
KROGVWUXH
,QUHODWLRQWRWKHRUGHUFKDRVSULQFLSOHLIWKHUHLVRUGHUHJWKHPRUH
RUOHVVRUGHUO\UHDOLW\RIUHJLRQDOFXLVLQHVLIORRNHGIURPWKHYDQWDJHSRLQW
RI D SDUWLFXODU UHJLRQDO FXLVLQH ZLWK LWV RZQ SUHIHUUHG LQJUHGLHQWV DQG
WHFKQLTXHVWKHUHLVFKDRVHJWKHPRUHRUOHVVFKDRWLFUHDOLW\RIUHJLRQDO
FXLVLQHVLIORRNHGIURPDOOWKHYDQWDJHSRLQWVRIDOOWKHGLIIHUHQWFXLVLQHV
RIWKHZRUOG$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH VORZQHVVTXLFNQHVV SULQFLSOH LI WKHUH LV VORZQHVV
HJWKHUHODWLYHO\VORZHUVSHHGRIIRRGWREHFRRNHGLILWLVQRWFXWLQWR
VPDOOSLHFHVWKHUHLVTXLFNQHVVHJWKHUHODWLYHO\TXLFNHUVSHHGRIIRRG
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
WREHFRRNHGLIFXWWLQJIRRGLQWRVPDOOSLHFHVLVXVHGDVLQWKH&KLQHVH
ZD\RIFRRNLQJ$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHH[SDQVLRQFRQWUDFWLRQSULQFLSOHLIWKHUHLVH[SDQVLRQ
HJ WKH UHODWLYH VSUHDG RI IXVLRQ FXLVLQH LQ RXU DJH RI JOREDOL]DWLRQ
WKHUHLVFRQWUDFWLRQHJWKHUHODWLYHGHFOLQHRIVWULFWO\UHJLRQDOFXLVLQHVLQ
RXUDJHRIJOREDOL]DWLRQ$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH WKHRU\SUD[LV SULQFLSOH LI WKHUH LV WKHRU\ HJ WKH
WKHRUHWLFDO FRQVWUXFWLRQ RI WKH LGHD RI IXVLRQ FXLVLQH E\ 5LFKDUG :LQJ
ZKRSLRQHHUHGWKHLGHDLQWKHVE\FRPELQLQJ)UHQFKDQG&KLQHVH
FRRNLQJ DW WKH IRUPHU ,PSHULDO '\QDVW\ UHVWDXUDQW LQ +DQIRUG
&DOLIRUQLD WKHUH LV SUD[LV HJ WKH SUDFWLFDO DSSOLFDWLRQ RI IXVLRQ
FXLVLQHWRWKHUHVWRIWKHZRUOGDVVKRZQE\WKHGLIIHUHQWYHUVLRQVLQWKH
DUWLFOH DIRUHFLWHG :. OO 6 .KRNKD $QG WKH UHYHUVH
GLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHFRQYHQWLRQQRYHOW\SULQFLSOHLIWKHUHLVFRQYHQWLRQ
HJWKHFRQYHQWLRQDOZLVGRPDERXWUHJLRQDOFXLVLQHVLQWKHROGHUGD\V
WKHUH LV QRYHOW\ HJ WKH DOWHUQDWLYH QRYHO FKDOOHQJH WR WKH FRQYHQWLRQDO
ZLVGRP DERXW UHJLRQDO FXLVLQHV LQ WKH ROGHU GD\V E\ WKH QHZ LGHD RI
IXVLRQ FXLVLQH QRZDGD\V LQ RXU DJH RI JOREDOL]DWLRQ $QG WKH UHYHUVH
GLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH HYROXWLRQWUDQVIRUPDWLRQ SULQFLSOH LI WKHUH LV
HYROXWLRQHJWKHQDWXUDOHYROXWLRQRIKXPDQVWRFKRRVHLQJUHGLHQWVDQG
WHFKQLTXHV IRU IRRG SUHSDUDWLRQ ZKLFK DUH VXLWDEOH WR WKHLU ORFDO
HQYLURQPHQWV LQ WKH VWDWH RI QDWXUH LQ D SULPLWLYH ZD\ WKHUH LV
WUDQVIRUPDWLRQ HJ WKH WHFKQLFDO WUDQVIRUPDWLRQ RI KXPDQ DELOLW\ WR
FKRRVHLQJUHGLHQWVDQGWHFKQLTXHVIRUIRRGSUHSDUDWLRQE\WKHLQYHQWLRQRI
IXVLRQ FXLVLQHV ZKLFK DOORZV LQJUHGLHQWV DQG WHFKQLTXHV WR EH LPSRUWHG
IURPWKHRXWVLGHWKURXJKH[WHQVLYHWUDGHLQWKHDJHRIJOREDOL]DWLRQ$QG
WKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHV\PPHWU\DV\PPHWU\SULQFLSOHLIWKHUHLVV\PPHWU\
HJ WKH H[LVWHQFH RI GLIIHUHQW YHUVLRQV RI IXVLRQ FXLVLQH WKHUH LV
DV\PPHWU\HJWKRVHYHUVLRQVZKLFKPHHWWKHUHTXLUHPHQWVRIWKHIDFWRUV
RI VXFFHVV DIRUHFLWHG EHFRPH PRUH LQIOXHQWLDO WKDQ WKRVH ZKLFK GR QRW
$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
,QUHODWLRQWRWKHVRIWQHVVKDUGQHVVSULQFLSOHLIWKHUHLVVRIWQHVVHJ
FOLHQWHOH
V FXOLQDU\ ZLOOLQJ WR WU\ QHZ HDWLQJ H[SHULHQFHV WKHUH LV
KDUGQHVV HJ FOLHQWHOH
V FXOLQDU\ XQZLOOLQJ WR WU\ QHZ HDWLQJ
H[SHULHQFHV RWKHU WKDQ WKRVH RI WKHLU RZQ UHJLRQDO FXLVLQH $QG WKH
UHYHUVHGLUHFWLRQDOVRKROGVWUXH
,Q UHODWLRQ WR WKH VHULRXVQHVVSOD\IXOQHVV SULQFLSOH LI WKHUH LV
VHULRXVQHVV HJ WKH VHULRXV EXVLQHVV RI WKRVH LQ IXVLRQ FXLVLQH ZKR WU\
&KDSWHU7HFKQLTXHVDQGWKHLU'XDO6LGHV
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
$QGLQUHODWLRQWRWKHIXQFWLRQDOLW\QRQIXQFWLRQDOLW\SULQFLSOHLIWKHUH
LVIXQFWLRQDOLW\HJWKHSUHVHQFHRIDFWLRQIRUZKLFKVRPHWKLQJLVILWWHG
DV VKRZQ LQ WKH XVH RI ORFDO LQJUHGLHQWV DQG WHFKQLTXHV IRU IRRG
SUHSDUDWLRQ LQ D JLYHQ UHJLRQ RI WKH ZRUOG LQ WKH ROGHU GD\V VLQFH WKH\
VHUYHG WKH IXQFWLRQ RI DGDSWLQJ WR WKH ORFDO HQYLURQPHQWV DW WKH WLPH
WKHUH LV QRQIXQFWLRQDOLW\ HJ WKH UHODWLYH ODFN RI DFWLRQ IRU ZKLFK
VRPHWKLQJ LV ILWWHG DV VKRZQ LQ WKH ULVH RI IXVLRQ FXLVLQH LQ WKH DJH RI
JOREDOL]DWLRQVXFKWKDWWKHULJLGUHJLRQDOFXLVLQHVZKLFKZHUHGRPLQDQWLQ
WKH ROGHU GD\V DUH QR ORQJHU PXFK IXQFWLRQDO LQ RXU WLPH UHODWLYHO\
VSHDNLQJRIFRXUVHJLYLQJZD\WRIXVLRQFXLVLQHPRUHDQGPRUH$QGWKH
UHYHUVHGLUHFWLRQDOVRKROGVWUXH
7KH,QHIIHFWLYHQHVVRI7HFKQLTXHV
7KLVFRPSUHKHQVLYHDQDO\VLV RIWKHSRVVLELOLW\RULPSRVVLELOLW\DQG
GHVLUDELOLW\RUXQGHVLUDELOLW\RIWHFKQLTXHVLQWKHFRQWH[WRIFXOLQDU\DUW
IURP WKH SHUVSHFWLYHV RI WKH PLQG QDWXUH VRFLHW\ DQG FXOWXUH KDV WKH
VFKRODUO\YLUWXHWRVKRZXVWKHGLIIHUHQWZD\VLQZKLFKWHFKQLTXHVDUHERWK
SRVVLEOH DQG GHVLUDEOH EXW QRW WR WKH H[WHQW WKDW WKH VSRNHVSHUVRQV IURP
HDFKVLGHZRXOGOLNHXVWREHOLHYH
7HFKQLTXHVWKXVKDYHWKHLURZQHIIHFWLYHQHVVMXVWDVWKH\KDYHWKHLU
LQHIIHFWLYHQHVVWRRDVWKHRWKHUVLGHRIWKHVDPHPLUURU
$V DOUHDG\ GLVFXVVHG LQ &KDSWHU 7ZR WKH RWKHU VLGH RI WKH VWRU\
FRQFHUQVLQJUHGLHQWV
7KHVH GXDO DQDO\VHV VKRXOG QRW EH XQGHUHVWLPDWHG EHFDXVH WKRVH RQ
WKH VLGH RI WHFKQLTXHV RIWHQ GRZQJUDGH LQJUHGLHQWV PHUHO\ DV WKH RWKHU
VLGH RI FXOLQDU\ DUW ZLWKRXW UHDOO\ DSSUHFLDWLQJ WKHP IURP WKH YDQWDJH
SRLQWRILQJUHGLHQWVWRRDQGYLFHYHUVD
,Q DQ\ HYHQW QRZ WKDW WKLV LQWHOOHFXWDO MRXUQH\ KDV FRPH WR DQ HQG
ZKDWWKHQFDQEHFRQFOXGHGLQUHJDUGWRFXOLQDU\DUWDQGLWVIXWXUH"7KLVLV
WKH TXHVWLRQ ZKLFK ZH QRZ WXUQ WR FKDSWHU IRXU WR DQVZHU QDPHO\ WKH
QH[WFKDSWHURQWKHIXWXUHRIFXOLQDU\DUW
&KDSWHU7HFKQLTXHVDQGWKHLU'XDO6LGHV
7DEOH7HFKQLTXHVDQGWKHLU'XDO6LGHV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
7HFKQLTXHVDQGWKH0LQG
([WHFKQLTXHVGLVHDVHDQGIRRGVDIHW\
([WHFKQLTXHVFRRNLQJDQGKHDOWK
7HFKQLTXHVDQG1DWXUH
([WHFKQLTXHVPROHFXODUJDVWURQRP\DQGIRRGSDLULQJ
([WHFKQLTXHVDQLPDOVODXJKWHUDQGUDGLFDOHQYLURQPHQWDOLVP
7HFKQLTXHVDQG6RFLHW\
([WHFKQLTXHVSUHVHUYDWLRQDQGIRRGWHFKQRORJ\
([WHFKQLTXHVIDVWIRRGDQGWKHIRRGLQGXVWU\
7HFKQLTXHVDQG&XOWXUH
([WHFKQLTXHVIRRGSKRWRJUDSK\DQGWKHDUWRISUHVHQWDWLRQ
([WHFKQLTXHVFXLVLQHDQGFXOWXUDOYDULDWLRQV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
1RWHV 7KH H[DPSOHV LQ WKH FDWHJRULHV DUH VROHO\ LOOXVWUDWLYH QRW
H[KDXVWLYH DQG WKH FRPSDULVRQ LV UHODWLYH QRW DEVROXWH QRU DUH WKH\
QHFHVVDULO\ PXWXDOO\ H[FOXVLYH $QG VRPH FDQ EH HDVLO\ UHFODVVLILHG
HOVHZKHUH$VJHQHUDOLWLHVWKH\DOORZH[FHSWLRQV
6RXUFH$VXPPDU\RI&KRI)3+&$
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7DEOH7HFKQLTXHV'LVHDVHDQG)RRG6DIHW\
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
)RRG+\JLHQH
([ SUHYHQW FRQWDPLQDWLQJ IRRG ZLWK SDWKRJHQV VSUHDGLQJ IURP
SHRSOHSHWVDQGSHVWV
([ VHSDUDWH UDZ DQG FRRNHG IRRGV WR SUHYHQW FRQWDPLQDWLQJ WKH
FRRNHGIRRGV
([ FRRN IRRGV IRU WKH DSSURSULDWH OHQJWK RI WLPH DQG DW WKH
DSSURSULDWHWHPSHUDWXUHWRNLOOSDWKRJHQV
([VWRUHIRRGDWWKHSURSHUWHPSHUDWXUH
([GRXVHVDIHZDWHUDQGFRRNHGPDWHULDOV
&RRNLQJ&RQWURO
([&IRUDPLQLPXPRIPLQXWHV
([&IRUDPLQLPXPRIPLQXWHV
([&IRUDPLQLPXPRIPLQXWHV
3UREOHPVZLWK)RRG6DIHW\
)LUVWO\RQHPDLQFULWLFLVPRIWKHQDWXUHRIIRRGVDIHW\LVWKDWGLIIHUHQW
JXLGHOLQHV PD\ UHFRPPHQG GLIIHUHQW WKLQJV WR GR DQG DUH QRW
QHFHVVDULO\FRQVLVWHQWZLWKHDFKRWKHU
6HFRQGO\DQRWKHU PDLQ FULWLFLVPRIWKH QDWXUHRIIRRGVDIHW\LVWKDW
FRRNLQJFRQWUROLVQRWVXIILFLHQW
7KLUGO\VWLOODQRWKHUPDLQFULWLFLVPRIWKHQDWXUHRIIRRGVDIHW\LVWKDW
WKHUHDUHGLYHUVHFRQIOLFWLQJUHJXODWRU\HQIRUFHPHQWV
$QGIRXUWKO\DQDGGLWLRQDOPDLQFULWLFLVPRIWKHQDWXUHRIIRRGVDIHW\
LVWKDWSUDFWLFHLVGLIIHUHQWIURPWKHRU\
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
1RWHV 7KH H[DPSOHV LQ WKH FDWHJRULHV DUH VROHO\ LOOXVWUDWLYH QRW
H[KDXVWLYH DQG WKH FRPSDULVRQ LV UHODWLYH QRW DEVROXWH QRU DUH WKH\
QHFHVVDULO\ PXWXDOO\ H[FOXVLYH $QG VRPH FDQ EH HDVLO\ UHFODVVLILHG
HOVHZKHUH$VJHQHUDOLWLHVWKH\DOORZH[FHSWLRQV
6RXUFH)URP6HFRI)3+&$6HHERRNIRUFLWDWLRQV
&KDSWHU7HFKQLTXHVDQGWKHLU'XDO6LGHV
7DEOH7HFKQLTXHV&RRNLQJDQG+HDOWK
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
0HWKRGVRI&RRNLQJ
([URDVWLQJ
([EDNLQJ
([ERLOLQJ
([IU\LQJ
([VPRNLQJ
([PLFURZDYLQJ
&RRNLQJDQG+HDOWK
([IRRGVDIHW\
([HIIHFWVRQQXWULWLRQDOFRQWHQWRIIRRG
([FRRNLQJDQGFDUFLQRJHQV
([RWKHUKHDOWKLVVXHV
3UREOHPVZLWKWKH6WXG\RI&RRNLQJDQG+HDOWK
)LUVWO\RQHPDLQFULWLFLVPRIWKHVWXG\RIFRRNLQJDQGKHDOWKLVWKDW
FRRNLQJGRHVQRWQHFHVVDULO\VXFFHHGLQNLOOLQJEDFWHULDWRHQVXUHIRRG
VDIHW\
6HFRQGO\DQRWKHUPDLQFULWLFLVPRIWKHVWXG\RIFRRNLQJDQGKHDOWK
LVWKDWUHVHDUFKUHVXOWVFDQEHLQFRQFOXVLYH
$QGWKLUGO\VWLOODQRWKHUPDLQFULWLFLVPRIWKHVWXG\RIFRRNLQJDQG
KHDOWKLVWKDWUHVHDUFKUHVXOWVFDQEHLQFRQVLVWHQW
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
1RWHV 7KH H[DPSOHV LQ WKH FDWHJRULHV DUH VROHO\ LOOXVWUDWLYH QRW
H[KDXVWLYH DQG WKH FRPSDULVRQ LV UHODWLYH QRW DEVROXWH QRU DUH WKH\
QHFHVVDULO\ PXWXDOO\ H[FOXVLYH $QG VRPH FDQ EH HDVLO\ UHFODVVLILHG
HOVHZKHUH$VJHQHUDOLWLHVWKH\DOORZH[FHSWLRQV
6RXUFH )URP 6HF RI )3+&$ 6HH ERRN IRU PRUH GHWDLOV DQG
FLWDWLRQV
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7DEOH7HFKQLTXHV3UHVHUYDWLRQDQG)RRG7HFKQRORJ\
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
0DLQ'HYHORSPHQWVLQ)RRG7HFKQRORJ\
([FDQQLQJ
([LQVWDQWL]HGPLONSRZGHU
([IUHH]HGU\LQJ
([KLJKWHPSHUDWXUHVKRUWWLPHSURFHVVLQJ
([GHFDIIHLQDWLRQRIFRIIHHDQGWHD
([SURFHVVRSWLPL]DWLRQ
3UREOHPVZLWK)RRG7HFKQRORJ\
)LUVWO\RQHPDLQFULWLFLVPRIIRRGWHFKQRORJ\IRUSUHVHUYDWLRQLVWKDW
LWFDQFDXVHOHDGSRLVRQLQJ
6HFRQGO\DQRWKHUPDLQFULWLFLVPRIIRRGWHFKQRORJ\IRUSUHVHUYDWLRQ
LVWKDWLWFDQOHDGWRXQEDODQFHGGLHWDU\VDOW
$QG WKLUGO\ VWLOO DQRWKHU PDLQ FULWLFLVP RI IRRG WHFKQRORJ\ IRU
SUHVHUYDWLRQLVWKDWLWFDQOHDGWRSDUDO\WLFLOOQHVV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
1RWHV 7KH H[DPSOHV DUH VROHO\ LOOXVWUDWLYH QRW H[KDXVWLYH DQG WKH
FRPSDULVRQ LV UHODWLYH QRW DEVROXWH QRU DUH WKH\ QHFHVVDULO\ PXWXDOO\
H[FOXVLYH$QGVRPHFDQEHHDVLO\UHFODVVLILHGHOVHZKHUH$VJHQHUDOLWLHV
WKH\DOORZH[FHSWLRQV
6RXUFH)URP6HFRI)3+&$6HHERRNIRUFLWDWLRQV
&KDSWHU7HFKQLTXHVDQGWKHLU'XDO6LGHV
7DEOH7HFKQLTXHV)DVW)RRGDQGWKH)RRG,QGXVWU\
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
)DVW)RRG2XWOHWV
([ILOOLQJVWDWLRQV
([VWUHHWYHQGRUVDQGFRQFHVVLRQV
)DVW)RRG&XLVLQH
([&KLQHVH7DNHDZD\
([VXVKL
([SL]]D
([NHEDE
3UREOHPVZLWK)DVW)RRGDQGWKH)RRG,QGXVWU\
)LUVWO\RQHPDLQFULWLFLVPRIIDVWIRRGLVWKDWLWKDVQHJDWLYHKHDOWK
HIIHFWV
6HFRQGO\DQRWKHUPDLQFULWLFLVPRIIDVWIRRGLVWKDWLWLVUHVHQWHGE\
VRPHORFDOFRQVHUYDWLYHVDVDIRUPRIFXOWXUDOLPSHULDOLVP
7KLUGO\VWLOODQRWKHUPDLQFULWLFLVPRIWKHIDVWIRRGLQGXVWU\LVWKDWLW
LVGRPLQDWHGE\DIHZPXOWLQDWLRQDOFRUSRUDWLRQV
)RXUWKO\DQDGGLWLRQDOPDLQFULWLFLVPRIWKHIDVWIRRGLQGXVWU\LVWKDW
LWHQJDJHVLQUXWKOHVVO\PDQLSXODWLYHWDFWLFV
$QG ILIWKO\ DQRWKHU DGGLWLRQDO PDLQ FULWLFLVP RI WKH IDVW IRRG
LQGXVWU\LVWKDWLWLVKLJKO\H[SORLWDWLYH
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
1RWHV 7KH H[DPSOHV DUH VROHO\ LOOXVWUDWLYH QRW H[KDXVWLYH DQG WKH
FRPSDULVRQ LV UHODWLYH QRW DEVROXWH QRU DUH WKH\ QHFHVVDULO\ PXWXDOO\
H[FOXVLYH$QGVRPHFDQEHHDVLO\UHFODVVLILHGHOVHZKHUH$VJHQHUDOLWLHV
WKH\DOORZH[FHSWLRQV
6RXUFH)URP6HFRI)3+&$6HHERRNIRUFLWDWLRQV
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7DEOH7HFKQLTXHV)RRG3KRWRJUDSK\DQGWKH$UWRI3UHVHQWDWLRQ
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
)RRG6W\OH7HFKQTLXHV
([ FUHDWLQJ VWHDP ZLWK FRRO DLU QHEXOL]HUV RU D FRPELQDWLRQ RI
FKHPLFDOVWKDWJLYHRIIVPRNHWKDWJLYHVWKHDSSHDUDQFHRIVWHDP
([ VSUD\LQJ IRRG ZLWK ZDWHURU PL[WXUHVRI ZDWHUFRUQV\UXSRU
RWKHUOLTXLGVWRNHHSIRRGORRNLQJIUHVK
([PDNLQJDPL[WXUHRIVROLGVKRUWHQLQJFRUQV\UXSDQGSRZGHUHG
VXJDUHVVHQWLDOO\DYHU\VWLIIIURVWLQJWKDWFDQEHVFRRSHGWRVLPXODWH
UHDOLFHFUHDP
([ XVLQJ D YDULHW\ RI EURZQLQJ DJHQWV XVXDOO\ PL[WXUHV XVHG WR
EURZQJUDYLHVRUVRPHWLPHVKHDWDFWLYDWHGOLTXLGVXVHGLQFRPPHUFLDO
EDNHULHV WR HQKDQFH WKH FRORUEURZQQHVV RI FRRNHG PHDWV DQG
SRXOWU\
([XVLQJKHDY\FUHDPLQVWHDGRIPLONLQERZOVRIFHUHDOWRSUHYHQW
IODNHV IURP EHFRPLQJ VRJJ\ WRR TXLFNO\ 7KH XVH RI ZKLWH JOXH LV
JHQHUDOO\GLVFRXUDJHGDQGLVQRWXVXDOO\HQFRXQWHUHGDVPRVWFHUHDO
FRPSDQLHVSURKLELWWKLVSUDFWLFH
([ EODQFKLQJ JUHHQ YHJHWDEOHV WR MXVW EULQJ XS WKHLU EULJKW FRORU
UDWKHUWKDQFRRNLQJWKHPFRPSOHWHO\2WKHUYHJHWDEOHVDQGIRRGVPD\
EHFRRNHGMXVWWRFRORUVRWKH\GRQRWEURZQRUEHFRPHZULQNOHGLI
WKH\PXVWVWDQGXQGHUWKHFDPHUDIRUDZKLOH
3UREOHPVZLWK)RRG3KRWRJUDSK\DQGWKH$UWRI3UHVHQWDWLRQ
)LUVWO\ RQH PDLQ FULWLFLVP RI IRRG SKRWRJUDSK\ DQG WKH DUW RI
SUHVHQWDWLRQLVWKDWZKDWLVUHJDUGHGDVDEHDXWLIXOIRRGSUHVHQWDWLRQLV
UHODWLYHWRDKLVWRULFDOHUD
6HFRQGO\ DQRWKHU PDLQ FULWLFLVP RI IRRG SKRWRJUDSK\ DQG WKH DUW RI
SUHVHQWDWLRQ LV WKDW IRRG SUHVHQWDWLRQ FDQ EH PLVOHDGLQJ DQG WKXV
FRQWURYHUVLDO
$QGWKLUGO\VWLOODQRWKHUPDLQFULWLFLVPRIIRRGSKRWRJUDSK\DQGWKH
DUW RI SUHVHQWDWLRQ LV WKDW WKH WHFKQRORJ\GULYHQ SURFHVV RI
SKRWRJUDSK\FRQWULEXWHV WRD KXPDQFHQWULFOLIHZRUOG ZLWK SV\FKRWLF
FRQVHTXHQFHV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
1RWHV 7KH H[DPSOHV DUH VROHO\ LOOXVWUDWLYH QRW H[KDXVWLYH DQG WKH
FRPSDULVRQ LV UHODWLYH QRW DEVROXWH QRU DUH WKH\ QHFHVVDULO\ PXWXDOO\
H[FOXVLYH$QGVRPHFDQEHHDVLO\UHFODVVLILHGHOVHZKHUH$VJHQHUDOLWLHV
WKH\DOORZH[FHSWLRQV
6RXUFH)URP6HFRI)3+&$6HHERRNIRUFLWDWLRQV
&KDSWHU7HFKQLTXHVDQGWKHLU'XDO6LGHV
7DEOH7HFKQLTXHV&XLVLQHDQG&XOWXUDO9DULDWLRQV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
*OREDO&XLVLQHV
([$IULFDQFXLVLQH
([$VLDQFXLVLQH
([(XURSHDQFXLVLQH
([0LGGOH(DVWHUQFXLVLQH
([$PHULFDQFXLVLQH
([2FHDQLDQFXLVLQH
)XVLRQ&XLVLQH
([$VLDQIXVLRQFXLVLQH
([HFOHFWLFIXVLRQFXLVLQH
3UREOHPVZLWKWKH6WXG\RI&XLVLQHDQG&XOWXUDO9DULDWLRQV
)LUVWO\ RQH PDLQ FULWLFLVP RI WKH VWXG\ RI FXLVLQH DQG FXOWXUDO
YDULDWLRQVLVWKDWWKHSRUWUD\DORIJOREDOFXLVLQHVLVRYHUJHQHUDOL]HGDV
LWODFNVLQGHSWKDQDO\VLV
6HFRQGO\DQRWKHUPDLQFULWLFLVPRIWKHVWXG\RIFXLVLQHDQGFXOWXUDO
YDULDWLRQVLVWKDWWKHFODVVLILFDWLRQRIGLIIHUHQWUHJLRQDOFXLVLQHVFDQEH
FRQWURYHUVLDORUDUELWUDU\
$QG WKLUGO\ VWLOO DQRWKHU PDLQ FULWLFLVP RI WKH VWXG\ RI FXLVLQH DQG
FXOWXUDOYDULDWLRQVLVWKDWIXVLRQFXLVLQHKDVLWVRZQOLPLWV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
1RWHV 7KH H[DPSOHV DUH VROHO\ LOOXVWUDWLYH QRW H[KDXVWLYH DQG WKH
FRPSDULVRQ LV UHODWLYH QRW DEVROXWH QRU DUH WKH\ QHFHVVDULO\ PXWXDOO\
H[FOXVLYH$QGVRPHFDQEHHDVLO\UHFODVVLILHGHOVHZKHUH$VJHQHUDOLWLHV
WKH\DOORZH[FHSWLRQV
6RXUFH)URP6HFRI)3+&$6HHERRNIRUFLWDWLRQV
3$57)285
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
&RQFOXVLRQ
&+$37(5
&21&/86,217+()8785(2)&8/,1$5<$57
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
, WKLQN WKDW FXULRVLW\LQWURGXFHG PH
WR QHZ FXLVLQHV DQG WR WKH LGHD RI
FRRNLQJ DV D PHFKDQLVP IRU VWXG\LQJ
RWKHUFXOWXUHVDQGXQGHUVWDQGLQJRWKHU
SDUWVRIWKHZRUOG
BB7HG$OOHQ%4F
%H\RQG,QJUHGLHQWVDQG7HFKQLTXHV
7KH DQDO\VHV RI LQJUHGLHQWV LQ &KDSWHU 7ZR DQG WHFKQLTXHV LQ
&KDSWHU 7KUHH DUH WR WHDFK XV WKH H[WHQW RI WKHLU SRVVLELOLW\ RU
LPSRVVLELOLW\ DQG GHVLUDELOLW\ RU XQGHVLUDELOLW\ LQ WKH VWXG\ RI FXOLQDU\
DUW
7KHVH WZR DQDO\VHV DUH YLWDO IRU WKH HYDOXDWLRQ RI WKH FRQWHQWLRQ
EHWZHHQWKHWZRRSSRVLQJYLHZVDERXWFRRNLQJDQGRWKHURQHVDVDOUHDG\
LQWURGXFHGLQ6HFDQGWKHUHVWRIWKHERRN
&RQWUDU\WRWKHVHRSSRVLQJYLHZVDQGRWKHURQHVDVDOUHDG\GLVFXVVHG
LQWKHERRNFXOLQDU\DUWLQUHODWLRQWRERWKLQJUHGLHQWVDQGWHFKQLTXHVLV
QHLWKHUSRVVLEOHRULPSRVVLEOHQRUGHVLUDEOHRUXQGHVLUDEOHWRWKHH[WHQW
WKDWWKHUHVSHFWLYHLGHRORJXHVRQGLIIHUHQWVLGHVZRXOGOLNHXVWREHOLHYH
$V LQGLFDWHG LQ 6HF WKLV FKDOOHQJH WR WKH RSSRVLQJ YLHZV RI
FRRNLQJ GRHV QRW PHDQ WKDW FXOLQDU\ DUW KDV QR SUDFWLFDO YDOXH RU WKDW
WKRVH LQWHUGLVFLSOLQDU\ ILHOGV UHODWHG WR FXOLQDU\ DUW OLNH IRRG VFLHQFH
QXWULWLRQDOHFRQRPLFVIRRGFKHPLVWU\IRRGDHVWKHWLFVWKHHWKLFVRINLOOLQJ
IRU IRRG PROHFXODU JDVWURQRP\ IRRG UKHRORJ\ IRRG SKRWRJUDSK\
6KHFKLWD WKH VFLHQFH RI DSKURGLVLDFV DQG VR RQ DUH XQLPSRUWDQW 2I
FRXUVHQHLWKHURIWKHVHH[WUHPHYLHZVLVUHDVRQDEOH
,QVWHDGWKLVERRNRIIHUVDQDOWHUQDWLYHEHWWHUZD\WRXQGHUVWDQGWKH
IXWXUHRIFXOLQDU\DUWHVSHFLDOO\LQWKHGLDOHFWLFFRQWH[WRILQJUHGLHQWVDQG
WHFKQLTXHVZKLOHOHDUQLQJIURPGLIIHUHQWDSSURDFKHVLQWKHOLWHUDWXUHEXW
ZLWKRXWIDYRULQJDQ\RQHRIWKHPQRULQWHJUDWLQJWKHPVLQFHWKH\DUHQRW
QHFHVVDULO\FRPSDWLEOHZLWKHDFKRWKHU
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
0RUH VSHFLILFDOO\ WKLV ERRN RIIHUV D QHZ WKHRU\ WKDW LV WKH
LQTXLVLWLYHWKHRU\RIFXOLQDU\DUWWRJREH\RQGWKHH[LVWLQJDSSURDFKHVLQ
DQRYHOZD\
$V D UHFDS IURP &KDSWHU 2QH P\ LQTXLVLWLYH WKHRU\ RI FXOLQDU\ DUW
KDVIRXUPDMRUGLVWLQFWIHDWXUHV
)LUVWO\P\WKHRU\PDNHVJRRGXVHRIDOOWKHRUHWLFDODSSURDFKHVWRWKH
VWXG\ RI FXOLQDU\ DUW LQ UHODWLRQ WR LQJUHGLHQWV DQG WHFKQLTXHV EH WKH\
DERXWWKHPHQWDODUJXPHQWWKHQDWXUDODUJXPHQWWKHVRFLHWDODUJXPHQWRU
WKHFXOWXUDODUJXPHQWHVSHFLDOO\IURPWKHPRVWFRPSUHKHQVLYHFRPELQHG
SHUVSHFWLYHVRIWKHPLQGQDWXUHVRFLHW\DQGFXOWXUHDVDOUHDG\GHDOWZLWK
LQ&KDSWHU7ZRDQG&KDSWHU7KUHH
6HFRQGO\MXVWOLNHPDQ\RWKHUWKHRULHVRIPLQHLQP\SUHYLRXVERRNV
P\ WKHRU\ KHUHGRHV QRWKHDYLO\ IDYRUDQ\VSHFLILFWKHRU\RYHURWKHUVLQ
WKH OLWHUDWXUH QRU WU\LQJ WR LQWHJUDWH WKHP DV WKH\ DUH QRW QHFHVVDULO\
FRPSDWLEOHZLWKHDFKRWKHU
7KLUGO\ P\ WKHRU\ WUHDWV WKH LVVXH RI FXOLQDU\ DUW LQ WKH GLVWLQFWLYH
GLDOHFWLFFRQWH[WRIQRLQJUHGLHQWVZLWKRXWWHFKQLTXHVDQGYLFHYHUVD
$QG IRXUWKO\ LW FRQWDLQV WZHQW\HLJKW PDMRU WKHVHV QDPHO\ D WKH
ILUVW WKHVLV WKH IRUPDOQHVVLQIRUPDOQHVV SULQFLSOH E WKH VHFRQG WKHVLV
WKH DEVROXWHQHVVUHODWLYHQHVV SULQFLSOH F WKH WKLUG WKHVLV WKH SDUWLDOLW\
WRWDOLW\ SULQFLSOH G WKH IRXUWK WKHVLV WKH SUHGLFWDELOLW\XQSUHGLFWDELOLW\
SULQFLSOHHWKHILIWKWKHVLVWKHH[SOLFDELOLW\LQH[SOLFDELOLW\SULQFLSOHI
WKH VL[WK WKHVLV WKH ILFWLRQUHDOLW\ SULQFLSOH J WKH VHYHQWK WKHVLV WKH
ILQLWHQHVVWUDQVILQLWHQHVV SULQFLSOH K WKH HLJKWK WKHVLV WKH SUHFLVHQHVV
YDJXHQHVV SULQFLSOH L WKH QLQWK WKHVLV WKH VLPSOHQHVVFRPSOLFDWHGQHVV
SULQFLSOH M WKH WHQWK WKHVLV WKH RSHQQHVVKLGGHQQHVV SULQFLSOH N WKH
HOHYHQWK WKHVLV WKH GHQVHQHVVHPSWLQHVV SULQFLSOH O WKH WZHOIWK WKHVLV
WKH FKDQJHFRQVWDQF\ SULQFLSOH P WKH WKLUWHHQWK WKHVLV WKHRUGHUFKDRV
SULQFLSOH Q WKH IRXUWHHQWK WKHVLV WKH VORZQHVVTXLFNQHVV SULQFLSOH R
WKH ILIWHHQWK WKHVLV WKH H[SDQVLRQFRQWUDFWLRQ SULQFLSOH S WKH VL[WHHQWK
WKHVLV WKH WKHRU\SUD[LV SULQFLSOH T WKH VHYHQWHHQWK WKHVLV WKH
FRQYHQWLRQQRYHOW\ SULQFLSOH U WKH HLJKWHHQWK WKHVLV WKH HYROXWLRQ
WUDQVIRUPDWLRQ SULQFLSOH V WKH QLQHWHHQWK WKHVLV WKH V\PPHWU\
DV\PPHWU\ SULQFLSOH W WKH WZHQWLHWK WKHVLV WKH VRIWQHVVKDUGQHVV
SULQFLSOHXWKHWZHQW\ILUVWWKHVLVWKHVHULRXVQHVVSOD\IXOQHVVSULQFLSOH
YWKHWZHQW\VHFRQGWKHVLVWKHDFWLYHQHVVLQDFWLYHQHVVSULQFLSOHZWKH
WZHQW\WKLUGWKHVLVWKHVHOIQHVVRWKHUQHVVSULQFLSOH[WKHWZHQW\IRXUWK
WKHVLVWKHUHJUHVVLRQSURJUHVVLRQSULQFLSOH\WKHWZHQW\ILIWKWKHVLVWKH
VDPHGLIIHUHQFH SULQFLSOH ] WKH WZHQW\VL[WK WKHVLV WKH VWDELOLW\
UHDFWLRQ SULQFLSOH DD WKH WZHQW\VHYHQWK WKHVLV WKH IXQFWLRQDOLW\
QRQIXQFWLRQDOLW\ SULQFLSOH DQG EE WKH WZHQW\HLJKWK WKHVLV WKH SRVW
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
KXPDQ LQTXLVLWLRQWR EH HODERUDWHG LQ WKH UHVW RI WKH ERRN ZLWK D
VXPPDU\LQWKHFRQFOXGLQJFKDSWHU
%HFDXVH RI WKH ODVW WKHVLV RQ WKH SRVWKXPDQ LQTXLVLWLRQ WKH ZRUG
LQTXLVLWLYHLQWKHWLWOHRIP\WKHRU\DUHVXJJHVWLYHEHFDXVHLWUHIHUVWRDQ
LQTXLULQJ DQDO\VLV RI FXOLQDU\ DUW VR DV WR H[SORUH GLIIHUHQW YLHZV DQG
WUDGLWLRQV UHJDUGLQJ WKH GLDOHFWLF LQWHUDFWLRQV EHWZHHQ LQJUHGLHQWV DQG
WHFKQLTXHVLQWKHVWXG\RIFXOLQDU\DUWWRJHWKHUZLWKRWKHUGHEDWHVDVZLOO
EHGLVFXVVHGLQWKHUHVWRIWKHERRNDQGFDOOVIRUDQHHGWRWUDQVFHQGWKHP
E\ IXWXUH DGYDQFHG KXPDQV DQG ODWHU SRVWKXPDQV LQ WKH FRQWH[W RI WKH
JUHDW WUDQVIRUPDWLRQV RI FXOLQDU\ DUW LQ WKH IXWXUH ZRUOG DV ZLOO EH
GLVFXVVHGLQWKHUHVWRIWKLVFKDSWHU
:LWK WKLV FODULILFDWLRQ LQ PLQGWKH VHPLQDO SURMHFW KHUH LI
VXFFHVVIXO ZLOO IXQGDPHQWDOO\ FKDQJH WKH ZD\ WKDW ZH WKLQN DERXW
LQJUHGLHQWVDQGWHFKQLTXHVLQWKHVWXG\RIFXOLQDU\DUWWRJHWKHUZLWKRWKHU
GHEDWHV DV DOUHDG\ GLVFXVVHG LQ WKH UHVW RI WKH ERRN IURP WKH FRPELQHG
SHUVSHFWLYHV RI WKH PLQG QDWXUH VRFLHW\ DQG FXOWXUH ZLWK HQRUPRXV
LPSOLFDWLRQV IRU WKH KXPDQ IXWXUH DQG ZKDW , RULJLQDOO\ FDOOHG LWV SRVW
KXPDQIDWH
,Q5HODWLRQWR0HWKRG
7KHILUVWVL[WKHVHVDUHLQUHODWLRQWRPHWKRGLQH[LVWHQWLDOGLDOHFWLFV
DVVKRZQEHORZ
VW7KHVLV7KH)RUPDOQHVV,QIRUPDOQHVV3ULQFLSOH
7KHILUVWWKHVLVUHIHUVWRWKHIRUPDOQHVVLQIRUPDOQHVVSULQFLSOHRQWKH
IRUPDO UHTXLUHPHQWV RI ORJLFDO V\VWHPV LQ WKH FDWHJRU\ RI PHWKRG LQ
H[LVWHQWLDO GLDOHFWLFV ZKLFK ZDV ILUVW SURSRVHG LQ )3+0/ DQG ODWHU
)3++)3+*$0)3+6(0DQGRWKHUERRNVRIPLQHLQWKDWWKHIRUPDO
UHTXLUHPHQWV RI D ORJLFDO V\VWHP HJ FRQVLVWHQF\ VRXQGQHVV DQG
FRPSOHWHQHVVKDYHERWKXVHIXOQHVVDQGQRQXVHIXOQHVVWRWKHH[WHQWWKDW
LIWKHUHDUHIRUPDOV\VWHPVUHTXLULQJWKHPWKHUHDUHDOWHUQDWLYHRQHVZKLFK
GRQRW
7KH IRUPDOQHVVLQIRUPDOQHVV SULQFLSOH UHYHDOV VRPHWKLQJ LQWHUHVWLQJ
LQ H[LVWHQWLDO GLDOHFWLFV LQ WKDW LW JRHV EH\RQG ERWK FODVVLFDO DQG QRQ
FODVVLFDOORJLFVZKLOHOHDUQLQJVRPHWKLQJIURPERWK
7KXV LW GRHV QRW H[FOXGH FODVVLFDO ORJLFV EXW VLPSO\ JRHV EH\RQG
ERWK FODVVLFDO DQG QRQFODVVLFDO ORJLFV ZKLOH OHDUQLQJ VRPHWKLQJ IURP
HDFK7KHUHLVQRIRUPDOQHVVZLWKRXWLQIRUPDOQHVVDQGYLFHYHUVD
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
)RULOOXVWUDWLRQH[LVWHQWLDOGLDOHFWLFVFDQ PDNHXVHRIERWKFODVVLFDO
ORJLFV XQGHU FHUWDLQ FRQGLWLRQV HJ HVSHFLDOO\ WKRXJK QRW H[FOXVLYHO\
ZKHQ WKH\ DUH FOHDUFXW HWF DQG QRQFODVVLFDO ORJLFV XQGHU DOWHUQDWLYH
FRQGLWLRQVHVSHFLDOO\WKRXJKQRWH[FOXVLYHO\ZKHQWKH\DUHXQNQRZQ
LUUHOHYDQW DPELJXRXV SRVVLEOH ZLWK GLIIHUHQW GHJUHHV RI WUXWK
HPSLULFDOO\LQFRQVLVWHQWLQDGHVLUDEOHZD\HWF:.X
)RU LQVWDQFH RQ WKH RQH KDQG WKHUH LV IRUPDOQHVV HJ WKH IRUPDO
ORJLFDO UHTXLUHPHQW RI VRXQGQHVV DQG FRPSOHWHQHVV LQ D V\VWHP RI LGHDV
DV LQ WKH VWXG\ RI DSKURGLVLDFV DQG VH[XDOLW\ LQ 6HF WKH IRUPDO
ORJLFDO UHTXLUHPHQW RI VRXQGQHVV FRQVLVWHQF\ DQG FRPSOHWHQHVV LQ D
V\VWHPRILGHDVDVLQWKHGLIIHUHQWYHUVLRQVRIWKHIRRGJXLGHS\UDPLGLQ
6HFWKHIRUPDOORJLFDOUHTXLUHPHQWRIVRXQGQHVVDQGFRPSOHWHQHVV
LQDV\VWHPRILGHDVDVLQWKHVWXG\RIIRRGFKDLQVDQGHFRORJLFDOS\UDPLG
LQ 6HF WKH IRUPDO ORJLFDO UHTXLUHPHQW RI VRXQGQHVV DQG
FRPSOHWHQHVV LQ D V\VWHP RI LGHDV DV LQ WKH VWXGLHV RQ UDZ IRRGLVP LQ
6HFWKHIRUPDOORJLFDOUHTXLUHPHQWRIVRXQGQHVVDQGFRPSOHWHQHVV
LQDV\VWHPRILGHDVDVLQWKHVWXG\RIIRRGVHFXULW\DQG0DOWKXVLDQLVPLQ
6HFWKHIRUPDOORJLFDOUHTXLUHPHQWRIVRXQGQHVVDQGFRPSOHWHQHVV
LQDV\VWHPRILGHDVDVLQWKHVWXG\RIQXWULWLRQDOHFRQRPLFVLQ6HF
WKH IRUPDO ORJLFDO UHTXLUHPHQW RI FRQVLVWHQF\ VRXQGQHVV DQG
FRPSOHWHQHVVLQDV\VWHPRILGHDVDVLQWKHVWXG\RIGLHWDQGWKHHWKLFVRI
HDWLQJPHDWLQ6HFWKHIRUPDOORJLFDOUHTXLUHPHQWRIVRXQGQHVVDQG
FRPSOHWHQHVV LQ D V\VWHP RI LGHDV DV LQ WKH VWXG\ RI WKH &XOLQDU\
5HYROXWLRQ LQ 6HF WKH IRUPDO ORJLFDO UHTXLUHPHQW RI FRQVLVWHQF\
VRXQGQHVV DQG FRPSOHWHQHVV LQ D V\VWHP RI LGHDV DV LQ WKH VWXG\ RI
GLVHDVH DQG IRRG VDIHW\ LQ 6HF WKH IRUPDO ORJLFDO UHTXLUHPHQW RI
FRQVLVWHQF\ VRXQGQHVV DQG FRPSOHWHQHVV LQ D V\VWHP RI LGHDV DV LQ WKH
VWXG\RQFRRNLQJDQGKHDOWKLQ6HFWKHIRUPDOORJLFDOUHTXLUHPHQW
RIFRQVLVWHQF\VRXQGQHVVDQGFRPSOHWHQHVVLQDV\VWHPRILGHDVDVLQWKH
VWXG\RIPROHFXODUJDVWURQRP\DQGIRRGSDLULQJLQ6HFWKHIRUPDO
ORJLFDO UHTXLUHPHQW RI VRXQGQHVV DQG FRPSOHWHQHVV LQ D V\VWHP RI LGHDV
DV LQ WKH LGHRORJ\ RI 6HD 6KHSKHUG LQ 6HF WKH IRUPDO ORJLFDO
UHTXLUHPHQWRIVRXQGQHVVDQGFRPSOHWHQHVVLQDV\VWHPRILGHDVDVLQWKH
ZRUNRQIRRGWHFKQRORJ\LQ6HFWKHIRUPDOORJLFDOUHTXLUHPHQWRI
VRXQGQHVVDQGFRPSOHWHQHVVLQDV\VWHPRILGHDVDVLQWKHHVWDEOLVKPHQW
RIWKH IDVW IRRGLQGXVWU\LQ6HFWKHIRUPDOORJLFDOUHTXLUHPHQWRI
VRXQGQHVVDQGFRPSOHWHQHVVLQDV\VWHPRILGHDVDVLQIRRGSKRWRJUDSK\
DQG WKH DUW RI SUHVHQWDWLRQ LQ 6HF DQG WKH IRUPDO ORJLFDO
UHTXLUHPHQWRIVRXQGQHVVDQGFRPSOHWHQHVVLQDV\VWHPRILGHDVDVLQWKH
VWXG\RIJOREDOFXLVLQHVDQGIXVLRQFXLVLQHLQ6HF
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
2Q WKH RWKHU KDQG WKHUH LV DOVR LQIRUPDOQHVV HJ WKH QRQIRUPDO
H[LVWHQFHRIXQVRXQGQHVVDQGLQFRPSOHWHQHVVLQWKHVWXG\RIDSKURGLVLDFV
DQG VH[XDOLW\ DV VKRZQ LQ WKH FULWLFLVPV WKDW WKH DOOHJHG UHVXOWV DUH
TXHVWLRQDEOHWKDWDSKURGLVLDFVFDQKDYHQHJDWLYHVLGHHIIHFWVHWFLQ6HF
WKH QRQIRUPDO H[LVWHQFH RI XQVRXQGQHVV LQFRQVLVWHQF\ DQG
LQFRPSOHWHQHVV LQ WKH GLIIHUHQW YHUVLRQV RI WKH IRRG JXLGH S\UDPLG DV
VKRZQ LQ WKH FULWLFLVPV WKDW WKH UHFRPPHQGHG IRRG JURXSV DUH QRW
QHFHVVDULO\ KHDOWK\ WKDW WKH\ DUH SROLWLFDOO\ LQIOXHQFHG WKDW GLIIHUHQW
YHUVLRQV GLIIHU IURP HDFK RWKHU LQ WHUPV RI UHFRPPHQGDWLRQ WKDW WKH
PDLQVWUHDP IRRG JXLGH S\UDPLGV LJQRUH DOWHUQDWLYH YLHZV HWF LQ 6HF
WKHQRQIRUPDOH[LVWHQFHRIXQVRXQGQHVVDQGLQFRPSOHWHQHVVLQWKH
VWXG\ RI IRRG FKDLQV DQG HFRORJLFDO S\UDPLG DV VKRZQ LQ WKH FULWLFLVPV
WKDW ELRPDVV S\UDPLGV FDQ EH PLVOHDGLQJ WKDW WKH GHVLJQDWLRQ RI
RUJDQLVPV LQ D S\UDPLG RI SURGXFWLYLW\ FDQ EH DUELWUDU\ WKDW LW PDNHV
PHDVXUHPHQWPRUHGLIILFXOWHWFLQ6HFWKHQRQIRUPDOH[LVWHQFHRI
XQVRXQGQHVVDQGLQFRPSOHWHQHVVLQWKHVWXGLHVRQUDZIRRGLVPDVVKRZQ
LQWKHFULWLFLVPVWKDWWKHUHDVRQVIRULWVMXVWLILFDWLRQDUHTXHVWLRQDEOHWKDW
WKHSUDFWLFHFDQSURGXFHGHWULPHQWDOKHDOWKHIIHFWVWKDWWKHSUDFWLFHFDQ
OHDG WR IRRG SRLVRQLQJ WKDW WKH SUDFWLFH FDQ OHDG WR QXWULWLRQDO
GHILFLHQFLHVHWFLQ6HFWKHQRQIRUPDOH[LVWHQFHRIXQVRXQGQHVV
DQG LQFRPSOHWHQHVV LQ WKH VWXG\ RI IRRG VHFXULW\ DQG 0DOWKXVLDQLVP DV
VKRZQLQWKHFULWLFLVPVWKDWLWLJQRUHVWKHLVVXHVFRQFHUQLQJHFRQRPLFEDVH
DQGVRFLDOVWUXFWXUHWKDWLWLVWRRSHVVLPLVWLFWKDWIDPLQHLVPRUHSROLWLFDO
WKDQ HFRQRPLF WKDW LW XQGHUVWLPDWHV WKH OLEHUDWLQJ SRZHU RI WHFKQRORJ\
HWF LQ 6HF WKH QRQIRUPDO H[LVWHQFH RI XQVRXQGQHVV DQG
LQFRPSOHWHQHVV LQ WKH VWXG\ RI QXWULWLRQDO HFRQRPLFV DV VKRZQ LQ WKH
FULWLFLVPV WKDW LW LV QRW QHFHVVDULO\ DFFXUDWH WKDW LW GRHV QRW QHFHVVDULO\
PDNH D GLIIHUHQFH WR WKRVH ZKR VXIIHU WKDW LWV GHILQLWLRQV FDQ EH
SUREOHPDWLFHWFLQ6HFWKHQRQIRUPDOH[LVWHQFHRILQFRQVLVWHQF\
XQVRXQGQHVV DQG LQFRPSOHWHQHVV LQ WKH VWXG\ RI GLHW DQG WKH HWKLFV RI
HDWLQJPHDWDVVKRZQLQWKHFULWLFLVPVWKDWWKHUHDVRQLQJDJDLQVWNLOOLQJ
IRUIRRGLQWKHILUVWDUJXPHQWLVLQFRQVLVWHQWWKDWWKHWUHDWPHQWRIDQLPDOV
LQWKHVHFRQGDUJXPHQWLVPRUHKXPDQHLQGHHGWKDWDQLPDOVGRQRWKDYH
WKHFRQVFLRXVQHVVWKDWKXPDQVKDYHWKDWGLIIHUHQWUHOLJLRXVWUDGLWLRQVKDYH
FRQIOLFWLQJ FXVWRPV LQ UHJDUG WR HDWLQJ PHDW WKDW HDWLQJ PHDW LV JHQGHU
UHODWLYH HWF LQ 6HF WKH QRQIRUPDO H[LVWHQFH RI XQVRXQGQHVV DQG
LQFRPSOHWHQHVV LQ WKH VWXG\ RI WKH &XOLQDU\ 5HYROXWLRQ DV VKRZQ LQ WKH
FULWLFLVPV WKDW QRW HYHU\RQH DJUHHV ZLWK WKH IRXQGHUV RI WKH &XOLQDU\
5HYROXWLRQ WKDW LW LV QRW FOHDU KRZ RULJLQDO WKH VRFDOOHG &XOLQDU\
5HYROXWLRQ UHDOO\ LV >RU KRZ UHYROXWLRQDU\ LW UHDOO\ LV@ WKDW LW LV QRW DV
LPSRUWDQWDVLWVDGYRFDWHVZRXOGOLNHXVWREHOLHYHHWFLQ6HFWKH
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
FRQWURYHUVLDO RU DUELWUDU\ WKDW IXVLRQ FXLVLQH KDV LWV RZQ OLPLWV HWF LQ
6HF
$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
+RZHYHU LW VKRXOG EH VWUHVVHG DV WKLV LV VRPHWKLQJ WKDW , UHJXODUO\
GLGLQP\SUHYLRXVERRNVDOPRVWYHUEDWLPWKDWWKHUHDUHGLIIHUHQWVKDGHV
RI JUD\ RU GLIIHUHQW GHJUHHV RI WUXWK LQ WKH WZR RSSRVLWHV DQG WKH
FODVVLILFDWLRQ LV QRW QHFHVVDULO\ PXWXDOO\ H[FOXVLYH HLWKHU ,Q IDFW HYHQ
ZKHQVRPHFRPELQDWLRQVRIWKHWZRRFFXUWKH\RQO\HQG XSVKDULQJWKH
VDPHGLDOHFWLFUHODWLRQVKLSEXWLQDGLIIHUHQWGHJUHH
$OVR WKHUH DUH VRPH RWKHU UHODWLRQVKLSV DV D NLQG RI IDPLO\
UHVHPEODQFH ZKLFK KDYH VRPHWKLQJ LQ FRPPRQ ZLWK WKH SULQFLSOH EXW
WKH\ DUH QRW H[DFWO\ WKH VDPH EXW RQO\ PRUH RU OHVV FRPSDUDEOH ZKLFK
YDULHVIURPFDVHWRFDVH
*RRGH[DPSOHVRIIDPLO\UHVHPEODQFHLQUHODWLRQWRWKHSULQFLSOHDUH
ORJLFDOQHVVQRQORJLFDOQHVVUDWLRQDOLW\QRQUDWLRQDOLW\HWF
QG7KHVLV7KH$EVROXWHQHVV5HODWLYHQHVV3ULQFLSOH
7KHVHFRQGWKHVLVUHIHUVWRWKHDEVROXWHQHVVUHODWLYHQHVVSULQFLSOHRQ
WKH PXOWLSOLFLW\ RI WKLQJV LQ WKH FDWHJRU\ RI PHWKRG LQ H[LVWHQWLDO
GLDOHFWLFV ZKLFK ZDV ILUVW SURSRVHG LQ )3+. LQ WKDW WKHUH LV WKH
PXOWLSOLFLW\ RI WKLQJV LQ UHDOLW\ EH WKH\ DERXW HQWLWLHV TXDOLWLHV RU
SURSHUWLHV DQG UHODWLRQVKLSV ,I WKHUH LV VRPHWKLQJ DEVROXWH WKHUH LV
OLNHZLVH VRPHWKLQJ UHODWLYH $QG WKHUH LV QR DEVROXWHQHVV ZLWKRXW
UHODWLYHQHVVDQGYLFHYHUVD
%RWKDEVROXWHQHVVDQGUHODWLYHQHVVKHUHDUHDOVRUHOHYDQWWRGLIIHUHQW
PRGDOLWLHV RIWHQ FLWHG LQ WKH OLWHUDWXUH RQ RQWRORJ\ VXFK DV SRVVLELOLW\
HJ VRPHWKLQJ FDQ KDSSHQ DQG LWV RSSRVLWH HJ LPSRVVLELOLW\
SUREDELOLW\ HJ VRPHWKLQJ ZLOO KDSSHQ DQG LWV RSSRVLWH HJ
LPSUREDELOLW\ DQG QHFHVVLW\ HJ VRPHWKLQJ VKRXOG KDSSHQ DQG LWV
RSSRVLWHHJFRQWLQJHQF\
)RULQVWDQFHRQWKHRQHKDQGWKHUHLVDEVROXWHQHVVHJWKHDEVROXWH
SHUFHSWLRQDVVKRZQWKURXJKRXWKLVWRU\ZKHQPDQ\IRRGVGULQNVDQG
EHKDYLRUV KDYH KDG D UHSXWDWLRQ IRU PDNLQJ VH[ PRUH DWWDLQDEOH DQGRU
SOHDVXUDEOH LQ 6HF WKH DEVROXWH YLHZ RI WKH VWDQGDUG IRRG JXLGH
S\UDPLGVE\86'$LQ6HFWKHDEVROXWHYLHZRIWKRVHLQWKHVWXG\
RI IRRG FKDLQV DQG HFRORJLFDO S\UDPLG LQ UHJDUG WR WKH GHVLJQDWLRQ RI
RUJDQLVPVLQDS\UDPLGRISURGXFWLYLW\LQ6HFWKHDEVROXWHYLHZRI
UDZYHJDQLVWVLQUHJDUGWRDUDZYHJDQGLHWLQ6HFWKHDEVROXWH
YLHZRI0DOWKXVLQWKHHDUO\GD\VWKDWKXPDQLW\
VDELOLW\WRUHSURGXFHWRR
UDSLGO\GRRPHGHIIRUWVDWSHUIHFWLRQDQGFDXVHYDULRXVRWKHUSUREOHPVLQ
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
6HFWKHDEVROXWHYLHZRIORFDOHOLWHVJRYHUQPHQWVRUWUDQVQDWLRQDO
FRUSRUDWLRQV LQ WKH FDVH RI ODQG H[SURSULDWLRQ DV VWXGLHG E\ 5REELQV
>@ LQ 6HF WKH DEVROXWH YLHZ RI )DUP 6DQFWXDU\ LQ WKDW
FRPPRGLI\LQJ DQG VODXJKWHULQJ DQLPDOV LV LQFRPSDWLEOH ZLWK WKH
GHILQLWLRQ RI
KXPDQH
LQ 6HF WKH DEVROXWH YLHZ RI :DWHUV DERXW
KHUSULPDU\OHDGHUVKLSLQWKHQHZ
&DOLIRUQLD&XLVLQH
PRYHPHQWDQGWKH
$PHULFDQ
&XOLQDU\ 5HYROXWLRQ
LQ 6HF WKH DEVROXWH YLHZ RI WKH
)RRGDQG'UXJ$GPLQLVWUDWLRQLQUHJDUGWRLWV)RRG&RGHZKLFKSURYLGHV
JXLGHOLQHV DQG SURFHGXUHV WKDW DVVLVWV IRRG FRQWURO MXULVGLFWLRQV E\
SURYLGLQJDVFLHQWLILFDOO\VRXQGWHFKQLFDODQGOHJDOEDVLVIRUUHJXODWLQJWKH
UHWDLODQGIRRGVHUYLFHLQGXVWULHVLQ6HFWKHDEVROXWHYLHZRIUDZ
IRRGLVWVWKDWFRRNLQJZLWKKHDWFDQNLOORULQDFWLYDWHSRWHQWLDOO\KDUPIXO
RUJDQLVPVVXFKDVEDFWHULDDQGYLUXVHVDVZHOODVYDULRXVSDUDVLWHVVXFK
DVWDSHZRUPVDQG7R[RSODVPDJRQGLLLQ6HFWKHDEVROXWHYLHZRI
WKHRULJLQDOREMHFWLYHVRIPROHFXODUJDVWURQRP\ZLWKLWVPDMRURQHVDV
VXJJHVWHG E\ 7KLV LQ 6HF WKH DEVROXWH YLHZ RI :DWVRQ WKDW 6HD
6KHSKHUGLQUHJDUGWRKLVGLUHFWDFWLRQWDFWLFVWRSURWHFWVHDOLIHLQ6HF
WKHDEVROXWHYLHZRI$SSHUWZKRREVHUYHGWKDWIRRGFRRNHGLQVLGH
D MDU GLG QRW VSRLO XQOHVV WKH VHDOV OHDNHG DQG GHYHORSHG D PHWKRG RI
VHDOLQJ IRRG LQ JODVV MDUV LQ 6HF WKH DEVROXWH YLHZ RI WKH
0F'RQDOG
V &RUSRUDWLRQ LQ UHJDUG WR LWV PDUNHWLQJ WDFWLFV LQ 6HF
WKHDEVROXWHYLHZRIIRRGSKRWRJUDSK\LQDGYHUWLVLQJLQ6HFDQG
WKH DEVROXWH YLHZ RI WKH DGYRFDWHV RI IXVLRQ FXLVLQHV IRU DQ HFOHFWLF
DSSURDFKLQ6HF
2Q WKH RWKHU KDQG WKHUH LV UHODWLYHQHVV HJ ZKDW LV ULJKW IRU WKH
SRSXODU SHUFHSWLRQ WKURXJKRXW KLVWRU\ ZKHQ PDQ\ IRRGV GULQNV DQG
EHKDYLRUV KDYH KDG D UHSXWDWLRQ IRU PDNLQJ VH[ PRUH DWWDLQDEOH DQGRU
SOHDVXUDEOH LV QRW QHFHVVDULO\ VR IRU :HVWHUQ PHGLFDO VFLHQFH ZKLFK
KDV QR VXEVWDQWLDWHG FODLPV WKDW DQ\ SDUWLFXODU IRRG LQFUHDVHV VH[XDO
GHVLUH RUSHUIRUPDQFH LQ 6HF ZKDW LV ULJKW IRU WKH VWDQGDUG IRRG
JXLGHS\UDPLGVE\86'$LVQRWQHFHVVDULO\VRIRUWKHFULWLFVZKRSURSRVH
DOWHUQDWLYH YHUVLRQV OLNH WKH KHDOWK\ HDWLQJ S\UDPLG E\ WKH +DUYDUG
6FKRRO RI 3XEOLF +HDOWK DQG WKH KHDOLQJ IRRGV S\UDPLG E\ WKH
8QLYHUVLW\ RI 0LFKLJDQ ,QWHJUDWLYH 0HGLFLQH LQ 6HF ZKDW LV ULJKW
IRUWKRVHLQWKHVWXG\RIIRRGFKDLQVDQGHFRORJLFDOS\UDPLGLQUHJDUGWR
WKH GHVLJQDWLRQ RI RUJDQLVPV LQ D S\UDPLG RI SURGXFWLYLW\ LV QRW
QHFHVVDULO\VRIRUWKHFULWLFVZKRDUJXHWKDWWKHGHVLJQDWLRQRIRUJDQLVPV
LQDS\UDPLGRISURGXFWLYLW\FDQEHVRPHZKDWDUELWUDU\LQ6HFZKDW
LVULJKWIRUUDZYHJDQLVWVLQUHJDUGWRDUDZYHJDQGLHWLVQRWQHFHVVDULO\
VR IRU WKH FULWLFV ZKR DUJXH LQVWHDG WKDW WKH SUDFWLFH FDQ SURGXFH
GHWULPHQWDO KHDOWK HIIHFWV DQG FDQ OHDG WR IRRG SRLVRQLQJ LQ 6HF
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
ZKDWLVULJKWIRU0DOWKXVLQWKHHDUO\GD\VWKDWKXPDQLW\
VDELOLW\WR
UHSURGXFHWRRUDSLGO\GRRPHGHIIRUWVDWSHUIHFWLRQDQGFDXVHYDULRXVRWKHU
SUREOHPV LV QRW QHFHVVDULO\ VR IRU 0DU[ ZKR DUJXHG WKDW 0DOWKXVLDQ
WKHRULHV
EODPHG WKH SRRU
IRU WKHLU RZQ H[SORLWDWLRQ E\ WKH FDSLWDOLVW
FODVVHV DQG FRXOG EH XVHG WR VXSSUHVV WKH SUROHWDULDW WR DQ HYHQ JUHDWHU
GHJUHH ZKHWKHU WKURXJK DWWHPSWV WR UHGXFH IHUWLOLW\ RU E\ MXVWLI\LQJ WKH
JHQHUDOO\ SRRU FRQGLWLRQV RI ODERXU LQ WKH WK FHQWXU\ LQ 6HF
ZKDWLVULJKWIRUORFDOHOLWHVJRYHUQPHQWVRUWUDQVQDWLRQDOFRUSRUDWLRQV
LQWKHFDVHRIODQGH[SURSULDWLRQLVQRWQHFHVVDULO\VRIRUWKHFULWLFVOLNH
5REELQV>@VLQFHLQWKHH[DPSOHVFRQFHUQLQJSHDVDQWVLQ0H[LFRLQ
PDQ\ FDVHV WKHVH VXEVLVWHQFH SURGXFHUV DUH IRUFHG HLWKHU WR PLJUDWH WR
FLWLHV RU ZRUN VSRUDGLFDOO\ DV DJULFXOWXUDO ODERUV LQ 6HF ZKDW LV
ULJKW IRU )DUP 6DQFWXDU\ LQ UHJDUG WR WKH WUHDWPHQW RI DQLPDOV LV QRW
QHFHVVDULO\VRIRU)-)DLVRQSUHVLGHQWRI&DUUROOV)RRGVZKRDUJXHG
WKDW WKH\
UH LQ VWDWHRIWKHDUW FRQILQHPHQW IDFLOLWLHV DQG WKDW WKH
FRQGLWLRQV WKDW ZH NHHS WKHVH DQLPDOV LQ DUH PXFK PRUH KXPDQH WKDQ
ZKHQ WKH\ ZHUH RXW LQ WKH ILHOG LQ 6HF ZKDW LV ULJKW IRU :DWHUV
DERXW KHU SULPDU\ OHDGHUVKLS LQ WKH QHZ
&DOLIRUQLD &XLVLQH
PRYHPHQW
DQGWKH$PHULFDQ
&XOLQDU\5HYROXWLRQ
LVQRWQHFHVVDULO\VRIRU7RZHU
ZKRKDVFULWLFL]HG:DWHUVIRUWDNLQJPRVWLIQRWDOOWKHSUDLVHDQGFUHGLW
IRU WKH DFFODLP RI &KH] 3DQLVVH DQG IRU WDNLQJ FUHGLW IRU WKH SULPDU\
OHDGHUVKLS LQ WKH QHZ
&DOLIRUQLD &XLVLQH
PRYHPHQW DQG WKH $PHULFDQ
&XOLQDU\ 5HYROXWLRQ
LQ 6HF ZKDW LV ULJKW IRU )'$ LV QRW
QHFHVVDULO\ VR IRU WKH IRRG LQGXVWU\ ZKLFK LV MHRSDUGL]LQJ 86 SXEOLF
KHDOWK E\ ZLWKKROGLQJ LQIRUPDWLRQ IURP IRRG VDIHW\ LQYHVWLJDWRUV RU
SUHVVXULQJ UHJXODWRUV WR ZLWKGUDZ RU DOWHU SROLF\ GHVLJQHG WR SURWHFW
FRQVXPHUVLQ6HFZKDWLVULJKWIRUUDZIRRGLVWVLVQRWQHFHVVDULO\
VRIRUWKHFULWLFVZKRVXJJHVWHGWKDWVRPHEDFWHULDVXFKDV&ORVWULGLXP
ERWXOLQXPRU%DFLOOXVFHUHXVFDQIRUPVSRUHVWKDWVXUYLYHFRRNLQJZKLFK
WKHQJHUPLQDWHDQGUHJURZDIWHUWKHIRRGKDVFRROHGLQ6HFZKDW
LV ULJKW IRU 7KLV LQ WKH ROGHU GD\V ZKHQ KH DW ILUVW VWLSXODWHG WKH
REMHFWLYHV RI PROHFXODU JDVWURQRP\ LV QRW QHFHVVDULO\ VR IRU 7KLV
QRZDGD\V ZKHQ KH LQVWHDG VWLSXODWHV RQO\ REMHFWLYHV RI PROHFXODU
JDVWURQRP\LQ6HFZKDWLVULJKWIRU:DWVRQLQUHJDUGWRKLVGLUHFW
DFWLRQWDFWLFVWRSURWHFWVHDOLIHLVQRWQHFHVVDULO\VRIRUKLVYLFWLPVZKR
FRQVLGHUKLPDVDQHFRWHUURULVWLQ6HFZKDWLVULJKWIRU$SSHUWLQ
UHJDUGWRWKHXVHRIJODVVMDUVLVQRWQHFHVVDULO\VRIRU'XUDQGZKRODWHU
UHSODFHG JODVV MDUV ZLWK F\OLQGULFDO WLQ RU ZURXJKWLURQ FDQLVWHUV LQ
LQ6HFZKDWLVULJKWIRUWKH0F'RQDOG
V&RUSRUDWLRQLQUHJDUG
WRLWVPDUNHWLQJWDFWLFVLVQRWQHFHVVDULO\VRIRUWKHFULWLFVOLNH6FKORVVHU
ZKR GLVFXVVHV WKH WDFWLF
V LOOV WKH H[SORLWDWLRQ RI FKLOGUHQ
V QDwYHWp DQG
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
WUXVWLQJ QDWXUH LQ 6HF ZKDW LV ULJKW IRU WKH DGYRFDWHV RI IRRG
SKRWRJUDSK\ LQ DGYHUWLVLQJ LV QRW QHFHVVDULO\ VR IRU WKH FULWLFV VLQFH
IRRGSKRWRJUDSK\LQDGYHUWLVLQJFRPPRQO\EHFRPHVDVXEMHFWRISXEOLF
VFUXWLQ\ DQG DGYHUWLVHPHQWV RIWHQ H[DJJHUDWH DWWUDFWLYHQHVV DQG
VRPHWLPHVVL]HSHUKDSV PRVWIDPRXVO\LQ WKHFDVHRIIDVW IRRGLQ6HF
DQGZKDWLVULJKWIRUWKHDGYRFDWHVRIIXVLRQFXLVLQHVIRUDQHFOHFWLF
DSSURDFK LV QRW QHFHVVDULO\ VR IRU WKH FULWLFV EHFDXVH PL[LQJ IRRGV
WRJHWKHUIURPGLIIHUHQWVRXUFHVKDYHLWVRZQOLPLWVGHSHQGLQJRQYDULRXV
IDFWRUVLQ6HF
$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
+RZHYHU LW VKRXOG EH VWUHVVHG DV WKLV LV VRPHWKLQJ WKDW , UHJXODUO\
GLGLQP\SUHYLRXVERRNVDOPRVWYHUEDWLPWKDWWKHUHDUHGLIIHUHQWVKDGHV
RI JUD\ RU GLIIHUHQW GHJUHHV RI WUXWK LQ WKH WZR RSSRVLWHV DQG WKH
FODVVLILFDWLRQ LV QRW QHFHVVDULO\ PXWXDOO\ H[FOXVLYH HLWKHU ,Q IDFW HYHQ
ZKHQVRPHFRPELQDWLRQVRIWKHWZRRFFXUWKH\RQO\HQG XSVKDULQJWKH
VDPHGLDOHFWLFUHODWLRQVKLSEXWLQDGLIIHUHQWGHJUHH
$OVR WKHUH DUH VRPH RWKHU UHODWLRQVKLSV DV D NLQG RI IDPLO\
UHVHPEODQFH ZKLFK KDYH VRPHWKLQJ LQ FRPPRQ ZLWK WKH SULQFLSOH EXW
WKH\ DUH QRW H[DFWO\ WKH VDPH EXW RQO\ PRUH RU OHVV FRPSDUDEOH ZKLFK
YDULHVIURPFDVHWRFDVH
*RRGH[DPSOHVRIIDPLO\UHVHPEODQFHLQUHODWLRQWRWKHSULQFLSOHDUH
XQLIRUPLW\GLYHUVLW\LQWHUQDOQHVVH[WHUQDOQHVVLPPDQHQFHWUDQVFHQGHQFH
LQGHSHQGHQFHGHSHQGHQFH LVRODWHGQHVVLQWHUFRQQHFWLYHQHVV LQWHUQDOLW\
H[WHUQDOLW\DXWRQRP\LQWHUGHSHQGHQF\XQLYHUVDOQHVVUHODWLYHQHVVDQGVR
IRUWK
UG7KHVLV7KH3DUWLDOLW\7RWDOLW\3ULQFLSOH
7KH WKLUG WKHVLV UHIHUV WR WKH SDUWLDOLW\WRWDOLW\ SULQFLSOH RQ WKH
UHODWLRQVKLSV EHWZHHQ ZKROH DQG SDUWV LQ WKH FDWHJRU\ RI PHWKRG LQ
H[LVWHQWLDOGLDOHFWLFVZKLFKZDVILUVWSURSRVHGLQ)&DQGODWHU)3+*(2/
EDVHG RQ HDUOLHU ZRUNV OLNH )+& DQG )3+& LQ WKDW DQ\ DQDO\VLV RI D
SKHQRPHQRQLQWKHZRUOGUHTXLUHVERWKWKHH[DPLQDWLRQRIWKHLQGLYLGXDO
SDUWV DQG WKH ZKROH RI WKHP ZLWK WKH ZKROH DV EHLQJ QRW WKH VXP RI LWV
SDUWVZLWKRXWSULYLOHJLQJWKHZKROHDVPRUHLPSRUWDQWWKDQWKHSDUWVRU
YLFHYHUVDWKDWLVWKHSDUWVDVPRUHLPSRUWDQWWKDQWKHZKROH
,Q IDFW WKLV SULQFLSOH WDUJHWV WZR NLQGV RI PLVOHDGLQJ PHWKRGRORJLHV
DVXVHGRYHUWKHDJHVWKDWLVDJDLQLQWKHDEVHQFHRIEHWWHUZRUGVZKDW,
FDOOHGLQ)+&)3+&DQG)&UHGXFWLRQLVPDQGLWVRSSRVLWHUHYHUVH
UHGXFWLRQLVP ZKLFK FDQ WDNH IRXU PDMRU IRUPV LQ UHODWLRQ WR FRQFHSW
WKHRU\PHWKRGRORJ\DQGRQWRORJ\DVVXPPDUL]HGLQ6HF
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
7KXVUHGXFWLRQLVPDQGUHYHUVHUHGXFWLRQLVPFDQEHLFRQFHSWXDO
LLWKHRUHWLFDOLLLPHWKRGRORJLFDODQGLYRQWRORJLFDO$QGWKHZKROHLV
QRW WKH VXP RI LWV SDUWV DQG WKHUH LV QR SDUWLDOLW\ ZLWKRXW WRWDOLW\DQG
YLFHYHUVD
:RUNV RQ HPHUJHQFH DV LQ )& JHVWDOW SV\FKRORJ\ DV LQ
)3+*(2/ DQG WKH KHUPHQHXWLF FLUFOH DV LQ )3+'$ MXVW WR QDPH D
IHZRIWKHPKDYHFRQWULEXWHGWRWKHXQGHUVWDQGLQJRIZKROHDQGSDUWV
)RULQVWDQFHRQWKHRQHKDQGWKHUHLVSDUWLDOLW\HJWKHSDUWLDOYLHZ
RI 3DODWLQ WKH FRPSDQ\ GHYHORSLQJ WKH GUXJ %UHPHODQRWLGH LQ UHJDUG WR
LWV HIIHFWV RQ VH[XDOLW\ LQ 6HF WKH SDUWLDO YLHZV RI WKH WUDGLWLRQDO
IRRGJXLGHS\UDPLGVLQ6HFWKHSDUWLDOYLHZRIWKRVHLQWKHVWXG\RI
IRRGFKDLQVDQGHFRORJLFDOS\UDPLGLQ6HFWKHSDUWLDOYLHZRIUDZ
YHJDQLVWVLQUHJDUGWRUDZIRRGLQ6HFWKHSDUWLDOYLHZRI0DOWKXV
LQ UHJDUG WR IRRG VHFXULW\ DQG RYHUSRSXODWLRQ LQ 6HF WKH SDUWLDO
YLHZ RI ORFDO HOLWHV JRYHUQPHQWV RU WUDQVQDWLRQDO FRUSRUDWLRQV LQ WKH
FDVHRI ODQGH[SURSULDWLRQDVVWXGLHGE\5REELQV>@LQ6HF
WKHSDUWLDOYLHZRI)DUP6DQFWXDU\LQUHJDUGWRWKHHWKLFVRIHDWLQJPHDW
LQ6HFWKHSDUWLDOYLHZRI:DWHUVDERXWWKH&XOLQDU\5HYROXWLRQLQ
6HFWKHSDUWLDOYLHZRIWKHUHJXODWRU\HQIRUFHPHQWVIRUIRRGVDIHW\
LQ &KLQD LQ 6HF WKH SDUWLDO YLHZ RI UDZ IRRGLVWV LQ UHJDUG WR
FRRNLQJLQ6HFWKHSDUWLDOYLHZRIPROHFXODUJDVWURQRP\IURPWKH
SHUVSHFWLYH RI .XUWL DQG 7KLV LQ 6HF WKH SDUWLDO YLHZ RI DQLPDO
ULJKWV IURP WKH SHUVSHFWLYHV RI :DWVRQ LQ 6HF WKH SDUWLDO YLHZ RI
FDQQLQJE\LWVLQYHQWRUVOLNH'XUDQGLQ6HFWKHSDUWLDOYLHZRIWKH
IDVWIRRGLQGXVWU\E\ LWVDGYRFDWHVOLNH0F'RQDOGVDQG%XUJHU.LQJLQ
6HFWKHSDUWLDOYLHZRIDSDUWLFXODUIRRGVW\OHWUHQGDWDJLYHQWLPH
LQ WKH KLVWRU\ RI IRRG SKRWRJUDSK\ LQ 6HF DQG WKHSDUWLDO YLHZ RI
HDFKUHJLRQDOFXLVLQHLQUHJDUGWRLWVSUHIHUUHGLQJUHGLHQWVDQGWHFKQLTXHV
LQ6HF
2QWKHRWKHUKDQGWKHUHLVDOVRWRWDOLW\HJWKHPRUHKROLVWLFYLHZRI
%UHPHODQRWLGH VXFK WKDW WKH ZKROH LV QRW WKH VXP RI LWV SDUWV WKDW LV LW
FDQQRWEHUHGXFHGWRWKHVXPRIRSSRVLQJYLHZVE\3DODWLQDQGLWVFULWLFV
VLQFHWKHUHZLOOHPHUJHQHZYLHZVLQWKHIXWXUHQRW\HWNQRZQWRGD\MXVW
DV WKHUH DUH DOUHDG\ QHZ UHVXOWV DERXW WKH VLGHHIIHFWV QRW NQRZQ DW WKH
WLPHDQGDOWHUQDWLYHGUXJVQRZDYDLODOEOHLQ6HFWKHPRUHKROLVWLF
YLHZ RI IRRG JXLGH S\UDPLGV VXFK WKDW WKH ZKROH LV QRW WKH VXP RI LWV
SDUWVWKDWLVLWFDQQRWEHUHGXFHGWRWKH VXPRIRSSRVLQJ YLHZVOLNHWKH
RQHVSURSRVHGE\86'$DQGWKHDOWHUQDWLYHVRQHVE\WKH+DUYDUG6FKRRO
RI 3XEOLF +HDOWK DQG WKH 8QLYHUVLW\ RI 0LFKLJDQ ,QWHJUDWLYH 0HGLFLQH
VLQFHWKHUHZLOOHPHUJHQHZYLHZVLQWKHIXWXUHQRW\HWNQRZQWRGD\MXVW
DVWKHUHDUHDOUHDG\FULWLFVZKRDOVRUHMHFWWKHDOWHUQDWLYHYHUVLRQVLQ6HF
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
WKH PRUH KROLVWLF YLHZ RI WKH VWXG\ RI IRRG FKDLQV DQG HFRORJLFDO
S\UDPLGVXFKWKDWWKHZKROHLVQRWWKHVXPRILWVSDUWVWKDWLVLWFDQQRWEH
UHGXFHG WR WKH VXP RI RSSRVLQJ YLHZV LQ WKH OLWHUDWXUH VLQFH WKHUH ZLOO
HPHUJH QHZ YLHZV LQ WKH IXWXUH QRW \HW NQRZQ WRGD\ MXVW DV WKHUH DUH
DOUHDG\ FULWLFDO YLHZV QRZDGD\V DJDLQVW WKH VWXG\ LQ TXHVWLRQ LQ 6HF
WKH PRUH KROLVWLF YLHZ RI UDZ IRRG VXFK WKDW WKH ZKROH LV QRW WKH
VXPRILWVSDUWVWKDWLVLWFDQQRWEHUHGXFHGWRWKHVXPRIRSSRVLQJYLHZV
OLNH UDZ YHJDQLVWV UDZ YHJHWDULDQV UDZ DQLPDO IRRGLVWV DQG WKH FULWLFV
VLQFHWKHUHZLOOHPHUJHQHZYLHZVLQWKHIXWXUHQRW\HWNQRZQWRGD\MXVWV
WKHUHDUHDOUHDG\HYHUQHZVWXGLHVZKLFKFKDOOHQJHWKHYLHZVRISUHYLRXV
RQHVQRZDGD\VLQ6HFWKHPRUHKROLVWLFYLHZRIIRRGVHFXULW\DQG
RYHUSRSXODWLRQ VXFK WKDW WKH ZKROH LV QRW WKH VXP RI LWV SDUWV WKDW LV LW
FDQQRW EH UHGXFHG WR WKH VXP RI RSSRVLQJ YLHZV OLNH 0DOWKXV DQG KLV
FULWLFVVLQFHWKHUHZLOOHPHUJHQHZYLHZVDQGIDFWRUVLQWKHIXWXUHQRW\HW
NQRZQ WRGD\ MXVW DV QR RQH LQ WKH ROGHU GD\V FRXOG KDYH IRUHVHHQ WKH
JUHHQUHYROXWLRQWHFKQRORJLFDOLQFUHDVHVWKHRSHQLQJRIQHZWHUULWRU\WR
DJULFXOWXUHDQGLQFUHDVLQJLQWHUQDWLRQDOWUDGHLQWKHWKFHQWXU\LQ6HF
WKHPRUHKROLVWLFYLHZRIODQGH[SURSULDWLRQVXFKWKDWWKHZKROHLV
QRW WKH VXP RI LWV SDUWV WKDW LV LW FDQQRW EH UHGXFHG WR WKH VXP RI
RSSRVLQJ YLHZV RI ORFDO HOLWHV JRYHUQPHQWV RU WUDQVQDWLRQDO
FRUSRUDWLRQVRQWKHRQHKDQGDQGWKHLUFULWLFVOLNH5REELQVRQWKHRWKHU
KDQG VLQFH WKHUH ZLOO HPHUJH QHZ YLHZV LQ WKH IXWXUH QRW \HW NQRZQ
WRGD\ MXVW DV WKHUH DUH DOUHDG\ FULWLFLVPV DERXW YLHZV RQ ERWK VLGHV LQ
6HFWKHPRUHKROLVWLFYLHZRIWKHHWKLFVRIHDWLQJPHDWVXFKWKDWWKH
ZKROHLVQRWWKHVXPRILWVSDUWVWKDWLVLWFDQQRWEHUHGXFHGWRWKHVXPRI
RSSRVLQJ YLHZV RI )DUP 6DQFWXDU\ ) - )DLVRQ DQG RWKHUV VLQFH WKHUH
ZLOOHPHUJHQHZYLHZVLQWKHIXWXUHQRW\HWNQRZQWRGD\MXVWDVWKHUHDUH
DOUHDG\ FULWLFLVPV ZKLFK TXHVWLRQ WKH FODLPV RQ RSSRVLQJ VLGHV LQ 6HF
WKH PRUH KROLVWLF YLHZ RI WKH &XOLQDU\ 5HYROXWLRQ VXFK WKDW WKH
ZKROHLVQRWWKHVXPRILWVSDUWVWKDWLVLWFDQQRWEHUHGXFHGWRWKHVXPRI
RSSRVLQJ YLHZV RI :DWHUV 7RZHUV DQG RWKHUV VLQFH WKHUH ZLOO HPHUJH
QHZ YLHZV LQ WKH IXWXUH QRW \HW NQRZQ WRGD\ MXVW DV WKHUH DUH DOUHDG\
GLIIHUHQWFULWLFLVPVE\IRRGFULWLFVDERXWGLIIHUHQWILJXUHVLQWKHFXOLQDU\
UHYROXWLRQ DQG LWV DIWHUPDWK LQ 6HF WKH PRUH KROLVWLF YLHZ RI
UHJXODWRU\HQIRUFHPHQWVIRUIRRGVDIHW\VXFKWKDWWKHZKROHLVQRWWKHVXP
RILWVSDUWVWKDWLVLWFDQQRWEHUHGXFHGWRWKHVXPRIRSSRVLQJUHJXODWRU\
HQIRUFHPHQWV RI $XVWUDOLD &KLQD WKH (8 3DNLVWDQ WKH 86 HWF VLQFH
WKHUH ZLOO HPHUJH QHZ HQIRUFHPHQWV LQ WKH IXWXUH QRW \HW NQRZQ WRGD\
MXVW DV WKHUH DUH DOUHDG\ GLIIHUHQW FULWLFLVPV DJDLQVW WKH UHJXODWRU\
HQIRUFHPHQWV LQ DOO WKHVH FRXQWULHV QRZDGD\V LQ 6HF WKH PRUH
KROLVWLF YLHZ RI FRRNLQJ VXFK WKDW WKH ZKROH LV QRW WKH VXP RI LWV SDUWV
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
WKDWLVLWFDQQRWEHUHGXFHGWRWKHVXPRIRSSRVLQJYLHZVRIUDZIRRGLVP
DQG WKHLU FULWLFV VLQFH WKHUH ZLOO HPHUJH QHZ YLHZV LQ WKH IXWXUH QRW \HW
NQRZQ WRGD\ MXVW DV WKHUH DUH DOUHDG\ FULWLFLVPV DJDLQVW ERWK RI WKHP
QRZDGD\VLQ6HFWKHPRUHKROLVWLFYLHZRIPROHFXODUJDVWURQRP\
VXFKWKDWWKHZKROHLVQRWWKHVXPRILWVSDUWVWKDWLVLWFDQQRWEHUHGXFHG
WRWKHVXPRIWKHGLIIHUHQWYLHZVE\.XUWL7KLV+DOOLGD\1REOH/RZH
&DUrPH DQG RWKHUV VLQFH WKHUH ZLOO HPHUJH QHZ YLHZV LQ WKH IXWXUH QRW
\HW NQRZQ WRGD\ MXVW DV WKHUH DUH DOUHDG\ QRZDGD\V RWKHU YLHZV E\
GLIIHUHQW FULWLFV DJDLQVW WKHP DOO LQ 6HF WKH PRUH KROLVWLF YLHZ RI
DQLPDO ULJKWV VXFK WKDW WKH ZKROH LV QRW WKH VXP RI LWV SDUWV WKDW LV LW
FDQQRW EH UHGXFHG WR WKH VXP RI RSSRVLQJ YLHZV RI :DWVRQ KLV ULYDO
*UHHQSHDFH WKH -DSDQHVH JRYHUQPHQW HWF VLQFH WKHUH ZLOO HPHUJH QHZ
YLHZVLQWKHIXWXUHQRW\HWNQRZQWRGD\MXVWDVWKHUHDUHDOUHDG\GLIIHUHQW
YLHZVE\WKHFULWLFVDJDLQVWWKHPDOOLQ6HFWKHPRUHKROLVWLFYLHZ
RIFDQQLQJVXFKWKDWWKHZKROHLVQRWWKHVXPRILWVSDUWVWKDWLVLWFDQQRW
EH UHGXFHG WR WKH VXP RI RSSRVLQJ YLHZV RI $SSHUW 'XUDQG DQG WKHLU
FULWLFVHWFVLQFHWKHUHZLOOHPHUJHQHZYLHZVLQWKHIXWXUHQRW\HWNQRZQ
WRGD\ MXVW DV WKHUH DUH DOUHDG\ FULWLFLVPV QRZDGD\V ZKLFK DUH FULWLFDO WR
WKHP DOO LQ 6HF WKH PRUH KROLVWLF YLHZ RI WKH IDVW IRRG LQGXVWU\
VXFKWKDWWKHZKROHLVQRWWKHVXPRILWVSDUWVWKDWLVLWFDQQRWEHUHGXFHG
WR WKH VXP RI RSSRVLQJ YLHZV RI 0F'RQDOGV %XUJHU .LQJ WKHLU FULWLFV
HWFVLQFHWKHUHZLOOHPHUJHQHZYLHZVLQWKHIXWXUHQRW\HWNQRZQWRGD\
MXVW DV WKHUH DUH DOUHDG\ FULWLFLVPV DJDLQVW WKHP DOO QRZDGD\V LQ 6HF
WKHPRUHKROLVWLFYLHZRIIRRGVW\OHVXFKWKDWWKHZKROHLVQRWWKH
VXPRILWVSDUWVWKDWLVLWFDQQRWEHUHGXFHGWRWKHVXPRIRSSRVLQJYLHZV
RIGLIIHUHQWIRRGVW\OHWUHQGVDQGWKHLUFULWLFVVLQFHWKHUHZLOOHPHUJHQHZ
YLHZVLQWKHIXWXUHQRW\HWNQRZQWRGD\MXVWDVWKHUHDUHDOUHDG\FULWLFLVPV
DJDLQVW WKHP DOO QRZDGD\V LQ 6HF DQG WKH PRUH KROLVWLF YLHZ RI
FXLVLQHVXFKWKDWWKHZKROHLVQRWWKHVXPRILWVSDUWVWKDWLVLWFDQQRWEH
UHGXFHGWRWKHVXPRIRSSRVLQJYLHZVRIGLIIHUHQWUHJLRQDOFXLVLQHVVLQFH
WKHUHZLOOHPHUJHQHZFXLVLQHVLQWKHIXWXUHQRW\HWNQRZQWRGD\MXVWDV
WKHUHDUHDOUHDG\FULWLFLVPVDJDLQVWWKHPQRZDGD\VLQ6HF
$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
+RZHYHU LW VKRXOG EH VWUHVVHG DV WKLV LV VRPHWKLQJ WKDW , UHJXODUO\
GLGLQP\SUHYLRXVERRNVDOPRVWYHUEDWLPWKDWWKHUHDUHGLIIHUHQWVKDGHV
RI JUD\ RU GLIIHUHQW GHJUHHV RI WUXWK LQ WKH WZR RSSRVLWHV DQG WKH
FODVVLILFDWLRQ LV QRW QHFHVVDULO\ PXWXDOO\ H[FOXVLYH HLWKHU ,Q IDFW HYHQ
ZKHQVRPHFRPELQDWLRQVRIWKHWZRRFFXUWKH\RQO\HQG XSVKDULQJWKH
VDPHGLDOHFWLFUHODWLRQVKLSEXWLQDGLIIHUHQWGHJUHH
$OVR WKHUH DUH VRPH RWKHU UHODWLRQVKLSV DV D NLQG RI IDPLO\
UHVHPEODQFH ZKLFK KDYH VRPHWKLQJ LQ FRPPRQ ZLWK WKH SULQFLSOH EXW
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
WKH\ DUH QRW H[DFWO\ WKH VDPH EXW RQO\ PRUH RU OHVV FRPSDUDEOH ZKLFK
YDULHVIURPFDVHWRFDVH
*RRGH[DPSOHVRIIDPLO\UHVHPEODQFHLQUHODWLRQWRWKHSULQFLSOHDUH
LQGLYLGXDOLVWLFQHVVKROLVWLFQHVV SDUWQHVVZKROHQHVV DQDO\VLVV\QWKHVLV
DQGWKHOLNH
WK7KHVLV7KH3UHGLFWDELOLW\8QSUHGLFWDELOLW\3ULQFLSOH
7KHIRXUWKWKHVLVLVFDOOHGWKHSUHGLFWDELOLW\XQSUHGLFWDELOLW\SULQFLSOH
RQ WKH RFFXUUHQFH RI HYHQWV LQ WKH FDWHJRU\ RI PHWKRG LQ H[LVWHQWLDO
GLDOHFWLFVZKLFKZDVILUVWSURSRVHGLQ)&DQGODWHURWKHUERRNVRIPLQH
LQWKDWERWKSUHGLFWDELOLW\DQGXQSUHGLFWDELOLW\KDYHDPDMRUUROHWRSOD\LQ
WKH RFFXUUHQFH RI WKLQJV VR WKDW QHLWKHU GHWHUPLQLVP QRU LQGHWHUPLQLVP
ZLQV WKH FHQWXULHVROG ILJKW 7KHUH LV QR SUHGLFWDELOLW\ ZLWKRXW
XQSUHGLFWDELOLW\DQGYLFHYHUVD
7KHUHDUHHYHQWVZKLFKDUHSUHGLFWDEOHMXVWDVWKHUHDUHWKRVHZKLFK
DUHQRW2UZKDWLVUHJDUGHGDVXQSUHGLFWDEOHDWRQHSRLQWLQWLPHPD\WXUQ
RXWWREHSUHGLFWDEOHODWHUDQGFRQYHUVHO\ZKDWLVGHHPHGDVSUHGLFWDEOH
PD\WXUQRXWWRQRWEHVRSUHGLFWDEOH(YHQLQSUHGLFWDELOLW\RXWFRPHVDUH
VXEMHFWWRXQFHUWDLQW\WKHGHJUHHRIZKLFKYDULHVIURPFDVHWRFDVH
:RUNV RQ FRPSOH[LW\ WKHRU\ DV LQ )& TXDQWXP PHFKDQLFV DV LQ
)3+67 DQG )3+* IUHTXHQF\ SUREDELOLW\ VXEMHFWLYH RU %D\HVLDQ
SUREDELOLW\DQGVSHFLDOFDXVHVDVLQ)3+*$0MXVWWRQDPHDIHZRI
WKHPKDYHFRQWULEXWHGWRWKHXQGHUVWDQGLQJRIXQFHUWDLQLW\
)RU LQVWDQFH RQ WKH RQH KDQG WKHUH LV SUHGLFWDELOLW\ HJ WKH
SUHGLFWDEOH WHQGHQF\ RI D GUXJ FRPSDQ\ OLNH 3DODWLQ WR SURPRWH WKH
DSKURGLVLDFV WKDW LW VHOOV LQ 6HF WKH SUHGLFWDEOH WHQGHQF\ RI HDFK
IRRGJXLGHS\SUDPLGWRUHFRPPHQGFHUWDLQIRRGJURXSVIRUFRQVXPSWLRQ
LQ 6HF WKH SUHGLFWDEOH WHQGHQF\ RI DQ HFRV\VWHP WR SURGXFH D
VWDQGDUG HFRORJLFDO S\UDPLG ZKLFK DOORZV IRU RUJDQLVPV RQ WKH ORZHU
OHYHOVWRQRWRQO\PDLQWDLQDVWDEOHSRSXODWLRQEXWWRDOVRWUDQVIHUHQHUJ\
XS WKH S\UDPLG LQ 6HF WKH SUHGLFWDEOH WHQGHQF\ RI WKRVH LQ UDZ
IRRGLVPWRDGYRFDWHUDZIRRGGLHWVLQ6HFWKHSUHGLFWDEOHWHQGHQF\
RIWKRVHIRU0DOWKXVLDQLVPWRDUJXHWKDWKXPDQLW\
VDELOLW\WRUHSURGXFH
WRR UDSLGO\ GRRPHG HIIRUWV DW SHUIHFWLRQ DQG FDXVH YDULRXV RWKHU
SUREOHPV LQ 6HF WKH SUHGLFWDEOH WHQGHQF\ RI WKH DGYRFDWHV RI
JOREDOL]DWLRQQRZDGD\VWRVSHDNDERXWLWVSRVLWLYHHFRQRPLFDQGVRFLDO
EHQHILWV LQ 6HF WKH SUHGLFWDEOH WHQGHQF\ RI WKRVH LQ +LQGXLVP WR
SUHIHUYHJHWDULDQLVPLQ6HFWKHSUHGLFWDEOHWHQGHQF\RIWKRVHLQ
WKH$PHULFDQ&XOLQDU\5HYROXWLRQWRDGYRFDWHIXVLRQFXLVLQH>LQWHJUDWLQJ
GLVSDUDWH FRRNLQJ VW\OHV DQG LQJUHGLHQWV@ LQ 6HF WKH SUHGLFWDEOH
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
HUD VLQFH WKHUH DUH DOUHDG\ DOWHUQDWLYHV LQ WKH V NQRZQ DV WKH 1HZ
$PHULFDQ&XLVLQHLQ6HFWKHPRUHGLIILFXOWWDVNWRSUHGLFWH[DFWO\
WKHH[WHQWWRZKLFKWKH6WDWH)RRGDQG'UXJ$GPLQLVWUDWLRQLQ&KLQDZLOO
EH VXFFHVVIXO LQ HQIRUFLQJ UHJXODWRU\ VWDQGDUGV IRU IRRG VDIHW\ LQ D
SDUWLFXODUIXWXUHKLVWRULFDOHUDVLQFHWKHUHDUHDOUHDG\SHUVLVWHQWSUREOHPV
ZLWK WKH UHJXODWRU\ HQIRUFHPHQWV DV VKRZQ LQ WKH FULWLFLVPV WKDW
UHJXODWLRQV DUH QRW ZHOO NQRZQ E\ WKH WUDGH DQG WKDW WUDGLWLRQDO
PDUNHWLQJV\VWHPVZKHWKHULQ&KLQDRUWKHUHVWRI$VLDSUHVHQWO\SURYLGH
OLWWOHPRWLYDWLRQRULQFHQWLYHIRULQGLYLGXDOIDUPHUVWRPDNHLPSURYHPHQWV
WRHLWKHUTXDOLW\RUVDIHW\LQ6HFWKHPRUHGLIILFXOWWDVNWRSUHGLFW
H[DFWO\ WKH H[WHQW WR ZKLFK UDZ IRRGLVP ZLOO UHPDLQ LQIOXHQWLDO LQ D
SDUWLFXODUIXWXUHKLVWRULFDOHUDVLQFHWKHUHDUHRWKHUVWXGLHVZKLFKVKRZHG
WKDWKHDWLVXVHGLQWKHSUHSDUDWLRQRIIRRGLQRUGHUWRNLOORULQDFWLYDWH
SRWHQWLDOO\ KDUPIXO RUJDQLVPV VXFK DV EDFWHULD DQG YLUXVHV DV ZHOO DV
YDULRXV SDUDVLWHV VXFK DV WDSHZRUPV DQG 7R[RSODVPD JRQGLL LQ 6HF
WKH PRUH GLIILFXOW WDVN WR SUHGLFW H[DFWO\ WKH H[WHQW WR ZKLFK WKH
REMHFWLYHV RI PROHFXODU JDVWURQRP\ DV FXUUHQWO\ GHILQHG ZLOO UHPDLQ
LQIOXHQWLDO LQ D SDUWLFXODU IXWXUH KLVWRULFDO HUD VLQFH WKH ROGHU REMHFWLYHV
ZHUH DOUHDG\ FKDQJHG IURP WR WKH FXUUHQW VR LW LV QRW FOHDU LI QHZ
FKDQJHV ZLOO KDSSHQ DJDLQ LQ WKH IXWXUH LQ 6HF WKH PRUH GLIILFXOW
WDVN WR SUHGLFW H[DFWO\ WKH H[WHQW WR ZKLFK 6HD 6KHSKHUG ZLOO UHPDLQ
RSHUDWLRQDO LQ D SDUWLFXODU IXWXUH KLVWRULFDO HUD VLQFH WKHUH DUH DOUHDG\
LQFUHDVLQJRSSRVLWLRQE\GLIIHUUHQWJRYHUQPHQWVDJDLQVWLWVYLROHQWWDFWLFV
LQ6HF$SSHUWFRXOGQRWSUHGLFWDWWKHWLPHWKDW'XUDQGZRXOGODWHU
UHSODFH JODVV MDUV ZLWK F\OLQGULFDO WLQ RU ZURXJKWLURQ FDQLVWHUV LQ
LQ6HFWKHPRUHGLIILFXOWWDVNWRSUHGLFWH[DFWO\WKHH[WHQWWR
ZKLFK WKH IDVW IRRG FRUSRUDWLRQV OLNH 0F'RQDOGV DQG %XUJHU .LQJ ZLOO
FRQWLQXH LQ EXVLQHVV LQ D SDUWLFXODU IXWXUH KLVWRULFDO HUD VLQFH GLIIHUHQW
RXWOHWVDQGYDULDQWVRIIDVWIRRGULVHDQGIDOOLQLWVKLVWRU\DIRUHGHVFULEHG
LQ6HFWKHPRUHGLIILFXOWWDVNWRSUHGLFWH[DFWO\WKHH[WHQWWRZKLFK
D SDUWLFXODU IRRG VW\OH ZLOO UHPDLQ LQIOXHQWLDO LQ D SDUWLFXODU IXWXUH
KLVWRULFDO HUD VLQFH ZKDW LV UHJDUGHG DV D EHDXWLIXO IRRG SUHVHQWDWLRQ LV
UHODWLYH WR D KLVWRULFDO HUD LQ 6HF DQG WKH PRUH GLIILFXOW WDVN WR
SUHGLFWH[DFWO\WKHH[WHQWWRZKLFKIXVLRQFXLVLQHZLOOFRQWLQXHLWVJURZLQJ
LQIOXHQFH LQ D SDUWLFXODU IXWXUH KLVWRULFDO HUD VLQFH WKHUH DUH OLPLWLQJ
IDFWRUVDJDLQVWLWVZLGHVSUHDGDFFHSWDQFHLQ6HF
$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
$JDLQLWVKRXOGEHVWUHVVHG KRZHYHUWKDWWKHUHDUHGLIIHUHQWVKDGHV
RI JUD\ RU GLIIHUHQW GHJUHHV RI WUXWK LQ WKH WZR RSSRVLWHV DQG WKH
FODVVLILFDWLRQ LV QRW QHFHVVDULO\ PXWXDOO\ H[FOXVLYH HLWKHU ,Q IDFW HYHQ
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
ZKHQVRPHFRPELQDWLRQVRIWKHWZRRFFXUWKH\RQO\HQG XSVKDULQJWKH
VDPHGLDOHFWLFUHODWLRQVKLSEXWLQDGLIIHUHQWGHJUHH
$OVR WKHUH DUH VRPH RWKHU UHODWLRQVKLSV DV D NLQG RI IDPLO\
UHVHPEODQFH ZKLFK KDYH VRPHWKLQJ LQ FRPPRQ ZLWK WKH SULQFLSOH EXW
WKH\ DUH QRW H[DFWO\ WKH VDPH EXW RQO\ PRUH RU OHVV FRPSDUDEOH ZKLFK
YDULHVIURPFDVHWRFDVH
*RRGH[DPSOHVRIIDPLO\UHVHPEODQFHLQUHODWLRQWRWKHSULQFLSOHDUH
VXUHQHVVDUELWUDULQHVV GHWHUPLQLVWLFQHVVUDQGRPQHVV OLNHOLQHVVULVNLQHVV
VXUHQHVVGRXEWIXOQHVV GHWHUPLQLVWLFQHVVLQGHWHUPLQLVWLFQHVV FHUWDLQW\
XQFHUWDLQW\DQGVRIRUWK
WK7KHVLV7KH([SOLFDELOLW\,QH[SOLFDELOLW\3ULQFLSOH
7KHILIWKWKHVLVLVFDOOHGWKHH[SOLFDELOLW\LQH[SOLFDELOLW\SULQFLSOHRQ
WKH XQGHUO\LQJ PHFKDQLVPV RI WKLQJV LQ WKH FDWHJRU\ RI PHWKRG LQ
H[LVWHQWLDO GLDOHFWLFV ZKLFK ZDV SURSRVHG LQ )3+8 DQG RWKHU ERRNV RI
PLQH LQ WKDW ERWK H[SOLFDELOLW\ DQG LQH[SOLFDELOLW\ DUH SDUW RI WKH
XQGHUVWDQGLQJRIWKLQJV7KHUHLVQRH[SOLFDELOLW\ZLWKRXWLQH[SOLFDELOLW\
DQGYLFHYHUVD
7KLVSULQFLSOHWHOOVXVWKHGXDOQDWXUHRIWKHUHVHDUFKGLOHPPDLQWKDW
LIUHDOLW\FDQEHH[SODLQHGLQVRPHZD\VLWDOVRKDVLWVRWKHUZD\VZKLFK
DUHQRWTXLWHH[SODLQDEOHDWDJLYHQSRLQWLQWLPH
)RU LQVWDQFH RQ WKH RQH KDQG WKHUH LV H[SOLFDELOLW\ HJ WKH
H[SODQDWLRQ RI WKH GHVLUDELOLW\ RI \RKLPELQH RQ WKH EDVLV RI LWV
HIIHFWLYHQHVV E\ WKH DGYRFDWHV LQ 6HF WKH H[SODQDWLRQ E\ WKH
DGYRFDWHVRIWKH+DUYDUG6FKRRORI3XEOLF+HDOWKWKDWLWVKHDOWK\HDWLQJ
S\UDPLG LV EHWWHU EHFDXVH LW LQFOXGHV FDOFLXP DQG PXOWLYLWDPLQ
VXSSOHPHQWVDVZHOODVPRGHUDWHDPRXQWVRIDOFRKRODVDQDOWHUQDWLYHWR
WKH )RRG *XLGH 3\UDPLG LQ 6HF WKH H[SODQDWLRQ E\ WKRVH LQ WKH
VWXG\RIIRRGFKDLQVDQGHFRORJLFDOS\UDPLGWKDWWKHUHDUHRUJDQLVPVDW
DVSHFLILFWURSKLFOHYHOUHIOHFWLQJWKHUHODWLRQVKLSEHWZHHQELRPDVVDQG
WURSKLF OHYHO LQ 6HF WKH H[SODQDWLRQ E\ WKH DGYRFDWHV RI UDZ
IRRGLVP WKDW GLJHVWLYH HQ]\PHV LQ UDZ IRRGV >VXFK DV DP\ODVHV
SURWHDVHV DQG OLSDVHV@ DLG GLJHVWLRQ LQ 6HF WKH H[SODQDWLRQ E\
0DOWKXVDERXWWKHSHUFHLYHGLGHDVRIFKDULW\WRWKHSRRUW\SLILHGE\7RU\
SDWHUQDOLVPDVIXWLOHDVWKHVHZRXOGRQO\UHVXOWLQLQFUHDVHGQXPEHUVRI
WKH SRRU LQ 6HF WKH H[SODQDWLRQ E\ WKH DGYRFDWHV RI FDVK
FURSSLQJRQWKHEDVLVRILWVSURILWDELOLW\E\SODQWLQJPDVVLYHDUHDVZLWK
RQHFDVKFURSLQ6HFWKHH[SODQDWLRQE\3HWHU6LQJHUDQGRWKHUV
WKDWLIDOWHUQDWLYHPHDQVRIVXUYLYDOH[LVWRQHRXJKWWRFKRRVHWKHRSWLRQ
WKDW GRHV QRW FDXVH XQQHFHVVDU\ KDUP WR DQLPDOV VR PRVW HWKLFDO
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
YHJHWDULDQVDUJXHWKDWWKHVDPHUHDVRQVH[LVWDJDLQVWNLOOLQJDQLPDOVWRHDW
DV DJDLQVW NLOOLQJ KXPDQV WR HDW LQ 6HF WKH H[SODQDWLRQ E\ WKH
DGYRFDWHV RI &DOLIRUQLD FXLVLQH WKDW LW LV GHVLUDEOH RQ WKH EDVLV RI
LQWHJUDWLQJ GLVSDUDWH FRRNLQJ VW\OHV DQG LQJUHGLHQWV LQ 6HF WKH
H[SODQDWLRQE\)'$WKDWLWV)RRG&RGHLVGHVLUDEOHEHFDXVHLWSURYLGHVD
VFLHQWLILFDOO\ VRXQG WHFKQLFDO DQG OHJDO EDVLV IRU UHJXODWLQJ WKH UHWDLO DQG
IRRGVHUYLFHLQGXVWULHV IRUIRRGVDIHW\LQ6HFWKHH[SODQDWLRQE\
WKHDGYRFDWHVRIFRRNLQJWKDWFRRNLQJZLWKKHDWLVKHDOWK\EHFDXVHKHDW
LVXVHGLQWKHSUHSDUDWLRQRIIRRGLQRUGHUWRNLOORULQDFWLYDWHSRWHQWLDOO\
KDUPIXO RUJDQLVPV VXFK DV EDFWHULD DQG YLUXVHV DV ZHOO DV YDULRXV
SDUDVLWHV VXFK DV WDSHZRUPV DQG 7R[RSODVPD JRQGLL LQ 6HF WKH
H[SODQDWLRQE\WKHDGYRFDWHVRIIRRGSDLULQJWKDWLWLVGHVLUDEOHEHFDXVHRI
LWVDELOLW\WRKHOSXVLGHQWLI\ZKLFKIRRGVJRZHOOWRJHWKHULQ6HF
WKHH[SODQDWLRQE\:DWVRQRILWVYLROHQWWDFWLFVRQWKHEDVLVRIWKHODFNRI
PRUH DJJUHVVLYH LQWHUYHQWLRQ LQ WKH LQWHUQDWLRQDO FRPPXQLW\ LQ 6HF
WKH H[SODQDWLRQ E\ WKH DGYRFDWHV RI FDQQLQJ WKDW LW LV GHVLUDEOH WR
SUHVHUYHIRRGLQ6HFWKHH[SODQDWLRQE\WKHDGYRFDWHVRIWKHPHDW
SDFNLQJLQGXVWU\WKDWWKHXVHRILPPLJUDQWODERXULVGHVLUDEOHEHFDXVHRI
LWV ORZHU FRVW LQ 6HF WKH H[SODQDWLRQ E\ WKH DGYRFDWHV RI IRRG
SKRWRJUDSK\ LQ DGYHUWLVLQJ RQ WKH EDVLV WKDW VWUDLJKW SKRWR ZLOO RIWHQ
PDNHIRRGORRNOHVVDWWUDFWLYHWKDQLQUHDOLW\VRVWXGLROLJKWLQJPLJKWEH
UHTXLUHGVLPSO\WRJHWDIDLUSRUWUD\DOLQ6HFDQGWKHH[SODQDWLRQ
E\WKHDGYRFDWHVRI&KLQHVHFXLVLQHWKDWFXWWLQJIRRGLQWRVPDOOSLHFHVLV
LPSRUWDQW LQ RUGHU WR FRRN IRRGV TXLFNO\ DQG FRQVHUYH VFDUFH ILUHZRRG
DQGFKDUFRDOLQ6HF
2QWKHRWKHUKDQGWKHUHLVLQH[SOLFDELOLW\HJWKHODFNRIVXIILFLHQW
H[SODQDWLRQ RI ZK\ \RKLPELQH LV QHFHVVDULO\ HIIHFWLYH E\ WKH DGYRFDWHV
VLQFH WKHUH DUH VLGH HIIHFWV ZKLFK FDQ LQFOXGH UDSLG SXOVH VZHDWLQJ
DQG DQ[LHW\ UHDFWLRQV LQ VXVFHSWLEOH SHRSOH LQ 6HF WKH ODFN RI
VXIILFLHQW H[SODQDWLRQ E\ WKH DGYRFDWHV RI WKH +DUYDUG 6FKRRO RI 3XEOLF
+HDOWKRIZK\LWVKHDOWK\HDWLQJS\UDPLGLVQHFHVVDULO\EHWWHUVLQFHIRU
WKH FULWLFV OLNH 5D\ .XU]ZHLO DQG 7HUU\ *URVVPDQ ZKR SRLQWHG RXW LQ
)DQWDVWLF9R\DJH/LYH/RQJ(QRXJKWR/LYH)RUHYHUWKDWWKHJXLGHOLQHV
SURYLGHG LQ WKH +DUYDUG 3\UDPLG IDLO WR GLVWLQJXLVK EHWZHHQ KHDOWK\ DQG
XQKHDOWK\ RLOVDQG ZKROHJUDLQ IRRGV DUH JLYHQ PRUH SULRULW\ WKDQ
YHJHWDEOHV ZKLFK VKRXOG QRW EH WKH FDVH DV YHJHWDEOHV KDYH D ORZHU
JO\FHPLFORDGLQ6HFWKHODFNRIVXIILFLHQWH[SODQDWLRQE\WKRVHLQ
WKH VWXG\RI IRRGFKDLQVDQG HFRORJLFDOS\UDPLGRI ZK\ WKHUHDUHVRPHF
VSHFLILF RUJDQLVPVDW D VSHFLILF WURSKLF OHYHO EHFDXVH IRU WKH FULWLFV
WKH GHVLJQDWLRQ RI RUJDQLVPV LQ D S\UDPLG RI SURGXFWLYLW\ FDQ EH
VRPHZKDWDUELWUDU\MXVWDVLQUHJDUGWRWKHRUJDQLVPLQWKHIRRGFKDLQV
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
WKHUH LV WKH SUREOHP RI DVVLJQLQJ WKH GHFRPSRVHUV DQG GHWULWLYRUHV WR D
SDUWLFXODUWURSKLFOHYHOLQ6HFWKHODFNRIVXIILFLHQWH[SODQDWLRQE\
WKH DGYRFDWHV RI UDZ IRRGLVP DERXW WKH FODLP FRQFHUQLQJ GLJHVWLYH
HQ]\PHV VLQFH IRU WKH FULWLFV HQ]\PHV DV ZLWK RWKHU SURWHLQV
FRQVXPHGLQWKHGLHWDUHGHQDWXUHGDQGHYHQWXDOO\O\VHGE\WKHGLJHVWLYH
SURFHVV UHQGHULQJ WKHP QRQIXQFWLRQDO LQ 6HF WKH ODFN RI
VXIILFLHQWH[SODQDWLRQE\0DOWKXVDERXWWKHSHUFHLYHGLGHDVRIFKDULW\WR
WKH SRRU W\SLILHG E\ 7RU\ SDWHUQDOLVP DV IXWLOH VLQFH IRU WKH FULWLFV
WKH IHZ FHQWXULHV DIWHU 0DOWKXV KDG H[SHULHQFHG WKH JUHHQ UHYROXWLRQ
WHFKQRORJLFDO LQFUHDVHV WKH RSHQLQJ RI QHZ WHUULWRU\ WR DJULFXOWXUH DQG
LQFUHDVLQJ LQWHUQDWLRQDO WUDGH LQ 6HF WKH ODFN RI VXIILFLHQW
H[SODQDWLRQE\WKHDGYRFDWHVRIFDVKFURSSLQJRIZK\SODQWLQJPDVVLYH
DUHDV ZLWK RQH FDVK FURS LV QHFHVVDULO\ SURILWDEOH VLQFH IRU WKH FULWLFV
&XED LV DQ H[DPSOH RI JURZLQJ LPSRYHULVKPHQW DQG PDOQXWULWLRQ
FRQFXUUHQW ZLWK LQFUHDVLQJ FRQFHQWUDWLRQ RI ODQG DQG RWKHU UHVRXUFHV LQ
IHZHU KDQGV LQ 6HF WKH ODFN RI VXIILFLHQW H[SODQDWLRQ E\ 3HWHU
6LQJHUDQGRWKHUVRIZK\LWLVQHFHVVDULO\WREHDJDLQVWNLOOLQJDQLPDOVWR
HDWDVDJDLQVWNLOOLQJKXPDQVWRHDWVLQFHIRUWKHFULWLFVHTXDOLW\LQD
PRUDOFRPPXQLW\UHTXLUHVWKHFDSDELOLW\RIDOOSDUWLFLSDQWVWRPDNHPRUDO
GHFLVLRQV EXW DQLPDOV DUH LQFDSDEOH RI PDNLQJ HWKLFDO FKRLFHV VLQFH
IRUH[DPSOHDWLJHUZRXOGQRWUHIUDLQIURPHDWLQJDKXPDQEHFDXVHLWZDV
ZURQJ DQG LW ZRXOG GHFLGH ZKHWKHU WR DWWDFN EDVHG RQ ZKDW LW IHOW
ZRXOG DOORZ LW WR VXUYLYH LQ 6HF WKH ODFN RI VXIILFLHQW
H[SODQDWLRQE\WKHDGYRFDWHVRI&DOLIRUQLDFXLVLQHRIZK\IXVLRQFXLVLQHLV
QHFHVVDULO\GHVLUDEOHVLQFHIRUWKHFULWLFVWKRVHLQRWKHUFXLVLQHVOLNHWKH
&KLQHVHDQGWKH)UHQFKDUHQRWVRHQWKXVLDVWLFDERXW&DOLIRUQLDFXLVLQHLQ
6HFWKHODFNRIVXIILFLHQWH[SODQDWLRQE\)'$RIZK\LWV)RRG&RGH
LV GHVLUDEOH EHFDXVH IRU WKH FULWLFV WKH IRRG LQGXVWU\ GLVDJUHH DQG LV
MHRSDUGL]LQJ 86 SXEOLF KHDOWK E\ ZLWKKROGLQJ LQIRUPDWLRQ IURP IRRG
VDIHW\ LQYHVWLJDWRUV RU SUHVVXULQJ UHJXODWRUV WR ZLWKGUDZ RU DOWHU SROLF\
GHVLJQHG WR SURWHFW FRQVXPHUV LQ 6HF WKH ODFN RI VXIILFLHQW
H[SODQDWLRQ E\ WKH DGYRFDWHV RI FRRNLQJ RI ZK\ FRRNLQJ ZLWK KHDW LV
QHFHVVDULO\ KHDOWK\ EHFDXVH IRU WKH FULWLFV RWKHU VWXGLHV VLQFH
LQGLFDWH WKDW FRRNLQJ PHDW DW KLJK WHPSHUDWXUH FUHDWHV KHWHURF\FOLF
DPLQHV>+&$V@ZKLFKDUHWKRXJKWWRLQFUHDVHFDQFHUULVNLQKXPDQVLQ
6HF WKH ODFN RI VXIILFLHQW H[SODQDWLRQ E\ WKH DGYRFDWHV RI IRRG
SDLULQJ RI ZK\ LW LV QHFHVVDULO\ GHVLUDEOH EHFDXVH IRU WKH FULWLFV IRRG
SDLULQJGRHVQRWSURYLGHPDWFKLQJLQJUHGLHQWVEDVHGRQWKHLUFRPELQDWLRQ
RFFXUUHQFH LQ D YDVW UHFLSH GDWDEDVH DQG WKDW LW DOVR GRHV QRW RIIHU DQ\
QHZ FRPELQDWLRQV LQ 6HF WKH ODFN RI VXIILFLHQW H[SODQDWLRQ E\
:DWVRQ RI ZK\ LWV YLROHQW WDFWLFV DUH QHFHVVDULO\ GHVLUDEOH VR IRU KLV
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
YLFWLPVKLVYLROHQWWDFWLFV YLRODWHLQWHUQDWLRQDOODZDUHHFRWHUURULVWDQG
WHQGWRNLOOOLYHVDQGGDPDJHSURSHUWLHVRIRWKHUVLQ6HFWKHODFNRI
VXIILFLHQW H[SODQDWLRQ E\ WKH DGYRFDWHV RI FDQQLQJ RI ZK\ FDQQLQJ LV
QHFHVVDULO\GHVLUDEOHEHFDXVHRILWVDELOLW\WRSUHVHUYHIRRGVLQFHIRUWKH
FULWLFVLWFDQFDXVHOHDGSRLVRQLQJFDQOHDGWRXQEDODQFHGGLHWDU\VDOWDQG
FDQOHDGWRSDUDO\WLFLOOQHVVLQ6HFWKHODFNRIVXIILFLHQWH[SODQDWLRQ
E\ WKH DGYRFDWHV RI WKH PHDW SDFNLQJ LQGXVWU\ RI ZK\ WKH XVH RI
LPPLJUDQW ODERXU LV QHFHVVDULO\ GHVLUDEOH VLQFH IRU WKH FULWLFV OLNH
6FKORVVHUWKHSUDFWLFVLVH[SORLWDWLYHDQGOHYHOVRILQMXU\>LQWKHLQGXVWU\@
DUHDPRQJWKHKLJKHVWRIDQ\RFFXSDWLRQLQWKH8QLWHG6WDWHVLQ6HF
WKHODFNRIVXIILFLHQWH[SODQDWLRQE\WKHDGYRFDWHVRIIRRGSKRWRJUDSK\LQ
DGYHUWLVLQJ RI ZK\ LW LV QHFHVVDULO\ GHVLUDEOH EHFDXVH IRU WKH FULWLFV
IRRGSKRWRJUDSK\LQDGYHUWLVLQJFRPPRQO\EHFRPHVDVXEMHFWRISXEOLF
VFUXWLQ\ DV DGYHUWLVHPHQWV RIWHQ H[DJJHUDWH DWWUDFWLYHQHVV DQG
VRPHWLPHVVL]HSHUKDSV PRVWIDPRXVO\LQ WKHFDVHRIIDVW IRRGLQ6HF
DQG WKH ODFN RI VXIILFLHQW H[SODQDWLRQ E\ WKH DGYRFDWHV RI &KLQHVH
FXLVLQH RI ZK\ FXWWLQJ IRRG LQWR VPDOO SLHFHV LV QHFHVVDULO\ GHVLUDEOH
VLQFHLQGLIIHUHQWUHJLRLQDOFXLVLQHVOLNH5XVVLDQFXLVLQHFOLPDWHGRHVQRW
QHJDWLYHO\DIIHFWWKHVXSSO\RIIXHOIRUFRRNLQJDVPXFKDVLWGRHVWRWKH
&KLQHVHLQ6HF
$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
2QFH PRUH LW VKRXOG EH VWUHVVHG KRZHYHU WKDW WKHUH DUH GLIIHUHQW
VKDGHVRIJUD\RUGLIIHUHQWGHJUHHVRIWUXWKLQWKHWZRRSSRVLWHVDQGWKH
FODVVLILFDWLRQ LV QRW QHFHVVDULO\ PXWXDOO\ H[FOXVLYH HLWKHU ,Q IDFW HYHQ
ZKHQVRPHFRPELQDWLRQVRIWKHWZRRFFXUWKH\RQO\HQG XSVKDULQJWKH
VDPHGLDOHFWLFUHODWLRQVKLSEXWLQDGLIIHUHQWGHJUHH
$OVR WKHUH DUH VRPH RWKHU UHODWLRQVKLSV DV D NLQG RI IDPLO\
UHVHPEODQFH ZKLFK KDYH VRPHWKLQJ LQ FRPPRQ ZLWK WKH SULQFLSOH EXW
WKH\ DUH QRW H[DFWO\ WKH VDPH EXW RQO\ PRUH RU OHVV FRPSDUDEOH ZKLFK
YDULHVIURPFDVHWRFDVH
*RRGH[DPSOHVRIIDPLO\UHVHPEODQFHLQUHODWLRQWRWKHSULQFLSOHDUH
XQGHUO\LQJQHVVUHJXODUQHVV FDXVDWLRQUHJXODULW\ FDXVDWLRQFRUUHODWLRQ
H[SODQDWLRQGHVFULSWLRQ H[SODQDWLRQQDUUDWLRQ H[SODQDWLRQLQWHUSUHWDWLRQ
DQGVRIRUWK
WK7KHVLV7KH)LFWLRQ5HDOLW\3ULQFLSOH
7KHVL[WKWKHVLVLVFDOOHGWKHILFWLRQUHDOLW\SULQFLSOHRQWKHGLIIHUHQW
IDFHV RI UHDOLW\ LQ WKH FDWHJRU\ RI PHWKRG LQ H[LVWHQWLDO GLDOHFWLFV DV
ILUVWSURSRVHGLQ)3+/,7LQWKDWERWKILFWLRQDQGUHDOLW\FRH[LVW7KHUH
LVQRUHDOLW\ZLWKRXWILFWLRQDQGYLFHYHUVD
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
7KLV SULQFLSOH WHOOV XV WKH GLIIHUHQW FDWHJRULHV RI UHDOLW\ LQ WKDW LI
WKHUHLVUHDOLW\WKHUHLVDOVRVRPHILFWLRQLQLWMXVWDVLIWKHUHLVILFWLRQ
WKHUHLVDOVRVRPHUHDOLW\LQLW
)RULQVWDQFHRQWKHRQHKDQGWKHUHLVILFWLRQHJWKHILFWLRQDODVSHFW
RIDSKURGLVLDFVLQVRIDUDVWKHDOOHJHGUHVXOWVPD\KDYHEHHQPDLQO\GXH
WRPHUHEHOLHIE\WKHLUXVHUVWKDWWKH\ZRXOGEHHIIHFWLYH>LHWKHSODFHER
HIIHFW@LQ6HFWKHILFWLRQDODVSHFWRIWKH+DUYDUG3\UDPLGLQVRIDU
LW UHFRPPHQGV WKDW ZKROHJUDLQ IRRGV DUH JLYHQ PRUH SULRULW\ WKDQ
YHJHWDEOHV ZKLFK VKRXOG QRW EH WKH FDVH DV YHJHWDEOHV KDYH D ORZHU
JO\FHPLFORDGLQ6HFWKHILFWLRQDODVSHFWRIHFRORJLFDOS\UDPLGV
LQVRIDU DV WKDW WKH\ FDQ PDNH D WURSKLF OHYHO ORRN OLNH LW FRQWDLQV PRUH
HQHUJ\WKDQLWDFWXDOO\GRHVEHFDXVHIRUH[DPSOHDOOELUGVKDYHEHDNV
DQG VNHOHWRQV ZKLFK GHVSLWH WDNLQJ XS PDVV DUH QRW HDWHQ E\ WKH QH[W
WURSKLFOHYHOLQ6HFWKHILFWLRQDODVSHFWRIUDZIRRGLVPLQVRIDUDV
FHUWDLQ VWXGLHV KDYH LQGLFDWHG GHWULPHQWDO KHDOWK HIIHFWV VWHPPLQJ IURP
UDZYHJDQGLHWVDVDIRUHGHVFULEHGLQ6HFWKHILFWLRQDODVSHFWRI
0DOWKXVLDQLVP LQVRIDU DV IDPLQH LV PRUH SROLWLFDO WKDQ HFRQRPLF DV
SRLQWHG RXW E\ WKH FULWLF OLNH $PDUW\D 6HQ LQ 6HF WKH ILFWLRQDO
DVSHFW RI WKH DFFRXQW E\ 1DSROHRQ &KDJQRQ RI WKH <DQDPDPR RI
9HQH]XHODDQG%UD]LODVLWKDVEHHQKLJKO\FULWLFL]HGE\RWKHUVFKRODUV
LQ 6HF WKH ILFWLRQDO DVSHFW RI WKH FODLP DERXW WKH LQKXPDQH
WUHDWPHQWRIDQLPDOVDV)-)DLVRQSUHVLGHQWRI&DUUROOV)RRGVDUJXHG
WKDWWKH\
UHLQVWDWHRIWKHDUWFRQILQHPHQWIDFLOLWLHVDQGWKHFRQGLWLRQV
WKDWZHNHHSWKHVHDQLPDOVLQDUHPXFKPRUHKXPDQHWKDQZKHQWKH\ZHUH
RXW LQ WKH ILHOG LQ 6HF WKH ILFWLRQDO DVSHFW RI WKH FODLP WKDW WKH
&XOLQDU\ 5HYROXWLRQ LV RIWHQ FUHGLWHG WR $OLFH :DWHUV EHFDXVH VXFK
FODLPVDUHFRQWHVWHGDQGWKHPRYHPHQWLVDWWULEXWHGWRFROODERUDWLRQVRI
RWKHULQGLYLGXDOVLQ6HFWKHILFWLRQDODVSHFWRIWKHIRXUODZVWKDW
VSHFLILFDOO\ GHDO ZLWK IRRG VDIHW\ LQ 3DNLVWDQ EHFDXVH XQIRUWXQDWHO\
OLNHPDQ\RWKHUODZVWKHVHODZVUHPDLQYHU\SRRUO\HQIRUFHGLQ6HF
WKHILFWLRQDODVSHFWRIUDZIRRGLVPLQVRIDUDVDGLIIHUHQWUHVHDUFK
XVLQJDQDUWLILFLDOJXWKDVVKRZQWKDWLQWKHVSHFLILFFDVHRIFDURWHQRLGVD
JUHDWHU SURSRUWLRQ LV DEVRUEHG IURP FRRNHG YHJHWDEOHV WKDQ IURP UDZ
YHJHWDEOHV LQ 6HF WKH ILFWLRQDO DVSHFW RI PROHFXODU JDVWURQRP\
LQVRIDU DV LWV REMHFWLYHV ZHUH RULJLQDOO\ GHILQHG LQ WHUPV RI EXW KDYH
VLQFHEHHQFKDQJHGWRLQVWHDGLQ6HFWKHILFWLRQDODVSHFWRI6HD
6KHSKHUG LQVRIDU DV LW LQGXOJHV LQ VSUHDGLQJ OLEHOLQJ DQG IDOVHKRRG WR
DWWUDFW PHGLD DWWHQWLRQ LQ 6HF WKH ILFWLRQDO DVSHFW RI FDQQLQJ
LQVRIDU DV LW ZDV EHOLHYHG WR EH VDIH IRU IRRG SUHVHUYDWLRQ VLQFH IRU WKH
FULWLFVLWFDQFDXVHOHDGSRLVRQLQJFDQOHDGWRXQEDODQFHGGLHWDU\VDOWDQG
FDQ OHDG WR SDUDO\WLF LOOQHVV LQ 6HF WKH ILFWLRQDO DVSHFW RI WKH
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
0F'RQDOG
V &RUSRUDWLRQ LQVRIDU DV LWV PLVOHDGLQJ PDUNHWLQJ WDFWLFV DUH
IRU WKH H[SORLWDWLRQ RI FKLOGUHQ
V QDwYHWp DQG WUXVWLQJ QDWXUH LQ 6HF
WKHILFWLRQDODVSHFWRIIRRGSKRWRJUDSK\LQDGYHUWLVLQJLQVRIDUDVLW
H[DJJHUDWH>V@ DWWUDFWLYHQHVV DQG VRPHWLPHV VL]H LQ 6HF DQG WKH
ILFWLRQDO DVSHFW RI WKH FODVVLILFDWLRQ RI GLIIHUHQW UHJLRQDO FXLVLQHV LQ WKH
DUWLFOHDIRUHFLWHGVLQFHLWFDQEHDUELWUDU\VLQFHWKHFULWLFVFDQDVN+RZLV
5XVVLDQ FXLVLQH WR EH FODVVLILHG" ,V LW $VLDQ (XURSHDQ RU HOVH" %\ WKH
VDPH ORJLF WR ZKDW H[WHQW LV /DWLQ $PHULFDQ FXLVLQH (XURSHDQ E\
LQIOXHQFH"LQ6HF
2Q WKH RWKHU KDQG WKHUH LV UHDOLW\ HJ WKH UHDOLVWLF DVSHFW RI
DSKURGLVLDFV LQVRIDU DV WKURXJKRXW KLVWRU\ PDQ\ IRRGV GULQNV DQG
EHKDYLRUV KDYH KDG D UHSXWDWLRQ IRU PDNLQJ VH[ PRUH DWWDLQDEOH DQGRU
SOHDVXUDEOH LQ 6HF WKH UHDOLVWLF DVSHFW RI WKH +DUYDUG 3\UDPLG
LQVRIDULWUHFRPPHQGVFDOFLXPDQG PXOWLYLWDPLQVXSSOHPHQWVDV ZHOODV
PRGHUDWH DPRXQWV RI DOFRKRO DV DQ DOWHUQDWLYH WR WKH )RRG *XLGH
3\UDPLGLQ6HFWKHUHDOLVWLFDVSHFWRIHFRORJLFDOS\UDPLGVLQVRIDU
DV WKDW WKH\ WHOO XV VRPHWKLQJ DERXW ELRPDVV DQG WURSKLF OHYHO LQ 6HF
WKH UHDOLVWLF DVSHFW RI UDZ IRRGLVP LQVRIDU DV WKHUH DUH KHDOWK
EHQHILWV DV VKRZQ LQ D *HUPDQ UHVHDUFK LQ ZKLFK VKRZHG
VLJQLILFDQWEHQHILWVLQUHGXFLQJEUHDVWFDQFHUULVNZKHQODUJHDPRXQWVRI
UDZ YHJHWDEOH PDWWHUDUHLQFOXGHGLQ WKHGLHWLQ6HFWKHUHDOLVWLF
DVSHFW RI 0DOWKXVLDQLVP LQVRIDU DV SRSXODWLRQ JURZWK RQ (DUWK LV VWLOO
WRRKLJKDVSRLQWHGRXWE\3DXO(KUOLFK>@DQGWKHLQFUHDVHLQIRRG
SULFHV IURP WR SUHVHQW KDV LQVSLUHG IXUWKHU 0DOWKXVLDQ DUJXPHQWV
UHJDUGLQJWKHSURVSHFWVIRUJOREDOIRRGVXSSO\LQ6HFWKHUHDOLVWLF
DVSHFW RI WKH DFFRXQW E\ 1DSROHRQ &KDJQRQ RI WKH <DQDPDPR RI
9HQH]XHOD DQG %UD]LO HVSHFLDOO\ LQ UHJDUG WR WKHLU SUDFWLFH RI VKLIWLQJ
FXOWLYDWLRQ LQ 6HF WKH UHDOLVWLF DVSHFW RI WKH FODLP DERXW WKH
LQKXPDQH WUHDWPHQW RI DQLPDOV DV )DUP 6DQFWXDU\ VKRZHG XV WKDW
FRPPRGLI\LQJ DQG VODXJKWHULQJ DQLPDOV LV LQFRPSDWLEOH ZLWK WKH
GHILQLWLRQRI
KXPDQH
LQ6HFWKHUHDOLVWLFDVSHFWRIWKHFODLPWKDW
WKH&XOLQDU\5HYROXWLRQLVRIWHQFUHGLWHGWR$OLFH:DWHUVEHFDXVHRIKHU
SULPDU\ OHDGHUVKLS LQ WKH QHZ
&DOLIRUQLD &XLVLQH
PRYHPHQW DQG WKH
$PHULFDQ
&XOLQDU\ 5HYROXWLRQ
LQ6HFWKHUHDOLVWLFDVSHFWRIWKH
IRXU ODZV WKDW VSHFLILFDOO\ GHDO ZLWK IRRG VDIHW\ LQ 3DNLVWDQ EHFDXVH
WKHVHODZVKDYHWUHPHQGRXVFDSDFLW\WRDFKLHYHDWOHDVWPLQLPXPOHYHO
RIIRRGVDIHW\LQ6HFWKHUHDOLVWLFDVSHFWRIUDZIRRGLVPLQVRIDU
DV WKH FRRNLQJ RI YHJHWDEOHV DQG IUXLW FRQWDLQLQJ YLWDPLQ & ERWK HOXWHV
WKH YLWDPLQ LQWR WKH FRRNLQJ ZDWHU DQG GHJUDGHV WKH YLWDPLQ WKURXJK
R[LGDWLRQ LQ 6HF WKH UHDOLVWLF DVSHFW RI PROHFXODU JDVWURQRP\
LQVRIDU DV LW KDV FHUWDLQ REMHFWLYHV DOWKRXJK WKH H[DFW QXPEHU LV QRW
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
FHUWDLQLQ6HFWKHUHDOLVWLFDVSHFWRI6HD6KHSKHUGLQVRIDUDVLWLV
LQWHUHVWHG LQ DQLPDO ULJKWV LQ 6HF WKH UHDOLVWLF DVSHFW RI FDQQLQJ
LQVRIDUDVLWFDQSUHVHUYHIRRGIRUDORQJWLPHLQ6HFWKHUHDOLVWLF
DVSHFWRIWKH0F'RQDOG
V&RUSRUDWLRQLQVRIDUDVLWWULHVLWVEHVWWRVHOOLWV
RZQ IRUPV RI IDVW IRRG LQ 6HF WKH UHDOLVWLF DVSHFW RI IRRG
SKRWRJUDSK\ LQ DGYHUWLVLQJ LQVRIDU DV LW WULHV WR VHOO IRRG IRU WKH IRRG
FRPSDQ\ LQ TXHVWLRQ LQ 6HF DQG WKH UHDOLVWLF DVSHFW RI WKH
FODVVLILFDWLRQRIGLIIHUHQWUHJLRQDOFXLVLQHVLQWKHDUWLFOHDIRUHFLWHGLQVRIDU
LWJLYHVXVDURXJKLGHDRIGLIIHUHQWUHJLRQDOFXLVLQHVRIWKHZRUOGLQ6HF
$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
2QFH PRUH LW VKRXOG EH VWUHVVHG KRZHYHU WKDW WKHUH DUH GLIIHUHQW
VKDGHVRIJUD\RUGLIIHUHQWGHJUHHVRIWUXWKLQWKHWZRRSSRVLWHVDQGWKH
FODVVLILFDWLRQ LV QRW QHFHVVDULO\ PXWXDOO\ H[FOXVLYH HLWKHU ,Q IDFW HYHQ
ZKHQVRPHFRPELQDWLRQVRIWKHWZRRFFXUWKH\RQO\HQG XSVKDULQJWKH
VDPHGLDOHFWLFUHODWLRQVKLSEXWLQDGLIIHUHQWGHJUHH
$OVR WKHUH DUH VRPH RWKHU UHODWLRQVKLSV DV D NLQG RI IDPLO\
UHVHPEODQFH ZKLFK KDYH VRPHWKLQJ LQ FRPPRQ ZLWK WKH SULQFLSOH EXW
WKH\ DUH QRW H[DFWO\ WKH VDPH EXW RQO\ PRUH RU OHVV FRPSDUDEOH ZKLFK
YDULHVIURPFDVHWRFDVH
*RRGH[DPSOHVRIIDPLO\UHVHPEODQFHLQUHODWLRQWRWKHSULQFLSOHDUH
ILFWLRQQRQILFWLRQ ILFWLRQIDFW LPDJLQDWLRQIDFW LPDJLQDWLRQQRQILFWLRQ
VXEMHFWLYLW\REMHFWLYLW\DQGVRIRUWK
,Q5HODWLRQWR6WUXFWXUH
7KH QH[W ILYH WKHVHV DUH LQ UHODWLRQ WR VWUXFWXUH LQ H[LVWHQWLDO
GLDOHFWLFVDVVKRZQEHORZ
WK7KHVLV7KH)LQLWHQHVV7UDQVILQLWHQHVV
7KHVHYHQWKWKHVLVLVFDOOHGWKHILQLWHQHVVWUDQVILQLWHQHVVSULQFLSOHRQ
WKH QDWXUH RI QXPEHUV LQ WKH FDWHJRU\ RI VWUXFWXUH LQ H[LVWHQWLDO
GLDOHFWLFV DV ILUVW SURSRVHG LQ )3+* LQ WKDW LI WKHUH DUH ILQLWH WKLQJV
WKHUHDUHOLNHZLVHWUDQVILQLWHRQHVDQGYLFHYHUVD
7R DYRLG FRQIXVLRQ P\ XVDJH RI WKH ZRUG WUDQVILQLWH KHUH GLIIHUV
UDGLFDOO\ IURP WKH RQH XVHG E\ &DQWRU DQG RWKHU PDWKHPDWLFLDQV IRU
UHODWLYH LQILQLW\DQG LV PRUH OLPLWHG LQ OLJKW RI WKH SUREOHPV
FRQIURQWLQJ DQ\ DWWHPSW WR XQGHUVWDQG WKH LGHD RI LQILQLW\ EH LW E\
LQWXLWLRQLPDJLQDWLRQDQGFRQFHSWLRQDVGHWDLOHGO\DQDO\]HGLQ6HF
RI)3+*
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
,QVWHDG E\ WUDQVILQLW\ , DOORZ QXPEHUV ZKLFK FDQ EH PDQ\ WLPHV
ODUJHURU VPDOOHU IRU WKDW PDWWHUWKDQ WKH ILQLWH WKLQJV WKDW ZH
HQFRXQWHU LQ GDLO\ OLIH EXW WKH\ GR QRW KDYH WR EH UHODWHG WR WKH LGHD RI
LQILQLW\DWDOOZKLFKPD\QRWH[LVW
2IFRXUVHWKHUHPD\EHVRPHERUGHUOLQHFDVHVLQZKLFKLWLVQRWFOHDU
ZKHWKHU WKH QXPEHU LQ TXHVWLRQ LV WUDQVILQLWH LQ P\ XVDJH RU VLPSO\ D
PDWKHPDWLFDO FRQYHQLHQFH $ JRRG H[DPSOH RI D ERUGHUOLQH FDVH LV WKH
3ODQFNXQLWRIOHQJWKIRUWKHVPDOOHVWVSDFHSRVVLEO\PHDVXUHGLQQDWXUH
ZKLFK LV OHVV WKDQ ELOOLRQWKV RI WULOOLRQWKV RI WULOOLRQWKV RI DQ LQFK RU
VRPHWKLQJ OLNH PHWHUV 3 %DRIX D 1 0F$OHHU
:.9'&RUEHWWD
7KDW VDLGP\ XVDJH RI WUDQVILQLW\ FDQ DOVR UHVROYH RU EHWWHU
GLVVROYHDQDJHROGSUREOHPLQSKLORVRSK\NQRZQDV=HQR
VSDUDGR[HV
DVDOUHDG\H[SODLQHGLQ6HFRI)3+*
,QDQ\HYHQWLQUHODWLRQWRWKHILQLWHQHVVWUDQVILQLWHQHVVSULQFLSOHRQ
WKHRWKHUKDQGWKHUHLVILQLWHQHVVHJWKHILQLWHQXPEHURIWKHFDWHJRULHV
RI DSKURGLVLDFV OLNH WKH V\QWKHWLF DQG QDWXUDO NLQGV LQ 6HF WKH
ILQLWHQXPEHURIFDWHJRULHVRIIRRGJURXSVLQWKHIRRGJXLGHS\UDPLGVOLNH
WKH JURXSVLQWKH $PHULFDQYHUVLRQLQ6HFWKHILQLWH QXPEHURI
WKHOHYHOVLQDIRRGFKDLQOHQJWKOLNHRUIRULOOXVWUDWLRQLQ6HF
WKHILQLWHQXPEHURIWKHFDWHJRULHVRIUDZSODQWIRRGVZKLFKKDYHEHHQ
FRQWDPLQDWHG E\ GDQJHURXV DQG HYHQ GHDGO\ PLFURRUJDQLVPV LQFOXGLQJ
MDODSHxR DQG VHUUDQR SHSSHUV DOIDOID VSURXWV DQG RWKHU VSURXWHG VHHGV
JUHHQ RQLRQV VSLQDFK OHWWXFH RUDQJH MXLFH DSSOH MXLFH DQG RWKHU
XQSDVWHXUL]HGIUXLWMXLFHVLQ6HFWKHILQLWHQXPEHURIQDWLRQVWDWHV
ZKLFK KDYH VXIIHUHG IURP RYHUSRSXODWLRQ LQ KLVWRU\ LQ 6HF WKH
ILQLWHQXPEHURIWKHFDWHJRULHVRIWKHPRGHVRISURGXFWLRQLQWKHDUWLFOH
DIRUHFLWHGLQ6HFWKHILQLWHQXPEHURIWKHFDWHJRULHVRIPHDWWREH
EDQQHG XQGHU YHJHWDULDQLVP LQ 6HF WKH ILQLWH QXPEHU RI WKH
FDWHJRULHV RI LQJUHGLHQWV XVHG LQ &DOLIRUQLD FXLVLQH OLNH IUHVK ORFDO
DQG VHDVRQDO LQJUHGLHQWV DW :DWHUV
V &KH] 3DQLVVH LQ 6HF WKH
ILQLWH QXPEHU RI WKH SULQFLSOHV RI IRRG K\JLHQH DV VKRZQ E\ WKH
SULQFLSOHV DFFRUGLQJ WR :+2 WR ILJKW EDFWHULD LQ IRRG LQ 6HF WKH
ILQLWHQXPEHURIWKHFDWHJRULHVRIEDFWHULDIRXQGLQIRRGOLNHSDWKRJHQLF
VWUDLQVRI(VFKHULFKLDFROL6DOPRQHOODW\SKLPXULXPDQG&DPS\OREDFWHU
YLUXVHV VXFK DV QRURYLUXVHV DQG SURWR]RD VXFK DV (QWDPRHED
KLVWRO\WLFD LQ 6HF WKH ILQLWH QXPEHU RI WKH FDWHJRULHV RI IODYRUV
WKDWKXPDQVFDQHIIHFWLYHO\VPHOOLQ6HFWKHILQLWHQXPEHURIWKH
PHWKRGV RI DQLPDO VODXJKWHU DV VKRZQ E\ WKH PHWKRGV DSSURYHG E\
86'$ LQ 6HF WKH ILQLWH QXPEHU RI WKH LQYHQWLRQV LQ IRRG
WHFKQRORJ\ DV VKRZQ LQ WKH H[DPSOHV LQ WKH DUWLFOH DIRUHFLWHG LQ 6HF
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
WKHILQLWHQXPEHURIWKHFDWHJRULHVRIIDVWIRRGLQKLVWRU\EHWKH\
DERXW WKRVH LQ DQWLTXLW\ RU LQ PRGHUQ WLPHV LQ 6HF WKH ILQLWH
QXPEHURIWKHFDWHJRULHVRIGLIIHUHQWIRRGVIRUIRRGSKRWRJUDSK\OLNHFROG
EHYHUDJHVVDQGZLFKHVDQGVDODGVLQ6HFDQGWKHILQLWHQXPEHURI
WKHFDWHJRULHVRILQJUHGLHQWVXVHGLQ&KLQHVHFXLVLQHLQ6HF
2QWKHRWKHUKDQGWKHUHLVWUDQVILQLWW\HJWKHWUDQVILQLWHQXPEHURI
DOOWKHLQGLYLGXDOSLHFHVRIDSKURGLVLDFVLQKLVWRU\WKDWKDYHHYHUEHHQXVHG
E\KXPDQVLQ6HFWKHWUDQVILQLWHQXPEHURIDOOWKHLQGLYLGXDOSLHFHV
RIIRRGLWHPVLQKLVWRU\WKDWKDYHHYHUEHHQFRQVXPHGUHJDUGOHVVRIKRZ
WKH\ DUH WR EH FODVVLILHG LQ WKH $PHULFDQ YHUVLRQ LQ 6HF WKH
WUDQVILQLWHQXPEHURIDOOWKHLQGLYLGXDORUJDQLVPVLQKLVWRU\WKDWKDYHHYHU
H[LVWHGLQDOOWKHIRRGFKDLQOHQJWKVLQ6HFWKHWUDQVILQLWHQXPEHU
RI DOO WKH LQGLYLGXDO SLHFHV RI UDZ SODQW IRRGV LQ KLVWRU\ WKDW KDYH HYHU
H[LVWHG OLNH MDODSHxR DQG VHUUDQR SHSSHUV DOIDOID VSURXWV DQG RWKHU
VSURXWHG VHHGV JUHHQ RQLRQV VSLQDFK OHWWXFH RUDQJH MXLFH DSSOH MXLFH
DQGRWKHUXQSDVWHXUL]HGIUXLWMXLFHVLQ6HFWKHWUDQVILQLWHQXPEHU
RI DOO WKH LQGLYLGXDOV DQG DQLPDOV LQ KLVWRU\ WKDW KDYH VXIIHUHG IURP
RYHUSRSXODWLRQ LQ 6HF WKH WUDQVILQLWH QXPEHU RI DOO WKH SRVVLEOH
LQGLYLGXDOV LQ KLVWRU\ ZKR KDYH HYHU HQJDJHG LQ DQ\ RI WKH PRGHV RI
SURGXFWLRQLQ6HFWKHWUDQVILQLWHQXPEHURIDOOWKHLQGLYLGXDOSLHFHV
RI PHDW LQ KLVWRU\ WKDW KDYH HYHU H[LVWHG LQ 6HF WKH WUDQVILQLWH
QXPEHU RI DOO WKH LQGLYLGXDO SLHFHV RI IUHVK ORFDO DQG VHDVRQDO
LQJUHGLHQWVLQKLVWRU\WKDWKDYHHYHUH[LVWHGDQGRUXVHGLQ6HFWKH
WUDQVILQLWHQXPEHURIDOOWKHSRVVLEOHLQGLYLGXDOEDFWHULDLQKLVWRU\ZKLFK
KDYH HYHU H[LVWHG LQ IRRG LQ 6HF WKH WUDQVILQLWH QXPEHU RI DOO WKH
LQGLYLGXDO EDFWHULD HYHU IRXQG LQ WKH KLVWRU\ RI IRRG OLNH SDWKRJHQLF
VWUDLQV RI (VFKHULFKLD FROL 6DOPRQHOOD W\SKLPXULXP DQG &DPS\OREDFWHU
YLUXVHVVXFKDVQRURYLUXVHVDQGSURWR]RDVXFKDV(QWDPRHEDKLVWRO\WLFD
HWF LQ 6HF WKH WUDQVILQLWH QXPEHU RI DOO WKH LQGLYLGXDO DURPD
FRPSRXQGVLQDQ\FRQFHQWUDWLRQVRIDQ\IODYRUVLQKLVWRU\WKDWKDYHHYHU
H[LVWHG LQ 6HF WKH WUDQVILQLWH QXPEHU RI DOO WKH LQGLYLGXDO VKHHS
VZLQHJRDWVFDOYHVFDWWOHKRUVHV PXOHVDQG VRRQLQ KLVWRU\WKDW KDYH
HYHUEHHQNLOOHGUHJDUGOHVVRIWKHPHWKRGVKDYLQJEHHQXVHGLQ6HF
WKH WUDQVILQLWH QXPEHU RI DOO WKH LQGLYLGXDO LWHPV RI IRRG LQ KLVWRU\ WKDW
KDYH HYHU EHHQ SUHVHUYHG LQ 6HF WKH WUDQVILQLWH QXPEHU RI DOO WKH
LQGLYLGXDOLWHPVRIIDVWIRRGLQKLVWRU\WKDWKDYHHYHUEHHQVHUYHGLQ6HF
WKHWUDQVILQLWHQXPEHURIDOOWKHLQGLYGXDOLWHPVRIFROGEHYHUDJHV
VDQGZLFKHV DQG VDODGV LQ KLVWRU\ WKDW KDYH HYHU EHHQ SURGXFHG LQ 6HF
DQGWKHWUDQVILQLWHQXPEHURIDOOWKHLQGLYLGXDOSLHFHVRILQJUHGLHQWV
LQ&KLHQVHFRRNLQJKLVWRU\WKDWKDVHYHUEHHQXVHGLQWKHODVWPLOOHQQLDLQ
6HF
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
2QFH PRUH LW VKRXOG EH VWUHVVHG KRZHYHU WKDW WKHUH DUH GLIIHUHQW
VKDGHVRIJUD\RUGLIIHUHQWGHJUHHVRIWUXWKLQWKHWZRRSSRVLWHVDQGWKH
FODVVLILFDWLRQ LV QRW QHFHVVDULO\ PXWXDOO\ H[FOXVLYH HLWKHU ,Q IDFW HYHQ
ZKHQVRPHFRPELQDWLRQVRIWKHWZRRFFXUWKH\RQO\HQG XSVKDULQJWKH
VDPHGLDOHFWLFUHODWLRQVKLSEXWLQDGLIIHUHQWGHJUHH
$OVR WKHUH DUH VRPH RWKHU UHODWLRQVKLSV DV D NLQG RI IDPLO\
UHVHPEODQFH ZKLFK KDYH VRPHWKLQJ LQ FRPPRQ ZLWK WKH SULQFLSOH EXW
WKH\ DUH QRW H[DFWO\ WKH VDPH EXW RQO\ PRUH RU OHVV FRPSDUDEOH ZKLFK
YDULHVIURPFDVHWRFDVH
*RRGH[DPSOHVRIIDPLO\UHVHPEODQFHLQUHODWLRQWRWKHSULQFLSOHDUH
ERXQGHGQHVVTXDVLXQERXQGHGQHVV VPDOOQHVVODUJHQHVV PLFURQHVV
PDFURQHVVERXQGHGQHVVXQERXQGHGQHVVDQGWKHOLNH
WK7KHVLV7KH3UHFLVHQHVV9DJXHQHVV3ULQFLSOH
7KHHLJKWKWKHVLVLVFDOOHGWKHSUHFLVHQHVVYDJXHQHVVSULQFLSOHRQWKH
UHILQHPHQWRIWKLQJVLQWKHFDWHJRU\RIVWUXFWXUHLQH[LVWHQWLDOGLDOHFWLFV
ZKLFK ZDV ILUVW RXW ZRUNHG RXW LQ ),$ LQ WKDW ERWK SUHFLVHQHVV DQG
YDJXHQHVVDUHLPSRUWDQWQRWWKDWRQHLVEHWWHUWKDQWKHRWKHUEXWWKDWERWK
DUH XVHG LQ GLIIHUHQW GHJUHHV RI SUHIHUHQFH LQ DFFRUGDQFH WR WKH
FRQWH[WXDO DSSOLFDWLRQ IURP WKH SHUVSHFWLYHV RI QDWXUH WKH PLQG FXOWXUH
DQGVRFLHW\7KHUHLVQRSUHFLVHQHVVZLWKRXWYDJXHQHVVDQGYLFHYHUVD
)RU LQVWDQFH RQ WKH RQH KDQG WKHUH LV SUHFLVHQHVV HJ WKH SUHFLVH
LGHQWLILFDWLRQRINLQGVRIV\QWKHWLFDSKURGLVLDFVLQWKHDUWLFOHDIRUHFLWHG
LQ6HFWKHSUHFLVHLGHQWLILFDWLRQRIWKHIRRGJURXSVLQWKH'DQLVK
IRRGS\UDPLGLQ6HFWKHSUHFLVHLGHQWLILFDWLRQRIPDLQDGYDQWDJHV
LQWKHXVHRIWKHS\UDPLGRISURGXFWLYLW\LQWKHDUWLFOHDIRUHFLWHGLQ6HF
WKH SUHFLVH LGHQWLILFDWLRQ RI WKUHH YHUVLRQV RI UDZ IRRGLVP LQ WKH
DUWLFOH DIRUHFLWHG LQ 6HF WKH SUHFLVH LGHQWLILFDWLRQ RI PDMRU
IDFWRUV WR DFFRXQW IRU WKH GHFOLQH RI 0DOWKXVLDQLVP LQ WKH WK FHQWXU\
WKDW LV WHFKQRORJLFDO LQFUHDVHV WKH RSHQLQJ RI QHZ WHUULWRU\ WR
DJULFXOWXUHDQGLQFUHDVLQJLQWHUQDWLRQDOWUDGHLQWKHDUWLFOHDIRUHFLWHGLQ
6HF WKH SUHFLVH LGHQWLILFDWLRQ RI WKH PRGHV RI SURGXFWLRQ LQ WKH
DUWLFOH DIRUHFLWHG LQ 6HF WKH SUHFLVH LGHQWLILFDWLRQ RI DUJXPHQWV
DJDLQVW HDWLQJ PHDW LQ WKH DUWLFOH DIRUHFLWHG LQ 6HF WKH SUHFLVH
LGHQWLILFDWLRQRI PDMRUOHDGHUVLQWKH&XOLQDU\5HYROXWLRQLQWKHDUWLFOH
DIRUHFLWHG WKDW LV :DWHUV DQG 7RZHUV LQ 6HF WKH SUHFLVH
LGHQWLILFDWLRQRIEDVLFJXLGHOLQHVLQ$XVWUDOLDQIRRGVDIHW\WUDLQLQJLQWKH
DUWLFOHDIRUHFLWHGLQ6HFWKHSUHFLVHLGHQWLILFDWLRQRIPDMRULVVXHV
ZKLFKDUHKRWO\GHEDWHGLQFXOLQDU\DUWDVFLWHGLQWKHDUWLFOHLQ6HF
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
DSSURYHG E\ 86'$ VLQFH LW LV QRW FOHDU ZK\ WKHUH PXVW EH RQO\
PHWKRGV QRW DQG VR RQ LQ 6HF WKH YDJXHQHVV LQ WKH
LGHQWLILFDWLRQ RI WKH PDMRU GHYHORSPHQWV LQ IRRG WHFKQRORJ\ LQ WKH
DUWLFOHDIRUHFLWHVLQFHLWLVQRWFOHDUZK\WKHUHPXVWEHRQO\QRW
DQGVRRQLQ6HFWKHYDJXHQHVVLQWKHLGHQWLILFDWLRQRIWKHPDMRU
YDULDQWV RI IDVW IRRG LQ WKH 86 LQ WKH DUWLFOH DIRUHFLWHG VLQFH LW LV QRW
FOHDU ZK\ WKHUH PXVW EH RQO\ QRW DQG VR RQ LQ 6HF
WKHYDJXHQHVVLQWKHLGHQWLILFDWLRQRIWKHIRRGVW\OHWHFKQLTXHVIRU
DGYHUWLVLQJLQWKHDUWLFOHDIRUHFLWHGVLQFHLWLVQRWFOHDUZK\WKHUHPXVWEH
RQO\QRWDQGVRRQLQ6HFDQGWKHYDJXHQHVVLQWKH
LGHQWLILFDWLRQ RI WKH PDLQ YHUVLRQV RI IXVLRQ FXLVLQH LQ WKH DUWLFOH
DIRUHFLWHG VLQFH LW LV QRW FOHDU ZK\ WKHUH PXVW EH RQO\ QRW
DQGVRRQLQ6HF
$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
2QFH PRUH LW VKRXOG EH VWUHVVHG KRZHYHU WKDW WKHUH DUH GLIIHUHQW
VKDGHVRIJUD\RUGLIIHUHQWGHJUHHVRIWUXWKLQWKHWZRRSSRVLWHVDQGWKH
FODVVLILFDWLRQ LV QRW QHFHVVDULO\ PXWXDOO\ H[FOXVLYH HLWKHU ,Q IDFW HYHQ
ZKHQVRPHFRPELQDWLRQVRIWKHWZRRFFXUWKH\RQO\HQG XSVKDULQJWKH
VDPHGLDOHFWLFUHODWLRQVKLSEXWLQDGLIIHUHQWGHJUHH
$OVR WKHUH DUH VRPH RWKHU UHODWLRQVKLSV DV D NLQG RI IDPLO\
UHVHPEODQFH ZKLFK KDYH VRPHWKLQJ LQ FRPPRQ ZLWK WKH SULQFLSOH EXW
WKH\ DUH QRW H[DFWO\ WKH VDPH EXW RQO\ PRUH RU OHVV FRPSDUDEOH ZKLFK
YDULHVIURPFDVHWRFDVH
*RRGH[DPSOHVRIIDPLO\UHVHPEODQFHLQUHODWLRQWRWKHSULQFLSOHDUH
FODULW\DPELJXLW\GLUHFWQHVVLQGLUHFWQHVVTXDQWLWDWLYHQHVVTXDOLWDWLYHQHVV
VSHFLILFLW\REVFXULW\ WKLFNQHVVWKLQQHVV GHVFULEDELOLW\QRQGHVFULEDELOLW\
FRQFUHWQHVVDEVWUDFWQHVV WUDQVODWDELOLW\XQWUDQVODWDELOLW\ VSHFLILFLW\
JHQHUDOLW\FOHDUFXWQHVVWUDQVLWLRQDOQHVVDQGWKHOLNH
WK7KHVLV7KH6LPSOHQHVV&RPSOLFDWHGQHVV3ULQFLSOH
7KH QLQWK WKHVLV UHIHUV WR WKH VLPSOHQHVVFRPSOLFDWHGQHVV SULQFLSOH
RQ WKH LQWHUFRQQHFWLRQ DPRQJ WKLQJV LQ WKH FDWHJRU\ RI VWUXFWXUH LQ
H[LVWHQWLDO GLDOHFWLFV ZKLFK ZDV ILUVW RXW ZRUNHG RXW LQ ),$ LQ WKDW
ERWKVLPSOHQHVVDQGFRPSOLFDWHGQHVVDUHYLWDOZLWKRXWIDYRULQJRQHRYHU
WKHRWKHUDQGHDFKLVXWLOL]HGGHSHQGLQJRQWKHEDVLVRIWKHSHUVSHFWLYHV
RI QDWXUH WKH PLQG FXOWXUH DQG VRFLHW\ 7KHUH LV QR VLPSOHQHVV ZLWKRXW
FRPSOLFDWHGQHVVDQGYLFHYHUVD
)RULQVWDQFHRQWKHRQHKDQGWKHUHLVVLPSOHQHVVHJWKHUHODWLYHO\
VLPSOH DQDO\VLV RI WKH DSSHDO RI DSKURGLVLDFV E\ LWV DGYRFDWHV LQ 6HF
WKH UHODWLYHO\ VLPSOH DQDO\VLV RI WKH IRRG JXLGH S\SUDPLGV E\ WKH
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
DGYRFDWHVLQ6HFWKHUHODWLYHO\VLPSOHDQDO\VLVRIIRRGFKDLQVDQG
HFRORJLFDO S\UDPLG E\ WKH DGYRFDWHV LQ 6HF WKH UHODWLYHO\ VLPSOH
DQDO\VLV RI UDZ IRRGLVP E\ WKH DGYRFDWHV LQ 6HF WKH UHODWLYHO\
VLPSOHDQDO\VLVRIIRRGLQVHFXULW\DQGRYHUSRSOXDWLRQE\WKHDGYRFDWHVRI
0DOWKXVLDQLVP LQ 6HF WKH UHODWLYHO\ VLPSOH DQDO\VLV RI FDVK
FURSSLQJE\WKHDGYRFDWHVLQ6HFWKHUHODWLYHO\VLPSOHDQDO\VLVRI
WKH HWKLFV RI HDWLQJ PHDW E\ WKH DGYRFDWHV LQ 6HF WKH UHODWLYHO\
VLPSOH DQDO\VLV RI &DOLIRUQLD FXLVLQH E\ WKH DGYRFDWHV LQ 6HF WKH
UHODWLYHO\ VLPSOH DQDO\VLV RI IRRG VDIHW\ E\ WKH DGYRFDWHV LQ 6HF
WKH UHODWLYHO\ VLPSOH DQDO\VLV RI FRRNLQJ DQG KHDOWK E\ WKH DGYRFDWHV LQ
6HFWKHUHODWLYHO\VLPSOHDQDO\VLVRIIRRGSDLULQJE\WKHDGYRFDWHV
LQ6HFWKHUHODWLYHO\VLPSOHDQDO\VLVRIWKHWDFWLFVRI6HD6KHSKHUG
E\WKHDGYRFDWHVLQ6HFWKHUHODWLYHO\VLPSOHDQDO\VLVRIFDQQLQJE\
WKHDGYRFDWHVLQ6HFWKHUHODWLYHO\VLPSOHDQDO\VLVRIIDVWIRRGE\
WKH DGYRFDWHV LQ 6HF WKH UHODWLYHO\ VLPSOH DQDO\VLV RI IRRG
SKRWRSJUDK\ E\ WKH DGYRFDWHV LQ 6HF DQG WKH UHODWLYHO\ VLPSOH
DQDO\VLVRIIXVLRQFXLVLQHE\LWVDGYRFDWHVLQ6HF
2QWKHRWKHUKDQGWKHUHLVFRPSOLFDWHGQHVVHJWKHUHODWLYHO\PRUH
FRPSOLFDWHG DQDO\VLV RI DSKURGLVLFDV E\ FKDOOHQJLQJ WKH FODLPV DQG
DVVXPSWLRQVDVVKRZQLQWKHSUREOHPVSRLQWHGRXWE\WKHFULWLFVDVFLWHG
LQ 6HF WKH UHODWLYHO\ PRUH FRPSOLFDWHG DQDO\VLV RI WKH IRRG JXLGH
S\SUDPLGV E\ FKDOOHQJLQJ WKH FODLPV DQG DVVXPSWLRQV DV VKRZQ LQ WKH
SUREOHPV SRLQWHG RXW E\ WKH FULWLFV DV FLWHG LQ 6HF WKH UHODWLYHO\
PRUH FRPSOLFDWHG DQDO\VLV RI IRRG FKDLQV DQG HFRORJLFDO S\UDPLG E\
FKDOOHQJLQJWKHFODLPVDQGDVVXPSWLRQVDVVKRZQLQWKHSUREOHPVSRLQWHG
RXW E\ WKH FULWLFV DV FLWHG LQ 6HF WKH UHODWLYHO\ PRUH FRPSOLFDWHG
DQDO\VLV RI UDZ IRRGLVP E\ FKDOOHQJLQJ WKH FODLPV DQG DVVXPSWLRQV DV
VKRZQLQWKHSUREOHPVSRLQWHGRXWE\WKHFULWLFVDVFLWHGLQ6HFWKH
UHODWLYHO\PRUHFRPSOLFDWHGDQDO\VLVRI0DOWKXVLDQLVPE\FKDOOHQJLQJWKH
FODLPV DQG DVVXPSWLRQV DV VKRZQ LQ WKH SUREOHPV SRLQWHG RXW E\ WKH
FULWLFVDVFLWHGLQ 6HFWKHUHODWLYHO\ PRUHFRPSOLFDWHGDQDO\VLVRI
FDVKFURSSLQJE\FKDOOHQJLQJWKHFODLPVDQGDVVXPSWLRQVDVVKRZQLQ
WKHSUREOHPVSRLQWHGRXWE\WKHFULWLFVDVFLWHGLQ6HFWKHUHODWLYHO\
PRUHFRPSOLFDWHGDQDO\VLVRIWKHHWKLFVRIHDWLQJPHDWE\FKDOOHQJLQJWKH
FODLPV DQG DVVXPSWLRQV DV VKRZQ LQ WKH SUREOHPV SRLQWHG RXW E\ WKH
FULWLFVDVFLWHGLQ 6HFWKHUHODWLYHO\ PRUHFRPSOLFDWHGDQDO\VLVRI
&DOLIRUQLDFXLVLQHE\FKDOOHQJLQJWKHFODLPVDQGDVVXPSWLRQVDVVKRZQLQ
WKHSUREOHPVSRLQWHGRXWE\WKHFULWLFVDVFLWHGLQ6HFWKHUHODWLYHO\
PRUH FRPSOLFDWHG DQDO\VLV RI IRRG VDIHW\ E\ FKDOOHQJLQJ WKH FODLPV DQG
DVVXPSWLRQVDVVKRZQLQWKHSUREOHPVSRLQWHGRXWE\WKHFULWLFVDVFLWHG
LQ 6HF WKH UHODWLYHO\ PRUH FRPSOLFDWHG DQDO\VLV RI FRRNLQJ DQG
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
KHDOWK E\ FKDOOHQJLQJ WKH FODLPV DQG DVVXPSWLRQV DV VKRZQ LQ WKH
SUREOHPV SRLQWHG RXW E\ WKH FULWLFV DV FLWHG LQ 6HF WKH UHODWLYHO\
PRUHFRPSOLFDWHGDQDO\VLVRIIRRGSDLULQJE\FKDOOHQJLQJWKHFODLPVDQG
DVVXPSWLRQVDVVKRZQLQWKHSUREOHPVSRLQWHGRXWE\WKHFULWLFVDVFLWHG
LQ6HFWKHUHODWLYHO\PRUHFRPSOLFDWHGDQDO\VLVRIWKHWDFWLFVRI6HD
6KHSKHUG E\ FKDOOHQJLQJ WKH FODLPV DQG DVVXPSWLRQV DV VKRZQ LQ WKH
SUREOHPV SRLQWHG RXW E\ WKH FULWLFV DV FLWHG LQ 6HF WKH UHODWLYHO\
PRUH FRPSOLFDWHG DQDO\VLV RI FDQQLQJ E\ FKDOOHQJLQJ WKH FODLPV DQG
DVVXPSWLRQVDVVKRZQLQWKHSUREOHPVSRLQWHGRXWE\WKHFULWLFVDVFLWHG
LQ 6HF WKH UHODWLYHO\ PRUH FRPSOLFDWHG DQDO\VLV RI IDVW IRRG E\
FKDOOHQJLQJWKHFODLPVDQGDVVXPSWLRQVDVVKRZQLQWKHSUREOHPVSRLQWHG
RXW E\ WKH FULWLFV DV FLWHG LQ 6HF WKH UHODWLYHO\ PRUH FRPSOLFDWHG
DQDO\VLVRIIRRGSKRWRJUDSK\E\FKDOOHQJLQJWKHFODLPVDQGDVVXPSWLRQV
DVVKRZQLQWKHSUREOHPVSRLQWHGRXWE\WKHFULWLFVDVFLWHGLQ6HF
DQG WKH UHODWLYHO\ PRUH FRPSOLFDWHG DQDO\VLV RI IXVLRQ FXLVLQH E\
FKDOOHQJLQJWKHFODLPVDQGDVVXPSWLRQVDVVKRZQLQWKHSUREOHPVSRLQWHG
RXWE\WKHFULWLFVDVFLWHGLQ6HF
$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
$JDLQLWVKRXOGEHVWUHVVHG KRZHYHUWKDWWKHUHDUHGLIIHUHQWVKDGHV
RI JUD\ RU GLIIHUHQW GHJUHHV RI WUXWK LQ WKH WZR RSSRVLWHV DQG WKH
FODVVLILFDWLRQ LV QRW QHFHVVDULO\ PXWXDOO\ H[FOXVLYH HLWKHU ,Q IDFW HYHQ
ZKHQVRPHFRPELQDWLRQVRIWKHWZRRFFXUWKH\RQO\HQG XSVKDULQJWKH
VDPHGLDOHFWLFUHODWLRQVKLSEXWLQDGLIIHUHQWGHJUHH
$OVR WKHUH DUH VRPH RWKHU UHODWLRQVKLSV DV D NLQG RI IDPLO\
UHVHPEODQFH ZKLFK KDYH VRPHWKLQJ LQ FRPPRQ ZLWK WKH SULQFLSOH EXW
WKH\ DUH QRW H[DFWO\ WKH VDPH EXW RQO\ PRUH RU OHVV FRPSDUDEOH ZKLFK
YDULHVIURPFDVHWRFDVH
*RRGH[DPSOHVRIIDPLO\UHVHPEODQFHLQUHODWLRQWRWKHSULQFLSOHDUH
LQIOH[LELOLW\IOH[LELOLW\ VWDQGDUGL]DWLRQVSHFLDOL]DWLRQ LPSHUIHFWQHVV
SHUIHFWQHVV VXSHUILFLDOLW\GHSWK VKDOORZQHVVGHHSQHVV HFRQRPLFDOQHVV
HODERUDWHGQHVV SODLQQHVVFLUFXPVSHFWLRQ RQHVLGHGQHVVPXOWLVLGHGQHVV
VXFFLQFWQHVVGXSOLFDWHGQHVVDQGWKHOLNH
WK7KHVLV7KH2SHQQHVV+LGGHQQHVV3ULQFLSOH
7KH WHQWK WKHVLV UHIHUV WR WKH RSHQQHVVKLGGHQHQVV SULQFLSOH RQ WKH
GHWHFWLRQRIWKLQJVLQWKHFDWHJRU\RI VWUXFWXUHLQH[LVWHQWLDOGLDOHFWLFV
ZKLFK ZDV DOUHDG\ ZRUNHG RXW LQ P\ SUHYLRXV ERRNV HVSHFLDOO\ LQ
)3+8LQWKDWUHDOLW\KDVLWVKLGGHQIDFHMXVWDVLWLVRSHQWRRXWVLGHYLHZ
LQ VRPHRWKHU ZD\V7KHUHLVQRRSHQQHVV ZLWKRXW KLGGHQQHVVDQGYLFH
YHUVD
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
)RU LQVWDQFH RQ WKH RQH KDQG WKHUH LV RSHQQHVV HJ WKH RSHQ
H[SORUDWLRQRIWKHLPSDFWRIDSKURGLVLDFVRQVH[XDOLW\E\LWVDGYRFDWHVLQ
6HFWKHRSHQH[SORUDWLRQRIGLIIHUHQWIRRGJURXSVLQWKH$PHULFDQ
IRRGJXLGHS\UDPLGLQ6HFWKHRSHQH[SORUDWLRQRIWKHUHODWLRQVKLS
EHWZHHQ ELRPDVV DQG WURSKLF OHYHO LQ WKH VWXG\ RI IRRG FKDLQV DQG
HFRORJLFDOS\UDPLGLQ6HFWKHRSHQH[SORUDWLRQRIWKHUHODWLRQVKLS
EHWZHHQUDZIRRGDQGGLJHVWLYHHQ]\PHVLQUDZIRRGLVPLQ6HF
WKH RSHQ H[SORUDWLRQ RI 0DOWKXVLDQLVP LQ UHJDUG WR FKDULW\ WR WKH SRRU
W\SLILHG E\ 7RU\ SDWHUQDOLVP DQG WKH VXEVHTXHQW LQFUHDVHG QXPEHUV RI
WKHSRRULQ 6HFWKHRSHQH[SORUDWLRQRIWKHUHODWLRQVKLSEHWZHHQ
JOREDOL]DWLRQDQGKLJKHULQFRPHIRUQXWULWLRQLQWKHVWXG\RQJOREDOL]DWLRQ
DQG QXWULWLRQ LQ 6HF WKH RSHQ H[SORUDWLRQ RI WKH UHODWLRQVKLS
EHWZHHQ QRQYLROHQFH LQ +LQGXLVP DQG WKH SUHIHUHQFH IRU YHJHWDULDQLVP
LQ 6HF WKH RSHQ H[SORUDWLRQ RI WKH SULPDU\ UROH RI :DWHUV LQ WKH
&XOLQDU\ 5HYROXWLRQLQ6HFWKHRSHQH[SORUDWLRQRIWKHYLRODWLRQV
RIIRRGVDIHW\E\86'$DJDLQVWWKHIRRGLQGXVWU\LQ6HFWKHRSHQ
H[SORUDWLRQRIWKHUHODWLRQVKLSEHWZHHQFRRNLQJ ZLWKKHDWDQGWKHNLOOLQJ
RI EDFWHULD LQ 6HF WKH RSHQ H[SORUDWLRQ RI KRZ RXU VHQVHV SOD\
WKHLU RZQ UROHV LQ RXU DSSUHFLDWLRQ RI IRRG LQ 6HF WKH RSHQ
H[SORUDWLRQRIWKHQHHGWRVWRSVSHFLHVHQGDQJHULQJZKDOLQJDQGILVKLQJ
SUDFWLFHVE\6HD6KHSKHUGLQ6HFWKHRSHQH[SORUDWLRQRIWKHXVH
RIFDQQLQJIRUIRRGSUHVHUYDWLRQLQ6HFWKHRSHQH[SORUDWLRQRIWKH
UHODWLRQVKLSEHWZHHQLPPLJUDQWODERUDQGFKHDSODERUFRVWE\WKHPHDW
SDFNLQJLQGXVWU\LQWKH86LQ6HFWKHRSHQH[SORUDWLRQRIXVLQJ
IRRG SKRWRJUDSK\ IRU DGYHUWLVHPHQW LQ 6HF DQG WKH RSHQ
H[SORUDWLRQ RI WKH PL[WXUH RI GLIIHUHQW FXLVLQHV WR IRUP D QHZ IRUP RI
FXLVLQHNQRZQDVIXVLRQFXLVLQHLQ6HF
2Q WKH RWKHU KDQG WKHUH LV KLGGHQQHVV HJ WKH KLGGHQ ELDV LQ WKH
FODLPRIWKHLPSDFWRIDSKURGLVLDFVRQVH[XDOLW\E\LWVDGYRFDWHVEHFDXVH
RI WKH H[LVWHQFH RI QHJDWLYH VLGH HIIHFWV DQG TXHVWLRQDEOH UHVXOWV SRLQWHG
RXWE\WKHFULWLFVLQ6HFWKHKLGGHQELDVLQWKH$PHULFDQIRRGJXLGH
S\UDPLG EHFDXVH IRU WKH FULWLFV LW LJQRUHV DOWHUQDWLYH YHUVLRQV OLNH WKH
KHDOWK\HDWLQJS\UDPLGE\WKH+DUYDUG6FKRRORI3XEOLF+HDOWKDQGWKH
KHDOLQJ IRRGV S\UDPLG E\ WKH 8QLYHUVLW\ RI 0LFKLJDQ ,QWHJUDWLYH
0HGLFLQHIRUH[DPSOHLQ6HFWKHKLGGHQELDVLQWKHVWXG\RIIRRG
FKDLQVDQGHFRORJLFDOS\UDPLGEHFDXVHIRUWKHFULWLFVWKHGHVLJQDWLRQRI
RUJDQLVPVLQDS\UDPLGRISURGXFWLYLW\FDQEHVRPHZKDWDUELWUDU\MXVWDV
LQ UHJDUG WR WKH RUJDQLVP LQ WKH IRRG FKDLQV WKHUH LV WKH SUREOHP RI
DVVLJQLQJWKHGHFRPSRVHUVDQGGHWULWLYRUHVWRDSDUWLFXODUWURSKLFOHYHOLQ
6HFWKHKLGGHQELDVLQUDZIRRGLVPVLQFHWKHFULWLFVKDGSRLQWHGRXW
WKDWHQ]\PHVDVZLWKRWKHUSURWHLQVFRQVXPHGLQWKHGLHWDUHGHQDWXUHG
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
DQG HYHQWXDOO\ O\VHG E\ WKH GLJHVWLYH SURFHVV UHQGHULQJ WKHP QRQ
IXQFWLRQDOLQ6HFWKHKLGGHQELDVLQ0DOWKXVLDQLVPVLQFHIRUWKH
FULWLFV LW
EODPHG WKH SRRU
IRU WKHLU RZQ H[SORLWDWLRQ E\ WKH FDSLWDOLVW
FODVVHV DQG FRXOG EH XVHG WR VXSSUHVV WKH SUROHWDULDW WR DQ HYHQ JUHDWHU
GHJUHH LQ 6HF WKH KLGGHQ ELDV LQ WKH VWXG\ RQ JOREDOL]DWLRQ DQG
QXWULWLRQ VLQFH PDQ\ FULWLTXHV WKH SROLFLHV RI WKH :RUOG %DQN DQG WKH
,QWHUQDWLRQDO 0RQHWDU\ )XQGLQ WKH SURPRWLRQ RI KLJK LQWHQVLW\ FDSLWDO
LQYHVWPHQW LQ GHYHORSLQJ QDWLRQV DV GLVSDULWLHV ZLWKLQ QDWLRQV DQG
JURZLQJSRYHUW\UDWHVLQ PDQ\ QDWLRQVDOVRSURYLGHFRPSHOOLQJHYLGHQFH
RIWKHLGHDWKDWWKHUHZDUGVRIHFRQRPLFJOREDOL]DWLRQDUHXQHYHQDWEHVW
LQ6HFWKHKLGGHQELDVLQ+LQGXLVPLQUHJDUGWRYHJHWDULDQLVPVLQFH
GLIIHUHQW UHOLJLRXV WUDGLWLRQV KDYH FRQIOLFWLQJ FXVWRPV LQ UHJDUG WR HDWLQJ
PHDWLQ6HFWKHKLGGHQELDVLQWKHFODLPDERXWWKHSULPDU\UROHRI
:DWHUVLQWKH&XOLQDU\5HYRXWLRQVLQFHWKHFULWLFVOLNH7RZHUFULWLFL]HG
:DWHUVIRUWDNLQJPRVWLIQRWDOOWKHSUDLVHDQGFUHGLWIRUWKHDFFODLPRI
&KH]3DQLVVHDQGIRUWDNLQJFUHGLWIRUWKHSULPDU\OHDGHUVKLSLQWKHQHZ
&DOLIRUQLD &XLVLQH
PRYHPHQW DQG WKH $PHULFDQ
&XOLQDU\ 5HYROXWLRQ
LQ 6HF WKH KLGGHQ ELDV LQ 86'$ LQ LWV UHJXODWRU\ HQIRUFHPHQWV
DJDLQVWWKHIRRGLQGXVWU\EHFDXVHDFFRUGLQJWR'U'HDQ:\DWWD86'$
YHWHULQDULDQZKRRYHUVHHVIHGHUDOVODXJKWHUKRXVHLQVSHFWRUV
8SSHUOHYHO
PDQDJHPHQWGRHVQRWDGHTXDWHO\VXSSRUWILHOGLQVSHFWRUVDQGWKHDFWLRQV
WKH\WDNHWRSURWHFWWKHIRRGVXSSO\1RWRQO\LVWKHUHODFNRIVXSSRUWEXW
WKHUH
VRXWULJKWREVWUXFWLRQUHWDOLDWLRQDQGDEXVHRISRZHU
LQ6HF
WKH KLGGHQ QDWXUH RI VRPH EDFWHULD VXFK WKDW VRPH EDFWHULD VXFK DV
&ORVWULGLXP ERWXOLQXP RU %DFLOOXV FHUHXV FDQ KLGH LQ VSRUHV WKDW WKH\
IRUPDQGWKDWVXUYLYHFRRNLQJZKLFKWKHQJHUPLQDWHDQGUHJURZDIWHUWKH
IRRGKDVFRROHGLQ6HFWKHKLGGHQELDVLQRXUDSSUHFLDWLRQRIIRRG
VLQFH WKH\ DUH DOVR DIIHFWHG E\ RWKHU LQIOXHQFHV RXU HQYLURQPHQW RXU
PRRGKRZLWLVSUHVHQWHGZKRSUHSDUHVLWHWFLQ6HFWKHKLGGHQ
ELDV LQ WKH WDFWLFV WR VWRS VSHFLHVHQGDQJHULQJ ZKDOLQJ DQG ILVKLQJ
SUDFWLFHVE\6HD6KHSKHUGEHFDXVHLWLQGXOJHVLQVSUHDGLQJOLEHOLQJDQG
IDOVHKRRGLQ6HFWKHKLGGHQZHDNQHVVLQWKHXVHRIFDQQLQJVLQFH
IRRGVWXIIV LQVLGH FDQV FDQ EH FRQWDPLQDWHG E\ & ERWXOLQXP VSRUHV
ZKLFK SUHIHUORZ R[\JHQ HQYLURQPHQWV DQG FDQ WKHUHIRUH JURZ LQ
FDQQHG IRRGV LQ 6HF WKH KLGGHQ ELDV LQ WKH PHDW SDFNLQJ
LQGXVWU\ LQ WKH 86 DV VKRZQ LQ WKH LQYHVWLJDWLRQ E\ 6FKORVVHU ZKR
IRXQGWKDWOHYHOVRILQMXU\LQWKHPHDWSDFNLQJLQGXVWU\LQWKH86ZLWK
LWVXVHRILPPLJUDQWODERUDUHDPRQJWKHKLJKHVWRIDQ\RFFXSDWLRQLQWKH
8QLWHG 6WDWHV LQ 6HF WKH KLGGHQ ELDV LQ IRRG SKRWRJUDSK\ IRU
DGYHUWLVHPHQW VLQFH IRU WKH FULWLFV IRRG SKRWRJUDSK\ LQ DGYHUWLVLQJ
H[DJJHUDWH>V@DWWUDFWLYHQHVVDQGVRPHWLPHVVL]HLQ6HFDQGWKH
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
KLGGHQ ELDV LQ WKH PL[WXUH RI GLIIHUHQW FXLVLQHV WR IRUP D QHZ IRUP RI
FXLVLQHNQRZQDVIXVLRQFXLVLQHVLQFHIRUWKHFULWLFVWKHUHDUHOLPLWLQJ
IDFWRUVDJDLQVWLWVVXFFHVVLQ6HF
$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
$JDLQLWVKRXOGEHVWUHVVHG KRZHYHUWKDWWKHUHDUHGLIIHUHQWVKDGHV
RI JUD\ RU GLIIHUHQW GHJUHHV RI WUXWK LQ WKH WZR RSSRVLWHV DQG WKH
FODVVLILFDWLRQ LV QRW QHFHVVDULO\ PXWXDOO\ H[FOXVLYH HLWKHU ,Q IDFW HYHQ
ZKHQVRPHFRPELQDWLRQVRIWKHWZRRFFXUWKH\RQO\HQG XSVKDULQJWKH
VDPHGLDOHFWLFUHODWLRQVKLSEXWLQDGLIIHUHQWGHJUHH
$OVR WKHUH DUH VRPH RWKHU UHODWLRQVKLSV DV D NLQG RI IDPLO\
UHVHPEODQFH ZKLFK KDYH VRPHWKLQJ LQ FRPPRQ ZLWK WKH SULQFLSOH EXW
WKH\ DUH QRW H[DFWO\ WKH VDPH EXW RQO\ PRUH RU OHVV FRPSDUDEOH ZKLFK
YDULHVIURPFDVHWRFDVH
*RRGH[DPSOHVRIIDPLO\UHVHPEODQFHLQUHODWLRQWRWKHSULQFLSOHDUH
RYHUWQHVVFRYHUWQHVV SDUWLFLSDWLRQREVWUXFWLRQ SXEOLFQHVVSULYDWHQHVV
RSHQQHVVFORVHGQHVV VXUIDFHGHSWK WUDQVSDUHQF\VHFUHF\ RSHQQHVV
ELDVHGQHVVH[SRVLWLRQLOOXVLRQDQGVRRQ
WK7KHVLV7KH'HQVHQHVV(PSWLQHVV3ULQFLSOH
7KH HOHYHQWK WKHVLV FRQFHUQV WKH GHQVHQHVVHPSWLQHVV SULQFLSOH RQ
WKH GLVWULEXWLRQ RI HQWLWLHV LQ VSDFH LQ WKH FDWHJRU\ RI VWUXFWXUH LQ
H[LVWHQWLDO GLDOHFWLFV ZKLFK LV ILUVW SURSRVHG LQ )3+83 LQ WKDW ERWK
GHQVLW\ DQG YRLG DUH QHHGHGLQ UHODWLRQ WR WKH PLQG QDWXUH FXOWXUH DQG
VRFLHW\ DOEHLW LQ GLIIHUHQW ZD\V 7KHUH LV QR GHQVHQHVV ZLWKRXW
HPSWLQHVVDQGYLFHYHUVD
/HVWDQ\PLVXQGHUVWDQGLQJRFFXUVWKHWHUPYRLGLVXVHGKHUHRQO\
DVDQDSSUR[LPDWLRQRIHPSWLQHVVGHSHQGLQJRQWKHGHJUHHRIWKHODFNRI
GHQVLW\ VLQFH LQ SK\VLFV LW LV ZHOO NQRZQ WKDW HPSW\ VSDFH LV QRW
UHDOO\ HPSW\ DOO WKH ZD\ EHFDXVH LW FDQ EH IXOO RI HQHUJ\ HJ UDQGRP
TXDQWXP IOXFWXDWLRQV DW WKH VXEDWRPLF OHYHO DQG IRU WKDW PDWWHU GDUN
HQHUJ\LQ WKHXQLYHUVHDQG PDWWHUHJGLIIHUHQW YHUVLRQVRIVXEDWRPLF
SDUWLFOHV DQG IRU WKDW PDWWHU GDUN PDWWHU LQ WKH XQLYHUVH ) :LOF]HN
)RULQVWDQFHRQWKHRQHKDQGWKHUHLVGHQVHQHVVHJWKH UHODWLYHO\
GHQVHUFRQFHQWUDWLRQRIVH[KRUPRQHVLQPHQZKRDUH\RXQJDQGKHDOWK\
LQ 6HF WKH UHODWLYHO\ GHQVHU FRQFHQWUDWLRQ RI PLON SURGXFWV WR EH
UHFRPPHQGHG IRU FRQVXPSWLRQ LI YLHZHG IURP WKH QHZO\ FUHDWHG IRRG
S\UDPLG LQIOXHQFHG E\ PLON FRPSDQLHV ZKLFK KDYH EHHQ DFFXVHG RI
LQIOXHQFLQJ WKH 8QLWHG 6WDWHV 'HSDUWPHQW RI $JULFXOWXUH LQWR PDNLQJ WKH
FRORUHGVSRWVRQWKHQHZO\FUHDWHGIRRGS\UDPLGODUJHUIRUWKHLUSDUWLFXODU
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
SURGXFWLQ6HFWKHUHODWLYHO\GHQVHUFRQFHQWUDWLRQRIRUJDQLVPVDW
WKH ORZHVW WURSKLF >IHHGLQJ@ OHYHOV LQ IRRG FKDLQV LQ 6HF WKH
UHODWLYHO\GHQVHUFRQFHQWUDWLRQRIFHUWDLQIRRGJURXSVWREHFRQVXPHGLQ
UDZ YHJHWDULDQLVP OLNH IUXLW YHJHWDEOHV VSURXWV QXWV VHHGV JUDLQV
OHJXPHV GDLU\ HJJV DQG KRQH\ LQ 6HF WKH UHODWLYHO\ GHQVHU
FRQFHQWUDWLRQ RI WKH SRRU LI KHOSHG E\ FKDULW\ ZLWK LWV VXEVHTXHQW
LQFUHDVHGQXPEHUVRIWKHSRRUDFFRUGLQJWR0DOWKXVLQ6HFWKH
UHODWLYHO\ GHQVHU FRQFHQWUDWLRQ RI WKH SRSXODWLRQV RI KRUWLFXOWXUDOLVWV LQ
WKDW SRSXODWLRQV RI KRUWLFXOWXUDOLVWV WHQG WR KDYH JUHDWHU GHQVLW\ WKDQ
WKRVHRIIRUDJHUVLQ6HFWKHUHODWLYHO\GHQVHUFRQFHQWUDWLRQRIWKH
DPRXQWRIPHDWWREHFRQVXPHGE\PDOHVRQDYHUDJHLQDFFRUGDQFHWRD
UHFHQW UHVHDUFK LQ WKH 86 LQ 6HF WKH UHODWLYHO\ GHQVHU
FRQFHQWUDWLRQRIWKHXVHRIIUHVKLQJUHGLHQWVDW:DWHUV
V&KH]3DQLVVHLQ
6HFWKHUHODWLYHO\GHQVHUFRQFHQWUDWLRQRIFRQFHUQVZLWKIRRGVDIHW\
DPRQJWKRVHLQWKH6WDWH)RRGDQG'UXJ$GPLQLVWUDWLRQLQ&KLQDLQ6HF
WKHUHODWLYHO\GHQVHUFRQFHQWUDWLRQRIVWRPDFKFDQFHUVDPRQJWKRVH
ZKR DWH EHHI ZHOOGRQH DFFRUGLQJ WR VRPH UHVHDUFKHUV DW WKH 1DWLRQDO
&DQFHU,QVWLWXWHLQ6HFWKHUHODWLYHO\GHQVHUFRQFHQWUDWLRQRIDURPD
FRPSRXQGV LQFRIIHH LIDOORIWKHPDUHFRXQWHGHYHQLIWKH\DUHDUH QRW
SHUFHSWLEOH ZLWK WKH KXPDQ QRVH VLQFH WKLV PHDQV WKDW WKHUH DUH
GLIIHUHQWDURPDFRPSRXQGVLQFRIIHHLQ6HFWKHUHODWLYHO\GHQVHU
FRQFHQWUDWLRQ RI OLEHOLQJ DQG IDOVHKRRG XVHG E\ 6HD 6KHSKHUHG LQ 6HF
WKH UHODWLYHO\ GHQVHU FRQFHQWUDWLRQ RI IRRGVWXIIV WR EH FRQWDPLQHG
E\ & ERWXOLQXP VSRUHV LI QRW VWHULOL]HG LQ 6HF WKH UHODWLYHO\
GHQVHUFRQFHQWUDWLRQRIIDVWIRRGUHVWDXUDQWVLQWKHROGHUGD\VZKHQWKHUH
ZHUH FRXQWOHVV LQGHSHQGHQW UHVWDXUDQWV DV IRXQG E\ 6FKORVVHU LQ 6HF
WKHUHODWLYHO\GHQVHUFRQFHQWUDWLRQRIURPDQWLFOLJKWLQJVKDOORZHU
DQJOHV DQG PRUH SURSV WR EH XVHG LQ IRRG SKRWRJUDSK\ ZLWK H[WUHPH
FDVHV NQRZQ DV IRRG SRUQ LQ 6HF DQG WKH UHODWLYHO\ GHQVHU
FRQFHQWUDWLRQRIWKHXVHRIULFHLQ&KLQHVHFXLVLQHLQ6HF
2QWKHRWKHUKDQGWKHUHLVHPSWLQHVVHJWKHUHODWLYHO\OHVVGHQVHRU
PRUH HPSW\ FRQFHQWUDWLRQ RI VH[ KRUPRQHV LQ PHQ ZKR DUH RYHU DJH
ZLWKRXWDQ\UHOLDQFHRQDSKURGLVLDFVLQ6HFWKHUHODWLYHO\OHVV
GHQVHRUPRUHHPSW\FRQFHQWUDWLRQRIPLONSURGXFWVWREHFRQVXPHGIRU
WKRVHSHRSOHZKRDUHODFWRVHLQWROHUDQWDQGFKRRVHWRDEVWDLQIURPGDLU\
LQ 6HF WKH UHODWLYHO\ OHVV GHQVH RU PRUH HPSW\ FRQFHQWUDWLRQ RI
RUJDQLVPV DW WKH KLJKHVW WURSKLF >IHHGLQJ@ OHYHOV LQ IRRG FKDLQV LQ 6HF
WKHUHODWLYHO\OHVVGHQVHRUPRUHHPSW\FRQFHQWUDWLRQRIPHDWWREH
FRQVXPHGLQUDZYHJHWDULDQLVPLQ6HFWKHUHODWLYHO\OHVVGHQVHRU
PRUHHPSW\FRQFHQWUDWLRQRIWKHSRRULIJUHDWO\UHGXFHGE\
SUHYHQWLYH
FKHFNV VXFK DV PRUDO UHVWUDLQWV >DEVWLQHQFH GHOD\HG PDUULDJH XQWLO
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
$OVR WKHUH DUH VRPH RWKHU UHODWLRQVKLSV DV D NLQG RI IDPLO\
UHVHPEODQFH ZKLFK KDYH VRPHWKLQJ LQ FRPPRQ ZLWK WKH SULQFLSOH EXW
WKH\ DUH QRW H[DFWO\ WKH VDPH EXW RQO\ PRUH RU OHVV FRPSDUDEOH ZKLFK
YDULHVIURPFDVHWRFDVH
*RRGH[DPSOHVRIIDPLO\UHVHPEODQFHLQUHODWLRQWRWKHSULQFLSOHDUH
IXOOQHVVYRLGQHVV QHDUQHVVIDUQHVV FRQFHQWUDWLRQGLVSHUVLRQ GHQVHQHVV
QRWKLQJQHVV VRPHWKLQJQRWKLQJ KHDYLQHVVOLJKWQHVV FRPSRVLWLRQ
HPSWLQHVV VROLGQHVVYRLG SUHVHQFHDEVHQFH IRFXVXQIRFXV HPSKDVLV
GLVHPSKDVLVDQGWKHOLNH
,Q5HODWLRQWR3URFHVV
7KHQH[WIRXUWKHVHVDUHLQUHODWLRQWRSURFHVVLQH[LVWHQWLDOGLDOHFWLFV
DVVKRZQEHORZ
WK7KHVLV7KH&KDQJH&RQVWDQF\3ULQFLSOH
7KH WZHOIWK WKHVLV FRQFHUQV WKH FKDQJHFRQVWDQF\ SULQFLSOH RQ WKH
DOWHUDWLRQ RI WKLQJV LQ WKH FDWHJRU\ RI SURFHVV LQ H[LVWHQWLDO GLDOHFWLFV
ZKLFK LV ILUVW QDPHG LQ %&3& DQG ZHUH ZRUNHG RXW LQ P\ ERRNV OLNH
)+& )&' DQG )3+& LQ WKDW FKDQJH RFFXUV RYHU WLPH DOWKRXJK
FRQVWDQF\LVDOVRDOORZHG
2OGSOD\HUVIDGHDZD\DQGQHZRQHVHPHUJHVZLWKHYHUQHZFDXVHV
DQGHYHUQHZIRUPVDQGDV\PPHWU\XQGHUJRHVFKDQJHVRYHUWLPHWRRVR
GRHVV\PPHWU\7KHUHLVQRFKDQJHZLWKRXWFRQVWDQF\DQGYLFHYHUVD
)RULQVWDQFHRQWKHRQHKDQGWKHUHLVFKDQJHHJWKHHYHUQHZZD\V
WR LQFUHDVH VH[XDO SOHDVXUH DV VKRZQ LQ WKH XVH RI DSKURGLVLDFV LQ 6HF
WKH HYHU QHZ ZD\V WR XQGHUVWDQG IRRG JURXSV WR EH FRQVXPHG IRU
QXWULWLRQDVVKRZQLQWKHGLIIHUHQWYHUVLRQVRIWKHIRRGJXLGHS\UDPLGDQG
WKHLU DOWHUQDWLYHV LQ 6HF WKH HYHU QHZ ZD\V WR VWXG\ WKH
UHODWLRQVKLSVDPRQJGLIIHUHQWRUJDQLVPVLQ QDWXUHDVVKRZQLQ WKHVWXG\
RIIRRGFKDLQVDQGHFRORJLFDOS\UDPLGLQ6HFWKHHYHUQHZZD\VWR
VWXG\ WKH LQFOXVLRQ RI FHUWDLQ IRRG JURXSV IRU FRQVXPSWLRQ DV VKRZQ LQ
WKH GLIIHUHQW VWXGLHV RI UDZ IRRGLVP LQ 6HF WKH HYHU QHZ ZD\V WR
VWXG\WKHFDXVHVRIIDPLQHDVVKRZQLQ0DOWKXVLDQLVPLQ6HFWKH
HYHUQHZZD\VWRSURGXFHDVVKRZQLQWKHPRGHVRISURGXFWLRQVDIRUH
GLVFXVVHGLQ6HFWKHHYHUQHZZD\VWRVWXG\GLHWDQGQXWULWLRQDV
VKRZQLQWKHVWXG\RIGLHWDQGWKHHWKLFVRIHDWLQJPHDWLQ6HFWKH
HYHUQHZZD\VWRXQGHUVWDQGIRRGFRQVXPSWLRQDVVKRZQLQWKH&XOLQDU\
5HYROXWLRQ IRU &DOLIRUQLD FXLVLQH LQ 6HF WKH HYHU QHZ ZD\V WR
SUHYHQWIRRGSRLVRQLQJDVVKRZQLQWKHGLIIHUHQWUHJXODWRU\HQIRUFHPHQWV
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
LQGLIIHUHQWFRXQWULHVDIRUHFLWHGLQ6HFWKHHYHUQHZZD\VWRVWXG\
KXPDQKHDOWKDVVKRZQLQWKHVWXG\RQFRRNLQJDQGKHDOWKLQ6HF
WKH HYHU QHZ ZD\V WR VWXG\ IRRG LQ D V\VWHPDWLF ZD\ DV VKRZQ LQ WKH
VWXG\ RI PROHFXODU JDVWURQRP\ DQG IRRG SDLULQJ LQ 6HF WKH HYHU
QHZ ZD\V WR VWXG\ NLOOLQJ IRU IRRG DV VKRZQ LQ WKH VWXG\ RI DQLPDO
VODXJKWHUDQGUDGLFDOHQYLURQPHQWDOLVPLQ6HFWKHHYHUQHZ ZD\V
WRGHDOZLWKIRRGWHFKQRORJ\DVVKRZQLQWKHLQYHQWLRQRIFDQQLQJLQ6HF
WKHHYHUQHZZD\VWRSURYLGHIRRGVHUYLFHVDVVKRZQLQWKHVSUHDG
RIIDVW IRRGFXLVLQH QRZDGD\VLQ6HFWKHHYHUQHZ ZD\VWRVWXG\
IRRGVW\OHDVVKRZQLQWKHXVHRIIRRGSKRWRJUDSK\LQ6HFDQGWKH
HYHUQHZZD\VWRFRRNIRRGDVVKRZQLQWKHXVHRIIXVLRQFXLVLQHLQ6HF
2QWKHRWKHUKDQGWKHUHLVFRQVWDQF\HJWKHHYHUFRQVWDQWH[LVWHQFH
RIGLIIHUHQWSUREOHPVLQWKHHYHUQHZZD\VWRLQFUHDVHVH[XDOSOHDVXUHDV
VKRZQ LQ WKH SUREOHPV ZLWK WKH XVH RI DSKURGLVLFDV SRLQWHG RXW E\ WKH
FULWLFVLQ6HFWKHHYHUFRQVWDQWH[LVWHQFHRIGLIIHUHQWSUREOHPVLQ
WKHHYHUQHZZD\VWRXQGHUVWDQGIRRGJURXSVWREHFRQVXPHGIRUQXWULWLRQ
DV VKRZQ LQ WKH SUREOHPV ZLWK WKH GLIIHUHQW YHUVLRQV RI WKH IRRG JXLGH
S\UDPLGDQGWKHLUDOWHUQDWLYHVSRLQWHGRXWE\WKHFULWLFVLQ6HFWKH
HYHU FRQVWDQW H[LVWHQFH RI GLIIHUHQW SUREOHPV LQ WKH HYHU QHZ ZD\V WR
VWXG\ WKH UHODWLQVKLSV DPRQJ GLIIHUHQW RUJDQLVPV DV VKRZQ LQ WKH
SUREOHPVZLWKWKHVWXG\RIIRRGFKDLQVDQGHFRORJLFDOS\UDPLGSRLQWHGRXW
E\ WKH FULWLFV LQ 6HF WKH HYHU FRQVWDQW H[LVWHQFH RI GLIIHUHQW
SUREOHPV ZLWK WKH HYHU QHZ ZD\V WR VWXG\ WKH LQFOXVLRQ RI FHUWDLQ IRRG
JURXSV IRU FRQVXPSWLRQ DV VKRZQ LQ WKH SUREOHPV ZLWK WKH GLIIHUHQW
VWXGLHV RI UDZ IRRGLVP SRLQWHG RXW E\ WKH FULWLFV LQ 6HF WKH HYHU
FRQVWDQWH[LVWHQFHRIGLIIHUHQWSUREOHPVLQWKHHYHUQHZZD\VWRVWXG\WKH
FDXVHV RI IDPLQH DV VKRZQ LQ WKH SUREOHPV ZLWK 0DOWKXVLDQLVP SRLQWHG
RXW E\ WKH FULWLFV LQ 6HF WKH HYHU FRQVWDQW H[LVWHQFH RI GLIIHUHQW
SUREOHPVLQWKHHYHUQHZZD\VWRSURGXFHDVVKRZQLQWKHSUREOHPVZLWK
WKH PRGHV RI SURGXFWLRQV DIRUHGLVFXVVHG LQ 6HF WKH HYHU
FRQVWDQWH[LVWHQFHRIGLIIHUHQWSUREOHPVZLWKWKHHYHUQHZZD\VWRVWXG\
GLHWDQGQXWULWLRQDVVKRZQLQWKHSUREOHPVZLWKWKHVWXG\RIGLHWDQGWKH
HWKLFV RI HDWLQJ PHDW SRLQWHG RXW E\ WKH FULWLFV LQ 6HF WKH HYHU
FRQVWDQW H[LVWHQFH RI GLIIHUHQW SUREOHPV LQ WKH HYHU QHZ ZD\V WR
XQGHUVWDQGIRRGFRQVXPSWLRQDVVKRZQLQWKHSUREOHPVZLWKWKH&XOLQDU\
5HYROXWLRQIRU&DOLIRUQLDFXLVLQHSRLQWHGRXWE\WKHFULWLFVLQ6HF
WKHHYHUFRQVWDQWH[LVWHQFHRIGLIIHUHQWSUREOHPVLQWKHHYHUQHZZD\VWR
SUHYHQW IRRG SRLVRQLQJ DV VKRZQ LQ WKH SUREOHPV ZLWK WKH GLIIHUHQW
UHJXODWRU\HQIRUFHPHQWVLQGLIIHUHQWFRXQWULHVSRLQWHGRXWE\WKHFULWLFVLQ
6HF WKH HYHU FRQVWDQW H[LVWHQFH RI GLIIHUHQW SUREOHPV LQ WKH HYHU
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
QHZZD\VWRVWXG\KXPDQKHDOWKDVVKRZQLQWKHSUREOHPVZLWKWKHVWXG\
RQ FRRNLQJ DQG KHDOWK SRLQWHG RXW E\ WKH FULWLFV LQ 6HF WKH HYHU
FRQVWDQWH[LVWHQFHRIGLIIHUHQWSUREOHPVZLWKWKHHYHUQHZZD\VWRVWXG\
IRRG LQ D V\VWHPDWLF ZD\ DV VKRZQ LQ WKH SUREOHPV ZLWK WKH VWXG\ RI
PROHFXODUJDVWURQRP\DQGIRRGSDLULQJSRLQWHGRXWE\WKHFULWLFVLQ6HF
WKH HYHU FRQVWDQW H[LVWHQFH RI GLIIHUHQW SUREOHPV LQ WKH HYHU QHZ
ZD\VWRVWXG\NLOOLQJIRUIRRGDVVKRZQLQWKHSUREOHPVZLWKWKHVWXG\RI
DQLPDOVODXJKWHUDQGUDGLFDOHQYLURQPHQWDOLVPSRLQWHGRXWE\WKHFULWLFV
LQ6HFWKHHYHUFRQVWDQWH[LVWHQFHRIGLIIHUHQWSUREOHPVLQWKHHYHU
QHZZD\VWRGHDOZLWKIRRGWHFKQRORJ\DVVKRZQLQWKHSUREOHPVZLWKWKH
LQYHQWLRQ RI FDQQLQJ SRLQWHG RXW E\ WKH FULWLFV LQ 6HF WKH HYHU
FRQVWDQWH[LVWHQFHRIGLIIHUHQWSUREOHPVLQWKHHYHUQHZ ZD\VWRSURYLGH
IRRG VHUYLFHV DV VKRZQ LQ WKH SUREOHPV ZLWK WKH VSUHDG RI IDVW IRRG
FXLVLQHQRZDGD\VSRLQWHGRXWE\WKHFULWLFVLQ6HFWKHHYHUFRQVWDQW
H[LVWHQFH RI GLIIHUHQW SUREOHPV ZLWK WKH HYHU QHZ ZD\V WR VWXG\ IRRG
VW\OHDVVKRZQLQWKHSUREOHPVZLWKWKHXVHRIIRRGSKRWRJUDSK\SRLQWHG
RXWE\WKHFULWLFVLQ6HFDQGWKHHYHUFRQVWDQWH[LVWHQFHRIGLIIHUHQW
SUREOHPV LQ WKH HYHU QHZ ZD\V WR FRRN IRRG DV VKRZQ LQ WKH SUREOHPV
ZLWKWKHXVHRIIXVLRQFXLVLQHSRLQWHGRXWE\WKHFULWLFVLQ6HF
$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
$JDLQLWVKRXOGEHVWUHVVHG KRZHYHUWKDWWKHUHDUHGLIIHUHQWVKDGHV
RI JUD\ RU GLIIHUHQW GHJUHHV RI WUXWK LQ WKH WZR RSSRVLWHV DQG WKH
FODVVLILFDWLRQ LV QRW QHFHVVDULO\ PXWXDOO\ H[FOXVLYH HLWKHU ,Q IDFW HYHQ
ZKHQVRPHFRPELQDWLRQVRIWKHWZRRFFXUWKH\RQO\HQG XSVKDULQJWKH
VDPHGLDOHFWLFUHODWLRQVKLSEXWLQDGLIIHUHQWGHJUHH
$OVR WKHUH DUH VRPH RWKHU UHODWLRQVKLSV DV D NLQG RI IDPLO\
UHVHPEODQFH ZKLFK KDYH VRPHWKLQJ LQ FRPPRQ ZLWK WKH SULQFLSOH EXW
WKH\ DUH QRW H[DFWO\ WKH VDPH EXW RQO\ PRUH RU OHVV FRPSDUDEOH ZKLFK
YDULHVIURPFDVHWRFDVH
*RRGH[DPSOHVRIIDPLO\UHVHPEODQFHLQUHODWLRQWRWKHSULQFLSOHDUH
G\QDPLFQHVVVWDWLFQHVVLQVWDELOLW\VWDELOLW\DQGWKHOLNH
WK7KHVLV7KH2UGHU&KDRV3ULQFLSOH
7KH WKLUWHHQWK WKHVLV LV FDOOHG WKH WKH RUGHUFKDRV SULQFLSOH RQ WKH
SDWWHUQRIWKLQJVLQWKHFDWHJRU\RISURFHVVLQH[LVWHQWLDOGLDOHFWLFVDV
ILUVW ZRUNHG RXW LQ )& LQ WKDW ERWK RUGHU DQG FKDRV DUH YLWDO LQ WKH
SURFHVVRIFKDQJHLQWKHZRUOG
7KH SUHIHUHQFH IRU RUGHU LV ELDVHG VLQFH LW GRHV QRW JLYH VXIILFLHQW
DWWHQWLRQ WR WKH YLWDO UROH RI FKDRV LQ WKH WUDQVIRUPDWLRQ RI WKH ZRUOG
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
ZLWKRXWVRPHKRZUHGXFLQJLWIRUWKHXQGHUVWDQGLQJRIRUGHU7KHUHLVQR
RUGHUZLWKRXWFKDRVDQGYLFHYHUVD
7KHVFLHQWLILFVHDUFKIRURUGHULQWKHZRUOGLVRIWHQDKLGGHQELDVLQLWV
RQWRORJLFDOREVHVVLRQZLWKRUGHUVLQFHFKDRVLVRIWHQWUHDWHGDVWKHEDG
JX\ZLWKRUGHUDVWKHJRRGJX\IRUWKHHQGJRDORIVFLHQFH
1HLWKHURUGHUQRUFKDRVLVWKHILQDOHQGRIWKHZRUOGDQGRQHLVQRWWR
EHWUHDWHGDVWKHPHDQVIRUWKHRWKHULQWKHWUDQVIRUPDWLRQRIWKLQJV%RWK
DUHIXQGDPHQWDOLQWKHLUUHFXUUHQWGLDOHFWLFDO LQWHUDFWLRQV ZLWKHDFKRWKHU
RYHUWLPHZLWKRXWUHGXFLQJRQHIRUWKHRWKHU
)RU LQVWDQFH RQ WKH RQH KDQG WKHUH LV RUGHU HJ WKH PRUH RU OHVV
RUGHUO\ QDWXUH RI QDWXUDO DSKURGLVLDFV OLNH (SLPHGLXP ZKLFK KDV
VLJQLILFDQWVFLHQWLILFSURRIRIHIIHFWLQ6HFWKHPRUHRUOHVVRUGHUO\
SUHVHQWDWLRQ RI IRRG JURXSV WR EH UHFRPPHQGHG IRU FRQVXPSWLRQ LI
ORRNHG IURP WKH YDQWDJH SRLQW RI D SDUWLFXODU YHUVLRQ RI WKH IRRG JXLGH
S\UDPLGOLNHWKH6FDQGLQDYLDQRQHLQ6HFWKHPRUHRUOHVVRUGHUO\
UHDOLW\RI IRRGFKDQVDQGHFRORJLFDOS\UDPLGLIORRNHGIURPWKH YDQWDJH
SRLQW RI WKH DFDGHPLF GHVLJQDWLRQ RI RUJDQLVPV LQ D S\UDPLG RI
SURGXFWLYLW\RURIWKHGHFRPSRVHUVDQGGHWULWLYRUHVDWDSDUWLFXODUWURSKLF
OHYHOLQ6HFWKHPRUHRUOHVVRUGHUO\UHDOLW\RIWKHULJKWIRRGJURXSV
WREHFRQVXPHGLIORRNHGIURPWKHVROHYDQWDJHSRLQWRIUDZYHJDQLVPLQ
6HFWKHPRUHRUOHVVRUGHUO\DSSHDUDQFHRIZDUVLIXQGHUVWRRGIURP
WKH0DOWKXVLDQYDQWDJHSRLQWRISRVLWLYHFKHFNVDJDLQVWRYHUSRSXODWLRQ
LQ6HFWKHPRUHRUOHVVRUGHUO\DSSHDUDQFHRIWKHZRUOGLIORRNHG
IURP WKH YDQWDJH SRLQW RI KRZ VWDUWLQJ LQ WKH ODWH )LIWHHQWK FHQWXU\
(XURSHDQ SRZHUV H[SDQGHG EH\RQG WKH (XURSHDQ VXEFRQWLQHQW WR IRXQG
FRORQLHV LQ WKH $PHULFDV ZKLFK OHG WR ZHDOWK FUHDWLRQ LQ (XURSH LQ
6HF WKH PRUH RU OHVV RUGHUO\ DSSHDUDQFH RI +LQGXLVP LI ORRNHG
IURP WKH YDQWDJH SRLQW RI LWV JHQHUDO DGYRFDWLRQ RI QRQYLROHQFH WR
HPEUDFHYHJDWDULDQLVPLQ6HFWKHPRUHRUOHVVRUGHUO\DSSHDUDQFH
RI WKH ROGHU IDVWIRRG FXLVLQH SULRU WR WKH RFFXUUHQFH RI WKH &XOLQDU\
5HYROXWLRQEHFDXVHRILWVUHOLDQFHRQIUR]HQIDVWIRRGLQ6HFWKH
PRUH RU OHVV RUGHUO\ DSSHDUDQFH RI IRRG VDIHW\ LQ WKH 8QLWHG 6WDWHV LI
ORRNHG IURP WKH YDQWDJH SRLQW RI WKH )RRG DQG 'UXJ $GPLQLVWUDWLRQ
ZKLFKSXEOLVKHVWKH)RRG&RGHDPRGHOVHWRIJXLGHOLQHVDQGSURFHGXUHV
WKDW DVVLVWV IRRG FRQWURO MXULVGLFWLRQV E\ SURYLGLQJ D VFLHQWLILFDOO\ VRXQG
WHFKQLFDO DQG OHJDO EDVLV IRU UHJXODWLQJ WKH UHWDLO DQG IRRG VHUYLFH
LQGXVWULHVLQ6HFWKH PRUHRUOHVVRUGHUO\DSSHDUDQFHRIFRRNLQJ
DQGKHDOWKLIORRNHG IURPWKHYDQWDJHSRLQWRI WKHDGYRFDWHVRIFRRNLQJ
DQG KHDOWK LQ WKDW KHDWFDQ NLOO RU LQDFWLYDWH SRWHQWLDOO\ KDUPIXO
RUJDQLVPVVXFKDVEDFWHULDDQGYLUXVHVDVZHOODVYDULRXVSDUDVLWHVVXFK
DV WDSHZRUPV DQG 7R[RSODVPD JRQGLL LQ 6HF WKH PRUH RU OHVV
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
RUGHUO\ DSSHDUDQFH RI WKH VWXG\ RI IRRG QRZDGD\V VLQFHWKH FUHDWLRQ RI
WKH GLVFLSOLQH RI PROHFXODU JDVWURQRP\ ZDV LQWHQGHG WR EULQJ WRJHWKHU
ZKDW KDG SUHYLRXVO\ EHHQ IUDJPHQWHG DQG LVRODWHG LQYHVWLJDWLRQ LQWR WKH
FKHPLFDO DQG SK\VLFDO SURFHVVHV RI FRRNLQJ LQWR DQ RUJDQL]HG GLVFLSOLQH
ZLWKLQIRRGVFLHQFHLQ6HFWKHPRUHRUOHVVRUGHUO\DSSHDUDQFHRI
DFWLRQV WR VWRS VSHFLHVHQGDQJHULQJ ZKDOLQJ DQG ILVKLQJ SUDFWLFHV LI
ORRNHGIURPWKHSHUVSHFWLYHRI6HD6KHSKHUGZKLFKUHJXODUO\XVHVYLROHQW
WDFWLFV LQ 6HF WKH PRUH RU OHVV RUGHUO\ DSSHDUDQFH RI IRRG
SUHVHUYDWLRQ QRZDGD\V LQVRIDU DV LW IROORZV WKH VWDQGDUGL]HG SURFHVV RI
FDQQLQJLQ6HFWKHPRUHRUOHVVRUGHUO\UHDOLW\RIIDVWIRRGVHUYLFHV
LI ORRNHG IURP WKH YDQWDJH SRLQW RI WKH ULVH RI D IHZ PXOWLQDWLRQDO
FRUSRUDWLRQV ZKLFK GRPLQDWH WKH IDVW IRRG LQGXVWU\ LQ RXU DJH RI
JOREDOL]DWLRQ ZLWK WKHLU XQLIRUP SUHGLFWDEOH VHUYLFHV LQ 6HF WKH
PRUHRUOHVVRUGHUO\DSSHDUDQFHRIIRRGLWHPVLQIRRGSKRWRVDIWHUKDYLQJ
EHHQ QLFHO\ DQG SURSHUO\ DUUDQJHG E\ IRRG SKRWRJUDSKHUV IRU
DGYHUWLVHPHQW LQ 6HF DQG WKH PRUH RU OHVV RUGHUO\ UHDOLW\ RI
UHJLRQDOFXLVLQHVLIORRNHGIURPWKHYDQWDJHSRLQWRIDSDUWLFXODUUHJLRQDO
FXLVLQHZLWKLWVRZQSUHIHUUHGLQJUHGLHQWVDQGWHFKQLTXHVLQ6HF
2QWKHRWKHUKDQGWKHUHLVFKDRVHJWKHPRUHRUOHVVFKDRWLFQDWXUH
RI PDQ\ QDWXUDO DSKURGLVLDFV VROG RQOLQH QRZDGD\V ZLWK WKHLU
TXHVWLRQDEOH PDUNHWLQJFODLPVVLQFH PDQ\RIWKHVHDUH UHPRYHG IURP
WKH PDUNHW E\ WKH )'$ ZKHQ IRXQG LQ 6HF WKH PRUH RU OHVV
FKDRWLFSUHVHQWDWLRQRIIRRGJURXSVWREHUHFRPPHQGHGIRUFRQVXPSWLRQ
LI ORRNHG IURP WKH YDQWDJH SRLQWV RI GLIIHUHQW FRQIOLFWLQJ YHUVLRQV RI WKH
IRRGJXLGHS\UDPLGDVZHOODVWKHLUFRPSHWLQJDOWHUQDWLYHVLQ6HF
WKH PRUH RU OHVV FKDRWLF UHDOLW\ RI IRRG FKDQV DQG HFRORJLFDO S\UDPLG LI
ORRNHG IURP WKH YDQWDJH SRLQW RI WKH FULWLFV ZKR ZDUQ XV WKDW WKH
GHVLJQDWLRQ RI RUJDQLVPV LQ D S\UDPLG RI SURGXFWLYLW\ FDQ EH DUELWUDU\
MXVWDVLQUHJDUGWRWKHRUJDQLVPLQWKHIRRGFKDLQVWKHUHLVWKHSUREOHP
RI DVVLJQLQJ WKH GHFRPSRVHUV DQG GHWULWLYRUHV WR D SDUWLFXODU WURSKLF
OHYHO LQ 6HF WKH PRUH RU OHVV FKDRWLF UHDOLW\ RI WKH ULJKW IRRG
JURXSV WR EH FRQVXPHG LI ORRNHG IURP WKH GLYHUVH RIWHQ FRQIOLFWLQJ
YDQWDJHSRLQWVRIUDZYHJDQLVPUDZYHJHWDULDQLVPUDZDQLPDOIRRGGLHWV
QRUPDO GLHWV DQG RWKHU YLHZV E\ GLIIHUHQW IRRG FULWLFV LQ 6HF WKH
PRUHRUOHVVFKDRWLFDSSHDUDQFHRIZDUVLIORRNHGIURPWKHYDQWDJHSRLQW
RI WKH RIWHQ XQFHUWDLQ RXWFRPHV LQ WKH EDWWOHILHOGV HVSHFLDOO\ WKRXJK QRW
H[FOXVLYHO\ LQ UHJDUG WR LQGLYLGXDO OLYHV LQ 6HF WKH PRUH RU OHVV
FKDRWLFDSSHDUDQFHRIWKHZRUOGLIORRNHGIURPWKHYDQWDJHSRLQWRIKRZ
WKH(XURSHDQV
GLVFRYHUHG
WKH$PHULFDVVHWWLQJLQPRWLRQDSURFHVVWKDW
ZRXOGGLVUXSWPDQ\VRFLHWLHVDQGGHYDVWDWHLQGLJHQRXVSRSXODWLRQVRIWKH
:HVWHUQ+HPLVSKHUHLQ6HFWKH PRUHRUOHVVFKDRWLFDSSHDUDQFH
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
RI +LQGXLVP LI ORRNHG IURP WKH YDQWDJH SRLQW RI LWV GLYHUVH FRQIOLFWLQJ
IRRGKDELWVLQSUDFWLFHZKLFKYDU\JUHDWO\ZLWKWKHFRPPXQLW\DQGUHJLRQ
DQG DOVR IURP VHFW WR VHFW LQ 6HF WKH PRUH RU OHVV FKDRWLF
DSSHDUDQFH RI &DOLIRUQLD FXLVLQH EHFDXVH RI LWV UHOLDQFH RQ GLVSDUDWH
FRRNLQJ VW\OHV DQG LQJUHGLHQWV IURP PXOWLSOH HYHQ FRQIOLFWLQJ VRXUFHV
LQ 6HF WKH PRUH RU OHVV FKDRWLF DSSHDUDQFH RI IRRG VDIHW\ LQ WKH
8QLWHG 6WDWHV LI ORRNHG IURP WKH YDQWDJH SRLQW RI IHGHUDO UHJXODWLRQV
JRYHUQLQJ IRRG VDIHW\ ZKLFK DUH WRR IUDJPHQWHG DQG FRPSOLFDWHG
DFFRUGLQJWRD)HEUXDU\UHSRUWIURPWKH*RYHUQPHQW$FFRXQWDELOLW\
2IILFHLQ6HFWKHPRUHRUOHVVFKDRWLFDSSHDUDQFHRIFRRNLQJDQG
KHDOWK LI ORRNHG IURP WKH YDQWDJH SRLQWV RI GLIIHUHQW FRQIOLFWLQJ VWXGLHV
VXFKWKDWPDQ\RIWKHVHUHVHDUFKUHVXOWVFDQEHLQFRQFOXVLYHLQFRQVLVWHQW
HWFLQ6HFWKHPRUHRUOHVVFKDRWLFDSSHDUDQFHRIWKHVWXG\RIIRRG
LQWKHROGHUGD\VZKHQPDQ\GLVSDUDWHH[DPSOHVRIWKHLQYHVWLJDWLRQRI
FRRNLQJ H[LVW WKURXJKRXW KLVWRU\ EXW WKH\ KDG SUHYLRXVO\ EHHQ
IUDJPHQWHG DQG LVRODWHG LQ 6HF WKH PRUH RU OHVV FKDRWLF
DSSHDUDQFHRILQWHUQDWLRQDOFRQVHUYDWLRQODZVDQGLQWHUQDWLRQDOPDULWLPH
ODZ LI ORRNHG IURP WKH SHUVSHFWLYH RI WKH ODFN RI RIILFLDO HQIRUFHPHQW
PHFKDQLVPV DV SRLQWHG RXW E\ 6HD 6KHSKHUG LQ 6HF WKH PRUH RU
OHVV FKDRWLF DSSHDUDQFH RI IRRG SUHVHUYDWLRQ LQ WKH ROGHU GD\V SULRU WR
FDQQLQJ VLQFH WKHUH ZHUH GLIIHUHQW PHWKRGV XVHG E\ GLIIHUHQW FXOWXUHV DW
GLIIHUHQWWLPHVLQ6HFWKHPRUHRUOHVVFKDRWLFUHDOLW\RIIDVWIRRG
VHUYLFHV LI ORRNHG IURP WKH YDQWDJH SRLQW RI QXPHURXV GLIIHUHQW RXWOHWV
DQG IRUPV RI IDVW IRRG LQ GLIIHUHQW FXOWXUHV DW GLIIHUHQW WLPHV LQ KLVWRU\
ZLWK GLIIHUHQW VWDQGDUGV EHIRUH WKH ULVH RI WKH IDVW IRRG LQGXVWU\ LQ RXU
WLPH LQ 6HF WKH PRUH RU OHVV FKDRWLF DSSHDUDQFH RI IRRGV DV WKH\
GHFD\ LQ QDWXUH ZLWKRXW EHLQJ QLFHO\ DQG SURSHUO\ DUUDQJHG E\ IRRG
SKRWRJUDSKHUV IRU DGYHUWLVHPHQW LQ 6HF DQG WKH PRUH RU OHVV
FKDRWLFUHDOLW\RIUHJLRQDOFXLVLQHVLIORRNHGIURPDOOWKHYDQWDJHSRLQWVRI
DOOWKHGLIIHUHQWFXLVLQHVRIWKHZRUOGLQ6HF
$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
2QFH PRUH LW VKRXOG EH VWUHVVHG KRZHYHU WKDW WKHUH DUH GLIIHUHQW
VKDGHVRIJUD\RUGLIIHUHQWGHJUHHVRIWUXWKLQWKHWZRRSSRVLWHVDQGWKH
FODVVLILFDWLRQ LV QRW QHFHVVDULO\ PXWXDOO\ H[FOXVLYH HLWKHU ,Q IDFW HYHQ
ZKHQVRPHFRPELQDWLRQVRIWKHWZRRFFXUWKH\RQO\HQG XSVKDULQJWKH
VDPHGLDOHFWLFUHODWLRQVKLSEXWLQDGLIIHUHQWGHJUHH
$OVR WKHUH DUH VRPH RWKHU UHODWLRQVKLSV DV D NLQG RI IDPLO\
UHVHPEODQFH ZKLFK KDYH VRPHWKLQJ LQ FRPPRQ ZLWK WKH SULQFLSOH EXW
WKH\ DUH QRW H[DFWO\ WKH VDPH EXW RQO\ PRUH RU OHVV FRPSDUDEOH ZKLFK
YDULHVIURPFDVHWRFDVH
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
*RRGH[DPSOHVRIIDPLO\UHVHPEODQFHLQUHODWLRQWRWKHSULQFLSOHDUH
ODZIXOQHVVGLVRUGHU RUGHUGLVRUGHU SDWWHUQFKDRV OLQHDULW\QRQOLQHDULW\
XQLW\GLVXQLW\OLQHDULW\LUUHYHUVDOQHVVHWF
WK7KHVLV7KH6ORZQHVV4XLFNQHVV3ULQFLSOH
7KH IRXUWHHQWK WKHVLV FRQFHUQV WKH VORZQHVVTXLFNQHVV SULQFLSOH RQ
WKHVSHHGRIFKDQJHLQWKHFDWHJRU\RISURFHVVLQH[LVWHQWLDOGLDOHFWLFV
ZKLFKZDVILUVWZRUNHGRXWLQ),$LQWKDWERWKVORZQHVVDQGTXLFNQHVV
FRH[LVWZLWKWKHLURZQLQWHUQDOWHQVLRQWRWKHH[WHQWWKDWHDFKILJKWVIRU
LWV RZQ UHOHYDQFH ZLWK WKH RWKHU LQ DFFRUGDQFH WR WKH SHUVSHFWLYHV RI
QDWXUHWKHPLQGFXOWXUHDQGVRFLHW\ZLWKRXWRQHEHLQJWKHYLFWRUDQGWKH
RWKHUEHLQJWKHYDQTXLVKHGLQWKHORQJKDXO7KHUHLVQRVORZQHVVZLWKRXW
TXLFNQHVVDQGYLFHYHUVD
)RU LQVWDQFH RQ WKH RQH KDQG WKHUH LV VORZQHVV HJ WKH UHODWLYHO\
VORZHU VSHHG RI WKH HIIHFWLYHQHVV RI QDWXUDO DSKURGLVLDFV OLNH FLWUXOOLQH
IURPZDWHUPHORQZKLFKLVDZHDNQLWULFR[LGHVWLPXODWRULQ6HF
WKH UHODWLYHO\ VORZHU VSHHG RI PLON SURGXFWV WR EH FRQVXPHG E\ SHRSOH
ZKRDUHODFWRVHLQWROHUDQW LQ6HFWKHUHODWLYHO\VORZHUVSHHGRI
WKH UHSURGXFWLRQ RI KHWHURWURSKV VXFK DV ILVK DQG LQVHFWV DW WKH KLJKHU
WURSKLFOHYHOLQ6HFWKHUHODWLYHO\VORZHUVSHHGRIIRRGWREHIXOO\
FRRNHG LI KHDWHG ZHOO EHORZ )DKUHQKHLW > &@ LQ 6HF WKH
UHODWLYHO\VORZHUVSHHGRIDSRSXODWLRQWREHUHGXFHGLIDIIHFWHGE\FKDULW\
WRWKHSRRULQ6HFWKHUHODWLYHO\VORZHUVSHHGRIDKRXVHKROGWRJHW
DFFHVV WR WKH SRUWLRQV RI GLHW ORFDOO\ DIWHU WKH RFFXUUHQFH RI
GHORFDOL]DWLRQ DV H[SODLQHG E\ 3HOWR DQG 3HOWR LQ 6HF WKH
UHODWLYHO\ VORZHUVSHHGRIVRPHRQHWRJLYHLQWRWKHLQFOLQDWLRQRIHDWLQJ
PHDWLIRQHGRHVQRWDOORZDQ\H[FXVHDQGVWULFWO\IROORZVYHJHWDULDQLVP
DVDGYRFDWHGE\)DUP6DQFWXDU\LQ6HFWKHUHODWLYHO\VORZHUVSHHG
RI IRRG WR EH SURFHVVHG LQ &DOLIRUQLD FXLVLQH EHFDXVH RI LWV UHOLDQFH RQ
IUHVK LQJUHGLHQWV LQ 6HF WKH UHODWLYHO\ VORZHU VSHHG RI FRRNLQJ
IRUIRRGVDIHW\LIFRRNHGZLWKDWHUPSHUDWXUHRI&IRUVHFRQGVDV
VXJJHVWHGLQRQHJXLGHOLQHE\WKH8.'HSDUWPHQW2I+HDOWKLQ6HF
WKHUHODWLYHO\VORZHUVSHHGRISRLVRQLQJWRRFFXULQUHGEHDQVLIWKH\DUH
FRRNHG ZLWK VORZ FRRNHU LQ 6HF WKH UHODWLYHO\ VORZHU VSHHG RI
.XUWLVORZWHPSHUDWXUHFRRNLQJZKHQKHOHIWDNJODPEMRLQWLQDQ
RYHQDW&>)@IRUKRXUVDIWHU ZKLFK ERWKWKHLQVLGHDQG
RXWVLGHWHPSHUDWXUHRIWKHODPEMRLQWZHUHDURXQG&>)@DQGWKH
PHDW ZDV WHQGHU DQG MXLF\ LQ 6HF WKH UHODWLYHO\ VORZHU VSHHG RI
WKH -DSDQHVH JRYHUQPHQW WR UHVRUW WR YLROHQW WDFWLFV WR VWRS VSHFLHV
HQGDQJHULQJ ZKDOLQJ DQG ILVKLQJ SUDFWLFHV LQ 6HF WKH UHODWLYHO\
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
VORZHUVSHHGRIWKHFDQQLQJSURFHVVDWWKHHDUO\VWDJHRILWVGHYHORSPHQW
ZKHQ LQLWLDOO\ WKH FDQQLQJ SURFHVV ZDV VORZ DQG ODERXULQWHQVLYH DV
HDFK ODUJH FDQ KDG WR EH KDQGPDGH DQG WRRN XS WR VL[ KRXUV WR FRRN
PDNLQJFDQQHGIRRGWRRH[SHQVLYHIRURUGLQDU\SHRSOHLQ6HFWKH
UHODWLYHO\VORZHUVSHHGRIIRRGWREHSURFHVVHGDQGUHDG\WREHVHUYHGOLNH
WKH WUDGLWLRQDO IRRG FRRNHG DW KRPH LQ 6HF WKH UHODWLYHO\ VORZHU
VSHHGRIIRRGLWHPVWREHVHOHFWHGIRUIRRGSKRWRJUDSK\ZKHQWKH\EHJLQ
WR VSRLO RU VLPSO\ DUH QRW WKH PRVW YLVXDOO\ SHUIHFW IRRGVWXIIV LQ 6HF
DQGWKHUHODWLYHO\VORZHUVSHHGRIIRRGWREHFRRNHGLILWLVQRWFXW
LQWRVPDOOSLHFHVLQ6HF
2Q WKH RWKHU KDQG WKHUH LV TXLFNQHVV HJ WKH UHODWLYHO\ TXLFNHU
VSHHG RI WKH HIIHFWLYHQHVV RI QDWXUDO DSKURGLVLDFV OLNH FLWUXOOLQH IURP
ZDWHUPHORQZKHQ FRPELQHG ZLWK (SLGHPLXP >D QDWXUDO SGH LQKLELWRU@
DQG0DFD>GRSDPLQHLQKLELWRUDQGVHUDWRQLQVWLPXODWRU@LQ6HFWKH
UHODWLYHO\TXLFNHUVSHHGRIPLONSURGXFWVWREHFRQVXPHGE\SHRSOHZKR
DUHQRWODFWRVHLQWROHUDQWDQGDUHKHDYLO\LQIOXHQFHGE\WKHDGVRIPLON
FRPSDQLHVLQ6HFWKHUHODWLYHO\TXLFNHUVSHHGRIWKHUHSURGXFWLRQ
RI SK\WRSODQNWRQ ZKLFK DUH WKH PDMRU SURGXFHUV DW WKH ORZHVW WURSKLF
OHYHOLQ6HFWKHUHODWLYHO\TXLFNHUVSHHGRIIRRGWREHIXOO\FRRNHG
LI KHDWHG ZHOO DERYH )DKUHQKHLW > &HOVLXV@ LQ 6HF WKH
UHODWLYHO\ TXLFNHU VSHHG RI D SRSXODWLRQ WR EH UHGXFHG LI DIIHFWHG E\
SUHYHQWLYH FKHFNV DQG SRVLWLYH FKHFNV LQ 6HF WKH UHODWLYHO\
TXLFNHUVSHHGRIDKRXVHKROGWRJHWDFFHVVWRWKHSRUWLRQVRIGLHWORFDOO\
ORQJEHIRUHWKHRFFXUUHQFHRIGHORFDOL]DWLRQLQ6HFWKHUHODWLYHO\
TXLFNHU VSHHG RI VRPHRQH WR JLYH LQ WR WKH LQFOLQDWLRQ RI HDWLQJ PHDW LI
RQHKDVH[FXVHVWRHQDEOHRQHWRILQGRUPDNHDUHDVRQIRUHYHU\WKLQJ
RQHKDVDPLQGWRGRDVWROGE\%HQMDPLQ)UDQNOLQ>@ZKHQKHRQFH
FRQIHVVHG WR KDYH YLRODWHG KLV RZQ YHJHWDULDQLVP LQ 6HF WKH
UHODWLYHO\ TXLFNHU VSHHG RI IRRG WR EH SURFHVVHG LQ IUR]HQ IDVWIRRG
FXLVLQHEHFDXVHRILWVUHOLDQFHRQIUR]HQIDVWIRRGLQJUHGLHQWVZKLFKDUH
DOUHDG\SUHKHDWHGDQGSUHFRRNHGVRWKH\DUHUHDG\WREHXVHGTXLFNO\DW
DQ\ WLPH LQ 6HF WKH UHODWLYHO\ TXLFNHU VSHHG RI FRRNLQJ IRU IRRG
VDIHW\LIFRRNHGZLWKDWHUPSHUDWXUHRI&IRUVHFRQGVDVVXJJHVWHG
LQ DQRWKHU JXLGHOLQH E\ WKH 8. 'HSDUWPHQW RI +HDOWK LQ 6HF WKH
UHODWLYHO\TXLFNHU VSHHGRISRLVRQLQJ WRRFFXULQ NLGQH\ EHDQVLIWKH\
DUH HDWHQ UDZ RU LPSURSHUO\ FRRNHG GXH WR WKH SUHVHQFH RI
SK\WRKDHPDJJOXWLQLQ ZKLFK FDQ EH LQDFWLYDWHG DIWHU FRRNLQJ IRU DW OHDVW
WHQ PLQXWHV DW & LQ 6HF WKH UHODWLYHO\ TXLFNHU VSHHG RI
QRUPDO FRRNLQJ RI D NJ ODPE DW D WHPSHUDWXUH KLJKHU WKDQ WKH RQH
SUHIHUUHGE\.XUWLVXFKWKDWLWFDQEHFRRNHGLQRQO\DIHZKRXUVOHVV
WKDQKRXUVLQ6HFWKHUHODWLYHO\TXLFNHUVSHHGRIJURXSVOLNH
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
6HD 6KHSKHUG WR UHVRUW WR YLROHQW WDFWLFV WR VWRS VSHFLHVHQGDQJHULQJ
ZKDOLQJDQGILVKLQJSUDFWLFHVLQ6HFWKHUHODWLYHO\TXLFNHUVSHHG
RIWKHFDQQLQJSURFHVVODWHURQVLQFHE\WKHVVPDOOHUPDFKLQHPDGH
VWHHOFDQVZHUHSRVVLEOHDQGWKHWLPHWRFRRNIRRGLQVHDOHGFDQVKDGEHHQ
UHGXFHG IURP DURXQG VL[ KRXUV WR WKLUW\ PLQXWHV LQ 6HF WKH
UHODWLYHO\TXLFNHUVSHHGRIIRRGWREHSURFHVVHGDQGUHDG\WREHVHUYHGLQ
IDVWIRRGRXWOHWVLQ6HFWKHUHODWLYHO\TXLFNHUVSHHGRIIRRGLWHPVWR
EHVHOHFWHGIRUIRRGSKRWRJUDSK\ZKHQWKH\DUHWKHPRVWYLVXDOO\SHUIHFW
IRRGVWXIIV LQ 6HF DQG WKH UHODWLYHO\ TXLFNHU VSHHG RI IRRG WR EH
FRRNHGLIFXWWLQJIRRGLQWRVPDOOSLHFHVLVXVHGDVLQWKH&KLQHVHZD\RI
FRRNLQJLQ6HF
$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
$JDLQLWVKRXOGEHVWUHVVHG KRZHYHUWKDWWKHUHDUHGLIIHUHQWVKDGHV
RI JUD\ RU GLIIHUHQW GHJUHHV RI WUXWK LQ WKH WZR RSSRVLWHV DQG WKH
FODVVLILFDWLRQ LV QRW QHFHVVDULO\ PXWXDOO\ H[FOXVLYH HLWKHU ,Q IDFW HYHQ
ZKHQVRPHFRPELQDWLRQVRIWKHWZRRFFXUWKH\RQO\HQG XSVKDULQJWKH
VDPHGLDOHFWLFUHODWLRQVKLSEXWLQDGLIIHUHQWGHJUHH
$OVR WKHUH DUH VRPH RWKHU UHODWLRQVKLSV DV D NLQG RI IDPLO\
UHVHPEODQFH ZKLFK KDYH VRPHWKLQJ LQ FRPPRQ ZLWK WKH SULQFLSOH EXW
WKH\ DUH QRW H[DFWO\ WKH VDPH EXW RQO\ PRUH RU OHVV FRPSDUDEOH ZKLFK
YDULHVIURPFDVHWRFDVH
*RRGH[DPSOHVRIIDPLO\UHVHPEODQFHLQUHODWLRQWRWKHSULQFLSOHDUH
LQFRQYHQLHQFHFRQYHQLHQFH SDVVLYHQHVVDFWLYHQHVVQHVV JUDGXDOQHVV
DEUXSWQHVVGHFHOHUDWLRQDFFHOHUDWLRQGLIILFXOW\HDVHDQGWKHOLNH
WK7KHVLV7KH([SDQVLRQ&RQWUDFWLRQ3ULQFLSOH
7KHILIWHHQWKWKHVLVLVFDOOHGWKHH[SDQVLRQFRQWUDFWLRQSULQFLSOHLQWKH
FDWHJRU\RISURFHVVLQH[LVWHQWLDOGLDOHFWLFVLQWKDWHQWLWLHVLQWKHZRUOG
FDQERWKH[SDQGLQVRPHZD\VDQGFRQWUDFWLQRWKHURQHVDVSDUWRIWKHLU
QDWXUH7KHUHLVQRH[SDQVLRQZLWKRXWFRQWUDFWLRQDQGYLFHYHUVD
7KLVSULQFLSOHDOWKRXJK QRWVRH[SOLFLWO\FDOOHG ZDVDOUHDG\ XVHGLQ
P\ SUHYLRXV ZRUNV RQ GLIIHUHQW WRSLFV HJ WKH WKHRU\ RI IORDWLQJ
FRQVFLRXVQHVVLQ)&'DQG)3+&WKHXQLRQRIWKHXQLRQVLQ%:7DQGWKH
F\FOLFDOSURJUHVVLRQRIV\VWHPIUDJPHQWDWLRQDQGLQWHJUDWLRQLQ)&'
)RU LQVWDQFH RQ WKH RQH KDQG WKHUH LV H[SDQVLRQ HJ WKH UHODWLYH
H[SDQVLRQ RI WKH SHQLV GXULQJ HUHFWLRQ HVSHFLDOO\ ZKHQ KHOSHG E\ DQWL
HUHFWLOHG\VIXQFWLRQGUXJVVXFKDV9LDJUDDQG/HYLWUDLQ6HFWKH
UHODWLYHVSUHDGRIWKHHGXFDWLRQDERXWWKHIRRGJXLGHS\UDPLGLQWKH86
LQ WKH V LQ 6HF WKH UHODWLYH H[SDQVLRQ RI WKH QXPEHU RI
RUJDQLVLPVDWORZHUWURSKLFOHYHOVLQ6HFWKHUHODWLYHWHQIROGULVH
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
WR HLWKHU TXDOLW\ RU VDIHW\ LQ 6HF WKH UHODWLYH GHFOLQH RI VRPH
EDFWHULDDQGYLUXVHVDVZHOODVYDULRXVSDUDVLWHVVXFKDVWDSHZRUPVDQG
7R[RSODVPD JRQGLL LQ IRRG ZKHQ FRRNHG ZLWK KHDW LQ 6HF WKH
UHODWLYHGHFOLQHRIWKHQXPEHURIP\WKVDERXWFRRNLQJZKLFKKDVVLQFH
EHHQ GHEXQNHG RU H[SODLQHG E\ WKRVH LQ PROHFXODU JDVWURQRP\ OLNH
<RXQHHGWRDGGVDOWWRZDWHUZKHQFRRNLQJJUHHQYHJHWDEOHV6HDULQJ
PHDWVHDOVLQWKHMXLFHVHWFLQ6HFWKHUHODWLYHGHFOLQHRIPHWKRGV
WR NLOO IRU IRRG ZKLFK FDQ FDXVH
XQGXH
H[FLWHPHQW DQG GLVFRPIRUW
RI
DQLPDOVQRZDGD\VLQ6HFWKHUHODWLYHGHFOLQHRI WKHXVHRI JODVV
MDUVIRUIRRGSUHVHUYDWLRQQRZDGD\VLQ6HFWKHUHODWLYHGHFOLQHRI
WUDGLWLRQDO IRRG WR EH HODERUDWHO\ FRRNHG QRZDGD\V LQ 6HF WKH
UHODWLYH GHFOLQH RI IRRG SRUQ QRZDGD\V LQ 6HF DQG WKH UHODWLYH
GHFOLQH RI VWULFWO\ UHJLRQDO FXLVLQHV LQ RXU DJH RI JOREDOL]DWLRQ LQ 6HF
$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
$JDLQLWVKRXOGEHVWUHVVHG KRZHYHUWKDWWKHUHDUHGLIIHUHQWVKDGHV
RI JUD\ RU GLIIHUHQW GHJUHHV RI WUXWK LQ WKH WZR RSSRVLWHV DQG WKH
FODVVLILFDWLRQ LV QRW QHFHVVDULO\ PXWXDOO\ H[FOXVLYH HLWKHU ,Q IDFW HYHQ
ZKHQVRPHFRPELQDWLRQVRIWKHWZRRFFXUWKH\RQO\HQG XSVKDULQJWKH
VDPHGLDOHFWLFUHODWLRQVKLSEXWLQDGLIIHUHQWGHJUHH
$OVR WKHUH DUH VRPH RWKHU UHODWLRQVKLSV DV D NLQG RI IDPLO\
UHVHPEODQFH ZKLFK KDYH VRPHWKLQJ LQ FRPPRQ ZLWK WKH SULQFLSOH EXW
WKH\ DUH QRW H[DFWO\ WKH VDPH EXW RQO\ PRUH RU OHVV FRPSDUDEOH ZKLFK
YDULHVIURPFDVHWRFDVH
*RRGH[DPSOHVRIIDPLO\UHVHPEODQFHLQUHODWLRQWRWKHSULQFLSOHDUH
FRQTXHVWDXWDUN\ ULVHIDOO VSUHDGVKULQN H[WHQGLQJQHVVVKRUWHQLQJQHVV
ZLGHQLQJQDUURZLQJDQGVRIRUWK
,Q5HODWLRQWR$JHQF\
7KHQH[WHLJKWWKHVHVDUHLQUHODWLRQWRDJHQF\LQH[LVWHQWLDOGLDOHFWLFV
DVVKRZQEHORZ
WK7KHVLV7KH7KHRU\3UD[LV3ULQFLSOH
7KH VL[WHHQWK WKHVLV LV WKH WKHRU\SUD[LV SULQFLSOH RQ WKH GXDOLW\ RI
NQRZOHGJH LQ WKH FDWHJRU\ RI DJHQF\ LQ H[LVWHQWLDO GLDOHFWLFV ZKLFK
ZDVILUVWZRUNHGRXWLQ)3+(LQWKDWLIWKHUHLVWKHRUHWLFDOFRQVWUXFWLRQ
WKHUH LV OLNHZLVH LWV SUDFWLFDO DSSOLFDWLRQ ERWK WHFKQLFDO DQG QRUPDWLYH
7KHUHLVQRWKHRU\ZLWKRXWSUD[LVDQGYLFHYHUVD
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
)RU LQVWDQFH RQ WKH RQH KDQG WKHUH LV WKHRU\ HJ WKH WKHRUHWLFDO
FRQVWUXFWLRQ RI PHWKDPSKHWDPLQH LQ FKHPLVWU\ LQ 6HF WKH
WKHRUHWLFDO FRQVWUXFWLRQ E\ )MDODU &OHPHV LQ RI DQ LGHD DERXW D
WULDQJOH GLVSOD\LQJ EDVLF IRRGV DW WKH EDVH LQ 6HF WKH WKHRUHWLFDO
FRQVWUXFWLRQ RI IRRG FKDLQV LQ HFRORJ\ LQ 6HF WKH WKHRUHWLFDO
FRQVWUXFWLRQRIWKHLGHDRIQDWXUDOHYROXWLRQLQELRORJ\LQ6HFWKH
WKHRUHWLFDO FRQVWUXFWLRQ RI 0DOWKXVLDQLVP LQ HFRQRPLFV LQ 6HF
WKHWKHRUHWLFDOFRQVWUXFWLRQRIJOREDOL]DWLRQLQHFRQRPLFVLQ6HF
WKH WKHRUHWLFDO FRQVWUXFWLRQ RI XWLOLWDULDQLVP LQ HWKLFV LQ 6HF WKH
WKHRUHWLFDO FRQVWUXFWLRQ RI IUHH VSHHFK LQ SROLWLFDO SKLORVRSK\ LQ 6HF
LQWKHRU\IRRGSRLVRQLQJLVSUHYHQWDEOHLQ6HFWKH
WKHRUHWLFDO FRQVWUXFWLRQ RI HYROXWLRQ LQ ELRORJ\ LQ 6HF WKH
WKHRUHWLFDO FRQVWUXFWLRQ RI IRRG SDLULQJ LQ IRRG VFLHQFH LQ 6HF
WKH WKHRUHWLFDO FRQVWUXFWLRQ RI HQYLURQPHQWDOLVP LQ HQYLURQPHQWDO
VWXGLHV LQ 6HF WKH WKHRUHWLFDO FRQVWUXFWLRQ RI SDVWHXUL]DWLRQ LQ
PHGLFLQHE\3DVWHXULQ6HFWKHWKHRUHWLFDOFRQVWUXFWLRQRIWKHLGHD
RI UHDG\FRRNHG IRRG IRU VDOH LQ IRRG KLVWRU\ LQ 6HF WKH
WKHRUHWLFDO FRQVWUXFWLRQ RI SKRWRJUDSK\ LQ HOHFWURQLFV LQ 6HF DQG
WKHWKHRUHWLFDOFRQVWUXFWLRQRIWKHLGHDRIIXVLRQFXLVLQHE\5LFKDUG:LQJ
ZKRSLRQHHUHGWKHLGHDLQWKHVE\FRPELQLQJ)UHQFKDQG&KLQHVH
FRRNLQJDWWKHIRUPHU,PSHULDO'\QDVW\UHVWDXUDQWLQ+DQIRUG&DOLIRUQLD
LQ6HF
2QWKHRWKHUKDQGWKHUHLVSUD[LVHJWKHSUDFWLFDODSSOLFDWLRQRIWKH
WKHRUHWLFDOFRQVWUXFWLRQRIPHWKDPSKHWDPLQHLQFKHPLVWU\WRWKHILHOGRI
VH[XDOLW\VLQFHVWLPXODQWVDIIHFWLQJWKHGRSDPLQHV\VWHPVXFKDVFRFDLQH
DQG DPSKHWDPLQHV >OLNH PHWKDPSKHWDPLQH@ DUH IUHTXHQWO\ DVVRFLDWHG
ZLWKK\SHUVH[XDOLW\LQ6HFWKHSUDFWLFDODSSOLFDWLRQRIWKHLGHD
DERXW D WULDQJOH GLVSOD\LQJ EDVLF IRRGV DW WKH EDVH WR WKH ILHOG RI
QXWULWLRQ DV VKRZQ LQ WKH VSUHDG RI WKH HGXFDWLRQ DERXW WKH IRRG JXLGH
S\UDPLG SURSRVHG E\ WKH 86'$ LQ WKH 86 GXULQJ WKH V LQ 6HF
WKH SUDFWLFDO DSSOLFDWLRQ RI IRRG FKDLQV LQ HFRORJ\ WR WKH ILHOG RI
HFRWR[LFRORJ\ IRU WKH VWXG\ RI WKH SDWKZD\V DQG ELRPDJQLILFDWLRQ RI
HQYLURQPHQWDOFRQWDPLQDQWVLQ6HFWKHSUDFWLFDODSSOLFDWLRQRIWKH
LGHDRIQDWXUDOHYROXWLRQLQELRORJ\WRWKHILHOGRIQXWULWLRQDVVKRZQE\
WKH ZRUN RI 5LFKDUG :UDQJKDP >@ ZKR DUJXHG WKDW HDWLQJ FRRNHG
IRRGLVPRUH
QDWXUDO
IRUWKHKXPDQGLJHVWLYHV\VWHPEHFDXVHWKHKXPDQ
GLJHVWLYH V\VWHP PD\ KDYH HYROYHG WR GHDO ZLWK FRRNHG IRRGV LQ 6HF
WKHSUDFWLFDODSSOLFDWLRQRI0DOWKXVLDQLVPLQHFRQRPLFVWRWKHILHOG
RI HYROXWLRQDU\ WKHRU\ EHFDXVH WKH LGHDV RI 0DOWKXV ZHUH D VLJQLILFDQW
LQIOXHQFH RQ WKH LQFHSWLRQ RI 'DUZLQ
V WKHRU\ RI HYROXWLRQ DV 'DUZLQ
ZDVLPSUHVVHGE\WKHLGHDWKDWSRSXODWLRQJURZWKZRXOGHYHQWXDOO\OHDGWR
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
PRUH RUJDQLVPV WKDQ FRXOG SRVVLEO\ VXUYLYH LQ DQ\ JLYHQ HQYLURQPHQW
OHDGLQJ KLP WR WKHRUL]H WKDW RUJDQLVPV ZLWK D UHODWLYH DGYDQWDJH LQ WKH
VWUXJJOH IRU VXUYLYDO DQG UHSURGXFWLRQ ZRXOG EH DEOH WR SDVV WKHLU
FKDUDFWHULVWLFV RQ WR IXUWKHU JHQHUDWLRQV LQ 6HF WKH SUDFWLFDO
DSSOLFDWLRQ RI WKH LGHD RI JOREDOL]DWLRQ LQ HFRQRPLFV WR WKH ILHOG RI
QXWULWLRQDOVFLHQFHDVVKRZQLQWKHVWXG\RIJOREDOL]DWLRQDQGQXWULWLRQLQ
6HFWKHSUDFWLFDODSSOLFDWLRQRIXWLOLWDULDQLVPLQHWKLFVWRWKHILHOGRI
DQLPDOWUHDWPHQWDVVKRZQE\WKHXWLOLWDULDQDUJXPHQWSURSRVHGE\3HWHU
6LQJHUIRUDQLPDOOLEHUDWLRQLQ6HFWKHSUDFWLFDODSSOLFDWLRQRIIUHH
VSHHFK LQ SROLWLFDO SKLORVRSK\ WR WKH ILHOG RI FXOLQDU\ DUW DV VKRZQ LQ
WKH &XOLQDU\ 5HYROXWLRQ ZKLFK JUHZ RXW RI WKH )UHH 6SHHFK
0RYHPHQWZKHQVRFLRSROLWLFDOLVVXHVEHJDQWRSURIRXQGO\DIIHFWWKHZD\
$PHULFDQVHDWLQ6HFWKHGLIIHUHQWSUREOHPVLQGLIIHUHQWFRXQWULHV
LQUHJDUGWRUHJXODWRU\HQIRUFHPHQWVFOHDUO\VKRZWKDWUHDOLW\LVIDU IURP
ZKDW WKH WKHRU\ ZRXOG KDYH XV EHOLHYH LQ 6HF WKH SUDFWLFDO
DSSOLFDWLRQRIHYROXWLRQLQELRORJ\WRWKHILHOGRIIRRGVFLHQFHOLNHWKH
FODLP WKDW SUHSDULQJ IRRG ZLWK KHDW RU ILUH LV DQ DFWLYLW\ XQLTXH WR
KXPDQV DQG VRPH VFLHQWLVWV EHOLHYH WKH DGYHQW RI FRRNLQJ SOD\HG DQ
LPSRUWDQWUROHLQKXPDQHYROXWLRQLQ6HFWKHSUDFWLFDODSSOLFDWLRQ
RI IRRG SDLULQJ LQ IRRG VFLHQFH WR WKH SUDFWLFDO ZRUOG RI IRRG VHUYLFH
ZKHQQHZDQGXQH[SHFWHGFRPELQDWLRQVVXFKDVVWUDZEHUULHVSDLUHGZLWK
SHDVZHUHDGRSWHGE\6DQJ+RRQ'HJHLPEUHFKHIRI/$LUGXWHPSVLQ
%HOJLXPLQ6HFWKHSUDFWLFDODSSOLFDWLRQRIHQYLURQPHQWDOLVPLQ
HQYLURQPHQWDO VWXGLHV WR WKH ILHOG RI DFWLYLVP OLNH WKH UHVRUW WR YLROHQW
WDFWLFV E\ 6HD 6KHSKHUG IRU HFRWHUURULVP LQ 6HF WKH SUDFWLFDO
DSSOLFDWLRQRISDVWHXUL]DWLRQLQPHGLFLQHWRWKHILHOGRIIRRGVFLHQFHIRU
FDQQLQJ LQ 6HF WKH SUDFWLFDO DSSOLFDWLRQ RI WKH LGHD RI UHDG\
FRRNHGIRRGIRUVDOHLQIRRGKLVWRU\WRWKHUHVWRIWKHZRUOGDVVKRZQE\
WKHQXPEHUVWKDW%XUJHU.LQJKDVPRUHWKDQUHVWDXUDQWVLQPRUH
WKDQ FRXQWULHV .)& LV ORFDWHG LQ FRXQWULHV 6XEZD\ LV RQH RI
WKH IDVWHVW JURZLQJ IUDQFKLVHV LQ WKH ZRUOG ZLWK DSSUR[LPDWHO\
UHVWDXUDQWV LQ FRXQWULHV DV RI 0D\ 3L]]D +XW LV ORFDWHG LQ
FRXQWULHV HWF LQ 6HF WKH SUDFWLFDO DSSOLFDWLRQ RI SKRWRJUDSK\ LQ
HOHFWURQLFV WR WKH ILHOG RI IRRG DGYHUWLVHPHQW OLNH IRRG SKRWRJUDSK\ LQ
6HF DQG WKH SUDFWLFDO DSSOLFDWLRQ RI IXVLRQ FXLVLQH WR WKH UHVW RI
WKH ZRUOG DV VKRZQ E\ WKH GLIIHUHQW YHUVLRQV LQ WKH DUWLFOH DIRUHFLWHG LQ
6HF
$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
$JDLQLWVKRXOGEHVWUHVVHG KRZHYHUWKDWWKHUHDUHGLIIHUHQWVKDGHV
RI JUD\ RU GLIIHUHQW GHJUHHV RI WUXWK LQ WKH WZR RSSRVLWHV DQG WKH
FODVVLILFDWLRQ LV QRW QHFHVVDULO\ PXWXDOO\ H[FOXVLYH HLWKHU ,Q IDFW HYHQ
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
ZKHQVRPHFRPELQDWLRQVRIWKHWZRRFFXUWKH\RQO\HQG XSVKDULQJWKH
VDPHGLDOHFWLFUHODWLRQVKLSEXWLQDGLIIHUHQWGHJUHH
$OVR WKHUH DUH VRPH RWKHU UHODWLRQVKLSV DV D NLQG RI IDPLO\
UHVHPEODQFH ZKLFK KDYH VRPHWKLQJ LQ FRPPRQ ZLWK WKH SULQFLSOH EXW
WKH\ DUH QRW H[DFWO\ WKH VDPH EXW RQO\ PRUH RU OHVV FRPSDUDEOH ZKLFK
YDULHVIURPFDVHWRFDVH
*RRGH[DPSOHVRIIDPLO\UHVHPEODQFHLQUHODWLRQWRWKHSULQFLSOHDUH
GLVFRYHU\DSSOLFDWLRQ NQRZOHGJHDFWLRQ LQYHQWLRQLQQRYDWLRQ WKHRU\
LQWHQWLRQDOLW\ GLVFRXUVHDFWLRQ NQRZOHGJHLQWHUHVW NQRZOHGJH
PRWLYDWLRQXQLYHUVDOLW\SDUWLFXODULW\DQGVRIRUWK
WK7KHVLV7KH&RQYHQWLRQ1RYHOW\3ULQFLSOH
7KH VHYHQWHHQWK WKHVLV LV WKH FRQYHQWLRQQRYHOW\ SULQFLSOH RQ WKH
QDWXUH RI FUHDWLYH WKLQNLQJ LQ WKH FDWHJRU\ RI DJHQF\ LQ H[LVWHQWLDO
GLDOHFWLFV ZKLFK ZDV ILUVW ZRUNHG RXW LQ )3+&7 LQ WKDW LI WKHUH LV
FRQYHQWLRQDOZLVGRPWKHUHLVOLNHZLVHQRYHOFKDOOHQJHWRWKHH[WHQWWKDW
ERWK FRQYHUJHQW DQG GLYHUJHQW WKLQNLQJ DUH SDUW RI OLIH 7KHUH LV QR
FRQYHQWLRQZLWKRXWQRYHOW\DQGYLFHYHUVD
$V VUXPPDUL]HG IURP )3+&7 DOPRVW YHUEDWLP KHUH WKHUH DUH D
FUHDWLYH WHFKQLTXHV DQG E FUHDWLYH WUDLWV ZKLFK ZKHQ VDWLVILHGLQ
UHODWLRQWRWKHODUJHUFRQWH[WRIWKHPLQGQDWXUHVRFLHW\DQGFXOWXUHFDQ
EHXVHGWRHQKDQFHFUHDWLYHZRUNV
,Q DGGLWLRQ FUHDWLYH WKLQNLQJ KDV LWV RZQ SRVVLELOLWLHV DQG OLPLWV LQ
UHODWLRQ WR LQYHQWLRQ MXVW DV LW KDV LWV RZQ SURPLVHV DQG SLWIDOOV LQ
UHODWLRQWRLQQRYDWLRQDVDOUHDG\DQDO\]HGLQ)3+&7
,QWKHHQGFUHDWLYHWKLQNLQJKDVLWVRZQGHVLUDELOLW\DQGGDUNVLGHVDV
DOVRDOUHDG\DQDO\]HGLQ)3+&7
:LWKWKHVHFODULILFDWLRQVLQPLQGWKHUHDUHJRRGHPSLULFDOH[DPSOHV
IRUWKHFRQYHQWLRQQRYHOW\SULQFSOH
)RU LQVWDQFH RQ WKH RQH KDQG WKHUH LV FRQYHQWLRQ HJ WKH
FRQYHQWLRQDOZLVGRPDERXWWKHXVHRIQDWXUDODSKURGLVLDFVIRUVH[XDOLW\LQ
6HFWKHFRQYHQWLRQDOZLVGRPDERXWWKHIRRGJXLGHS\UDPLGLQWKH
86 LQ WKH V LQ 6HF WKH FRQYHQWLRQDO ZLVGRP DERXW IRRG
FKDLQV DQG HFRORJLFDO S\UDPLG LQ 6HF WKH FRQYHQWLRQDO
PDLQVWUHDP YLHZ DPRQJ DQWKURSRORJLVWV WKDW WKH LQFUHDVHV LQ KXPDQ
EUDLQVL]HRFFXUUHGZHOOEHIRUHWKHDGYHQWRIFRRNLQJGXHWRDVKLIWDZD\
IURPWKHFRQVXPSWLRQRIQXWVDQGEHUULHVWRWKHFRQVXPSWLRQRIPHDWLQ
6HF WKH FRQYHQWLRQDO ZLVGRP DERXW 0DOWKXVLDQLVP LQ WKH ROGHU
GD\V LQ 6HF WKH FRQYHQWLRQDO ZLVGRP DERXW WKH PRGHV RI
SURGXFWLRQ LQ WKH PRGHUQ HFRQRPLF HUD LQ 6HF WKH FRQYHQWLRQDO
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
ZLVGRP DERXW WKH ERXQGDU\ RI DQLPDO FRQVFLRXVQHVV LQ 6HF WKH
FRQYHQWLRQDO ZLVGRPDERXW IUR]HQIDVWIRRGFXLVLQH LQ WKH86SULRUWR
WKH &XOLQDU\ 5HYROXWLRQ LQ 6HF WKH FRQYHQWLRQDO ZLVGRP DERXW
WUDGLWLRQDO PDUNHWLQJ V\VWHPV ZKHWKHU LQ &KLQD RU WKH UHVW RI $VLD
ZKLFK SURYLGH OLWWOH PRWLYDWLRQ RU LQFHQWLYH IRU LQGLYLGXDO IDUPHUV WR
PDNH LPSURYHPHQWV WR HLWKHU TXDOLW\ RU VDIHW\ LQ 6HF WKH
FRQYHQWLRQDOZLVGRPRIPRVWDQWKURSRORJLVWVZKREHOLHYHWKDWFRRNLQJ
ILUHV EHJDQ RQO\ DERXW \HDUV DJR ZKHQ KHDUWKV VWDUWHG
DSSHDULQJ LQ 6HF WKH FRQYHQWLRQDO ZLVGRP DERXW XVLQJ
WHFKQLTXHVGHYHORSHGLQFKHPLVWU\WRVWXG\IRRGZKLFKKDVH[LVWHGIRU
PDQ\\HDUVLQGLIIHUHQWFXOWXUHVLQ6HFWKHFRQYHQWLRQDOZLVGRP
DERXW QRQYLROHQW DFWLYLVP DJDLQVW VSHFLHVHQGDQJHULQJ ZKDOLQJ DQG
ILVKLQJ SUDFWLFHV LQ 6HF WKH FRQYHQWLRQDO ZLVGRP DERXW XVLQJ
JODVVMDUVIRUIRRGSUHVHUYDWLRQE\$SSHUWLQ6HFWKHFRQYHQWLRQDO
ZLVGRP RI VHOOLQJ IDVW IRRG E\ VWUHHW YHQGRUV LQ WKH ROGHU GD\ LQ 6HF
WKH FRQYHQWLRQDO ZLVGRP DERXW IRRG SRUQ LQ WKH ROGHU GD\V LQ
6HF DQG WKH FRQYHQWLRQDO ZLVGRP DERXW UHJLRQDO FXLVLQHV LQ WKH
ROGHUGD\VLQ6HF
2Q WKH RWKHU KDQG WKHUH LV QRYHOW\ HJ WKH DOWHUQDWLYH QRYHO
FKDOOHQJH WR WKH FRQYHQWLRQDO ZLVGRP DERXW WKH XVH RI QDWXUDO
DSKURGLVLDFV IRU VH[XDOLW\ E\ WKH QHZ LGHD RI XVLQJ V\QWKHWLF RU QRQ
QDWXUDODSKURGLVLDFVLQPRGHUQWLPHVZLWKWKHODWHVWH[DPSOHVOLNHWKHXVH
RI9LDJUDLQ6HFWKHDOWHUQDWLYHQRYHOFKDOOHQJHWRWKHFRQYHQWLRQDO
ZLVGRPDERXWWKHIRRGJXLGHS\UDPLGLQWKH86LQWKHVE\WKHQHZ
LGHD RI WKH KHDOWK\ HDWLQJ S\UDPLG E\ WKH +DUYDUG 6FKRRO RI 3XEOLF
+HDOWK RU WKH KHDOLQJ IRRGV S\UDPLG E\ WKH 8QLYHUVLW\ RI 0LFKLJDQ
,QWHJUDWLYH 0HGLFLQH LQ WKH V LQ 6HF WKH DOWHUQDWLYH QRYHO
FKDOOHQJH WR WKH FRQYHQWLRQDO ZLVGRP DERXW IRRG FKDLQV DQG HFRORJLFDO
S\UDPLGE\WKHQHZLGHDWKDWDVWKHFULWLFVSRLQWRXWELRPDVVS\UDPLGV
FDQ EH PLVOHDGLQJ DQG DUELWUDU\ LQ 6HF WKH DOWHUQDWLYH QRYHO
FKDOOHQJH WR WKH FRQYHQWLRQDO PDLQVWUHDP YLHZ DPRQJ DQWKURSRORJLVWV
WKDWWKHLQFUHDVHVLQKXPDQEUDLQVL]HRFFXUUHGZHOOEHIRUHWKHDGYHQWRI
FRRNLQJGXHWRDVKLIWDZD\IURPWKHFRQVXPSWLRQRIQXWVDQGEHUULHVWR
WKHFRQVXPSWLRQRIPHDWE\WKHQHZLGHDRI5LFKDUG:UDQJKDP>@
ZKR DUJXHG WKDW FRRNLQJ H[SODLQV WKH LQFUHDVH LQ KRPLQLG EUDLQ VL]HV
DQG WKDW HDWLQJ FRRNHG IRRG LV PRUH
QDWXUDO
IRU WKH KXPDQ GLJHVWLYH
V\VWHP EHFDXVH WKH KXPDQ GLJHVWLYH V\VWHP PD\ KDYH HYROYHG WR GHDO
ZLWK FRRNHG IRRGV LQ 6HF WKH DOWHUQDWLYH QRYHO FKDOOHQJH WR WKH
FRQYHQWLRQDOZLVGRPDERXWDERXW0DOWKXVLDQLVPLQWKHROGHUGD\VE\WKH
QHZLGHDRI$PDUW\D6HQZKRDUJXHGLQVWHDGWKDWIDPLQHLVPRUHSROLWLFDO
WKDQ HFRQRPLF LQ 6HF WKH DOWHUQDWLYH QRYHO FKDOOHQJH WR WKH
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
FRQYHQWLRQDOZLVGRPDERXWWKHPRGHVRISURGXFWLRQLQWKHPRGHUQHUD
E\WKHQHZ LGHDRIJOREDOL]DWLRQQRZDGD\VLQWKHSRVWPRGHUQHUD ZKLFK
KDV SURIRXQG LPSOLFDWLRQV IRU QXWULWLRQDO VWDWXV IRU KXPDQ EHLQJV RQ D
JOREDO VFDOH LQ 6HF WKH DOWHUQDWLYH QRYHO FKDOOHQJH WR WKH
FRQYHQWLRQDOZLVGRPDERXWWKHERXQGDU\RIDQLPDOFRQVFLRXVQHVVE\WKH
QHZ LGHD RI (XJHQH /LQGHQ ZKR VXJJHVWV WKHUH DUH PDQ\ H[DPSOHV RI
DQLPDOEHKDYLRUDQGLQWHOOLJHQFHWKDWVXUSDVVZKDWSHRSOHZRXOGVXSSRVH
WREHWKHERXQGDU\RIDQLPDOFRQVFLRXVQHVVLQ6HFWKHDOWHUQDWLYH
QRYHO FKDOOHQJH WR WKH FRQYHQWLRQDO ZLVGRP DERXW IUR]HQ IDVWIRRG
FXLVLQH LQ WKH 86 E\ WKH QHZ LGHD RI WKH &XOLQDU\ 5HYROXWLRQ ZKLFK
HPSKDVL]HVRQ IUHVKORFDODQGVHDVRQDOLQJUHGLHQWVLQ6HF
WKH DOWHUQDWLYH QRYHO FKDOOHQJH WR WKH FRQYHQWLRQDO ZLVGRP DERXW
WUDGLWLRQDO PDUNHWLQJ V\VWHPV E\ WKH QHZ LGHD RI WKH 6WDWH )RRG DQG
'UXJ$GPLQLVWUDWLRQLQ&KLQDIRUIRRGVDIHW\LQ6HFWKHDOWHUQDWLYH
QRYHOFKDOOHQJHWRWKHFRQYHQWLRQDOZLVGRPDERXWPRVWDQWKURSRORJLVWV
ZKREHOLHYHWKDWFRRNLQJILUHVEHJDQRQO\DERXW\HDUVDJRE\
WKHQHZLGHDRI&KULV2UJDQ&KDUOHV1XQQ=DULQ0DFKDQGDDQG5LFKDUG
:UDQJKDP ZKR VXJJHVW WKDW FRRNLQJ PD\ KDYH EHHQ LQYHQWHG DV IDU
EDFNDVPLOOLRQWRPLOOLRQ\HDUVDJRLQ6HFWKHDOWHUQDWLYH
QRYHO FKDOOHQJH WR WKH FRQYHQWLRQDO ZLVGRP DERXW XVLQJ WHFKQLTXHV
GHYHORSHGLQFKHPLVWU\WRVWXG\IRRGE\WKHQHZLGHDRI.XUWLDQG7KLV
>@ZKRGHFLGHGWKDWDQHZRUJDQL]HGDQGVSHFLILFGLVFLSOLQHVKRXOG
EH FUHDWHG ZLWKLQ IRRG VFLHQFH WKDW LQYHVWLJDWHG WKH SURFHVVHV LQ UHJXODU
FRRNLQJ >DV IRRG VFLHQFH ZDV SULPDULO\ FRQFHUQHG ZLWK WKH QXWULWLRQDO
SURSHUWLHVRIIRRGDQGGHYHORSLQJPHWKRGVWRSURFHVVIRRGRQDQLQGXVWULDO
VFDOH@ LQ 6HF WKH DOWHUQDWLYH QRYHO FKDOOHQJH WR WKH FRQYHQWLRQDO
ZLVGRPDERXWQRQYLROHQWDFWLYLVPDJDLQVWVSHFLHVHQGDQJHULQJZKDOLQJ
DQGILVKLQJSUDFWLFHVE\WKHQHZLGHDRI6HD6KHSKHUGWRUHVRUWWRYLROHQW
WDFWLFV LQ 6HF WKH DOWHUQDWLYH QRYHO FKDOOHQJH WR WKH FRQYHQWLRQDO
ZLVGRPDERXWXVLQJJODVVMDUVIRUIRRGSUHVHUYDWLRQE\$SSHUWE\WKHQHZ
LGHD RI 'XUDQG ZKR ODWHU UHSODFHG JODVV MDUV ZLWK F\OLQGULFDO WLQ RU
ZURXJKWLURQ FDQLVWHUV LQ LQ 6HF WKH DOWHUQDWLYH QRYHO
FKDOOHQJH WR WKH FRQYHQWLRQDO ZLVGRP DERXW VHOOLQJ IDVW IRRG E\ VWUHHW
YHQGRUV LQ WKH ROGHU GD\V E\ WKH QHZ LGHD RI GULYHLQ UHVWDXUDQWV
QRZDGD\V ZKHQ DXWRPRELOHV EHFDPH SRSXODU DQG PRUH DIIRUGDEOH
IROORZLQJ WKH )LUVW :RUOG :DU LQ 6HF WKH DOWHUQDWLYH QRYHO
FKDOOHQJHWRWKHFRQYHQWLRQDOZLVGRPDERXWIRRGSRUQLQWKHROGHUGD\V
E\WKH QHZLGHDRIVLPSOHIRRGVW\OH QRZDGD\V ZKLFKLV WRSUHVHQWWKH
IRRG DV VLPSOH FOHDQ DQG QDWXUDOO\ DV SRVVLEOH DQG ZLWK OLWWOH SURSV LQ
6HFDQGWKHDOWHUQDWLYHQRYHOFKDOOHQJHWRWKHFRQYHQWLRQDOZLVGRP
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
DERXWUHJLRQDOFXLVLQHVLQWKHROGHUGD\VE\WKHQHZLGHDRIIXVLRQFXLVLQH
QRZDGD\VLQRXUDJHRIJOREDOL]DWLRQLQ6HF
$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
$JDLQLWVKRXOGEHVWUHVVHG KRZHYHUWKDWWKHUHDUHGLIIHUHQWVKDGHV
RI JUD\ RU GLIIHUHQW GHJUHHV RI WUXWK LQ WKH WZR RSSRVLWHV DQG WKH
FODVVLILFDWLRQ LV QRW QHFHVVDULO\ PXWXDOO\ H[FOXVLYH HLWKHU ,Q IDFW HYHQ
ZKHQVRPHFRPELQDWLRQVRIWKHWZRRFFXUWKH\RQO\HQG XSVKDULQJWKH
VDPHGLDOHFWLFUHODWLRQVKLSEXWLQDGLIIHUHQWGHJUHH
$OVR WKHUH DUH VRPH RWKHU UHODWLRQVKLSV DV D NLQG RI IDPLO\
UHVHPEODQFH ZKLFK KDYH VRPHWKLQJ LQ FRPPRQ ZLWK WKH SULQFLSOH EXW
WKH\ DUH QRW H[DFWO\ WKH VDPH EXW RQO\ PRUH RU OHVV FRPSDUDEOH ZKLFK
YDULHVIURPFDVHWRFDVH
*RRGH[DPSOHVRIIDPLO\UHVHPEODQFHLQUHODWLRQWRWKHSULQFLSOHDUH
FRQYHUJHQFHGLYHUJHQFH RU FRQYHUJHQW WKLQNLQJ YV GLYHUJHQW WKLQNLQJ
QRUPDOQHVVQRQQRUPDOQHVV FRQIRUPLW\QRQFRQIRUPLW\ IDPLOLDULW\
IUHVKQHVVLQHUWLDQHZQHVVDQGVRRQ
WK7KHVLV7KH(YROXWLRQ7UDQVIRUPDWLRQ3ULQFLSOH
7KHHLJKWHHQWKWKHVLVUHIHUVWRWKHHYROXWLRQWUDQVIRUPDWLRQSULQFLSOH
RQ WKH PXOWLSOH NLQGV RI DJHQF\ LQ WKH FDWHJRU\ RI DJHQF\ LQ
H[LVWHQWLDOGLDOHFWLFVZKLFKZDVILUVWZRUNHGRXWLQ)$(DQGWKHQLQRWKHU
ERRNVRIPLQH
7KLV SULQFLSOHDQG WKH V\PPHWU\DV\PPHWU\ SULQFLSOH IRU
LQVWDQFHDUHERWKDERXWDJHQF\0RUHSUHFLVHO\WKHZRUGDJHQF\LQD
IRUPDO GHILQLWLRQ UHIHUV WR D SHUVRQ RU WKLQJ WKURXJK ZKLFK SRZHU LV
H[HUWHGRUDQHQGLVDFKLHYHG0:',WWKHUHIRUHGRHVQRWKDYHWR
QHFHVVDULO\LQYROYHDQLQWHOOLJHQWOLIHIRUP
%HFDXVHRIWKLVGXDOPHDQLQJLQDJHQF\WKHHYROXWLRQWUDQVIRUPDWLRQ
SULQFLSOHLVPRUHFRQFHUQHGZLWKWKHNLQGRIDJHQF\WKDWLVERWKDERXWWKH
HYROXWLRQLQWKHVWDWHRIQDWXUHHJDQREMHFWRIQDWXUDOEHDXW\DQGWKH
WUDQVIRUPDWLRQ LQ WKH ZRUOG RI LQWHOOLJHQW OLIHIRUPV HJ D ZRUN RI DUW
7KHUHLVQRHYROXWLRQZLWKRXWWUDQVIRUPDWLRQDQGYLFHYHUVD
,Q FODVVLFDO 'DUZLQLDQ HYROXWLRQDU\ WKHRU\ DV PRUH GHWDLOHGO\
DQDO\]HG LQ %11 HYROXWLRQ LV EOLQG %XW LQ WKH KXPDQ ZRUOG FKDQJH
RIWHQ WDNHV SODFH EHFDXVH RI WKH FRQVFLRXV LQWHUYHQWLRQ RI KXPDQV LQ
WUDQVIRUPLQJVRFLHW\DQGFXOWXUHMXVWWRFLWHWZRLQVWDQFHV
$QG WKH WUDQVIRUPDWLYH SDUW RI WKH SULQFLSOH SUHFLVHO\ UHIHUV WR WKH
RWKHUGLPHQVLRQLQWKHGXDO PHDQLQJRIDJHQF\LQ JLYLQJWHFKQRORJ\DV
LQYHQWHG E\ LQWHOOLJHQW OLIHIRUPV OLNH KXPDQV DQG VRRQ SRVWKXPDQV D
PDMRU UROH WR SOD\ LQ WKH FKDQJH RI WKH ZRUOG ZKLFK LV VRPHWKLQJ WKDW ,
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
H[WHQVLYHO\DQDO\]HGLQ)+&LQWKHFRQWH[WRIWKHWHFKQRSKLOLFOLIHZRUOG
HVSHLFDOO\WKRXJKQRWH[FOXVLYHO\VLQFHPRGHUQWLPHV7KHVDPHWKHPHLV
DOVRHODERUDWHGLQPDQ\RWKHUERRNVRIPLQH
)RU LQVWDQFH RQ WKH RQH KDQG WKHUH LV HYROXWLRQ HJ WKH QDWXUDO
HYROXWLRQRIPDOHVWRKDYHHUHFWLRQLQWKHVWDWHRIQDWXUHLQ6HFWKH
QDWXUDO HYROXWLRQ RI KXPDQV WR FRQVXPH ZKDW ZDV IRXQG LQ WKH VWDWH RI
QDWXUHLQDSULPLWLYHZD\LQ6HFWKHQDWXUDOHYROXWLRQRIRUJDQLVPV
WR OLYH DW WKHLU VSHFLILF WURSKLF OHYHOV LQ WKH VWDWH RI QDWXUHLQ6HF
WKH QDWXUDO HYROXWLRQ RI KXPDQV WR KDYH WKH LQFUHDVHV LQ KXPDQ EUDLQ
VL]HZHOO EHIRUH WKH DGYHQW RI FRRNLQJ GXH WR D VKLIW DZD\ IURP WKH
FRQVXPSWLRQ RI QXWV DQG EHUULHV WR WKH FRQVXPSWLRQ RI PHDW LQ 6HF
WKHQDWXUDOHYROXWLRQRIKXPDQVWRUHSURGXFHLQWKHVWDWHRIQDWXUHLQ
D SULPLWLYH ZD\ LQ 6HF WKH QDWXUDO HYROXWLRQ RI KXPDQV WR JDWKHU
ZLOGSODQWVDQGNLOOZLOGDQLPDOVLQWKHVWDWHRIQDWXUHLQDSULPLWLYHZD\
DV LQ IRUDJLQJ LQ 6HF WKH QDWXUDO HYROXWLRQ RI KXPDQV WR IROORZ
DQLPDOLQVWLQFWVLQWKHVWDWHRIQDWXUHLQDSULPLWLYHZD\LQ6HFWKH
QDWXUDOHYROXWLRQRIKXPDQVWRHQJDJHLQIRUDJLQJLQWKHVWDWHRIQDWXUHLQ
DSULPLWLYHZD\LQ6HFWKHQDWXUDOHYROXWLRQRIKXPDQVWRGHSHQG
RQHDWLQJZLOGSODQWVLQWKHVWDWHRIQDWXUHLQDSULPLWLYHZD\LQ6HF
WKHQDWXUDOHYROXWLRQRIKXPDQVWRHDWZLOGSODQWVLQWKHVWDWHRIQDWXUHLQD
SULPLWLYH ZD\LQ6HFWKHQDWXUDOHYROXWLRQRI KXPDQVWRHDW ZKDW
WKH\ IRXQG LQ WKH VWDWH RI QDWXUH DQG OHDUQHG WKURXJK WLPH ZKLFK IRRGV
ZHQW ZHOO WRJHWKHU DOEHLW LQ D SULPLWLYH ZD\ LQ 6HF WKH QDWXUDO
HYROXWLRQ RI KXPDQV WR NLOO DQLPDOV IRU IRRG LQ WKH VWDWH RI QDWXUH LQ D
SULPLWLYH ZD\LQ6HFWKHQDWXUDOHYROXWLRQRIKXPDQVWRXVHIRRG
XQWLO LW VSRLOV LQ WKH VWDWH RI QDWXUH LQ D SULPLWLYH ZD\ LQ 6HF WKH
QDWXUDOHYROXWLRQRI KXPDQVWRHDWE\IRUDJLQJLQWKHVWDWHRIQDWXUHLQD
SULPLWLYHZD\LQ6HFWKHQDWXUDOHYROXWLRQRIKXPDQVWRHQMR\WKH
YLVXDOEHDXW\RIGLIIHUHQWIRRGVLQWKHVWDWHRIQDWXUHLQDSULPLWLYHZD\LQ
6HFDQGWKHQDWXUDOHYROXWLRQRIKXPDQVWRFKRRVHLQJUHGLHQWVDQG
WHFKQLTXHV IRU IRRG SUHSDUDWLRQ ZKLFK DUH VXLWDEOH WR WKHLU ORFDO
HQYLURQPHQWVLQWKHVWDWHRIQDWXUHLQDSULPLWLYHZD\LQ6HF
2Q WKH RWKHU KDQG WKHUH LV WUDQVIRUPDWLRQ HJ WKH WHFKQLFDO
WUDQVIRUPDWLRQ RI PDOHV WR KDYH HUHFWLRQ E\ WKH LQYHQWLRQ RI 9LDJUD DQG
/HYLWUD LQ 6HF WKH WHFKQLFDO WUDQVIRUPDWLRQ RI KXPDQ DELOLW\ WR
FRQVXPHE\WKHLQYHQWLRQRIWKHVFLHQWLILFVWXGLHVRIGLIIHUHQWIRRGJURXSV
OLNH WKRVH UHFRPPHQGHG E\ GLIIHUHQW IRRG JXLGH S\UDPLGV QRZDGD\V LQ
6HF WKH WHFKQLFDO WUDQVIRUPDWLRQ RI KXPDQV WR XQGHUVWDQG WKHLU
VSHFLILFWURSKLFOHYHOVLQQDWXUHE\WKHLQYHQWLRQRIWKHVWXGLHVDERXWIRRG
FKDLQDQGHFRORJLFDOS\UDPLGLQ6HFWKHWHFKQLFDOWUDQVIRUPDWLRQRI
KXPDQ DELOLW\ WR SURFHVV IRRG E\ WKH LQYHQWLRQ RI PLFURZDYH LQ 6HF
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
WKH WHFKQLFDO WUDQVIRUPDWLRQ RI KXPDQ DELOLW\ WR UHSURGXFH E\ WKH
LQYHQWLRQ RI SRSXODWLRQ FRQWURO VWUDWHJLHV LQ 6HF WKH WHFKQLFDO
WUDQVIRUPDWLRQ RI KXPDQ DELOLW\ WR SURGXFH E\ WKH LQYHQWLRQ RI
LQGXVWULDOLVPDQGQRZDGD\VJOREDOL]DWLRQLQ6HFWKHWHFKQLFDO
WUDQVIRUPDWLRQRI KXPDQDELOLW\WRJREH\RQGWKHDQLPDOLQVWLQFWVE\WKH
LQYHQWLRQRIFXOWXUHLQQRYDWLRQDQGWKHVXEOLPDWLRQRILQVWLQFWLQRUGHUWR
DFW LQ DQ HWKLFDO PDQQHU LQ 6HF WKH WHFKQLFDO WUDQVIRUPDWLRQ RI
KXPDQ DELOLW\ WR VHOHFW LQJUHGLHQWV IRU IRRG E\ WKH LQYHQWLRQ RI FXLVLQH
OLNH&DOLIRUQLDFXLVLQHLQWKHVDQGVLQ6HFWKHWHFKQLFDO
WUDQVIRUPDWLRQ RI KXPDQ DELOLW\ WR FRRN VDIHO\ E\ WKH LQYHQWLRQ RI
GLIIHUHQWIRRGVDIHW\JXLGHOLQHVOLNHFRRNLQJFRQWUROIRRGK\JLHQHHWFLQ
6HF WKH WHFKQLFDO WUDQVIRUPDWLRQ RI KXPDQ DELOLW\ WR HDW E\ WKH
LQYHQWLRQ RI FRRNLQJ ZKLFK ZDV ODWHU IXUWKHU DGYDQFHG ZLWK WKH
GHYHORSPHQW RI DJULFXOWXUH FRPPHUFH DQG WUDQVSRUWDWLRQ EHWZHHQ
FLYLOL]DWLRQV LQ GLIIHUHQW UHJLRQV LQ 6HF WKH WHFKQLFDO
WUDQVIRUPDWLRQ RI KXPDQ DELOLW\ WR XQGHUVWDQG ZKLFK IRRGV JR ZHOO
WRJHWKHU E\ WKH LQYHQWLRQ RI IRRG VFLHQFH OLNH WKH V\VWHPDWLF VFLHQWLILF
VWXG\ RI IRRG SDLULQJ LQ 6HF WKH WHFKQLFDO WUDQVIRUPDWLRQ RI
KXPDQ DELOLW\ WR NLOO DQLPDOV E\ WKH LQYHQWLRQ RI DQLPDO ULJKWV VR DV WR
GHFLGHLGHRORJLFDOO\ ZKLFKDQLPDOVWRNLOODQG ZKLFKRQHVQRWWRLQ6HF
WKH WHFKQLFDO WUDQVIRUPDWLRQ RI KXPDQ DELOLW\ WR XVH IRRG E\ WKH
LQYHQWLRQ RI FDQQLQJ IRU IRRG SUHVHUYDWLRQ LQ 6HF WKH WHFKQLFDO
WUDQVIRUPDWLRQ RI KXPDQ DELOLW\ WR HDW E\ WKH LQYHQWLRQ RI WKH IDVW IRRG
LQGXVWU\ LQ RXU WLPH RI JOREDOL]DWLRQ LQ 6HF WKH WHFKQLFDO
WUDQVIRUPDWLRQ RI KXPDQ DELOLW\ WR HQMR\ WKH YLVXDO EHDXW\ RI GLIIHUHQW
IRRGV E\ WKH LQYHQWLRQ RI IRRG SKRWRJUDSK\ LQ 6HF DQG WKH
WHFKQLFDO WUDQVIRUPDWLRQ RI KXPDQ DELOLW\ WR FKRRVH LQJUHGLHQWV DQG
WHFKQLTXHVIRUIRRGSUHSDUDWLRQE\WKHLQYHQWLRQRIIXVLRQFXLVLQHVZKLFK
DOORZVLQJUHGLHQWVDQGWHFKQLTXHVWREHLPSRUWHGIURPWKHRXWVLGHWKURXJK
H[WHQVLYHWUDGHLQWKHDJHRIJOREDOL]DWLRQLQ6HF
$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
$JDLQLWVKRXOGEHVWUHVVHG KRZHYHUWKDWWKHUHDUHGLIIHUHQWVKDGHV
RI JUD\ RU GLIIHUHQW GHJUHHV RI WUXWK LQ WKH WZR RSSRVLWHV DQG WKH
FODVVLILFDWLRQ LV QRW QHFHVVDULO\ PXWXDOO\ H[FOXVLYH HLWKHU ,Q IDFW HYHQ
ZKHQVRPHFRPELQDWLRQVRIWKHWZRRFFXUWKH\RQO\HQG XSVKDULQJWKH
VDPHGLDOHFWLFUHODWLRQVKLSEXWLQDGLIIHUHQWGHJUHH
$OVR WKHUH DUH VRPH RWKHU UHODWLRQVKLSV DV D NLQG RI IDPLO\
UHVHPEODQFH ZKLFK KDYH VRPHWKLQJ LQ FRPPRQ ZLWK WKH SULQFLSOH EXW
WKH\ DUH QRW H[DFWO\ WKH VDPH EXW RQO\ PRUH RU OHVV FRPSDUDEOH ZKLFK
YDULHVIURPFDVHWRFDVH
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
*RRGH[DPSOHVRIIDPLO\UHVHPEODQFHLQUHODWLRQWRWKHSULQFLSOHDUH
LQRUJDQLFQHVVYROLWLRQ
QDWXUDOQHVVWHFKQRORJLFDOQHVV
QDWXUDOQHVV
QRQQDWXUDOQHVV QRQZLOOLQJQHVVZLOOLQJQHVV LQRUJDQLFQHVVPRWLYDWLRQ
HYROXWLRQFUHDWLRQQDWXUDOQHVVDUWLILFLDOQHVVDQGVRRQ
WK7KHVLV7KH6\PPHWU\$V\PPHWU\3ULQFLSOH
7KHQLQHWHHQWKWKHVLVLVODEHOHGDVWKHV\PPHWU\DV\PPHWU\SULQFLSOH
RQ WKH UHODWLRQVKLSV DPRQJ H[LVWHQWV LQ WKH FDWHJRU\ RI DJHQF\ LQ
H[LVWHQWLDOGLDOHFWLFVZKLFK ZDVDOVRDOUHDG\ ZRUNHGRXW LQ P\SUHYLRXV
ERRNVLQWKDWWKHUHLVQRDV\PPHWU\ZLWKRXWV\PPHWU\DQGYLFHYHUVD
)RULQVWDQFHWKH6DPHFDQEHV\PPHWULFDQGDV\PPHWULFWRZDUGVWKH
2WKHUV%XWLQFDVHRIDV\PPHWU\DVDQDO\]HGLQ%'3'RSSUHVVLRQDQG
VHOIRSSUHVVLRQFDQRFFXU6R ZKHQWKH6DPHLVDV\PPHWULFWRZDUGVWKH
2WKHUVWKH6DPHFDQDOVREHUHODWLYHO\DV\PPHWULFWRZDUGVLWVHOILQVHOI
RSSUHVVLRQ MXVW DV WKH 2WKHUV FDQ EH OLNHZLVH WRZDUGV WKHPVHOYHV 7KH
VXEVHTXHQW RSSUHVVLYHQHVV LV GXDOLVWLF DV PXFK E\ WKH 6DPH DJDLQVW WKH
2WKHUVDQGLWVHOIDVE\WKH2WKHUVDJDLQVWWKH6DPHDQGWKHPVHOYHV%RWK
RSSUHVVLRQ DQG VHOIRSSUHVVLRQ FDQ EH DFKLHYHG E\ ZD\ RI GRZQJUDGLQJ
GLIIHUHQFHVEHWZHHQWKH6DPHDQGWKH2WKHUVDQGRIDFFHQWXDWLQJWKHP
7KLVLVWUXHHYHQWKRXJKQRWDOOIRUPVRIDV\PPHWU\KDYHWREHDERXW
RSSUHVVLRQDQGVHOIRSSUHVVLRQ
,QDGGLWLRQIURP&KDSWHU7KUHHRI)3+*V\PPHWU\LVQRWSHUIHFWWR
EH XQGHUVWRRG LQ DQ DSSUR[LPDWH VHQVH XQGHU PDQ\ OLIH FLUFXPVWDQFHV
:LWKWKLVFODULILFDWLRQLQPLQGKHUHDIWHUDUHVRPHHPSLULFDOH[DPSOHV
)RULQVWDQFHRQWKHRQHKDQGWKHUHLVV\PPHWU\HJWKHH[LVWHQFHRI
GLIIHUHQW ZD\V WR KDYH VH[XDO HUHFWLRQ LQ 6HF WKH H[LVWHQFH RI
GLIIHUHQW ZD\V WR XQGHUVWDQG IRRG JURXSV IRU FRQVXPSWLRQ LQ 6HF
WKH H[LVWHQFH RI GLIIHUHQW WURSKLF OHYHOV LQ HFRORJLFDO S\UDPLG LQ 6HF
WKH H[LVWHQFH RI EUDLQ VL]HV DPRQJ KXPDQV DQG DQLPDOV ZLWK WKH
FRQVXPSWLRQ RI PHDW LQ 6HF WKH H[LVWHQFH RI GLIIHUHQW FODVVHV LQ
VRFLHW\ LQ 6HF WKH H[LVWHQFH RI GLIIHUHQW HFRQRPLHV OLNH WKH
UHFLSURFDO JLIW H[FKDQJH FRPSHWLWLYH JLIW H[FKDQJH DQG LPSHUVRQDO
PDUNHW H[FKDQJH LQ 6HF WKH H[LVWHQFH RI GLIIHUHQW DQLPDOV RQ
HDUWK LQ 6HF WKH H[LVWHQFH RI GLIIHUHQW FXLVLQHV LQ 6HF WKH
H[LVWHQFH RI GLIIHUHQW VRFLDO DJHQWV OLNH $XVWUDOLDQ )RRG $XWKRULW\ IRRG
EXVLQHVVHVFRQVXPHUVHWFLQ6HFWKHH[LVWHQFHRIGLIIHUHQWIRUPV
RILQWHOOLJHQWOLIHOLNHEDFWHULDDQGKXPDQVLQ6HFWKHH[LVWHQFHRI
GLIIHUHQWFRQWULEXWRUVWRWKH ILHOGRIPROHFXODUJDVWURQRP\LQ6HF
WKHH[LVWHQFHRIGLIIHUHQWJURXSVWRHQJDJHLQPDULQHFRQVHUYDWLRQLQ6HF
WKHH[LVWHQFHRIGLIIHUHQWZD\VWRSUHVHUYHIRRGOLNHWKHXVHRIJODVV
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
MDUV DQG FDQV LQ 6HF WKH FRH[LVWHQFH RI GLIIHUHQW UHVWDXUDQWV LQ
6HF WKH H[LVWHQFH RI GLIIHUHQW WUHQGV RI IRRG SKRWRJUSK\ LQ 6HF
DQG WKH H[LVWHQFH RI GLIIHUHQW YHUVLRQV RI IXVLRQ FXLVLQH LQ 6HF
2QWKHRWKHUKDQGWKHUHLVDV\PPHWU\HJWKHSRSXODULW\RIKDYLQJ
QDWXUDO HUHFWLRQ LQ WKH ROGHU GD\VEXW WKH DSSHDO RI KDYLQJ VH[XDO
HUHFWLRQZLWKWKHKHOSRI9LDJUDQRZDGD\VLQ6HFWKHSRSXODULW\RI
WKH6FDQGLQDYLDQIRRGJXLGHS\UDPLGLQWKHVEXWWKHSRSXODULW\RI
WKH $PHULFDQ IRRG JXLGH S\SUDPLG QRZDGD\V LQ 6HF KXPDQV FDQ
FRQVXPHWKRVHDWWKHORZHUWURSKLFOHYHOVEXWWKRVHDWWKHORZHVWWURSKLF
OHYHOWKDWLVWKHSURGXFHUVFDQQRWFRQVXPHKXPDQVLQ6HFKXPDQ
EUDLQ LV PRUH SRZHUIXO WKDQ WKH EUDLQV RI RWKHU DQLPDOV LQ WHUPV RI WKH
WHFKQRORJLHV WKDW WKH IRUPHU KDV EHHQ DEOH WR FUHDWH LQ KLVWRU\ VXFK WKDW
WKH KXPDQ VSHFLHV EHFRPH WKH GRPLQDQW RQH RQ HDUWK QRZDGD\V LQ 6HF
WKHULFKDUHPRUHOLNHO\WKDQWKHSRRUWRVXUYLYHUHSURGXFHDQGEH
ZHOOIHG LQ 6HF LPSHUVRQDO PDUNHW H[FKDQJH LV WKH PRVW
GRPLQDQW VRFLDO UHODWLRQV QRZDGD\V LQ RXU DJH RI JOREDOL]DWLRQ ZKHQ
FRQWUDVWHG ZLWK WKH UHFLSURFDO JLIW H[FKDQJH DQG FRPSHWLWLYH JLIW
H[FKDQJHLQ6HFKXPDQVFDQPDVVFRQVXPHDQLPDOVLQDZD\WKDW
DQLPDOVFDQQRWGRWKHVDPHWRKXPDQVQRZDGD\VLQ6HF&DOLIRUQLD
FXLVLQH LV PRUH LQIOXHQWLDO LQ FRQWHPSRUDU\ $PHULFD WKDQ VD\ 0LGGOH
(DVWHUQ FXLVLQH LQ 6HF $XVWUDOLDQ )RRG $XWKRULW\ FDQ IRUFH IRRG
EXVLQHVVHV E\ UHJXODWRU\ HQIRUFHPHQWV WR FRPSO\ ZLWK GLIIHUHQW
JXLGHOLQHVWRHQVXUHIRRGLVVDIHWRFRQVXPHUVLQ6HFKXPDQVFDQ
NLOO PRUH EDFWHULD WKDQ EDFWHULD FDQ NLOO KXPDQV LQ WHUPV RI DEVROXWH
QXPEHUV LQ 6HF WKH ZRUNV RI 1LFKRODV .XUWL DQG +HUYp 7KLV DUH
PRUH LQIOXHQWLDO WKDQ WKRVH RI RWKHUV OLNH (YHO\Q * +DOOLGD\ ,VDEHO 7
1REOH %HOOH /RZH 0DULH$QWRLQH &DUrPH HWF LQ 6HF 6HD
6KHSKHUGLVPRUHYLROHQFHSURQHWKDQ*UHHQSHDFHLQ6HFFDQVDUH
FKHDSHU DQG TXLFNHU WR PDNH DQG PXFK OHVV IUDJLOH WKDQ JODVV MDUV VR
WKH\ DUH PRUH ZLGHO\ XVHG QRZDGD\VEXW JODVV MDUV KDYH UHPDLQHG
SRSXODUIRUVRPHKLJKYDOXHSURGXFWVLQ6HFWKHIDVWIRRGLQGXVWU\
LV QRZ GRPLQDWHG E\ D IHZ XQLIRUP IUDQFKLVHV DV SRLQWHG RXW E\
6FKORVVHULQ6HFWKHSRSXODULW\RIIRRGSRUQLQWKHROGHUGD\V
EXWWKHSRSXODULW\RIVLPSOHIRRGVW\OHQRZDGD\VZKLFKLVWRSUHVHQWWKH
IRRG DV VLPSOH FOHDQ DQG QDWXUDOO\ DV SRVVLEOH DQG ZLWK OLWWOH SURSV LQ
6HFDQGWKRVHYHUVLRQVZKLFKPHHWWKHUHTXLUHPHQWVRIWKHIDFWRUV
RIVXFFHVVDIRUHFLWHGEHFRPHPRUHLQIOXHQWLDOWKDQWKRVHZKLFKGRQRWLQ
6HF
$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
$JDLQIRUWKHODVWWLPHLWVKRXOGEHVWUHVVHGKRZHYHUWKDWWKHUHDUH
GLIIHUHQWVKDGHVRIJUD\RUGLIIHUHQWGHJUHHVRIWUXWKLQWKHWZRRSSRVLWHV
DQGWKHFODVVLILFDWLRQLVQRWQHFHVVDULO\PXWXDOO\H[FOXVLYHHLWKHU,QIDFW
HYHQZKHQVRPHFRPELQDWLRQVRIWKHWZRRFFXUWKH\RQO\HQGXSVKDULQJ
WKHVDPHGLDOHFWLFUHODWLRQVKLSEXWLQDGLIIHUHQWGHJUHH
$OVR WKHUH DUH VRPH RWKHU UHODWLRQVKLSV DV D NLQG RI IDPLO\
UHVHPEODQFH ZKLFK KDYH VRPHWKLQJ LQ FRPPRQ ZLWK WKH SULQFLSOH EXW
WKH\ DUH QRW H[DFWO\ WKH VDPH EXW RQO\ PRUH RU OHVV FRPSDUDEOH ZKLFK
YDULHVIURPFDVHWRFDVH
*RRGH[DPSOHVRIIDPLO\UHVHPEODQFHLQUHODWLRQWRWKHSULQFLSOHDUH
EDODQFHH[WUHPLW\ UHIOH[LYHQHVVXQUHIOH[LYHQHVV HTXDOLW\LQHTXDOLW\
KDUPRQLRXVQHVVXQKDUUPRQLRXVQHVV FHQWHUSHULSKHU\ FRPSDWLELOLW\
LQFRPSDWLELOLW\ SURSRUWLRQGLVSURSRUWLRQ EDODQFHXQEDODQFH DQG
VRPHWKLQJOLNHWKDW
WK7KHVLV7KH6RIWQHVV+DUGQHVV3ULQFLSOH
7KH WZHQWLHWK WKHVLV UHIHUV WR WKH VRIWQHVVKDUGQHVV SULQFLSOH RQ WKH
IRUFH RI FKDQJH LQ WKH FDWHJRU\ RI DJHQF\ LQ H[LVWHQWLDO GLDOHFWLFV
ZKLFKZDVILUVWZRUNHGRXWLQ$/'LQWKDWDQ\FKDQJHE\DQDJHQWEHLW
RUJDQLFOLNHKXPDQVRUQRQRUJDQLFOLNHQDWXUDOREMHFWVFDQRFFXULQD
IRUFHIXODJJUHVVLYHRUJHQWOHSDFLILFZD\ZKLFKFDQFRPHLQDOOVKDSHV
DQG VL]HV RI FRXUVH 7KHUH LV QR VRIWQHVV ZLWKRXW KDUGQHVVDQG YLFH
YHUVD
)RU LQVWDQFH RQ WKH RQH KDQG WKHUH LV VRIWQHVV HJ WKH UHODWLYH
VRIWQHVVRIWKHSHQLVLQWKHVWDWHRIVKULQNDJHDIWHUHUHFWLRQLQ6HF
WKHDSSUHFLDWLRQRIWKHIRRGJXLGHS\UDPLGE\WKHDGYRFDWHVLQWKH86'$
LQ 6HF SLJV FDQ PDNH ORYH ZLWK HDFK RWKHU LQ 6HF WKH
FRQVXPSWLRQ RI QXWV ZLWKRXW WKH QHHG WR NLOO DQ DQLPDO LQ 6HF
FKDULW\WRWKHSRRULQ6HFWKHSUDFWLFHRIFRRSHUDWLRQLQJDWKHULQJ
ZLOG SODQWV LQ WKH PRGH RI SURGXFWLRQ NQRZQ DV IRUDJLQJ LQ 6HF
FRZV DQG ODPEV ERWK VHHN DQG HQMR\ SOHDVXUH ZKHQ WKH\ OLH ZLWK WKHLU
KHDGVUDLVHGWRWKHVXQRQDSHUIHFW(QJOLVKVXPPHU
VGD\LQ6HF
WKH SUDLVH RI :DWHUV E\ 7RZHUV LQ 6HF WKH EDVLF IRRG VDIHW\
WUDLQLQJLQ$XVWUDOLDLQ6HFWKHDSSUHFLDWLRQRIFRRNLQJEHFDXVHRI
WKHFRQFHUQZLWKIRRGVDIHW\LQ6HFWKHDSSOLFDWLRQRIIRRGSDLULQJ
ZKHQQHZDQGXQH[SHFWHGFRPELQDWLRQVVXFKDVVWUDZEHUULHVSDLUHGZLWK
SHDVZHUHDGRSWHGE\6DQJ+RRQ'HJHLPEUHFKHIRI/$LUGXWHPSVLQ
%HOJLXP LQ 6HF WKH UHODWLYHO\ OHVV YLROHQW WDFWLFV E\ VRPH
HQYLURQPHQWDO JURXSV OLNH *UHHQSHDFH LQ 6HF WKH DSSUHFLDWLRQ RI
FDQQLQJDVVKRZQLQLWVVSUHDGDIWHU::,LQ6HFWKHJORULILFDWLRQ
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
RI IDVW IRRG E\ 0F'RQDOGV LQ 6HF WKH VHOHFWLRQ RI IRRG LWHPV
ZKLFKDUHWKHPRVWYLVXDOO\SHUIHFWIRUIRRGSKRWRJUDSK\LQ6HF
DQG FOLHQWHOH
V FXOLQDU\ ZLOOLQJ WR WU\ QHZ HDWLQJ H[SHULHQFHV LQ 6HF
2QWKHRWKHUKDQGWKHUHLVKDUGQHVVHJWKHUHODWLYHKDUGQHVVRIWKH
SHQLVLQWKHVWDWHRIHUHFWLRQHVSHFLDOO\ZLWKWKHKHOSRI9LDJUDLQ6HF
WKH FULWLTXH RI WKH IRRG JXLGH S\UDPLG E\ WKRVH ZKR SURSRVH
DOWHUQDWLYHRQHVLQ6HFKXPDQVFDQNLOODQGHDWSLJVLQ6HF
WKHFRQVXPSWLRQRIPHDWZLWKWKHQHHGWRNLOODQDQLPDOILUVWLQ6HF
WKHGHDWKRIPDQ\SRRUGXHWRNLOOLQJLQZDULQ6HFWKHSUDFWLFHRI
YLROHQFHE\ VRPH KRUWLFXOWXUDOVRFLHWLHV ZKLFK ILHUFHO\ GHIHQGFXUUHQW
WHUULWRULHVDQGSUDFWLFHYLROHQFHDJDLQVWQHLJKERULQJJURXSVLQ6HF
WLJHU ZRXOG QRW UHIUDLQ IURP HDWLQJ DQ DQLPDO VLQFH LW ZRXOG GHFLGH
ZKHWKHU WR DWWDFN EDVHG RQ ZKDW LW IHOW ZRXOG DOORZ LW WR VXUYLYH LQ
6HF WKH FULWLTXH RI :DWHUV E\ 7RZHUV LQ 6HF SHRSOH
UHVSRQVLEOHIRUVHUYLQJXQVDIHIRRGFDQEHOLDEOHIRUKHDY\ILQHVXQGHUWKLV
QHZ OHJLVODWLRQ LQ $XVWUDOLD LQ 6HF WKH FULWLTXH RI FRRNLQJ
EHFDXVHRIWKHFRQFHUQZLWKFDQFHUULVNLQ6HFWKHFULWLTXHRIIRRG
SDLULQJ DV VKRZQ LQ WKH SUREOHPV SRLQWHG RXW E\ WKH FULWLFV DV FLWHG LQ
6HF WKH UHODWLYHO\ PRUH YLROHQW WDFWLFV E\ VRPH HQYLURQPHQWDO
JURXSVOLNH6HD6KHSKHUGLQ6HFWKHFULWLTXHRIFDQQLQJDVVKRZQ
LQ WKH SUREOHPV SRLQWHG RXW E\ WKH FULWLFV DV FLWHG LQ 6HF WKH
FULWLTXHRIIDVWIRRGE\6FKORVVHULQ6HFWKHUHMHFWLRQRIIRRGLWHPV
IRUIRRGSKRWRJUDSK\OLNHWKRVHZKLFKDUHGHFD\LQJRUORRNXJO\LQ6HF
DQG FOLHQWHOH
V FXOLQDU\ XQZLOOLQJ WR WU\ QHZ HDWLQJ H[SHULHQFHV
RWKHUWKDQWKRVHRIWKHLURZQUHJLRQDOFXLVLQHLQ6HF
$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
$JDLQLWVKRXOGEHVWUHVVHG KRZHYHUWKDWWKHUHDUHGLIIHUHQWVKDGHV
RI JUD\ RU GLIIHUHQW GHJUHHV RI WUXWK LQ WKH WZR RSSRVLWHV DQG WKH
FODVVLILFDWLRQ LV QRW QHFHVVDULO\ PXWXDOO\ H[FOXVLYH HLWKHU ,Q IDFW HYHQ
ZKHQVRPHFRPELQDWLRQVRIWKHWZRRFFXUWKH\RQO\HQG XSVKDULQJWKH
VDPHGLDOHFWLFUHODWLRQVKLSEXWLQDGLIIHUHQWGHJUHH
$OVR WKHUH DUH VRPH RWKHU UHODWLRQVKLSV DV D NLQG RI IDPLO\
UHVHPEODQFH ZKLFK KDYH VRPHWKLQJ LQ FRPPRQ ZLWK WKH SULQFLSOH EXW
WKH\ DUH QRW H[DFWO\ WKH VDPH EXW RQO\ PRUH RU OHVV FRPSDUDEOH ZKLFK
YDULHVIURPFDVHWRFDVH
*RRGH[DPSOHVRIIDPLO\UHVHPEODQFHLQUHODWLRQWRWKHSULQFLSOHDUH
SHDFHIXOQHVVYLROHQFH FRRSHUDWLRQFRPSHWLWLRQ SDFLILFLW\DJJUHVVLRQ
GRYLVKQHVVKDZNLVKQHVV UHZDUGSXQLVKPHQW SHDFHZDU IULHQGOLQHVV
XQIULHQGOLQHVV NLQGQHVVKRVWLOLW\ ORYHKDWUHG DFFHSWDQFHGLVFULPLQDWLRQ
DGPLUDWLRQEHOLWWOHPHQWLQFOXVLRQH[FOXVLRQDQGWKHOLNH
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
VW7KHVLV7KH6HULRXVQHVV3OD\IXOQHVV3ULQFLSOH
7KHWZHQW\ILUVWWKHVLVUHIHUV WRWKHVHULRXVQHVVSOD\IXOQHVVSULQFLSOH
RQ WKH H[WHQW RI VHULRXVQHVV LQ WKH FDWHJRU\ RI DJHQF\ LQ H[LVWHQWLDO
GLDOHFWLFV ZKLFK LV ILUVW ZRUNHG RXW LQ )3++ LQ WKDW LI WKHUH LV
VHULRXVQHVVWKHUHLVDOVRSOD\IXOQHVVHVSHFLDOO\ IRUDQ\DJHQW ZLWK VRPH
NLQG RI LQWHOOLJHQFH OLIH EH LW DERXW KXPDQV DQLPDOV RU ODWHU SRVW
KXPDQV7KHUHLVQRVHULRXVQHVVZLWKRXWSOD\IXOQHVVDQGYLFHYHUVD
/HVWDQ\PLVXQGHUVWDQGLQJRFFXUVWKHZRUGSOD\IXOQHVVKHUHVKRXOG
QRW EH FRQIXVHG ZLWK RWKHU WHUPV OLNH ODXJKWHU VPLOH MRNH
WLFNOHQHVVDQGODXJKOLNHYRFDOL]DWLRQLQVRPHDQLPDOVIRULQVWDQFH
%HLQJ SOD\IXO FDQ FRPH LQ DOO VKDSHV DQG VL]HV DQG WKHUHIRUH LV QRW
QHFHVVDULO\WLHGXSZLWKDQ\RIWKHVHWHUPVDOKRXJKLWFDQUHVXOWIURPDQ\
RIWKHPRUDFRPELQDWLRQRIWKHPRUVRPHWKLQJHOVHDOWRJHWKHU
7KLVSULQFLSOHWRJHWKHUZLWKVRPHRWKHUSULQFLSOHVHVSHFLDOO\WKRXJK
QRW H[FOXVLYHO\ OLNH WKH IRUPDOQHVVLQIRUPDOQHVV SULQFLSOH KDYH
LPSRUWDQW LPSOLFDWLRQV IRU ZKDW FRQVWLWXWHV UDWLRQDOLW\ EH LW DERXW
UDWLRQDOLW\ RI DSSOLFDWLRQ DW WKH SUDFWLFDO OHYHO RU UDWLRQDOLW\ RI
NQRZOHGJH DW WKH PHWDWKHRUHWLFDO OHYHO DV VXPPDUL]HG LQ 6HF RI
)3++
)RU LQVWDQFH RQ WKH RQH KDQG WKHUH LV VHULRXVQHVV HJ WKH
VHULRXVQHVV RI WKRVH LQGLYLGLXDOV ZKHQ WKH\ GR QRW XVH DSKURGLVLDFV DQG
DUHLQDVREHUVWDWHZLWKRXWVH[XDOLW\LQ6HFWKHVHULRXVEXVLQHVVRI
WKRVH UHVHDUFKHUV ZKR WU\ WR VWXG\ WKH ULJKW EDODQFH RI GLIIHUHQW IRRG
JURXSV IRU FRQVXPSWLRQ LQ 6HF WKH VHULRXV EXVLQHVV RI WKH
UHVHDUFKHUV WR XQGHUVWDQG IRRG FKDLQV DQG HFRORJLFDO S\UDPLG LQ 6HF
WKHVHULRXVEXVLQHVVRIWKRVHZKRWU\WRXQGHUVWDQGUDZIRRGGLHWV
LQ 6HF WKH VHULRXV EXVLQHVV RI WKRVH ZKR WU\ WR XQGHUVWDQG IRRG
VHFXULW\DQGRYHUSRSXODWLRQLQ6HFWKHVHULRXVEXVLQHVVRIWKRVHWR
XQGHUVWDQGODQGGHJUDGDWLRQLQ6HFWKHVHULRXVEXVLQHVVRIWKRVHLQ
+LQGXLVP WR DGYRFDWH QRQYLROHQFH IRU YHJHWDULDQLVP LQ 6HF WKH
VHULRXVEXVLQHVVRIWKRVHLQ&DOLIRUQLDFXLVLQHWRILQGRXWZKDWJRRGIRRG
LV LQ 6HF WKH VHULRXV EXVLQHVV RI WKRVH IRU IRRG VDIHW\ WR SUHYHQW
IRRG SRLVRQLQJ LQ 6HF WKH VHULRXV EXVLQHVV RI WKRVH ZKR WU\ WR
XQGHUVWDQGWKHUHODWLRQVKLSVEHWZHHQFRRNLQJDQGKHDOWKLQ6HFWKH
VHULRXVEXVLQHVVRIWKRVHZKRWU\WRXQGHUVWDQGWKHREMHFWLYHVRIPROHFXODU
JDVWURQRP\LQ6HFWKHVHULRXVEXVLQHVVRI6HD6KHSKHUGWRHQJDJH
LQPDULQHFRQVHUYDWLRQLQ6HFWKHVHULRXVEXVLQHVVRIWKRVHZKRWU\
WR XQGHUVWDQG WKH QDWXUH RI IRRG SUHVHUYDWLRQ LQ 6HF WKH VHULRXV
EXVLQHVVRIWKRVHZKRSURYLGHIDVWIRRGIRUVDOHLQ6HFWKHVHULRXV
EXVLQHVV RI IRRG VW\OLVWV ZKR WU\ WR FRPH XS ZLWK GLIIHUHQW QHZ IRRG
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
VW\OHV LQ 6HF DQG WKH VHULRXV EXVLQHVV RI WKRVH LQ IXVLRQ FXLVLQH
ZKRWU\QHZHDWLQJH[SHULHQFHVLQ6HF
2QWKHRWKHUKDQGWKHUHLVSOD\IXOQHVVHJWKHSOD\IXOSDUWRIWKRVH
LQGLYLGXDOVZKHQVWLPXODWHGE\DSKURGLVLDFVLQ6HFWKHSOD\IXOSDUW
RI WKRVH UHVHDUFKHUV ZKR WU\ WR VWXG\ WKH ULJKW EDODQFH RI GLIIHUHQW IRRG
JURXSV IRU FRQVXPSWLRQ ZKHQ WKH\ SOD\ DURXQG ZLWK GLIIHUHQW YHUVLRQV
RYHU WKH GHFDGHV DV VKRZQ LQ WKH 6FDQGLQDYLDQ IRRG JXLGH S\UDPLG WKH
:+2 IRRG JXLGH S\UDPLG WKH $PHULFDQ IRRG JXLGH S\SUDPLG DQG WKH
DOWHUQDWLYHRQHVDIRUHFLWHGLQ6HFWKHSOD\IXOSDUWRIWKHUHVHDUFKHUV
WRXQGHUVWDQGIRRGFKDLQVDQGHFRORJLFDOS\UDPLGZKHQWKH\SOD\DURXQG
ZLWK GLIIHUHQW GHVLJQDWLRQV RI RUJDQLVPV LQ D S\UDPLG RI SURGXFWLYLW\
RYHU WLPH ZKLFK IRU WKH FULWLFV FDQ EH VRPHZKDW DUELWUDU\ DQG
PLVOHDGLQJLQ6HFWKHSOD\IXOSDUWRIWKRVH ZKRWU\WRXQGHUVWDQG
UDZ IRRG GLHWV ZKHQ WKH\ SOD\ DURXQG ZLWK GLIIHUHQW YHUVLRQV RI UDZ
IRRGLVP DQG GLIIHUHQW EHOLHIV LQ UDZ IRRGLVP PDQ\ RI ZKLFK KDYH EHHQ
FULWLFL]HGE\WKHFULWLFVLQ6HFWKHSOD\IXOSDUWRIWKRVHZKRWU\WR
XQGHUVWDQGIRRGVHFXULW\DQGRYHUSRSXODWLRQZKHQWKH\SOD\DURXQGZLWK
GLIIHUHQW YHUVLRQV RI 0DOWKXVLDQLVP RYHU WLPH VR DV WR UHVSRQG WR
KLVWRULFDOFKDQJHVRYHUWLPHDQGWKHLUFKDOOHQJHVLQ6HFWKHSOD\IXO
SDUWRIWKRVHWRXQGHUVWDQGODQGGHJUDGDWLRQZKHQWKH\SOD\DURXQGZLWK
GLIIHUHQWGHILQLWLRQVGHSHQGLQJLQODUJHSDUWRQWKHVFKRODURUVWDNHKROGHU
LQ TXHVWLRQ DV SRLQWHG RXW E\ %ODNLH DQG %URRNILHOG LQ 6HF WKH
SOD\IXO SDUW RI WKRVH LQ +LQGXLVP WR DGYRFDWH QRQYLROHQFH IRU
YHJHWDULDQLVPZKHQWKH\SOD\DURXQGZLWKGLIIHUHQWZD\VWRSUDFWLFHWKH
IRRGKDELWVZKLFKYDU\ZLWKWKHFRPPXQLW\DQGUHJLRQDQGHYHQIURP
VHFW WR VHFW LQ 6HF WKH SOD\IXO SDUW RI WKRVH LQ &DOLIRUQLD FXLVLQH
ZKHQWKH\SOD\DURXQGZLWKGLIIHUHQWLQJUHGLHQWVDQGGLIIHUHQWGLVSDUDWH
FRRNLQJVW\OHVIURPPXOWLSOHHYHQFRQIOLFWLQJVRXUFHVLQ6HFWKH
SOD\IXOSDUWRIWKRVHIRUIRRGVDIHW\WRSUHYHQWIRRGSRLVRQLQJZKHQWKH\
SOD\ZLWKGLIIHUHQWFRQIOLFWLQJJXLGHOLQHVDQGUHJXODWRU\HQIRUFHPHQWVDV
GHVFULEHGLQWKHDUWLFOHDIRUHFLWHGLQ6HFWKHSOD\IXOSDUWRIWKRVH
ZKRWU\WRXQGHUVWDQGWKHUHODWLRQVKLSVEHWZHHQFRRNLQJDQGKHDOWKZKHQ
WKH\SOD\DURXQGZLWKGLIIHUHQWUHVHDUFKVWXGLHVZKLFKFDQEHLQFRQOXVLYH
DQG LQFRQVLVWHQW ZLWK HDFK RWKHU LQ 6HF WKH SOD\IXO SDUW RI WKRVH
ZKRWU\WR XQGHUVWDQGWKHREMHFWLYHVRI PROHFXODU JDVWURQRP\DV VKRZQ
LQ WKH GLIIHUHQW GHILQLWLRQV E\ 7KLV RYHU WLPH OLNH KLV VWLSXDWLRQ RI
REMHFWLYHV DW WKH EHJLQQLQJ DQG ODWHU RQ REMHFWLYHV LQVWHDG LQ 6HF
WKHSOD\IXOSDUWRI6HD6KHSKHUGWRHQJDJHLQPDULQHFRQVHUYDWLRQ
ZKHQLWSOD\VDURXQGZLWKOLEHOLQJDQGIDOVHKRRGWRDWWUDFWPHGLDDWWHQWLRQ
LQ6HFWKHSOD\IXOSDUWRIWKRVHZKRWU\WRXQGHUVWDQGWKHQDWXUHRI
IRRGSUHVHUYDWLRQZKHQWKH\SOD\HGDURXQGZLWKGLIIHUHQWWHFKQLTXHVRYHU
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
WLPHOLNHJODVVMDUVFDQVVLQJOHVHDPVGRXEOHVHDPVHWFLQ6HF
WKH SOD\IXO SDUW RI WKRVH ZKR SURYLGH IDVW IRRG IRU VDOH ZKHQ WKH\ SOD\
DURXQGZLWKGLIIHUHQWYDULDQWVDQGRXWOHWVRIIDVWIRRGRYHUWKHFHQWXULHVLQ
6HF WKH SOD\IXO SDUW RI IRRG VW\OLVWV ZKHQ WKH\ SOD\ DURXQG ZLWK
GLIIHUHQW QHZ IRRG VW\OHV RYHU WLPH DV VKRZQ LQ WKH ULVH DQG IDOO RI
GLIIHUHQWIRRGVW\OHWUHQGVRYHUWLPHLQ6HFDQGWKHSOD\IXOSDUWRI
WKRVHLQ IXVLRQFXLVLQH ZKHQWKH\SOD\DURXQG ZLWKGLIIHUHQWLQJUHGLHQWV
DQGWHFKQLTXHV IURPGLIIHUHQWFXLVLQHVRYHUWLPHDVVKRZQLQWKHULVHRI
GLIIHUHQWYHUVLRQVLQWKHDUWLFOHDIRUHFLWHGLQ6HF
$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
$JDLQLWVKRXOGEHVWUHVVHG KRZHYHUWKDWWKHUHDUHGLIIHUHQWVKDGHV
RI JUD\ RU GLIIHUHQW GHJUHHV RI WUXWK LQ WKH WZR RSSRVLWHV DQG WKH
FODVVLILFDWLRQ LV QRW QHFHVVDULO\ PXWXDOO\ H[FOXVLYH HLWKHU ,Q IDFW HYHQ
ZKHQVRPHFRPELQDWLRQVRIWKHWZRRFFXUWKH\RQO\HQG XSVKDULQJWKH
VDPHGLDOHFWLFUHODWLRQVKLSEXWLQDGLIIHUHQWGHJUHH
$OVR WKHUH DUH VRPH RWKHU UHODWLRQVKLSV DV D NLQG RI IDPLO\
UHVHPEODQFH ZKLFK KDYH VRPHWKLQJ LQ FRPPRQ ZLWK WKH SULQFLSOH EXW
WKH\ DUH QRW H[DFWO\ WKH VDPH EXW RQO\ PRUH RU OHVV FRPSDUDEOH ZKLFK
YDULHVIURPFDVHWRFDVH
*RRGH[DPSOHVRIIDPLO\UHVHPEODQFHLQUHODWLRQWRWKHSULQFLSOHDUH
VHULRXVQHVVMRNLQJQHVV VHULRXVQHVVKXPRURXVQHVV VHULRXVQHVVZLWWLQHVV
VHULRXVQHVVQRQVHULRXVQHVV $SROOR'LRQ\VXV VHULRXVQHVVUHVWLQJQHVV
VHULRXVQHVVUHOD[HGQHVVVHULRXVQHVVFORZQLVKQHVVDQGVRIRUWK
QG7KHVLV7KH$FWLYHQHVV,QDFWLYHQHVV3ULQFLSOH
7KH WZHQW\VHFRQG WKHVLV UHIHUV WR WKH DFWLYHQHVVLQDFWLYHQHVV
SULQFLSOH RQ WKH H[WHQW RI DFWLYHQHVV LQ WKH FDWHJRU\ RI DJHQF\ LQ
H[LVWHQWLDOGLDOHFWLFVZKLFKZDVILUVWZRUNHGRXWLQ)3+75$1LQWKDWLI
WKHUH LV DFWLYHQHVV WKHUH LV DOVR LQDFWLYHQHVV HVSHFLDOO\ WKRXJK QRW
H[FOXVLYHO\IRUDQ\DJHQWZLWKVRPHNLQGRILQWHOOLJHQFHOLIHEHLWDERXW
KXPDQV DQLPDOV RU ODWHU SRVWKXPDQV 7KHUH LV QR DFWLYHQHVV ZLWKRXW
LQDFWLYHQHVVDQGYLFHYHUVD
%HLQJDFWLYHFDQFRPHLQDOOVKDSHVDQGVL]HVMXVWDVDSHUVRQRUDQ
DQLPDOFDQEHLQDFWLYHEHFDXVHKHRULWLVWLUHGROGLQMXUHGVLFNVOHHS\
RUKLEHUQDWLQJXQLQWHUHVWHGLQDVWDWHRISDVVLYHLQHUWLDRUGLVSRVLWLRQ
HWFDQG DQ REMHFW FDQ EH LQDFWLYH EHFDXVH LW LV DW UHVW RXW RI ZRUN RU
RUGHUHWF
7KLVSULQFLSOHWRJHWKHUZLWKVRPHRWKHUSULQFLSOHVHVSHFLDOO\WKRXJK
QRW H[FOXVLYHO\ OLNH WKH IRUPDOQHVVLQIRUPDOQHVV SULQFLSOH DQG
VHULRXVQHVVSOD\IXOQHVV SULQFLSOH KDYH LPSRUWDQW LPSOLFDWLRQV IRU ZKDW
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
FRQVWLWXWHV UDWLRQDOLW\ EH LW DERXW UDWLRQDOLW\ RI DSSOLFDWLRQ DW WKH
SUDFWLFDOOHYHORUUDWLRQDOLW\RINQRZOHGJHDWWKHPHWDWKHRUHWLFDOOHYHO
DVVXPPDUL]HGLQ6HFRI)3++
)RU LQVWDQFH RQ WKH RQH KDQG WKHUH LV DFWLYHQHVV HJ WKH K\SHU
DOHUWQHVVRIWKRVHZKRDUHVWLPXODWHGE\DSKURGLVLDFVOLNHFRFDLQHZKLFKLV
DVVRFLDWHGZLWKK\SHUDURXVDOLQ6HFWKHDFWLYHQHVVRIWKRVHZKRHDW
KHDOWK\IRRGDQGVWD\ILWLQ6HFWKHDOHUWQHVVRIWKRVHRUJDQLVPVDW
WKHORZHUWURSKLFOHYHOVWRGRWKHLUEHVWWRDYRLGEHLQJHDWHQLQ6HF
WKH DFWLYHQHVV RI WKRVH ZKR FDQ ZRUN EHFDXVH WKH\ DUH KHDOWK\ GXH WR
JRRGQXWULWLRQLQ6HFWKRVHZKRDUHZHOOIHGKDYHHQHUJ\WRZRUN
LQ6HFWKHDFWLYHQHVVRIWKRVHZKRZHUHKHDOWK\HQRXJKWRZRUNDV
VKRZQ E\ WKRVH $PHULQGLDQV SULRU WR WKH LQIHFWLRXV GLVHDVH RIWHQ
SUHFHGLQJ DQG IDFLOLWDWLQJ VXEVHTXHQW FRQTXHVW E\ (XURSHDQ SRZHUV LQ
WKHHDUO\PRGHUQHUDLQ6HFWKHDFWLYHQHVVRIWKRVHZKRDUHUHDG\
WR NLOO IRU IRRG ZLWKRXW DQ\ HWKLFV RI HDWLQJ PHDW LQ 6HF WKH
DFWLYHQHVVRIWKRVHFKHIVDW&KH]3DQLVVHZKRZRUNHGWKHUHIRU&DOLIRUQLD
FXLVLQHRYHUWKH\HDUVLQ6HFWKHDFWLYHQHVVRIWKRVHLQ86'$ZKR
FDUU\ RXW WKH UHJXODWRU\ HQIRUFHPHQWV IRU IRRG VDIHW\ LQ 6HF WKH
DFWLYHQHVVRIWKRVHEDFWHULDWRFDXVHSRLVRQLQJLQIRRGZKHQWKH\VXUYLYH
FRRNLQJ LQ 6HF WKH DFWLYHQHVV RI WKRVH ZKR FDQ ZRUN LI WKH\ HDW
IRRGVZKLFKJRZHOOWRJHWKHUFKHPLFDOO\DQGGRQRWJHWVLFNLQ6HF
WKH DFWLYHQHVV RI WKRVH ILVKLQJ ERDWV ZKLFK DUH QRW GDPDQJHG E\
HQYLRUQPHQWDO JURXSV DQG FDQ HQJDJH LQ NLOOLQJ ILVK LQ 6HF WKH
DFWLYHQHVV RI PLFURRUJDQLVPV OLNH & ERWXOLQXP ZKLFK FDQ JURZ LQ
FDQQHG IRRGV LQ 6HF WKH DFWLYHQHVV RI WKRVH LPPLJUDQW ODERUHUV
ZKR ZRUN IRU WKH PHDW SDFNLQJ LQGXVWU\ LQ WKH 86 LQ 6HF WKH
DFWLYHQHVVRIWKRVHFDPHUDVZKLFKZRUNZHOOIRUIRRGSKRWRJUDSK\LQ6HF
DQGWKHDFWLYHQHVVRIWKRVH ZKR ZDQWWRNQRZ VRPHWKLQJ QHZE\
WU\LQJWRXVHGLIIHUHQWLQJUHGLHQWVDQGWHFKQLTXHVIURPGLIIHUHQWFXLVLQHV
LQ6HF
2QWKHRWKHUKDQGWKHUHLVLQDFWLYHQHVVHJWKHUHODWLYHLQDFWLYHQHVV
RI WKRVH ZKR DUH WLUHG DIWHU K\SHUVH[XDOLW\ DQG WKHQ IDOO DVOHHS LQ 6HF
WKH UHODWLYH LQDFWLYHQHVV RI WKRVH ZKR DUH VLFN EHFDXVH WKH\ HDW
XQKHDOWK\IRRGDQGGRQRWH[HUFLVHLQ6HFWKHUHODWLYHLQDFWLYHQHVV
RIWKRVHRUJDQLVPVDWWKHORZHUWURSKLFOHYHOVZKLFKDUHWLUHGVOHHS\VLFN
RUROGZKHQWKH\EHFRPHYXOHUDEOHWREHHDWHQLQ6HFWKHUHODWLYH
LQDFWLYHQHVVRIWKRVHZKRDUHVLFNGXHWRIRRGSRLVRQLQJIURPUDZIRRG
GLHWV LQ 6HF WKH UHODWLYH LQDFWLYHQHVV RI WKRVH ZKR DUH WLUHG DQG
VLFN EHFDXVH RI PDOQXWUWLRQ LQ 6HF WKH UHODWLYH LQDFWLYHQHVV RI
WKRVH $PHULQGLDQV ZKR ZHUH WRR WLUHG VLFN RU ROG ZKHQ WKH\ VXIIHUHG
IURP WKH GHFLPDWLRQWKURXJK LQIHFWLRXV GLVHDVH RIWHQ SUHFHGLQJ DQG
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
IDFLOLWDWLQJVXEVHTXHQWFRQTXHVWE\(XURSHDQSRZHUVLQWKHPRGHUQHUD
LQ 6HF WKH UHODWLYH LQDFWLYHQHVV RI WKRVH ZKR EHOLHYH LQ D VURQJ
HWKLFVRIHDWLQJPHDWDQGWKHUHIRUHFDQQRWNLOOIRUIRRGLQ6HFWKH
UHODWLYH LQDFWLYHQHVV RI WKRVH FKHIV OLNH WKRVH SHHUV RI 7RZHUV IURP
&KH]3DQLVVHZKRKDGUHWLUHGDQGKDGVLQFHJRQHRQWRRWKHUYHQWXUHV
QRWUHODWHGWR&DOLIRUQLDFXLVLQHLQ6HFWKHUHODWLYHLQDFWLYHQHVVRI
WKRVHLQ86'$ZKR\LHOGWRIRRGLQGXVWU\SUHVVXUHDQGUHIXVHWRFDUU\
RXWWKHUHJXODWRU\HQIRUFHPHQWVIRUIRRGVDIHW\LQ6HFWKHUHODWLYH
LQDFWLYHQHVV RI WKRVH EDFWHULD WR FDXVH SRLVRQLQJ LQ IRRG ZKHQ WKH\ DUH
GDPDJHG RU GLH GXH WR WKH KHDW RI FRRNLQJ LQ 6HF WKH UHODWLYH
LQDFWLYHQHVVRIWKRVHZKRDUHVLFNLQWKHVWRPDFKEHFDXVHWKH\HDWIRRGV
ZKLFK GR QRW JR ZHOO WRJHWKHU DQG VXIIHU IURP IRRG SRLVRQLQJ LQ 6HF
WKH UHODWLYH LQDFWLYHQHVV RI WKRVH ILVKLQJ ERDWV ZKLFK DUH VXQN RU
GDPDJHGE\HQYLRUQPHQWDOJURXSVVRWKDWWKH\FDQQRWHQJDJHLQNLOOLQJ
ILVK IRU IRRG LQ 6HF WKH UHODWLYH LQDFWLYHQHVV RI PLFURRUJDQLVPV
OLNH & ERWXOLQXP ZKLFK FDQQRW JURZ LQ FDQQHG IRRGV LI WKH\ ZHQW
WKURXJK WKH SURFHVV RI VWHULOL]DWLRQ WKDW LV WR EH HOLPLQDWHG DW
WHPSHUDWXUHV DERYH WKH ERLOLQJ SRLQW LQ 6HF WKH UHODWLYH
LQDFWLYHQHVV RI WKRVH LPPLJUDQW ODERUHUV ZKR FDQQRW ZRUN IRU WKH PHDW
SDFNLQJ LQGXVWU\ LQ WKH 86 EHFDXVH WKH\ JHW LQMXUHG RQ WKH MRE VLQFH
OHYHOVRILQMXU\>LQWKHLQGXVWU\@DUHDPRQJWKHKLJKHVWRIDQ\RFFXSDWLRQ
LQWKH8QLWHG6WDWHVDVIRXQGRXWE\6FKORVVHULQ6HFWKHUHODWLYH
LQDFWLYHQHVVRIWKRVHFDPHUDVZKLFKDUHGHIHFWLYHVRWKDWWKH\FDQQRWEH
XVHG IRUIRRGSKRWRJUDSK\LQ6HFDQGWKHUHODWLYH LQDFWLYHQHVVRI
WKRVH ZKR DUH IXOO\ FRQWHQWHG ZLWK WKHLU UHJLRQDO FXLVLQH DQG DUH QRW
ZLOOLQJ WR PL[ ZLWK GLIIHUHQW LQJUHGLHQWV DQG WHFKQLTXHV IURP GLIIHUHQW
FXLVLQHVLQ6HF
$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
$JDLQLWVKRXOGEHVWUHVVHG KRZHYHUWKDWWKHUHDUHGLIIHUHQWVKDGHV
RI JUD\ RU GLIIHUHQW GHJUHHV RI WUXWK LQ WKH WZR RSSRVLWHV DQG WKH
FODVVLILFDWLRQ LV QRW QHFHVVDULO\ PXWXDOO\ H[FOXVLYH HLWKHU ,Q IDFW HYHQ
ZKHQVRPHFRPELQDWLRQVRIWKHWZRRFFXUWKH\RQO\HQG XSVKDULQJWKH
VDPHGLDOHFWLFUHODWLRQVKLSEXWLQDGLIIHUHQWGHJUHH
$OVR WKHUH DUH VRPH RWKHU UHODWLRQVKLSV DV D NLQG RI IDPLO\
UHVHPEODQFH ZKLFK KDYH VRPHWKLQJ LQ FRPPRQ ZLWK WKH SULQFLSOH EXW
WKH\ DUH QRW H[DFWO\ WKH VDPH EXW RQO\ PRUH RU OHVV FRPSDUDEOH ZKLFK
YDULHVIURPFDVHWRFDVH
*RRGH[DPSOHVRIIDPLO\UHVHPEODQFHLQUHODWLRQWRWKHSULQFLSOHDUH
DOHUWQHVVXQDOHUWQHVV DFWLYHQHVVGHFUHSLGQHVV DOHUWQHVVVOHHSLQHVV
DFWLYHQHVVWLUHGQHVV DOHUWQHVVXQZDUHQHVV DOHUWQHVVXQLQWHUHVWHGQHVV
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
UG7KHVLV7KH6HOIQHVV2WKHUQHVV3ULQFLSOH
7KH WZHQW\WKLUG WKHVLV UHIHUV WR WKH VHOIQHVVRWKHUQHVV SULQFLSOH RQ
WKH PDJQLWXGH RI VHOIFHQWHUHGQHVV LQ WKH FDWHJRU\ RI DJHQF\ LQ
H[LVWHQWLDOGLDOHFWLFVZKLFKLVILUVWZRUNHGRXWLQ)3+&$LQWKDWLIWKHUH
LV WKH WHQGHQF\ WR EH PRVWO\ FHQWHUHG RQ RQHV VHOI RU JURXS WKHUH LV
OLNHZLVHWKHWHQGHQF\WREHPRVWO\FHQWHUHGRQRWKHUVHVSHFLDOO\WKRXJK
QRW H[FOXVLYHO\ IRU DQ\ DJHQW ZLWK VRPH NLQG RI LQWHOOLJHQFH OLIH EH LW
DERXW KXPDQV DQLPDOV RU ODWHU SRVWKXPDQV 7KHUH LV QR VHOIQHVV
ZLWKRXWRWKHUQHVVDQGYLFHYHUVD
%HLQJ VHOIFHQWHUHG DQG EHLQJ RWKHUFHQWHUHG GR QRW KDYH WR EH
PXWXDOO\ H[FOXVLYH DV WKH WZR FDQ FRPH LQ DOO VKDSHV DQG VL]HV RU LQ
GLIIHUHQWGHJUHHV$QGRWKHUFHQWHUHGQHVVGRHVQRWHQWDLOGHVLUDELOLW\DQ\
PRUHWKDQVHOIFHQWHUHGQHVVLPSOLHVQRQGHVLUDELOLW\DVERWKFDQJRHLWKHU
ZD\
,Q DGGLWLRQ ZKHWKHU VHOIFHQWHUHGQHVV FRQVWLWXWHV D PRUDO DOWHUQDWLYH
RU FRQYHUVHO\ DQ DOWHUQDWLYH WR PRUDOLW\ LV RI FRXUVH GHEDWDEOH DV
DGGUHVVHGLQP\RWKHUERRNWLWOHG%H\RQG(WKLFVWR3RVW(WKLFV
)RULQVWDQFHRQWKHRQHKDQGWKHUHLVVHOIQHVVHJWKHWHQGHQF\WR
EH PRVWO\ FHQWHUHG RQ RQHV VHOI RU JURXS DV VKRZQ LQ WKH XVH RI
DSKURGLVLDFVOLNH9LDJUDWRVXVWDLQHUHFWLRQLQ6HFWKHWHQGHQF\WR
EH PRVWO\ FHQWHUHG RQ RQHV VHOI RU JURXS DV VKRZQ E\ WKH PLON
FRPSDQLHV ZKLFK SURPRWH WKHLU PLON SURGXFWV GHFHSWLYHO\ LQ 6HF
WKH WHQGHQF\ WR EH PRVWO\ FHQWHUHG RQ RQHV VHOI RU JURXS DV VKRZQ LQ
GLIIHUHQW RUJDQLVPV ZKLFK WU\ WR HDW WKRVH DW WKH ORZHU WURSKLF OHYHOV IRU
VXUYLYDOLQ6HFWKHWHQGHQF\WREHPRVWO\FHQWHUHGRQRQHVVHOIRU
JURXSDVVKRZQE\WKRVHZKRNLOODQLPDOVWRHDWPHDWUDZRUFRRNHGLQ
6HF WKH WHQGHQF\ WR EH PRVWO\ FHQWHUHG RQ RQHV VHOI RU JURXS DV
VKRZQ LQ WKH FDOO E\ VRFLDO HOLWHV WR UHVWULFWPDUULDJH DJDLQVW SHUVRQV
VXIIHULQJSRYHUW\DQGRUGHIHFWVLQ6HFWKHWHQGHQF\WREHPRVWO\
FHQWHUHGRQRQHVVHOIRUJURXSDVVKRZQLQWKH(XURSHDQFRORQL]DWLRQRI
WKH ZRUOG LQ WKH PRGHUQ HUD LQ 6HF WKH WHQGHQF\ WR EH PRVWO\
FHQWHUHGRQRQHVVHOIRUJURXSDVVKRZQE\WKRVHZKRDUHZLOOLQJWRNLOO
DQLPDOV IRU IRRG LQ 6HF WKH WHQGHQF\ WR EH PRVWO\ FHQWHUHG RQ
RQHVVHOIRUJURXSDVVKRZQLQWKHULYDOULHVDPRQJGLIIHUHQWOHDGHUVOLNH
:DWHUVDQG7RZHULQWKH&XOLQDU\5HYROXWLRQLQ6HFWKHWHQGHQF\
WREHPRVWO\FHQWHUHGRQRQHVVHOIRUJURXSDVVKRZQE\WKRVHLQIRRG
LQGXVWU\ IRU LQGXVWU\ SUHVVXUH EHFDXVH WKH\ FDUHV PRUH DERXW SURILWV
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
WKDQ DERXW IRRG VDIHW\ IRU FRQVXPHUV LQ 6HF WKH WHQGHQF\ WR EH
PRVWO\FHQWHUHGRQRQHVVHOIRUJURXSDVVKRZQLQSDUDVLWHV ZKLFKFDQ
EH LQWURGXFHG WKURXJK VDODG PHDW WKDW LV XQFRRNHG RU GRQH UDUH DQG
XQERLOHGZDWHULQ6HFWKHWHQGHQF\WREHPRVWO\FHQWHUHGRQRQHV
VHOI RU JURXS DV VKRZQ LQ WKH GHVLUHV RI .XUWL DQG 7KLV WR SURPRWH
WKHPVHOYHV DV WKH IRXQGHUV RI PROHFXODU JDVWURQRP\ LQ 6HF WKH
WHQGHQF\WREHPRVWO\FHQWHUHGRQRQHVVHOIRUJURXSDVVKRZQE\WKRVH
LQ ILVKLQJ ERDWV WR NLOO ZKDOHV LQ 6HF WKH WHQGHQF\ WR EH PRVWO\
FHQWHUHG RQ RQHV VHOI RU JURXS DV VKRZQ LQ WKH GHVLUH RI WKH )UHQFK
PLOLWDU\ ZKHQ GXULQJ WKH ILUVW \HDUV RI WKH 1DSROHRQLF :DUV WKH\
RIIHUHG D KHIW\ FDVK DZDUG RI IUDQFV WR DQ\ LQYHQWRU ZKR FRXOG
GHYLVHDFKHDSDQGHIIHFWLYHPHWKRGRISUHVHUYLQJODUJHDPRXQWVRIIRRG
VRDVWRH[SDQG)UHQFKPLOLWDU\FDPSDLJQVWRDOOVHDVRQVLQ6HF
WKHWHQGHQF\WREHPRVWO\FHQWHUHGRQRQHVVHOIRUJURXSDVVKRZQLQWKH
JUHHG\SUDFWLFHE\WKHPHDWSDFNLQJLQGXVWU\LQWKH86WRH[SORLWFKHDS
LPPLJUDQWODERULQ6HFWKHWHQGHQF\WREHPRVWO\FHQWHUHGRQRQHV
VHOI RU JURXS DV VKRZQ LQ WKH PDQLSXODWLRQ E\ IRRG SKRWRJUDSKHUV ZKR
VKRRWIRRGSKRWRVIRUDGYHUWLVHPHQWLQ6HFDQGWKHWHQGHQF\WREH
PRVWO\FHQWHUHGRQRQHVVHOIRUJURXSDVVKRZQE\WKRVHDGYRFDWHVRID
SDUWLFXODUUHJLRQDOFXLVLQHZKRFRQVLGHUWKHLUVDVWKHEHVWLQ6HF
2QWKHRWKHUKDQGWKHUHLVRWKHUQHVVHJWKHWHQGHQF\WREHPRVWO\
FHQWHUHGRQRWKHUVDVVKRZQLQWKHVWXGLHVDERXWWKHQHJDWLYHVLGHHIIHFWV
RI DSKURGLVLDFV E\ UHVHDUFKHUV LQ WKH PHGLFDO FRPPXQLW\ IRU WKH
DGYDQFHPHQW RI PHGLFDO NQRZOHGJH LQ 6HF WKH WHQGHQF\ WR EH
PRVWO\FHQWHUHGRQRWKHUVDVVKRZQLQWKHUHVHDUFKHUVZKRWU\WRFRPHXS
ZLWKDPRUHVFLHQWLLILFXQGHUVWDQGLQJRIIRRGJURXSVIRUFRQVXPSWLRQLQ
6HFWKHWHQGHQF\WREHPRVWO\FHQWHUHGRQRWKHUVDVVKRZQLQVRPH
RUJDQLVPV ZKLFK FDQ VDFULILFH WKHPVHOYHV IRU RWKHUV OLNH LQFOXVLYH
ILWQHVVLQWKHHYROXWLRQRIDOWUXLVPLQWKHVWDWHRIQDWXUHLQ6HFWKH
WHQGHQF\ WR EH PRVWO\ FHQWHUHG RQ RWKHUV DV VKRZQ E\ WKRVH ZKR IDYRU
UDZ YHJDQLVP IRU D PRUH KXPDQH UHODWLRQVKLS ZLWK WKH HFRV\VWHP
LQFOXGLQJ QRW NLOOLQJ DQLPDOV IRU PHDW FRQVXPSWLRQ LQ 6HF WKH
WHQGHQF\ WR EH PRVWO\ FHQWHUHG RQ RWKHUV DV VKRZQ LQ WKH SROLF\ RI
FKDULW\ WR WKH SRRU E\ D EHQHYROHQW JRYHUQPHQW LQ 6HF WKH
WHQGHQF\WREHPRVWO\FHQWHUHGRQRWKHUVDVVKRZQLQWKHDFDGHPLFTXHVW
E\ VRPH UHVHDUFKHUV IRU D PRUH REMHFWLYH DFFRXQW RI JOREDOL]DWLRQ DV D
FRQWULEXWLRQWRZRUOGNQRZOHGJHLQ6HFWKHWHQGHQF\WREHPRVWO\
FHQWHUHG RQ RWKHUV DV VKRZQ E\ WKRVH ZKR DGYRFDWH DQLPDO FRPSDVVLRQ
IRUDQLPDOOLEHUDWLRQLQ6HFWKHWHQGHQF\WREHPRVWO\FHQWHUHGRQ
RWKHUVDVVKRZQLQWKHJHQHURVLW\RI7RZHUZKRKDVRIWHQFUHGLWHG$OLFH
:DWHUVZLWKWKHLQYHQWLRQRIWKHWKHQ
QHZ
VW\OHRI
&DOLIRUQLD&XLVLQH
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
LQ6HFWKHWHQGHQF\WREH PRVWO\FHQWHUHGRQRWKHUVDVVKRZQE\
WKRVHIHZJRRGUHJXODWRUVLQ86'$ZKRWU\WRUHVLVWLQGXVWU\SUHVVXUH
E\FDUU\LQJRXWWKHUHJXODWRU\HQIRUFHPHQWVIRUWKHFRPPRQJRRGLQ6HF
WKH WHQGHQF\ WR EH PRVWO\ FHQWHUHG RQ RWKHUV DV VKRZQ LQ VRPH
JRRGGRLQJ EDFWHULD DQG RWKHU PLFURRUJDQLVPV WKDW DIIHFW WKH LPPXQH
V\VWHPDQGGLJHVWLRQE\SRSXODWLQJWKHGLJHVWLYHWUDFWZLWKEHQHILFLDOJXW
IORUD LQ 6HF WKH WHQGHQF\ WR EH PRVWO\ FHQWHUHG RQ RWKHUV DV
VKRZQ LQ VRPH UHVHDUFKHUV ZKR WU\ WR EH IDLU WR DOO E\ LQFOXGLQJ DOO
UHOHYDQWFRQWULEXWRUVIRUWKHDGYDQFHPHQWRIFXOLQDU\NQRZOHGJHZLWKRXW
REVHVVLYHO\ IRFXVLQJ RQ D IHZ PDMRU VFKRODUV RQO\ LQ 6HF WKH
WHQGHQF\ WR EH PRVWO\ FHQWHUHG RQ RWKHUV DV VKRZQ E\ WKH DGYRFDWHV RI
LQWHUQDWLRQDO FRQVHUYDWLRQ ODZV DQG LQWHUQDWLRQDO PDULWLPH ODZ IRU WKH
FRPPRQ JRRG RI KXPDQLW\ LQ 6HF WKH WHQGHQF\ WR EH PRVWO\
FHQWHUHGRQRWKHUVDVVKRZQE\WKHPHGLFDOUHVHDUFKHUVZKRSRLQWHGRXW
WKHKHDOWKKD]DUGVRIFDQQLQJIRUWKHDGYDQFHPHQWRIPHGLFDONQRZOHGJH
LQ 6HF WKH WHQGHQF\ WR EH PRVWO\ FHQWHUHG RQ RWKHUV DV VKRZQ LQ
VRPHUHVHDUFKHUVZKRZDQWWRILQGRXWWKHJUHHG\PDOSUDFWLFHRIWKHPHDW
SDFNLQJLQGXVWU\LQWKH86IRUWKHIXUWKHUHQKDQFHPHQWRIVRFLDOZHOIDUH
LQ6HFWKHWHQGHQF\WREH PRVWO\FHQWHUHGRQRWKHUVDVVKRZQE\
WKH UHVHDUFKHUV ZKR LQYHVWLJDWH WKH LOOV RI IRRG SKRWRJUDSK\ LQ
DGYHUWLVLQJWRUDLVHSXEOLFDZDUHQHVVLQ6HFDQGWKHWHQGHQF\WR
EH PRVWO\ FHQWHUHG RQ RWKHUV DV VKRZQ LQ WKH DFDGHPLF UHVHDUFKHUV RQ
FXOLQDU\ DUW WR SURYLGH D VFKRODUO\ XQGHUVWDQGLQJ RI WKH QDWXUH RI JOREDO
FXLVLQHVDQGWKHLU IXWXUHLQWKHDJHRIJOREDOL]DWLRQIRUWKHDGYDQFHPHQW
RIKXPDQNQRZOHGJHLQ6HF
$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
$JDLQLWVKRXOGEHVWUHVVHG KRZHYHUWKDWWKHUHDUHGLIIHUHQWVKDGHV
RI JUD\ RU GLIIHUHQW GHJUHHV RI WUXWK LQ WKH WZR RSSRVLWHV DQG WKH
FODVVLILFDWLRQ LV QRW QHFHVVDULO\ PXWXDOO\ H[FOXVLYH HLWKHU ,Q IDFW HYHQ
ZKHQVRPHFRPELQDWLRQVRIWKHWZRRFFXUWKH\RQO\HQG XSVKDULQJWKH
VDPHGLDOHFWLFUHODWLRQVKLSEXWLQDGLIIHUHQWGHJUHH
$OVR WKHUH DUH VRPH RWKHU UHODWLRQVKLSV DV D NLQG RI IDPLO\
UHVHPEODQFH ZKLFK KDYH VRPHWKLQJ LQ FRPPRQ ZLWK WKH SULQFLSOH EXW
WKH\ DUH QRW H[DFWO\ WKH VDPH EXW RQO\ PRUH RU OHVV FRPSDUDEOH ZKLFK
YDULHVIURPFDVHWRFDVH
*RRGH[DPSOHVRIIDPLO\UHVHPEODQFHLQUHODWLRQWRWKHSULQFLSOHDUH
HJRLVWLFQHVVDOWUXLVWLFQHVV VHOILVKQHVVXQVHOILVKQHVV VHOIQHVVVHOIOHVVQHVV
HJRFHQWULFQHVVRWKHUFHQWULFQHVVDQGVRRQ
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
,Q5HODWLRQWR2XWFRPH
7KH QH[W IRXU WKHVHV DUH LQ UHODWLRQ WR RXWFRPH LQ H[LVWHQWLDO
GLDOHFWLFVDVVKRZQEHORZ
WK7KHVLV7KH5HJUHVVLRQ3URJUHVVLRQ3ULQFLSOH
7KHWZHQW\IRXUWKWKHVLVLVFDOOHGWKHUHJUHVVLRQSURJUHVVLRQSULQFSOH
RQ WKH GLUHFWLRQ RI KLVWRU\ LQ WKH FDWHJRU\ RI RXWFRPH LQ H[LVWHQWLDO
GLDOHFWLFVZKLFK ZDVDOVRDOUHDG\ ZRUNHGRXW LQ P\SUHYLRXVERRNVLQ
WKDW QHLWKHU WKH F\FOLFDO QRU WKH OLQHDU YLHZV DUH DGHTXDWH IRU H[SODLQLQJ
PDQ\ SKHQRPHQD DW DOO OHYHOV 7KHUH LV QR UHJUHVVLRQ ZLWKRXW
SURJUHVVLRQDQGYLFHYHUVD
+LVWRU\ SURJUHVVHV WR PRUH DGYDQFHG IRUPV EXW ZLWK D UHJUHVVLYH
WRXFK ([DPSOHV LQFOXGH QR IUHHGRP ZLWKRXW XQIUHHGRP QR HTXDOLW\
ZLWKRXW LQHTXDOLW\ DQG QR FLYLOL]DWLRQ ZLWKRXW EDUEDULW\ 7KLV LV QRW DQ
LQHYLWDEOHODZEXWPHUHO\DKLJKO\OLNHO\HPSLULFDOWUHQG
)RULQVWDQFHRQWKHRQHKDQGWKHUHLVUHJUHVVLRQHJWKHUHJUHVVLRQ
PDGHE\DSKURGLVLDFVDVVKRZQLQWKHSUREOHPVSRLQWHGRXWE\WKHFULWLFV
LQ6HFWKHUHJUHVVLRQPDGHE\WKHIRRGJXLGHS\UDPLGVDVVKRZQLQ
WKH ELDVHV DQG SUREOHPV SRLQWHG RXW E\ WKH FULWLFV LQ 6HF WKH
UHJUHVVLRQ PDGH E\ WKH VWXG\ RI IRRG FKDLQV DQG HFRORJLFDO S\UDPLG DV
VKRZQ LQ WKH SUREOHPV SRLQWHG RXW E\ WKH FULWLFV LQ 6HF WKH
UHJUHVVLRQPDGHE\UDZIRRGLVPDVVKRZQLQWKHSUREOHPVSRLQWHGRXWE\
WKHFULWLFVLQ6HFWKHUHJUHVVLRQPDGHE\0DOWKXVLDQLVPDVVKRZQ
LQ WKH SUREOHPV SRLQWHG RXW E\ WKH FULWLFV LQ 6HF WKH UHJUHVVLRQ
PDGH E\ DJULFXOWXUH DV VKRZQ LQ WKH FULWLFLVP WKDW LQ JHQHUDO
DJULFXOWXUHDOORZV DOHVV KHDOWK\ SRSXODWLRQ IRU D JLYHQ DUHD LQ WKH
DUWLFOHDIRUHFLWHGLQ6HFWKHUHJUHVVLRQPDGHE\WKHHWKLFVRIHDWLQJ
PHDWDVVKRZQLQWKHSUREOHPVSRLQWHGRXWE\WKHFULWLFVLQ6HFWKH
UHJUHVVLRQ PDGH E\ WKH &XOLQDU\ 5HYROXWLRQ DV VKRZQ LQ WKH SUREOHPV
SRLQWHGRXWE\WKHFULWLFVLQ6HFWKHUHJUHVVLRQPDGHE\UHJXODWRU\
HQIRUFHPHQWVDVVKRZQLQWKHSUREOHPVSRLQWHGRXWE\WKHFULWLFVLQ6HF
WKH UHJUHVVLRQ PDGH E\ UDZ IRRGLVP DV VKRZQ LQ WKH SUREOHPV
SRLQWHGRXWE\WKHFULWLFVLQ6HFWKHUHJUHVVLRQPDGHE\WKHVWXG\
RIIRRGSDLULQJDVVKRZQLQWKHSUREOHPVSRLQWHGRXWE\WKHFULWLFVLQ6HF
WKH UHJUHVVLRQ PDGH E\ HQYLURQPHQWDO JURXSV DV VKRZQ LQ WKH
SUREOHPVSRLQWHGRXWE\WKHFULWLFVLQ6HFWKHUHJUHVVLRQPDGHE\
FDQQLQJDVVKRZQLQWKHSUREOHPVSRLQWHGRXWE\WKHFULWLFVLQ6HF
WKH UHJUHVVLRQ PDGH E\ WKH IRRG LQGXVWU\ DV VKRZQ LQ WKH SUREOHPV
SRLQWHG RXW E\ WKH FULWLFV LQ 6HF WKH UHJUHVVLRQ PDGH E\ IRRG
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
SKRWRJUDSK\DVVKRZQLQWKHSUREOHPVSRLQWHGRXWE\WKHFULWLFVLQ6HF
DQG WKH UHJUHVVLRQ PDGH E\ WKH VWXG\ RI FXLVLQH DQG FXOWXUDO
YDULDWLRQVDVVKRZQLQWKHSUREOHPVSRLQWHGRXWE\WKHFULWLFVDIRUHFLWHG
LQ6HF
2Q WKH RWKHU KDQG WKHUH LV SURJUHVV HJ WKH SURJUHVV PDGH E\
DSKURGLVLDFVDVVKRZQLQWKHLUFRQWULEXWLRQWRVH[XDOLW\DIRUHFLWHGLQ6HF
WKH SURJUHVV PDGH E\ WKH IRRG JXLGH S\UDPLGV DV VKRZQ LQ WKHLU
FRQWULEXWLRQV WR D KHDOWK\ GLHW ZKLFK FDQ DOVR EH FKHDS DQG QXWULWLRXV
DIRUHFLWHGLQ6HFWKHSURJUHVVPDGHE\WKHVWXG\RIIRRGFKDLQVDQG
HFRORJLFDO S\UDPLG DV VKRZQ LQ WKH FRQWULEXWLRQ WR WKH EHWWHU
XQGHUVWDQGLQJ RI ELRPDVV DQG ELRPDVV SURGXFWLYLW\ DIRUHFLWHG LQ 6HF
WKHSURJUHVVPDGHE\UDZIRRGLVPDVVKRZQLQLWVFRQWULEXWLRQWRD
EHWWHUXQGHUVWDQGLQJRIKHDOWKGLHWVDIRUHFLWHGLQ6HFWKHSURJUHVV
PDGH E\ 0DOWKXVLDQLVP DV VKRZQ LQ LWV FRQWULEXWLRQ WR D EHWWHU
XQGHUVWDQGLQJRIWKHFDXVHVRIRYHUSRSXODWLRQDQGLWVGDQJHUVDIRUHFLWHG
LQ6HFWKHSURJUHVVPDGHE\E\DJULFXOWXUHDVVKRZQLQWKHVWXG\
WKDW LQ JHQHUDO DJULFXOWXUHDOORZV D KLJKHUSRSXODWLRQ IRU D JLYHQ
DUHD LQ WKH DUWLFOH DIRUHFLWHG LQ 6HF WKH SURJUHVV PDGH E\ WKH
HWKLFVRIHDWLQJPHDWDVVKRZQE\LWVFRQWULEXWLRQWRWKHDQLPDOOLEHUDWLRQ
PRYHPHQW DIRUHFLWHG LQ 6HF WKH SURJUHVV PDGH E\ WKH &XOLQDU\
5HYROXWLRQDVVKRZQLQLWVFRQWULEXWLRQWRDQDOWHUQDWLYHFXLVLQHWRUHSODFH
IUR]HQ IDVWIRRG FXLVLQH DIRUHFLWHG LQ 6HF WKH SURJUHVV PDGH E\
UHJXODWRU\ HQIRUFHPHQWV DV VKRZQ LQ WKH FRQWULEXWLRQ WR IRRG VDIHW\
DIRUHFLWHGLQ6HFWKHSURJUHVVPDGHE\UDZIRRGLVPDVVKRZQLQ
LWVFRQWULEXWLRQWRVRPHKHDOWKLVVXHVDIRUHFLWHGLQ6HFWKHSURJUHVV
PDGH E\ WKH VWXG\ RI IRRG SDLULQJ DV VKRZQ LQ LWV FRQWULEXWLRQ WR WKH
XQGHUVWDQGLQJ RI ZKLFK IRRGV JR ZHOO WRJHWKHU DIRUHFLWHG LQ 6HF
WKHSURJUHVVPDGHE\HQYLURQPHQWDOJURXSVDVVKRZQLQWKHLUFRQWULEXWLRQ
WR WKH HQIRUFHPHQW DJDLQVW VSHFLHVHQGDQJHULQJ ZKDOLQJ DQG ILVKLQJ
SUDFWLFHV DIRUHFLWHG LQ 6HF WKH SURJUHVV PDGH E\ FDQQLQJ DV
VKRZQLQLWVFRQWULEXWLRQWRIRRGSUHVHUYDWLRQDIRUHFLWHGLQ6HFWKH
SURJUHVV PDGH E\ WKH IRRG LQGXVWU\ DV VKRZQ LQ LWV FRQWULEXWLRQ WR IDVW
IRRG VHUYLFHV DIRUHFLWHG LQ 6HF WKH SURJUHVV PDGH E\ IRRG
SKRWRJUDSK\ DV VKRZQ LQ LWV FRQWULEXWLRQ WR IRRG DGYHUWLVHPHQW
DIRUHFLWHGLQ6HFDQGWKHSURJUHVVPDGHE\WKHVWXG\RIFXLVLQHDQG
FXOWXUDO YDULDWLRQV DV VKRZQ LQ WKH FRQWULEXWLRQ WR WKH XQGHUVWDQGLQJ RI
WKHYDULHWLHVRIFXLVLQHVRIWKHZRUOGDIRUHFLWHGLQ6HF
$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
$JDLQLWVKRXOGEHVWUHVVHG KRZHYHUWKDWWKHUHDUHGLIIHUHQWVKDGHV
RI JUD\ RU GLIIHUHQW GHJUHHV RI WUXWK LQ WKH WZR RSSRVLWHV DQG WKH
FODVVLILFDWLRQ LV QRW QHFHVVDULO\ PXWXDOO\ H[FOXVLYH HLWKHU ,Q IDFW HYHQ
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
ZKHQVRPHFRPELQDWLRQVRIWKHWZRRFFXUWKH\RQO\HQG XSVKDULQJWKH
VDPHGLDOHFWLFUHODWLRQVKLSEXWLQDGLIIHUHQWGHJUHH
$OVR WKHUH DUH VRPH RWKHU UHODWLRQVKLSV DV D NLQG RI IDPLO\
UHVHPEODQFH ZKLFK KDYH VRPHWKLQJ LQ FRPPRQ ZLWK WKH SULQFLSOH EXW
WKH\ DUH QRW H[DFWO\ WKH VDPH EXW RQO\ PRUH RU OHVV FRPSDUDEOH ZKLFK
YDULHVIURPFDVHWRFDVH
*RRGH[DPSOHVRIIDPLO\UHVHPEODQFHLQUHODWLRQWRWKHSULQFLSOHDUH
XQGHVLUDELOLW\GHVLUDELOLW\ ULVNRSSRUWXQLW\ EDGQHVVJRRGQHVV FRVW
EHQHILWDQGVRRQ
WK7KHVLV7KH6DPH'LIIHUHQFH3ULQFLSOH
7KHWZHQW\ILIWKWKHVLVUHIHUVWRWKHVDPHGLIIHUHQFHSULQFLSOH RQWKH
PHWDPRUSKRVLV RI FKDQJH LQ WKH FDWHJRU\ RI RXWFRPH LQ H[LVWHQWLDO
GLDOHFWLFVZKLFKZDVZRUNHGRXWLQ$/'DQGRWKHUERRNVRIPLQHLQWKDW
DQHQWLW\DVLWHYROYHVRYHUWLPHFDQEHERWKGLIIHUHQWIURPDQGVLPLODUWR
LWV RSSRVLQJ DOWHUQDWLYHV DQG GRHV QRW KDYH WR EH VROHO\ PRUH GLIIHUHQW
IURPWKHPRYHUWLPH7KHUHLVQRVLPLODULW\ZLWKRXWGLIIHUHQFHDQGYLFH
YHUVD
2SSRVLWHV DUH QRW DEVROXWH LQ D EODFNRUZKLWH IDVKLRQ VR DQ HQWLW\
FDQEHFRPHUHODWLYHO\PRUHVLPLODUWRRUPRUHGLIIHUHQWIURPLWVRSSRVLWH
RYHUWLPH
7KLVLVIXUWKHUFRQVWUDLQHGE\DQRWKHUSULQFLSOHWKDWLVWKHV\PPHWU\
DV\PPHWU\ SULQFLSOH DERXW WKH UHODWLRQVKLSV DPRQJ H[LVWHQWV XQGHU WKH
FDWHJRU\DERXWDJHQF\LQH[LVWHQWLDOGLDOHFWLFVLQWKDWLIWKHUHLVV\PPHWU\
HTXDOLW\ EHWZHHQ WZR HQWLWLHV WKHUH LV OLNHZLVH DV\PPHWU\ LQHTXDOLW\
HPHUJLQJLQDGLIIHUHQWZD\
)RULQVWDQFHRQWKHRQHKDQGWKHUHLVVLPLODULW\LQRXWFRPHHJWKH
FRQWULEXWLRQWRWKHPROGLQJDQGFRQWURORIEHOLHIVYDOXHVDQGEHKDYLRUV
UHJDUGOHVVRIZKHWKHUWKLVEHGRQHE\WKHXVHRIQDWXUDODSKURGLVLDFVRUE\
WKH XVH RI V\QWKHWLF DSKURGLVLDFV LQ 6HF WKH FRQWULEXWLRQ WR WKH
PROGLQJ DQG FRQWURO RI EHOLHIV YDOXHV DQG EHKDYLRUV UHJDUGOHVV RI
ZKHWKHUWKLVEHGRQHE\ZD\RIFRQWHPSRUDU\IRRGJXLGHS\UDPLGVRUE\
ZD\ RI WUDGLWLRQDO GLHWDU\ SUDFWLFHV LQ 6HF WKH FRQWULEXWLRQ WR WKH
PROGLQJ DQG FRQWURO RI EHOLHIV YDOXHV DQG EHKDYLRUV UHJDUGOHVV RI
ZKHWKHUWKLVEHGRQHE\WKHEHOLHILQIRRGFKDLQVDQGHFRORJLFDOS\UDPLG
RUE\WKHEHOLHILQWKHJUHDWFKDLQRIEHLQJLQ6HFWKHFRQWULEXWLRQ
WRWKHPROGLQJDQGFRQWURORIEHOLHIVYDOXHVDQGEHKDYLRUVUHJDUGOHVVRI
ZKHWKHU WKLV EH GRQH E\ ZD\ RI UDZ IRRGLVP ZKLFK LV QRW WROHUDQW RI
FRIIHHDOFRKRODQGWREDFFRRUE\ZD\RIFRRNHGIRRGLVPZKLFKLVDOVR
WROHUDQWRIFRIIHHDOFRKRODQGWREDFFRLQ6HFWKHFRQWULEXWLRQWR
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
WKH PROGLQJ DQG FRQWURO RI EHOLHIV YDOXHV DQG EHKDYLRUV UHJDUGOHVV RI
ZKHWKHU WKLV EH GRQH E\ ZD\ RI QDWXUDO FKHFNV OLNH GLVHDVH DQG
VWDUYDWLRQ RU E\ ZD\ RI SRSXODWLRQ FRQWURO VWUDWHJLHV LQ 6HF
WKH FRQWULEXWLRQ WR WKH PROGLQJ DQG FRQWURO RI EHOLHIV YDOXHV DQG
EHKDYLRUV UHJDUGOHVV RI ZKHWKHU WKLV EH GRQH E\ ZD\ RI IRUDJLQJ RU E\
ZD\ RI FDSLWDOLVP LQ 6HF WKH FRQWULEXWLRQ WR WKH PROGLQJ DQG
FRQWURO RI EHOLHIV YDOXHV DQG EHKDYLRUV UHJDUGOHVV RI ZKHWKHU WKLV EH
GRQHE\ZD\RINLOOLQJIRUIRRGRUE\ZD\RI+LQGXLVPIRUYHJDWDULDQLVP
LQ6HFWKHFRQWULEXWLRQWRWKHPROGLQJDQGFRQWURORIEHOLHIVYDOXHV
DQG EHKDYLRUV UHJDUGOHVV RI ZKHWKHU WKLV EH GRQH E\ ZD\ RI WKH 1HZ
$PHULFDQ &XLVLQH RU E\ ZD\ RI &KLQHVH FXLVLQH LQ 6HF WKH
FRQWULEXWLRQWRWKHPROGLQJDQGFRQWURORIEHOLHIVYDOXHVDQGEHKDYLRUV
UHJDUGOHVV RI ZKHWKHU WKLV EH GRQH E\ ZD\ RI UHJXODWRU\ HQIRUFHPHQWV
OLNH WKRVH LQ WKH 8. RU E\ ZD\ RI WUDGLWLRQDO PDUNHWLQJ V\VWHPV OLNH
WKRVH LQ &KLQD RU WKH UHVW RI $VLD LQ WKH ROGHU GD\V LQ 6HF WKH
FRQWULEXWLRQWRWKHPROGLQJDQGFRQWURORIEHOLHIVYDOXHVDQGEHKDYLRUV
UHJDUGOHVVRI ZKHWKHU WKLVEH GRQHE\ ZD\RIIRUDJLQJRU E\ ZD\RI WKH
VFLHQFH RI FRRNLQJ LQ 6HF WKH FRQWULEXWLRQ WR WKH PROGLQJ DQG
FRQWURO RI EHOLHIV YDOXHV DQG EHKDYLRUV UHJDUGOHVV RI ZKHWKHU WKLV EH
GRQHE\ZD\RIPROHFXODUJDVWURQRP\QRZDGD\VRUE\ZD\RIWUDGLWLRQDO
FRRNLQJ SUDFWLFH LQ WKH ROGHU GD\V LQ 6HF WKH FRQWULEXWLRQ WR WKH
PROGLQJ DQG FRQWURO RI EHOLHIV YDOXHV DQG EHKDYLRUV UHJDUGOHVV RI
ZKHWKHUWKLVEHGRQHE\ZD\RILQWHUQDWLRQDOFRQVHUYDWLRQODZRUE\ZD\
RI WKH WDFWLFV RI 6HD 6KHSKHUG LQ 6HF WKH FRQWULEXWLRQ WR WKH
PROGLQJ DQG FRQWURO RI EHOLHIV YDOXHV DQG EHKDYLRUV UHJDUGOHVV RI
ZKHWKHU WKLV EH GRQH E\ ZD\ RI HDWLQJ IRRG XQWLO VSRLODJH RU E\ ZD\ RI
FDQQLQJ LQ 6HF WKH FRQWULEXWLRQ WR WKH PROGLQJ DQG FRQWURO RI
EHOLHIV YDOXHV DQG EHKDYLRUV UHJDUGOHVV RI ZKHWKHU WKLV EH GRQH E\ WKH
UHOLDQFHRQIDVWIRRGRUE\WKHUHOLDQFHRQKRPHPDGHIRRGLQ6HF
WKH FRQWULEXWLRQ WR WKH PROGLQJ DQG FRQWURO RI EHOLHIV YDOXHV DQG
EHKDYLRUVUHJDUGOHVVRIZKHWKHUWKLVEHGRQHE\ZD\RIYLVXDOHQMR\PHQW
RI IRRGV LQ QDWXUH RU E\ ZD\ RI YLUWXDO HQMR\PHQW RI IRRGV LQ
SKRWRJUDSK\LQ6HFDQGWKHFRQWULEXWLRQWRWKHPROGLQJDQGFRQWURO
RI EHOLHIV YDOXHV DQG EHKDYLRUV UHJDUGOHVV RI ZKHWKHU WKLV EH GRQH E\
ZD\RIUHJLRLQDOFXLVLQHVRUE\ZD\RIIXVLRQFXLVLQHLQ6HF
2Q WKH RWKHU KDQG WKHUH LV GLIIHUHQFH LQ RXWFRPH HJ WKH
FRQWULEXWLRQ WR WKH PROGLQJ DQG FRQWURO RI EHOLHIV YDOXHV DQG EHKDYLRUV
E\ WKH XVH RI QDWXUDO DSKURGLVLDFV IRU D UHODWLYHO\ PRUH QDWXUDOLVWLF
OLIHZRUOGEXW WKH FRQWULEXWLRQ WR WKH PROGLQJ DQG FRQWURO RI EHOLHIV
YDOXHVDQGEHKDYLRUVE\WKHXVHRIV\QWKHWLFDSKURGLVLDFVIRUDUHODWLYHO\
PRUHWHFKQRSKLOLFOLIHZRUOGLQ6HFWKHFRQWULEXWLRQWRWKHPROGLQJ
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
DQGFRQWURORIEHOLHIVYDOXHVDQGEHKDYLRUVE\ZD\RIFRQWHPSRUDU\IRRG
JXLGH S\UDPLGV IRU D UHODWLYHO\ PRUH VFLHQWLILF ZRUOGYLHZEXW WKH
FRQWULEXWLRQ WR WKH PROGLQJ DQG FRQWURO RI EHOLHIV YDOXHV DQG EHKDYLRUV
E\ ZD\ RI WUDGLWLRQDO GLHWDU\ SUDFWLFHV IRU D UHODWLYHO\ PRUH FXVWRPDU\
ZRUOGYLHZ LQ 6HF WKH FRQWULEXWLRQ WR WKH PROGLQJ DQG FRQWURO RI
EHOLHIVYDOXHVDQGEHKDYLRUVE\WKHEHOLHILQ IRRGFKDLQV DQGHFRORJLFDO
S\UDPLGIRUDUHODWLYHO\PRUHVHFXODUZRUOGYLHZEXWWKHFRQWULEXWLRQWR
WKHPROGLQJDQGFRQWURORIEHOLHIVYDOXHVDQGEHKDYLRUVE\WKHEHOLHILQ
WKH JUHDW FKDLQ RI EHLQJ IRU D UHODWLYHO\ PRUH UHOLJLRXV ZRUOGYLHZ LQ
6HFWKHFRQWULEXWLRQ WRWKH PROGLQJDQGFRQWURORIEHOLHIVYDOXHV
DQG EHKDYLRUV E\ ZD\ RI UDZ IRRGLVP IRU D UHODWLYHO\ PRUH KHDOWK
FRQVFLRXV DVFHWLF OLIHVW\OHEXW WKH FRQWULEXWLRQ WR WKH PROGLQJ DQG
FRQWURORIEHOLHIVYDOXHVDQGEHKDYLRUVE\ZD\RIFRRNHGIRRGLVPIRUD
UHODWLYHO\ PRUH KHGRQLVWLF OLIHVW\OH LQ 6HF WKH FRQWULEXWLRQ WR WKH
PROGLQJ DQG FRQWURO RI EHOLHIV YDOXHV DQG EHKDYLRUV E\ ZD\ RI QDWXUDO
FKHFNVOLNHGLVHDVHDQGVWDUYDWLRQIRUDUHODWLYHO\PRUHQDWXUDOLVWLFRU
HYROXWLRQDU\OLIHZRUOGEXWWKHFRQWULEXWLRQWRWKHPROGLQJDQGFRQWURORI
EHOLHIVYDOXHVDQGEHKDYLRUVE\ZD\RISRSXODWLRQFRQWUROVWUDWHJLHVIRU
DUHODWLYHO\PRUHPDQFHQWHUHGOLIHZRUOGLQ6HFWKHFRQWULEXWLRQWR
WKH PROGLQJ DQG FRQWURO RI EHOLHIV YDOXHV DQG EHKDYLRUV E\ ZD\ RI
IRUDJLQJIRUDUHODWLYHO\PRUHFRRSHUDWLYHOLIHZRUOGEXWWKHFRQWULEXWLRQ
WR WKH PROGLQJ DQG FRQWURO RI EHOLHIV YDOXHV DQG EHKDYLRUV E\ ZD\ RI
FDSLWDOLVP IRU D UHODWLYHO\ PRUH FRPSHWLWLYH OLIHZRUOG LQ 6HF WKH
FRQWULEXWLRQ WR WKH PROGLQJ DQG FRQWURO RI EHOLHIV YDOXHV DQG EHKDYLRUV
E\ZD\RINLOOLQJIRUIRRGIRUDUHODWLYHO\PRUHSUDFWLFDOOLIHZRUOGEXW
WKH FRQWULEXWLRQ WR WKH PROGLQJ DQG FRQWURO RI EHOLHIV YDOXHV DQG
EHKDYLRUV E\ ZD\ RI +LQGXLVP IRU YHJDWDULDQLVP IRU D UHODWLYHO\ PRUH
VDFUDOOLIHZRUOGLQ6HFWKHFRQWULEXWLRQWRWKHPROGLQJDQGFRQWURO
RIEHOLHIVYDOXHVDQGEHKDYLRUVE\ZD\RIWKH1HZ$PHULFDQ&XLVLQHIRU
D UHODWLYHO\ PRUH K\EULG ZRUOGYLHZ PRVWO\ IURP /DWLQ $PHULFD WKH
0HGLWHUUDQHDQUHJLRQDQG$VLDEXWWKHFRQWULEXWLRQWRWKHPROGLQJDQG
FRQWURORIEHOLHIV YDOXHVDQGEHKDYLRUVE\ ZD\RI &KLQHVHFXLVLQH IRUD
UHODWLYHO\ PRUH WUDGLWLRQDO ZRUOGYLHZ PRVWO\ IURP (DVW $VLD LQ 6HF
WKH FRQWULEXWLRQ WR WKH PROGLQJ DQG FRQWURO RI EHOLHIV YDOXHV DQG
EHKDYLRUV E\ ZD\ RI UHJXODWRU\ HQIRUFHPHQWV IRU D UHODWLYHO\ PRUH
JRYHUQPHQWUHJXODWHGOLIHZRUOGEXWWKHFRQWULEXWLRQWRWKHPROGLQJDQG
FRQWURORIEHOLHIVYDOXHVDQGEHKDYLRUVE\ZD\RIWUDGLWLRQDOPDUNHWLQJ
V\VWHPVIRUDUHODWLYHO\PRUHPDUNHWRULHQWHGOLIHZRUOGLQ6HFWKH
FRQWULEXWLRQ WR WKH PROGLQJ DQG FRQWURO RI EHOLHIV YDOXHV DQG EHKDYLRUV
E\ ZD\RIIRUDJLQJIRUDUHODWLYHO\ PRUHQDWXUDOLVWLFOLIHZRUOGEXWWKH
FRQWULEXWLRQ WR WKH PROGLQJ DQG FRQWURO RI EHOLHIV YDOXHV DQG EHKDYLRUV
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
E\ZD\RIWKHVFLHQFHRIFRRNLQJIRUDUHODWLYHO\PRUHVFLHQWLILFOLIHZRUOG
LQ6HFWKHFRQWULEXWLRQWRWKHPROGLQJDQGFRQWURORIEHOLHIVYDOXHV
DQGEHKDYLRUVE\ZD\RIPROHFXODUJDVWURQRP\QRZDGD\VIRUDUHODWLYHO\
PRUH VFLHQWLILF ZRUOGYLHZEXW WKH FRQWULEXWLRQ WR WKH PROGLQJ DQG
FRQWURO RI EHOLHIV YDOXHV DQG EHKDYLRUV E\ ZD\ RI WUDGLWLRQDO FRRNLQJ
SUDFWLFH LQ WKH ROGHU GD\V IRU D UHODWLYHO\ PRUH FXVWRPDU\ ZRUOGYLHZ LQ
6HFWKHFRQWULEXWLRQ WRWKH PROGLQJDQGFRQWURORIEHOLHIVYDOXHV
DQG EHKDYLRUV E\ ZD\ RI LQWHUQDWLRQDO FRQVHUYDWLRQ ODZ IRU D UHODWLYHO\
PRUH OHJDOLVWLF ZRUOGYLHZEXW WKH FRQWULEXWLRQ WR WKH PROGLQJ DQG
FRQWURO RI EHOLHIV YDOXHV DQG EHKDYLRUV E\ ZD\ RI WKH WDFWLFV RI 6HD
6KHSKHUG IRU D UHODWLYHO\ PRUH YLROHQW ZRUOGYLHZ LQ 6HF WKH
FRQWULEXWLRQ WR WKH PROGLQJ DQG FRQWURO RI EHOLHIV YDOXHV DQG EHKDYLRUV
E\ ZD\ RI HDWLQJ IRRG XQWLO VSRLODJH IRU D UHODWLYHO\ PRUH QDWXUDOLVWLF
OLIHZRUOGEXW WKH FRQWULEXWLRQ WR WKH PROGLQJ DQG FRQWURO RI EHOLHIV
YDOXHVDQGEHKDYLRUVE\ZD\RIFDQQLQJIRUDUHODWLYHO\PRUHWHFKQRSKLOLF
OLIHZRUOG LQ 6HF WKH FRQWULEXWLRQ WR WKH PROGLQJ DQG FRQWURO RI
EHOLHIVYDOXHVDQGEHKDYLRUVE\WKHUHOLDQFHRQIDVWIRRGIRUDUHODWLYHO\
PRUHXUEDQOLIHZRUOGEXWWKHFRQWULEXWLRQWRWKHPROGLQJDQGFRQWURO
RIEHOLHIVYDOXHVDQGEHKDYLRUVE\WKHUHOLDQFHRQKRPHPDGHIRRGIRUD
UHODWLYHO\PRUHDJULFXOWXUDOOLIHZRUOGLQ6HFWKHFRQWULEXWLRQWRWKH
PROGLQJ DQG FRQWURO RI EHOLHIV YDOXHV DQG EHKDYLRUV E\ ZD\ RI YLVXDO
HQMR\PHQWRIIRRGVLQQDWXUHIRUDUHODWLYHO\PRUHQDWXUDOLVWLFOLIHZRUOG
EXW WKH FRQWULEXWLRQ WR WKH PROGLQJ DQG FRQWURO RI EHOLHIV YDOXHV DQG
EHKDYLRUV E\ ZD\ RI RI YLUWXDO HQMR\PHQW RI IRRGV LQ SKRWRJUDSK\ IRU D
UHODWLYHO\ PRUHWHFKQRSKLOLFOLIHZRUOGLQ6HFDQGWKHFRQWULEXWLRQ
WR WKH PROGLQJ DQG FRQWURO RI EHOLHIV YDOXHV DQG EHKDYLRUV E\ ZD\ RI
UHJLRLQDO FXLVLQHV IRU D UHODWLYHO\ PRUH SURYLQFLDO ZRUOGYLHZEXW WKH
FRQWULEXWLRQ WR WKH PROGLQJ DQG FRQWURO RI EHOLHIV YDOXHV DQG EHKDYLRUV
E\ZD\RIIXVLRQFXLVLQHIRUDUHODWLYHO\PRUHHFOHFWLFZRUOGYLHZLQ6HF
$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
$JDLQLWVKRXOGEHVWUHVVHG KRZHYHUWKDWWKHUHDUHGLIIHUHQWVKDGHV
RI JUD\ RU GLIIHUHQW GHJUHHV RI WUXWK LQ WKH WZR RSSRVLWHV DQG WKH
FODVVLILFDWLRQ LV QRW QHFHVVDULO\ PXWXDOO\ H[FOXVLYH HLWKHU ,Q IDFW HYHQ
ZKHQVRPHFRPELQDWLRQVRIWKHWZRRFFXUWKH\RQO\HQG XSVKDULQJWKH
VDPHGLDOHFWLFUHODWLRQVKLSEXWLQDGLIIHUHQWGHJUHH
$OVR WKHUH DUH VRPH RWKHU UHODWLRQVKLSV DV D NLQG RI IDPLO\
UHVHPEODQFH ZKLFK KDYH VRPHWKLQJ LQ FRPPRQ ZLWK WKH SULQFLSOH EXW
WKH\ DUH QRW H[DFWO\ WKH VDPH EXW RQO\ PRUH RU OHVV FRPSDUDEOH ZKLFK
YDULHVIURPFDVHWRFDVH
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
*RRGH[DPSOHVRIIDPLO\UHVHPEODQFHLQUHODWLRQWRWKHSULQFLSOHDUH
KRPRJHQHLW\KHWHURJHQHLW\ZHWKH\VLPLODULW\FRQWUDVWDQGVRIRUWK
WK7KHVLV7KH6WDELOLW\5HDFWLRQ3ULQFLSOH
7KHWZHQW\VL[WKWKHVLVLVFDOOHGWKHVWDELOLW\UHDFWLRQSULQFSOHRQWKH
IHHGEDFNPHFKDQLVPIRUIXUWKHUFKDQJHVLQWKHFDWHJRU\RIRXWFRPHLQ
H[LVWHQWLDOGLDOHFWLFVZKLFK ZDV ILUVW ZRUNHGRXWLQ)3+&+(0LQWKDW
RQFHDQRXWFRPHEHFRPHVVWDELOL]HGRYHUWLPHZKLFKYDULHVIURPFDVHWR
FDVHLWZLOOXQGHUJRIXUWKHUFKDQJHVLQLWVPXOWLIDFHWHGLQWHUDFWLRQVZLWK
WKHRXWVLGHZRUOGHJZLWKRWKHUHQWLWLHVHQHUJ\VSDFHDQGVRRQ
7KHUH LV QR VWDELOLW\ ZLWKRXW UHDFWLRQ IRU IXUWKHU FKDQJHVDQG YLFH
YHUVD
)RULQVWDQFHRQWKHRQHKDQGWKHUHLVVWDELOLW\LQRXWFRPHHJWKH
UHODWLYHO\ PRUH VWDEOH FRQGLWLRQ RI WKH XVH RI QDWXUDO DSKURGLVLDFV LQ WKH
ROGHU GD\V LQ 6HF WKH UHODWLYHO\ PRUH VWDEOH FRQGLWLRQ RI VRPH
FXOWXUHV LQ WKH ROGHU GD\V LQ ZKLFK SHRSOH KDYH KLVWRULFDOO\ FRQVXPHG
OLWWOH LI DQ\ GDLU\ SURGXFWV ZLWK WKH H[FHSWLRQ RI EUHDVWIHHGLQJ LQ 6HF
WKHUHODWLYHO\PRUHVWDEOHFRQGLWLRQRIWKHEHOLHILQWKHJUHDWFKDLQ
RIEHLQJLQWKHROGHUGD\VZKHQ3ODWR$ULVWRWOHDQGRWKHUVDGYRFDWHGLW
LQ6HFWKHUHODWLYHO\PRUHVWDEOHFRQGLWLRQRIFRRNHGIRRGLVPLQWKH
ROGHU GD\V ZKHQ FRRNLQJ JUDGXDOO\ EHFDPH LQVWLWXWLRQDOL]HG LQ KXPDQ
FXOWXUH LQ 6HF WKH UHODWLYHO\ PRUH VWDEOH FRQGLWLRQ RI
0DOWKXVLDQLVPLQWKHWKFHQWXU\ZKHQLWZDVSURSRVHGE\0DOWKXVDVD
UHEXNH WR :LOOLDP *RGZLQ DQG WKH 0DUTXLV GH &RQGRUFHW LQ 6HF
WKHUHODWLYHO\PRUHVWDEOHFRQGLWLRQRIIRUDJLQJLQWKHROGHUGD\VZKHQLW
ZDVWKHVROHPRGHRIH[LVWHQFHIRUKXPDQEHLQJVIRUWKHYDVWPDMRULW\RI
KXPDQ KLVWRU\ LQ 6HF WKH UHODWLYHO\ PRUH VWDEOH FRQGLWLRQ RI
NLOOLQJIRUIRRGLQWKHROGHUGD\VOLNHIRUDJLQJLQ6HFWKHUHODWLYHO\
PRUHVWDEOHFRQGLWLRQRIIUR]HQIDVWIRRGFXLVLQHLQWKHROGHUGD\VSULRUWR
WKHULVHRIWKH1HZ$PHULFDQ&XLVLQHLQVLQ6HFWKHUHODWLYHO\
PRUH VWDEOH FRQGLWLRQ RI WUDGLWLRQDO PDUNHWLQJ V\VWHPV OLNH WKRVH LQ
&KLQD RU WKH UHVW RI $VLD LQ WKH ROGHU GD\V LQ 6HF WKH UHODWLYHO\
PRUHVWDEOHFRQGLWLRQRIWKHDGYHQWRIFRRNLQJLQWKHROGHUGD\VLQ6HF
WKH UHODWLYHO\ PRUH VWDEOH FRQGLWLRQ RI WKH RULJLQDO REMHFWLYHV RI
PROHFXODUJDVWURQRP\LQWKHROGHUGD\VLQ6HFWKHUHODWLYHO\PRUH
VWDEOH FRQGLWLRQ RI LQWHUQDWLRQDO FRQVHUYDWLRQ ODZV DQG LQWHUQDWLRQDO
PDULWLPH ODZ LQ WKH ROGHU GD\V ZKHQ WKHUH ZDV D ODFN RI GLUHFW
HQIRUFHPHQW PHFKDQLVPV LQ 6HF WKH UHODWLYHO\ PRUH VWDEOH
FRQGLWLRQRIFRQVXPLQJIRRGXQWLOVSRLODJHLQWKHROGHUGD\VLQ6HF
WKHUHODWLYHO\PRUHVWDEOHFRQGLWLRQRIKRPHPDGHIRRGLQWKHROGHUGD\V
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
ZKHQDJULFXOWXUHZDVGRPLQDQWLQDQHFRQRP\LQ6HFWKHUHODWLYHO\
PRUH VWDEOH FRQGLWLRQ RI IRRG SRUQ LQ WKH ROGHU GD\ LQ 6HF DQG
WKHUHODWLYHO\PRUHVWDEOHFRQGLWLRQRIUHJLRQDOFXLVLQHVLQWKHROGHUGD\V
ZKHQGLIIHUHQWUHJLRQVLQWKHZRUOGSUHIHUUHGWKHLURZQUHJLRQDOFXLVLQHV
LQ6HF
2QWKHRWKHUKDQGWKHUHLVUHDFWLRQLQRXWFRPHHJWKHUHODWLYHXVH
RIQDWXUDODSKURGLVLDFVLQWKHROGHUGD\VWKHQOHGWRIXUWKHUFKDQJHVODWHU
RQ ZKHQ QRZDGD\V PRUH DQG PRUH V\QWKHWLF DSKURGLVLDFV DUH XVHG
LQVWHDG LQ 6HF WKH UHODWLYHO\ PRUH VWDEOH FRQGLWLRQ RI VRPH
FXOWXUHV LQ ZKLFK SHRSOH KDYH KLVWRULFDOO\ FRQVXPHG OLWWOH LI DQ\ GDLU\
SURGXFWVZLWKWKHH[FHSWLRQRIEUHDVWIHHGLQJWKHQOHGWRIXUWKHUFKDQJHV
ODWHURQZKHQWKHVSUHDGRI:HVWHUQIRRGJXLGHS\UDPLGVEHFRPHVPRUH
DQGPRUHLQIOXHQWLDOQRZDGD\VLQ6HFWKHEHOLHILQWKHJUHDWFKDLQ
RI EHLQJ LQ WKH ROGHU GD\V WKHQ OHG WR IXUWKHU FKDQJHV ODWHU RQ ZKHQ
QRZDGD\V WKHUH LV WKH DOWHUQDWLYH EHOLHI LQ IRRG FKDLQV DQG HFRORJLFDO
S\UDPLGLQ6HFFRRNHGIRRGLVPLQWKHROGHUGD\VWKHQOHGWRIXUWKHU
FKDQJHVODWHURQZKHQWKHUDZIRRGPRYHPHQWEHFDPHPRUHLQIOXHQWLDOLQ
WKH WK FHQWXU\ LQ 6HF WKH UHODWLYHO\ VWDEOH FRQGLWLRQ RI
0DOWKXVLDQLVP LQ WKH WK FHQWXU\ WKHQ OHG WR IXUWKHU FKDQJHV ODWHU RQ
ZKHQ LW LV FKDOOHQJHG QRZDGD\V E\ WKH FULWLFV OLNH $PDUW\D 6HQ ZKR
DUJXHVWKDWIDPLQHLVPRUHSROLWLFDOWKDQHFRQRPLFLQ6HFIRUDJLQJ
WKHQ OHG WR IXUWKHU FKDQJHV ODWHU RQ ZKHQ QRZDGD\V LQGXVWULDOLVP DQG
JOREDOL]DWLRQEHFRPHPRUHSHUYDVLYHLQ6HFWKHNLOOLQJIRUIRRGLQ
WKH ROGHU GD\V WKHQ OHG WR IXUWKHU FKDQJHV ODWHU RQ ZKHQ QRZDGD\V WKH
DQLPDOOLEHUDWLRQPRYHPHQWUDLVHVWKHGHEDWHFRQFHUQLQJWKHEDQRINLOOLQJ
IRUIRRGLQ6HFWKHIUR]HQIDVWIRRGFXLVLQHLQWKHROGHUGD\VWKHQ
OHGWRIXUWKHUFKDQJHVODWHURQOLNHWKHULVHRIWKH1HZ$PHULFDQ&XLVLQH
LQVLQ6HFWKHWUDGLWLRQDOPDUNHWLQJV\VWHPVLQ&KLQDWKHQ
OHG WR IXUWKHU FKDQJHV ODWHU RQ ZKHQ QRZDGD\V WKHUH DUH QHZ JXLGHOLHQV
IRU IRRG VDIHW\ ZLWK WKH FUHDWLRQ RI WKH 6WDWH )RRG DQG 'UXJ
$GPLQLVWUDWLRQLQLQ6HFWKHDGYHQWRIFRRNLQJLQWKHROGHU
GD\V WKHQ OHG WR IXUWKHU FKDQJHV ODWHU RQ ZKHQ WKH GHYHORSPHQW RI
DJULFXOWXUHFRPPHUFHDQGWUDQVSRUWDWLRQEHWZHHQFLYLOL]DWLRQVLQGLIIHUHQW
UHJLRQV RIIHUHG FRRNV PDQ\ QHZ LQJUHGLHQWV DQG FRRNLQJ WHFKQLTXHV
HWFLQ6HFWKHRULJLQDOREMHFWLYHVRIPROHFXODUJDVWURQRP\LQWKH
ROGHUGD\VWKHQOHGWRIXUWKHUFKDQJHVODWHURQZKHQWKH\DUHQRZUHGXFHG
WRREMHFWLYHVLQVWHDGLQ6HFLQWHUQDWLRQDOFRQVHUYDWLRQODZVDQG
LQWHUQDWLRQDO PDULWLPH ODZ LQ WKH ROGHU GD\V WKHQ OHG WR IXUWKHU FKDQJHV
ODWHU RQ ZKHQ QRZDGD\V WKHUH LV 6HD 6KHSKHUG ZLWK LWV YLROHQW GLUHFW
DFWLYLVP LQ 6HF WKH VWDEOH FRQGLWLRQ RI FRQVXPLQJ IRRG XQWLO
VSRLODJH LQ WKH ROGHU GD\V WKHQ OHG WR IXUWKHU FKDQJHV ODWHU RQ ZKHQ
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
QRZDGD\V FDQQLQJ LV ZLGHO\ XVHG IRU IRRG SUHVHUYDWLRQ LQVWHDG LQ 6HF
KRPHPDGHIRRGLQWKHROGHUGD\VWKHQOHGWRIXUWKHUFKDQJHVODWHU
RQ ZKHQ XUEDQ GHYHORSPHQW FRQWULEXWHG WR WKH ULVH RI IDVW IRRG LQ 6HF
IRRG SRUQ LQ WKH ROGHU GD\V WKHQ OHG WR IXUWKHU FKDQJHV ODWHU RQ
ZKHQQRZDGD\VLWLVUHSODFHGE\DVLPSOHUIRRGVW\OHZKLFKLVWRSUHVHQW
WKHIRRGDVVLPSOHFOHDQDQGQDWXUDOO\DVSRVVLEOHDQGZLWKOLWWOHSURSVLQ
6HF DQG UHJLRQDO FXLVLQHV LQ WKH ROGHU GD\V WKHQ OHG WR IXUWKHU
FKDQJHV ODWHU RQ ZKHQ QRZDGD\V IXVLRQ FXLVLQH EHFRPHV LQFUHDVLQJO\
SRSXODULQ6HF
$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
$JDLQLWVKRXOGEHVWUHVVHG KRZHYHUWKDWWKHUHDUHGLIIHUHQWVKDGHV
RI JUD\ RU GLIIHUHQW GHJUHHV RI WUXWK LQ WKH WZR RSSRVLWHV DQG WKH
FODVVLILFDWLRQ LV QRW QHFHVVDULO\ PXWXDOO\ H[FOXVLYH HLWKHU ,Q IDFW HYHQ
ZKHQVRPHFRPELQDWLRQVRIWKHWZRRFFXUWKH\RQO\HQG XSVKDULQJWKH
VDPHGLDOHFWLFUHODWLRQVKLSEXWLQDGLIIHUHQWGHJUHH
$OVR WKHUH DUH VRPH RWKHU UHODWLRQVKLSV DV D NLQG RI IDPLO\
UHVHPEODQFH ZKLFK KDYH VRPHWKLQJ LQ FRPPRQ ZLWK WKH SULQFLSOH EXW
WKH\ DUH QRW H[DFWO\ WKH VDPH EXW RQO\ PRUH RU OHVV FRPSDUDEOH ZKLFK
YDULHVIURPFDVHWRFDVH
*RRGH[DPSOHVRIIDPLO\UHVHPEODQFHLQUHODWLRQWRWKHSULQFLSOHDUH
VWDELOLW\IRUZDUGQHVV QRUPDOF\IHHGEDFN EDODQFHIRUZDUGQHVV EDODQFH
UHDFWLRQ FRQVROLGDWLRQPRGLILFDWLRQ QRUPDOF\IHHGEDFN VWDELOLW\
EUHDNXSUHVWPRWLRQDQGWKHOLNH
WK7KHVLV7KH)XQFWLRQDOLW\1RQIXQFWLRQDOLW\3ULQFLSOH
7KHWZHQW\VHYHQWKWKHVLVLVFDOOHGWKHIXQFWLRQDOLW\QRQIXQFWLRQDOLW\
SULQFSOH RQ WKH SUHVHQFH RI IXQFWLRQ LQ WKH FDWHJRU\ RI RXWFRPH LQ
H[LVWHQWLDOGLDOHFWLFVZKLFKLVILUVWZRUNHGRXWLQ)3+&$LQWKDWLIWKHUH
LVWKHSUHVHQFHRIDFWLRQIRUZKLFKVRPHWKLQJRUVRPHRQHLVILWWHGWKHUHLV
OLNHZLVH WKH UHODWLYH ODFN RI DFWLRQ IRU ZKLFK VRPHWKLQJ RU VRPHRQH LV
ILWWHG7KHUHLVQRIXQFWLRQDOLW\ZLWKRXWQRQIXQFWLRQDOOLW\DQGYLFHYHUVD
$IXQFWLRQVKRXOGQRWEHFRQIXVHGZLWKDQDOWHUQDWLYHIXQFWLRQZKLFK
LVMXVWDQRWKHUNLQGRIIXQFWLRQMXVWDVQRQIXQFWLRQVKRXOGQRWEHFRQIXVHG
ZLWK G\VIXQFWLRQ ZKLFK KDV PRUH WR GR ZLWK PDOIXQFWLRQ DQG LV WKXV
UHODWHGPRUHWRWKHUHJUHVVLRQSURJUHVVLRQSULQFLSOH
,Q DGGLWLRQ EHLQJ IXQFWLRQDO RU XVHIXO DQG EHLQJ QRQIXQFWLRQDO RU
XVHOHVVGRQRWKDYHWREHPXWXDOO\H[FOXVLYHDVWKHWZRFDQFRPHLQDOO
VKDSHV DQG VL]HV RU LQ GLIIHUHQW GHJUHHV $QG ZKDW LV IXQFWLRQDO DW RQH
WLPHPD\EHFRPHQRQIXQFWLRQDODWDQRWKHUWLPHDQGYLFHYHUVD
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
)RULQVWDQFHRQWKHRQHKDQGWKHUHLVIXQFWLRQDOLW\LQRXWFRPHHJ
WKHSUHVHQFHRIDFWLRQIRUZKLFKVRPHWKLQJRUVRPHRQHLVILWWHGDVVKRZQ
LQ WKH XVH RI DSKURGLVLDFV IRU VH[XDOLW\ LQ 6HF WKH SUHVHQFH RI
DFWLRQIRUZKLFKVRPHWKLQJLVILWWHGDVVKRZQLQGDLU\SURGXFWVZKLFKDUH
D ULFK VRXUFH RI GLHWDU\ FDOFLXP EXW DOVR SURYLGH SURWHLQ SKRVSKRUXV
YLWDPLQ$DQGYLWDPLQ'LQ6HFWKHSUHVHQFHRIDFWLRQIRUZKLFK
VRPHWKLQJ LV ILWWHG DV VKRZQ LQ WKH VWXG\ RI ELRPDVV S\UDPLGV ZKHQ
ELRPDVV LV WR FRQWULEXWH WR WKH RYHUDOO IORZ RI HQHUJ\ LQ 6HF WKH
SUHVHQFHRIDFWLRQIRUZKLFKVRPHWKLQJLVILWWHGDVVKRZQLQUDZIRRGLVP
ZKHQ LWV DGYRFDWHV DUJXH WKDW LW KDV SRVLWLYH KHDOWK HIIHFWV DIRUHFLWHG LQ
6HFWKHSUHVHQFHRIDFWLRQIRUZKLFKVRPHWKLQJLVILWWHGDVVKRZQ
LQ WKH ULVH RI 0DOWKXVLDQLVP LQ WKH WK FHQWXU\ DV D UHEXNH WR :LOOLDP
*RGZLQ DQG WKH 0DUTXLV GH &RQGRUFHW LQ 6HF WKH SUHVHQFH RI
DFWLRQIRUZKLFKVRPHWKLQJLVILWWHGDVVKRZQLQWKHH[LVWHQFHRIIRUDJLQJ
LQ WKH ROGHU GD\V ZKHQ LW ZDV WKH VROH PRGH RI H[LVWHQFH IRU KXPDQ
EHLQJVIRUWKHYDVWPDMRULW\RIKXPDQKLVWRU\LQ6HFWKHSUHVHQFH
RI DFWLRQ IRU ZKLFK VRPHWKLQJ LV ILWWHG DV VKRZQ LQ WKH ROGIDVKLRQHG
SUDFWLFHRINLOOLQJDQLPDOVLQWKHROGHUGD\VLQVRIDUDVLWVHUYHGWKHQHHG
RI IRRG HYHQ ZKHQ WKH DQLPDOV H[SHULHQFHG
XQGXH
H[FLWHPHQW DQG
GLVFRPIRUW
LQ6HFWKHSUHVHQFHRIDFWLRQIRUZKLFKVRPHWKLQJLV
ILWWHGDVVKRZQLQWKHULVHRIWKHIDVWIRRGUHVWDXUDQWWRFRLQFLGHZLWKWKH
DGYHQW RI WKH DXWRPRELOH LQ WKH 86 DIWHU ::, LQ 6HF WKH
SUHVHQFHRIDFWLRQIRUZKLFKVRPHWKLQJLVILWWHGDVVKRZQLQWUDGLWLRQDO
PDUNHWLQJV\VWHPVZKLFKVHUYHGZHOOWKHROGHUPDUNHWLQJIUDPHZRUNVLQ
&KLQDDQGWKHUHVWRI$VLDLQWKHROGHUGD\VLQ6HFWKHSUHVHQFHRI
DFWLRQ IRU ZKLFK VRPHWKLQJ LV ILWWHG DV VKRZQ LQ WKH WHFKQLTXH RI GHHS
IULHG IRRG LQ UHVWDXUDQWV LQ WKH ROGHU GD\V ZKLFK ZDV ZLGHO\ XVHG IRU
FRRNLQJIRRGLQ$PHULFDQIDVWIRRGUHVWDXUDQWVLQ6HFWKHSUHVHQFH
RIDFWLRQIRUZKLFKVRPHWKLQJLVILWWHGDVVKRZQLQWKHH[DPSOHRIRQO\D
FRXSOHRIDURPDVZKLFKDUHLPSRUWDQWIRUWKHVPHOORIFRIIHHDVWKH\
DUH VXIILFLHQWO\ FRQFHQWUDWHG HQRXJK WR VHUYH WKH HVVHQWLDO IXQFWLRQ WR
GHWHUPLQH WKH VSHFLILF IODYRU WKUHVKROG LQ TXHVWLRQ LQ 6HF WKH
SUHVHQFH RI DFWLRQ IRU ZKLFK VRPHWKLQJ LV ILWWHG DV VKRZQ LQ WKH ROGHU
GD\VZKHQNLOOLQJDQLPDOVZDVDFFHSWHGLQVRIDUDVLWVHUYHGWKHIXQFWLRQRI
IRRGSURYLVLRQLQ6HFWKHSUHVHQFHRIDFWLRQIRUZKLFKVRPHWKLQJLV
ILWWHG DV VKRZQ LQ WKH XVH RI JODVV MDUV WR VHUYH WKH IXQFWLRQ RI IRRG
SUHVHUYDWLRQLQWKHWKFHQWXU\LQ6HFWKHSUHVHQFHRIDFWLRQIRU
ZKLFKVRPHWKLQJLVILWWHGDVVKRZQLQWKHLQVWLWXWLRQRIKRPHPDGHIRRG
LQ WKH ROGHU GD\V ZKHQ LW VHUYHG ZHOO WKH DJULFXOWXUDO HFRQRP\ LQ 6HF
WKHSUHVHQFHRIDFWLRQIRUZKLFKVRPHWKLQJLVILWWHGDVVKRZQLQWKH
XVHRIIRRGLWHPVZKLFKDUHWKHPRVWYLVXDOO\SHUIHFWVRWKH\VHUYHWKH
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
IXQFWLRQ IRU IRRG SKRWRJUDSK\ LQ 6HF DQG WKH SUHVHQFH RI DFWLRQ
IRUZKLFKVRPHWKLQJLVILWWHGDVVKRZQLQWKHXVHRIORFDOLQJUHGLHQWVDQG
WHFKQLTXHVIRUIRRGSUHSDUDWLRQLQDJLYHQUHJLRQRIWKHZRUOGLQWKHROGHU
GD\VVLQFHWKH\VHUYHGWKHIXQFWLRQRIDGDSWLQJWRWKHORFDOHQYLURQPHQWV
DWWKHWLPHLQ6HF
2Q WKH RWKHU KDQG WKHUH LV QRQIXQFWLRQDOLW\ LQ RXWFRPH HJ WKH
UHODWLYHODFNRIDFWLRQIRUZKLFKVRPHWKLQJRUVRPHRQHLVILWWHGDVVKRZQ
LQ WKH RFFXUUHQFH RI WKH SODFHER HIIHFW LQ FHUWDLQ FDVHV DERXW WKH
HIIHFWLYHQHVVRIDSKURGLVLDFVLQ6HFWKHUHODWLYHODFNRIDFWLRQIRU
ZKLFKVRPHWKLQJLVILWWHGDVVKRZQLQGDLU\SURGXFWVZKLFKDUHQRWZHOO
DFFHSWHGE\WKRVHZKRDUHODFWRVHLQWROHUDQWDQGDUHWKXVXVHOHVVWRWKHVH
SHRSOH LQ 6HF WKH UHODWLYH ODFN RI DFWLRQ IRU ZKLFK VRPHWKLQJ LV
ILWWHG DV VKRZQ LQ WKH VWXG\ RI ELRPDVV S\UDPLGV ZKHQ DOO ELUGV KDYH
EHDNV DQG VNHOHWRQV ZKLFK GHVSLWH WDNLQJ XS PDVV DUH QRW HDWHQ E\ WKH
QH[WWURSKLFOHYHOVRLQDS\UDPLGRIELRPDVVWKHVNHOHWRQVDQGEHDNV
ZRXOGVWLOOEHTXDQWLILHGEXWWKH\GRQRWFRQWULEXWHWRWKHRYHUDOOIORZ
RIHQHUJ\LQ6HFWKHUHODWLYHODFNRIDFWLRQIRUZKLFKVRPHWKLQJLV
ILWWHGDVVKRZQLQUDZIRRGLVPZKHQWKHFULWLFVDUJXHWKDWHQ]\PHVDV
ZLWK RWKHU SURWHLQV FRQVXPHG LQ WKH GLHW DUH GHQDWXUHG DQG HYHQWXDOO\
O\VHG E\ WKH GLJHVWLYH SURFHVV UHQGHULQJ WKHP QRQIXQFWLRQDO DQG
WKHUHIRUHWKLVTXHVWLRQVWKHFODLPE\UDZIRRGLVWVWKDWGLJHVWLYHHQ]\PHV
LQUDZ IRRGV>VXFKDVDP\ODVHVSURWHDVHVDQGOLSDVHV@DLGGLJHVWLRQLQ
6HF WKH UHODWLYH ODFN RI DFWLRQ IRU ZKLFK VRPHWKLQJ LV ILWWHG DV
VKRZQ LQ WKH UHODWLYH LUUHOHYDQFH RI 0DOWKXVLDQLVP ZKLFK JHQHUDOO\
EHFDPHDOHVVFRPPRQLQWHOOHFWXDOWUDGLWLRQDVWKHWKFHQWXU\DGYDQFHG
PRVWO\DVDUHVXOWRIWHFKQRORJLFDOLQFUHDVHVWKHRSHQLQJRIQHZWHUULWRU\
WR DJULFXOWXUH DQG LQFUHDVLQJ LQWHUQDWLRQDO WUDGH LQ 6HF WKH
UHODWLYH ODFN RI DFWLRQ IRU ZKLFK VRPHWKLQJ LV ILWWHG DV VKRZQ LQ WKH
DOPRVWFRPSOHWHGLVDSSHDUDQFHRIIRUDJLQJQRZDGD\VZKHQLWLVQRORQJHU
IXQFWLRQDOLQRXUWLPHDVLWLVQRORQJHUSUDFWLFHGH[FHSWDIHZJURXSV
RQHDUWKLQ6HFWKHUHODWLYHODFNRIDFWLRQ IRU ZKLFKVRPHWKLQJLV
ILWWHGDVVKRZQLQWKHEDQRINLOOLQJIRUIRRGQRZDGD\VLQWKH86LIWKH
DQLPDOV DUH WR VXIIHU IURP
XQGXH
H[FLWHPHQW DQG GLVFRPIRUW
VR WKH
ROGIDVKLRQHG SUDFWLFH RI NLOOLQJ IRU IRRG DW DQ\ FRVW LV QR ORQJHU
IXQFWLRQDO LQ RXU WLPH ZKLFK UHTXLUHV D QHZ HWKLFDO VWDQGDUG IRU DQLPDO
ULJKWV LQ 6HF WKH UHODWLYH ODFN RI DFWLRQ IRU ZKLFK VRPHWKLQJ LV
ILWWHGDVVKRZQLQWKHULVHRI&DOLIRUQLDFXLVLQHLQWKHVDQGVWR
UHSODFH ZKDW:DWHUVFDOOHGWKH79IUR]HQIRRGFXOWXUHVLQFH WKH IDVW
IRRGFXLVLQHLV QRORQJHUVXIILFLHQWO\ IXQFWLRQDOLQRXUWLPHLQ ZKLFKDV
:DWHUV H[SODLQHG LWV QRW HQRXJK WR OLEHUDWH \RXUVHOI SROLWLFDOO\ WR
OLEHUDWH \RXUVHOI VH[XDOO\\RX KDYH WR OLEHUDWH DOO WKH VHQVHV LQ 6HF
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
WKHUHODWLYHODFNRIDFWLRQIRUZKLFKVRPHWKLQJLVILWWHGDVVKRZQLQ
WKHFUHDWLRQRIWKH6WDWH)RRGDQG'UXJ$GPLQLVWUDWLRQLQ&KLQDLQ
ZKHQWKHROGHUWUDGLWLRQDOPDUNHWLQJV\VWHPVDUHQRORQJHUIXQFWLRQDOLQ
RXUWLPHEHFDXVHRIWKHLUIDLOXUHWRPDNHLPSURYHPHQWVWRHLWKHUTXDOLW\
RU VDIHW\ E\ FRQWHPSRUDU\ KLJKHU VWDQGDUGV LQ 6HF WKH UHODWLYH
ODFN RI DFWLRQ IRU ZKLFK VRPHWKLQJ LV ILWWHG DV VKRZQ LQ WKH VZLWFK WR
WUDQVIDWIUHHDOWHUQDWLYHVIRUGHHSIU\LQJLQUHVWDXUDQWVQRZDGD\VVXFK
WKDW WKH WHFKQLTXH RI GHHS IULHG IRRG LV QR ORQJHU IXQFWLRQDO LQ WKRVH
SODFHV LQ RXU WLPH LQ 6HF WKH UHODWLYH ODFN RI DFWLRQ IRU ZKLFK
VRPHWKLQJ LV ILWWHG DV VKRZQ LQ WKH H[DPSOH RI GLIIHUHQW DURPD
FRPSRXQGVLQFRIIHHPDQ\RIZKLFKDUHQRWSHUFHSWLEOHZLWKWKHKXPDQ
QRVH VR WKH\ DUH QRW FRXQWHG RU GR QRW VHUYH WKH IXQFWLRQ WR GHWHUPLQH
WKHVSHFLILFIODYRUWKUHVKROGLQTXHVWLRQLQ6HFWKHUHODWLYHODFN
RI DFWLRQ IRU ZKLFK VRPHWKLQJ LV ILWWHG DV VKRZQ LQ WKH PRUH KXPDQH
PHWKRGVRIDQLPDOVODXJKWHUUHJXODWHGE\86'$QRZDGD\VVXFKWKDWWKH
ROGHU LQKXPDQH PHWKRGV FDQ QR ORQJHU VHUYH WKH IXQFWLRQ RI D GLIIHUHQW
VWDQGDUG IRU DQLPDO ULJKWV LQ RXU WLPH LQ 6HF WKH UHODWLYH ODFN RI
DFWLRQIRUZKLFKVRPHWKLQJLVILWWHGDVVKRZQLQWKHXVHRIFDQVQRZDGD\V
IRUIRRGSUHVHUYDWLRQLQVWHDGVLQFHFDQVDUHFKHDSHUDQGTXLFNHUWRPDNH
DQG PXFK OHVV IUDJLOH WKDQ JODVV MDUV VR JODVV MDUV QR ORQJHU VHUYH WKH
IXQFWLRQ RI IRRG SUHVHUYDWLRQ LQ RXU WLPH DOWKRXJK WKH\ KDYH UHPDLQHG
SRSXODUIRUVRPH KLJKYDOXH SURGXFWVLQ6HFWKHUHODWLYHODFNRI
DFWLRQIRUZKLFKVRPHWKLQJLVILWWHGDVVKRZQLQWKHULVHRIWKHIDVWIRRG
LQGXVWU\GXHWRXUEDQGHYHORSPHQWVRWKHLQVWLWXWLRQRIKRPHPDGHIRRG
LV QR ORQJHU GRPLQDQW LQ LWV IXQFWLRQ IRU D SRVWLQGXVWULDO VRFLHW\ LQ RXU
WLPHLQ6HFWKHUHODWLYHODFNRIDFWLRQIRUZKLFKVRPHWKLQJLVILWWHG
DV VKRZQ LQ WKH GHOHWLRQ RI VW\OHG IRRG ZKLFK LV GLVFDUGHG DIWHU WKH
SKRWR VKRW VR LW LV QR ORQJHU XVHIXO WR VHUYH WKH IXQFWLRQ RI IRRG
SKRWRJUDSK\ DIWHUZDUG LQ 6HF DQG WKH UHODWLYH ODFN RI DFWLRQ IRU
ZKLFKVRPHWKLQJLVILWWHGDVVKRZQLQWKHULVHRIIXVLRQFXLVLQHLQWKHDJH
RIJOREDOL]DWLRQVXFKWKDWWKHULJLGUHJLRQDOFXLVLQHVZKLFKZHUHGRPLQDQW
LQ WKH ROGHU GD\V DUH QR ORQJHU PXFK IXQFWLRQDO LQ RXU WLPH UHODWLYHO\
VSHDNLQJRIFRXUVH JLYLQJ ZD\WR IXVLRQFXLVLQH PRUHDQG PRUHLQ6HF
$QGWKHUHYHUVHGLUHFWLRQDOVRKROGVWUXH
$JDLQLWVKRXOGEHVWUHVVHG KRZHYHUWKDWWKHUHDUHGLIIHUHQWVKDGHV
RI JUD\ RU GLIIHUHQW GHJUHHV RI WUXWK LQ WKH WZR RSSRVLWHV DQG WKH
FODVVLILFDWLRQ LV QRW QHFHVVDULO\ PXWXDOO\ H[FOXVLYH HLWKHU ,Q IDFW HYHQ
ZKHQVRPHFRPELQDWLRQVRIWKHWZRRFFXUWKH\RQO\HQG XSVKDULQJWKH
VDPHGLDOHFWLFUHODWLRQVKLSEXWLQDGLIIHUHQWGHJUHH
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
$OVR WKHUH DUH VRPH RWKHU UHODWLRQVKLSV DV D NLQG RI IDPLO\
UHVHPEODQFH ZKLFK KDYH VRPHWKLQJ LQ FRPPRQ ZLWK WKH SULQFLSOH EXW
WKH\ DUH QRW H[DFWO\ WKH VDPH EXW RQO\ PRUH RU OHVV FRPSDUDEOH ZKLFK
YDULHVIURPFDVHWRFDVH
*RRGH[DPSOHVRIIDPLO\UHVHPEODQFHLQUHODWLRQWRWKHSULQFLSOHDUH
XVHIXOQHVVQRQXVHIXOQHVV
YDOXHQHVVQRQYDOXHQHVV
XVHIXOQHVV
XVHOHVVQHVVDQGWKHOLNH
WK7KHVLV7KH3RVW+XPDQ,QTXLVLWLRQ
$QG WKH WZHQW\HLJKWK WKHVLV LV DERXW WKH UROH RI SRVWKXPDQV
ZKLFK , RULJLQDOO\ SURSRVHG LQ P\ SUHYLRXV ERRNV VWDUWLQJ ZLWK WKH ILUVW
ERRN WLWOHG 7KH )XWXUH RI +XPDQ &LYLOL]DWLRQ LQ DQG DOO RWKHUV
DIWHUZDUGV
$V DOUHDG\ SRLQWHG RXW LQ 6HF , QHHG WR HPSKDVL]H DV WKLV LV
VRPHWKLQJWKDW,XVHGWRUHSHDWDOPRVWYHUEDWLPIURPP\SUHYLRXVERRNV
WZRFODULILFDWLRQVKHUHDERXWWKHWHUPSRVWKXPDQDVDQHRORJLVPLQP\
ZRUNV
)LUVWO\ WKH ZRUG SRVWKXPDQ KHUH VKRXOG QRW EH FRQIXVHG ZLWK
DQRWKHUWHUPZKLFKORRNVVLPLODUEXWKDVDWRWDOO\GLIIHUHQWPHDQLQJLQWKH
OLWHUDWXUH RI SRVWPRGHUQLVP QDPHO\ SRVWKXPDQLVPZKLFK
FRQVWLWXWHVDFULWLTXHRIKXPDQLVPDVWUDGLRQDOO\XQGHUVWRRGHVSHFLDOO\
WKRXJK QRW H[FOXVLYHO\ LQ UHODWLRQ WR WKH LGHD RI SURJUHVV LQ VFLHQFH DQG
UHDVRQLQWKH(QOLJKWHQPHQWSURMHFW:.
0\ ZRUNV UHMHFW WKH SURMHFW RI SRVWPRGHUQLVP DQG SURSRVH WKH
IXWXUHZRUOGRIZKDW,RULJQDOO\FDOOHGDIWHUSRVWPRGHUQLW\LQ)+&DQG
)&'IRULQVWDQFH
$QG VHFRQGO\ WKH ZRUG SRVWKXPDQ KHUH VKRXOG DOVR QRW EH
FRQIXVHG ZLWK D VLPLODU WHUP ZKLFK LV XVHG WR FKDPSLRQ WKH LGHRORJ\ RI
WHFKQRORJ\ IRU WKH IXWXUH FRH[LVWHQFH EHWZHHQ KXPDQV DQG F\ERUJV LQ
WUDQVKXPDQLVP:.D
,QVWHDG P\ WHUP SRVWKXPDQ LQ UHODWLRQ WR SRVWKXPDQLVP DOVR
UHMHFWVWUDQVKXPDQLVPHVSHFLDOO\WKRXJKQRWH[FOXVLYHO\LQUHODWLRQWR
WKH SURPLVHV RI WHFKQRORJ\ DQG UHIHUV WR VRPHWKLQJ HOVH DOWRJHWKHU WKDW
LVWKHIXWXUHH[WLQFWLRQRIKXPDQVDQGLWVSRVWKXPDQVXFFHVVRUVLQGHHS
VSDFHDQGEH\RQGXQWRPXOWLYHUVHV
0\ FULWLTXH RI WUDQVKXPDQLVP ZDV PRUH H[WHQVLYHO\ HODEURDWHG LQ
6HFRI%(3(MXVWDVP\FULWLTXHRIGLIIHUHQWIXWXULVWLFVFHQDULRVRI
ILFWLRQDODUWLILFLDOLQWHOOLJHQFHLQVFLHQFHILFWLRQZDVJLYHQLQ6HFRI
)3+&20
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
:LWK WKHVH WZR FODULILFDWLRQV LQ PLQG DV VXPPDUL]HG LQ 7DEOH
WKH SRVWKXPDQ LQTXLVLWLRQ LQ WKH VWXG\ RI FXOLQDU\ DUW FDQ EH
DGGUHVVHG LQ UHODWLRQ WR ILYH PDLQ GLUHFWLRQV EDVHG RQ P\ LQTXLVLWLYH
WKHRU\RIFXOLQDU\DUWDVDQDO\VHGLQWKLVERRNWRJHWKHUZLWKP\YLVLRQV
DVDOUHDG\ZRUNHGRXWLQP\SUHYLRXVERRNV
)LUVWO\ WKH SRVWKXPDQ LQTXLVLWLRQ LQ WKH VWXG\ RI FXOLQDU\ DUW ZLOO
OHDUQIURPP\LQTXLVLWLYHWKHRU\RIFXOLQDU\DUWLQUHODWLRQWRWKHGLDOHFWLF
FRQWH[W RI QR LQJUHGLHQWV ZLWKRXW WHFKQLTXHV DQG YLFH YHUVD LQ WKH
FRQWH[WRIFXOLQDU\DUW
6HFRQGO\WKHSRVWKXPDQLQTXLVLWLRQLQWKHVWXG\RIFXOLQDU\DUWZLOO
OHDUQ IURP P\ LQTXLVLWLYH WKHRU\ RI FXOLQDU\ DUW LQ UHODWLRQ WR WKH IRXU
SHUVSHFWLYHVRIWKHPLQGQDWXUHVRFLHW\DQGFXOWXUH
7KLUGO\ WKH SRVWKXPDQ LQTXLVLWLRQ LQ WKH VWXG\ RI FXOLQDU\ DUW ZLOO
OHDUQ IURP P\ LQTXLVLWLYH WKHRU\ RI FXOLQDU\ DUW LQ UHODWLRQ WR WKH QRQ
SULYLOHJHRIDQ\VSHFLILFWKHRU\RYHURWKHUVLQWKHOLWHUDWXUHDQGWKHQRQ
LQWHJUDWLRQ RI WKHP DOO DV WKH\ DUH QRW QHFHVVDULO\ FRPSDWLEOH ZLWK HDFK
RWKHU
)RXUWKO\WKHSRVWKXPDQLQTXLVLWLRQLQWKH VWXG\RIFXOLQDU\DUW ZLOO
KDYH WR FRQIURQW WKH QHZ FKDOOHQJHV DV SRVHG E\ WKH ORQJWHUP
FLYLOL]DWLRQDOGHYHORSPHQWRILQWHOOLJHQWOLIHLQWKHGLVWDQWIXWXUHERWKKHUH
RQWKLVSODQHW(DUWKDQGHOVHZKHUHLQGHHSVSDFHXQWLOPXOWLYHUVHV
$VWKLVLVVRPHWKLQJWKDW,UHJXODUO\SRLQWHGRXWLQP\SUHYLRXVERRNV
IRU EDFNJURXQG LQIRUPDWLRQ DQG VXPPDUL]H KHUH DOPRVW YHUEDWLP ZLWK
VRPH XSGDWHV,DOUHDG\ ZRUNHGRXWLQ P\ QXPHURXVERRNV ZKDW WKHVH
QHZ FKDOOHQJHV ZLOO EH DQG SURYLGH GLIIHUHQW RULJLQDO YLVLRQV WR PHHW
WKHPHVSHFLDOO\LQUHJDUGWRWKHIXWXUHHYROXWLRQVRIWKHPLQGHJWKH
VXSHUVHVVLRQ FRPSXWLQJ PHWDPRUSKLF KXPRU WKH FRQWUDULDQ
SHUVRQDOLW\WKHK\SHUPDUWLDOERG\WKHK\SHUVH[XDOERG\IORDWLQJ
FRQVFLRXVQHVV K\SHUVSDWLDO FRQVFLRXVQHVV WKLQNLQJ PDFKLQHV
XQIROGLQJ XQFRQVFLRXVQHVV WKLQNLQJ URERWV JHQHWLFDOO\ DOWHUHG
VXSHULRUEHLQJVF\ERUJVDQGRWKHUVRIQDWXUHHJWUDQVGLVFLSOLQDU\
DUFKLWHFWXUH FUHDWLRQDO FKHPLVWU\ PXOWLODWHUDO VRXQG UHVHWWOHPHQW
JHRORJ\ SRVWFRVPRORJ\ WKHDOWHUDWLRQRI VSDFHWLPHWKHFUHDWLRQ
RI QHZ PDWWHUHQHUJ\ VHOHFWLYH JHRPHWU\ DQG WKH OLNH RI VRFLHW\
HJ SDQRUDPLF WUDQVSRUWDWLRQ F\FOLFDOSURJUHVVLYH PLJUDWLRQ
UHIOHFWLYH FULPLQRORJ\ LQWHUYHQWLYHUHVKDSLQJ JHRJUDSK\ GHWDFKHG
JDPEOLQJKHWHURGR[HGXFDWLRQPXOWLIDFHWHGZDUDQGSHDFHYLUWXDO
RUJDQL]DWLRQV GLIIHUHQW YHUVLRQV RI SRVWFDSLWDOLVP DQG SRVW
GHPRFUDF\WKHPRYHPHQWRIF\FOLFDOSURJUHVVLRQDWERWKVWUXFWXUDODQG
V\VWHPLF OHYHOV DPELYDOHQW WHFKQRORJ\ DQG VR IRUWK DQG RI FXOWXUH
HJ LQWHUDFWLYH VHPDQWLFV WUDQVGLVFLSOLQDU\ SHUIRUPLQJ DUWV
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
7RZDUGVWKH3RVW+XPDQ,QTXLVLWLRQ
7KLVSRVWKXPDQLQTXLVLWLRQLQWKHVWXG\RIFXOLQDU\DUWWRWUDQVFHQG
ERWKLQJUHGLHQWVDQGWHFKQLTXHVFDQEHXQGHUVWRRGLQWHUPVRIQLQHJUHDW
IXWXUH WUDQVIRUPDWLRQV RI FXOLQDU\ DUW LQ UHODWLRQ WR WKH PLQG QDWXUH
VRFLHW\DQGFXOWXUHDVH[SODLQHGEHORZDQGVXPPDUL]HGLQ7DEOH
1LQH*UHDW)XWXUH7UDQVIRUPDWLRQVRI&XOLQDU\$UW
7KHQLQHJUHDWIXWXUHWUDQVIRUPDWLRQVRIFXOLQDU\DUWLQUHODWLRQWRWKH
PLQG QDWXUH VRFLHW\ DQG FXOWXUH FDQ EH H[SODLQHG KHUHDIWHU ZLWK WKH
FDYHDWKRZHYHUWKDWWKHFODVVLILFDWLRQLQWHUPVRIQLQHLVVROHO\DHVWKHWLF
DQG XWLOLWDULDQ LOOXVWUDWLYH DV WKHUH LV QR REMHFWLYH EDVLV WKDW LW PXVW EH
FODVVLILHG LQ WHUP RI QLQH DV WKLV LV VRPHWKLQJ WKDW , RIWHQ VWUHVVHG DQG
UHSHDWHGLQP\SUHYLRXVERRNVDOEHLWLQWKHFRQWH[WRIGLIIHUHQWWRSLFV
7KH)LUVW*UHDW)XWXUH7UDQVIRUPDWLRQRI&XOLQDU\$UW
7KHILUVWJUHDWIXWXUHWUDQVIRUPDWLRQRIFXOLQDU\DUWLQWKHSRVWKXPDQ
HUDFRQFHUQVZKDW,RULJLQDOO\FDOOQHZJRDOVLQUHODWLRQWRWKHPLQG
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7KLV VHDUFK IRU QHZ JRDOV ZLOO JLYH IXWXUH DGYDQFHG KXPDQV DQG
ODWHU WKHLU VXFFHVVRUV QDPHO\ WKH SRVWKXPDQV WKH FDSDFLW\ WR EH
PRWLYDWHGWRLPSURYHFXOLQDU\DUWLQDZD\WKDWFXUUHQWKXPDQVFDQQRW
7KHUH DUH DOUHDG\ VRPH LQGLFDWLRQV WKDW WKH IXWXUH RI FXOLQDU\ DUW LV
PRYLQJWRZDUGWKLVGLUHFWLRQ
&RQVLGHUIRULOOXVWUDWLRQWKH GLIIHUHQWJRDOVDVDOUHDG\VHHQLQWKH
KLVWRU\ RI FXOLQDU\ DUW VXFK DV HQKDQFHG VH[XDOLW\ 6HF EDODQFHG
QXWULWLRQ 6HF VXVWDLQDEOH IRRG FKDLQV 6HF UDZ IRRGLVP
6HFSRSXODWLRQFRQWURO6HFWKHLGHDORIJOREDOL]DWLRQIRU
IRRGVHFXULW\6HFWKHGHFHQWWUHDWPHQWRIDQLPDOV6HFWKH
JRDORIWKHFXOLQDU\UHYROXWLRQ6HFIRRGVDIHW\6HFKHDOWK
FRQFHUQV LQ FRRNLQJ 6HF WKH KXPDQH NLOOLQJ RI DQLPDOV 6HF
WKHQHHGIRUIRRGSUHVHUYDWLRQ6HFWKHJORULILFDWLRQRIIDVW
IRRG E\ WKH IRRG LQGXVWU\ 6HF WKH EHDXW\ RI WKH PRVW YLVXDOO\
SHUIHFW IRRGVWXIIV 6HF DQG WKH LGHDO RI IXVLRQ FXLVLQHV 6HF
IRULQVWDQFH
0RUH LPSRUWDQWO\ WKLV IXWXUH TXHVW IRU QHZ JRDOV VKRXOG DOVR EH
XQGHUVWRRG LQ UHODWLRQ WR P\ SUHYLRXV ZRUNV RQ WKH IXWXUH SRVWKXPDQ
VXSHUVHVVLRQ RI WKH KXPDQ PLQG IURP WKH FRPELQHG SHUVSHFWLYHV RI WKH
PLQG QDWXUH VRFLHW\ DQG FXOWXUHZLWK JRRG H[DPSOHV OLNH WKH
VXSHUVHVVLRQ FRPSXWLQJ PHWDPRUSKLF KXPRU WKH FRQWUDULDQ
SHUVRQDOLW\WKHK\SHUPDUWLDOERG\WKHK\SHUVH[XDOERG\IORDWLQJ
FRQVFLRXVQHVV K\SHUVSDWLDO FRQVFLRXVQHVV WKLQNLQJ PDFKLQHV
XQIROGLQJ XQFRQVFLRXVQHVV WKLQNLQJ URERWV JHQHWLFDOO\ DOWHUHG
VXSHULRUEHLQJVF\ERUJVDQGRWKHUV
)RU LQVWDQFH PRVW DGYDQFHG IRUPV RI IXWXUH LQWHOOLJHQW OLIH LQ GHHS
VSDFHXQWLOPXOWLYHUVHVHJIORDWLQJFRQVFLRXVQHVVGRQRWQHHGWRKDYH
WKH SK\VLFDO ERGLHV WKDW FXUUHQW KXPDQV KDYH DQG WKHUHIRUH GR QRW
QHFHVVDULO\QHHGWKHIRRGVWXIIVWKDWFXUUHQWKXPDQVGR
,QDQ\HYHQWDOOWKHVHDUHMXVWVRPHLOOXVWUDWLYHUHODWLYHO\SULPLWLYH
H[DPSOHVLQRXUWLPHRIFRXUVHEXWWKHLPSRUWDQWSRLQWWRUHPHPEHUKHUH
LVWKDWWKHVHDUFKIRUGLIIHUHQWQHZJRDOVZLOOIXUWKHUWUDQVIRUPWKHVWXG\RI
FXOLQDU\DUWDWWKH PRUHDGYDQFHGOHYHOLQWKHSRVWKXPDQIXWXUHWKDWWKH
KXPDQZRUOGKDVQHYHUNQRZQ
7KH6HFRQG*UHDW)XWXUH7UDQVIRUPDWLRQRI&XOLQDU\$UW
7KH VHFRQG JUHDW IXWXUH WUDQVIRUPDWLRQ RI FXOLQDU\ DUW LQ WKH SRVW
KXPDQ HUD FRQFHUQV ZKDW , RULJLQDOO\ FDOO QHZ PHDQV LQ UHODWLRQ WR WKH
PLQG
7KLV TXHVW IRU QHZ PHDQV ZLOO JLYH IXWXUH DGYDQFHG KXPDQV DQG
ODWHUWKHLUVXFFHVVRUVQDPHO\WKHSRVWKXPDQVWKHFDSDFLW\WRILQGQRYHO
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
RSWLRQVWRDFKLHYHWKHJRDOVRIFXOLQDU\DUWLQDZD\WKDWFXUUHQWKXPDQV
FDQQRW
7KHUH DUH DOUHDG\ VRPH LQGLFDWLRQV WKDW WKH IXWXUH RI FXOLQDU\ DUW LV
PRYLQJWRZDUGWKLVGLUHFWLRQ
&RQVLGHUIRULOOXVWUDWLRQWKHGLIIHUHQWPHDQVDVDOUHDG\VHHQLQWKH
KLVWRU\RIFXOLQDU\DUWVXFKDVVSDFHIRRGIRUVSDFHH[SORUDWLRQ6HF
DSKURGLVLDFV IRU VH[XDOLW\ 6HF IRRG JXLGH S\UDPLG IRU EHWWHU
QXWULWLRQ 6HF KHDOWK\ HFRORJLFDO S\UDPLG IRU VXVWDLQDEOH IRRG
FKDLQV6HFUDZIRRGIRUKHDOWKLHUDQGKLJKHUQXWULWLRQ6HF
ZDU DV D FKHFN RI RYHUSRSXODWLRQ 6HF DJULFXOWXUH WR VXSSRUW D
ODUJHU SRSXODWLRQ 6HF WKH DYRLGDQFH RI IHHG FURSV IRU PRUH
VXVWDLQDEOHIDUPLQJSUDFWLFHV6HFWKHXVHRIIUHVKLQJUHGLHQWVIRU
&DOLIRUQLDFXLVLQH6HFIRRGK\JLHQHWRDYRLGGLVHDVH6HF
PLFURZDYLQJ PHDW EHIRUH FRRNLQJ WR UHGXFH +&$V 6HF DQLPDO
VODXJKWHUIRUIRRG6HFFDQQLQJIRUIRRGSUHVHUYDWLRQ6HF
IDVW IRRG IRU XUEDQ OLIH 6HF KHUR IRRG LWHPV IRU IRRG
SKRWRJUDSK\6HFDQGHFOHFWLFIXVLRQFXLVLQHVIRUQHZGLVKHV6HF
IRULQVWDQFH
$OO WKHVH DUH MXVW VRPH LOOXVWUDWLYH UHODWLYHO\ SULPLWLYH H[DPSOHV LQ
RXU WLPH RI FRXUVH EXW WKH LPSRUWDQW SRLQW WR UHPHPEHU KHUH LV WKDW WKH
VHDUFKIRUGLIIHUHQWQHZPHDQVZLOOIXUWKHUWUDQVIRUPWKHVWXG\RIFXOLQDU\
DUW DW WKH PRUH DGYDQFHG OHYHO LQ WKH SRVWKXPDQ IXWXUH WKDW WKH KXPDQ
ZRUOGKDVQHYHUNQRZQ
7KH7KLUG*UHDW)XWXUH7UDQVIRUPDWLRQRI&XOLQDU\$UW
7KHWKLUGJUHDWIXWXUHWUDQVIRUPDWLRQRIFXOLQDU\DUWLQWKHSRVWKXPDQ
HUDFRQFHUQVZKDW,RULJLQDOO\FDOOQHZFRPSDULVRQVLQUHODWLRQWRQDWXUH
7KLVVHDUFKIRUQHZFRPSDULVRQVZLOOJLYHIXWXUHDGYDQFHGKXPDQV
DQG ODWHU WKHLU VXFFHVVRUV QDPHO\ WKH SRVWKXPDQV WKH DELOLW\ WR OHDUQ
IURPDQLPDOVSODQWVDQG WKHXQLYHUVHWKURXJKFRPSDULVRQDQGFRQWUDVW
DERXWWKHVWXG\RIFXOLQDU\DUWLQDZD\WKDWFXUUHQWKXPDQVFDQQRW
7KHUH DUH DOUHDG\ VRPH LQGLFDWLRQV WKDW WKH IXWXUH RI FXOLQDU\ DUW LV
PRYLQJWRZDUGWKLVGLUHFWLRQ
&RQVLGHU IRU LOOXVWUDWLRQ WKH GLIIHUHQW IRUPV RI FRPSDULVRQ DQG
FRQWUDVW VXFK DV DV DOUHDG\ VHHQ LQ WKH KLVWRU\ RI FXOLQDU\ DUW VXFK DV
GLIIHUHQWWURSKLFOHYHOVLQDIRRGFKDLQ6HFUDZIRRGLQWKHVWDWHRI
QDWXUH 6HF WKH DELOLW\ RI DQLPDOV DQG KXPDQV WR IHHO SDLQ 6HF
WKHFRQWUDVWEHWZHHQKXPDQVDQGDQLPDOVLQIRRGSUHSDUDWLRQ6HF
WKH YXOQHUDELOLW\ RI KXPDQV DQG DQLPDOV WR VWXQQLQJ 6HF
DQG WKH DSSHDO RI IUHVK IRRG LQ QDWXUH WR EH LPLWDWHG IRU IRRG SKRWRV LQ
DGYHUWLVHPHQW6HFIRULQVWDQFH
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
$OO WKHVH DUH MXVW VRPH LOOXVWUDWLYH UHODWLYHO\ SULPLWLYH H[DPSOHV LQ
RXU WLPH RI FRXUVH EXW WKH LPSRUWDQW SRLQW WR UHPHPEHU KHUH LV WKDW WKH
VHDUFK IRU GLIIHUHQW QHZ FRPSDULVRQV ZLOO IXUWKHU WUDQVIRUP WKH VWXG\ RI
FXOLQDU\DUWDWWKH PRUHDGYDQFHGOHYHOLQWKHSRVWKXPDQIXWXUHWKDWWKH
KXPDQZRUOGKDVQHYHUNQRZQ
7KH)RXUWK*UHDW)XWXUH7UDQVIRUPDWLRQRI&XOLQDU\$UW
7KH IRXUWK JUHDW IXWXUH WUDQVIRUPDWLRQ RI FXOLQDU\ DUW LQ WKH SRVW
KXPDQHUDFRQFHUQVZKDW,RULJLQDOO\FDOOQHZLQWHJUDWLRQVLQUHODWLRQWR
QDWXUH
7KLVVHDUFKIRUQHZLQWHJUDWLRQVZLOOJLYHIXWXUHDGYDQFHGKXPDQV
DQGODWHUWKHLUVXFFHVVRUVQDPHO\WKHSRVWKXPDQVWKHDELOLW\WROLYHDQG
LQWHUDFW ZLWK QDWXUH IRU WKH VWXG\ RI FXOLQDU\ DUW LQ D ZD\ WKDW FXUUHQW
KXPDQVFDQQRW
7KHUH DUH DOUHDG\ VRPH LQGLFDWLRQV WKDW WKH IXWXUH RI FXOLQDU\ DUW LV
PRYLQJWRZDUGWKLVGLUHFWLRQ
&RQVLGHU IRU LOOXVWUDWLRQ WKH GLIIHUHQW LQWHJUDWLRQV IRU WKH VWXG\ RI
FXOLQDU\ DUW DV DOUHDG\ VHHQ LQ WKH KLVWRU\ RI FXOLQDU\ DUW VXFK DV VSDFH
IRRGIRUD]HURJUDYLW\HQYLURQPHQW6HFVXVWDLQDEOHIRRGFKDLQVLQD
KHDOWK\HFRV\VWHP6HFVXVWDLQDEOHHQYLURQPHQWLQ UDZ YHJDQLVP
6HF VXVWDLQDELOLW\ EHWZHHQ QDWXUDO UHVRXUFHV DQG SRSXODWLRQ
JURZWK 6HF WKH DWWHQWLRQ WR WKH QDWXUDO F\FOH LQ VODVK DQG EXUQ
DJULFXOWXUH6HFWKHQHHGWRDYRLGGDPDJLQJWKHHFRV\VWHPV6HF
WKH DZDUHQHVV RI FHUWDLQ IRRGV ZKLFK GR QRW JR WRJHWKHU 6HF
DQG WKH FRH[LVWHQFH RI KXPDQV DQG ZKDOHV 6HF IRU
LQVWDQFH
0RUH LPSRUWDQWO\ WKLV IXWXUH TXHVW IRU QHZ LQWHJUDWLRQV VKRXOG DOVR
EH XQGHUVWRRG LQ UHODWLRQ WR P\ SUHYLRXV ZRUNV RQ WKH IXWXUH SRVW
KXPDQ DGYHQWXUHV LQWR GLIIHUHQW GLPHQVLRQV RI VSDFHWLPH XQWR
PXOWLYHUVHV IURP WKH FRPELQHG SHUVSHFWLYHV RI WKH PLQG QDWXUH VRFLHW\
DQG FXOWXUHZLWK JRRG H[DPSOHV OLNH WKH DOWHUDWLRQ RI VSDFHWLPH
7DEOH DQG 7DEOH PXOWLYHUVHV 7DEOH DQG 7DEOH
K\SHUVSDFH 7DEOH DQG 7DEOH WLPH WUDYHO 7DEOH DQG
7DEOHDQGRWKHUV
,Q DGGLWLRQ LQ P\ SUHYLRXV ERRN WLWOHG 7KH )XWXUH RI 3RVW+XPDQ
*HRORJ\,DOUHDG\HQYLVLRQHGWKHWKUHHJUHDWIXWXUHWUDQVIRUPDWLRQV
RI JHRORJ\ QDPHO\ VRODU JHRORJ\ JDODFWLF JHRORJ\ DQG FRVPLF
JHRORJ\ LQ WKH FRQWH[W RI P\ UHVHWWOHPHQW WKHRU\ RI JHRORJ\ LQ WKDW
KXPDQV DQG ODWHU SRVWKXPDQV ZLOO H[SORUH DQG PLJUDWH WR RWKHU SODQHWV
VRODUV\VWHPVJDOD[LHVDQGFRVPRVLQWKHORQJKDXO
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
7KHQ LQ DQRWKHU ERRN RI PLQH WLWOHG 7KH )XWXUH RI 3RVW+XPDQ
*HRJUDSK\ , OLQNHG WKH WZR ERRNV WRJHWKHU VLQFH JHRJUDSK\ KDV
PXFKWROHDUQIURPJHRORJ\DVLQSK\VLFDOJHRJUDSK\ZKLFKDVDOUHDG\
LQWURGXFHGLQ6HFRI)3+*(2*UHOLHVKHDYLO\RQWKHHDUWKVFLHQFHV
DQGGLVFXVVHGWKHVHDUFKIRUQHZH[SORUDWLRQVLQWKHFRQWH[WRIWKHWKUHH
IRUPVRIHQYLURQPHQWVRXWVLGHWKHSODQHW(DUWKQDPHO\ZKDW,RULJLQDOO\
FDOOHG VRODU JHRJUDSK\ JDODFWLF JHRJUDSK\ DQG FRVPLF
JHRJUDSK\DV D IXUWKHU HODERUDWLRQ RI WKH WKUHH JUHDW IXWXUH
WUDQVIRUPDWLRQVRIJHRORJ\LQ)3+*(2/
/DWHULQVWLOODQRWKHUERRNRIPLQHWLWOHG7KH)XWXUHRI3RVW+XPDQ
0LJUDWLRQ , HQYLVLRQHG WKH IXWXUH LQWHJUDWLRQV LQ GLIIHUHQW IRUPV
QDPHO\ ZKDW , RULJLQDOO\ FDOOHG VRODU PLJUDWLRQ JDODFWLF PLJUDWLRQ
FOXVWHU\PLJUDWLRQFRVPLFPLJUDWLRQDQGPXOWLYHUVDOPLJUDWLRQ
$QG WKHQ LQ DQ DGGLWLRQDO ERRN RI PLQH WLWOHG 7KH )XWXUH RI 3RVW
+XPDQ 7UDQVSRUWDWLRQ , HQYLVLRQHG WKH IXWXUH LQWHJUDWLRQV LQ
GLIIHUHQW IRUPV QDPHO\ ZKDW , RULJLQDOO\ FDOOHG VRODU WUDQVSRUWDWLRQ
JDODFWLF WUDQVSRUWDWLRQ FOXVWHU\ WUDQVSRUWDWLRQ FRVPLF
WUDQVSRUWDWLRQDQGPXOWLYHUVDOWUDQVSRUWDWLRQ
7KLVH[WHQVLRQLVFRQVLVWHQWZLWKP\RWKHUWKHRU\QDPHO\WKHWKHRU\
RI WKH F\FOLFDO SURJUHVVLRQ RI V\VWHP LQWHJUDWLRQ DQG IUDJPHQWDWLRQ LQ
)&'DWWKHVRFLDOV\VWHPLFOHYHODVDOUHDG\FODULILHGLQ6HF
DQGVKRZQEHORZ
/RFDO5HJLRQDO*OREDO6RODU
*DODFWLF&OXVWHU\0XOWLYHUVDO
$OO WKHVH DUH MXVW VRPH LOOXVWUDWLYH UHODWLYHO\ SULPLWLYH H[DPSOHV LQ
RXU WLPH RI FRXUVH EXW WKH LPSRUWDQW SRLQW WR UHPHPEHU KHUH LV WKDW WKH
VHDUFKIRUGLIIHUHQWQHZLQWHJUDWLRQVZLOOIXUWKHUWUDQVIRUPFXOLQDU\DUWDW
WKH PRUH DGYDQFHG OHYHO LQ WKH SRVWKXPDQ IXWXUH WKDW WKH KXPDQ ZRUOG
KDVQHYHUNQRZQ
)RU LQVWDQFH PRVW DGYDQFHG IRUPV RI IXWXUH LQWHOOLJHQW OLIH LQ GHHS
VSDFH XQWLO PXOWLYHUVHV HJ IORDWLQJ FRQVFLRXVQHVV K\SHUVSDWLDO
FRQVFLRXVQHVV XQIROGLQJ XQFRQVFLRXVQHVV HWF ZLOO QHHG WR DGDSW WR
GLIIHUHQW HQYLURQPHQWV ZLWK WKH VXEVHTXHQW LPSDFWV RQ LQJUHGLHQWV DQG
WHFKQLTXHVWREHXVHGIRUWKHLURZQYHUVLRQVRIFXOLQDU\DUWLQWKHGLVWDQW
IXWXUH
7KH)LIWK*UHDW)XWXUH7UDQVIRUPDWLRQRI&XOLQDU\$UW
7KHILIWKJUHDWIXWXUHWUDQVIRUPDWLRQRIFXOLQDU\DUWLQWKHSRVWKXPDQ
HUDFRQFHUQVZKDW,RULJLQDOO\FDOOQHZSUD[HVLQUHODWLRQWRVRFLHW\
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7KLV VHDUFK IRU QHZ SUD[HV ZLOO JLYH IXWXUH DGYDQFHG KXPDQV DQG
ODWHU WKHLU VXFFHVVRUV QDPHO\ WKH SRVWKXPDQV WKH DELOLW\ WR HQJDJH LQ
SUDFWLFHOLNHDFWLYLVPSROLWLFVSHUVRQDOH[SHULHQFHHWFIRUWKHVWXG\RI
FXOLQDU\DUWLQDZD\WKDWFXUUHQWKXPDQVFDQQRW
7KHUH DUH DOUHDG\ VRPH LQGLFDWLRQV WKDW WKH IXWXUH RI FXOLQDU\ DUW LV
PRYLQJWRZDUGWKLVGLUHFWLRQ
&RQVLGHU IRU LOOXVWUDWLRQ WKH GLIIHUHQW SUD[HV DV DOUHDG\ VHHQ LQ
KLVWRU\RIFXOLQDU\DUWOLNHWKHSUDFWLFDOHIIHFWVRIDSURKGLVLDFV6HF
WKH DSSOLFDWLRQ RI IRRG JXLGH S\UDPLG E\ 86'$ 6HF WKH
DSSOLFDWLRQ RI IRRG FKDLQV IRU HFRWR[LFRORJ\ 6HF WKH DSSOLFDWLRQ
RIUDZIRRGLVPIRUDYHJHWDULDQGLHW6HFSRSXODWLRQFRQWUROSROLF\
6HF WKH SROLF\ RI FRPPRGL]DWLRQ 6HF WKH SUDFWLFDO
H[WHQVLRQ RI WKH DQLPDO OLEHUDWLRQ PRYHPHQW WR WKH HWKLFV IRU QRW HDWLQJ
PHDW 6HF WKH SUDFWLFDO DSSOLFDWLRQ RI IUHH VSHHFK LQ SROLWLFDO
SKLORVRSK\WRWKHILHOGRIFXOLQDU\DUW6HFSUDFWLFHEHLQJGLIIHUHQW
IURPWKHRU\6HFWKHSUDFWLFDODSSOLFDWLRQRIHYROXWLRQLQELRORJ\
WRWKHILHOGRIIRRGVFLHQFHIRUFRRNLQJZLWKKHDW6HFWKHSUDFWLFH
RI VWUDZEHUULHV WR EH SDLUHG ZLWK SHDV 6HF WKH SUDFWLFH RI HFR
WHUURULVP 6HF WKH XVH RI FDQQLQJ IRU PLOLWDU\ FDPSDLJQV 6HF
WKHJOREDOL]DWLRQRIIDVWIRRG6HFWKHDSSOLFDWLRQRIIRRG
SKRWRJUDSKV WR WKH ILHOG RI DGYHUWLVLQJ 6HF DQG WKH HFOHFWLF
SUDFWLFH RI GLIIHUHQW LQJUHGLHQWV DQG FXLVLQHV LQ IXVLRQ FXVLLQHV 6HF
IRULQVWDQFH
$OO WKHVH DUH MXVW VRPH LOOXVWUDWLYH UHODWLYHO\ SULPLWLYH H[DPSOHV LQ
RXU WLPH RI FRXUVH EXW WKH LPSRUWDQW SRLQW WR UHPHPEHU KHUH LV WKDW WKH
VHDUFKIRUGLIIHUHQWQHZSUD[HVZLOOIXUWKHUWUDQVIRUPWKHVWXG\RIFXOLQDU\
DUW DW WKH PRUH DGYDQFHG OHYHO LQ WKH SRVWKXPDQ IXWXUH WKDW WKH KXPDQ
ZRUOGKDVQHYHUNQRZQ
7KH6L[WK*UHDW)XWXUH7UDQVIRUPDWLRQRI&XOLQDU\$UW
7KHVL[WKJUHDWIXWXUHWUDQVIRUPDWLRQRIFXOLQDU\DUWLQWKHSRVWKXPDQ
HUDFRQFHUQVZKDW,RULJLQDOO\FDOOQHZWHFKQRORJLHVLQUHODWLRQWRVRFLHW\
7KLVVHDUFKIRUQHZWHFKQRORJLHVZLOOJLYHIXWXUHDGYDQFHGKXPDQV
DQGODWHUWKHLUVXFFHVVRUVQDPHO\WKHSRVWKXPDQVWKHDELOLW\WRFRPHXS
ZLWK GLIIHUHQW WHFKQLTXHV PDWHULDOV DQG H[SHULPHQWV IRU WKH VWXG\ RI
FXOLQDU\DUWLQDZD\WKDWFXUUHQWKXPDQVFDQQRW
7KHUH DUH DOUHDG\ VRPH LQGLFDWLRQV WKDW WKH IXWXUH RI FXOLQDU\ DUW LV
PRYLQJWRZDUGWKLVGLUHFWLRQ
&RQVLGHUIRULOOXVWUDWLRQWKHXVHRIGLIIHUHQWWHFKQRORJLHVDVDOUHDG\
VHHQ LQWKH KLVWRU\RIFXOLQDU\DUW VXFKDVWKHWHFKQRORJ\ WR PDNHVSDFH
IRRG 6HF WKH LQYHQWLRQ RI V\QWKHWLF DSKURGLVLDFV 6HF WKH
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
WKH GLVDJUHHPHQW EHWZHHQ WKH DGYRFDWHV DQG WKH FULWLFV RI WKH IDVW IRRG
LQGXVWU\ 6HF WKH GLVDJUHHPHQW EHWZHHQ WKH SURV DQG WKH FRQV RI
IRRGSKRWRJUDSK\IRUDGYHUWLVHPHQW6HFDQGWKHGLYLGHEHWZHHQ
WKHDGYRFDWHVRIVWULFWUHJLRQDOFXLVLQHVDQGWKRVHRIIXVLRQFXLVLQHV6HF
IRULQVWDQFH
$OO WKHVH DUH MXVW VRPH LOOXVWUDWLYH UHODWLYHO\ SULPLWLYH H[DPSOHV LQ
RXU WLPH RI FRXUVH EXW WKH LPSRUWDQW SRLQW WR UHPHPEHU KHUH LV WKDW WKH
HPHUJHQFH RI QHZ VWUDWLILFDWLRQV ZLOO IXUWKHU WUDQVIRUP WKH VWXG\ RI
FXOLQDU\DUWDWWKH PRUHDGYDQFHGOHYHOLQWKHSRVWKXPDQIXWXUHWKDWWKH
KXPDQZRUOGKDVQHYHUNQRZQ
7KH(LJKWK*UHDW)XWXUH7UDQVIRUPDWLRQRI&XOLQDU\$UW
7KH HLJKWK JUHDW IXWXUH WUDQVIRUPDWLRQ RI FXOLQDU\ DUW LQ WKH SRVW
KXPDQHUDLVZKDW,RULJLQDOO\FDOOQHZVXEILHOGVLQUHODWLRQWRFXOWXUH
7KLV VHDUFK IRU QHZ VXEILHOGV ZLOO JLYH IXWXUH DGYDQFHG KXPDQV
DQGODWHUWKHLUVXFFHVVRUVQDPHO\WKHSRVWKXPDQVWKHDELOLW\WRH[SORUH
QHZVSHFLDOWLHVIRUWKHXQGHUVWDQGLQJRIFXOLQDU\DUWLQDZD\WKDWFXUUHQW
KXPDQVFDQQRW
7KHUH DUH DOUHDG\ VRPH LQGLFDWLRQV WKDW WKH IXWXUH RI FXOLQDU\ DUW LV
PRYLQJWRZDUGWKLVGLUHFWLRQ&RQVLGHUIRULOOXVWUDWLRQWKHGLIIHUHQWVXE
ILHOGVDVDOUHDG\ VHHQLQWKH KLVWRU\RIFXOLQDU\DUWVXFK DVWKHVWXG\RI
VSDFHIRRGIRUVSDFHH[SORUDWLRQ6HFWKHVWXG\RIDSKURGLVLDFV6HF
WKH VWXG\ RI IRRG JXLGH S\UDPLG 6HF WKH VWXG\ RI IRRG
FKDLQV DQG HFRWR[LFRORJ\ 6HF WKH VWXG\ RI UDZ IRRGLVP 6HF
0DOWKXVLDQ HFRQRPLFV 6HF QXWULWLRQDO HFRQRPLFV 6HF
WKH HWKLFV RI HDWLQJ PHDW 6HF &DOLIRUQLD FXLVLQH 6HF
WKH VWXG\ RI IRRG VDIHW\ 6HF WKH VWXG\ RI FRRNLQJ DQG
KHDOWK 6HF PROHFXODU JDVWURQRP\ 6HF UDGLFDO
HQYLURQPHQWDOLVP 6HF WKH VWXG\ RI IRRG WHFKQRORJ\ 6HF
WKHVWXG\RIIDVWIRRGLQGXVWU\6HFIRRGSKRWRJUDSK\6HF
DQGIXVLRQFXLVLQH6HFIRULQVWDQFH
7KHVHDUHMXVWVRPHLOOXVWUDWLYHUHODWLYHO\SULPLWLYHH[DPSOHVLQRXU
WLPHEXWWKHLPSRUWDQWSRLQWWRUHPHPEHULVWKDWWKHVHDUFKIRUQHZVXE
ILHOGVZLOOIXUWKHUWUDQVIRUPWKHVWXG\RIFXOLQDU\DUWDWWKHPRUHDGYDQFHG
OHYHOLQWKHSRVWKXPDQIXWXUHWKDWWKHKXPDQZRUOGKDVQHYHUNQRZQ
7KH1LQWK*UHDW)XWXUH7UDQVIRUPDWLRQRI&XOLQDU\$UW
$QGWKHQLQWKJUHDWIXWXUHWUDQVIRUPDWLRQRIFXOLQDU\DUWLQWKHSRVW
KXPDQHUDFRQFHUQVZKDW,RULJLQDOO\FDOOQHZLQWHUSUHWDWLRQVLQUHODWLRQ
WRFXOWXUH
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
(QRUPRXV,PSOLFDWLRQV
7KHVH QLQH JUHDW IXWXUH WUDQVIRUPDWLRQV RI WKH VWXG\ RI FXOLQDU\ DUW
KDYHHQRUPRXVLPSOLFDWLRQVIRUVRPHVRXOVHDUFKLQJTXHVWLRQVZKLFKKDYH
FKDOOHQJHGVRPHRIWKHEHVWPLQGVLQWKHKLVWRU\RIFXOLQDU\DUW
)RU LOOXVWUDWLRQ FRQVLGHU WKH IROORZLQJ IXQGDPHQWDO TXHVWLRQV LQ WKH
VWXG\RIFXOLQDU\DUW
([WRZKDWH[WHQWLVFRRNLQJWREHDQDUWRUDVFLHQFH"
([XQGHUZKDWFRQGLWLRQVLVNLOOLQJDQLPDOVIRUIRRGMXVWLILHG"
([ZKDWDUHWKHOLPLWVRILQWHJUDWLQJGLIIHUHQWFXLVLQHV"
([LQZKLFKFLUFXPVWDQFHVLVHDWLQJUDZIRRGZDUUDQWHG"
4XHVWLRQV DQG GLVDJUHHPHQWV OLNH WKLV ZLOO UHFHLYH QHZ DQVZHUV LQ WKH
IXWXUH KLVWRU\ RI DGYDQFHG KXPDQ DQG ODWHU SRVWKXPDQ FXOLQDU\ DUW DW
OHDVWLQWZRIXQGDPHQWDOZD\V
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7KH ILUVW IXQGDPHQWDO ZD\ LV WR H[DPLQH WKH UHODWLRQVKLSV EHWZHHQ
LQJUHGLHQWV DQG WHFKQLTXHVVXFK WKDW WKHLU SRVVLELOLW\ RU LPSRVVLELOLW\
DQGGHVLUDELOLW\RUXQGHVLUDELOLW\DUHQRWWRWKHH[WHQWWKDWWKHUHVSHFWLYH
GHIHQGHUVZRXOGOLNHXVWREHOLHYH
7KH GLIIHUHQW YLHZV DERXW WKH VWXG\ RI FXOLQDU\ DUW DV DOUHDG\
DGGUHVVHGLQ6HF6HFDQGWKHUHVWRIWKHERRNDUHMXVWGLIIHUHQW
ZD\V WR XQGHUVWDQG WKH QDWXUH RI FXOLQDU\ DUW ZLWK HDFK IURP LWV RZQ
YDQWDJHSRLQW
(DFKYLHZVKDVLWVRZQPHULWVDQGGHIHFWVDQGLVSUHIHUUHGRYHURWKHUV
E\ GLIIHUHQW SURSRQHQWV ZLWK WKHLU RZQ GLIIHUHQW LQWHUHVWV EXW QRQH RI
WKHP LV SRVVLEOH RU LPSRVVLEOH DQG GHVLUDEOH RU XQGHVLUDEOH WR WKH
H[WHQWWKDWLWVUHVSHFWLYHDGYRFDWHVZRXOGOLNHXVWREHOLHYH
$QG WKH VHFRQG IXQGDPHQWDO ZD\ LV WR LQTXLUH DERXW DQG WKHQ
WUDQVFHQG LQ WKH ORQJ KDXO WKH GHEDWH DERXW LQJUHGLHQWV DQG WHFKQLTXHV
VXFK WKDW LW ZLOO EH VKLIWHG WR GLIIHUHQW GLUHFWLRQV DV VKRZQ LQ WKH QLQH
JUHDWIXWXUHWUDQVIRUPDWLRQVWKDW,KDYHHQYLVLRQHGDQGRXWOLQHGDERYH7R
WUDQVFHQGWKHPDOOLVWRPRYHLQWRWKHVHGLIIHUHQWGLUHFWLRQVLQFRQMXQFWLRQ
ZLWKWKHYDULRXVYLVLRQVRIP\SUHYLRXVERRNVDVDOUHDG\VXPPDUL]HGLQ
6HFDQGDOVRHDUOLHULQWKLVFKDSWHUZLWKWKHIXUWKHUKHOSRIWKHWDEOHV
DWWKLVHQGRI&KDSWHU2QHDQGWKLVFKDSWHU
7ZR H[DPSOHV DUH ZRUWK UHSHDWLQJ KHUH 7KH ILUVW LV WKDW PRVW
DGYDQFHG IRUPV RI IXWXUH LQWHOOLJHQW OLIH LQ GHHS VSDFH XQWLO PXOWLYHUVHV
HJIORDWLQJFRQVFLRXVQHVVK\SHUVSDWLDOFRQVFLRXVQHVVXQIROGLQJ
XQFRQVFLRXVQHVV HWF GR QRW QHHG WR KDYH WKH SK\VLFDO ERGLHV WKDW
FXUUHQWKXPDQVKDYHDQGWKHUHIRUHGRQRWQHFHVVDULO\QHHGWKHIRRGVWXIIV
WKDW FXUUHQW KXPDQV GR $QG WKH VHFRQG LV WKDW WKHVH DGYDQFHG IRUPV RI
LQWHOOLJHQWOLIHZLOODOVRQHHGWRDGDSWWRGLIIHUHQWDOLHQHQYLURQPHQWVZLWK
WKHVXEVHTXHQWLPSDFWVRQLQJUHGLHQWVDQGWHFKQLTXHVWREHXVHGIRUWKHLU
RZQYHUVLRQVRIFXOLQDU\DUWLQWKHGLVWDQWIXWXUH
6RWKHFXUUHQWSURGXFWLRQRIVSDFHIRRGIRUPDQQHGVSDFHH[SORUDWLRQ
LQWKH(DUWKVRUELWDVGHVFULEHGLQ6HFLVRQO\DVPDOOVWHSIRUWKH
ODUJHU IXWXUH RI FXOLQDU\ DUW LQ UDGLFDOO\ GLIIHUHQW HQYLURQPHQWV LQ RXWHU
VSDFHDQGEH\RQGXQWRPXOWLYHUVHVWKDWWKH(DUWKOLQJVKDYHQHYHUNQRZQ
/HVWDQ\PLVXQGHUVWDQGLQJRFFXUVRQHPXVWUHPHPEHUWKDWWKHVHQLQH
JUHDWIXWXUHWUDQVIRUPDWLRQVRIWKHVWXG\RIFXOLQDU\DUWZLOOEULQJQHLWKHU
XWRSLD QRU G\VWRSLD UHJDUGOHVV RI WKH FXUUHQW JURZLQJ HXSKRULD DERXW
GLIIHUHQWYDULDQWVRIIXVLRQFXLVLQHLQ6HFDVWKLVLVVRPHWKLQJ
WKDW , KDYH ZDUQHG WLPH DQG DJDLQ LQ DOO RI P\ SUHYLRXV ERRNV DOPRVW
YHUEDWLP
,QDQ\HYHQWDV,VRRIWHQVWUHVVHGLQP\SUHYLRXVERRNVLWLVQRWXS
WRXVFXUUHQWKXPDQVWRGHFLGHZKHWKHURUQRWRUWRZKDWH[WHQWWKHSRVW
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
KXPDQ IXWXUH RI FXOLQDU\ DUW ZLOO EH IRU EHWWHU DQG IRU ZRUVH EHFDXVH LW
ZLOO EH MXGJHG E\ WKH YDOXHV DQG EHOLHIV RI IXWXUH SRVWKXPDQV RQ HDUWK
DQGLQGHHSVSDFHXQWRPXOWLYHUVHVLQDZD\WKDWWKHHQWLUHKLVWRU\RIWKH
KXPDQZRUOGKDVQHYHUNQRZQ
7KXVLVWKHIXWXUHRIFXOLQDU\DUWDQGRILWVSRVWKXPDQIDWH
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7DEOH6RSKLVWLFDWHG0HWKRGRORJLFDO+ROLVP
3DUW,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
0\ PHWKRGRORJLFDO KROLVP LPSOLHV WKH SDUWLDOLW\WRWDOLW\ SULQFLSOH LQ
WKHRQWRORJ\RIH[LVWHQWLDOGLDOHFWLFVVHHWKHWDEOHRQWKHSDUWLDOLW\WRWDOLW\
SULQFLSOHIRUVXPPDU\ZKLFKLVDJDLQVWWKHYDULHWLHVRIDUHGXFWLRQLVP
DQG E UHYHUVHUHGXFWLRQLVP LQ UHODWLRQ WR L FRQFHSW LL WKHRU\ LLL
PHWKRGRORJ\DQGLYRQWRORJ\)&
>0@\ PHWKRGRORJLFDO KROLVP KHUH LV QRW RSSRVHG WR PHWKRGRORJLFDO
LQGLYLGXDOLVP EXW LQFOXGHV LW DQG IRU WKDW PDWWHU RWKHU PHWKRGRORJLHV
WRR )3+& )RU WKLV UHDVRQ DQG RWKHUV WRR DV VXPPDUL]HG
KHUHDIWHU P\ YHUVLRQ RI PHWKRGRORJLFDO KROLVP LV VRSKLVWLFDWHGQRW
YXOJDUDVVRPHWLPHVXVHGE\LQDSWVFKRODUVXVLQJWKHVDPHWHUP)&
>0@\PHWKRGRORJLFDOKROLVPGRHVQRWGHPRFUDWLFDOO\SUHVXPHWKDWDOO
OHYHOVDUHHTXDOO\YDOLGDVDOOOHYHOVDUHQRWFUHDWHGHTXDO,QRWKHUZRUGV
LQUHODWLRQ WRLVVXH;OHYHO $ PD\EH PRUHUHOHYDQWWKDQOHYHO%EXWLQ
UHODWLRQWR<OHYHO%FDQEHPRUHUHOHYDQWWKDQOHYHO$LQVWHDG)3+&
2QH H[FHOOHQW H[DPSOH RI WKLV YXOJDU GHPRFUDWLF SUHVXPSWLRQ LV ZKDW ,
FDOOHGLQ%11WKHFRPSURPLVHIDOODF\)&
0\ PHWKRGRORJLFDO KROLVP GRHV QRW SUHVXPH WKDW D ORZHU OHYHO RI
DQDO\VLVLV PRUHLPSRUWDQWWKDQDKLJKHUOHYHOVROHO\EHFDXVHWKHIRUPHU
VHUYHVDVWKHIRXQGDWLRQIRUWKHODWWHUDQGYLFHYHUVDIRUWKDWPDWWHU2QH
H[FHOOHQW H[DPSOH RI WKLV UHGXFWLRQLVWLF SUHVXPSWLRQ LV ZKDW , FDOOHG LQ
)3+67WKHIRXQGDWLRQIDOODF\)3+67)&
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
FRQWLQXHGRQQH[WSDJH
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
7DEOH6RSKLVWLFDWHG0HWKRGRORJLFDO+ROLVP
3DUW,,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
>0@\PHWKRGRORJLFDOKROLVPGRHVQRWPDNHDQ\DSULRULSRVWXODWLRQWKDW
WKHUHPXVWEHDGHILQLWHDQGIRUWKDWPDWWHULQGHILQLWHQXPEHURIOHYHOV
LQDQ\DQDO\VLV)3+&1RUGRHVLWGRJPDWLFDOO\UHTXLUHWKDWWKHUHPXVW
EHDFHUWDLQFRPELQDWLRQRIOHYHOVRIDQDO\VLVLQDJLYHQLQTXLU\)&
>0@HWKRGRORJLFDO KROLVP LQ P\ XVDJH GRHV QRW DVVXPH WKDW DOO
OHYHOVFDQ QHFHVVDULO\EHLQWHJUDWHGVLQFH PHWKRGRORJLFDOKROLVPLVQRW
DLPHGWRVHDUFKIRUWKHKRO\JUDLORI
DQLQWHJUDOWKHRU\
DVLVWKHFDVH
IRU :LOEHU ,Q RWKHU ZRUGV LW DOORZV WKDW VRPHWLPHV VRPH OHYHOV PD\
H[SHULHQFH LUUHGXFLEOH JDSV EHWZHHQ WKHP WR EH XQGHUVWRRG DW EHVW DV
HPSLULFDOFRUUHODWLRQVQRWDVFDXVDOUHODWLRQV)3+&
>'@LIIHUHQW OHYHOV PD\ RYHUODS DQG HYHQ LQWHUDFW ZLWK HDFK RWKHU LQ D
JLYHQFRQWH[WEXWVRPHWLPHVPD\QRWDQGWKHIDFWWKDW,HYHQSURSRVHG
GLIIHUHQW ZD\V RI UHFODVVLI\LQJ WKH OHYHOV ZKHQHYHU QHHGHG LQ )'&
UHLQIRUFHV WKLV SRLQW7KH GXDO GDQJHU KHUH LV HLWKHU IRUFHIXOO\ PDNLQJ
GLIIHUHQW OHYHOV LQWHUDFW ZKHQ WKH\ DUH MXVW GLIIHUHQW RU PHWDSKRULFDOO\
VSHDNLQJ DSSOHV DQG RUDQJHV RU LQDSSURSULDWHO\ LJQRULQJ WKHLU
LQWHUDFWLRQVZKHQVRPHVLWXDWLRQVLQVWHDGUHTXLUHWKHP)3+&
>7@R XQGHUVWDQG GLIIHUHQW OHYHOV IURP WKHLU RZQ XQLTXH SHUVSHFWLYHV
DV UHTXLUHG E\ P\ PHWKRGRORJLFDO KROLVP LV QRW WKH VDPH DV WU\LQJ WR
UHGXFH WKHP WR D SUHIHUUHG OHYHO LQ WKH SURFHVV RI OHDUQLQJ IURP RWKHU
OHYHOV7KLVVHFRQGNLQGRIPXOWLGLVFLSOLQDU\ZRUNLVQRWJHQXLQHDQGGRHV
QR MXVWLFH WR WKH XQLTXH FRPSOH[LWLHV DQG PHULWV LQKHUHQW DW HDFK OHYHO
)3+&
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
FRQWLQXHGRQQH[WSDJH
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7DEOH6RSKLVWLFDWHG0HWKRGRORJLFDO+ROLVP
3DUW,,,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
>0\@ PHWKRGRORJLFDO KROLVP ZDONV D ILQH OLQH EHWZHHQ WKH DUWLILFLDO
FODVVLILFDWLRQVHSDUDWLRQRIOHYHOVDQGWKHVLPXOWDQHRXVLQFRUSRUDWLRQRI
WKHP LI RQO\ IRU WKH VDNH RI KXPDQ VFKRODUO\ HQGHDYRU ,W VKRXOG EH
UHPLQGHG WKDW QDWXUH GRHV QRW LPSRVH XSRQ LWVHOI WKH DFDGHPLF
FODVVLILFDWLRQ RI WKH OHYHOV RI DQDO\VLV DV KXPDQV KDYH 7KH HQWHUSULVH RI
FODVVLILFDWLRQLVWKHUHIRUHDQWKURSRFHQWULF)3+&
>0@\ PHWKRGRORJLFDO KROLVP DGYRFDWHV QHLWKHU HSLVWHPLF VXEMHFWLYLVP
QRU HSLVWHPLF QRQVXEMHFWLYLVP HJ UHDOLVP LGHDOLVP DQG KLVWRULFLVP
QHLWKHUHSLVWHPLFUHODWLYLVPHJVXEMHFWLYLVPKLVWRULFLVPQRUHSLVWHPLF
DEVROXWLVP HJ UHDOLVP SRVLWLYLVP QHLWKHU HSLVWHPLF UHGXFWLRQLVP QRU
HSLVWHPLF HPHUJHQFLVP DQG QHLWKHU HSLVWHPLF REMHFWLYLVP HJ UHDOLVP
LGHDOLVP QRU HSLVWHPLF KLVWRULFLVP1HLWKHU GRHV PHWKRGRORJLFDO
KROLVPLQP\XVDJHDFFHSWWKHIDOVHPHWDFRQFHSWXDOGLFKRWRP\EHWZHHQ
QRPLQDOLVP DQG UHDOLVP7KHVH IDOVH GLFKRWRPLHVDUH WR EH
WUDQVFHQGHG,QRWKHUZRUGVPHWKRGRORJLFDOKROLVPGRHVQRWIXOO\DFFHSW
HSLVWHPLFUHDOLVPSRVLWLYLVP DIRUPRIHSLVWHPLFLGHDOLVPKLVWRULFLVP
VXEMHFWLYLVPDQGUHGXFWLRQLVPLQHSLVWHPRORJ\DQGSKLORVRSK\RIVFLHQFH
EXW OHDUQV IURP WKH VWUHQJWKV DQG ZHDNQHVVHV RI DOO RI WKH RSSRVLQJ
DSSURDFKHVZLWKRXWVLGLQJZLWKDQ\RIWKHP)3+&
6RSKLVWLFDWHG PHWKRGRORJLFDO KROLVP LV VXEMHFW WR WKH FRQVWUDLQWV DV
LPSRVHGE\WKHV\QWD[RIH[LVWHQWLDOGLDOHFWLFVHJWKHSDUWLDOLW\WRWDOLW\
SULQFLSOH DQG WKH SUHGLFWDELOLW\XQSUHGLFWDELOLW\ SULQFLSOH (YHQ LQ
SUHGLFWDELOLW\ RXWFRPHV DUH VXEMHFW WR XQFHUWDLQW\ WKH GHJUHH RI ZKLFK
YDULHVIURPFDVHWRFDVH)&
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
FRQWLQXHGRQQH[WSDJH
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
7DEOH6RSKLVWLFDWHG0HWKRGRORJLFDO+ROLVP
3DUW,9
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
6RSKLVWLFDWHGPHWKRGRORJLFDOKROLVPZKHQDSSOLHGHVSHFLDOO\WKRXJK
QRW H[FOXVLYHO\ DV LOOXVWUDWHG LQ P\ QXPHURXV ZRUNVFDQ HQULFK WKH
XQGHUVWDQGLQJRIUHDOLW\LQVRPHGLVWLQFWLYHZD\V+HUHDUHWKUHHH[DPSOHV
DVUHYHDOHGLQHDFKRIP\ERRNV)3+&7)3+/
)LUVWO\ LW SURYLGHV D FRPSUHKHQVLYH DQDO\VLV RI D VXEMHFW PDWWHU
IURP ZKLFK PXFK FDQ EH OHDUQHG DERXW UHDOLW\ ERWK LQ UHODWLRQ WR
WKHSHUVSHFWLYHVRIWKH PLQG QDWXUH VRFLHW\DQGFXOWXUHDQGDOVRLQ
UHODWLRQWRDQHZFODVVLILFDWLRQRIWKHVXEMHFWPDWWHU
6HFRQGO\ LW VXJJHVWV VRPH YLVLRQV RI WKH IXWXUH LQ UHODWLRQ WR WKH
VXEMHFWPDWWHULQTXHVWLRQ
$QG WKLUGO\ LW SURSRVHV VRPH LQVLJKWV RQ PHWDWKHRU\ HJ
PHWKRGRORJ\DQGRQWRORJ\LQJHQHUDOZLWKWKHFOHDUXQGHUVWDQGLQJ
KRZHYHURIWKHGLOHPPDRIVSHFLILFYVJHQHUDORQWRORJ\DVVKRZQLQ
WKH WDEOH RQ WKH V\QWD[ RI H[LVWHQWLDO GLDOHFWLFV LQ WKH FRQWH[W RI WKH
GLOHPPD RI RQWRORJ\ )RU WKLV YHU\ UHDVRQ DOO RI WKHVH ZD\V DUH
LPSRUWDQWZLWKRXWUHGXFLQJRQHLQWRWKHDQDO\VLVRIDQRWKHU
,QWKHHQG P\ PHWDWKHRU\ERWKVRSKLVWLFDWHG PHWKRGRORJLFDOKROLVP
DQG H[LVWHQWLDO GLDOHFWLFV VHUYHV DV D IRXQGDWLRQ WR XQLI\ DOO GRPDLQV RI
NQRZOHGJH LQWR DQ XQLILHG WKHRU\ RI HYHU\WKLQJ E\ ZD\ RI VRPH
RQWRORJLFDO SULQFLSOHV DQG WKH FRPSUHKHQVLYH SHUVSHFWLYHV RI WKH PLQG
QDWXUH VRFLHW\ DQG FXOWXUH 7KLV LV VR ZLWKRXW FRPPLWLQJ WKH VLQV RI
UHGXFWLRQLVP DQG UHYHUVHUHGXFWLRQLVP DV RIWHQ VHHQ LQ PDQ\ KROLVWLF
DSSURDFKHVZLWKWKHIDGRIV\VHPVDSSURDFKEHLWDERXWV\VWHPVWKHRU\
FKDRV WKHRU\ FRPSOH[LW\ WKHRU\ RU HOVHDV D PRVW UHFHQW QRWRULRXV
H[DPSOH ZKLFK,GHEXQNHGLQ7KH)XWXUHRI&RPSOH[LW\DQGDOVRLQ7KH
)XWXUH RI 3RVW+XPDQ )RUPDO 6FLHQFH 0\ GLVWLQFWLYH DSSURDFK PDNHV
JRRGXVHRIGLIIHUHQWVFKRROVRIWKRXJKWZLWKRXWIDYRULQJDQ\RIWKHPQRU
WU\LQJWRLQWHJUDWHWKHPDVWKH\DUHQRWQHFHVVDULO\FRPSDWLEOHZLWKHDFK
RWKHUVRDVWRDGMXVWIRUVXEMHFWLYLW\GLYHUVLW\FRQIOLFWDQGFRPSOH[LW\
IRU H[DPSOH ,Q WKLV VHQVH WKH ZRUG XQLILHG GRHV QRW KDYH WR PHDQ
LQWHJUDWLYHDSSURDFKLQDQDUURZVHQVHQRUV\VWHPVDSSURDFKLQDEURDG
RQHERWKRIZKLFK,UHMHFWZKLOHOHDUQLQJIURPWKHP)3+)6)3+6
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
6RXUFHV $ VXPPDU\ RI 6HF LQ )3+&DQG DOVR IURP %11 )3+67
$/')&)3+&7DQGWKHUHVWRIDOORWKHUERRNVRIPLQH6HHWKHERRNV
IRUPRUHGHWDLO
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7DEOH2Q5HGXFWLRQLVPDQG5HYHUVH5HGXFWLRQLVP
3DUW,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
7KH3DUWLDOLW\7RWDOLW\3ULQFLSOH
7KHSDUWLDOLW\WRWDOLW\SULQFLSOHLQWKHRQWRORJ\RIH[LVWHQWLDOGLDOHFWLFV
WDUJHWVDJDLQVWWKHYDULHWLHVRIUHGXFWLRQLVPDQGUHYHUVHUHGXFWLRQLVP
DVDOUHDG\ZRUNHGRXWLQP\SUHYLRXVERRNV
$JDLQVWWKH9DULHWLHVRI5HGXFWLRQLVP
&RQFHSWXDO5HGXFWLRQLVP
6RPH LOOXVWUDWLYH LQVWDQFHV LQYROYH P\ULDG GXDOLWLHV OLNH PLQG YV
ERG\ VHOI YV ZRUOG GHPRFUDF\ YV QRQGHPRFUDF\ DQG WKH OLNH
DVDOUHDG\DGGUHVVHGLQ)+&)3+&DQG%'3'IRULQVWDQFH
7KHRUHWLFDO5HGXFWLRQLVP
$ IDVFLQDWLQJ FDVH VWXG\ FRQFHUQV ZKDW , RULJLQDOO\ FDOOHG WKH
IRXQGDWLRQ IDOODF\ LQ )3+67 LQ DQ\ DWWHPSW WR QDLYHO\
XQGHUVWDQG VSDFHWLPH IURP WKH SK\VLFDO SHUVSHFWLYH DV WKH
IRXQGDWLRQ DQG FRQVHTXHQWO\ WR GDQJHURXVO\ GLVPLVV RWKHU
SHUVSHFWLYHV
,Q )$( , HODERUDWHG IXUWKHU WKHVH YHUVLRQV RI UHGXFWLRQLVP LQ WKH
OLWHUDWXUH RQ DHVWKHWLFV HJ IRUP YV FRQWHQW UHSUHVHQWDWLRQ YV
H[SUHVVLRQFULWLFVYVDUWLVWVDQGH[WHUQDOLVPYVLQWHUQDOLVP
,Q ),$ , UHYHDOHG RWKHU IRUPV RI UHGXFWLRQLVP LQ WKH OLWHUDWXUH RQ
LQIRUPDWLRQDUFKLWHFWXUHHJWKHFRQVWUXFWLYLVWDUJXPHQW
,Q)3+8,VKRZHGWKHSHUVLVWHQWOHJDF\RIUHGXFWLRQLVPWKLVWLPH
LQWKHOLWHUDWXUHRQDQRPDORXVH[SHULHQFHHJWKHREVHVVLRQZLWK
SK\VLFV FKHPLVWU\ DQG ELRORJ\ IRU H[SODLQLQJ DQRPDORXV
H[SHULHQFH
,Q)3+(,H[DPLQHGDQRWKHUFDVHRIUHGXFWLRQLVPLQDFWLRQLQWKH
FRQWH[W RI HQJLQHHULQJ HJ WHFKQLFDO FRQVWUDLQWV YV QRUPDWLYH
FRQVWUDLQWV
,Q )3+00 , HODERUDWHG RQH PRUH YHUVLRQ RI UHGXFWLRQLVP LQ
UHODWLRQ WR WKH WKUHH GRPDLQV RI FRPPXQLFDWLRQ HJ WKH
FRPSHWLQJYLHZVRQVHQGLQJFRQQHFWLQJDQGUHFHLYLQJ
,Q)3+&7,H[SORUHGDQRWKHUYHUVLRQRIUHGXFWLRQLVPLQUHODWLRQWR
LQYHQWLRQDQGLQQRYDWLRQHJWKHELRSV\FKRORJLFDODUJXPHQWYV
WKHVRFLRFXOWXUDODUJXPHQWV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
FRQWLQXHGRQQH[WSDJH
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
7DEOH2Q5HGXFWLRQLVPDQG5HYHUVH5HGXFWLRQLVP
3DUW,,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
$JDLQVWWKH9DULHWLHVRI5HGXFWLRQLVPFRQW
G
7KHRUHWLFDO5HGXFWLRQLVPFRQWG
,Q)3+*,LGHQWLI\DQRWKHUYHUVLRQ RIUHGXFWLRQLVPLQ UHODWLRQWR
LQILQLW\ V\PPHWU\ DQG GLPHQVLRQDOLW\ HJ WKH (XFOLGHDQ
DUJXPHQWYVWKHQRQ(XFOLGHDQDUJXPHQWV
,Q)3+83,DQDO\]HGDQRWKHUYHUVLRQRIUHGXFWLRQLVPLQUHODWLRQWR
GHQVLW\ DQG YRLG HJ WKH HQJLQHHULQJ DUJXPHQW DQG WKH HFRORJ\
DUJXPHQW
,Q)3+/,H[DPLQHGDQRWKHUYHUVLRQRIUHGXFWLRQLVPLQUHODWLRQWR
VWUXFWXUH DQG FRQWH[W HJ WKH VWUXFWXUDOLVW DUJXPHQW DQG WKH
FRQWH[WXDOLVWDUJXPHQW
,Q3)+2,H[SORUHGDQRWKHUYHUVLRQRIUHGXFWLRQLVPLQUHODWLRQWR
FRPPXQFDWLRQGHFLVLRQPDNLQJDQGOHDGHUVKLSHJWKHUDWLRQDO
V\VWHPDUJXPHQWYVWKHQDWXUDOV\VWHPDUJXPHQW
,Q3)+0$,UHYHDOHGDQRWKHUYHUVLRQRIUHGXFWLRQLVPLQUHODWLRQWR
WKH PDUWLDO ERG\ DQG VSLULW HJ WKH VSLULWXDO DUJXPHQW YV WKH
PDWHULDOLVWDUJXPHQWYVWKHGHIHQVLYHDUJXPHQW
,Q3)+6,DQDO\]HGDQRWKHUYHUVLRQRIUHGXFWLRQLVPLQUHODWLRQWR
WKH VH[XDO ERG\ DQG VSLULW HJ WKH QDWXUDOLVW DUJXPHQW YV WKH
FRQVWUXFWLYLVWDUJXPHQW
,Q3)+/$:,H[DPLQHGDQRWKHUYHUVLRQRIUHGXFWLRQLVPLQUHODWLRQ
WRODZHJWKHQHFHVVLW\DUJXPHQWYVWKHFRQWHQJHQF\DUJXPHQW
,Q)3+:3,VKRZHGDQRWKHUYHUVLRQRIUHGXFWLRQLVPLQUHODWLRQWR
ZDU DQG SHDFH HJ WKH DJJUHVVLYLVW DUJXPHQW YV WKH SDFLILVW
DUJXPHQW
,Q%(3(,DQDO\]HGDQRWKHUYHUVLRQRIUHGXFWLRQLVPLQUHODWLRQWR
PRUDOLW\DQGLPPRUDOLW\HJWKHREMHFWLYLVWDUJXPHQWYVWKHQRQ
REMHFWLYLVWDUJXPHQWYVWKHVNHSWLFDODUJXPHQW
,Q%&26,H[DPLQHGDQRWKHUYHUVLRQRIUHGXFWLRQLVPLQUHODWLRQWR
WKHFRQWHVWHGEHJLQQLQJVDQGVSHFXODWLYHHQGVRIWKHXQLYHUVHHJ
WKH VFLHQWLILFDUJXPHQW YVWKHUHOLJLRXVDUJXPHQWYVWKH HVRWHULF
DUJXPHQWYVWKHPHWDSK\VLFDODUJXPHQW
,Q )3+3 , VKRZ DQRWKHU YHUVLRQ RI UHGXFWLRQLVP LQ UHODWLRQ WR
QRUPDOLW\DQGDEQRUPDOLW\HJWKHQDWXUDODUJXPHQWYVWKHVRFLDO
DUJXPHQWYVWKHFXOWXUDODUJXPHQWYVWKHPHQWDODUJXPHQW
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
FRQWLQXHGRQQH[WSDJH
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7DEOH2Q5HGXFWLRQLVPDQG5HYHUVH5HGXFWLRQLVP
3DUW,,,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
$JDLQVWWKH9DULHWLHVRI5HGXFWLRQLVPFRQW
G
7KHRUHWLFDO5HGXFWLRQLVPFRQWG
,Q )3+*(2/ , VFUXWLQL]HG DQRWKHU YHUVLRQ RI UHGXFWLRQLVP LQ
UHODWLRQWRVWDWLFVDQGG\QDPLFVHJWKHFDWDVWURSKHDUJXPHQWYV
WKHXQLIRUPLW\DUJXPHQWYVWKHUHYLVLRQDUJXPHQW
,Q )3+&+(66 , VKRZHG DQRWKHU YHUVLRQ RI UHGXFWLRQLVP LQ
UHODWLRQ WR WDFWLFV DQG VWUDWHJ\ HJ WKH QDWXUDO DUJXPHQW YV WKH
VRFLDO DUJXPHQW YV WKH FXOWXUDO DUJXPHQW YV WKH PHQWDO
DUJXPHQW
,Q)3+5,UHYHDOHGDQRWKHUYHUVLRQRIUHGXFWLRQLVPLQUHODWLRQWR
VHFXODUQHVV DQG VDFUHGQHVV HJ WKH FULWLFDO DUJXPHQW YV WKH
VNHSWLFDODUJXPHQWYVWKHWKHLVWDUJXPHQW
,Q)3+('8,H[DPLQHGDQRWKHUYHUVLRQRIUHGXFWLRQLVPLQUHODWLRQ
WR WHDFKLQJ DQG OHDUQLQJ HJ WKH WHDFKHUFHQWHUHG DUJXPHQW YV
WKHVWXGHQWFHQWHUHGDUJXPHQWYVWKHEDODQFHGDUJXPHQW
,Q)3++,H[SORUHGDQRWKHUYHUVLRQRIUHGXFWLRQLVPLQUHODWLRQWR
MRNLQJ DQG ODXJKLQJ HJ WKH QDWXUDO DUJXPHQW YV WKH VRFLDO
DUJXPHQWYVWKHFXOWXUDODUJXPHQWYVWKHPHQWDODUJXPHQW
,Q)3+$,SURSRVHGDQRWKHUYHUVLRQRIUHGXFWLRQLVPLQUHODWLRQWR
VRXQG DQG VLOHQFH HJ WKH QDWXUDO DUJXPHQW YV WKH VRFLDO
DUJXPHQWYVWKHFXOWXUDODUJXPHQWYVWKHPHQWDODUJXPHQW
,Q)3+*$0,SURSRVHGDQRWKHUYHUVLRQRIUHGXFWLRQLVPLQUHODWLRQ
WR ULVN DQG FDXWLRQ HJ WKH QDWXUDO DUJXPHQW YV WKH VRFLDO
DUJXPHQWYVWKHFXOWXUDODUJXPHQWYVWKHPHQWDODUJXPHQW
,Q )3+&20 , ZRUNHG RXW DQRWKHU YHUVLRQ RI UHGXFWLRQLVP LQ
UHODWLRQ WR KDUGZDUH DQG VRIWZDUH HJ WKH QDWXUDO DUJXPHQW YV
WKH VRFLDO DUJXPHQW YV WKH FXOWXUDO DUJXPHQW YV WKH PHQWDO
DUJXPHQW
,Q)3+/,7,SURSRVHGDQRWKHUYHUVLRQRIUHGXFWLRQLVPLQUHODWLRQ
WRILFWLRQDQGQRQILFWLRQHJWKHQDWXUDODUJXPHQWYVWKHVRFLDO
DUJXPHQWYVWKHFXOWXUDODUJXPHQWYVWKHPHQWDODUJXPHQW
,Q )3+&+(0 , SURSRVHG DQRWKHU YHUVLRQ RI UHGXFWLRQLVP LQ
UHODWLRQWRVXEVWDQFHVDQGWKHLUFKDQJHVHJWKHQDWXUDODUJXPHQW
YV WKH VRFLDO DUJXPHQW YV WKH FXOWXUDO DUJXPHQW YV WKH PHQWDO
DUJXPHQW
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
FRQWLQXHGRQQH[WSDJH
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
7DEOH2Q5HGXFWLRQLVPDQG5HYHUVH5HGXFWLRQLVP
3DUW,9
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
$JDLQVWWKH9DULHWLHVRI5HGXFWLRQLVPFRQW
G
7KHRUHWLFDO5HGXFWLRQLVPFRQWG
,Q)3+'$,SURSRVHGDQRWKHUYHUVLRQRIUHGXFWLRQLVPLQUHODWLRQ
WRTXDQWLWDWLYHDQGTXDOLWDWLYHUHVHDUFKHJWKHQDWXUDODUJXPHQW
YV WKH VRFLDO DUJXPHQW YV WKH FXOWXUDO DUJXPHQW YV WKH PHQWDO
DUJXPHQW
,Q )3+*(2* , SURSRVHG DQRWKHU YHUVLRQ RI UHGXFWLRQLVP LQ
UHODWLRQ WR HQYLURQPHQWV DQG WKHLU LQWHUDFWLRQV HJ WKH QDWXUDO
DUJXPHQWYVWKHVRFLDODUJXPHQWYVWKHFXOWXUDODUJXPHQWYVWKH
PHQWDODUJXPHQW
,Q)3+3$,SURSRVHGDQRWKHUYHUVLRQRIUHGXFWLRQLVPLQUHODWLRQWR
WKHERG\DQGLWVSUHVHQFHHJWKHQDWXUDODUJXPHQWYVWKHVRFLDO
DUJXPHQWYVWKHFXOWXUDODUJXPHQWYVWKHPHQWDODUJXPHQW
,Q)3+6(0,SURSRVHGDQRWKHUYHUVLRQRIUHGXFWLRQLVPLQUHODWLRQ
WR LQWHUQDOLW\ DQG H[WHUQDOLW\ HJ WKH QDWXUDO DUJXPHQW YV WKH
VRFLDO DUJXPHQW YV WKH FXOWXUDO DUJXPHQW YV WKH PHQWDO
DUJXPHQW
,Q )3+$5&+ , SURSRVHG DQRWKHU YHUVLRQ RI UHGXFWLRQLVP LQ
UHODWLRQ WR IRUP DQG IXQFWLRQ HJ WKH QDWXUDO DUJXPHQW YV WKH
VRFLDO DUJXPHQW YV WKH FXOWXUDO DUJXPHQW YV WKH PHQWDO
DUJXPHQW
,Q )3+&5,0 , SURSRVHG DQRWKHU YHUVLRQ RI UHGXFWLRQLVP LQ
UHODWLRQ WR KHURHV DQG YLOODLQV HJ WKH QDWXUDO DUJXPHQW YV WKH
VRFLDO DUJXPHQW YV WKH FXOWXUDO DUJXPHQW YV WKH PHQWDO
DUJXPHQW
,Q)3++,67,SURSRVHGDQRWKHUYHUVLRQRIUHGXFWLRQLVPLQUHODWLRQ
WR XQLYHUVDOLW\ DQG UHODWLYLW\ HJ WKH QDWXUDO DUJXPHQW YV WKH
VRFLDO DUJXPHQW YV WKH FXOWXUDO DUJXPHQW YV WKH PHQWDO
DUJXPHQW
,Q)3+0,*,SURSRVHGDQRWKHUYHUVLRQRIUHGXFWLRQLVPLQUHODWLRQ
WR6DPHQHVV2WKHUQHVVDQGLGHQWLW\HJWKHQDWXUDODUJXPHQWYV
WKH VRFLDO DUJXPHQW YV WKH FXOWXUDO DUJXPHQW YV WKH PHQWDO
DUJXPHQW
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
FRQWLQXHGRQQH[WSDJH
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7DEOH2Q5HGXFWLRQLVPDQG5HYHUVH5HGXFWLRQLVP
3DUW9
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
$JDLQVWWKH9DULHWLHVRI5HGXFWLRQLVPFRQW
G
7KHRUHWLFDO5HGXFWLRQLVPFRQWG
,Q )3+75$1 , SURSRVHG DQRWKHU YHUVLRQ RI UHGXFWLRQLVP LQ
UHODWLRQWRQHWZRUNVDQGRSHUDWLRQVHJWKHQDWXUDODUJXPHQWYV
WKH VRFLDO DUJXPHQW YV WKH FXOWXUDO DUJXPHQW YV WKH PHQWDO
DUJXPHQW
$QG LQ )3+&$ , SURSRVH DQRWKHU YHUVLRQ RI UHGXFWLRQLVP LQ
UHODWLRQ WR LQJUHGLHQWV DQG WHFKQLTXHV HJ WKH QDWXUDO DUJXPHQW
YV WKH VRFLDO DUJXPHQW YV WKH FXOWXUDO DUJXPHQW YV WKH PHQWDO
DUJXPHQW
0HWKRGRORJLFDO5HGXFWLRQLVP
$ JRRG LQVWDQFH FRQFHUQV WKH GHEDWH EHWZHHQ GLIIHUHQW YHUVLRQV RI
TXDOLWDWLYH DQG TXDQWLWDWLYH PHWKRGV DV DOUHDG\ DQDO\]HG LQ )&
DQGDOVR)+&,Q)3+0/,H[DPLQHGVLPLODUUHGXFWLRQLVPWKLV
WLPH LQ WKH OLWHUDWXUH RQ PDWKHPDWLFDO ORJLF HJ WKH REVHVVLRQ
ZLWKFRQVLVWHQF\VRXQGQHVVDQGFRPSOHWHQHVV$QGLQ)3+)6,
DOVR H[SORUHG WKH SUREOHPV RI UHGXFWLRQLVP LQ WKH FRQWH[W RI
IRUPDOVFLHQFHHJWKHDQDO\WLFDODUJXPHQW
2QWRORJLFDO5HGXFWLRQLVP
$Q H[FHOOHQW H[DPSOH LV WKH GHEDWH EHWZHHQ HPHUJHQWLVP DQG
UHGXFWLRQLVP LQ FRPSOH[LW\ WKHRU\ DQG DOVR LQ SV\FKRORJ\ DV
HODERUDWHGLQ)3+&LQWKHFRQWH[WRI%HLQJDQG%HFRPLQJ
$JDLQVWWKH9DULHWLHVRI5HYHUVH5HGXFWLRQLVP
&RQFHSWXDO5HYHUVH5HGXFWLRQLVP
$Q\FRQFHSWRIDUWHJILQHDUWFDYHDUWRXWVLGHUDUWMXQNDUWLV
GHHPHG DFFHSWDEOH LQ SRVWPRGHUQLVP DV DOUHDG\ DGGUHVVHG LQ
&KRI)+&
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
FRQWLQXHGRQQH[WSDJH
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
7DEOH2Q5HGXFWLRQLVPDQG5HYHUVH5HGXFWLRQLVP
3DUW9,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
$JDLQVWWKH9DULHWLHVRI5HYHUVH5HGXFWLRQLVPFRQW
G
7KHRUHWLFDO5HYHUVH5HGXFWLRQLVP
7KHUHDUHQXPHURXVDUWDQGOLWHUDU\WKHRULHVFRH[LVW7DNHWKHFDVH
RIOLWHUDU\VWXGLHVDVWKHUHDUHQRZ/LWHUDU\6WUXFWXUDOLVP0DU[LVW
/LWHUDU\&ULWLFLVP1HZ&ULWLFLVP3KHQRPHQRORJ\+HUPHQHXWLFV
/DQJXDJH*DPH /LWHUDU\ &ULWLFLVP )HPLQLVW /LWHUDU\ &ULWLFLVP
5HFHSWLRQ 7KHRU\ 5HDGHU 5HVSRQVH &ULWLFLVP 3RVWVWUXFWXUDOLVP
6HPLRWLFV 3\VFKRDQDO\WLF /LWHUDU\ &ULWLFLVP MXVW WR FLWH VRPH
ZHOONQRZQ RQHV ZLWK QR RQH EHLQJ VDLG WR EH EHWWHU WKDQ DQ\
RWKHUVDVGHWDLOHGO\DQDO\]HGLQ &KRI)+&6 5DPDQ
,Q %11 , HYHQ LQWURGXFHG WKH FRPSURPLVH IDOODF\ DV DQRWKHU
JRRG LOOXVWUDWLRQ RI WKHRUHWLFDO UHYHUVHUHGXFWLRQLVP LQ
PLVOHDGLQJO\ WUHDWLQJ ERWK JHQHWLF DQG HQYLURQPHQWDO DSSURDFKHV
DVHTXDOO\YDOLG
0HWKRGRORJLFDO5HYHUVH5HGXFWLRQLVP
7KHUH LV WKH DQ\WKLQJJRHV PHQWDOLW\ LQ SRVWPRGHUQLVP HJ
GRLQJ DUW ZLWKRXW SUD[LV GRLQJ DUW ZLWK SUD[LV DQG GRLQJ DUW E\
VXEODWLRQ DV DQDO\]HG LQ &K RI )+& $QG LQ )3+)6 , DOVR
H[SRVHG WKH SUREOHPV RI UHYHUVHUHGXFWLRQLVP LQ WKH FRQWH[W RI
IRUPDOVFLHQFHLQUHODWLRQWRV\VWHPVWKHRU\
2QWRORJLFDO5HYHUVH5HGXFWLRQLVP
7KHUHDUHOLNHZLVHQRSULYLOHJHGRQWRORJ\DQGWKHGRRULVRSHQIRU
DQ\WKLQJLQSRVWPRGHUQLVPHJWKHHTXDOVWDWXVRIWKHRQWRORJ\
RI %HLQJ YV WKDW RI %HFRPLQJ DV DOUHDG\ DGGUHVVHG LQ &K RI
)+&DQG DOVR LQ )3+& ,Q )$( , DOVR LQWURGXFHG DQRWKHU
YHUVLRQ RI UHYHUVHUHGXFWLRQLVP WKDW LV WKH SOXUDOLVW IDOODF\ LQ
WKH FRQWH[W RI XQGHUVWDQGLQJ DHVWKHWLF H[SHULHQFH IRU LQVWDQFH
DOWKRXJK WKLV IDOODF\ KDV EHHQ FRPPLWWHG QRW H[FOXVLYHO\ LQ
UHODWLRQ WR WKH RQWRORJLFDO OHYHO EXW DOVR DW WKH FRQFHSWXDO
WKHRUHWLFDODQGPHWKRGRORJLFDORQHV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
6RXUFHV)URPP\SUHYLRXVERRNV
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7DEOH7KH&RQFHSWRQRI([LVWHQWLDO'LDOHFWLFV
3DUW,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
6HWVDQG(OHPHQWV
6HWV
([WKH6DPH
([WKH2WKHUV
(OHPHQWV
([ZKLWHVLQWKFHQWXU\$PHULFDLQWKHVHWRIWKH6DPH
([,UDTGXULQJWKH86LQYDVLRQLQLQWKHVHWRIWKH
2WKHUV
5HODWLRQV2SHUDWLRQV)XQFWLRQV
5HODWLRQVHJEHORQJVHTXDOVWRLVJUHDWHUWKDQ
([V\PPHWULFLQWHUDFWLRQVZLWKLQWKH6DPHRUWKH2WKHUV
([DV\PPHWULFLQWHUDFWLRQVEHWZHHQWKH6DPHDQGWKH2WKHUV
2SHUDWLRQVHJDQGRUQRWLIWKHQ
([LIWKH6DPHRSSUHVVHVWKH2WKHUVLWZLOODOVRRSSUHVVLWVHOI
([WKH6DPHLVQRWWKH2WKHUV
)XQFWLRQVHJJRDOV
([WKH6DPHLVKHJHPRQLFLQUHODWLRQWRWKH2WKHUV
7UXWK9DOXHV
LI7UXHLQ6\PEROLF/RJLF
([WKHSURSRVLWLRQWKDWLPSHULDO-DSDQZDVKHJHPRQLFWR&KLQD
GXULQJ::,,
LI)DOVHLQ6\PEROLF/RJLF
([WKHSURSRVLWLRQWKDW*UHQDGDLQYDGHG)UDQFHLQ
LI%RWK7UXHDQG)DOVHLQ'LDOHFWLF/RJLF
([WKHSURSRVLWLRQWKDWWKHUDEELWGXFNSLFWXUHUHIHUVWRDGXFN
a aLI1HLWKHU7UXH1RU)DOVHRU1$LQ'LDOHFWLF/RJLF
([WKHSURSRVLWLRQWKDW*RGUHDOO\H[LVWV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
FRQWLQXHGRQQH[WSDJH
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
7DEOH7KH&RQFHSWLRQRI([LVWHQWLDO'LDOHFWLFV
3DUW,,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
$[LRPVDQG3RVWXODWHV
$[LRPV
([WKHUHIOH[LYHD[LRPDQ\TXDQWLW\LVHTXDOWRLWVHOI
3RVWXODWHV
([ WKH 666 SRVWXODWHLI WKH WKUHH VLGHV RI D WULDQJOH DUH
FRQJUXHQWWRWKHLUFRUUHVSRQGLQJSDUWVWKHQWKHWULDQJOHVDUH
FRQJUXHQW
7KHRUHPVDQG3ULQFLSOHV
7KHRUHPVDQG3ULQFLSOHVLQ([LVWHQWLDO'LDOHFWLFV
,Q5HODWLRQWR0HWKRG
7KHIRUPDOQHVVLQIRUPDOQHVVSULQFLSOH
7KHDEVROXWHQHVVUHODWLYHQHVVSULQFLSOH
7KHSDUWLDOLW\WRWDOLW\SULQFLSOH
7KHSUHGLFWDELOLW\XQSUHGLFWDELOLW\SULQFLSOH
7KHH[SOLFDELOLW\LQH[SOLFDELOLW\SULQFLSOH
7KHILFWLRQUHDOLW\SULQFLSOH
,Q5HODWLRQWR6WUXFWXUH
7KHILQLWHQHVVWUDQVILQLWHQHVVSULQFLSOH
7KHSUHFLVHQHVVYDJXHQHVVSULQFLSOH
7KHVLPSOHQHVVFRPSOLFDWHGQHVVSULQFLSOH
7KHRSHQQHVVKLGGHQQHVVSULQFLSOH
7KHGHQVHQHVVHPSWLQHVVSULQFLSOH
,Q5HODWLRQWR3URFHVV
7KHFKDQJHFRQVWDQF\SULQFLSOH
7KHRUGHUFKDRVSULQFLSOH
7KHVORZQHVVTXLFNQHVVSULQFLSOH
7KHH[SDQVLRQFRQWUDFWLRQSULQFLSOH
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
FRQWLQXHGRQQH[WSDJH
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7DEOH7KH&RQFHSWLRQRI([LVWHQWLDO'LDOHFWLFV
3DUW,,,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
7KHRUHPVDQG3ULQFLSOHVFRQWG
7KHRUHPVDQG3ULQFLSOHVLQ([LVWHQWLDO'LDOHFWLFV
,Q5HODWLRQWR$JHQF\
7KHWKHRU\SUD[LVSULQFLSOH
7KHFRQYHQWLRQQRYHOW\SULQFLSOH
7KHHYROXWLRQWUDQVIRUPDWLRQSULQFLSOH
7KHV\PPHWU\DV\PPHWU\SULQFLSOH
7KHVRIWQHVVKDUGQHVVSULQFLSOH
7KHVHULRXVQHVVSOD\IXOQHVVSULQFLSOH
7KHDFWLYHQHVVLQDFWLYHQHVVSULQFLSOH
7KHVHOIQHVVRWKHUQHVVSULQFLSOH
,Q5HODWLRQWR2XWFRPH
7KHUHJUHVVLRQSURJUHVVLRQSULQFLSOH
7KHVDPHGLIIHUHQFHSULQFLSOH
7KHVWDELOLW\UHDFWLRQSULQFLSOH
7KHIXQFWLRQDOLW\QRQIXQFWLRQDOLW\SULQFLSOH
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
1RWHV 7KH FDWHJRULHV DQG H[DPSOHV LQ HDFK DUH VROHO\ LOOXVWUDWLYH QRW
H[KDXVWLYH 7KH FRPSDULVRQ LV DOVR UHODWLYH QRW DEVROXWH QRU DUH WKH\
PXWXDOO\H[FOXVLYH$VJHQHUDOLWLHVWKH\DOORZH[FHSWLRQV
6RXUFHV6WDUWLQJIURP&KRI%&3&DQGDOVRIURPRWKHUERRNVRIPLQH
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
7DEOH7KH6\QWD[RI([LVWHQWLDO'LDOHFWLFV,
7KH3ULQFLSOHV
3DUW,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
,Q5HODWLRQWR0HWKRG
7KH)RUPDOQHVV,QIRUPDOQHVV3ULQFLSOH
2QWKH)RUPDO5HTXLUHPHQWVRI/RJLFDO6\VWHPV
7KHIRUPDOUHTXLUHPHQWVRIDORJLFDOV\VWHPHJFRQVLVWHQF\
VRXQGQHVV DQG FRPSOHWHQHVV KDYH ERWK XVHIXOQHVV DQG QRQ
XVHIXOQHVV WR WKH H[WHQW WKDW LI WKHUH DUH IRUPDO V\VWHPV UHTXLULQJ
WKHP WKHUH DUH DOWHUQDWLYH RQHV ZKLFK GR QRW 7KXV LW GRHV QRW
H[FOXGHFODVVLFDOORJLFVEXWVLPSO\JRHVEH\RQGERWKFODVVLFDODQG
QRQFODVVLFDO ORJLFV ZKLOH OHDUQLQJ VRPHWKLQJ IURP HDFK 7KHUH LV
QRIRUPDOQHVVZLWKRXWLQIRUPDOQHVVDQGYLFHYHUVD
)RU LQVWDQFH H[LVWHQWLDO GLDOHFWLFV FDQ PDNH XVH RI ERWK FODVVLFDO
ORJLFV XQGHU FHUWDLQ FRQGLWLRQV HJ HVSHFLDOO\ WKRXJK QRW
H[FOXVLYHO\ ZKHQ WKH\ DUH FOHDUFXW HWF DQG QRQFODVVLFDO ORJLFV
XQGHU DOWHUQDWLYH FRQGLWLRQV HVSHFLDOO\ WKRXJK QRW H[FOXVLYHO\
ZKHQ WKH\ DUH XQNQRZQ LUUHOHYDQW DPELJXRXV SRVVLEOH
ZLWK GLIIHUHQW GHJUHHV RI WUXWK HPSLULFDOO\ LQFRQVLVWHQW LQ D
GHVLUDEOHZD\HWF:.X
)DPLO\ UHVHPEODQFH HJ ORJLFDOQHVVQRQORJLFDOQHVV UDWLRQDOLW\
QRQUDWLRQDOLW\HWF
6RXUFHV)URP)3+0/)3++)3+*$0)3+6(0DQGP\ODWHU
ERRNV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
FRQWLQXHGRQQH[WSDJH
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7DEOH7KH6\QWD[RI([LVWHQWLDO'LDOHFWLFV,
7KH3ULQFLSOHV
3DUW,,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
,Q5HODWLRQWR0HWKRGFRQWG
7KH$EVROXWHQHVV5HODWLYHQHVV3ULQFLSOH
2QWKH0XOWLSOLFLW\RI7KLQJV
7KHUH LV WKH PXOWLSOLFLW\ RI WKLQJV LQ UHDOLW\ EH WKH\ DERXW HQWLWLHV
TXDOLWLHV RU SURSHUWLHV DQG UHODWLRQVKLSV VXFK WKDW ZKDW LV
DFFHSWDEOH IURP RQH VWDQGSRLQW PD\ QRW EH VR IURP DQRWKHU )RU
LQVWDQFHLIWKHUHLVVRPHWKLQJDEVROXWHWKHUHLVOLNHZLVHVRPHWKLQJ
UHODWLYH 7KHUH LV QR DEVROXWHQHVV ZLWKRXW UHODWLYHQHVVDQG YLFH
YHUVD
%RWKDEVROXWHQHVVDQGUHODWLYHQHVVKHUHDUHDOVRUHOHYDQWWRGLIIHUHQW
PRGDOLWLHV RIWHQ FLWHG LQ WKH OLWHUDWXUH RQ RQWRORJ\ VXFK DV
SRVVLELOLW\ HJ VRPHWKLQJ FDQ KDSSHQ DQG LWV RSSRVLWH HJ
LPSRVVLELOLW\ SUREDELOLW\ HJ VRPHWKLQJ ZLOO KDSSHQ DQG LWV
RSSRVLWH HJ LPSUREDELOLW\ DQG QHFHVVLW\ HJ VRPHWKLQJ
VKRXOGKDSSHQDQGLWVRSSRVLWHHJFRQWLQJHQF\
)DPLO\ UHVHPEODQFH HJ XQLIRUPLW\GLYHUVLW\ LQWHUQDOQHVV
H[WHUQDOQHVVLPPDQHQFHWUDQVFHQGHQFHLQGHSHQGHQFHGHSHQGHQFH
LVRODWHGQHVVLQWHUFRQQHFWLYHQHVV
DXWRQRP\LQWHUGHSHQGHQF\
XQLYHUVDOQHVVUHODWLYHQHVVHWF
6RXUFHV)URP)3+.6HHDOVRP\ODWHUERRNV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
FRQWLQXHGRQQH[WSDJH
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
7DEOH7KH6\QWD[RI([LVWHQWLDO'LDOHFWLFV,
7KH3ULQFLSOHV
3DUW,,,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
,Q5HODWLRQWR0HWKRGFRQWG
7KH3DUWLDOLW\7RWDOLW\3ULQFLSOH
2QWKH5HODWLRQVKLSVEHWZHHQ:KROHDQG3DUWV
7KHZKROHLVQRWWKHVXPRIWKHSDUWV7KHUHLVQRSDUWLDOLW\ZLWKRXW
WRWDOLW\DQGYLFHYHUVD
$Q\LQTXLU\DERXWDSKHQRPHQRQLQWKHZRUNLVWRJXDUGDJDLQVWWKH
YDULHWLHVRIDUHGXFWLRQLVPDQGEUHYHUVHUHGXFWLRQLVP
5HGXFWLRQLVPDQGUHYHUVHUHGXFWLRQLVPFDQEHLFRQFHSWXDOLL
WKHRUHWLFDOLLLPHWKRGRORJLFDODQGLYRQWRORJLFDO
:RUNV RQ HPHUJHQFH DV LQ )& JHVWDOW SV\FKRORJ\ DV LQ
)3+*(2/ WKH KHUPHQHXWLF FLUFOH DV LQ )3+'$ DQG PHQWDO
ODQJXDJH DV LQ )3+6(0 WR QDPH MXVW D IHZ RI WKHP KDYH
FRQWULEXWHGWRWKHXQGHUVWDQGLQJRIZKROHDQGSDUWV
)DPLO\ UHVHPEODQFH HJ LQGLYLGXDOLVWLFQHVVKROLVWLFQHVV SDUWQHVV
ZKROHQHVVDQDO\VLVV\QWKHVLVHWF
6RXUFHV(VSHFLDOO\IURP)& )3+*(2/6HHDOVRP\ODWHUERRNV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
FRQWLQXHGRQQH[WSDJH
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7DEOH7KH6\QWD[RI([LVWHQWLDO'LDOHFWLFV,
7KH3ULQFLSOHV
3DUW,9
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
,Q5HODWLRQWR0HWKRGFRQWG
7KH3UHGLFWDELOLW\8QSUHGLFWDELOLW\3ULQFLSOH
2QWKH2FFXUUHQFHRI(YHQWV
%RWKSUHGLFWDELOLW\DQGXQSUHGLFWDELOLW\KDYHDPDMRUUROHWRSOD\LQ
WKH RFFXUUHQFH RI WKLQJV VR WKDW QHLWKHU GHWHUPLQLVP QRU
LQGHWHUPLQLVP ZLQV WKH FHQWXULHVROG ILJKW 7KHUH LV QR
SUHGLFWDELOLW\ZLWKRXWXQSUHGLFWDELOLW\DQGYLFHYHUVD
7KHUHDUHHYHQWVZKLFKDUHSUHGLFWDEOHMXVWDVWKHUHDUHWKRVHZKLFK
DUH QRW 2U ZKDW LV UHJDUGHG DV XQSUHGLFWDEOH DW RQH SRLQW LQ WLPH
PD\ WXUQ RXW WR EH SUHGLFWDEOH ODWHU DQG FRQYHUVHO\ ZKDW LV
GHHPHGDVSUHGLFWDEOHPD\WXUQRXWWRQRWEHVRSUHGLFWDEOH(YHQLQ
SUHGLFWDELOLW\ RXWFRPHV DUH VXEMHFW WR XQFHUWDLQW\ WKH GHJUHH RI
ZKLFKYDULHVIURPFDVHWRFDVH
:RUNV RQ FRPSOH[LW\ WKHRU\ DV LQ )& TXDQWXP PHFKDQLFV DV LQ
)3+67DQG)3+*IUHTXHQF\SUREDELOLW\VXEMHFWLYHRU%D\HVLDQ
SUREDELOLW\ DQG VSHFLDO FDXVHV DV LQ )3+*$0 MXVW WR QDPH D
IHZRIWKHPKDYHFRQWULEXWHGWRWKHXQGHUVWDQGLQJRIXQFHUWDLQLW\
)DPLO\ UHVHPEODQFH HJ VXUHQHVVDUELWUDULQHVV FHUWDLQW\
XQFHUWDLQW\
GHWHUPLQLVWLFQHVVLQGHWHUPLQLVWLFQHVV
VXUHQHVV
GRXEWIXOQHVV OLNHOLQHVVULVNLQHVV GHWHUPLQLVWLFQHVVUDQGRPQHVV
HWF
6RXUFHV(VSHFLDOO\IURP)& )3+*$06HHDOVRP\ODWHUERRNV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
FRQWLQXHGRQQH[WSDJH
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
7DEOH7KH6\QWD[RI([LVWHQWLDO'LDOHFWLFV,
7KH3ULQFLSOHV
3DUW9
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
,Q5HODWLRQWR0HWKRGFRQWG
7KH([SOLFDELOLW\,QH[SOLFDELOLW\3ULQFLSOH
2QWKH8QGHUO\LQJ0HFKDQLVPVRI7KLQJV
%RWKH[SOLFDELOLW\DQGLQH[SOLFDELOLW\DUHSDUWRIWKHXQGHUVWDQGLQJRI
WKLQJV 7KHUH LV QR H[SOLFDELOLW\ ZLWKRXW LQH[SOLFDELOLW\DQG YLFH
YHUVD
7KLVSULQFLSOHWHOOVXVWKHGXDOLW\RIWKHUHVHDUFKGLOHPPDLQWKDWLI
UHDOLW\ FDQ EH H[SODLQHG LQ VRPH ZD\V LW DOVR KDV LWV RWKHU ZD\V
ZKLFKDUHQRWTXLWHH[SODLQDEOHDWDJLYHQSRLQWLQWLPH
)DPLO\ UHVHPEODQFH HJ XQGHUO\LQJQHVVUHJXODUQHVV FDXVDWLRQ
UHJXODUQHVV
FDXVDWLRQFRUUHODWLRQ
H[SODQDWLRQGHVFULSWLRQ
H[SODQDWLRQQDUUDWLRQH[SODQDWLRQLQWHUSUHWDWLRQHWF
6RXUFHV(VSHFLDOO\IURP)3+8DQGDOVR)3+&6HHDOVRP\ODWHU
ERRNV
7KH)LFWLRQ5HDOLW\3ULQFLSOH
2QWKHGLIIHUHQWIDFHVRI5HDOLW\
,IWKHUHLVUHDOLW\WKHUHLVDOVRILFWLRQHVSHFLDOO\IRUDQ\DJHQWZLWK
VRPH NLQG RI LQWHOOLJHQFH OLIH EH LW DERXW KXPDQV DQLPDOV RU
ODWHU SRVWKXPDQV 7KHUH LV QR UHDOLW\ ZLWKRXW ILFWLRQDQG YLFH
YHUVD
7KH GLVWLQFWLRQ EHWZHHQ UHDOLW\ DQG ILFWLRQ LV QRW DEVROXWH VLQFH
WKHUH FDQ EH D PL[WXUH RI ERWK )LFWLRQ FDQ KDYH QRQILFWLRQDO
HOHPHQWV MXVW DV QRQILFWLRQ FDQ KDYH ILFWLRQDO RQHV 6R WKH
GLVWLQFWLRQLVLQGHJUHHQRWLQNLQG
)DPLO\ UHVHPEODQFH HJ ILFWLRQQRQILFWLRQ ILFWLRQIDFW
LPDJLQDWLRQIDFW VXEMHFWLYLW\REMHFWLYLW\ LPDJLQDWLRQQRQILFWLRQ
HWF
6RXUFHV)LUVWIURP)3+/,7
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
FRQWLQXHGRQQH[WSDJH
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7DEOH7KH6\QWD[RI([LVWHQWLDO'LDOHFWLFV,
7KH3ULQFLSOHV
3DUW9,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
,Q5HODWLRQWR6WUXFWXUH
7KH)LQLWHQHVV7UDQVILQLWHQHVV3ULQFLSOH
2QWKH1DWXUHRI1XPEHUV
,IWKHUHDUHILQLWHWKLQJVWKHUHDUHOLNHZLVHWUDQVILQLWHRQHV7KHUHLV
QRILQLWHQHVVZLWKRXWWUDQVILQLWHQHVVDQGYLFHYHUVD
7RDYRLGFRQIXVLRQ P\ XVDJHRIWKH ZRUG WUDQVILQLWHKHUHGLIIHUV
UDGLFDOO\ IURP WKH RQH XVHG E\ &DQWRU DQG RWKHU PDWKHPDWLFLDQV
IRUUHODWLYHLQILQLW\DQGLVPRUHOLPLWHGLQOLJKWRIWKHSUREOHPV
FRQIURQWLQJDQ\DWWHPSWWRXQGHUVWDQGWKHLGHDRILQILQLW\ EHLWE\
LQWXLWLRQ LPDJLQDWLRQ DQG FRQFHSWLRQ DV GHWDLOHGO\ DQDO\]HG LQ
6HFRI)3+*
,QVWHDGE\WUDQVILQLW\,DOORZQXPEHUVZKLFKFDQEHPDQ\WLPHV
ODUJHURU VPDOOHU IRU WKDW PDWWHUWKDQ WKH ILQLWH WKLQJV WKDW ZH
HQFRXQWHULQGDLO\OLIHEXWWKH\GRQRWKDYHWREHUHODWHGWRWKHLGHD
RILQILQLW\DWDOOZKLFKPD\QRWH[LVW
2I FRXUVH WKHUH PD\ EH VRPH ERUGHUOLQH FDVHV LQ ZKLFK LW LV QRW
FOHDUZKHWKHUWKHQXPEHULQTXHVWLRQLVWUDQVILQLWHLQP\XVDJHRU
VLPSO\ D PDWKHPDWLFDO FRQYHQLHQFH $ JRRG H[DPSOH RI D
ERUGHUOLQHFDVHLVWKH3ODQFN XQLWRIOHQJWK IRU WKHVPDOOHVWVSDFH
SRVVLEO\ PHDVXUHG LQ QDWXUH ZKLFK LV OHVV WKDQ ELOOLRQWKV RI
WULOOLRQWKV RI WULOOLRQWKV RI DQ LQFK RU VRPHWKLQJ OLNH
PHWHUV
7KDW VDLGP\ XVDJH RI WUDQVILQLW\ FDQ DOVR UHVROYH RU EHWWHU
GLVVROYH DQ DJHROG SUREOHP LQ SKLORVRSK\ NQRZQ DV =HQR
V
SDUDGR[HVDVDOUHDG\H[SODLQHGLQ6HFRI)3+*
)DPLO\ UHVHPEODQFH HJ ERXQGHGQHVVTXDVLXQERXQGHGQHVV
VPDOOQHVVODUJHQHVVERXQGHGQHVVXQERXQGHGQHVVHWF
6RXUFH)URP)3+*6HHDOVRP\ODWHUERRNV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
FRQWLQXHGRQQH[WSDJH
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
7DEOH7KH6\QWD[RI([LVWHQWLDO'LDOHFWLFV,
7KH3ULQFLSOHV
3DUW9,,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
,Q5HODWLRQWR6WUXFWXUHFRQWG
7KH3UHFLVHQHVV9DJXHQHVV3ULQFLSOH
2QWKH5HILQHPHQWRI7KLQJV
%RWKSUHFLVHQHVVDQGYDJXHQHVVDUHLPSRUWDQWQRWWKDWRQHLVEHWWHU
WKDQ WKH RWKHU EXW WKDW ERWK DUH XVHG LQ GLIIHUHQW GHJUHHV RI
SUHIHUHQFH LQ DFFRUGDQFH WR WKH FRQWH[WXDO DSSOLFDWLRQ IURP WKH
SHUVSHFWLYHV RI QDWXUH WKH PLQG FXOWXUH DQG VRFLHW\ (YHQ ZKHQ
ERWKDUHXVHGLQDFRPELQDWLRQWKHGLOHPPDLVVKLIWHGLQVWHDGWRRQH
RI FRPELQDWLRQDO FRQFHUQ 7KHUH LV QR SUHFLVHQHVV ZLWKRXW
YDJXHQHVVDQGYLFHYHUVD
,QUHODWLRQWRWD[RQRP\SUHFLVHQHVVKDVLWVWD[RQRPLFFODULW\MXVWDV
YDJXHQHVV KDV LWV FODVVLILFDWRU\ IOH[LELOLW\ IRU LQVWDQFH $QG LQ
UHODWLRQ WR QHWZRUN YDJXHQHVV KDV LWV H[SORUDWLYH OLEHUW\ MXVW DV
SUHFLVHQHVVKDVLWVFRQFHSWXDOGHILQLWLYHQHVVIRULQVWDQFH
)DPLO\ UHVHPEODQFH HJ FODULW\DPELJXLW\ GLUHFWQHVVLQGLUHFWQHVV
TXDQWLWDWLYHQHVVTXDOLWDWLYHQHVV GHVFULEDELOLW\QRQGHVFULEDELOLW\
VSHFLILFLW\REVFXULW\ VSHFLILFLW\JHQHUDOLW\ WKLFNQHVVWKLQQHVV
WUDQVODWDELOLW\XQWUDQVODWDELOLW\
FOHDUFXWQHVVWUDQVLWLRQDOQHVV
FRQFUHWHQHVVDEVWUDFWQHVVHWF
6RXUFHV(VSHFLDOO\IURP),$6HHDOVRP\ODWHUERRNV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
FRQWLQXHGRQQH[WSDJH
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7DEOH7KH6\QWD[RI([LVWHQWLDO'LDOHFWLFV,
7KH3ULQFLSOHV
3DUW9,,,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
,Q5HODWLRQWR6WUXFWXUHFRQWG
7KH6LPSOHQHVV&RPSOLFDWHGQHVV3ULQFLSOH
2QWKH,QWHUFRQQHFWLRQDPRQJ7KLQJV
%RWKVLPSOHQHVVDQGFRPSOLFDWHGQHVVDUHYLWDOZLWKRXWIDYRULQJRQH
RYHUWKHRWKHULQWKDWHDFKLVXWLOL]HGGHSHQGLQJRQWKHEDVLVRIWKH
SHUVSHFWLYHV RI QDWXUH WKH PLQG FXOWXUH DQG VRFLHW\ $QG HYHQ
ZKHQ D FRPELQDWLRQ RI WKHP LV SUHIHUUHG WKH GLOHPPD LV RQO\
VKLIWHGWRDFRPELQDWLRQDOGHJUHHRIFRQFHUQ7KHUHLVQRVLPSOHQHVV
ZLWKRXWFRPSOLFDWHGQHVVDQGYLFHYHUVD
,QUHODWLRQWRWD[RQRP\VLPSOHQHVVKDVLWVKHXULVWLFXVHIXOQHVVMXVW
DVFRPSOLFDWHGQHVVKDVLWVUHDOLVWLFUHSUHVHQWDWLRQIRULQVWDQFH$QG
LQUHODWLRQWRQHWZRUNVLPSOHQHVVKDVLWVHFRQRPLFDODWWUDFWLYHQHVV
MXVWDVFRPSOLFDWHGQHVVKDVLWVSUDFWLFDOUHOLDELOLW\IRULQVWDQFH
)DPLO\ UHVHPEODQFH HJ LQIOH[LELOLW\IOH[LELOLW\ VWDQGDUGL]DWLRQ
VSHFLDOL]DWLRQ LPSHUIHFWQHVVSHUIHFWQHVV VXSHUILFLDOLW\GHSWK
VKDOORZQHVVGHHSQHVV HFRQRPLFDOQHVVHODERUDWHGQHVV SODLQQHVV
FLUFXPVSHFWLRQ
RQHVLGHGQHVVPXOWLVLGHGQHVV
VXFFLQFWQHVV
GXSOLFDWHGQHVVHWF
6RXUFHV(VSHFLDOO\IURP),$6HHDOVRP\ODWHUERRNV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
FRQWLQXHGRQQH[WSDJH
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
7DEOH7KH6\QWD[RI([LVWHQWLDO'LDOHFWLFV,
7KH3ULQFLSOHV
3DUW,;
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
,Q5HODWLRQWR6WUXFWXUHFRQWG
7KH2SHQQHVV+LGGHQQHVV3ULQFLSOH
2QWKH'HWHFWLRQRI7KLQJV
5HDOLW\KDVLWVKLGGHQIDFHMXVWDVLWLVRSHQWRRXWVLGHYLHZLQVRPH
RWKHU ZD\V 7KHUH LV QR RSHQQHVV ZLWKRXW KLGGHQQHVVDQG YLFH
YHUVD
)RULQVWDQFHLQWKHFRQWH[WRIDQRPDORXVH[SHULHQFHFHUWDLQDVSHFWV
RI UHDOLW\ FDQ EH RSHQ IRU H[DPLQDWLRQ HJ WKH H[SHULPHQW ZLWK
63(&7LPDJHVWKHWUDQVPLVVLRQRIWHOHSDWKHPLFELWDQGWKHXVHRI
PHWRQ\PLHV DQG PHWDSKRUV 2WKHU DVSHFWV KRZHYHU UHPDLQ
KLGGHQDQGH[DPSOHVLQFOXGHWKHHOXVLYHGHHSHUQDWXUHRIVSLULWXDO
UHDOLW\ LQ WKH LQWDQJLEOH UHDOP WKH XQGHWHFWDELOLW\ RI GLIIHUHQW
EUDQFKHGXQLYHUVHVWKHXQGHUO\LQJPHFKDQLVPVRIVLJQDOVWUDYHOLQJ
EHWZHHQGLIIHUHQWIROGVRISK\VLFDOVSDFHWLPHDQGWKHGHSHQGHQFH
RQODQJXDJHDQGWKHELDVIRUVFLHQFHDQGORJLF
)DPLO\ UHVHPEODQFH HJ RYHUWQHVVFRYHUWQHVV SXEOLFQHVV
SULYDWHQHVV RSHQQHVVFORVHGQHVV WUDQVSDUHQF\VHFUHF\ RSHQQHVV
ELDVHGQHVV SDUWLFLSDWLRQREVWUXFWLRQ H[SRVLWLRQLOOXVLRQ VXUIDFH
GHSWKHWF
6RXUFHV(VSHFLDOO\IURP)3+86HHDOVRP\ODWHUERRNV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
FRQWLQXHGRQQH[WSDJH
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7DEOH7KH6\QWD[RI([LVWHQWLDO'LDOHFWLFV,
7KH3ULQFLSOHV
3DUW;
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
,Q5HODWLRQWR6WUXFWXUHFRQWG
7KH'HQVHQHVV(PSWLQHVV3ULQFLSOH
2QWKH'LVWULEXWLRQRI(QWLWLHVLQ6SDFH
%RWK GHQVLW\ DQG YRLG DUH QHHGHG LQ UHODWLRQ WR WKH PLQG QDWXUH
FXOWXUHDQGVRFLHW\DOEHLWLQGLIIHUHQWZD\V7KHUHLVQRGHQVHQHVV
ZLWKRXWHPSWLQHVVDQGYLFHYHUVD
)RUFODULW\WKHWHUPYRLGLVXVHGKHUHRQO\DVDQDSSUR[LPDWLRQRI
HPSWLQHVVGHSHQGLQJRQWKHGHJUHHRIWKHODFNRIGHQVLW\VLQFHLQ
SK\VLFVLWLVZHOONQRZQWKDWHPSW\VSDFHLVQRWUHDOO\HPSW\DOO
WKH ZD\ EHFDXVH LW FDQ EH IXOO RI HQHUJ\ HJ UDQGRP TXDQWXP
IOXFWXDWLRQVDWWKHVXEDWRPLFOHYHODQGIRUWKDWPDWWHUGDUNHQHUJ\
LQ WKH XQLYHUVH DQG PDWWHU HJ GLIIHUHQW YHUVLRQV RI VXEDWRPLF
SDUWLFOHVDQGIRUWKDWPDWWHUGDUNPDWWHULQWKHXQLYHUVH
)DPLO\ UHVHPEODQFH HJ IXOOQHVVYRLGQHVV QHDUQHVVIDUQHVV
FRQFHQWUDWLRQGLVSHUVLRQ GHQVHQHVVQRWKLQJQHVV SUHVHQFHDEVHQFH
IRFXVXQIRFXV VROLGQHVVYRLG VRPHWKLQJQRWKLQJ KHDYLQHVV
OLJKWQHVVFRPSRVLWLRQHPSWLQHVVHPSKDVLVGLVHPSKDVLVHWF
6RXUFHV)LUVWZRUNHGRXWLQ)3+836HHDOVRP\ODWHUERRNV
,Q5HODWLRQWR3URFHVV
7KH&KDQJH&RQVWDQF\3ULQFLSOH
2QWKH$OWHUDWLRQRI7KLQJV
&KDQJHRFFXUVRYHUWLPHDOWKRXJKFRQVWDQF\LVDOVRDOORZHG7KHUH
LVQRFKDQJHZLWKRXWFRQVWDQF\DQGYLFHYHUVD
$V\PPHWU\XQGHUJRHVFKDQJHVRYHUWLPHVRGRHVV\PPHWU\
2OGSOD\HUVIDGHDZD\DQGQHZRQHVHPHUJHVZLWKHYHUQHZFDXVHV
DQGHYHUQHZIRUPV
)DPLO\ UHVHPEODQFH HJ G\QDPLFQHVVVWDWLFQHVV LQVWDELOLW\
VWDELOLW\HWF
6RXUFHV)LUVWQDPHGLQ%&3&(VSHFLDOO\IURP)+&)&'DQG
)3+&6HHDOVRRWKHUERRNVRIPLQHIURPWKDWSRLQWRQ
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
FRQWLQXHGRQQH[WSDJH
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
7DEOH7KH6\QWD[RI([LVWHQWLDO'LDOHFWLFV,
7KH3ULQFLSOHV
3DUW;,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
,Q5HODWLRQWR3URFHVVFRQWG
7KH2UGHU&KDRV3ULQFLSOH
2QWKH3DWWHUQRI7KLQJV
%RWKRUGHUDQGFKDRVDUHYLWDOLQWKHSURFHVVRIFKDQJHLQWKHZRUOG
7KHSUHIHUHQFHIRURUGHULVELDVHGVLQFHLWGRHVQRWJLYHVXIILFLHQW
DWWHQWLRQWRWKHYLWDOUROHRIFKDRVLQWKHWUDQVIRUPDWLRQRIWKHZRUOG
ZLWKRXWVRPHKRZUHGXFLQJLWIRUWKHXQGHUVWDQGLQJRIRUGHU7KHUH
LVQRRUGHUZLWKRXWFKDRVDQGYLFHYHUVD
7KHVFLHQWLILFVHDUFKIRURUGHULQWKHZRUOGLVRIWHQDKLGGHQELDVLQ
LWVRQWRORJLFDOREVHVVLRQZLWKRUGHUVLQFHFKDRVLVRIWHQWUHDWHGDV
WKH EDG JX\ ZLWK RUGHU DV WKH JRRG JX\ IRU WKH HQG JRDO RI
VFLHQFH
1HLWKHURUGHUQRUFKDRVLVWKHILQDOHQGRIWKHZRUOGDQGRQHLVQRWWR
EHWUHDWHGDVWKHPHDQVIRUWKHRWKHULQWKHWUDQVIRUPDWLRQRIWKLQJV
%RWKDUHIXQGDPHQWDOLQWKHLUUHFXUUHQWGLDOHFWLFDOLQWHUDFWLRQVZLWK
HDFKRWKHURYHUWLPHZLWKRXWUHGXFLQJRQHIRUWKHRWKHU
)DPLO\ UHVHPEODQFH HJ ODZIXOQHVVGLVRUGHU RUGHUGLVRUGHU
OLQHDULW\QRQOLQHDULW\ OLQHDULW\LUUHYHUVDOQHVV SDWWHUQFKDRV XQLW\
GLVXQLW\HWF
6RXUFHV(VSHFLDOO\IURP)&6HHDOVRP\ODWHUERRNV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
FRQWLQXHGRQQH[WSDJH
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7DEOH7KH6\QWD[RI([LVWHQWLDO'LDOHFWLFV,
7KH3ULQFLSOHV
3DUW;,,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
,Q5HODWLRQWR3URFHVVFRQWG
7KH6ORZQHVV4XLFNQHVV3ULQFLSOH
2QWKH6SHHGRI&KDQJH
%RWK VORZQHVV DQG TXLFNQHVV FRH[LVW ZLWK WKHLU RZQ LQWHUQDO
WHQVLRQWRWKHH[WHQWWKDWHDFKILJKWVIRULWVRZQUHOHYDQFHZLWKWKH
RWKHULQDFFRUGDQFHWRWKHSHUVSHFWLYHVRIQDWXUHWKHPLQGFXOWXUH
DQG VRFLHW\ ZLWKRXW RQH EHLQJ WKH YLFWRU DQG WKH RWKHU EHLQJ WKH
YDQTXLVKHG LQ WKH ORQJ KDXO (YHQ ZKHQ ERWK DUH FKRVHQ LQ RWKHU
FDVHV WKLV GLOHPPD LV RQO\ WUDQVIHUUHG LQWR VRPHWKLQJ HOVH ZLWK D
FRPELQDWLRQDOFKDUDFWHU7KHUHLVQRVORZQHVVZLWKRXWTXLFNQHVV
DQGYLFHYHUVD
,QUHODWLRQWRWD[RQRP\TXLFNQHVV KDVLWVHIILFLHQW XVDELOLW\MXVWDV
VORZQHVV KDV LWV DHVWKHWLF DSSHDO IRU LQVWDQFH $QG LQ UHODWLRQ WR
QHWZRUN TXLFNQHVV KDV LWV DGYHQWXURXV UHDGLQHVV MXVW DV VORZQHVV
KDVLWVULVNDGYHUVHFRQYHQLHQFHIRULQVWDQFH
)DPLO\ UHVHPEODQFH HJ LQFRQYHQLHQFHFRQYHQLHQFH SDVVLYHQHVV
DFWLYHQHVVQHVV JUDGXDOQHVVDEUXSWQHVV GHFHOHUDWLRQDFFHOHUDWLRQ
GLIILFXOW\HDVHHWF
6RXUFHV(VSHFLDOO\IURP),$6HHDOVRP\ODWHUERRNV
7KH([SDQVLRQ&RQWUDFWLRQ3ULQFLSOH
2QWKH*URZWKRI7KLQJV
(QWLWLHVLQWKH ZRUOGFDQERWKH[SDQGLQVRPH ZD\VDQGFRQWUDFWLQ
RWKHU RQHV DV SDUW RI WKHLU QDWXUH 7KHUH LV QR H[SDQVLRQ ZLWKRXW
FRQWUDFWLRQDQGYLFHYHUVD
)RULQVWDQFHLQWKHFRQWH[WRIDQRPDORXVH[SHULHQFHRQHRILWVPRVW
IDVFLQDWLQJ H[SUHVVLRQV LV QRQH RWKHU WKDQ WKH DQDO\VLV RI GLIIHUHQW
FDXVHVRIWKHVORZEXWVWHDG\H[SDQVLRQDQGIXUWKHUPRUHLISXWLQ
DGLIIHUHQWZD\XQIROGLQJRIXQFRQVFLRXVQHVV
)DPLO\ UHVHPEODQFH HJ FRQTXHVWDXWDUN\ ULVHIDOO VSUHDGVKULQN
H[WHQGLQJQHVVVKRUWHQLQJQHVVZLGHQLQJQDUURZLQJHWF
6RXUFHV(VSHFLDOO\IURP)3+86HHDOVRP\ODWHUERRNV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
FRQWLQXHGRQQH[WSDJH
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
7DEOH7KH6\QWD[RI([LVWHQWLDO'LDOHFWLFV,
7KH3ULQFLSOHV
3DUW;,,,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
,Q5HODWLRQWR$JHQF\
7KH7KHRU\3UD[LV3ULQFLSOH
2QWKH'XDOLW\RI.QRZOHGJH
7KLV KDV WR GR ZLWK WKH GXDOLW\ RI NQRZOHGJH LQ H[LVWHQWLDO
GLDOHFWLFV LQ WKDW LI WKHUH LV WKHRUHWLFDO FRQVWUXFWLRQ WKHUH LV
OLNHZLVH LWV SUDFWLFDO DSSOLFDWLRQ ERWK WHFKQLFDO DQG QRUPDWLYH
7KHUHLVQRWKHRU\ZLWKRXWSUD[LVDQGYLFHYHUVD
)DPLO\ UHVHPEODQFH HJ GLVFRYHU\DSSOLFDWLRQ NQRZOHGJHDFWLRQ
LQYHQWLRQLQQRYDWLRQ NQRZOHGJHPRWLYDWLRQ WKHRU\LQWHQWLRQDOLW\
XQLYHUVDOLW\SDUWLFXODULW\GLVFRXUVHDFWLRQNQRZOHGJHLQWHUHVWHWF
6RXUFH(VSHFLDOO\IURP)3+(6HHDOVRP\ODWHUERRNV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
FRQWLQXHGRQQH[WSDJH
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7DEOH7KH6\QWD[RI([LVWHQWLDO'LDOHFWLFV,
7KH3ULQFLSOHV
3DUW;,9
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
,Q5HODWLRQWR$JHQF\FRQWG
7KH&RQYHQWLRQ1RYHOW\3ULQFLSOH
2QWKH1DWXUHRI&UHDWLYH7KLQNLQJ
,IWKHUHLVFRQYHQWLRQDOZLVGRPWKHUHLVOLNHZLVHQRYHOFKDOOHQJHWR
WKHH[WHQWWKDWERWKFRQYHUJHQWDQGGLYHUJHQWWKLQNLQJDUHSDUWRI
OLIH7KHUHLVQRFRQYHQWLRQZLWKRXWQRYHOW\DQGYLFHYHUVD
,QDGGLWLRQLQWKLVFRQWH[WRIWKHFRQYHQWLRQQRYHOW\SULQFLSOHWKHUH
DUHLQWKHDEVHQFHRIEHWWHUZRUGVZKDW,ZDQWWRFDOODFUHDWLYH
WHFKQLTXHV DQG E FUHDWLYH WUDLWV ZKLFK ZKHQ VDWLVILHGLQ
UHODWLRQ WR WKH ODUJHU FRQWH[W RI WKH PLQG QDWXUH VRFLHW\ DQG
FXOWXUHFDQ EH XVHG WR HQKDQFH FUHDWLYH ZRUNV 7KH OLVW RI
FUHDWLYH WHFKQLTXHV DQG WUDLWV DV VXPPDUL]HG LQ 7DEOH RI
)3+&7 DUH QRW H[KDXVWLYH RI FRXUVH EXW WKH H[DPSOHV KHUH
FRQVWLWXWH D JUHDW EHJLQQLQJ RI XQGHUVWDQGLQJ WKH VWUXFWXUH RI
FUHDWLYHWKLQNLQJ
<HWOHVWWKHUHDGHUJHWVFDUULHGDZD\E\WKHHXSKRULDDERXWFUHDWLYH
WKLQNLQJLQRXUWLPHLWVKRXOGEHUHPLQGHGWKDWFUHDWLYHWKLQNLQJ
KDV LWV RZQ SRVVLELOLWLHV DQG OLPLWV DV VKRZQ LQ 7DEOH RI
)3+&7RQLQYHQWLRQMXVWDVLWKDVLWVRZQSURPLVHVDQGSLWIDOOV
DV VKRZQ LQ 7DEOH RI )3+&7 RQ LQQRYDWLRQ ,Q WKH HQG LW
VKRXOG DOVR EH VWUHVVHG WKDW FUHDWLYH WKLQNLQJ KDV LWV RZQ
GHVLUDELOLW\ DQG GDUN VLGHV DV VKRZQ LQ 7DEOH RI )3+&7
%11DQG)3+0,*
7KLVKDVLPSRUWDQWGDLO\LPSOLFDWLRQVIRUDQDYHUDJHLQGLYLGXDODQG
WKH ZRUG DYHUDJH KHUH DOORZV GLIIHUHQW GHJUHHV RI YDULDWLRQ
IURPRQHLQGLYLGXDOWRDQRWKHULQDSRSXODWLRQDWDQ\JLYHQSRLQW
LQKLVWRU\
)DPLO\UHVHPEODQFHHJQRUPDOQHVVQRQQRUPDOQHVVFRQIRUPLW\
QRQFRQIRUPLW\ FRQYHUJHQFHGLYHUJHQFH IDPLOLDULW\IUHVKQHVV
LQHUWLDQHZQHVVHWF
6RXUFHV)LUVWIURP)3+&76HHDOVRP\ODWHUERRNV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
FRQWLQXHGRQQH[WSDJH
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
7DEOH7KH6\QWD[RI([LVWHQWLDO'LDOHFWLFV,
7KH3ULQFLSOHV
3DUW;9
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
,Q5HODWLRQWR$JHQF\FRQWG
7KH(YROXWLRQ7UDQVIRUPDWLRQ3ULQFLSOH
2QWKH0XOWLSOH.LQGVRI$JHQF\
7KLV SULQFLSOH DQG WKH V\PPHWU\DV\PPHWU\ SULQFLSOH DUH ERWK
DERXW WKH DJHQF\ RI FKDQJH 7KH ZRUG DJHQF\ LQ D IRUPDO
GHILQLWLRQ UHIHUV WR D SHUVRQ RU WKLQJ WKURXJK ZKLFK SRZHU LV
H[HUWHGRUDQHQGLVDFKLHYHG0:'E,WWKHUHIRUHGRHVQRW
KDYHWRQHFHVVDULO\LQYROYHDQLQWHOOLJHQWOLIHIRUP
%HFDXVHRIWKLVGXDOPHDQLQJLQDJHQF\WKHHYROXWLRQWUDQVIRUPDWLRQ
SULQFLSOHLVPRUHFRQFHUQHGZLWKWKHPXOWLSOHNLQGVRIDJHQF\WKDW
LVERWKDERXWWKHHYROXWLRQLQWKHVWDWHRIQDWXUHHJDQREMHFWRI
QDWXUDO EHDXW\ DQG WKH WUDQVIRUPDWLRQ LQ WKH ZRUOG RI LQWHOOLJHQW
OLIHIRUPV HJ D ZRUN RI DUW DQ DLUFRQGLWLRQHU HWF 7KHUH LV QR
HYROXWLRQZLWKRXWWUDQVIRUPDWLRQDQGYLFHYHUVD
$QG WKH WUDQVIRUPDWLYH SDUW RI WKH SULQFLSOH SUHFLVHO\ UHIHUV WR WKH
RWKHU GLPHQVLRQ LQ WKH GXDO PHDQLQJ RI DJHQF\ LQ JLYLQJ
WHFKQRORJ\DPDMRUUROHWRSOD\LQWKHFKDQJHRIWKHZRUOGZKLFKLV
VRPHWKLQJWKDW,H[WHQVLYHO\DQDO\]HGLQ)+&LQWKHFRQWH[WRIWKH
WHFKQRSKLOLF OLIHZRUOG HVSHLFDOO\ WKRXJK QRW H[FOXVLYHO\ VLQFH
PRGHUQWLPHV7KHVDPHWKHPHLVDOVRHODERUDWHGLQRWKHUERRNVRI
PLQH
)DPLO\ UHVHPEODQFH HJ QRQZLOOLQJQHVVZLOOLQJQHVV QDWXUDOQHVV
WHFKQRORJLFDOQHVV HYROXWLRQFUHDWLRQ QDWXUDOQHVVQRQQDWXUDOQHVV
LQRUJDQLFQHVVYROLWLRQ QDWXUDOQHVVDUWLILFLDOQHVV LQRUJDQLFQHVV
PRWLYDWLRQHWF
6RXUFHV(VSHFLDOO\IURP)$(6HHDOVRRWKHUERRNVRIPLQH
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
FRQWLQXHGRQQH[WSDJH
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7DEOH7KH6\QWD[RI([LVWHQWLDO'LDOHFWLFV,
7KH3ULQFLSOHV
3DUW;9,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
,Q5HODWLRQWR$JHQF\FRQWG
7KH6\PPHWU\$V\PPHWU\3ULQFLSOH
2QWKH5HODWLRQVKLSVDPRQJ([LVWHQWV
7KHUHLVQRV\PPHWU\ZLWKRXWDV\PPHWU\DQGYLFHYHUVD
)RULQVWDQFHWKH6DPHFDQEHV\PPHWULFDQGDV\PPHWULFWRZDUGVWKH
2WKHUV %XW LQ FDVH RI DV\PPHWU\ RSSUHVVLRQ DQG VHOIRSSUHVVLRQ
FDQRFFXU6RZKHQWKH6DPHLVDV\PPHWULFWRZDUGVWKH2WKHUVWKH
6DPH FDQ DOVR EH UHODWLYHO\ DV\PPHWULF WRZDUGV LWVHOI LQ VHOI
RSSUHVVLRQMXVWDVWKH2WKHUVFDQEHOLNHZLVHWRZDUGVWKHPVHOYHV
7KH VXEVHTXHQW RSSUHVVLYHQHVV LV GXDOLVWLF DV PXFK E\ WKH 6DPH
DJDLQVWWKH2WKHUVDQGLWVHOIDVE\WKH2WKHUVDJDLQVWWKH6DPHDQG
WKHPVHOYHV
%RWK RSSUHVVLRQ DQG VHOIRSSUHVVLRQ FDQ EH DFKLHYHG E\ ZD\ RI
GRZQJUDGLQJ GLIIHUHQFHV EHWZHHQ WKH 6DPH DQG WKH 2WKHUV DQG RI
DFFHQWXDWLQJWKHP
7KLVLVWUXHHYHQWKRXJKQRWDOOIRUPVRIDV\PPHWU\KDYHWREHDERXW
RSSUHVVLRQDQGVHOIRSSUHVVLRQ
,QDGGLWLRQIURP&KDSWHU7KUHHRI)3+*V\PPHWU\LVQRWSHUIHFW
WR EH XQGHUVWRRG LQ DQ DSSUR[LPDWH VHQVH XQGHU PDQ\ OLIH
FLUFXPVWDQFHV
)DPLO\ UHVHPEODQFH HJ EDODQFHH[WUHPLW\ UHIOH[LYHQHVV
XQUHIOH[LYHQHVV EDODQFHXQEDODQFH HTXDOLW\LQHTXDOLW\ FHQWHU
SHULSKHU\ FRPSDWLELOLW\LQFRPSDWLELOLW\ SURSRUWLRQGLVSURSRUWLRQ
KDUPRQLRXVQHVVXQKDUUPRQLRXVQHVVHWF
6RXUFHV )URP DOO P\ ERRNV VWDUWLQJ ZLWK )+& )LUVW QDPHG LQ
%&3&6HHIRULQVWDQFH)&'IRUPRUHGHWDLOVRQWKH6DPHDQGWKH
2WKHUV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
FRQWLQXHGRQQH[WSDJH
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
7DEOH7KH6\QWD[RI([LVWHQWLDO'LDOHFWLFV,
7KH3ULQFLSOHV
3DUW;9,,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
,Q5HODWLRQWR$JHQF\FRQWG
7KH6RIWQHVV+DUGQHVV3ULQFLSOH
2QWKH)RUFHRI&KDQJH
7KLV KDV WR GR ZLWK WKH IRUFH RI FKDQJH XQGHU WKH FDWHJRU\ DERXW
DJHQF\LQH[LVWHQWLDOGLDOHFWLFVLQWKDWDQ\FKDQJHE\DQDJHQWEHLW
RUJDQLF OLNH KXPDQV RU QRQRUJDQLF OLNH QDWXUDO REMHFWV FDQ
RFFXU LQ D IRUFHIXO DJJUHVVLYH RU JHQWOH SDFLILF ZD\ ZKLFK FDQ
FRPHLQDOOVKDSHVDQGVL]HVRIFRXUVH7KHUHLVQRVRIWQHVVZLWKRXW
KDUGQHVVDQGYLFHYHUVD
)DPLO\ UHVHPEODQFH HJ SHDFHIXOQHVVYLROHQFH FRRSHUDWLRQ
FRPSHWLWLRQ DFFHSWDQFHGLVFULPLQDWLRQ ORYHKDWUHG SHDFHZDU
SDFLILFLW\DJJUHVVLRQ GRYLVKQHVVKDZNLVKQHVV UHZDUGSXQLVKPHQW
NLQGQHVVKRVWLOLW\ DGPLUDWLRQEHOLWWOHPHQW LQFOXVLRQH[FOXVLRQ
IULHQGOLQHVVXQIULHQGOLQHVVHWF
6RXUFHV(VSHFLDOO\IURP$/'6HHDOVRP\ODWHUERRNV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
FRQWLQXHGRQQH[WSDJH
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7DEOH7KH6\QWD[RI([LVWHQWLDO'LDOHFWLFV,
7KH3ULQFLSOHV
3DUW;9,,,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
,Q5HODWLRQWR$JHQF\FRQWG
7KH6HULRXVQHVV3OD\IXOQHVV3ULQFLSOH
2QWKH([WHQWRI6HULRXVQHVV
,I WKHUH LV VHULRXVQHVV WKHUH LV DOVR SOD\IXOQHVV HVSHFLDOO\ IRU DQ\
DJHQW ZLWK VRPH NLQG RI LQWHOOLJHQFH OLIH EH LW DERXW KXPDQV
DQLPDOV RU ODWHU SRVWKXPDQV 7KHUH LV QR VHULRXVQHVV ZLWKRXW
SOD\IXOQHVVDQGYLFHYHUVD
/HVW DQ\ PLVXQGHUVWDQGLQJ RFFXUV WKH ZRUG SOD\IXOQHVV KHUH
VKRXOGQRWEHFRQIXVHGZLWKRWKHUWHUPVOLNHODXJKWHUVPLOH
MRNH WLFNOHQHVV DQG ODXJKOLNH YRFDOL]DWLRQ LQ VRPH
DQLPDOVIRULQVWDQFH
%HLQJSOD\IXOFDQFRPHLQDOOVKDSHVDQGVL]HVDQGWKHUHIRUHLVQRW
QHFHVVDULO\WLHGXSZLWKDQ\RIWKHVHWHUPVDOKRXJKLWFDQUHVXOW
IURP DQ\ RI WKHP RU D FRPELQDWLRQ RI WKHP RU VRPHWKLQJ HOVH
DOWRJHWKHU
7KLV SULQFLSOH WRJHWKHU ZLWK VRPH RWKHU SULQFLSOHV HVSHFLDOO\
WKRXJK QRW H[FOXVLYHO\ OLNH WKH IRUPDOQHVVLQIRUPDOQHVV
SULQFLSOH KDYH LPSRUWDQW LPSOLFDWLRQV IRU ZKDW FRQVWLWXWHV
UDWLRQDOLW\EHLWDERXWUDWLRQDOLW\RIDSSOLFDWLRQDWWKHSUDFWLFDO
OHYHO RU UDWLRQDOLW\ RI NQRZOHGJH DW WKH PHWDWKHRUHWLFDO OHYHO
DVVXPPDUL]HGLQ6HFRI)3++
)DPLO\ UHVHPEODQFH HJ VHULRXVQHVVMRNLQJQHVV VHULRXVQHVV
KXPRURXVQHVV VHULRXVQHVVZLWWLQHVV VHULRXVQHVVQRQVHULRXVQHVV
VHULRXVQHVVUHOD[HGQHVV
VHULRXVQHVVUHVWLQJQHVV
$SROOR
'LRQ\VXVHWF
6RXUFHV)LUVWIURP)3++ )3+*$06HHDOVRP\ODWHUERRNV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
FRQWLQXHGRQQH[WSDJH
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
7DEOH7KH6\QWD[RI([LVWHQWLDO'LDOHFWLFV,
7KH3ULQFLSOHV
3DUW;,;
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
,Q5HODWLRQWR$JHQF\FRQWG
7KH$FWLYHQHVV,QDFWLYHQHVV3ULQFLSOH
2QWKH([WHQWRI$FWLYHQHVV
,IWKHUHLVDFWLYHQHVVWKHUHLVDOVRLQDFWLYHQHVVHVSHFLDOO\WKRXJK
QRW H[FOXVLYHO\ IRU DQ\ DJHQW ZLWK VRPH NLQG RI LQWHOOLJHQFH
OLIHEHLWDERXWKXPDQVDQLPDOVRUODWHUSRVWKXPDQV7KHUH
LVQRDFWLYHQHVVZLWKRXWLQDFWLYHQHVVDQGYLFHYHUVD
%HLQJDFWLYHFDQFRPH LQDOOVKDSHVDQGVL]HVDVDSHUVRQFDQEH
LQDFWLYHEHFDXVHKHLVWLUHGROGVLFNVOHHS\XQLQWHUHVWHGHWF
MXVW DV DQ REMHFW FDQ EH LQDFWLYH EHFDXVH LW LV DW UHVW RXW RI
ZRUNHWF
7KLV SULQFLSOH WRJHWKHU ZLWK VRPH RWKHU SULQFLSOHV HVSHFLDOO\
WKRXJK QRW H[FOXVLYHO\ OLNH WKH IRUPDOQHVVLQIRUPDOQHVV
SULQFLSOHDQGVHULRXVQHVVSOD\IXOQHVVSULQFLSOHKDYHLPSRUWDQW
LPSOLFDWLRQV IRU ZKDW FRQVWLWXWHV UDWLRQDOLW\ EH LW DERXW
UDWLRQDOLW\RIDSSOLFDWLRQDWWKHSUDFWLFDOOHYHORUUDWLRQDOLW\
RI NQRZOHGJH DW WKH PHWDWKHRUHWLFDO OHYHO DV VXPPDUL]HG LQ
6HFRI)3++
)DPLO\ UHVHPEODQFH HJ DOHUWQHVVXQDOHUWQHVV DFWLYHQHVV
GHFUHSLGQHVV DOHUWQHVVVOHHSLQHVV DZDNHQQHVVKLEHUQDWHGQHVV
DFWLYHQHVVWLUHGQHVV DOHUWQHVVXQLQWHUHVWHGQHVV DOHUWQHVV
XQZDUHQHVV VREHUQHVVXQDZDUHQHVV VREHUQHVVLQDFWLYHQHVV
DOHUWQHVVLQDFWLYHQHVVHWF
6RXUFHV)LUVWIURP)3+75$1
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
FRQWLQXHGRQQH[WSDJH
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7DEOH7KH6\QWD[RI([LVWHQWLDO'LDOHFWLFV,
7KH3ULQFLSOHV
3DUW;;
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
,Q5HODWLRQWR$JHQF\FRQWG
7KH6HOIQHVV2WKHUQHVV3ULQFLSOH
2QWKH0DJQLWXGHRI6HOI&HQWHUHGQHVV
,IWKHUHLVWKHWHQGHQF\WREHPRVWO\FHQWHUHGRQRQHVVHOIRUJURXS
WKHUH LV OLNHZLVH WKH WHQGHQF\ WR EH PRVWO\ FHQWHUHG RQ RWKHUV
HVSHFLDOO\WKRXJKQRWH[FOXVLYHO\IRUDQ\DJHQWZLWKVRPHNLQGRI
LQWHOOLJHQFHOLIHEHLWDERXWKXPDQVDQLPDOVRUODWHUSRVWKXPDQV
7KHUHLVQRVHOIQHVVZLWKRXWRWKHUQHVVDQGYLFHYHUVD
%HLQJ VHOIFHQWHUHG DQG EHLQJ RWKHUFHQWHUHG GR QRW KDYH WR EH
PXWXDOO\H[FOXVLYHDVWKHWZRFDQFRPHLQDOOVKDSHVDQGVL]HVRU
LQ GLIIHUHQW GHJUHHV $QG RWKHUFHQWHUHGQHVV GRHV QRW HQWDLO
GHVLUDELOLW\ DQ\ PRUH WKDQ VHOIFHQWHUHGQHVV LPSOLHV QRQ
GHVLUDELOLW\DVERWKFDQJRHLWKHUZD\
,QDGGLWLRQZKHWKHUVHOIFHQWHUHGQHVVFRQVWLWXWHVDPRUDODOWHUQDWLYH
RUFRQYHUVHO\DQDOWHUQDWLYHWRPRUDOLW\LVRIFRXUVHGHEDWDEOHDV
DGGUHVVHGLQP\RWKHUERRNWLWOHG%H\RQG(WKLFVWR3RVW(WKLFV
*RRGH[DPSOHVRIIDPLO\UHVHPEODQFHLQUHODWLRQWRWKHSULQFLSOHDUH
HJRLVWLFQHVVDOWUXLVWLFQHVV VHOILVKQHVVXQVHOILVKQHVV VHOIQHVV
VHOIOHVVQHVVHJRFHQWULFQHVVRWKHUFHQWULFQHVVDQGVRRQ
6RXUFH)LUVWIURP)3+&$
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
FRQWLQXHGRQQH[WSDJH
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
7DEOH7KH6\QWD[RI([LVWHQWLDO'LDOHFWLFV,
7KH3ULQFLSOHV
3DUW;;,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
,Q5HODWLRQWR2XWFRPH
7KH5HJUHVVLRQ3URJUHVVLRQ3ULQFLSOH
2QWKH'LUHFWLRQRI+LVWRU\
1HLWKHUWKHF\FOLFDOQRUWKHOLQHDUYLHZVDUHDGHTXDWHIRUH[SODLQLQJ
PDQ\ SKHQRPHQD DW DOO OHYHOV 7KHUH LV UHJUHVVLRQ ZLWKRXW
SURJUHVVLRQDQGYLFHYHUVD
+LVWRU\ SURJUHVVHV WR PRUH DGYDQFHG IRUPV EXW ZLWK D UHJUHVVLYH
WRXFK ([DPSOHV LQFOXGH QR IUHHGRP ZLWKRXW XQIUHHGRP QR
HTXDOLW\ZLWKRXWLQHTXDOLW\DQGQRFLYLOL]DWLRQZLWKRXWEDUEDULW\
7KLV LV QRW DQ LQHYLWDEOH ODZ EXW PHUHO\ D KLJKO\ OLNHO\ HPSLULFDO
WUHQG
)DPLO\ UHVHPEODQFH HJ FRVWEHQHILW XQGHVLUDELOLW\GHVLUDELOLW\
EDGQHVVJRRGQHVVULVNRSSRUWXQLW\HWF
6RXUFHV )URP DOO P\ ERRNV VWDUWLQJ ZLWK )+& )LUVW QDPHG LQ
%&3&
7KH6DPH'LIIHUHQFH3ULQFLSOH
2QWKH0HWDPRUSKRVLVRI&KDQJH
$Q HQWLW\ DV LW HYROYHV RYHU WLPH FDQ EH ERWK GLIIHUHQW IURP DQG
VLPLODU WR LWV RSSRVLQJ DOWHUQDWLYHV DQG GRHV QRW KDYH WR EH VROHO\
PRUHGLIIHUHQWIURPWKHPRYHUWLPH7KHUHLVQRVLPLODULW\ZLWKRXW
GLIIHUHQFHDQGYLFHYHUVD
2SSRVLWHVDUHQRWDEVROXWHLQDEODFNRUZKLWHIDVKLRQVRDQHQWLW\
FDQ EHFRPH UHODWLYHO\ PRUH VLPLODU WR RU PRUH GLIIHUHQW IURP LWV
RSSRVLWHRYHUWLPH
)DPLO\ UHVHPEODQFH HJ KRPRJHQHLW\KHWHURJHQHLW\ ZHWKH\
VLPLODULW\FRQWUDVWHWF
6RXUFHV(VSHFLDOO\IURP$/'6HHDOVRP\ODWHUERRNV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
FRQWLQXHGRQQH[WSDJH
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7DEOH7KH6\QWD[RI([LVWHQWLDO'LDOHFWLFV,
7KH3ULQFLSOHV
3DUW;;,,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
,Q5HODWLRQWR2XWFRPHFRQWG
7KH6WDELOLW\5HDFWLRQ3ULQFLSOH
2QWKH)HHGEDFN0HFKDQLVPIRU)XUWKHU&KDQJHV
2QFH DQ RXWFRPH EHFRPHV VWDELOL]HG RYHU WLPH ZKLFK YDULHV IURP
FDVH WR FDVH LW ZLOO XQGHUJR IXUWKHU FKDQJHV LQ LWV PXOWLIDFHWHG
LQWHUDFWLRQVZLWKWKHRXWVLGHZRUOGHJZLWKRWKHUHQWLWLHVHQHUJ\
VSDFHDQGVRRQ
7KHUH LV QR VWDELOLW\ ZLWKRXW UHDFWLRQ IRU IXUWKHU FKDQJHVDQG YLFH
YHUVD
)DPLO\ UHVHPEODQFH HJ VWDELOLW\IRUZDUGQHVV EDODQFHUHDFWLRQ
EDODQFHIRUZDUGQHVV UHVWPRWLRQ QRUPDOF\IHHGEDFN VWDELOLW\
EUHDNXSFRQVROLGDWLRQPRGLILFDWLRQHWF
6RXUFHV)LUVWIURP)3+&+(0
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
FRQWLQXHGRQQH[WSDJH
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
7DEOH7KH6\QWD[RI([LVWHQWLDO'LDOHFWLFV,
7KH3ULQFLSOHV
3DUW;;,,,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
,Q5HODWLRQWR2XWFRPHFRQWG
7KH)XQFWLRQDOLW\1RQIXQFWLRQDOLW\3ULQFLSOH
2QWKH3UHVHQFHRI)XQFWLRQ
,IWKHUHLVWKHSUHVHQFHRIDFWLRQIRUZKLFKVRPHWKLQJRUVRPHRQHLV
ILWWHG WKHUH LV OLNHZLVH WKH UHODWLYH ODFN RI DFWLRQ IRU ZKLFK
VRPHWKLQJ RU VRPHRQH LV ILWWHG 7KHUH LV QR IXQFWLRQDOLW\ ZLWKRXW
QRQIXQFWLRQDOOLW\DQGYLFHYHUVD
$ IXQFWLRQ VKRXOG QRW EH FRQIXVHG ZLWK DQ DOWHUQDWLYH IXQFWLRQ
ZKLFK LV MXVW DQRWKHU NLQG RI IXQFWLRQ MXVW DV QRQIXQFWLRQ VKRXOG
QRW EH FRQIXVHG ZLWK G\VIXQFWLRQ ZKLFK KDV PRUH WR GR ZLWK
PDOIXQFWLRQ DQG LV WKXV UHODWHG PRUH WR WKH UHJUHVVLRQSURJUHVVLRQ
SULQFLSOH
,QDGGLWLRQEHLQJIXQFWLRQDORUXVHIXODQGEHLQJQRQIXQFWLRQDORU
XVHOHVVGRQRWKDYHWREHPXWXDOO\H[FOXVLYHDVWKHWZRFDQFRPH
LQ DOO VKDSHV DQG VL]HV RU LQ GLIIHUHQW GHJUHHV $QG ZKDW LV
IXQFWLRQDO DW RQH WLPH PD\ EHFRPH QRQIXQFWLRQDO DW DQRWKHU WLPH
DQGYLFHYHUVD
*RRGH[DPSOHVRIIDPLO\UHVHPEODQFHLQUHODWLRQWRWKHSULQFLSOHDUH
XVHIXOQHVVQRQXVHIXOQHVV
XVHIXOQHVVXVHOHVVQHVV
YDOXHQHVV
QRQYDOXHQHVVDQGWKHOLNH
6RXUFH)LUVWIURP)3+&$
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
1RWHV 7KH IHDWXUHV LQ HDFK SULQFLSOH DUH VROHO\ LOOXVWUDWLYH QRW
H[KDXVWLYH 7KH FRPSDULVRQ LV DOVR UHODWLYH QRW DEVROXWH QRU DUH WKH\
PXWXDOO\H[FOXVLYH$VJHQHUDOLWLHVWKH\DOORZH[FHSWLRQV
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7DEOH7KH6\QWD[RI([LVWHQWLDO'LDOHFWLFV,,
7KH3ULQFLSOHVDV6KRUW&XWV
3DUW,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
7KH SULQFLSOHV VKRXOG EH WUHDWHG ZLWK FDXWLRQ OHVW PLVXQGHUVWDQGLQJ
RFFXUVVLQFHWKH\GRQRWFRQVWLWXWHULJLGGXDOLWLHVRUGLFKRWRPLHV
7KH UHDVRQ LV WKDW HDFK SDLU LQ DQ RQWRORJLFDO SULQFLSOH FRQVLVWV RI WZR
RSSRVLWHV ZKLFK DUH KRZHYHU PHUHO\ VKRUW FXWV ERWK IRU PXOWLSOH
YDULDWLRQV DQG GHJUHHV DV ZHOO DV IRU GLIIHUHQW LQWHUDFWLRQV ZLWK PXOWLSOH
RWKHU HQWLWLHV XQOLNH WKHP ,Q WKLV OLJKW HDFK SDLU FDQ HQG XS KDYLQJ
KXQGUHGRUHYHQWKRXVDQGLIQRWPRUHGLIIHUHQWYHUVLRQVZKLFKLQWHUDFW
ZLWKKXQGUHGRUHYHQWKRXVDQGLIQRWPRUHRWKHUHQWLWLHV7KHUHDUHWZR
FODULILFDWLRQVKHUH
)LUVWO\ WKLV FRQFHSWLRQ RI VKRUWFXWV LV QRW PXWXDOO\ H[FOXVLYH QRU
DEVROXWH LQ WKDW WKH RSSRVLWHV FDQ FRPH LQ DOO VKDSHV DQG VL]HV ZLWK
GLIIHUHQW GHJUHHV )RU LQVWDQFH E\ DQDORJ\ MXVW DV WKHUH DUH GLIIHUHQW
GHJUHHV RI WKH WZR FRORUV ZKLWH DQG EODFNWKHUH DUH OLNHZLVH
GLIIHUHQW GHJUHHV RI WKH RSSRVLWHV LQ HDFK RQWRORJLFDO SDLU WR WKH H[WHQW
WKDW WKHUH FDQ EH PXOWLSOH HQWLWLHV QRW RQO\ WZR LQWHUDFWLQJ ZLWK HDFK
RWKHULQHDFKSDLU
$QGVHFRQGO\WKLVFRQFHSWLRQRIVKRUWFXWVGRQRWLJQRUHRWKHUSRVVLEOH
HQWLWLHVLQLQWHUDFWLQJZLWKWKHWZRRSSRVLWHVZLWKWKHLUGLIIHUHQWYHUVLRQV
LQ HDFK SDLU )RU LQVWDQFH E\ DQDORJ\ WKHUH DUH QRW RQO\ WKH WZR FRORUV
ZKLWHDQGEODFNDVRSSRVLWHVVLQFHWKHUHDUHRWKHUFRORUVWRREHVLGHV
WKHP OLNH \HOORZ JUHHQ SXUSOH RU HOVH 7KH VDPH ORJLF FDQ EH
DSSOLHG WR HDFK RQWRORJLFDO SDLU LQ WKDW WKH\ DOVR LQWHUDFW ZLWK RWKHU
HQWLWLHVQRWZLWKRQO\WZRRIWKHPZLWKWKHLUGLIIHUHQWYHUVLRQV
7KHUHIRUH ZLWK WKHVH WZR FODULILFDWLRQV LQ PLQGHDFK SDLU LQ DQ
RQWRORJLFDO SULQFLSOH VHUYHV RQO\ DV DQ DEEUHYLDWLRQ IRU VRPHWKLQJ PRUH
FRPSOLFDWHG DQG WKHUHIRUH DOWKRXJK LW FRQWDLQV WZR RSSRVLWHV LW VKRXOG
QRWEHFRQIXVHGDVDGXDOLW\GXDOLVP
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
FRQWLQXHGRQQH[WSDJH
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
7DEOH7KH6\QWD[RI([LVWHQWLDO'LDOHFWLFV,,
7KH3ULQFLSOHVDV6KRUW&XWV
3DUW,,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
([LVWHQWLDOGLDOHFWLFVUHMHFWVDQ\GXDOLVPRUGLFKRWRP\DVWRRULJLGDQG
LQVWHDG DOORZV WKH PXOWLSOLFLW\ RI HQWLWLHV WR WKH H[WHQW WKDW EHWZHHQ WKH
WZR RSSRVLWHV LQ HDFK SDLU H[LVW PDQ\ RWKHU DOWHUQDWLYHV WR FKRRVH IURP
7KH\DUHQDPHGLQWKDWVKRUWIRUPIRUDHVWKHWLFHOHJDQFHLQVWHDGRIOLVWLQJ
DOOSRVVLEOHHQWLWLHVEHWZHHQWKHWZRRSSRVLWHVLQWKHWLWOH
7REHGLDOHFWLFLVWRJREH\RQGDQ\ULJLGGLFKRWRP\DQGWUDQVFHQGLQWR
VRPHWKLQJ GLIIHUHQW DOWRJHWKHU LQ WKH ORQJ KDXO 2QH PD\ EH WHPSWHG WR
FDOO WKH GLDOHFWLF ORJLF KHUH ZLWK D GLIIHUHQW QDPH OLNH H[LVWHQWLDO
PXOWLOHFWLFV LQVWHDG RI GLDOHFWLFV EXW WKLV QDPLQJ LV LQFRUUHFW RU
HYHQPLVOHDGLQJIRUWKHWZRUHDVRQVDIRUHVWDWHG
$IWHU DOO HDFK RQWRORJLFDO SDLU FRPH LQ DOO VKDSHV DQG VL]HV ZLWK
GLIIHUHQW GHJUHHV DQG GR QRW H[LVW E\ WKHPVHOYHV EXW DOVR LQWHUDFW ZLWK
RWKHUHQWLWLHVXQOLNHWKHP7KHYLUWXHRIUHYHDOLQJDQRQWRORJLFDOSDLULVWR
VKRZ KRZ WKH\ UHODWH ZLWKLQ WKHPVHOYHV LQ PXOWLSOH YHUVLRQV DQG DOVR
LQWHUDFWZLWKRWKHUVXQOLNHWKHPDOVRLQPXOWLSOHYHUVLRQV
7KLVZLOOEHFOHDULQWKHWDEOHRQWKHGLDOHFWLFFRQVWUDLQWVLPSRVHGE\WKH
SULQFLSOHV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
6RXUFH)URP&KRI)3+.
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7DEOH7KH6\QWD[RI([LVWHQWLDO'LDOHFWLFV,,,
7KH3ULQFLSOHVDV)DPLO\5HVHPEODQFHV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
(DFK RQWRORJLFDO SULQFLSOH LV JHQHULF ZLWK VRPH RWKHU FRPSDUDEOH
RQWRORJLFDOSDLUVWREHSXWLQWKHVDPHIDPLO\OLNHDIDPLO\UHVHPEODQFH
/XGZLJ :LWWJHQVWHLQ RQFH VXJJHVWHG WKH LGHD RI IDPLO\
UHVHPEODQFH LQ H[SODLQLQJ GLIIHUHQW JDPHV FODVVLILHG XQGHU WKH VDPH
IDPLO\FDOOHGJDPHV
:K\VKRXOGIRULQVWDQFHSOD\LQJIRRWEDOODQGFKHVVDVSOD\LQJJDPHV
ZKHQ LW LV ZHOO XQGHUVWRRG WKDW IRRWEDOO LV QRW WKH VDPH DV FKHVV" 7KH
DQVZHU LV WKDW DOWKRXJK HDFK JDPH LV GLIIHUHQW DQG KDV GLIIHUHQW UXOHV
PDQ\ RI WKHP WKRXJK QRW DOO VKDUH PRUH RU OHVV VRPH FRPPRQDOLWHV
HJVFRULQJDVQHFHVVDU\IRUZLQQLQJ
$QGWKLVLVVRHYHQWKRXJKVRPHJDPHVVKDUHPRUHWKDQVRPHRWKHUVLQ
DQ\ JLYHQ VHOHFWLRQ RI FULWLHULD DQG QR WZR JDPHV DUH H[DFWO\ LGHQWLFDO
6RKLVSRLQWKHUHLVWKDWWKHUHLVQRHVVHQWLDOFRUHZKLFKLVFRPPRQWRDOO
JDPHVDQGWKHEHVWWKDWRQHFDQORRNIRULVVRPHFKDUDFWHULVWLFVZKLFKDUH
FRPPRQWRPDQ\EXWQRWDOOJDPHV$%LOHW]NL
%\ WKH VDPH ORJLFLQ WKH SUHYLRXV VHFWLRQ RQ VHOHFWLRQ FULWHULD WKH
IOH[LELOLW\LQIOH[LELOLW\ SDLU FDQ EH SXW LQ WKH IDPLO\ UHVHPEODQFH RI WKH
VLPSOHQHVVFRPSOLFDWHGQHVV SULQFLSOH DOWKRXJK WKH WZR SDLUV DUH QRW
H[DFWO\ LGHQWLFDO /LNHZLVH WKH GLUHFWQHVVLQGLUHFWQHVV SDLU FDQ EH SXW LQ
WKH IDPLO\ UHVHPEODQFH RI WKH SUHFLVHQHVVYDJXHQHVV SULQFLSOH DOWKRXJK
DJDLQWKHWZRSDLUVDUHQRWH[DFWO\LGHQWLFDO
,QWKLVVHQVHZKLFKVSHFLILFSDLULQDIDPLO\VKRXOGEHXVHGWRGHVLJQDWH
WKH QDPH RI WKH IDPLO\ FDQ EH DW WLPHV D ELW DUELWUDU\ EXW ZLWK JRRG
UHDVRQ
)RULOOXVWUDWLRQLQWKHFRQWH[WRIPHWKRGWKHSDUWLDOLW\WRWDOLW\SULQFLSOH
FDQWDNHWKHGLIIHUHQWIRUPOLNHLQGLYLGXDOLVWLFQHVVKROLVWLFQHVVMXVWDVWKH
H[SOLFDELOLW\LQH[SOLFDELOLW\ SULQFLSOH FDQ WDNH WKH GLIIHUHQW IRUP OLNH
XQGHUO\LQJQHVVUHJXODUQHVVDOWKRXJK HDFK WZR SDLUV DUH QRW H[DFWO\
LGHQWLFDO DQG KDYH VOLJKWO\ GLIIHUHQW PHDQLQJV DQG XVDJHV $ PRUH
FRPSUHKHQVLYHOLVWLQJRIWKLVIDPLO\UHVHPEODQFHIRUDOORWKHUSULQFLSOHVLV
VKRZQLQWKHWDEOHRQWKHV\QWD[RIH[LVWHQWLDOGLDOHFWLFV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
6RXUFH)URP&KRI)3+.
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
7DEOH7KH6\QWD[RI([LVWHQWLDO'LDOHFWLFV,9
7KH'LDOHFWLF&RQVWUDLQWV,PSRVHGE\WKH3ULQFLSOHV
3DUW,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
&R([LVWHQWDQG$V\PPHWULF
7KH SULQFLSOHV DV WKH\ FRQVWLWXWH WKH V\QWD[ RI H[LVWHQWLDO GLDOHFWLFV
DUH GLDOHFWLF LQ FKDUDFWHU VXFK WKDW ZKHQ WKH\ DUH DSSOLHG WKH\
LPSRVH GLDOHFWLF FRQVWUDLQWV RQ KRZ UHDOLW\ LV WR EH XQGHUVWRRG
&RQVLGHU VD\ WKH V\PPHWU\DV\PPHWU\ SULQFLSOH DV DQ LOOXVWUDWLRQ
KHUH LQ RUGHU WR VXPPDUL]H WZR PDLQ FKDUDFWHUV RI WKH GLDOHFWLF
FRQVWUDLQWVLQTXHVWLRQ
)LUVWO\ WR EH GLDOHFWLF KHUH LV WR JR EH\RQG WKH QDUURZ GLFKRWRPLHV
DQG IRU WKDW PDWWHU DQ\ ULJLG PXOWLGLPHQVLRQDO FODVVLILFDWRU\
VFKHPH EH WKH\ DERXW VHOI YV ZRUOG IUHHGRP YV
XQIUHHGRP EDUEDULW\ YV FLYLOL]DWLRQ LQGLYLGXDOLW\ YV
FRPPXQDOLW\DQGVRRQ
2QH ZD\WRGRVRWRJREH\RQGLVWRFRQVLGHUWKHPDOOLQWHUPVRI
FRH[LVWHQFH ZLWKRXW IDYRULQJ RQH RYHU WKH UHVW )RU LQVWDQFH P\
WKHRU\RISRVWFLYLOL]DWLRQWREHVXPPDUL]HGODWHULQWKHVHFWLRQRQ
WKHSUDJPDWLFVRIH[LVWHQWLDOGLDOHFWLFVLVWRJREH\RQGEDUEDULW\DQG
FLYLOL]DWLRQ LQ WHUPV RI XQGHUVWDQGLQJ EDUEDULW\ DQG FLYLOL]DWLRQ DV
EHLQJ FRH[LVWHQW $QG WKH VDPH ORJLF FDQ EH VDLG LQ UHODWLRQ WR P\
WKHRULHVRISRVWGHPRFUDF\SRVWFDSLWDOVPDQGRWKHUVDOVRWREH
LQWURGXFHG ODWHU LQ WKH VHFWLRQ RQ WKH SUDJPDWLFV RI H[LVWHQWLDO
GLDOHFWLFV LQ UHJDUG WR IUHHGRP YV XQIUHHGRP HTXDOLW\ YV
LQHTXDOLW\ FRPPXQDOLW\ YV LQGLYLGXDOLW\ VSLULWXDOLW\ YV PDWHULDOLW\
DQGVRRQ
%XWWRFRQVLGHUWKHPDOOLQWKHGLFKRWRPLHVDQGIRUWKDWPDWWHULQ
DQ\ULJLGPXOWLGLPHQVLRQDOFODVVLIDFWRU\VFKPHDVFRH[LVWHQWLVQRW
WKH VDPH DV WR LPSO\ WKDW WKH RSSRVLWHV LQ DQ\ FODVVLILFDWRU\ VFKHPH
DUH DOO HTXDO VLQFH LQ DFFRUGDQFH WR WKH V\PPHWU\DV\PPHWU\
SULQFLSOHDVDQLOOXVWUDWLRQ KHUHLIWKH\DUHHTXDOLQWHUPVRIEHLQJ
FRQVLGHUHG DV FRH[LVWHQW WKH\ DUH DV\PPHWULF LQ WHUPV RI EHLQJ
XQHTXDOLQGLDOHFWLFLQWHUDFWLRQHJ;FDQEHPRUHGRPLQDQWWKDQ<
LQFDVH$RU<LVPRUHGRPLQDQWWKDQ;LQFDVH%
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
FRQWLQXHGRQQH[WSDJH
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7DEOH7KH6\QWD[RI([LVWHQWLDO'LDOHFWLFV,9
7KH'LDOHFWLF&RQVWUDLQWV,PSRVHGE\WKH3ULQFLSOHV
3DUW,,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
)RUWKLVUHDVRQWKHUHDUHGLIIHUHQW YHUVLRQVRISRVWGHPRFUDF\DQG
SRVWFDSLWDOLVPLQP\WKHRULHV$VDQLOOXVWUDWLRQLQYHUVLRQ,RIWKH
WKHRU\ RI SRVWGHPRFUDF\ IUHHGRP LV PRUH GRPLQDQW WKDQ HTXDOLW\
ZKHUHDV LQ YHUVLRQ ,, RI WKH WKHRU\ RI SRVWGHPRFUDF\ HTXDOLW\ LV
PRUHVRWKDQIUHHGRP
%XW WKLV ; PRUH WKDQ < KDV WR EH XQGHUVWRRG LQ WKH FRQWH[W RI
GLDOHFWLF ORJLF QRW LQ FRQYHQWLRQDO ORJLF LQ WKDW ERWK ; DQG <
DUHLPSRUWDQWLQSRVWGHPRFUDF\LQWKHFRQWH[WRIGLDOHFWLFORJLFEXW
LQ DQ DV\PPHWU\ ZD\ %\ FRQWUDVW LQ FRQYHQWLRQDO ORJLF LW RIWHQ
IDYRUVRQHRYHUWKHRWKHUEHLWLQUHJDUGWRSULYLOHJLQJIUHHGRPRYHU
HTXDOLW\LQ)DVFLVPIDYRULQJIUHHGRPUHODWLYHO\PRUHWKDQHTXDOLW\LQ
/LEHUDO'HPRFUDF\RUIDYRULQJHTXDOLW\UHODWLYHO\PRUHWKDQIUHHGRP
LQ 6RFLDOLVW 'HPRFUDF\ ,Q WKH ODWWHU WZR FDVHV DERXW /LEHUDO
'HPRFUDF\ DQG 6RFLDOLVW 'HPRFUDF\ WKH GLIIHUHQFH EHWZHHQ
GLDOHFWLF ORJLF DQG FRQYHQWLRQDO ORJLF FDQ EH RQH LQ GHJUHH QRW LQ
NLQGLQWKLVVHQVHDOEHLWQRWLQRWKHUVHQVHV
7KH VDPH ORJLF FDQ EH VDLG DERXW WKH UHODWRQVKLSV EHWZHHQ
LQGLYLGXDOLW\ DQG FRPPXQDOLW\ EHWZHHQ VSLULWXDOLW\ DQG PDWHULDOLW\
DQG EHWZHHQ IRUPDO OHJDOLVP DQG LQIRUPDO OHJDOLVP LQ WKH GLIIHUHQW
YHUVLRQVRIP\WKHRU\RISRVWFDSLWDOLVP
7UDQVFHQGHQW
6HFRQGO\WREHGLDOHFWLFLVWRJREH\RQGWKHQDUURZGLFKRWRPLHVDQG
IRUWKDWPDWWHUDQ\ULJLGPXOWLGLPHQVLRQDOFODVVLILFDWRU\VFKHPHLQ
DQRWKHU ZD\ WKLV WLPH LQ D WUDQVFHQGHQW ZD\ WKDW LV LQ H[SORULQJ
RWKHU SRVVLELOLWLHV RU HYHQ RWKHU LVVXHV QRW FRQVLGHUHG ZLWKLQ WKH
QDUURZFRQILQHVRIQDUURZGLFKRWRPLHVDQGIRUWKDWPDWWHUDQ\ULJLG
PXOWLGLPHQVLRQDOFODVVLILFDWRU\VFKHPH
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
FRQWLQXHGRQQH[WSDJH
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
7DEOH7KH6\QWD[RI([LVWHQWLDO'LDOHFWLFV,9
7KH'LDOHFWLF&RQVWUDLQWV,PSRVHGE\WKH3ULQFLSOHV
3DUW,,,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
$VDQDQDORJ\WR JREH\RQGWKHQDUURZFRORUGLFKRWRP\RI EODFN
DQGZKLWHLVQRWMXVWWRFKRRVHERWKEODFNDQGZKLWHDVLQWKH
ILUVW PHDQLQJ EXW DOVR WR H[SORUH RWKHU FRORU RSWLRQV HJ JUHHQ
SXUSOH EOXH HWFDQG DOWHUQDWLYHO\ VKDGH OLQH FXUYH
HWF %\ WKH VDPH ORJLF WR JR EH\RQG GHPRFUDF\ LV WR WUDQVFHQG
GHPRFUDF\DVLQYHUVLRQ,,,RIWKHWKHRU\RI SRVWGHPRFUDF\DQG
WRH[SORUHRWKHUSRVVLELOWLHVRIOLIHIRUPVHJIORDWLQJFRQVFLRXVQHVV
K\SHUVSDWLDOFRQVFLRXVQHVVHWFWROLYHEH\RQGWKHQDUURZREVHVVLRQ
ZLWKIUHHGRPDQGHTXDOLW\
7KLV GLDOHFWLF FKDUDFWHU RI WKH SULQFLSOHV LQ H[LVWHQWLDO GLDOHFWLFV KDV
LPSRUWDQWLPSOLFDWLRQVIRUWKHSUDJPDWLFVRIH[LVWHQWLDOGLDOHFWLFVDV
ZLOO EH FOHDU VKRUWO\ LQ WKH VHFWLRQ RQ WKH SUDJPDWLFV RI H[LVWHQWLDO
GLDOHFWLFV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
1RWHV 7KH H[DPSOHV KHUH DUH VROHO\ LOOXVWUDWLYH QRW H[KDXVWLYH 7KH
FRPSDULVRQLVDOVRUHODWLYHQRWDEVROXWHQRUDUHWKH\PXWXDOO\H[FOXVLYH
$VJHQHUDOLWLHVWKH\DOORZH[FHSWLRQV
6RXUFHV)LUVWH[SOLFLWO\VWDWHGLQ$/'$OVRIURPDOORWKHUERRNVRIPLQH
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7DEOH7KH6\QWD[RI([LVWHQWLDO'LDOHFWLFV9
)XUWKHU&ODULILFDWLRQV
3DUW,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
3LRQHHULQJ
)LUVWO\ WKH WRWDO QXPEHU RI RQWRORJLFDO SULQFLSOHV LV XQNQRZQ WR EH
GLVFRYHUHG ODWHU DV RXU NQRZOHGJH RI WKH ZRUOG EHFRPHV PRUH
DGYDQFHG
&RQVHTXHQWO\ WKH SULQFLSOHV DV LQWURGXFHG LQ P\ ERRNV DUH QRW
H[KDXVWLYH ZLWK QHZ RQHV EHLQJ DGGHG ZKHQHYHU PRUH RI WKHP DUH
GLVFRYHUHGLQODWHUUHVHDUFK
$WOHDVWIXWXUHJHQHUDWLRQVFDQSLFNXSZKHUH,OHDYHRIIDQGFRQWLQXH
WKHGLVFRYHU\
,QWKLVVHQVHP\ZRUNVKRXOGEHWUHDWHGDVDSLRQHHULQJHIIRUWIRUWKH
GHYHORSPHQW RI D V\VWHPDWLF FRPSUHKHQVLYH DQDO\VLV RI D QHZ
JHQHUDORQWRORJ\IRUWKHIXWXUHRINQRZOHGJH
)OH[LEOH
6HFRQGO\ WKH SULQFLSOHV DUH QRW ULJLGO\ FODVVLILHG DV WKH\ FDQ EH
UHFODVVLILHGLQDGLIIHUHQWZD\
)RU LQVWDQFH WKH SUHFLVHQHVVYDJXHQHVV SULQFLSOH LV FODVVLILHG XQGHU
WKHFDWHJRU\RIVWUXFWXUHEXWFDQEHUHFODVVLILHGXQGHUWKHFDWHJRU\
RI PHWKRG DOWKRXJK LQ VR GRLQJ LW KDV D GLIIHUHQW PHDQLQJ LQ WKH
FRQWH[WRIPHWKRG
7KH VDPH ORJLF DSSOLHV WR WKH VDPHGLIIHUHQFH SULQFLSOH XQGHU WKH
FDWHJRU\RI RXWFRPH ZKLFKFDQEHUHFODVVLILHGXQGHUWKHFDWHJRU\
RI VWUXFWXUH DOWKRXJK LQ VR GRLQJ RQFH PRUH LW KDV D GLIIHUHQW
PHDQLQJLQWKHFRQWH[WRIVWUXFWXUH
0XWXDOO\&RQVWUDLQLQJ
7KLUGO\ WKH SULQFLSOHV DUH WR EH XQGHUVWRRG WRJHWKHU QRW WKDW HDFK
SULQLFSOH LV WR EH DQDO\]HG LQGHSHQGHQWO\ RI RWKHUV $IWHU DOO WKH
SULQFLSOHV DUH PXWXDOO\ FRQVWUDLQLQJ LQ WKDW WKH\ ZRUN WRJHWKHU DV D
ZKROH
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
FRQWLQXHGRQQH[WSDJH
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
7DEOH7KH6\QWD[RI([LVWHQWLDO'LDOHFWLFV9
)XUWKHU&ODULILFDWLRQV
3DUW,,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
6HOHFWLYHO\8VHIXO
)RXUWKO\ WKH SULQFLSOHV DUH UHOHYDQW WR DOO VXEMHFW PDWWHUV EXW VRPH
SULQFLSOHV DUH PRUH XVHIXO WR VRPH VXEMHFW PDWWHUV WKDQ RWKHUVDV
LPSOLHG LQ WKH V\PPHWU\DV\PPHWU\ SULQFLSOH 7KLV LV WUXH HYHQ LI
GLIIHUHQWVWXGLHVRIWKHVDPHNLQGFDQ\LHOGGLIIHUHQWYLHZVDERXWWKH
GHJUHH RI UHOHYDQFH IRU HDFK RQWRORJLFDO SULQFLSOH GHSHQGLQJ RQ WKH
VSHFLILFQDWXUHRIDUHVHDUFKLQTXHVWLRQQHHGOHVVWRVD\
$QWL5HGXFWLRQLVWLF
$QGILIWKO\WKHSULQFLSOHVFRQVWLWXWHRQO\WZROHYHOVRI DQDO\VLVWKLV
WLPHDWWKHRQWRORJLFDODQGPHWKRGRORJLFDOOHYHOVZKLOHRWKHUOHYHOV
RI DQDO\VLV IURP WKH SHUVSHFWLYHV RI WKH PLQG QDWXUH VRFLHW\ DQG
FXOWXUH DUH DOVR QHHGHG LQ RUGHU WR XQGHUVWDQG UHDOLW\ LQ LWV WRWDOLW\
DVH[SODLQHGLQWKHVHFWLRQRQVRSKLVWLFDWHGPHWKRGRORJLFDOKROLVP
VR DV WR DYRLG WKH GXDO GDQJHUV RI UHGXFWLRQLVP DQG UHYHUVH
UHGXFWLRQLVP
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
1RWHV 7KH H[DPSOHV KHUH DUH VROHO\ LOOXVWUDWLYH QRW H[KDXVWLYH 7KH
FRPSDULVRQLVDOVRUHODWLYHQRWDEVROXWHQRUDUHWKH\PXWXDOO\H[FOXVLYH
$VJHQHUDOLWLHVWKH\DOORZH[FHSWLRQV
6RXUFHV)URPP\SUHYLRXVERRNVOLNH)+&)&')3+&%'3'%&3&
%11)&)$(DQGVRRQ
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7DEOH7KH6\QWD[RI([LVWHQWLDO'LDOHFWLFV9,
7KH'LOHPPDRI6SHFLILFYV*HQHUDO2QWRORJ\
3DUW,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
2QWRORJ\ LV RIWHQ PRUH FRPSOLFDWHG DQG LPSRVHV VRPH VHHPLQJO\
LQVXUPRXQWDEOHGLIILFXOWLHVFRQFHUQLQJZKDWFRQVWLWXWHVDNLQGRIRQWRORJ\
ZKLFK FDQ EH YDOLG HQRXJK WR EH DFFHSWHG E\ WKH ZLGHU LQWHOOHFWXDO
FRPPXQLW\LQTXHVWLRQ$QH[FHOOHQWH[DPSOHFRQFHUQVZKDW,ZDQWWRFDOO
WKH GLOHPPD RI RQWRORJ\ LQ UHODWLRQ WR WKH UHODWLRQVKLS EHWZHHQ VSHFLILF
RQWRORJ\DQGJHQHUDORQWRORJ\0%XQJH5&RUD]]RQ
2Q WKH RQH KDQG JHQHUDO RQWRORJ\ DV 0DULR %XQJH SXW LW
VWXGLHV DOO H[LVWHQWV %XW RQ WKH RWKHU KDQG VSHFLDO RQWRORJ\ VWXGLHV
RQHJHQXVRIWKLQJRUSURFHVVSK\VLFDOFKHPLFDOELRORJLFDOVRFLDOHWF
0%XQJH5&RUD]]RQ
&RQVHTXHQWO\WKHUHODWLRQVKLSEHWZHHQWKHIRUPHUDQGWKHODWWHULVWKDW
DVDQLOOXVWUDWLRQZKHUHDVJHQHUDORQWRORJ\VWXGLHVWKHFRQFHSWVRIVSDFH
WLPH DQG HYHQW WKH RQWRORJ\ RI WKH VRFLDO LQYHVWLJDWHV VXFK JHQHUDO
VRFLRORJLFDOFRQFHSWVDVWKRVHRIVRFLDOV\VWHPVRFLDOVWUXFWXUHDQGVRFLDO
FKDQJH0%XQJH5&RUD]]RQ
:LWK WKLV IRUPDO GHILQLWLRQ LQ PLQG WKH UHODWLRQVKLS EHWZHHQ WKH WZR
IRUPV RI RQWRORJ\ RQO\ SRVHV WKH GLOHPPD RI RQWRORJ\ LQ WKDW JHQHUDO
RQWRORJ\LVSRVVLEOHWRWKHH[WHQWWKDWLWVJHQHUDOFRQWUXFWVPXVWEHEURDG
HQRXJKWRVHUYHDVWKHORZHVWFRPPRQGHQRPLQDWRUIRUDOOGLVFLSOLQHV
EXWWKLVFKDUDFWHURIWKHORZHVWFRPPRQGHQRPLQDWRULVQRWRQO\ KDUGWR
ILQGEXWDOVRLWVXVHIXOQHVVLVOLPLWHG:.E
%XWVSHFLILFRQWRORJ\IDUHVQREHWWHUHLWKHULQWKDWLWVVSHFLILFFRQVWUXFWV
SULPDULO\VHUYHDVSHFLILFGLVFLSOLQHLQTXHVWLRQDOWKRXJKRWKHUGLVFLSOLQHV
FDQ DSSURSULDWH WKHP IRU WKHLU RZQ SXUSRVHV EXW LQ D GLIIHUHQW FRQWH[W
HVSHFLDOO\ WKRXJK QRW H[FOXVLYHO\ ZKHQ XVHG DV D PHWDSKRU IURP RQH
ILHOG WR DQRWKHU )RU LQVWDQFH WKH .DQWLDQ FDWHJRU\ RI XQGHUVWDQGLQJ
XQGHU WKH KHDGLQJ RI TXDQWLW\ FRQVWLWXWHV D W\SH RI VSHFLILF RQWRORJ\
ZKLFK LV VSHFLILF WR WKH GLVFLSOLQH RI PDWKHPDWLFV DOWKRXJK RWKHU
GLVFLSOLQHVFDQPDNHXVHRIWKHFDWHJRULHVLQWKHLURZQFRQWH[W
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
FRQWLQXHGRQQH[WSDJH
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
7DEOH7KH6\QWD[RI([LVWHQWLDO'LDOHFWLFV9,
7KH'LOHPPDRI6SHFLILFYV*HQHUDO2QWRORJ\
3DUW,,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
$VROXWLRQOLHVLQP\SURSRVDORIVRSKLVWLFDWHGPHWKRGRORJLFDOKROLVP
ZKLFKUHTXLUHVDOOOHYHOVRIDQDO\VLVLQDQ\VXEMHFWPDWWHU6HHWKHWDEOHV
RQVRSKLVWLFDWHGPHWKRGRORJLFDOKROLVPDQGRQUHGXFWLRQLVPDQGUHYHUVH
UHGXFWLRQLVPIRUPRUHGHWDLOV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
6RXUFH)URP6HFRI)3+.
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7DEOH7KH6\QWD[RI([LVWHQWLDO'LDOHFWLFV9,,
7\SHVRI,QDSSURSULDWH)DPLO\5HVHPEODQFHV
3DUW,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
,QDGHTXDWH)DPLO\5HVHPEODQFHV
([FRQVLVWHQF\LQFRQVLVWHQF\WKHIRUPDOQHVVLQIRUPDOHQVVSULQFLSOH
([FRJQLWLRQQRQFRJQLWLRQWKHIRUPDOQHVVLQIRUPDOQHVVSULQFLSOH
&RPSRXQG)DPLO\5HVHPEODQFHV
([ UHDOLW\QRQUHDOLW\ WKH IRUPDOQHVVLQIRUPDOQHVV SULQFLSOHV WKH
DEVROXWHQHVVUHODWLYHQHVVSULQFLSOH
([ QRUPDOLW\DEQRUPDOLW\ WKH V\PPHWU\DV\PPHWU\ SULQFLSOH WKH
GHQVLW\HPSWLQHVV SULQFLSOH WKH FRQYHQWLRQQRYHOW\ SULQFLSOH WKH
VDPHGLIIHUHQFHSULQFLSOH
([ VWUXFWXUHFRQWH[W WKH VLPSOHQHVVFRPSOLFDWHGQHVV SULQFLSOH WKH
WKHRU\SUD[LVSULQFLSOH
([IUHHGRPXQIUHHGRPWKHH[SDQVLRQFRQWUDFWLRQSULQFLSOH
([ PRUDOLW\LPPRUDOLW\ WKH GHQVHQHVVHPSWLQHVV SULQFLSOH WKH
V\PPHWU\DV\PPHWU\WKHVDPHGLIIHUHQFHSULQFLSOH
([SDUWLFXODUQHVVXQLYHUVDOQHVVWKHSUHFLVHQHVVYDJXHQHVVSULQFLSOH
WKHVLPSOHQHVVFRPSOLFDWHGQHVVSULQFLSOH
([ SXUHQHVVPL[HGQHVV WKH DEVROXWHQHVVUHODWLYHQHVV SULQFLSOH WKH
VLPSOHQHVVFRPSOLFDWHGQHVVSULQFLSOHWKHVDPHGLIIHUHQFHSULQFLSOH
([ VKRUWVLJKWHGQHVVIRUHVLJKWHGQHVV WKH SDUWLDOLW\WRWDOLW\ SULQFLSOH
WKHVLPSOHQHVVFRPSOLFDWHGQHVVSULQFLSOH
([ VKRUWWHUPQHVVORQJWHUPQHVV WKH SDUWLDOLW\WRWDOLW\ SULQFLSOH WKH
VLPSOHQHVVFRPSOLFDWHGQHVV SULQFLSOH WKH VORZQHVVTXLFNQHVV
SULQFLSOH
2QH6LGHG)DPLO\5HVHPEODQFHV
([VRXQGVLOHQFHDV\PPHWU\LQWKHV\PPHWU\DV\PPHWU\SULQFLSOH
([ YLVLRQEOLQGQHVV DV\PPHWU\ LQ WKH V\PPHWU\DV\PPHWU\
SULQFLSOH
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
FRQWLQXHGRQQH[WSDJH
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
7DEOH7KH6\QWD[RI([LVWHQWLDO'LDOHFWLFV9,,
7\SHVRI,QDSSURSULDWH)DPLO\5HVHPEODQFHV
3DUW,,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
9DJXH)DPLO\5HVHPEODQFHV
([ VKRUWQHVVORQJQHVV QDUURZQHVVEURDGQHVV VPDOOQHVVODUJHQHVV
VPDOOQHVVJUHDWQHVV PLFURQHVVPDFURQHVV DQG OLWWOHQHVVPXFKQHVV
WKUHH GLIIHUHQW SRVVLELOLWLHV QDPHO\ D ILQLWHQHVV LQ WKH ILQLWHQHVV
WUDQVILQLWHQHVV SULQFLSOH LI ERWK RSSRVLWHV DUH GHILQHG RQ D ILQLWH
VFDOHEWUDQVILQLWHQHVVLQWKHILQLWHQHVVWUDQVILQLWHQHVVSULQFLSOHLI
ERWKRSSRVLWHVDUHGHILQHGRQDWUDQVILQLWHVFDOHDQGFWKHILQLWHQHVV
WUDQVILQLWHQHVVSULQFLSOHLIRQHRSSRVLWHLVGHILQHGRQDILQLWHVFDOHDQG
WKHRWKHURSSRVLWHLVGHILQHGRQDWUDQVILQLWHVFDOH
2QH6LGHGDQG&RPSRXQG)DPLO\5HVHPEODQFHV
([ H[WURYHUVLRQLQWURYHUVLRQ RQHVLGHG LQ EHLQJ SDUW RI WKH VLGH
FDWHJRU\ RI QRUPDOLW\ LQ WKH QRUPDOLW\DEQRUPDOLW\ SDLU $QG
FRPSRXQGHGEHFDXVHWKHQRUPDOLW\DEQRUPDOLW\SDLULVLQWXUQUHODWHG
WR WKH V\PPHWU\DV\PPHWU\ SULQFLSOH WKH GHQVLW\HPSWLQHVV
SULQFLSOH WKH FRQYHQWLRQQRYHOW\ SULQFLSOH WKH VDPHGLIIHUHQFH
SULQFLSOH
([ RUJDQL]HGQHVVVSRQWDQHRXVQHVV RQHVLGHG LQ EHLQJ SDUW RI WKH
VLGHFDWHJRU\RIQRUPDOLW\LQWKHQRUPDOLW\DEQRUPDOLW\SDLU$QG
FRPSRXQGHGEHFDXVHWKHQRUPDOLW\DEQRUPDOLW\SDLULVLQWXUQUHODWHG
WR WKH V\PPHWU\DV\PPHWU\ SULQFLSOH WKH GHQVLW\HPSWLQHVV
SULQFLSOH WKH FRQYHQWLRQQRYHOW\ SULQFLSOH WKH VDPHGLIIHUHQFH
SULQFLSOH
([ ULVNFDXWLRQ RQHVLGHG LQ EHLQJ SDUW RI WKH VLGH FDWHJRU\ RI
QRUPDOLW\ LQ WKH QRUPDOLW\DEQRUPDOLW\ SDLU $QG FRPSRXQGHG
EHFDXVH WKH QRUPDOLW\DEQRUPDOLW\ SDLU LV LQ WXUQ UHODWHG WR WKH
V\PPHWU\DV\PPHWU\ SULQFLSOH WKH GHQVLW\HPSWLQHVV SULQFLSOH WKH
FRQYHQWLRQQRYHOW\SULQFLSOHWKHVDPHGLIIHUHQFHSULQFLSOH
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
1RWHV 7KH H[DPSOHV KHUH DUH VROHO\ LOOXVWUDWLYH QRW H[KDXVWLYH 7KH
FRPSDULVRQLVDOVRUHODWLYHQRWDEVROXWHQRUDUHWKH\PXWXDOO\H[FOXVLYH
$VJHQHUDOLWLHVWKH\DOORZH[FHSWLRQV
6RXUFH)LUVWVXPPDUL]HGLQ%(3(DQGXSGDWHGLQODWHUERRNV
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7DEOH7KH6HPDQWLFVRI([LVWHQWLDO'LDOHFWLFV
3DUW,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
$EVWUDFW6WUXFWXUHYV6SHFLILF0HDQLQJV
7KH V\QWD[ RI H[LVWHQWLDO GLDOHFWLFV VR XQGHUVWRRG LQ WHUPV RI
RQWRORJLFDO SULQFLSOHV RQO\ JLYHV XV WKH VWUXFWXUH RI RQWRORJ\ LQ WKH
ZRUOGLQDQDEVWUDFWJHQHUDOVHQVH7KHVHSULQFLSOHVE\WKHPVHOYHV
GRQRWWHOOXVWKHVSHFLILFPHDQLQJVLQDJLYHQFRQWH[W
,Q RUGHU WR JUDVS WKH VSHFLILF PHDQLQJV RI WKH SULQFLSOHV LQ D JLYHQ
FRQWH[WLWLVQHFHVVDU\WRVWXG\WKHVHPDQWLFVRIH[LVWHQWLDOGLDOHFWLFV
$QGWKHDQDO\VLVRIWKHRQWRORJLFDOSULQFLSOHVDVIDPLO\UHVHPEODQFHV
LQWKHVHFWLRQRQV\QWD[LVRQO\DVWDUWLQJSRLQWDQGWKXVRYHUODSVDELW
ZLWKWKHVHPDQWLFVRIH[LVWHQWLDOGLDOHFWLFVKHUH
:LWK WKLV FDYHDW LQ PLQG WKH UHDVRQ WKDW , KDYH RIWHQ JRQH LQ JUHDW
OHQJWKV LQ P\ SUHYLRXV ERRNV RQ GLIIHUHQW VXEMHFWV LV WR H[SODLQ WKH
VSHFLILFPHDQLQJVRIWKHSULQFLSOHVZKHQDSSOLHGLQGLIIHUHQWFRQWH[WV
6SHFLILF0HDQLQJVLQ6SHFLILF)LHOGV
)RU LQVWDQFH LQ )3+67 , XVHG WKH ILUVW WKUHH SULQFLSOHV LH WKH
FKDQJHFRQVWDQF\SULQFLSOHWKHUHJUHVVLRQSURJUHVVLRQSULQFLSOHDQG
WKH V\PPHWU\DV\PPHWU\ SULQFLSOH WR SURSRVH WKH SHUVSHFWLYDO
WKHRU\ RI VSDFHWLPH IRU D EHWWHU ZD\ WR XQGHUVWDQG VSDFH DQG
WLPHHVSHFLDOO\ WKRXJK QRW H[FOXVLYHO\ LQ UHODWLRQ WR IXWXUH SRVW
KXPDQKLVWRU\DVVXPPDUL]HGLQ7DEOH7DEOH7DEOHDQG
7DEOH ,Q VR GRLQJ , KDG WR LQWURGXFH FRQFHSWV DQG WKHRULHV
VSHFLILFWRWKHILHOGRISK\VLFVDQGRWKHUUHODWHGILHOGVHJDEVROXWH
VSDFH DQG DEVROXWH WLPH LQ FODVVLFDO PHFKDQLFV DQG UHODWLYH
VSDFHWLPHLQWKHWKHRU\RIUHODWLYLW\
,Q %11 , DOVR H[SORLWHG WKH WKUHH SULQFLSOHV WR SURSRVH WKH
WUDQVFHQGHQW DSSURDFK WR WKH VWXG\ RI JHQHV DQG PHPHV DV D QHZ
ZD\ WR XQGHUVWDQG WKH LQWHUDFWLRQ EHWZHHQ QDWXUH DQG QXUWXUH ,Q VR
GRLQJ , KDG WR H[SORUH FRQFHSWV DQG WKHRULHV LQ WKH ZRUOG RI
HYROXWLRQDU\ WKHRU\ HJ PXWDWLRQ YDULDWLRQ DGDSWDWLRQ
VHOHFWLRQDQGLQKHULWDQFHLQ'DUZLQLDQHYROXWLRQDU\WKHRU\DQG
QHXUDO ELRORJ\ HJ FKURPRVRPH JHQH '1$ 51$
SURWHLQQHXURQQHXUDOQHWZRUNDQGEHKDYLRU
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
FRQWLQXHGRQQH[WSDJH
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
7DEOH7KH6HPDQWLFVRI([LVWHQWLDO'LDOHFWLFV
3DUW,,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
7ZR7\SHVRI7UDQVODWLRQ,QWHUSUHWDWLRQ
,Q WKH WHFKQLFDO MDUJRQV RI VHPDQWLFV WKHVH H[HUFLVHV LQ P\ ERRNV
SHUIRUP WZR HVVHQWLDO IXQFWLRQV RI WUDQVODWLRQ RU LQWHUSUHWDWLRQ
QDPHO\DLQWHQVLYHLQWHUSUHWDWLRQDERXWWKHSURSHUWLHVRUUHODWLRQV
RI WKH SULQFLSOHV LQ H[LVWHQWLDO GLDOHFWLFV DQG E H[WHQVLYH
LQWHUSUHWDWLRQDERXWWKHFODVVHVRUFDVHVWR ZKLFKWKHSURSHUWLHVDQG
UHODWLRQV RI WKH SULQFLSOHV LQ H[LVWHQWLDO GLDOHFWLFV DUH DSSOLHG :.
RR
/LPLWVRI7UDQVODWLRQ,QWHUSUHWDWLRQ
%XWWKHUHDUHOLPLWVRIWUDQVODWLRQRULQWHUSUHWDWLRQDQGDQH[FHOOHQW
H[DPSOHLVWKDWWKHUHLVDSUREOHPZLWKWKH
REMHFWLYLW\
RIWUDQVODWLRQ
DV LW LV UHODWLYH WR GLIIHUHQW FXOWXUDO RU VXEFXOWXUDO FRQWH[WV )RU
LQVWDQFHRQHRIWKHVWLOOXQUHVROYHGSUREOHPVLQOLQJXLVWLFVLV
,VWKHUH
DQREMHFWLYHJDXJHIRUWKHTXDOLW\RIWUDQVODWLRQ"
)3+&20 :.
SS
7KLV LV RQH VHULRXV SUREOHP DERXW WKH ORJLF RI WUDQVODWLRQ DQG
LQWHUSUHWDWLRQWKDW,DOUHDG\DGGUHVVHGLQ6HFRI)3+&20DQG
DOVRIRUWKDWPDWWHULQ)+&LQWKHFRQWH[WRIKHUPHQHXWLFV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
1RWHV 7KH FDWHJRULHV DQG H[DPSOHV LQ HDFK DUH VROHO\ LOOXVWUDWLYH QRW
H[KDXVWLYH 7KH FRPSDULVRQ LV DOVR UHODWLYH QRW DEVROXWH QRU DUH WKH\
PXWXDOO\H[FOXVLYH$VJHQHUDOLWLHVWKH\DOORZH[FHSWLRQV
6RXUFHV )LUVW H[SOLFLWO\ VWDWHG LQ $/' DQG ODWHU UHYLVHG LQ )3+&20
$OVRIURPDOORWKHUERRNVRIPLQH
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7DEOH7KH3UDJPDWLFVRI([LVWHQWLDO'LDOHFWLFV
3DUW,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
7KH7ZR:D\6WUHHW&RQQHFWLQJ7KHRU\DQG0HWD7KHRU\
7KHSUDJPDWLFVRIH[LVWHQWLDOGLDOHFWLFVLVQRWDRQHZD\VWUHHWWKDWLV
XVLQJWKHRQWRORJLFDOSULQFLSOHVIRUWKHRUHWLFDOLQVLJKWVLQSUD[LVEXWD
WZRZD\ RQH WKDW LV D IURP PHWDWKHRU\ WR WKHRU\ DQG E IURP
WKHRU\WRPHWDWKHRU\
D 2Q RQH VLGH RI WKH VWUHHW WKH RQWRORJLFDO SULQFLSOHV FDQ LQVSLUH
VRPHWKHRUHWLFDOLQVLJKWVLQSUD[LVWKDWLVLQUHODWLRQWRVRPHVSHFLILF
ILHOGV
E2QWKHRWKHURSSRVLQJVLGHRIWKHVWUHHWKRZHYHUWKHVWXG\RID
VXEMHFWPDWWHULQWKHVSHFLILFILHOGVLQWXUQUHYHDOVVRPHPRUHKLWKHUWR
XQNQRZQ RQWRORJLFDO SULQFLSOHV WR EH GLVFRYHUHG DQG LGHQWLILHG )RU
WKLVUHDVRQWKUHHQHZSULQFLSOHVZHUHDGGHGLQ)&RQHLQ)$(DQG
WZR LQ $/' RQ WRS RI WKH RULJLQDO WKUHH LQ %&3&DIWHU VRPH
UHVHDUFKRQWKHVSHFLILFVXEMHFWPDWWHUV
'LUHFWDQG,QGLUHFW$SSOLFDWLRQV
'LUHFW
7KHORJLFRIH[LVWHQWLDOGLDOHFWLFVFDQVKHGVRPHWKHRUHWLFDOLQVLJKWV
RQ GLYHUVH SKHQRPHQD LQ WKH ZRUOG DQG JRRG LQVWDQFHV DUH WKH
SHUWLQHQW XVH RI WKH SULQFLSOHV RI H[LVWHQWLDO GLDOHFWLFV IRU WKH
WKHRUHWLFDO LQVLJKWV RQ WKH IUHHGRPXQIUHHGRP GLDOHFWLFV WKH
HTXDOLW\LQHTXDOLW\ GLDOHFWLFV DQG WKH ZHDOWKSRYHUW\ GLDOHFWLFV LQ
P\SUHYLRXVZRUNV
0\ ODWHVW ERRNV OLNH )3+67 DQG %11 DOVR XVH WKH SULQFLSOHV WR
UHYHDO VRPH WKHRUHWLFDO LQVLJKWV RQ WKH SHUVSHFWLYHV RI VSDFH DQG
WLPHDVLQ)3+67DQGRIQDWXUHDQGQXUWXUHDVLQ%11
,QGLUHFW
7KH WKHRUHWLFDO LQVLJKWV FDQ IXUWKHU EH XVHG WR UHYHDO RWKHU
SKHQRPHQD GLUHFWO\ IURP WKHP YL] WKH WKHRUHWLFDO LQVLJKWV DQG
WKHUHIRUH LQGLUHFWO\ IURP WKH SULQFLSOHV WKHPVHOYHV $ JRRG
LQVWDQFH LV WKH XVH RI WKH WKHRUHWLFDO LQVLJKWV RQ WKH
IUHHGRPXQIUHHGRP DQG HTXDOLW\LQHTXDOLW\ GLDOHFWLFV IRU WKH
XQGHUVWDQGLQJRIWKHFLYLOL]DWLRQEDUEDULW\GLDOHFWLFV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
FRQWLQXHGRQQH[WSDJH
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
7DEOH7KH3UDJPDWLFVRI([LVWHQWLDO'LDOHFWLFV
3DUW,,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
'LUHFWDQG,QGLUHFW$SSOLFDWLRQVFRQWG
(YHQLQLQGLUHFWDSSOLFDWLRQVKRZHYHUDSKHQRPHQRQXQGHUVWXG\
FDQVWLOOEHGLUHFWO\UHODWHGEDFNWRWKHSULQFLSOHVWKHPVHOYHV,QWKH
H[DPSOHDVFLWHGDERYHWKHFLYLOL]DWLRQEDUEDULW\GLDOHFWLFVFDQEH
GLUHFWO\ UHODWHG WR WKH SULQFLSOHV RI H[LVWHQWLDO GLDOHFWLFV ZLWKRXW
WKH LQWHUPHGLDWH UROH RI WKH IUHHGRPXQIUHHGRP DQG
HTXDOLW\LQHTXDOLW\GLDOHFWLFV
0XOWLSOH/HYHOVRI$SSOLFDWLRQ
7KHWKHRUHWLFDOLQVLJKWVFDQEHDSSOLHGWRGLIIHUHQWOHYHOVRIDQDO\VLV
HYHQWKRXJKLQDJLYHQH[DPSOHLWPD\UHIHUWRRQHOHYHORQO\)RU
LQVWDQFH LQ WKH H[DPSOH FRQFHUQLQJ WKH IUHHGRPXQIUHHGRP
GLDOHFWLFVLWFDQEHXVHGDWWKHVWUXFWXUDOOHYHOHJLQUHODWLRQWRWKH
WKHRU\RIF\FOLFDOSURJUHVVLRQRIKHJHPRQ\EXWLWFDQEHH[SORLWHGDV
ZHOO IRU RWKHU OHYHOV HJ WKH WKHRU\ RI SRVWFDSLWDOLVP DW WKH
LQVWLWXWLRQDOOHYHO
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
1RWHV 7KH FDWHJRULHV DQG H[DPSOHV LQ HDFK DUH VROHO\ LOOXVWUDWLYH QRW
H[KDXVWLYH 7KH FRPSDULVRQ LV DOVR UHODWLYH QRW DEVROXWH QRU DUH WKH\
PXWXDOO\H[FOXVLYH$VJHQHUDOLWLHVWKH\DOORZH[FHSWLRQV
6RXUFHV)URP&KRI%&3&6HHDOVRRWKHUERRNVRIPLQH
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7DEOH7KH)UHHGRP8QIUHHGRP'LDOHFWLFV
3DUW,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
2Q+DYLQJ
,Q5HODWLRQWRWKH7HFKQRORJLFDO
LIIUHHUIURPVXEPLVVLRQWR1DWXUHWKHQOHVVIUHHIURPHFRORJLFDO
GHJUDGDWLRQ'HHSDQG6RFLDO(FRORJ\HYHQLILQDKLWHFKIRUP
LIIUHHUIURPWHFKQRORJLFDOLQFRQYHQLHQFHEDFNZDUGQHVVWKHQ
OHVVIUHHIURPWHFKQRORJLFDOFRQWURODQGWKHORVVRISULYDF\
LIIUHHUIURPWHFKQRORJLFDOPDWHULDOEDFNZDUGQHVVWKHQ
OHVV IUHH IURP WKH DEXVLYH EDUEDULF PDOWUHDWPHQW RI WKH
SULPLWLYH2WKHUV
,Q5HODWLRQWRWKH(YHU\GD\
LIIUHHUIURPDEMHFWSRYHUW\WKHQOHVVIUHHIURP
DUWLILFLDOQHHGVGLVFRQWHQWV)UDQNIXUW6FKRRO
LIIUHHUIURPVHQVXDOVXSSUHVVLRQWKHQOHVVIUHHIURP
YLROHQWVXEOLPDWLRQ)UHXG
LIIUHHUIURPWKHVQREELVKQHVVRIKLJKFXOWXUHWKHQOHVVIUHH
IURP WKH VKDEELQHVV OHYHOLQJRII HIIHFW RI PDVV FXOWXUH
7RFTXHYLOOH
LI IUHHU IURP WKH LQHIILFLHQF\ RI WUDGLWLRQDO FRPSDVVLRQDWH
HFRQRP\ WKHQ OHVV IUHH IURP WKH ERQGDJH RI D UXWKOHVV
>FRPSHWLWLYH@HFRQRP\.H\QHV
LI IUHHU IURP DQDUFK\ LQ WKH VWDWH RI QDWXUH V\VWHP
IUDJPHQWDWLRQ WKHQ OHVV IUHH IURP JRYHUQPHQW UHJXODWLRQV DQG
FRQWUROVLQV\VWHPLQWHJUDWLRQ
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
FRQWLQXHGRQQH[WSDJH
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
7DEOH7KH)UHHGRP8QIUHHGRP'LDOHFWLFV
3DUW,,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
2Q%HORQJLQJ
,Q5HODWLRQWRWKH*RRGDQGWKH-XVW
LI IUHHU IURP GLVFLSOLQDU\ VRFLHW\ WKHQ OHVV IUHH IURP VRFLHW\ RI
FRQWURO)RXFDXOW
LIIUHHUIURPWKHW\UDQQ\RIRQHRUDIHZWKHQOHVVIUHH
IURPWKHW\UDQQ\RIWKHPDMRULW\RUVRPHWLPHVPLQRULW\YHWR
LIIUHHUIURPHOLWLVWGHFLVLRQPDNLQJWKHQOHVVIUHHIURP
SROLWLFDOJULGORFNFOHDYDJH
LI IUHHU IURP DUELWUDU\ GLVFUHWLRQDU\ DGPLQLVWUDWLRQ WKHQ
OHVV IUHH IURP EXUHDXFUDWLF LUUDWLRQDOLW\ :HEHU DQG OHJDO
WULFNHU\ORRSKROHV
2Q%HLQJ
,Q5HODWLRQWRWKH7UXH
LI IUHHU IURP XQVFLHQWLILF GRJPDV WKHQ OHVV IUHH IURP
LQVWUXPHQWDO DE\VV QLKLOLVP 2U FRQYHUVHO\ LI IUHHU IURP
PHDQLQJOHVVQHVVWKHQOHVVIUHHIURPGRJPDV
LI IUHHU IURP WKH ERQGDJH RI SDUWLDOLW\SDUWLVDQVKLS HJ
SUHMXGLFH GLVFULPLQDWLRQ WKHQ OHVV IUHH IURP WKH GDQJHU RI
LPSDUWLDOLW\ DQG QHXWUDOLW\ HJ RSSRUWXQLVP XQUHDOLVWLFQHVV
ODFNRIFRPSDVVLRQLQDFWLRQ
LI IUHHU IURP PDNLQJ JHQHUDOL]DWLRQV WKHQ OHVV IUHH IURP EHLQJ
XQDEOHWRXQGHUVWDQGPXFKRIDQ\WKLQJ
,Q5HODWLRQWRWKH+RO\
LIIUHHUIURPFROOHFWLYHFRQVFLHQFHWKHQOHVVIUHHIURPVRFLDO
ORQHOLQHVV
LI IUHHU IURP UHOLJLRXV DEVROXWHQHVV WKHQ OHVV IUHH IURP VSLULWXDO
HPSWLQHVV
,Q5HODWLRQWRWKH%HDXWLIXO6XEOLPH
LIIUHHUIURPDUWLVWLFQRQDXWRQRP\WKHQOHVVIUHHIURPDHVWKHWLF
GLVLOOXVLRQGHFRQVWUXFWLRQ
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
FRQWLQXHGRQQH[WSDJH
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7DEOH7KH)UHHGRP8QIUHHGRP'LDOHFWLFV
3DUW,,,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
1RWHV 7KH H[DPSOHV LQ HDFK FDWHJRU\ DUH VROHO\ LOOXVWUDWLYH QRW
H[KDXVWLYH DQG WKH FRPSDULVRQ LV UHODWLYH QRW DEVROXWH QRU DUH WKH\
QHFHVVDULO\ PXWXDOO\ H[FOXVLYH $QG VRPH FDQ EH HDVLO\ UHFODVVLILHG
HOVHZKHUH$VJHQHUDOLWLHVWKH\DOORZH[FHSWLRQV
6RXUFHV$UHFRQVWUXFWLRQIURP&KRI)&'EDVHGRQ)+&
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
7DEOH7KH(TXDOLW\,QHTXDOLW\'LDOHFWLFV
3DUW,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
2Q+DYLQJ
,Q5HODWLRQWRWKH7HFKQRORJLFDO
LI PRUH HTXDO LQ WUHDWLQJ 1DWXUH ZLWK VSLULWXDO XQLW\ WKHQ OHVV
HTXDO LQ VXSSUHVVLQJ WKH GRPLQDQW GULYH WR WUDQVFHQG LW
DOWRJHWKHU
,Q5HODWLRQWRWKH(YHU\GD\
LI PRUH HTXDO LQ EXLOGLQJ VRFLDO SOXUDOLW\ WKHQ OHVV HTXDO LQ
OHYHOLQJRII HIIHFWV HJ WKH VXEVHTXHQW UHODWLYH LQWROHUDQFH RI
KLJKLQWHOOHFWXDOHWKRVLQPDVVFXOWXUHLQGXVWU\
LI PRUH HTXDO LQ VRFLRHFRQRPLF GLVWULEXWLRQ EH\RQG D FHUWDLQ
SRLQWWKHQOHVVHTXDOLQHIILFLHQF\HJUHVHQWPHQWWKHHURVLRQ
RIZRUNHWKLFV
LIPRUHHTXDOLQXUJLQJDQDIILUPDWLYHDFWLRQSURJUDPWKHQOHVV
HTXDO LQ FUHDWLQJ YLFWLP PHQWDOLW\ LQ RQHVHOI VWLJPD IURP
RWKHUVUHYHUVHGLVFULPLQDWLRQDJDLQVWWKHRQFHSULYLOHJHGDQG
PHGLRFUDF\DJDLQVWWKHPRUHDEOH
2Q%HORQJLQJ
,Q5HODWLRQWRWKH*RRGDQGWKH-XVW
LIPRUHHTXDOLQEDQQLQJPRQDUFKLFROLJDUFKLFH[FOXVLRQWKHQ
OHVV HTXDO LQ SURGXFLQJ WKH W\UDQQ\ RI WKH PDMRULW\ RU RI
PLQRULW\YHWR
LIPRUHHTXDOLQHQFRXUDJLQJSDUWLFLSDWRU\GHFLVLRQPDNLQJWKHQ
OHVVHTXDOLQLQGXFLQJSROLWLFDOGLYLVLYHQHVVJULGORFNFOHDYDJHLQ
SRZHUEORFVDQGRUJDQL]DWLRQDOROLJDUFK\
LI PRUH HTXDO LQ LQVWLWXWLRQDOL]LQJ D GHFHQWUDOL]HG EXUHDXFUDF\
WKHQ OHVV HTXDO LQ IDOOLQJ LQWR PRUH WHUULWRULDOWXUI SROLWLFV
LQWULJXHV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
FRQWLQXHGRQQH[WSDJH
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7DEOH7KH(TXDOLW\,QHTXDOLW\'LDOHFWLFV
3DUW,,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
2Q%HLQJ
,Q5HODWLRQWRWKH%HDXWLIXO6XEOLPH
LI PRUH HTXDO LQ DFFHSWLQJ GLYHUVH VW\OHV DQ\WKLQJ JRHV
PHQWDOLW\WKHQOHVVHTXDOLQDUWLVWLFJRRGTXDOLW\LQOHYHOLQJ
RIIHIIHFWVDJDLQVWWKHEHVW
,Q5HODWLRQWRWKH7UXH
LI PRUH HTXDO LQ WROHUDWLQJ PXOWLSOH YLHZSRLQWV QR PDWWHU KRZ
H[WUHPHWKHQOHVVHTXDOLQHSLVWHPLFVWDQGDUGV
,Q5HODWLRQWRWKH+RO\
LI PRUH HTXDO LQ FHOHEUDWLQJ DQ\ FXOWV DQG VHFWV QR PDWWHU KRZ
TXHVWLRQDEOHWKHQOHVVHTXDOLQVSLULWXDOGHSWKDQGDXWKHQWLFLW\
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
1RWHV 7KH H[DPSOHV LQ HDFK FDWHJRU\ DUH VROHO\ LOOXVWUDWLYH QRW
H[KDXVWLYH DQG WKH FRPSDULVRQ LV UHODWLYH QRW DEVROXWH QRU DUH WKH\
PXWXDOO\ H[FOXVLYH $QG VRPH FDQ EH HDVLO\ UHFODVVLILHG HOVHZKHUH $V
JHQHUDOLWLHVWKH\DOORZH[FHSWLRQV
6RXUFHV$UHFRQVWUXFWLRQIURP&KRI)&'EDVHGRQ)+&
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
7DEOH7KH'XDOLW\RI2SSUHVVLRQLQ([LVWHQWLDO'LDOHFWLFV
2SSUHVVLRQDQG6HOI2SSUHVVLRQ
3DUW,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
)URPWKH6DPHWRWKH2WKHUVDQG,WVHOI
7KH2SSUHVVLRQE\WKH6DPHDJDLQVWWKH2WKHUV
%\ZD\RIGRZQJUDGLQJGLIIHUHQFHV
([RQMXGLFLDU\FDSULFHIRUFRUSRUDWHFULPHV6HF
([RQWKHGHFHSWLYHSROLWLFVRIOLEHUDWLRQ6HF
([RQWKHKXPDQLWDULDQP\VWLTXH6HF
([RQWKHIDGRIHPRWLRQDOLQWHOOLJHQFH6HF
%\ZD\RIDFFHQWXDWLQJGLIIHUHQFHV
([RQWKHOHJDOVRSKLVWU\RIVHOIGHIHQVH6HF
([RQWKHOHJDOVHPDQWLFVRISURSRUWLRQDOLW\6HF
([RQWKHWULFN\SROLWLFVRIH[WHUQDOWKUHDW6HF
([RQWKHDSSHDORIWKH)DU5LJKWIRUGHPRFUDF\6HF
([RQWKHGHPRFUDWLFD[LVRIHYLO6HF
([RQWKHGHPRFUDWLFZD\RIEUXWDOLW\DQGUHYHQJH6HF
([RQGHPRFUDWLFDXWRFUDF\6HF
7KH2SSUHVVLRQE\WKH6DPHDJDLQVW,WVHOI
%\ZD\RIGRZQJUDGLQJGLIIHUHQFHV
([RQWKHSROLWLFVRIIHDU6HF
([RQWKHWULFNHU\RIFRPSDVVLRQDWHFRQVHUYDWLVP6HF
([RQWKHGHFHSWLYHSROLWLFVRISDWULRWLVP6HF
%\ZD\RIDFFHQWXDWLQJGLIIHUHQFHV
([RQWKHFDSULFHRIGXHSURFHVVRQGRPHVWLFVXVSHFWV
6HF
([RQWKHIDOVHVHFXULW\IUHHGRPGLOHPPD6HF
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
FRQWLQXHGRQQH[WSDJH
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7DEOH7KH'XDOLW\RI2SSUHVVLRQLQ([LVWHQWLDO'LDOHFWLFV
2SSUHVVLRQDQG6HOI2SSUHVVLRQ
3DUW,,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
)URPWKH2WKHUVWRWKH6DPHDQG7KHPVHOYHV
7KH2SSUHVVLRQE\WKH2WKHUVDJDLQVWWKH6DPH
%\ZD\RIGRZQJUDGLQJGLIIHUHQFHV
([RQMXGLFLDU\FDSULFHLQWKHUHYHUVHGLUHFWLRQ6HF
([RQHTXDOSD\6HF
([RQHTXDOUHSUHVHQWDWLRQ6HF
([RQDIILUPDWLYHDFWLRQSURJUDP6HF
([RQVDPHVH[PDUULDJH6HF
%\ZD\RIDFFHQWXDWLQJGLIIHUHQFHV
([RQVH[XDOKDUDVVPHQW6HF
([RQSK\VLFDOYLROHQFH6HF
([RQVH[XDOH[SORLWDWLRQ6HF
7KH2SSUHVVLRQE\WKH2WKHUVDJDLQVW7KHPVHOYHV
%\ZD\RIGRZQJUDGLQJGLIIHUHQFHV
([RQWKHUHYHUVHFODVVP\VWLTXH6HF
([RQWKHUHYHUVHEODFNP\VWLTXH6HF
([RQVHOIGLVFULPLQDWLRQE\GRZQJUDGLQJ6HF
%\ZD\RIDFFHQWXDWLQJGLIIHUHQFHV
([RQVHOIGLVFULPLQDWLRQE\DFFHQWXDWLQJ6HF
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
1RWHV7KHH[DPSOHVDUHVROHO\LOOXVWUDWLYHQRWH[KDXVWLYHQRUDUHWKH\
PXWXDOO\ H[FOXVLYH $V JHQHUDOLWLHV WKH\ DOORZ H[FHSWLRQV $OVR ERWK
IRUPVRIRSSUHVVLRQFRH[LVWLQDOORIWKHH[DPSOHVVRWKHOLVWLQJRIWKHP
DUHRQO\PHDQWLQDUHODWLYHQRWDEVROXWHVHQVH
6RXUFH $ VXPPDU\ RI WKH VHFWLRQV DV FLWHG LQ &KV RI %'3' 6HH
WH[WIRUPRUHLQIRDQGUHIHUHQFHV
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
7DEOH7KH6WUXFWXUHRI([LVWHQWLDO'LDOHFWLFV,
7KH)UHHGRP8QIUHHGRPDQG(TXDOLW\,QHTXDOLW\'LDOHFWLFV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
(DFKIUHHGRPDQGHTXDOLW\SURGXFHVLWVRZQXQIUHHGRPDQGLQHTXDOLW\
UHJDUGOHVVRIZKHWKHUWKHSDLURFFXUVLQSROLWLFDOVRFLHW\ZLWKWKHQDWLRQ
VWDWHLQFLYLOVRFLHW\ZLWKVRPHDXWRQRP\IURPWKHVWDWHRUHOVHZKHUH
HJ LQ WKH SULYDWH VSKHUH RI LQGLYLGXDO KRPHVDQG UHJDUGOHVV RI
ZKHWKHUIUHHGRPDQGHTXDOLW\DUHXQGHUVWRRGDVQHJDWLYHRUSRVLWLYH
2SSUHVVLRQ LV GXDOLVWLF DV PXFK E\ WKH 6DPH DJDLQVW WKH 2WKHUV DQG
LWVHOIDVE\WKH2WKHUVDJDLQVWWKH6DPHDQGWKHPVHOYHV
%RWKIRUPVRIRSSUHVVLRQDQGVHOIRSSUHVVLRQFDQEHDFKLHYHGE\ZD\RI
GRZQJUDGLQJ GLIIHUHQFHV EHWZHHQ WKH 6DPH DQG WKH 2WKHUV DQG RI
DFFHQWXDWLQJWKHP
7KH UHODWLRQVKLSV DUH UHODWLYHO\ DV\PPHWULF EHWZHHQ WKH 6DPH DQG WKH
2WKHUVDQGUHODWLYHO\V\PPHWULFZLWKLQWKHP7KLVLVWUXHHYHQZKHQWKH
6DPH FDQ EH UHODWLYHO\ DV\PPHWULF WRZDUGV LWVHOI LQ VHOIRSSUHVVLRQ MXVW
DVWKH2WKHUVFDQEHOLNHZLVHWRZDUGVWKHPVHOYHV
6\PPHWU\DQGDV\PPHWU\FKDQJHRYHUWLPHZLWKHYHUQHZSOD\HUVQHZ
FDXVHVDQGQHZIRUPV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
1RWHV 7KH H[DPSOHV LQ HDFK FDWHJRU\ DUH VROHO\ LOOXVWUDWLYH QRW
H[KDXVWLYH QRU QHFHVVDULO\ PXWXDOO\ H[FOXVLYH DQG WKH FRPSDULVRQ LV
UHODWLYHQRWDEVROXWH$VJHQHUDOLWLHVWKH\DOORZH[FHSWLRQV1HJDWLYH
IUHHGRP LV IUHHGRP IURP HJ IUHHGRP IURP SRYHUW\ ZKHUHDV
SRVLWLYH IUHHGRP LV IUHHGRP WR HJ IUHHGRP WR WKH VWDWH RI
HQOLJKWHQPHQW 1HJDWLYH HTXDOLW\ LV SURFHGXUDO HTXDOLW\ HJ
HTXDOLW\ RI RSSRUWXQLW\ ZKLOH SRVLWLYH HTXDOLW\ LV VXEVWDQWLYH
HTXDOLW\ HJ HTXDOLW\ RI RXWFRPH ([LVWHQWLDO GLDOHFWLFV LPSRVH
FRQVWUDLQWV RQ IUHHGRP DQG HTXDOLW\ LQ GHPRFUDF\ QRQGHPRFUDF\ DQG
SRVWGHPRFUDF\7KHUHLVQRXWRSLDLQWKHHQGHYHQVKRXOGWKHUHEHRQH
G\VWRSLDZRXOGH[LVWZLWKLQLW
6RXUFHV )URP 7DEOH RI %'3'DQG DOVR IURP )+& )&' DQG
)3+&
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7DEOH7KH6WUXFWXUHRI([LVWHQWLDO'LDOHFWLFV,,
7KH:HDOWK3RYHUW\'LDOHFWLFV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
7KHUH LV QR ZHDOWK ZLWKRXW SRYHUW\ MXVW DV WKHUH LV QR SRYHUW\ ZLWKRXW
ZHDOWK
7KHZHDOWKSRYHUW\GLDOHFWLFVRFFXUVLQWKHUHDOPVRIKDYLQJEHORQJLQJ
DQGEHLQJLQUHODWLRQWRWKHPDWHULDOUHODWLRQDODQGVSLULWXDO
7KHZHDOWKSRYHUW\GLDOHFWLFVDOVRH[SUHVVHVLWVHOIDWWKHPXOWLSOHOHYHOV
RI DQDO\VLV LQ DFFRUGDQFH WR PHWKRGRORJLFDO KROLVP EH WKH\ DERXW WKH
PLFURSK\VLFDO WKH FKHPLFDO WKH ELRORJLFDO WKH SV\FKRORJLFDO WKH
RUJDQL]DWLRQDOWKHLQVWLWXWLRQDOWKHVWUXFWXUDOWKHV\VWHPLFWKHFXOWXUDO
DQGWKHFRVPRORJLFDO
7KH ZHDOWKSRYHUW\ GLDOHFWLFV LV D GLIIHUHQW PDQLIHVWDWLRQ RI H[LVWHQWLDO
GLDOHFWLFVLQJHQHUDOVXEMHFWWRWKHSULQFLSOHVLQLWVORJLFRIRQWRORJ\MXVW
DVWKHIUHHGRPXQIUHHGRPDQGHTXDOLW\LQHTXDOLW\GLDOHFWLFVDUHOLNHZLVH
7KHUH LV QR HFRQRPLF XWRSLD LQ WKH HQG HYHQ VKRXOG WKHUH EH RQH
G\VWRSLDZRXOGH[LVWZLWKLQLW
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
1RWHV 7KH PDLQ SRLQWV KHUH DUH VROHO\ LOOXVWUDWLYH QRW H[KDXVWLYH QRU
QHFHVVDULO\ PXWXDOO\ H[FOXVLYH DQG WKH FRPSDULVRQ LV UHODWLYH QRW
DEVROXWH$VJHQHUDOLWLHVWKH\DOORZH[FHSWLRQV
6RXUFHV)URP%&3&6HHDOVR)&'DQG)+&
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
7DEOH7KH6WUXFWXUHRI([LVWHQWLDO'LDOHFWLFV,,,
7KH&LYLOL]DWLRQ%DUEDULW\'LDOHFWLFV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
7KHUHLVQRFLYLOL]DWLRQZLWKRXWEDUEDULW\
7KH FLYLOL]DWLRQEDUEDULW\ GLDOHFWLFV DSSOLHV LQ WKH IRXU FLYLOL]LQJ
SURFHVVHV HJ WKH UDWLRQDOL]LQJ SURFHVV WKH SDFLI\LQJ SURFHVV WKH
VWHZDUGL]LQJSURFHVVDQGWKHVXEOLPLQJSURFHVV
7KH FLYLOL]DWLRQEDUEDULW\ GLDOHFWLFV LV DQRWKHU GLIIHUHQW PDQLIHVWDWLRQ
RIH[LVWHQWLDOGLDOHFWLFVLQJHQHUDOVXEMHFWWRWKHSULQFLSOHVLQLWVORJLFRI
RQWRORJ\MXVW DV WKH IUHHGRPXQIUHHGRP DQG HTXDOLW\LQHTXDOLW\
GLDOHFWLFVDQGWKHZHDOWKSRYHUW\GLDOHFWLFVDUHOLNHZLVH
7KHUHLVQRXWRSLDLQWKHHQGHYHQVKRXOGWKHUHEHRQHG\VWRSLDZRXOG
H[LVWZLWKLQLW
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
1RWHV 7KH PDLQ SRLQWV KHUH DUH VROHO\ LOOXVWUDWLYH QRW H[KDXVWLYH QRU
QHFHVVDULO\ PXWXDOO\ H[FOXVLYH DQG WKH FRPSDULVRQ LV UHODWLYH QRW
DEVROXWH$VJHQHUDOLWLHVWKH\DOORZH[FHSWLRQV
6RXUFHV)URP%&,96HHDOVR)&')+&DQG%'3'
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7DEOH7KH'RXEOH6LGHVRI9LUWXDO2UJDQL]DWLRQV
3DUW,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
3V\FKRORJLFDO
([YLUWXDOSV\FKRVLV
([LPSHUVRQDOLW\DQGORQHOLQHVVLQTXDWHUQDU\VRFLDOUHODWLRQV
2UJDQL]DWLRQDO
([WKHUDFHIRUSRZHUDQGLQWHUHVWV
([WKHZRUOGRIXQHTXDOVXFFHVVHV
([WKHEXUHDXFUDWLFOLIHRILWVRZQ
([OHVVHUDFFRXQWDELOLW\DQGWUDQVSDUHQF\
(FRQRPLF
([WKHHFRQRPLFGLYLGHV
([WKHHURVLYHLPSDFWRIFRPPHUFLDOL]DWLRQ
3ROLWLFDO
([WKHDQWLDXWKRULWDULDQP\WK
([GLIIHUHQWSRZHUVWUXJJOHVDPRQJJURXSVHJ&RQVHUYDWLYH
5HIRUPLVW5DGLFDO
6WUXFWXUDO
([GLIIHUHQWORFDOLWLHVHJFOLPDWHVVFHQHU\
([GLYLGHGGRPDLQVHJFRUHSHULSKHUDOVXESHULSKHUDO
([VXEVWLWXWLRQHIIHFWRIVRFLDOFDSLWDO
6\VWHPLF
([XQHYHQDGYDQFHVLQWUDQVSRUWDWLRQDQGFRPPXQLFDWLRQVDQG
JHRJUDSKLFDOPLJUDWLRQ
&XOWXUDO
([FRQIOLFWLQJFLYLOL]DWLRQDOIDEULFVHJ&RQIXFLDQ,VODPLF
:HVWHUQ
([WKHELDVRIWKH/LEHUDO'HPRFUDWLFDJHQGD
([WKHDGGLFWLRQWRPRUDOIDQDWLFLVP
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
FRQWLQXHGRQQH[WSDJH
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
7DEOH7KH'RXEOH6LGHVRI9LUWXDO2UJDQL]DWLRQV
3DUW,,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
1RWHV 7KHVH FDWHJRULHV DQG H[DPSOHV DUH VROHO\ LOOXVWUDWLYH QRW
H[KDXVWLYH DQG VRPH RI WKH LWHPV FDQ EH UHFODVVLILHG VRPHZKHUH HOVH
1RU DUH WKH\ PXWXDOO\ H[FOXVLYH 6LQFH WKH\ DUH JHQHUDOLWLHV H[FHSWLRQV
DUHH[SHFWHG
6RXUFH)URP&KRI)&'
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7DEOH%H\RQGWKH:RUOGRI7LWDQV
DQGWKH5HPDNLQJRIWKH:RUOG2UGHU
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
+\SHU(PSLUHV
([7KH&KLQHVH8QLRQ
([7KH,QGLDQ8QLRQ
0HVR(PSLUHV
([7KH(XURSHDQ8QLRQ
([7KH1RUWK$PHULFDQ8QLRQ
0LFUR(PSLUHV
([7KH/DWLQ$PHULFDQ8QLRQ
([7KH0LGGOH(DVWHUQ8QLRQ
7KH5HVWRIWKH:RUOG
2GG3RZHUV
([-DSDQ
([5XVVLD
7KH3RRU&OXE
([7KH$IULFDQ8QLRQ
$PELYDOHQW5HJLRQV
([6RXWKHDVW$VLD
([2FHDQLD
([6RXWK$VLD
([&HQWUDO$VLD
([6RXWKHUQ(DVWHUQ(XURSH
([1RUWK$IULFD
([&HQWUDO$PHULFD
([2WKHUVHJWKH.RUHDQSHQLQVXOD
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
6RXUFH$VXPPDU\RI&KVRI%:7
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
7DEOH7KH2ULJLQV
RI$XWKRULWDULDQ/LEHUDO'HPRFUDF\
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
7KH*HRSRZHURI1DWXUH&KRI$/'
([3RZHU&KDUDFWHUDQG*HRJUDSKLFDO6WUDWHJ\
([/LYLQJ6SDFHDQG7HUULWRULDO([SDQVLRQ
([6WUDWHJLF+HDUWODQGDQG&RQWDLQPHQW
7KH%LRSV\FKRORJ\RIWKH0LQG&KRI$/'
([7KH%HOO&XUYHDQG0DVV,QWHOOLJHQFH
([*URXS$QDO\VLVDQG0DVV.QRZOHGJH
([*URXSWKLQNDQG(OLWH0LVFDOFXODWLRQ
7KH'LVFLSOLQDU\&RQWURORI6RFLHW\&KRI$/'
([6RFLDO2UJDQL]DWLRQVRI5XWKOHVVQHVV
([6RFLDO,QVWLWXWLRQVRI*UHHG
([6RFLDO6WUXFWXUHRI([FOXVLRQ
([6RFLDO6\VWHPVRI9LROHQFH
7KH0ROGLQJ)RUFHRI&XOWXUH&KRI$/'
([7KH7UDGLWLRQRI&RQTXHVW
([7KH5DWLRQDOL]DWLRQRI8QUHDVRQ
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
1RWHV 7KH H[DPSOHV LQ HDFK FDWHJRU\ DUH VROHO\ LOOXVWUDWLYH QRW
H[KDXVWLYHDQGWKH\DUHDOVRUHODWLYHQRWDEVROXWHQRUDUHWKH\PXWXDOO\
H[FOXVLYH$VJHQHUDOLWLHVWKH\DOORZH[FHSWLRQV
6RXUFH$VXPPDU\RI&KVRI$/'
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7DEOH7KH7KHRU\RI3RVW'HPRFUDF\,
7KH3ULRULW\RI)UHHGRPRYHU(TXDOLW\
3DUW,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
'LIIHUHQFHV
)RUWKHDJJUHVVLYH/LRQVWKHVWURQJ(OLWLVWV
6HWWLQJXSUDQNGLVWLQFWLRQVDPRQJXQHTXDOVHJEHWZHHQLQIHULRU
KXPDQV DQG VXSHULRU SRVWKXPDQV RU ODWHU DPRQJ LQIHULRU SRVW
KXPDQVDQGVXSHULRURQHVUHODWLYHO\VSHDNLQJ
<HDUQLQJ IRU EHLQJ QRW RQO\ GLVWLQJXLVKHG IURP XQHTXDOV EXW DOVR
WKHILUVWDPRQJHTXDOVWKHEHVWRIWKHYHU\EHVW
6RXOVHDUFKLQJIRUDKLJKVSLULWXDOFXOWXUHQRWWKHWUDVK\RQH
IRUWKHPDVVHV0DVVFXOWXUHLVDGLUW\MRNHIRUWKHP
)RUWKHPDQLSXODWLYH)R[HVWKHZHDN&RXQWHU(OLWLVWV
6HHNLQJDJHQWOHKHJHPRQ\E\ZD\RIPRUHFRPPXQLWDULDQFRQFHUQV
IRULQIHULRUKXPDQVDQGODWHULQIHULRUSRVWKXPDQV
%HLQJ PRUH V\PSDWKHWLF WR OHVV IRUPDOOHJDOLVWLF LQVWLWXWLRQV DQG
YDOXHV
6LPLODULWLHV
)RUERWK/LRQVDQG)R[HV
([SORULQJ GLIIHUHQW VSKHUHV RI QRQKXPDQ FRQVFLRXVQHVV LQ WKH
FRVPRVVRPHWKLQJYDVWO\VXSHULRUWKDQWKHKXPDQRQH
5HFRJQL]LQJ WKH GHPRFUDWLF LOOXVLRQV HJ QR IUHHGRP ZLWKRXW
XQIUHHGRP QR HTXDOLW\ ZLWKRXW LQHTXDOLW\ RU VLPSO\ QR MXVWLFH
ZLWKRXWLQMXVWLFHDQGYLFHYHUVD
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
FRQWLQXHGRQQH[WSDJH
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
7DEOH7KH7KHRU\RI3RVW'HPRFUDF\,
7KH3ULRULW\RI)UHHGRPRYHU(TXDOLW\
3DUW,,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
1RWHV 7KH WZR FDOOLQJV DQG H[DPSOHV LQ HDFK FDWHJRU\ DUH VROHO\
LOOXVWUDWLYHQRWH[KDXVWLYHVLQFHWKHUHZLOOEHPDQ\GLIIHUHQWSRVWKXPDQ
YDOXH LGHDOV LQ WKH GLVWDQW IXWXUH RI SRVWKXPDQ FLYLOL]DWLRQ 7KH
FRPSDULVRQLVDOVRUHODWLYHQRWDEVROXWHWRZDUGVSRVWGHPRFUDF\VRWKLV
LV QRW MXVW D YHUVLRQ RI IUHHPDUNHW GHPRFUDF\ QRU )DVFLVP1D]LVP DV
VKRZQ LQ WKH WDEOH ODWHU RQ GHPRFUDF\ QRQGHPRFUDF\ DQG SRVW
GHPRFUDF\1RUDUHWKH\ PXWXDOO\H[FOXVLYH $VJHQHUDOLWLHVWKH\DOORZ
H[FHSWLRQV $QGWKH VSHFLILF IRUPVRISRVWKXPDQSRVWGHPRFUDWLFLGHDOV
QHHG WR EH IXUWKHU GHYHORSHG LQ IXWXUH DIWHUSRVWPRGHUQ KLVWRU\ DV WKH\
ZLOOEHGLIIHUHQWIURPWKHRQHVZHQRZNQRZ7KHSRLQWKHUHLVWRVROHO\
JLYHDQH[WUHPHO\URXJKSLFWXUHRIDVPDOOSDUWRIWKHZRUOGWRFRPHWKDW
ZHKDYHQHYHUNQRZQ
6RXUFH)URP&KRI)&'5HIHUWRWH[WIRUPRUHLQIRDQGUHIHUHQFHV
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7DEOH7KH7KHRU\RI3RVW'HPRFUDF\,,
7KH3ULRULW\RI(TXDOLW\RYHU)UHHGRP
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
+\EULG9HUVLRQVRI
([WKH7UDQV)HPLQLQH&DOOLQJ
([WKH7UDQV6LQLWLF&DOOLQJ
([WKH7UDQV,VODPLF&DOOLQJ
([WKH7UDQV2XWHUVSDFH&DOOLQJ
4XDOLILFDWLRQV
7KHVH IRXU YHUVLRQV RI SRVWFDSLWDOLVW YDOXH LGHDOV QHHG QRW
DXWRPDWLFDOO\ EH SRVWGHPRFUDWLF MXVW DV FDSLWDOLVP GRHV QRW
QHFHVVDULO\PHDQGHPRFUDF\7KH\DUHWZRGLIIHUHQWHQWLWLHVWKRXJK
FORVHO\UHODWHG
%XW XS WR D FHUWDLQ WKUHVKROG RI HOHYDWLQJ HTXDOLW\ DW WKH IDUWKHU
H[SHQVHRIIUHHGRPWKHGHPRFUDWLFLGHDOVZLOOEHRYHUFRPHDQGFHDVH
WRH[LVW
7KHRYHUFRPHZLOOQRWEHVRFLDOLVWRUFRPPXQLVWEXWSRVWGHPRFUDWLF
ZLWK QR IUHHGRP ZLWKRXW XQIUHHGRP DQG QR HTXDOLW\ ZLWKRXW
LQHTXDOLW\VXEMHFWWRWKHFRQVWUDLQWVRIH[LVWHQWLDOGLDOHFWLFV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
1RWHV7KHFDOOLQJVDUHVROHO\LOOXVWUDWLYHQRWH[KDXVWLYHVLQFHWKHUHZLOO
EH PDQ\ GLIIHUHQW SRVWKXPDQ YDOXH LGHDOV LQ WKH GLVWDQW IXWXUH RI SRVW
KXPDQ OLIHIRUPV 7KH FRPSDULVRQ LV DOVR UHODWLYH QRW DEVROXWH QRU DUH
WKH\ PXWXDOO\ H[FOXVLYH $V JHQHUDOLWLHV WKH\ DOORZ H[FHSWLRQV $QG WKH
VSHFLILF IRUPV RI SRVWKXPDQ SRVWGHPRFUDWLF LGHDOV QHHG WR EH IXUWKHU
GHYHORSHG LQ IXWXUH DIWHUSRVWPRGHUQ KLVWRU\ DV WKH\ ZLOO EH GLIIHUHQW
IURPWKHRQHVZHQRZNQRZ7KHSRLQWKHUHLVWRVROHO\JLYHDQH[WUHPHO\
URXJK SLFWXUH RI D VPDOO SDUW RI WKH ZRUOG WR FRPH WKDW ZH KDYH QHYHU
NQRZQ
6RXUFH)URP&KRI)&'5HIHUWRWH[WIRUPRUHLQIRDQGUHIHUHQFHV
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
7DEOH7KH7KHRU\RI3RVW'HPRFUDF\,,,
7KH7UDQVFHQGHQFHRI)UHHGRPDQG(TXDOLW\
3DUW,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
7UDQVFHQGLQJ)UHHGRPLQ)ORDWLQJ([LVWHQFH
)UHHGRPVHHNLQJDQXOWLPDWHHOLPLQDWLRQRIWKHERG\%HLQJZLWKRXW
WKH ERG\ 7KH DLP LV WR WUDQVFHQG IUHHGRP LQ WKH HQG LQWR D
PHWDSK\VLFDOVWDWHLHEH\RQGWKHSK\VLTXH
8QIUHHGRP \HW IDFLQJ GLIILFXOW WUDGHRIIV 7KH VDFULILFH RI ERGLO\
H[LVWHQFHDQGLWVMR\IXOQHVV$QHWHUQDOERUHGRPLQIORDWLQJH[LVWHQFH
LQGDUNGHHSVSDFHWKRXJKZLWKDOWHUQDWLYHSOHDVXUHV7KHUHLVQRIUHH
OXQFKHYHQLQWKHVWDWHRIWUDQVFHQGLQJIUHHGRP
7UDQVFHQGLQJ(TXDOLW\LQWKH5LYDOU\RI&RVPLF+HJHPRQ\
,QHTXDOLW\FRPSHWLQJWRRXWODVWRWKHUOLIHIRUPVLQIORDWLQJH[LVWHQFH
RUMXVWPDUJLQDOL]LQJWKHPIRURQHVKHJHPRQLFH[SDQVLYHQHVVLQWKH
UHVW RI WKH FRVPRV DQG HYHQ EH\RQG 8QLYHUVDOLVP LV RQO\ IRU WKH
PHGLRFUH
(TXDOLW\ DFFHSWLQJ RQO\ WKRVH RI RQHV UDQN DV HTXDO SDUWQHUV LQ WKH
YDVW VSDFHWLPH IRU FRVPLF VXSUHPDF\ (YHQ KHUH WKH DLP LV WR
WUDQVFHQGHTXDOLW\LQWRDPHWDSK\VLFDOVWDWH
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
FRQWLQXHGRQQH[WSDJH
N
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7DEOH7KH7KHRU\RI3RVW'HPRFUDF\,,,
7KH7UDQVFHQGHQFHRI)UHHGRPDQG(TXDOLW\
3DUW,,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
1RWHV'RQRWFRQIXVHWKLVWUDQVFHQGHQFHRIIUHHGRPDQGHTXDOLW\DVRQH
YHUVLRQ RI SRVWGHPRFUDF\ ZLWK WKH QDwYH WHPSWDWLRQ WR WUDQVFHQG WKH
IUHHGRPXQIUHHGRP DQG HTXDOLW\LQHTXDOLW\ GLDOHFWLFV ([LVWHQWLDO
GLDOHFWLFVKROGWUXHIRUIUHHGRPDQGHTXDOLW\LQDOOFXOWXUHVDQGVRFLHWLHV
SDVW SUHVHQW RU IXWXUH LH GHPRFUDF\ QRQGHPRFUDF\ DQG SRVW
GHPRFUDF\ UHJDUGOHVV RI ZKHWKHU IUHHGRP DQG HTXDOLW\ DUH
FRQYHQWLRQDOO\XQGHUVWRRGDVQHJDWLYHRUSRVLWLYH
$OVR WKH WZR IHDWXUHV DQG H[DPSOHV LQ HDFK DUH VROHO\ LOOXVWUDWLYH QRW
H[KDXVWLYHVLQFHWKHUHZLOOEHPDQ\GLIIHUHQWSRVWKXPDQYDOXHLGHDOVLQ
WKHGLVWDQWIXWXUHRISRVWKXPDQOLIHIRUPV7KHFRPSDULVRQLVDOVRUHODWLYH
QRWDEVROXWHQRUDUHWKH\PXWXDOO\H[FOXVLYH$VJHQHUDOLWLHVWKH\DOORZ
H[FHSWLRQV $QG WKH VSHFLILF IRUPV RI SRVWKXPDQ LGHDOV HYHQ IRU WKHVH
UDGLFDOO\ DOLHQ IORDWLQJ OLIHIRUPV DQG RWKHUV XQNQRZQ WR XV QHHG WR EH
IXUWKHUGHYHORSHGLQIXWXUHDIWHUSRVWPRGHUQKLVWRU\DVWKH\ZLOOOLNHO\EH
GLIIHUHQWIURPWKHRQHVKHUHLQLOOXVWUDWHG7KHSRLQWKHUHLVWRVROHO\JLYHD
YHU\ URXJK SLFWXUH RI D VPDOO SDUW RI WKH H[WUHPHO\ DOLHQ ZRUOG WR FRPH
WKDWZHKDYHQHYHUNQRZQ
6RXUFH)URP&KRI)&'5HIHUWRWH[WIRUPRUHLQIRDQGUHIHUHQFHV
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
7DEOH'HPRFUDF\1RQ'HPRFUDF\DQG3RVW'HPRFUDF\
3DUW,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
'HPRFUDF\
7KHRUHWLFDO&RQVWUXFWV
7KHSXUVXLWRIIUHHGRPDQGHTXDOLW\LQYDULRXVGHJUHHVUHJDUGOHVV
RIZKHWKHUIUHHGRPDQGHTXDOLW\FDQEHXQGHUVWRRGDVQHJDWLYHRU
SRVLWLYH
PRUHHTXDOLW\WKDQIUHHGRP7KHUHODWLYHSULRULW\RIWKHJRRG
RYHUWKHULJKW
PRUHIUHHGRPWKDQHTXDOLW\7KHUHODWLYHSULRULW\RIWKHULJKW
RYHUWKHJRRG
7\SHV
2QO\'LIIHUHQWYHUVLRQVRIFRPPXQLWDULDQPRUDOXQLYHUVDOLVP
2QO\'LIIHUHQWYHUVLRQVRIOLEHUDOPRUDOXQLYHUVDOLVP
RU'LIIHUHQWYHUVLRQVRIDQDUFKLFQRQQDWLRQVWDWH
PRUDOXQLYHUVDOLVP
RU'LIIHUHQWYHUVLRQVRISRVWPRGHUQPRUDOORFDOLVP
1RQ'HPRFUDF\
7KHRUHWLFDO&RQVWUXFWV
7KHIRFXVRQHTXDOLW\RUIUHHGRPEXWQRWERWKUHJDUGOHVVRI
ZKHWKHU IUHHGRP DQG HTXDOLW\ FDQ EH XQGHUVWRRG DV QHJDWLYH RU
SRVLWLYH
7\SHV
2QO\ 'LIIHUHQW YHUVLRQV RQ WKH )DU /HIW HJ
6WDOLQLVP5REHVSLHUULDQLVP
2QO\ 'LIIHUHQW YHUVLRQV RQ WKH )DU 5LJKW HJ 1D]LVP
DEVROXWHPRQDUFKLVP
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
FRQWLQXHGRQQH[WSDJH
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7DEOH'HPRFUDF\1RQ'HPRFUDF\DQG3RVW'HPRFUDF\
3DUW,,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
3RVW'HPRFUDF\
7KHRUHWLFDO&RQVWUXFWV
7KH SULRULW\ RI HTXDOLW\ RYHU IUHHGRP RU IUHHGRP RYHU
HTXDOLW\ RU WKH WUDQVFHQGHQFH RI IUHHGRP DQG HTXDOLW\
UHJDUGOHVV RI ZKHWKHU IUHHGRP DQG HTXDOLW\ DUH QHJDWLYH RU
SRVLWLYH,QGHJUHHRULVOHVVWKDQRUEXWPRUH
WKDQRUUHVSHFWLYHO\
/LNH GHPRFUDF\ DQG QRQGHPRFUDF\ SRVWGHPRFUDF\ LV DOVR VXEMHFW
WR WKH IUHHGRPXQIUHHGRP DQG HTXDOLW\LQHTXDOLW\ GLDOHFWLFV RU
H[LVWHQWLDO GLDOHFWLFV LQ JHQHUDO 8QOLNH WKHP SRVWGHPRFUDF\
DFNQRZOHGJHV WKH FRQVWUDLQWV RI H[LVWHQWLDO GLDOHFWLFV DQG QR ORQJHU
YDOXHIUHHGRPDQGHTXDOLW\DVVDFUHGYLUWXHV7KHUHLV QR XWRSLDLQ
WKHHQGHYHQZHUHWKHUHRQHG\VWRSLDZRXOGH[LVWZLWKLQLW
7\SHV
'LIIHUHQWYHUVLRQVRIWUDQV6LQLWLFYDOXHLGHDOV
'LIIHUHQWYHUVLRQVRIWUDQVIHPLQLQHYDOXHLGHDOV
'LIIHUHQWYHUVLRQVRIWUDQV,VODPLFYDOXHLGHDOV
'LIIHUHQWYHUVLRQVRIWUDQVRXWHUVSDFHYDOXHLGHDOV
'LIIHUHQWYHUVLRQVRISRVWKXPDQHOLWLVWYDOXHLGHDOV
'LIIHUHQWYHUVLRQVRIWKHYDOXHLGHDOVRIIORDWLQJFRQVFLRXVQHVV
HWF
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
FRQWLQXHGRQQH[WSDJH
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
7DEOH'HPRFUDF\1RQ'HPRFUDF\DQG3RVW'HPRFUDF\
3DUW,,,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
1RWHV7KHH[DPSOHVDUHVROHO\LOOXVWUDWLYHQRWH[KDXVWLYHQRUDUHWKH\
PXWXDOO\ H[FOXVLYH $V JHQHUDOLWLHV WKH\ DOORZ H[FHSWLRQV 1HJDWLYH
IUHHGRP LV IUHHGRP IURP HJ IUHHGRP IURP SRYHUW\ ZKHUHDV
SRVLWLYH IUHHGRP LV IUHHGRP WR HJ IUHHGRP WR WKH VWDWH RI
HQOLJKWHQPHQW 1HJDWLYH HTXDOLW\ LV SURFHGXUDO HTXDOLW\ HJ
HTXDOLW\ RI RSSRUWXQLW\ ZKLOH SRVLWLYH HTXDOLW\ LV VXEVWDQWLYH
HTXDOLW\ HJ HTXDOLW\ RI RXWFRPH ([LVWHQWLDO GLDOHFWLFV LPSRVH
FRQVWUDLQWV RQ IUHHGRP DQG HTXDOLW\ LQ GHPRFUDF\ QRQGHPRFUDF\ DQG
SRVWGHPRFUDF\ UHJDUGOHVV RI ZKHWKHU IUHHGRP DQG HTXDOLW\ FDQ EH
XQGHUVWRRG DV QHJDWLYH RU SRVLWLYH LQ FRQYHQWLRQDO GLVFRXUVH
7KHUHIRUH GR QRW FRQIXVH WKH WUDQVFHQGHQFH RI IUHHGRP DQG HTXDOLW\ LQ
ZLWKWKHQDwYHWHPSWDWLRQWRWUDQVFHQGH[LVWHQWLDOGLDOHFWLFV7KHUHLV
QRXWRSLDLQWKHHQGHYHQVKRXOGWKHUHEHRQHLWZRXOGQRWH[LVWZLWKRXW
G\VWRSLDHPEHGGHGZLWKLQLW
6RXUFHV $ VXPPDU\ EDVHG RQ P\ SUHYLRXV ZRUNV HVSHFLDOO\ &K RI
)+&&KVRI)&'&KVRI)3+&DQG&KV RI%'3'7KH
UHDGHU VKRXOG FRQVXOW WKH ERRNV IRU PRUH DQDO\VLV DV WKLV LV RQO\ D
VXPPDU\KHUH
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7DEOH0XOWLSOH&DXVHVRIWKH(PHUJHQFHRI3RVW'HPRFUDF\
3DUW,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
$WWKH0LFUR3K\VLFDO/HYHO
([LQWHOOLJHQWOLIHZLWKRXWWKHKXPDQSK\VLFDOFKHPLFDOV\VWHP
6RXUFHV&KRI)+&&KVRI)&'&KRI)3+&
$WWKH&KHPLFDO/HYHO
([VSDFHUDGLDWLRQDQGWR[LQV
6RXUFHV&KRI)+&&KVRI)&'
$WWKH%LR3V\FKRORJLFDO/HYHO
([H[RELRORJLFDOHYROXWLRQLQGHHSVSDFH
([JHQHWLFHQJLQHHULQJRIQHZEHLQJV
([OLPLWVRIFRJQLWLYHSDUWLDOLW\
([LOOXVLRQVRIHPRWLRQDOQHXWUDOLW\
([KXPDQELRORJLFDOLQHTXDOLW\
([WKHULVHRIXQIROGLQJXQFRQVFLRXVQHVV
6RXUFHV&K &KVRI)&'&KRI)+&&KRI%&3&
)3+8
$WWKH,QVWLWXWLRQDO/HYHO
([WKHIODZHGORJLFRIHTXDOLW\
([WKHFRQIOLFWLQJQDWXUHRIJRYHUQDQFH
6RXUFHV&KRI)+&&KV RI)&'&KRI)3+&
&KVRI%'3'
$WWKH2UJDQL]DWLRQDO/HYHO
([HFLYLFDOLHQDWLRQ
([WKHGDUNVLGHVRIIRUPDOOHJDOLVWLFURXWLQHV
6RXUFHV&KRI)+&&KRI)&'&KRI)3+&
$WWKH6WUXFWXUDO/HYHO
([HYHUQHZIRUPVRILQHTXLWLHVDWKRPHDQGDEURDG
([WKHHPHUJHQFHRI&KLQDZRPHQDQG,VODPDVPDMRUDFWRUV
6RXUFHV&KVRI)+&&KV RI)&'&KVRI%'3'
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
FRQWLQXHGRQQH[WSDJH
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
7DEOH0XOWLSOH&DXVHVRIWKH(PHUJHQFHRI3RVW'HPRFUDF\
3DUW,,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
$WWKH&XOWXUDO/HYHO
([IUHHGRPXQIUHHGRPGLDOHFWLFV
([HTXDOLW\LQHTXDOLW\GLDOHFWLFV
([V\VWHPIUDJPHQWDWLRQDQGLQWHJUDWLRQ
6RXUFHV&KRI)+&&KV RI)&'&KRI)3+&
&KRI%'3'&KRI%&3&
$WWKH6\VWHPLF/HYHO
([VSDFHKDELWDWVLQ]HURJUDYLW\DQGFRORQL]DWLRQ
([XOWUDDGYDQFHGIXWXUHLQIRV\VWHPV
([TXDOLWDWLYHGHPRJUDSK\
6RXUFHV&KRI)+&&KV RI)&'
$WWKH&RVPRORJLFDO/HYHO
([WKHFRORQL]DWLRQRIPXOWLYHUVHV
([WKHDOWHUDWLRQRIVSDFHWLPHDQGWKHFUHDWLRQRIQHZPDWWHUHQHUJ\
([WKHH[SDQVLRQRIIORDWLQJFRQVFLRXVQHVV
([WKHVSUHDGRIK\SHUVSDWLDOFRQVFLRXVQHVV
6RXUFHV&KRI)+&&KV RI)&'&KRI)3+&)3+67
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
1RWHV 7KH H[DPSOHV LQ HDFK FDWHJRU\ DUH VROHO\ LOOXVWUDWLYH QRW
H[KDXVWLYH DQG VRPH RI WKH LWHPV FDQ EH UHFODVVLILHG VRPHZKHUH HOVH
1RU DUH WKH\ DOZD\V PXWXDOO\ H[FOXVLYH 6LQFH WKH\ DUH JHQHUDOLWLHV
H[FHSWLRQVDUHH[SHFWHG
6RXUFHV(VSHFLDOO\IURP)+&)&')3+&%&3&%'3')3+67DQG
)3+86HHDOVRRWKHUERRNVDQGP\SHUVSHFWLYHVRQFLYLOL]DWLRQDOKROLVP
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7DEOH6RPH&ODULILFDWLRQV
DERXW3RVW&DSLWDOLVPDQG3RVW'HPRFUDF\
3DUW,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
7KHSUHIL[WUDQVLQWKHILUVWFDWHJRU\RISRVWFDSLWDOLVPZLWKLWVIRXU
YHUVLRQV UHIHUV WR VRPHWKLQJ JRLQJ EH\RQG QRW XQLWLQJ RU
FRPELQLQJ ([ 6HF RI )&' 6HF 6HF RI )3+&
6HFRI%&3&
6XFK WHUPV OLNH SRVWGHPRFUDF\ SRVWFDSLWDOLVP SRVWKXPDQ
HOLWLVW WUDQVIHPLQLQH FDOOLQJ DQG WKH OLNH DV XVHG LQ P\ ZRUNV DUH
PRUH IRU RXU FXUUHQW LQWHOOHFWXDO FRQYHQLHQFH WKDQ WR WKH OLNLQJ RI IXWXUH
KXPDQV DQG SRVWKXPDQV ZKR ZLOO VXUHO\ LQYHQW PRUH WDVWHIXO
QHRORJLVPV WR FDOO WKHLU RZQ HUDV HQWLWLHV DQG HYHU\WKLQJ HOVH IRU WKDW
PDWWHU%XWWKHGLGDFWLFSRLQWKHUHLVWRXVHWKHWHUPVWRIRUHWHOOZKDWWKH
IXWXUHPLJKWEHOLNHQRWWKDWLWVHUDVDQGHQWLWLHVPXVWEHFDOOHGVRH[DFWO\
DQGSHUPDQHQWO\
([6HFRI)&'6HFRI%&3&
7KHIRXUYHUVLRQVLQWKHILUVWFDWHJRU\RISRVWFDSLWDOLVWYDOXHLGHDOVQHHG
QRW DXWRPDWLFDOO\ EH SRVWGHPRFUDWLF MXVW DV FDSLWDOLVP GRHV QRW
QHFHVVDULO\ PHDQ GHPRFUDF\ 7KH\ DUH WZR GLIIHUHQW HQWLWLHVWKRXJK
FORVHO\ UHODWHG %XW XS WR D FHUWDLQ WKUHVKROG RI HOHYDWLQJ HTXDOLW\ DW WKH
IDUWKHU H[SHQVH RI IUHHGRP WKH GHPRFUDWLF LGHDOV ZLOO EH RYHUFRPH DQG
FHDVH WR H[LVW 7KH VDPH LV WUXH IRU WKH SRVWKXPDQ HOLWLVW FDOOLQJ LQ WKH
VHFRQG FDWHJRU\ RI SRVWFDSLWDOLVP LQ UHODWLRQ WR SRVWGHPRFUDF\
GHSHQGLQJ RQ WKH H[WHQW WR ZKLFK IUHHGRP LV HOHYDWHG DW WKH H[SHQVH RI
HTXDOLW\
([6HFRI)&'7DEOHRI)3+&7DEOHRI%'3'
7KHFRPSDULVRQLQHDFKRIWKHWKUHHUHDOPVRIH[LVWHQFHLQDOOIRUPVRI
SRVWFDSLWDOLVP LV QRW DEVROXWH EXW UHODWLYH ([DPSOHV LQFOXGH
FRPPXQDOYVLQGLYLGXDOLVWLFDQGWKHOLNH
([1RWHVLQ7DEOH7DEOH7DEOH 7DEOHRI)&'
&KVRI)3+&6HFRI%&3&
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
FRQWLQXHGRQQH[WSDJH
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
7DEOH6RPH&ODULILFDWLRQV
DERXW3RVW&DSLWDOLVPDQG3RVW'HPRFUDF\
3DUW,,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
7KHHPHUJHQFHRISRVWFDSLWDOLVPDQGSRVWGHPRFUDF\IRUWKDWPDWWHU
KDVPXOWLSOHFDXVHVWRQRWEHUHGXFHGWRRQHRURQO\DIHZ
([ &K RI )&' &KV RI )3+& 6HF 6HF RI %&3& RU
7DEOH 7DEOH
7KH VSHFLILF IRUPV RI SRVWFDSLWDOLVP DQG SRVWGHPRFUDF\ IRU WKDW
PDWWHUQHHGWREHIXUWKHUGHYHORSHGLQIXWXUHDIWHUSRVWPRGHUQKLVWRU\DV
WKH\ ZLOO EH GLIIHUHQW IURP WKH RQHV ZH QRZ NQRZ 7KH SRLQW KHUH LV WR
VROHO\ JLYH DQ H[WUHPHO\ URXJK VNHWFK RI D ZRUOG WR FRPH WKDW ZH KDYH
QHYHUNQRZQ
([ 6HF 6HF RI )&' 7DEOH 7DEOH RI
)&'6HFRI%&3&
$OO IRUPVRISRVWFDSLWDOLVPDUHQRWSDUWRIDWHOHRORJLFDOODZEXWRI
KLVWRULFDO WUHQGV RQO\ 7KH VDPH LV DOVR WUXH IRU DOO IRUPV RI SRVW
GHPRFUDF\
([6HFRI)+&6HF 6HFRI)&'6HFRI%&3&
3RVWFDSLWDOLVP LV QRW EHWWHU WKDQ FDSLWDOLVP LQ DQ DEVROXWH VHQVH EXW
RQO\ ILWV LQ EHWWHU RQ WKH EDVLV RI WKH KLVWRULFDO FRQWLQJHQF\ RI FXOWXUH
VRFLHW\ QDWXUH DQG WKH PLQG LQ VRPH IXWXUH HUDV 7KH VDPH LV WUXH IRU
SRVWGHPRFUDF\LQUHODWLRQWRGHPRFUDF\7KHWHUPEHWWHULVKLVWRULFDOO\
UHODWLYH
([6HFRI)&'6HFRI%'3'6HFRI%&3&
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
FRQWLQXHGRQQH[WSDJH
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7DEOH6RPH&ODULILFDWLRQV
DERXW3RVW&DSLWDOLVPDQG3RVW'HPRFUDF\
3DUW,,,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
$OO IRUPV RI SRVWFDSLWDOLVP DQG SRVWGHPRFUDF\ DUH VXEMHFW WR WKH
FRQVWUDLQWVRIH[LVWHQWLDOGLDOHFWLFV,QWKHSURFHVVWKHGLDOHFWLFGLUHFWLRQLV
WR JR EH\RQG WKH FRQYHQWLRQDO HLWKHURU GLFKRWRPLHV HJ IUHHGRP YV
XQIUHHGRPHTXDOLW\YVLQHTXDOLW\IUHHGRP YVHTXDOLW\LQGLYLGXDOLW\YV
FRPPXQDOLW\ VSLULWXDOLW\ YV PDWHULDOLW\ IRUPDO OHJDOLVP YV LQIRUPDO
OHJDOLVP HWF $V LV WUXH LQ SRVWFLYLOL]DWLRQ WR JR EH\RQG WKH
GLFKRWRPLHV LV WR DFNQRZOHGJH WKH FRH[LVWHQFH RI ERWK LQ HDFK
GLFKRWRP\ DOWKRXJK WKH GHJUHH RI VFDOLQJ RQH RYHU WKH RYHU YDULHV IURP
FDVH WR FDVH HJ WKH WKHRU\ RI SRVWFDSLWDOLVP , WKH WKHRU\ RI SRVW
FDSLWDOLVP ,, WKH WKHRU\ RI SRVWGHPRFUDF\ , WKH WKHRU\ RI SRVW
GHPRFUDF\,,HWFEXWLVQRWWREHH[WUHPHLQODUJHO\IDYRULQJRQHRYHU
WKHRWKHURQDYHUDJHDOOWKLQJVFRQVLGHUHG7KHUHLVQRXWRSLDWREHKDG
LQWKHHQGHYHQVKRXOGWKHUHEHRQHG\VWRSLDZRXOGH[LVWZLWKLQLW
([ &K RI )+& 6HF RI )&' 6HF RI %'3' 6HF RI
%&3&%&,9
$OOIRUPVRISRVWFDSLWDOLVPKRZHYHUGLIIHUHQWIURPHDFKRWKHUWKRXJK
WKH\ DUH VKDUH RQH FRPPRQ IHDWXUH LQ WKDW WKH\ DOO LQVSLUH IRU D KLJKHU
VSLULWXDOFXOWXUH7KHVDPHLVDOVRWUXHIRUSRVWGHPRFUDF\
([6HF6HF 6HFRI)&'&KVRI)3+&6HFRI
%&3&
$OO IRUPV RI SRVWFDSLWDOLVP WU\ WR DYRLG WKH H[FHVV LQ FDSLWDOLVW
FRQVXPHULVP E\ IDYRULQJ PRUH EDVLF WKDQ DUWLILFLDO QHHGV LQ KDYLQJ EXW
WKHTXDOLW\DQGTXDQWLW\RIWKHVHEDVLFQHHGVZLOOEHPHDVXUHGE\IXWXUH
VWDQGDUGVQRWE\RXUFXUUHQWRQHV6WDQGDUGVDUHKLVWRULFDOO\UHODWLYH
([ 6HF 6HF 6HF RI )&' &K RI )3+& 6HF RI
%&3&
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
FRQWLQXHGRQQH[WSDJH
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
7DEOH6RPH&ODULILFDWLRQV
DERXW3RVW&DSLWDOLVPDQG3RVW'HPRFUDF\
3DUW,9
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
$OO IRUPVRISRVWFDSLWDOLVP PDNH XVHRIDGLIIHUHQWGHJUHHRISROLWLFDO
DXWKRULW\ ZLWK DGYDQFHG LQIR V\VWHPV LQ IXWXUH KLVWRU\ DQG VWULYHV IRU
KLJKHU VSLULWXDO FXOWXUHV HVSHFLDOO\ LQ WKH SRVWKXPDQ DJH ZKLOH
DFNQRZOHGJLQJ WKH FRQVWUDLQWV RI H[LVWHQWLDO GLDOHFWLFV DQG QR ORQJHU
YDOXLQJ IUHH PDUNHW DV LQ FDSLWDOLVP DQG HFRQRPLF FRQWURO DV LQ QRQ
FDSLWDOLVPDVVDFUHGYLUWXHV
([ 6HF 6HF 6HF 6HF RI )&' &KV RI
)3+&6HFRI%'3'6HFRI%&3&
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
1RWHV 7KH PDLQ SRLQWV KHUH DUH VROHO\ LOOXVWUDWLYH QRW H[KDXVWLYH QRU
QHFHVVDULO\ PXWXDOO\ H[FOXVLYH DQG WKH FRPSDULVRQ LV UHODWLYH QRW
DEVROXWH$VJHQHUDOLWLHVWKH\DOORZH[FHSWLRQV7KHVHFWLRQVDVFLWHGDUH
RQO\LOOXVWUDWLYHQRWH[KDXVWLYH
6RXUFHV)URP)+&)&')3+&DQG%'3'
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7DEOH7KH7KHRU\RI3RVW&DSLWDOLVP,
%\*URXS
([6SLULWXDO&RPPXQDOLQWKH7UDQV)HPLQLQH&DOOLQJ
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
0RUH&RPPXQDO7KDQ,QGLYLGXDO
6KDULQJOHDUQLQJIURPRWKHUVDVGLIIHUHQWLGHDVPXWXDOO\HQULFK
&RRSHUDWLYHHQFRXUDJLQJDVHQVHRIVKDUHGOHDGHUVKLSDQGWHDPZRUN
0RUH,QIRUPDO/HJDOLVWLF7KDQ)RUPDO/HJDOLVWLF
6SHFLILFOLVWHQLQJPRUHIURPWKHKHDUWWKDQIURPWKHKHDGWRNQRZD
SHUVRQDVDFRQFUHWHQRWDVDQDEVWUDFWXQLW
$IIHFWLYH WKLQNLQJ DQG DFWLQJ ZLWK RWKHUV RQ D PRUH DIIHFWLYH WRQH
%XVLQHVVFDQPL[ZLWKDQHPRWLRQDOWRXFK
$VFULSWLYHKLULQJRUILULQJFDQEHGRQHRQWKHEDVLVRIPHULWRUODFN
RILWEXWGHHSVROLGDULW\VLVWHUKRRGLVLPSRUWDQWWRR
3DUWLFXODULVWLFPDNLQJGHFLVLRQVRQWKHEDVLVRIFRVWEHQHILWDQDO\VLV
EXWDJLYHQJURXSUHODWLRQVKLSLVYLWDO
0RUH6SLULWXDO7KDQ6HFXODU
/RQJ7HUP /RRNLQJ VKDULQJ IRU D ORQJWHUP UHODWLRQVKLS HJ ORYH
IULHQGVKLSQRWMXVWIRUDVKRUWWHUPJDLQ
/RYLQJ&DULQJ VKRZLQJ FRPSDVVLRQ IRU WKH VXIIHULQJV RI RWKHUV
ZLWKRXWTXLFNO\EODPLQJDQGSUHMXGJLQJ
5HVSHFWIXOVKRZLQJDFFHSWDQFHDERXWRWKHUVIHHOLQJVDQGWKRXJKWV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
1RWHV7KHFDWHJRULHVDQGH[DPSOHVDUHVROHO\LOOXVWUDWLYHVLQFHWKHUHFDQ
EHGLIIHUHQWYHUVLRQVDQGWKHFRPSDULVRQLVUHODWLYHQRWDEVROXWHQRUDUH
WKH\ PXWXDOO\ H[FOXVLYH $V JHQHUDOLWLHV WKH\ DOORZ H[FHSWLRQV 7KH
VSHFLILFIRUPVRIWKHWUDQVIHPLQLQHYHUVLRQQHHGWREHIXUWKHUGHYHORSHG
LQIXWXUHDIWHUSRVWPRGHUQKLVWRU\DVWKH\ZLOOEHGLIIHUHQWIURPWKHRQHV
ZH QRZ NQRZ VLQFH WKH SUHIL[ WUDQV KHUH PHDQV JRLQJ EH\RQG RU
GHFRQVWUXFWLQJWKHIHPLQLQHYDOXHV ZKLOH XVLQJWKHPDVWKHLQVSLUDWLRQDO
SRLQWDWWKHEHJLQQLQJ
6RXUFH)URP&KRI)&'5HIHUWRWH[WIRUPRUHLQIRDQGUHIHUHQFHV
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
7DEOH7KH7KHRU\RI3RVW&DSLWDOLVP,
%\1DWLRQ6WDWH
([6SLULWXDO&RPPXQDOLQWKH7UDQV6LQLWLF&DOOLQJ
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
0RUH&RPPXQDO7KDQ,QGLYLGXDOLVWLF
&HQWUDOL]HGEHLQJPRUHWRSGRZQLQPDQDJHPHQW
&ROOHFWLYHHQFRXUDJLQJPRUHJURXSFRRSHUDWLRQ
6RFLDOLQYHVWLQJLQWUXVWDQGFRQQHFWLRQ
0RUH,QIRUPDO/HJDOLVWLF7KDQ)RUPDO/HJDOLVWLF
6SHFLILFNQRZLQJPRUHRIWKRVHUHODWHGRUFRQQHFWHG
$IIHFWLYHEHKDYLQJLQDSDWHUQDOLVWLFKLHUDUFKLFDOZD\
$VFULSWLYHIDYRULQJIDPLO\PHPEHUVDQGWKRVHUHODWHG
3DUWLFXODULVWLFEXLOGLQJFRQQHFWLRQJXDQ[LDVLPSHUDWLYH
0RUH6SLULWXDO7KDQ6HFXODU
([SDQVLRQLVW GLIIXVLQJ FLYLOL]DWLRQDO YDOXHV HJ WKH VXSHULRULW\
FRPSOH[RIFLYLOL]DWLRQDOLVP
+ROLVWLFV\QWKHVL]LQJWKLQJVLQWRDSDQRUDPLFKRUL]RQ
+LVWRULFDOOHDUQLQJIURPWKHOHVVRQVRIWKHDQFLHQWSDVW
5HVSHFWIXOGHIHUHQWLDOWRHOGHUVDQGVXSHULRUV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
1RWHV7KHFDWHJRULHVDQGH[DPSOHVDUHVROHO\LOOXVWUDWLYHVLQFHWKHUHFDQ
EHGLIIHUHQWYHUVLRQVDQGWKHFRPSDULVRQLVUHODWLYHQRWDEVROXWHQRUDUH
WKH\ PXWXDOO\ H[FOXVLYH $V JHQHUDOLWLHV WKH\ DOORZ H[FHSWLRQV 7KH
VSHFLILFIRUPVRIWKHWUDQV6LQLWLFYHUVLRQQHHGWREHIXUWKHUGHYHORSHGLQ
IXWXUHDIWHUSRVWPRGHUQKLVWRU\DVWKH\ZLOOEHGLIIHUHQWIURPWKHRQHVZH
QRZ NQRZ VLQFH WKH SUHIL[ WUDQV KHUH PHDQV JRLQJ EH\RQG RU
GHFRQVWUXFWLQJ WKH 6LQLWLF YDOXHV ZKLOH XVLQJ WKHP DV WKH LQVSLUDWLRQDO
SRLQWDWWKHEHJLQQLQJ
6RXUFH)URP&KRI)&'5HIHUWRWH[WIRUPRUHLQIRDQGUHIHUHQFHV
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7DEOH7KH7KHRU\RI3RVW&DSLWDOLVP,
%\5HJLRQ
([6SLULWXDO&RPPXQDOLQWKH7UDQV,VODPLF&DOOLQJ
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
0RUH&RPPXQDO7KDQ,QGLYLGXDOLVWLF
&ROOHFWLYHEXLOGLQJWKHZHEVRIUHODWLRQVKLSVWRELQGLQGLYLGXDOV
6KDULQJFXOWLYDWLQJWKHHVWDEOLVKHGZLVGRPWKURXJKFRPPRQ
H[SHULHQFH
&RRSHUDWLYHVWUHVVLQJKDUPRQ\VROLGDULW\DQGFRPPRQDOLW\
0RUH,QIRUPDO/HJDOLVWLF7KDQ)RUPDO/HJDOLVWLF
6SHFLILF PDNLQJ HIIRUWV WR NQRZ ZHOO WKH SDUWLFLSDQWV IDPLO\ DQG
ODUJHUFRPPXQLW\LQPDWWHUVRIFRPPRQFRQFHUQ
$IIHFWLYH PL[LQJ ZRUN ZLWK ODQJXDJH DQG ULWXDO RQ H[SOLFLW UHOLJLRXV
,VODPLFLGHDOVWH[WVVWRULHVDQGH[DPSOHV
$VFULSWLYH SULYLOHJLQJ ORFDO KLVWRU\ DQG FXVWRP RQ UHODWLRQVKLSV
DPRQJNLQVKLSJURXSV
3DUWLFXODULVWLF SUHIHUULQJ DQ XQELDVHG LQVLGHU ZLWK RQJRLQJ
FRQQHFWLRQVWRDOOSDUWLHV
0RUH6SLULWXDO7KDQ6HFXODU
+LVWRULFDO OHDUQLQJ IURP WKH OHVVRQV RI WKH SDVW DV D VRXUFH RI
VWDELOLW\DQGJXLGDQFH
'HIHUHQWLDO VKRZLQJ UHVSHFW IRU DJH H[SHULHQFH VWDWXV DQG
OHDGHUVKLSLQFRPPXQDODIIDLUV
+RQRUDEOHHPSKDVL]LQJIDFHGLJQLW\SUHVWLJHDQGIDLUQHVV
&RPSDVVLRQDWHJLYLQJPHUF\DQGFKDULW\=DKDKWRRWKHUV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
1RWHV7KHFDWHJRULHVDQGH[DPSOHVDUHVROHO\LOOXVWUDWLYHQRWH[KDXVWLYH
DQG WKH FRPSDULVRQ LV UHODWLYH QRW DEVROXWH QRU DUH WKH\ PXWXDOO\
H[FOXVLYH$VJHQHUDOLWLHVWKH\DOORZH[FHSWLRQV7KHVSHFLILFIRUPVRIWKH
WUDQV,VODPLF YHUVLRQ QHHG WR EH IXUWKHU GHYHORSHG LQ IXWXUH DIWHU
SRVWPRGHUQKLVWRU\DVWKH\ZLOOEHGLIIHUHQWIURPWKHRQHVZHQRZNQRZ
VLQFH WKH SUHIL[ WUDQV KHUH PHDQV JRLQJ EH\RQG RU GHFRQVWUXFWLQJ WKH
,VODPLF YDOXHV ZKLOH XVLQJ WKHP DV WKH LQVSLUDWLRQDO SRLQW DW WKH
EHJLQQLQJ
6RXUFHV)URP&KRI)&'5HIHUWRWH[WIRUPRUHLQIRDQGUHIHUHQFHV
HVSHFLDOO\ IURP WKH ZRUNV E\ *HRUJH ,UDQL DQG & 0XUSK\
6HSWHPEHU
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
7DEOH7KH7KHRU\RI3RVW&DSLWDOLVP,
%\8QLYHUVH
([6SLULWXDO&RPPXQDOLQWKH7UDQV2XWHUVSDFH&DOOLQJ
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
0RUH&RPPXQDO7KDQ,QGLYLGXDO
&RRSHUDWLYHUHTXLULQJWHDPZRUNLQVPDOOVSDFHKDELWDWV
6KDULQJOHDUQLQJIURPDQGHQMR\LQJEHLQJZLWKHDFKRWKHULQDVPDOO
JURXSLQRXWHUVSDFH
0RUH,QIRUPDO/HJDOLVWLF7KDQ)RUPDO/HJDOLVWLF
6SHFLILF NQRZLQJ PRUH DERXW HDFK RWKHU WR IDFLOLWDWH OLYLQJ DQG
ZRUNLQJWRJHWKHULQVSDFHERWKDVIHOORZDVWURQDXWVDQGVSDFHPDWHV
$IIHFWLYH EHLQJ IULHQGO\ DQG VRFLDO WR HDFK RWKHU DV YLWDO WR ZRUNLQJ
DQGOLYLQJLQVPDOOVSDFHTXDUWHUV
$VFULSWLYH QXUWXULQJ FRPDUDGHULH DPRQJ IHOORZ DVWURQDXWV DV LI WKH\
DUHIDPLO\PHPEHUVRYHUWLPH
3DUWLFXODULVWLFEXLOGLQJZRUNUHODWLRQVKLSZLWKHQGXULQJPHPRU\LQD
VSDFHPLVVLRQ
0RUH6SLULWXDO7KDQ6HFXODU
/RQJ7HUP ORRNLQJ EH\RQG VHOILVK PDWHULDOLVWLF FRQFHUQV LQ D
SUHFDULRXVVSDFHHQYLURQPHQWZLWKSRWHQWLDOOLIHRUGHDWK
/RYLQJ&DULQJ FXOWLYDWLQJ GHHS ERQGDJH IRU WKH VXFFHVV RI D ORQJ
WHUPVSDFHPLVVLRQ
7UDQVFHQGHQWVHDUFKLQJIRUOLIHPHDQLQJLQRXWHUVSDFH
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
1RWHV 7KH FDOOLQJ DQG H[DPSOHV LQ HDFK FDWHJRU\ DUH VROHO\ LOOXVWUDWLYH
QRW H[KDXVWLYH VLQFH WKHUH ZLOO EH PDQ\ GLIIHUHQW RXWHUVSDFH YDOXH
LGHDOV LQ WKH GLVWDQW IXWXUH RI VSDFH FRORQL]DWLRQ 7KH FRPSDULVRQ LV DOVR
UHODWLYH QRW DEVROXWH QRU DUH WKH\ PXWXDOO\ H[FOXVLYH $V JHQHUDOLWLHV
WKH\DOORZH[FHSWLRQV$QGWKHVSHFLILFIRUPVRIWUDQVRXWHUVSDFHFDOOLQJ
QHHG WR EH IXUWKHU GHYHORSHG LQ IXWXUH DIWHUSRVWPRGHUQ KLVWRU\ DV WKH\
ZLOO EH GLIIHUHQW IURP WKH RQHV ZH QRZ NQRZ VLQFH WKH SUHIL[ WUDQV
KHUHPHDQVJRLQJEH\RQGRUGHFRQVWUXFWLQJWKHFXUUHQWRXWHUVSDFHYDOXHV
ZKLOHXVLQJWKHPDVWKHLQVSLUDWLRQDOSRLQWDWWKHEHJLQQLQJ7KHSRLQWKHUH
LVWRVROHO\JLYHDQH[WUHPHO\URXJKSLFWXUHRIDVPDOOSDUWRIWKHZRUOGWR
FRPHWKDWZHVWLOOGRQRWNQRZPXFKDERXW
6RXUFH)URP&KRI)&'5HIHUWRWH[WIRUPRUHLQIRDQGUHIHUHQFHV
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7DEOH7KH7KHRU\RI3RVW&DSLWDOLVP,,
6SLULWXDO,QGLYLGXDOLVWLFLQWKH3RVW+XPDQ(OLWLVW&DOOLQJ
3DUW,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
0RUH,QGLYLGXDOLVWLF7KDQ&RPPXQDO
6HWWLQJ XS UDQN GLVWLQFWLRQV DPRQJ XQHTXDOV HJ EHWZHHQ LQIHULRU
KXPDQV DQG VXSHULRU SRVWKXPDQV RU ODWHU DPRQJ LQIHULRU SRVW
KXPDQVDQGVXSHULRURQHVUHODWLYHO\VSHDNLQJ
<HDUQLQJ IRU EHLQJ QRW RQO\ GLVWLQJXLVKHG IURP XQHTXDOV EXW DOVR
WKHILUVWDPRQJHTXDOVWKHEHVWRIWKHYHU\EHVW
5HFRJQL]LQJ WKH FRQVWUDLQWV RI HTXDOLW\LQHTXDOLW\ GLDOHFWLFV RU
H[LVWHQWLDOGLDOHFWLFVLQJHQHUDO
0RUH6SLULWXDO7KDQ6HFXODU
6RXOVHDUFKLQJ IRUDKLJKVSLULWXDOFXOWXUHQRWWKHWUDVK\RQHIRUWKH
PDVVHV0DVVFXOWXUHLVDGLUW\MRNHIRUWKHP
([SORULQJ GLIIHUHQW VSKHUHV RI QRQKXPDQ FRQVFLRXVQHVV LQ WKH
FRVPRVVRPHWKLQJYDVWO\VXSHULRUWKDQWKHKXPDQRQH
5HFRJQL]LQJ WKH FRQVWUDLQWV RI IUHHGRPXQIUHHGRP GLDOHFWLFV RU
H[LVWHQWLDOGLDOHFWLFVLQJHQHUDO
4XDOLILFDWLRQV
$OWKRXJK SRVWKXPDQ HOLWLVW SRVWGHPRFUDF\ LV FRPSDUDEOH WR SRVW
KXPDQ HOLWLVW SRVWFDSLWDOLVP LQ VRPH UHVSHFWV WKH IRUPHU GRHV QRW
QHFHVVDULO\ LPSO\ WKH ODWWHU SRVWKXPDQ HOLWLVW SRVWFDSLWDOLVP MXVW
DV GHPRFUDF\ GRHV QRW KDYH WR HQWDLO FDSLWDOLVP 7KH\ DUH WZR
GLIIHUHQWWKRXJKUHODWHGHQWLWLHV
%XWXSWRDFHUWDLQWKUHVKROGRILQFRUSRUDWLQJJRYHUQPHQWLQWHUYHQWLRQ
ZLWKDGYDQFHGLQIRV\VWHPVLQIXWXUHFLYLOL]DWLRQVIRUKLJKHUVSLULWXDO
FRQFHUQVDWWKHH[SHQVHRIWKHIUHHPDUNHWDQGPDWHULDOLVWSXUVXLWWKH
FDSLWDOLVWLGHDOZLOOEHRYHUFRPH
7KH RYHUFRPH ZLOO QRW EH )DVFLVW RU IHXGDOLVWLF EXW SRVWFDSLWDOLVW
VXEMHFWWRWKHFRQVWUDLQWVRIH[LVWHQWLDOGLDOHFWLFV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
FRQWLQXHGRQQH[WSDJH
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
7DEOH7KH7KHRU\RI3RVW&DSLWDOLVP,,
6SLULWXDO,QGLYLGXDOLVWLFLQWKH3RVW+XPDQ(OLWLVW&DOOLQJ
3DUW,,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
1RWHV 7KH FDOOLQJ DQG H[DPSOHV LQ HDFK FDWHJRU\ DUH VROHO\ LOOXVWUDWLYH
QRW H[KDXVWLYH 7KH FRPSDULVRQ LV DOVR UHODWLYH QRW DEVROXWH QRU DUH
WKH\ PXWXDOO\ H[FOXVLYH $V JHQHUDOLWLHV WKH\ DOORZ H[FHSWLRQV $QG WKH
VSHFLILF IRUPV RI SRVWKXPDQ HOLWLVW SRVWFDSLWDOLVP QHHG WR EH IXUWKHU
GHYHORSHG LQ IXWXUH DIWHUSRVWPRGHUQ KLVWRU\ DV WKH\ ZLOO EH GLIIHUHQW
IURPWKHRQHVZHQRZNQRZZKLOHXVLQJWKHPDVWKHLQVSLUDWLRQDOSRLQWDW
WKHEHJLQQLQJ7KHSRLQWKHUHLVWRVROHO\JLYHDQH[WUHPHO\URXJKSLFWXUH
RIDVPDOOSDUWRIWKHZRUOGWRFRPHWKDWZHVWLOOGRQRWNQRZPXFKDERXW
6RXUFHV)URP&KRI)&'DQGDOVR)3+&%'3'DQG%&3&5HIHU
WRWKHWH[WIRUPRUHLQIRDQGUHIHUHQFHV
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7DEOH&DSLWDOLVP1RQ&DSLWDOLVPDQG3RVW&DSLWDOLVP
3DUW,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
&DSLWDOLVP
7KHRUHWLFDO&RQVWUXFWV
$OORFDWLRQRIVFDUFHUHVRXUFHVDPRQJDOWHUQDWLYHZDQWVODUJHO\E\
IUHHPDUNHWIRUFRPSHWLWLRQZKRVHFKDUDFWHULVWLFVLQLWVLGHDOIRUP
LQFOXGH IRU LQVWDQFH QR EDUULHU WR HQWU\ RU H[LW KRPRJHQHLW\
SHUIHFWLQIRUPDWLRQDODUJHQXPEHURIEX\HUVVHOOHUVDQG SHUIHFW
IDFWRUPRELOLW\
0RUHIRUPDOOHJDOLVWLFWKDQLQIRUPDOOHJDOLVWLFPRUHLQGLYLGXDOLVWLF
WKDQFRPPXQDODQGPRUHPDWHULDOVHFXODUWKDQVSLULWXDO
(LWKHUPLQLPDOJRYHUQPHQWRUUHODWLYHO\DFWLYHJRYHUQPHQW
7\SHV
2QO\'LIIHUHQWYHUVLRQVRIPDUNHWFDSLWDOLVPHJWKH86
2QO\'LIIHUHQWYHUVLRQVRIZHOIDUHFDSLWDOLVPHJ6ZHGHQ
1RQ&DSLWDOLVP
7KHRUHWLFDO&RQVWUXFWV
$OORFDWLRQRIVFDUFHUHVRXUFHVDPRQJDOWHUQDWLYHZDQWVPDLQO\E\
SROLWLFDO DXWKRULW\ IRU SROLFLHV ZKLFK FDQ EH UHJXODWLYH
UHGLVWULEXWLYHV\PEROLFDQGSDUWLFLSDWRU\
0RUHLQIRUPDOOHJDOLVWLFWKDQIRUPDOOHJDOLVWLF
(LWKHUPRUHLQGLYLGXDOLVWLFIRUWKHHOLWHVRIWHQWKRXJKQRW
DOZD\V IRU PDWHULDO VHFXODU FRQFHUQV RU PRUH FRPPXQDO
IRU WKH PDVVHV RIWHQ WKRXJK QRW DOZD\V IRU VSLULWXDO
FRQFHUQV
7\SHV
2QO\'LIIHUHQWYHUVLRQVRQWKH5LJKWHJ)DVFLVWFRUSRUDWH
VWDWH HFRQRP\ IRU WKH JORU\ RI WKH QHZ 5RPH PHGLHYDO
ORUGYDVVDOVHUI HFRQRP\ IRU WKH SRZHU RI WKH IHXGDOLVWLF
RUGHU
2QO\'LIIHUHQWYHUVLRQVRQWKH/HIWHJ6RYLHWFRPPDQG
HFRQRP\IRUWKHFUHDWLRQRIWKH1HZ6RFLDOLVW0DQ
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
FRQWLQXHGRQQH[WSDJH
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
7DEOH&DSLWDOLVP1RQ&DSLWDOLVPDQG3RVW&DSLWDOLVP
3DUW,,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
3RVW&DSLWDOLVP
7KHRUHWLFDO&RQVWUXFWV
$OORFDWLRQRIVFDUFHUHVRXUFHVDPRQJDOWHUQDWLYHZDQWVODUJHO\E\
SROLWLFDODXWKRULW\ZLWKDGYDQFHGLQIRV\VWHPVLQIXWXUH
FLYLOL]DWLRQVVXEMHFWWRH[LVWHQWLDOGLDOHFWLFV,QGHJUHHRI
DOORFDWLQJE\DXWKRULW\SRVWFDSLWDOLVPLVPRUHWKDQFDSLWDOLVP
EXWOHVVWKDQQRQFDSLWDOLVP
0RUHVSLULWXDOWKDQVHFXODUPDWHULDO
(LWKHUPRUHLQGLYLGXDOLVWLFRUPRUHFRPPXQDO
/LNHFDSLWDOLVPDQGQRQFDSLWDOLVPSRVWFDSLWDOLVPLVDOVRVXEMHFWWR
WKH IUHHGRPXQIUHHGRP DQG HTXDOLW\LQHTXDOLW\ GLDOHFWLFV RU
H[LVWHQWLDO GLDOHFWLFV LQ JHQHUDO 7KHUH LV QR XWRSLD LQ WKH HQG
HYHQZHUHWKHUHRQHG\VWRSLDZRXOGH[LVWZLWKLQLW
8QOLNHFDSLWDOLVPDQGQRQFDSLWDOLVPSRVWFDSLWDOLVPPDNHVXVHRI
D GLIIHUHQW GHJUHH RI SROLWLFDO DXWKRULW\ ZLWK DGYDQFHG LQIR
V\VWHPV LQ IXWXUH FLYLOL]DWLRQV DQG VWULYHV IRU KLJKHUVSLULWXDO
FXOWXUHVHVSHFLDOO\LQWKHSRVWKXPDQDJHZKLOHDFNQRZOHGJLQJ
WKHFRQVWUDLQWVRIH[LVWHQWLDOGLDOHFWLFVDQGQRORQJHUYDOXLQJIUHH
PDUNHW DV LQ FDSLWDOLVP DQG HFRQRPLF FRQWURO DV LQ QRQ
FDSLWDOLVPDVVDFUHGYLUWXHV
7\SHV
2QO\'LIIHUHQWYHUVLRQVRISRVWKXPDQHOLWLVWYDOXHLGHDOV
2QO\'LIIHUHQWYHUVLRQVRIWUDQV6LQLWLFYDOXHLGHDOV
2QO\'LIIHUHQWYHUVLRQVRIWUDQVIHPLQLQHYDOXHLGHDOV
2QO\'LIIHUHQWYHUVLRQVRIWUDQV,VODPLFYDOXHLGHDOV
2QO\'LIIHUHQWYHUVLRQVRIWUDQVRXWHUVSDFHYDOXHLGHDOV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
FRQWLQXHGRQQH[WSDJH
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7DEOH&DSLWDOLVP1RQ&DSLWDOLVPDQG3RVW&DSLWDOLVP
3DUW,,,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
1RWHV 7KH FDOOLQJ DQG H[DPSOHV LQ HDFK FDWHJRU\ DUH VROHO\ LOOXVWUDWLYH
QRW H[KDXVWLYH 7KH FRPSDULVRQ LV DOVR UHODWLYH QRW DEVROXWH QRU DUH
WKH\ PXWXDOO\ H[FOXVLYH $V JHQHUDOLWLHV WKH\ DOORZ H[FHSWLRQV $QG WKH
VSHFLILFIRUPVRIHDFKFDOOLQJQHHGWREHIXUWKHUGHYHORSHGLQIXWXUHDIWHU
SRVWPRGHUQKLVWRU\DVWKH\ZLOOEHGLIIHUHQWIURPWKHRQHVZHQRZNQRZ
ZKLOHXVLQJWKHPDVWKHLQVSLUDWLRQDOSRLQWDWWKHEHJLQQLQJ7KHSRLQWKHUH
LVWRVROHO\JLYHDQH[WUHPHO\URXJKSLFWXUHRIDVPDOOSDUWRIWKHZRUOGWR
FRPHWKDWZHVWLOOGRQRWNQRZPXFKDERXW
6RXUFH )URP &K RI )&' 5HIHU WR WKH WH[W IRU PRUH LQIR DQG
UHIHUHQFHV
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
7DEOH0XOWLSOH&DXVHVRIWKH(PHUJHQFHRI3RVW&DSLWDOLVP
3DUW,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
$WWKH0LFUR3K\VLFDO/HYHO
([LQWHOOLJHQWOLIHZLWKRXWWKHKXPDQSK\VLFDOFKHPLFDOV\VWHP
([ PDVWHULQJ RI TXDQWXP PHFKDQLFV HOHFWURPDJQHWLVP DQG RWKHU
ILHOGV IRU WKH XQGHUVWDQGLQJ RI D EURDG UDQJH RI DQRPDORXV
H[SHULHQFHVDQGWKHDSSOLFDWLRQIRUDUWLILFLDOLQWHOOLJHQFHIRUVSLULWXDO
TXHVW
6RXUFHV&KRI)+&&KVRI)&'&KRI)3+&
$WWKH&KHPLFDO/HYHO
([VSDFHUDGLDWLRQDQGWR[LQV
6RXUFHV&KRI)+&&KVRI)&'
$WWKH%LR3V\FKRORJLFDO/HYHO
([H[RELRORJLFDOHYROXWLRQLQGHHSVSDFH
([JHQHWLFHQJLQHHULQJRIQHZEHLQJV
([OLPLWVRIKXPDQFRJQLWLRQ
([WKHULVHRIXQIROGLQJXQFRQVFLRXVQHVV
6RXUFHV&K &KVRI)&'&KRI)+&)3+8
$WWKH,QVWLWXWLRQDO/HYHO
([WKHIODZHGORJLFRIWKHIUHHPDUNHW
([WKHQHHGRIDSRVWDXWLVWLFHFRQRPLFV
6RXUFHV&KRI)&'
$WWKH2UJDQL]DWLRQDO/HYHO
([WKHGDUNVLGHVRIIRUPDOOHJDOLVWLFURXWLQHV
6RXUFHV&KRI)+&&KRI)&'&KRI)3+&
$WWKH6WUXFWXUDO/HYHO
([HYHUQHZIRUPVRILQHTXLWLHVDWKRPHDQGDEURDG
([WKHHPHUJHQFHRI&KLQDZRPHQDQG,VODPDVPDMRUDFWRUV
6RXUFHV&KVRI)+&&KV RI)&'&KVRI%'3'
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
FRQWLQXHGRQQH[WSDJH
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7DEOH0XOWLSOH&DXVHVRIWKH(PHUJHQFHRI3RVW&DSLWDOLVP
3DUW,,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
$WWKH&XOWXUDO/HYHO
([IUHHGRPXQIUHHGRPGLDOHFWLFV
([HTXDOLW\LQHTXDOLW\GLDOHFWLFV
6RXUFHV&KRI)+&&KV RI)&'&KRI)3+&&KRI
%'3'
$WWKH6\VWHPLF/HYHO
([VSDFHKDELWDWVLQ]HURJUDYLW\DQGFRORQL]DWLRQ
([XOWUDDGYDQFHGIXWXUHLQIRV\VWHPV
([TXDOLWDWLYHGHPRJUDSK\
6RXUFHV&KRI)+&&KV RI)&'
$WWKH&RVPRORJLFDO/HYHO
([WKHFRORQL]DWLRQRIPXOWLYHUVHV
([WKHDOWHUDWLRQRIVSDFHWLPHDQGWKHFUHDWLRQRIQHZPDWWHUHQHUJ\
([WKHH[SDQVLRQRIIORDWLQJFRQVFLRXVQHVV
([WKHVSUHDGRIK\SHUVSDWLDOFRQVFLRXVQHVV
6RXUFHV&KRI)+&&KV RI)&'&KRI)3+&)3+67
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
1RWHV 7KH H[DPSOHV LQ HDFK FDWHJRU\ DUH VROHO\ LOOXVWUDWLYH QRW
H[KDXVWLYH DQG VRPH RI WKH LWHPV FDQ EH UHFODVVLILHG VRPHZKHUH HOVH
1RU DUH WKH\ DOZD\V PXWXDOO\ H[FOXVLYH 6LQFH WKH\ DUH JHQHUDOLWLHV
H[FHSWLRQVDUHH[SHFWHG
6RXUFHV(VSHFLDOO\IURP)+&)&')3+&%&3&%'3')3+67DQG
)3+86HHDOVRRWKHUERRNVDQGP\SHUVSHFWLYHVRQFLYLOL]DWLRQDOKROLVP
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
7DEOH7KH7KHRUHWLFDO'HEDWHRQ&LYLOL]DWLRQ
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
7KH3URJUHVVLYH7KHRU\RI&LYLOL]DWLRQ
7KHVLV 7KH FLYLOL]LQJ SURFHVV LV JRRG DV RSSRVHG WR WKH
EDUEDUL]LQJSURFHVVDVVRPHWKLQJEDGUHODWLYHO\VSHDNLQJ
'LVFRXUVH (VSHFLDOO\ WKRXJK QRW H[FOXVLYHO\ LQ WKH (QOLJKWHQPHQW
HUDDQGDELWEHIRUH([DPSOH7KRPDV+REEHVLQWKDWWKHWULEHVLQ
SULPLWLYHVRFLHWLHVZHUHVDYDJHV
7KH5RPDQWLF7KHRU\RI%DUEDULW\
7KHVLV 7KH FLYLOL]LQJ SURFHVV LV EDG DV RSSRVHG WR WKH
EDUEDUL]LQJSURFHVVDVVRPHWKLQJJRRGUHODWLYHO\VSHDNLQJ
'LVFRXUVH (VSHFLDOO\ WKRXJK QRW H[FOXVLYHO\ LQ WKH &RXQWHU
(QOLJKWHQPHQW FLUFOH ([DPSOH -HDQ-DFTXHV 5RXVVHDXLQ WKDW
FLYLOL]DWLRQFRUUXSWVPHQDQGWKHVDYDJHVDUHLQIDFWQREOH
7KH0RGHUDWH7KHRU\RI&LYLOL]DWLRQ
7KHVLV7KHFLYLOL]LQJSURFHVVLVJRRGEXWWKHUHLVDSULFHWRSD\
HVSHFLDOO\LQV\VWHPDWLFFRPSXOVLYHVHOIFRQWURO
'LVFRXUVH(VSHFLDOO\WKRXJKQRWH[FOXVLYHO\LQVRPHODWHPRGHUQ
DQG SRVWPRGHUQ FLUFOHV ([DPSOH 1RUEHUW (OLDVLQ WKDW VRFLDO
PDQQHUV EHFRPH PRUH UHILQHG LQ WKH FLYLOL]LQJ SURFHVV EXW VHOI
FRQWURODOVREHFRPHVPRUHV\VWHPDWLF
7KH7KHRU\RI3RVW&LYLOL]DWLRQ
7KHVLV 7KH FLYLOL]LQJ SURFHVV LV DV HYLO DQG JRRG DV EDUEDULW\ DQG
HDFKFDQQRWH[LVWZLWKRXWWKHRWKHUWREHHYHQWXDOO\VXSHUVHGHGE\
SRVWFLYLOL]DWLRQXQWRWKHSRVWKXPDQDJH
'LVFRXUVH3URSRVHGE\3HWHU%DRIX6HHWKHUHVWRI%&,9IRUPRUH
DQDO\VLV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
6RXUFH)URP%&,9RQWKHWKHRUHWLFDOGHEDWH
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7DEOH1R)UHHGRP:LWKRXW8QIUHHGRP
LQWKH&LYLOL]LQJ3URFHVVHV
3DUW,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
7KH5DWLRQDOL]LQJ3URFHVVDWWKH/HYHORI&XOWXUH
LI IUHHU IURP WKH GRPLQDQFH RI XQUHDVRQ DV LQ EDUEDULVP LQ WKH
FLYLOL]LQJSURFHVVWKHQOHVVIUHHIURPWKHUDWLRQDOL]LQJSURFHVVEHLW
LQWKHIRUPRIWKHSULQFLSOHRIHLWKHUWUDQVFHQGHQFHRULPPDQHQFH
LI IUHHUIURPWKHSULQFLSOH RILPPDQHQFHLQ WKHUDWLRQDOL]LQJSURFHVV
WKHQ OHVV IUHH IURP WKH LQFOLQDWLRQ WR FRPPLW WHUURU LQ WKH QDPH RI
UHDVRQ DQG WKH UHODWLYH XQGHUGHYHORSPHQW RI QRQUHDVRQ HJ LQ
UHODWLRQWR\RJDDQGPHGLWDWLRQ
LI IUHHU IURP WKH SULQFLSOH RI WUDQVFHQGHQFH LQ WKH UDWLRQDOL]LQJ
SURFHVVWKHQOHVV IUHH IURPWKHUHODWLYH XQGHUGHYHORSPHQWRIUHDVRQ
HJ LQ UHODWLRQ WR V\VWHPDWLF PHWKRGRORJ\ DQG WKH RFFXUUHQFH RI
RSSUHVVLRQLQWKHQDPHRIQRQUHDVRQ
7KH3DFLI\LQJ3URFHVVDWWKH/HYHORI6RFLHW\
LIIUHHUIURPWKHGRPLQDQFHRISLOODJHDVLQVDYDJHU\LQWKHFLYLOL]LQJ
SURFHVVWKHQOHVVIUHHIURPWKHSDFLI\LQJSURFHVVEHLWLQWKHIRUPRI
H[WHUQDOFRQWURORUVHOIFRQWURO
LIIUHHUIURPVHOIFRQWUROLQWKHSDFLI\LQJSURFHVVWKHQOHVVIUHHIURP
WKH WHPSWDWLRQ RI H[SDQVLRQLVW RSSUHVVLRQ DQG UHEHOOLRXV PLQGVHW LQ
H[WHUQDOFRQWURO
LI IUHHU IURP H[WHUQDO FRQWURO LQ WKH SDFLI\LQJ SURFHVV WKHQ OHVV IUHH
IURPWKHJUXHVRPHSV\FKRORJLFDOVHOIWRUWXUHDQGFRQIRUPLVPLQVHOI
FRQWURO
7KH6WHZDUGL]LQJ3URFHVVDWWKH/HYHORI1DWXUH
LIIUHHUIURPWKHGRPLQDQFHRIQDWXUHDVLQWKHVWDWHRIQDWXUHLQWKH
FLYLOL]LQJSURFHVVWKHQOHVVIUHHIURPWKHVWHZDUGL]LQJSURFHVVEHLW
LQWKHIRUPRIWKHVWHZDUGVKLSRIFUHDWLRQRUWKHFRYHQDQWZLWKQDWXUH
LI IUHHUIURPWKH VWHZDUGVKLSRIFUHDWLRQLQWKHVWHZDUGL]LQJSURFHVV
WKHQ OHVV IUHH IURP PDWHULDO XQGHUGHYHORSPHQW UHODWLYHO\ VSHDNLQJ
DQGVSLULWXDOH[FOXVLRQLQWKHFRYHQDQWZLWKQDWXUH
LI IUHHU IURP WKH FRYHQDQW ZLWK QDWXUH LQ WKH VWHZDUGL]LQJ SURFHVV
WKHQOHVVIUHHIURPHFRORJLFDOGHJUDGDWLRQDQGVSLULWXDOGLVFRQQHFWLRQ
IURPQDWXUHLQWKHVWHZDUGVKLSRIFUHDWLRQ
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
FRQWLQXHGRQQH[WSDJH
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
7DEOH1R)UHHGRP:LWKRXW8QIUHHGRP
LQWKH&LYLOL]LQJ3URFHVVHV
3DUW,,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
7KH6XEOLPLQJ3URFHVVDWWKH/HYHORIWKH0LQG
LIIUHHUIURPWKHGRPLQDQFHRIVSRQWDQHLW\DVLQWKHZLOGVWDWHRIWKH
PLQG LQ WKH FLYLOL]LQJ SURFHVV WKHQ OHVV IUHH IURP WKH VXEOLPLQJ
SURFHVV EH LW LQ WKH IRUP RI F\FOLFDOFHQWULF VHOIUHILQHPHQW RU
OLQHDUFHQWULFVHOIGLVFLSOLQH
LI IUHHU IURP F\FOLFDOFHQWULF VHOIUHILQHPHQW LQ WKH VXEOLPLQJ
SURFHVV WKHQ OHVV IUHH IURP WKH OLQHDUFHQWULF VHOIUHJLPHQ DV D
IRUPRIQHXURVLV
LIIUHHUIURPOLQHDUFHQWULFVHOIGLVFLSOLQHLQWKHVXEOLPLQJSURFHVV
WKHQOHVVIUHHIURPWKHF\FOLFDOFHQWULFVHOIWRUWXUHHTXDOO\DVDIRUP
RIQHXURVLV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
1RWHV 7KH H[DPSOHV LQ HDFK FDWHJRU\ DUH VROHO\ LOOXVWUDWLYH QRW
H[KDXVWLYH DQG WKH FRPSDULVRQ LV UHODWLYH QRW DEVROXWH QRU DUH WKH\
QHFHVVDULO\ PXWXDOO\ H[FOXVLYH $QG VRPH FDQ EH HDVLO\ UHFODVVLILHG
HOVHZKHUH$VJHQHUDOLWLHVWKH\DOORZH[FHSWLRQV
6RXUFHV)URP%&,96HHDOVR)+&)&')3+&%'3'DQG%&3&
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7DEOH1R(TXDOLW\:LWKRXW,QHTXDOLW\LQWKH&LYLOL]LQJ3URFHVVHV
3DUW,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
7KH5DWLRQDOL]LQJ3URFHVVDWWKH/HYHORI&XOWXUH
LIPRUHHTXDOIRUWKHUROHRIUDWLRQDOL]DWLRQLQWKHUDWLRQDOL]LQJSURFHVV
RIFLYLOL]DWLRQDOPDNLQJWKHQOHVVHTXDOIRUWKDWRIP\WKLFL]DWLRQDV
LQEDUEDULVP
LI PRUH HTXDO IRU WKH SULQFLSOH RI WUDQVFHQGHQFH LQ OLQHDUFHQWULF
UDWLRQDOL]LQJSURFHVVWKHQOHVVHTXDOIRUWKHSULQFLSOHRILPPDQHQFH
LI PRUH HTXDO IRU WKH SULQFLSOH RI LPPDQHQFH LQ F\FOLFDOFHQWULF
UDWLRQDOL]LQJ SURFHVV WKHQ OHVV HTXDO IRU WKH SULQFLSOH RI
WUDQVFHQGHQFH
7KH3DFLI\LQJ3URFHVVDWWKH/HYHORI6RFLHW\
LIPRUHHTXDOIRUSDFLILFDWLRQLQFLYLOL]DWLRQDOPDNLQJWKHQOHVVHTXDO
IRUWKHLQVWLWXWLRQRISLOODJLQJDQGRWKHUVDVLQVDYDJHU\
LI PRUH HTXDO IRU H[WHUQDO FRQWURO UHODWLYHO\ VSHDNLQJ LQ SDFLI\LQJ
SURFHVVWKHQOHVVHTXDOIRUVHOIFRQWURO
LI PRUH HTXDO IRU VHOIFRQWURO UHODWLYHO\ VSHDNLQJ LQ SDFLI\LQJ
SURFHVVWKHQOHVVHTXDOIRUH[WHUQDOFRQWURO
7KH6WHZDUGL]LQJ3URFHVVDWWKH/HYHORI1DWXUH
LI PRUH HTXDO IRU VWHZDUGVKLS LQ WKH VWHZDUGL]LQJ SURFHVV RI
FLYLOL]DWLRQDO PDNLQJ WKHQ OHVV HTXDO IRU UHYHUHQW VXEPLVVLYH
H[LVWHQFHDVLQEDUEDULVP
LI PRUH HTXDO IRU WKH VWHZDUGVKLS RI FUHDWLRQ LQ OLQHDU FHQWULF
VWHZDUGL]LQJ SURFHVV WKHQ OHVV HTXDO IRU WKH F\FOLFDOFHQWULF
FRYHQDQWZLWKQDWXUHIRUKDUPRQLRXVFRH[LVWHQFH
LI PRUH HTXDO IRU WKH F\FOLFDOFHQWULF FRYHQDQW ZLWK QDWXUH LQ WKH
VWHZDUGL]LQJ SURFHVV WKHQ OHVV HTXDO IRU WKH OLQHDUFHQWULF
VWHZDUGVKLSRIQDWXUHIRUGRPLQDWLRQ
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
FRQWLQXHGRQQH[WSDJH
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
7DEOH1R(TXDOLW\:LWKRXW,QHTXDOLW\LQWKH&LYLOL]LQJ3URFHVVHV
3DUW,,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
7KH6XEOLPLQJ3URFHVVDWWKH/HYHORIWKH0LQG
LIPRUHHTXDOIRUWKHUROHRIUHDVRQLQWKHVXEOLPLQJSURFHVVWKHQOHVV
HTXDOIRUWKDWRIXQUHDVRQDVLQWKHQDWXUDOVWDWHRIZLOGQHVV
LI PRUH HTXDO IRU WKH SULPDF\ RI UHDVRQ LQ OLQHDUFHQWULF VXEOLPLQJ
SURFHVV WKHQ OHVV HTXDO IRU RWKHU IDFXOWLHV HJ LQWXLWLRQ H[LVWHQWLDO
IHHOLQJVDQGDQDORJRXVWKLQNLQJLQF\FOLFDOFHQWULFRQH
LI PRUH HTXDO IRU WKH H[HUFLVH RI RWKHU IDFXOWLHV HJ LQWXLWLRQ
H[LVWHQWLDO IHHOLQJV DQG DQDORJRXV WKLQNLQJ LQ F\FOLFDOFHQWULF
VXEOLPLQJ SURFHVV WKHQ OHVV HTXDO IRU WKH UROH RI UHDVRQ LQ OLQHDU
FHQWULFFRXQWHUSDUW
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
1RWHV 7KH H[DPSOHV LQ HDFK FDWHJRU\ DUH VROHO\ LOOXVWUDWLYH QRW
H[KDXVWLYH DQG WKH FRPSDULVRQ LV UHODWLYH QRW DEVROXWH QRU DUH WKH\
PXWXDOO\ H[FOXVLYH $QG VRPH FDQ EH HDVLO\ UHFODVVLILHG HOVHZKHUH $V
JHQHUDOLWLHVWKH\DOORZH[FHSWLRQV
6RXUFHV)URP%&,96HHDOVR)+&)&')3+&%'3'DQG%&3&
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7DEOH)LYH7KHVHVRQ3RVW&LYLOL]DWLRQ
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
3RVWFLYLOL]DWLRQ QR ORQJHU WUHDWV FLYLOL]DWLRQ DV JRRG DQG EDUEDULW\ DV
HYLO UHODWLYHO\ VSHDNLQJ QRU GRHV LW QRVWDOJLFDOO\ UHJDUG EDUEDULW\ DV
JRRGDQGFLYLOL]DWLRQDVHYLOUHODWLYHO\VSHDNLQJDJDLQ&LYLOL]DWLRQLVDV
HYLODQGJRRGDVEDUEDULW\
3RVWFLYLOL]DWLRQ DOVR QR ORQJHU DFFHSWV WKH GLFKRWRP\ EHWZHHQ
FLYLOL]DWLRQDQGEDUEDULW\&LYLOL]DWLRQFDQQRWH[LVWZLWKRXWEDUEDULW\,WLV
QRORQJHUQHFHVVDU\WRSUHVHUYHFLYLOL]DWLRQDQ\PRUHWKDQLWLVLPSHUDWLYH
WR GHVWUR\ EDUEDULW\ 7R JR EH\RQG FLYLOL]DWLRQ DQG EDUEDULW\ LV WR
DFNQRZOHGJHWKHFRH[LVWHQFHRIERWKDOWKRXJKWKHGHJUHHRIVFDOLQJRQH
RYHUWKHRYHUYDULHVIURPFDVHWRFDVHEXWLVQRWWREHH[WUHPHLQODUJHO\
IDYRULQJ RQH RYHU WKH RWKHU RQ DYHUDJH VXEMHFW WR WKH FRQVWUDLQWV RI
H[LVWHQWLDOGLDOHFWLFV
3RVWFLYLOL]DWLRQ LV WKXV VXEMHFW WR WKH FRQVWUDLQWV RI H[LVWHQWLDO
GLDOHFWLFV 7KHUH LV QR IUHHGRP ZLWKRXW XQIUHHGRP DQG QR HTXDOLW\
ZLWKRXWLQHTXDOLW\IRULQVWDQFH7KHUHZLOOEHQRXWRSLDHYHQVKRXOGWKHUH
EHRQHWKHUHZRXOGEHG\VWRSLDHPEHGGHGZLWKLQLW
3RVWFLYLOL]DWLRQ ZLOO HYHQWXDOO\ UHSODFH FLYLOL]DWLRQ DV D IRUP RI OLIH
VHWWOHPHQW WR EH GRPLQDWHG E\ SRVWFDSLWDOLVW DQG SRVWGHPRFUDWLF
OLIHIRUPV KHUH RQ HDUWK DQG LQ GHHS VSDFH EHVLGHV RWKHU DOLHQ OLIHIRUPV
WKDWZHKDYHQHYHUNQRZQXQWRWKHSRVWKXPDQDJHLQPXOWLYHUVHV7KRVH
IHZ SRVWKXPDQV ZKR NHHS FLYLOL]DWLRQ ZLOO OLYH LQ D SRVWKXPDQ
FLYLOL]DWLRQ ZKLOH WKH UHVW WKH PDMRULW\ ZKR FKRRVH SRVWFLYLOL]DWLRQ
ZLOO HYROYH WRZDUGV WKH VWDWH RI SRVWKXPDQ SRVWFLYLOL]DWLRQ 2QH
WKHUHIRUHVKRXOGQRWFRQIXVHSRVWKXPDQFLYLOL]DWLRQZLWKSRVWKXPDQ
SRVWFLYLOL]DWLRQDVWKHWZRDUHQRWWKHVDPH
3RVWFLYLOL]DWLRQ ZLOO FRQIURQW SV\FKRVLV DV D SULPDU\ SUREOHP LQ WKH
FXOWXUH RI YLUWXDOLW\ XQWR WKH SRVWKXPDQ DJH MXVW DV FLYLOL]DWLRQ KDV
QHXURVLVDVDSULPDU\RQHRILWVRZQDOWKRXJKERWKQHXURVLVDQGSV\FKRVLV
DUHPDMRUSUREOHPVLQERWK
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
1RWHV7KHFRPSDULVRQLQHDFKFDWHJRU\LVUHODWLYHQRWDEVROXWHQRUDUH
WKH\QHFHVVDULO\PXWXDOO\H[FOXVLYH$QGVRPHFDQEHHDVLO\UHFODVVLILHG
HOVHZKHUH$VJHQHUDOLWLHVWKH\DOORZH[FHSWLRQV
6RXUFHV)URP%&,96HHDOVR)+&)&')3+&%'3'DQG%&3&
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
7DEOH%DUEDULW\&LYLOL]DWLRQDQG3RVW&LYLOL]DWLRQ
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
7KH5DWLRQDOL]LQJ3URFHVVDWWKH/HYHORI&XOWXUH
%DUEDULW\
0RUHP\WKLFL]LQJWKDQUDWLRQDOL]LQJUHODWLYHO\VSHDNLQJ
&LYLOL]DWLRQ
0RUHUDWLRQDOL]LQJWKDQP\WKLFL]LQJUHODWLYHO\VSHDNLQJ
3RVW&LYLOL]DWLRQ
%H\RQGWKHGLFKRWRP\VXEMHFWWRH[LVWHQWLDOGLDOHFWLFV
7KH3DFLI\LQJ3URFHVVDWWKH/HYHORI6RFLHW\
%DUEDULW\
0RUHSLOODJLQJWKDQSDFLI\LQJUHODWLYHO\VSHDNLQJ
&LYLOL]DWLRQ
0RUHSDFLI\LQJWKDQSLOODJLQJUHODWLYHO\VSHDNLQJ
3RVW&LYLOL]DWLRQ
%H\RQGWKHGLFKRWRP\VXEMHFWWRH[LVWHQWLDOGLDOHFWLFV
7KH6WHZDUGL]LQJ3URFHVVDWWKH/HYHORI1DWXUH
%DUEDULW\
0RUHUHYHULQJWKDQVWHZDUGL]LQJUHODWLYHO\VSHDNLQJ
&LYLOL]DWLRQ
0RUHVWHZDUGL]LQJWKDQUHYHULQJUHODWLYHO\VSHDNLQJ
3RVW&LYLOL]DWLRQ
%H\RQGWKHGLFKRWRP\VXEMHFWWRH[LVWHQWLDOGLDOHFWLFV
7KH6XEOLPLQJ3URFHVVDWWKH/HYHORIWKH0LQG
%DUEDULW\
0RUHLPSXOVLQJWKDQVXEOLPLQJUHODWLYHO\VSHDNLQJ
&LYLOL]DWLRQ
0RUHVXEOLPLQJWKDQLPSXOVLQJUHODWLYHO\VSHDNLQJ
3RVW&LYLOL]DWLRQ
%H\RQGWKHGLFKRWRP\VXEMHFWWRH[LVWHQWLDOGLDOHFWLFV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
1RWHV7KHFRPSDULVRQLQHDFKFDWHJRU\LVUHODWLYHQRWDEVROXWHQRUDUH
WKH\QHFHVVDULO\PXWXDOO\H[FOXVLYH$QGVRPHFDQEHHDVLO\UHFODVVLILHG
HOVHZKHUH$VJHQHUDOLWLHVWKH\DOORZH[FHSWLRQV
6RXUFHV)URP%&,96HHDOVR)+&)&')3+&%'3'DQG%&3&
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7DEOH7\SHVRI6XSHU&LYLOL]DWLRQLQWKH&RVPRV
3DUW,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
7\SH,
DFLYLOL]DWLRQZKLFKJDLQVFRQWURORIDQGXVHVWKHWRWDOHQHUJ\RXWSXW
IDOOLQJRQLWVSODQHWIURPLWVVXQIRULQWHUVWHOODUFRPPXQLFDWLRQRU
LQ JHQHUDOVSDFHFRORQL]DWLRQ)RU1.DUGDVKHYZKRSURSRVHGWKH
ILUVWWKUHHW\SHVKXPDQFLYLOL]DWLRQLVFXUUHQWO\7\SH=HUR7\SH2
ZKLFKLVEHORZHYHQ7\SH,VLQFHLWVSUHVHQWHQHUJ\FRQVXPSWLRQIRU
DOO SXUSRVHV OHW DORQH IRU LQWHUVWHOODU FRPPXQLFDWLRQ LV VWLOO
WLPHVOHVV
7\SH,,
DFLYLOL]DWLRQZKLFKJDLQVFRQWURORIDQGXVHVGLUHFWO\WKHWRWDOHQHUJ\
RXWSXWRILWVVXQIRULQWHUVWHOODUFRPPXQLFDWLRQRULQJHQHUDOVSDFH
FRORQL]DWLRQ
7\SH,,,
DFLYLOL]DWLRQZKLFKJDLQVFRQWURORIDQGXVHVWKHWRWDOHQHUJ\RXWSXW
RI LWV JDOD[\ IRU LQWHUVWHOODU FRPPXQLFDWLRQ RU LQ JHQHUDO VSDFH
FRORQL]DWLRQ
7\SH,9
DFLYLOL]DWLRQZKLFKJDLQVFRQWURORIDQGXVHVWKHWRWDOHQHUJ\RXWSXW
RILWVFOXVWHURIJDOD[LHVIRULQWHUVWHOODUFRPPXQLFDWLRQRULQJHQHUDO
VSDFHFRORQL]DWLRQ
7\SH9
DFLYLOL]DWLRQZKLFKJDLQVFRQWURORIDQGXVHVWKHWRWDOHQHUJ\RXWSXW
RI LWV VXSHUFOXVWHU RI JDOD[LHV IRU LQWHUVWHOODU FRPPXQLFDWLRQ RU LQ
JHQHUDOVSDFHFRORQL]DWLRQ
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
FRQWLQXHGRQQH[WSDJH
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
7DEOH7\SHVRI6XSHU&LYLOL]DWLRQLQWKH&RVPRV
3DUW,,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
7\SHQ
6R FRQWLQXHV WKH VHULHV LQ ZKDW , FDOO WKH F\FOLFDO SURJUHVVLRQ RI
KHJHPRQ\LQWKHFRVPRVDQGEH\RQG
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
1RWHV 7KH 5XVVLDQ DVWURSK\VLFLVW 1LNRODL .DUGDVKHY SURSRVHG WKH ILUVW
WKUHH W\SHV RI VXSHU FLYLOL]DWLRQ LQ WHUPV RI WRWDO HQHUJ\ RXWSXW IRU
LQWHUVWHOODUFRPPXQLFDWLRQ&60,H[WHQGKLVDUJXPHQWIXUWKHUWR
SURSRVH 7\SH ,9 7\SH 9 7\SH 9, DQG 7\SHQ LQ WKH FRQWH[W RI P\
FODLP DERXW WKH F\FOLFDO SURJUHVVLRQ RI KHJHPRQ\ LQ WKH FRVPRV DQG
EH\RQG
6RXUFHV )URP 7DEOH RI )&' 6HH )+& )&' DQG )3+& IRU PRUH
LQIR
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7DEOH7KH&LYLOL]DWLRQDO3URMHFW
IURP3UH0RGHUQLW\WR$IWHU3RVWPRGHUQLW\
3DUW,
3UH0RGHUQ
0RGHUQ
3RVWPRGHUQ
0DLQ
QDUUDWLYHV
6DFUDOQHVV
&RXUWOLQHVV
9LWDOLVP
$QLPLVP
)UHHGRP
(TXDOLW\
)UDWHUQLW\
0XOWLSOLFLW\
+\EULGL]DWLRQ
0DLQ
LQVWLWXWLRQV
0RQDUFK\
$ULVWRFUDF\
)HXGDOLVP
+RO\RUGHU
3ULPLWLYLVP
$JULFXOWXUDO
&DSLWDOLVP
/LEHUDOLVP
6RFLDOLVP
1D]LVP
)DVFLVP
6HUYLFH
,QGXVWULDO
&DSLWDOLVP
/LEHUDOLVP
3RVWPRGHUQ
SROLWLFVRI
GLIIHUHQFH
,QIRUPDWLRQDO
$IWHU
3RVWPRGHUQ
1DNHG
FRQWLQJHQF\
&\FOLFDO
SURJUHV
VLRQRI
KHJHPRQ\
3RVW
&DSLWDOLVP
3RVW
'HPRFUDF\
2WKHUV
%LRORJLFDO
0DWHULDO
(QHUJ\
6SDFH
2WKHUV
0DLQ
WHFKQR
ORJLFDODQG
HFRQRPLF
UHYROXWLRQV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
FRQWLQXHGRQQH[WSDJH
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
7DEOH7KH&LYLOL]DWLRQDO3URMHFW
IURP3UH0RGHUQLW\WR$IWHU3RVWPRGHUQLW\
3DUW,,
3UH0RGHUQ 0RGHUQ
3RVWPRGHUQ
0DLQ
DJHQWV
0DOHV
8SSHU
VWUDWD
0LQLVWDWHV
0DOHV
8SSHU
VWUDWD
:KLWHV
(PSLUHV
0DLQ
LPSDFWV
/RFDO
,QWHU
QDWLRQDO
0DOHV
8SSHU
VWUDWD
:KLWHV
2WKHUV
6XSUDVWDWHV
,2V
*OREDO
0DLQ
7RZDUGV
RXWFRPHV PRGHUQWL\
5LVHRI
OLQHDU
F\FOLFDO
FHQWULF
FLYLOL]D
WLRQV
7RZDUGV
SRVW
PRGHUQLW\
'RPLQDQFH
RIOLQHDU
FHQWULF
FLYLOL]DWLRQ
7RZDUGV
DIWHUSRVW
PRGHUQWL\
/LQHDU
FHQWULF
FLYLOL]D
WLRQLQ
FULVLV
$IWHU
3RVWPRGHUQ
3RVW
KXPDQV
+XPDQV
2WKHUV
2XWHU
VSDFH
0XOWLYHUVH
7RZDUGV
KXPDQ
PD\EH
SRVW
KXPDQ
H[WLQFWLRQ
5LVHRI
SRVW
FLYLOL]D
WLRQ
HVSHFLDOO\LQ
SRVWKXPDQ
IRUPVRI
VSDFHWLPH
1RWHV 7KH H[DPSOHV LQ HDFK FDWHJRU\ DUH VROHO\ LOOXVWUDWLYH QRW
H[KDXVWLYH QRU QHFHVVDULO\ PXWXDOO\ H[FOXVLYH DQG WKH FRPSDULVRQ LV
UHODWLYHQRWDEVROXWH$VJHQHUDOLWLHVWKH\DOORZH[FHSWLRQV
6RXUFHV )URP 7DEOH RI )&'DQG DOVR IURP %&,9 RQ SRVW
FLYLOL]DWLRQDQG)3+67
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7DEOH&LYLOL]DWLRQDO+ROLVP
3DUW,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
$WWKH0LFUR3K\VLFDO7KHRUHWLFDO/HYHO
([ 0DVWHULQJ RI TXDQWXP PHFKDQLFV HOHFWURPDJQHWLVP DQG RWKHU
ILHOGV IRU WKH XQGHUVWDQGLQJ RI D EURDG UDQJH RI DQRPDORXV
H[SHULHQFHVDQGWKHDSSOLFDWLRQIRUDUWLILFLDOLQWHOOLJHQFH6HFRI
)3+&
$WWKH&KHPLFDO7KHRUHWLFDO/HYHO
([ 8QSUHFHGHQWHG H[SDQVLRQ RI DQG YLROHQFH WR WKH PLQG WKURXJK
HYHU QHZ IRUPV RI GUXJV DQG YLUWXDO WHFKQRORJLHV IRU WKDW PDWWHU
&KRI)&'
$WWKH%LRORJLFDO7KHRUHWLFDO/HYHO
([ +XPDQV DUH QRW ELRORJLFDOO\ HTXDO RQ WKH EDVLV RI UDFH JHQGHU
HWKQLFLW\ DJH DQG ZKDWQRW 6HF &K RI )&' %11 $QG
SRVWKXPDQVZLOOH[SHULHQFHWKHVDPHIDWHLQDQHYHQPRUHDPD]LQJ
ZD\
$WWKH3V\FKRORJLFDO7KHRUHWLFDO/HYHO
([ +XPDQ FRJQLWLYH LPSDUWLDOLW\ DQG HPRWLRQDO QHXWUDOLW\ DUH TXLWH
OLPLWHG6HFVRI)&'
([ 5LVH RI )ORDWLQJ &RQVFLRXVQHVV &K RI )&' &KV RI
)3+&DQG8QIROGLQJ8QFRQVFLRXVQHVV)3+8
$WWKH2UJDQL]DWLRQDO7KHRUHWLFDO/HYHO
([ $GPLQLVWUDWLYH FRORQL]DWLRQ RI GHHS VSDFH ZLWK OHVV OHJDO
IRUPDOLVPLQVRPHFRUQHUV&KVRI)&'
$WWKH,QVWLWXWLRQDO7KHRUHWLFDO/HYHO
([%RWKFDSLWDOLVPDQGGHPRFUDF\ZLOOQRWODVWWREHVXSHUVHGHGE\
GLIIHUHQW YHUVLRQV RI SRVWFDSLWDOLVP DQG SRVWGHPRFUDF\ LQ DIWHU
SRVWPRGHUQLW\&KRI)&'
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
FRQWLQXHGRQQH[WSDJH
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
7DEOH&LYLOL]DWLRQDO+ROLVP
3DUW,,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
$WWKH6WUXFWXUDO7KHRUHWLFDO/HYHO
([ 6RFLDO VWUDWLILFDWLRQ UHDSSHDUV LQ HYHU QHZ IRUPV DOVR ZLWK QHZ
FDXVHV DQG QHZ SOD\HUV LQ WKH F\FOLFDO SURJUHVVLRQ RI KHJHPRQ\
&KVRI)&'
([7KHZRUOGRIK\SHUHPSLUHVDQGWKHXQLRQRIWKHXQLRQV%:7
$WWKH6\VWHPLF7KHRUHWLFDO/HYHO
([ 2XWHUVSDFH H[SDQVLRQ ORFDO UHJLRQDO JOREDO VRODU
JDODFWLFFOXVWHU\PXOWLYHUVDO&KRI)&'
([ 'HPRJUDSKLF WUDQVLWLRQ KXPDQ H[WLQFWLRQ DQG WKH ULVH RI SRVW
KXPDQVHJF\ERUJVWKLQNLQJPDFKLQHVWKLQNLQJURERWVJHQHWLFDOO\
DOWHUHG VXSHULRU EHLQJV IORDWLQJ FRQVFLRXVQHVV K\SHUVSDWLDO
FRQVFLRXVQHVV&KRI)3+&&KRI)&' &KRI)+&
([ 1HZ WHFKQRORJLFDO IRUFHV LQ PDWHULDO VFLHQFHV HOHFWURQLF DQG
FRPPXQLFDWLRQVFLHQFHVHQHUJ\VFLHQFHVELRVFLHQFHVPDQXIDFWXULQJ
DQGHQJLQHHULQJVFLHQFHVDQGVSDFHVFLHQFHV&KRI)&' &K
RI)+&
([ 6\VWHPDWLF GRPLQDQFH WRZDUGV QDWXUH IRU VSDFH FRORQL]DWLRQ
&KVRI)&'&KV RI)+&
$WWKH&XOWXUDO7KHRUHWLFDO/HYHO
([7KHSRVWKXPDQWUDQVFHQGHQFHRIIUHHGRPDQGHTXDOLW\&KRI
)&'
([0HWKRGRORJLFDO+ROLVP&KRI)&'&KRI)3+&6HF
6HFRI%&3&
([7KH(YROXWLRQIURP%DUEDULW\WR3RVW&LYLOL]DWLRQ%&,9
$WWKH&RVPRORJLFDO7KHRUHWLFDO/HYHO
([0DVWHULQJRIGDUNPDWWHUDQGGDUNHQHUJ\DQGWKHH[SORUDWLRQRI
PXOWLYHUVHV&KRI)3+&&KRI)&' &KRI)+&
([$OWHUQDWLRQRIVSDFHWLPH)3+67
([7KHHPHUJHQFHRIK\SHUVSDWLDOFRQVFLRXVQHVV)3+&
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
FRQWLQXHGRQQH[WSDJH
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7DEOH&LYLOL]DWLRQDO+ROLVP
3DUW,,,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
$W2WKHU/HYHOV
([ +LVWRULFDO SUHPRGHUQLW\ PRGHUQLW\ SRVWPRGHUQLW\
DIWHUSRVWPRGHUQLW\KXPDQGLVWLQFWLRQDQGWKHULVHRISRVWKXPDQV
LQFOXGLQJ IORDWLQJ FRQVFLRXVQHVV K\SHUVSDWLDO FRQVFLRXVQHVV DQG
XQIROGLQJ XQFRQVFLRXVQHVV &K RI )+& &K RI )&' )3+&
)3+8
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
1RWHV7KHVHH[DPSOHVDUHVROHO\LOOXVWUDWLYHQRWH[KDXVWLYHDQGVRPHRI
WKH LWHPV FDQ EH UHFODVVLILHG VRPHZKHUH HOVH 1RU DUH WKH\ DOZD\V
PXWXDOO\ H[FOXVLYH 6LQFH WKH\ DUH JHQHUDOLWLHV H[FHSWLRQV DUH H[SHFWHG
$QGWKHFRPSDULVRQLVUHODWLYHQRWDEVROXWH
6RXUFHV)URP7DEOHRI)3+&ZLWKGHWDLOVIURP)+&)&'DQGWKH
UHVWRIP\ERRNV1RWHYHU\DVSHFWLQHDFKFDWHJRU\DVGLVFXVVHGLQDOOP\
ERRNVDUHSUHVHQWHGKHUHVLQFHWKHUHDUHWRRPDQ\LVVXHV)RUPRUHLQIR
DOVRFRQVXOWWKHWDEOHRQWKHRULHVRQFLYLOL]DWLRQDO KROLVPDQGRIFRXUVH
WKHERRNVWKHPVHOYHV
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
7DEOH7KHRULHVRQ&LYLOL]DWLRQDO+ROLVP
3DUW,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
,7KHRULHVLQ5HODWLRQWR1DWXUH
$WWKH&KHPLFDO7KHRUHWLFDO/HYHO
&UHDWLRQDO7KHRU\RI&KHPLVWU\3HWHU%DRIX
)3+&+(0
$WWKH0DFUR3K\VLFDO&RVPRORJLFDO7KHRUHWLFDO/HYHO
5HVHWWOHPHQW7KHRU\RI*HRORJ\3HWHU%DRIX
)3+*(2/
7KHRU\RI3RVW&RVPRORJ\3HWHU%DRIX
%&26
7KHRU\RI+\SHU6SDWLDO&RQVFLRXVQHVV3HWHU%DRIX
&KRI)3+&)3+*
3DQRUDPLF7KHRU\RI7UDQVSRUWDWLRQ3HWHU%DRIX
)3+75$1
0XOWLODWHUDO7KHRU\RI$FRXVWLFV3HWHU%DRIX
)3+$
6HOHFWLYH7KHRU\RI*HRPHWU\3HWHU%DRIX
)3+*
3HUVSHFWLYDO7KHRU\RI6SDFH7LPH3HWHU%DRIX
)3+67
'LDOHFWLF7KHRU\RI&RPSOH[LW\3HWHU%DRIX
)&
7KHRU\RI)ORDWLQJ&RQVFLRXVQHVV3HWHU%DRIX
&KRI)&'&KV RI)3+&
7KHRU\RIWKH*HRSRZHURI1DWXUH&KRI$/'
UHILQHGDVWKH,QWHUYHQWLYH5HVKDSLQJ7KHRU\RI
*HRJUDSK\3HWHU%DRIX)3+*(2*
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
FRQWLQXHGRQQH[WSDJH
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7DEOH7KHRULHVRQ&LYLOL]DWLRQDO+ROLVP
3DUW,,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
,7KHRULHVLQ5HODWLRQWR1DWXUHFRQWG
$WWKH0LFUR3K\VLFDO7KHRUHWLFDO/HYHO
3DQRUDPLF7KHRU\RI7UDQVSRUWDWLRQ3HWHU%DRIX
)3+75$1
7UDQVFHQGHQW7KHRU\RI$UFKLWHFWXUH3HWHU%DRIX
)3+$5&+
0XOWLODWHUDO7KHRU\RI$FRXVWLFV3HWHU%DRIX
)3+$
6HOHFWLYH7KHRU\RI*HRPHWU\3HWHU%DRIX
)3+*
3HUVSHFWLYDO7KHRU\RI6SDFH7LPH3HWHU%DRIX
)3+67
'LDOHFWLF7KHRU\RI&RPSOH[LW\3HWHU%DRIX
)&
,,7KHRULHVLQ5HODWLRQWR&XOWXUH
$WWKH&XOWXUDO7KHRUHWLFDO/HYHO
,QTXLVLWLYH7KHRU\RI&XOLQDU\$UW3HWHU%DRIX
)3+&$
,QWHUDFWLYH7KHRU\RI6HPDQWLFV3HWHU%DRIX
)3+6(0
7UDQVGLFVLSOLQDU\7KHRU\RI3HUIRUPLQJ$UWV3HWHU%DRIX
)3+3$
&RPSDUDWLYH,PSDUWLDO7KHRU\RI/LWHUDWXUH3HWHU%DRIX
)3+/,7
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
FRQWLQXHGRQQH[WSDJH
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
7DEOH7KHRULHVRQ&LYLOL]DWLRQDO+ROLVP
3DUW,,,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
,,7KHRULHVLQ5HODWLRQWR&XOWXUHFRQWG
$WWKH&XOWXUDO7KHRUHWLFDO/HYHOFRQWG
0HGLDWLYH9DULDWLYH7KHRU\RI&KHVV3HWHU%DRIX
)3+&+(66
7KHRU\RI3RVW(WKLFV3HWHU%DRIX%(3(
'XDOLVWLF7KHRU\RI0DVV&XOWXUH3HWHU%DRIX
&KRI)+&
&RPSDUDWLYH7KHRU\RI5HOLJLRQDOVRNQRZQDVWKH
&RPSDUDWLYH6XEVWLWXWLYH7KHRU\RI5HOLJLRQ3HWHU%DRIX
&KRI)+&&KRI)&'&KRI)3+.)3+5
7KHRU\RI3RVW&LYLOL]DWLRQ3HWHU%DRIX
%&,9
7KHRU\RIWKH7ULQLW\RI0RGHUQLW\WR,WV$IWHU3RVWPRGHUQ
&RXQWHUSDUW3HWHU%DRIX
)+&&KRI)&'
7UDQVIRUPDWLYH7KHRU\RI$HVWKHWLF([SHULHQFH3HWHU%DRIX
)$(
7KHRU\RI3RVW&DSLWDOLVP3HWHU%DRIX
&KRI)&'&KV RI)3+&%&3&
7KHRU\RI3RVW'HPRFUDF\3HWHU%DRIX
&KRI)&'&KV RI)3+&%'3'
7KHRU\RI0HWKRGRORJLFDO+ROLVP3HWHU%DRIX
&KRI)&'&KRI)3+&6HF 6HFRI%&3&
)&)3+.HWF
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
FRQWLQXHGRQQH[WSDJH
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7DEOH7KHRULHVRQ&LYLOL]DWLRQDO+ROLVP
3DUW,9
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
,,7KHRULHVLQ5HODWLRQWR&XOWXUHFRQWG
$WWKH&XOWXUDO7KHRUHWLFDO/HYHOFRQWG
7KHRU\RI([LVWHQWLDO'LDOHFWLFV
RUWKH+ROLVWLF7KHRU\RI.QRZOHGJH3HWHU%DRIX
)+&)&')3+&%'3')&)$($/'),$)3+.HWF
&RQWUDVWLYH7KHRU\RI5DWLRQDOLW\3HWHU%DRIX
)3+0/
,,,7KHRULHVLQ5HODWLRQWRWKH0LQG
$WWKH%LRORJLFDO7KHRUHWLFDO/HYHO
7KHRU\RI&RQWUDVWLYH$GYDQWDJHV3HWHU%DRIX
6HF &KRI)&'%11
7KHRU\RI)ORDWLQJ&RQVFLRXVQHVV3HWHU%DRIX
&KRI)&'&KV RI)3+&
$WWKH3V\FKRORJLFDO7KHRUHWLFDO/HYHO
&RPSOH[7KHRU\RI'DWD$QDO\VLV3HWHU%DRIX
)3+'$
6XSHUVHVVLRQ7KHRU\RI&RPSXWLQJ3HWHU%DRIX
)3+&20
0HWDPRUSKLF7KHRU\RI+XPRU3HWHU%DRIX
)3++
&RQWUDULDQ7KHRU\RI3HUVRQDOLW\3HWHU%DRIX
)3+3
7KHRU\RI9LUWXDO6H[XDOLW\3HWHU%DRIX
)3+6
([SDQVLYH&RQWUDFWLYH7KHRU\RI0DUWLDO$UWV3HWHU%DRIX
)3+0$
0XOWLORJLFDO7KHRU\RI/HDUQLQJ3HWHU%DRIX
)3+/
&RPSUHKHQVLYH7KHRU\RI&UHDWLYH7KLQNLQJ3HWHU%DRIX
)3+&7
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
FRQWLQXHGRQQH[WSDJH
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
7DEOH7KHRULHVRQ&LYLOL]DWLRQDO+ROLVP
3DUW9
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
,,,7KHRULHVLQ5HODWLRQWRWKH0LQGFRQWG
$WWKH3V\FKRORJLFDO7KHRUHWLFDO/HYHOFRQWG
7KHRU\RI8QIROGLQJ8QFRQVFLRXVQHVVDOVRNQRZQDVWKH
8QIROGLQJ7KHRU\RI$QRPDORXV([SHULHQFH3HWHU%DRIX
)3+8
7KHRU\RI)ORDWLQJ&RQVFLRXVQHVV3HWHU%DRIX
&KRI)&'&KV RI)3+&
7KHRU\RI&RJQLWLYH3DUWLDOLW\3HWHU%DRIX
6HFRI)&'6HFRI%&3&
7KHRU\RI(PRWLRQDO1RQ1HXWUDOLW\3HWHU%DRIX
6HFRI)&'6HFRIRI%&3&
7KHRU\RI%HKDYLRUDO$OWHUDWLRQ3HWHU%DRIX
6HFRI%&3&
,97KHRULHVLQ5HODWLRQWR6RFLHW\
$WWKH2UJDQL]DWLRQDO7KHRUHWLFDO/HYHO
7KHRU\RI(&LYLF$OLHQDWLRQ3HWHU%DRIX
&KRI)&'
&RPELQDWLRQDO7KHRU\RI2UJDQL]DWLRQ3HWHU%DRIX
)3+2&KRI$/'
$WWKH,QVWLWXWLRQDO7KHRUHWLFDO/HYHO
5HIOHFWLYH7KHRU\RI&ULPLQDOLW\3HWHU%DRIX
)3+&5,0
'HWDFKHG7KHRU\RI*DPEOLQJ3HWHU%DRIX
)3+*$0
+HWHURGR[7KHRU\RI(GXFDWLRQ3HWHU%DRIX
)3+('8
5HFRQVWUXFWLRQ7KHRU\RI/DZ3HWHU%DRIX
)3+/$:
7KHRU\RI3RVW&DSLWDOLVP3HWHU%DRIX
&KRI)&'&KV RI)3+&%&3&
7KHRU\RI3RVW'HPRFUDF\3HWHU%DRIX
&KRI)&'&KV RI)3+&%'3'
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
FRQWLQXHGRQQH[WSDJH
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7DEOH7KHRULHVRQ&LYLOL]DWLRQDO+ROLVP
3DUW9,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
,97KHRULHVLQ5HODWLRQWR6RFLHW\FRQWG
$WWKH,QVWLWXWLRQDO7KHRUHWLFDO/HYHOFRQWG
'\QDPLF7KHRU\RI&RPSDUDWLYH3ROLWLFDO6\VWHPV
3HWHU%DRIX$/'
7KHRU\RIWKH&\FOLFDO3URJUHVVLRQRI(PSLUH%XLOGLQJ
3HWHU%DRIX%:7
$WWKH6\VWHPLF7KHRUHWLFDO/HYHO
7KHRU\RIWKH&\FOLFDO3URJUHVVLRQRI0LJUDWLRQ3HWHU%DRIX
)3+0,*
5HVHWWOHPHQW7KHRU\RI*HRORJ\3HWHU%DRIX
)3+*(2/
&RQWLQJHQW7KHRU\RI8UEDQ3ODQQLQJ3HWHU%DRIX
)3+83
7RWDOLVWLF7KHRU\RI&RPPXQLFDWLRQ3HWHU%DRIX
)3+00)&')+&
$PELYDOHQW7KHRU\RI7HFKQRORJ\3HWHU%DRIX
)3+()&')+&
0XOWLIDFHWHG7KHRU\RI:DUDQG3HDFH3HWHU%DRIX
&KRI)&'&KRI)3+.
7KHRU\RI3RVW+XPDQLW\3HWHU%DRIX
&KRI)+&&KV RI)&'&KV RI)3+&
DQGRWKHUERRNVRIPLQH
7KHRU\RIWKH&\FOLFDO3URJUHVVLRQRI6\VWHP,QWHJUDWLRQ
DQG)UDJPHQWDWLRQ3HWHU%DRIX&KVRI)&'
6\QWKHWLF7KHRU\RI,QIRUPDWLRQ$UFKLWHFWXUH3HWHU%DRIX
),$
$WWKH6WUXFWXUDO7KHRUHWLFDO/HYHO
7KHRU\RIWKH&\FOLFDO3URJUHVVLRQRI+HJHPRQ\
3HWHU%DRIX
&KVRI)&'&KV RI)3+&%'3'
7KHRU\RIWKH&\FOLFDO3URJUHVVLRQRI(PSLUH%XLOGLQJ
3HWHU%DRIX
%:7
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
FRQWLQXHGRQQH[WSDJH
&KDSWHU&RQFOXVLRQ7KH)XWXUHRI&XOLQDU\$UW
7DEOH7KHRULHVRQ&LYLOL]DWLRQDO+ROLVP
3DUW9,,
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
90HWD7KHRULHVLQ5HODWLRQWR7KHRULHV
$WWKH0HWKRGRORJLFDO0HWD7KHRUHWLFDO/HYHO
,QWHUDFWLYH7KHRU\RI6HPDQWLFV3HWHU%DRIX
)3+6(0
&RPSOH[7KHRU\RI'DWD$QDO\VLV3HWHU%DRIX
)3+'$
&ULWLFDO'LDOHFWLF7KHRU\RI)RUPDO6FLHQFH3HWHU%DRIX
)3+)6
7KHRU\RI0HWKRGRORJLFDO+ROLVP3HWHU%DRIX
&KRI)&'&KRI)3+&6HF 6HFRI%&3&)&
)3+.HWF
$WWKH2QWRORJLFDO0HWD7KHRUHWLFDO/HYHO
7KHRU\RI([LVWHQWLDO'LDOHFWLFV
RUWKH+ROLVWLF7KHRU\RI.QRZOHGJH3HWHU%DRIX
)+&)&')3+&%'3')&)$($/'),$)3+.HWF
&RQWUDVWLYH7KHRU\RI5DWLRQDOLW\3HWHU%DRIX
)3+0/
9,7KHRULHVLQ5HODWLRQWRWKH5HVW
$WWKH0HWD+LVWRULFDO/HYHO
0XOWLIROG7KHRU\RI+LVWRU\3HWHU%DRIX
)3++,67
$WWKH(PSLULFDO+LVWRULFDO/HYHO
7KHRU\RIWKH(YROXWLRQIURP3UH0RGHUQLW\WR$IWHU
3RVWPRGHUQLW\3HWHU%DRIX
)+&&KRI)&')3+&
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
1RWHV $OO WKHVH WKHRULHV DUH P\ FRQVWUXFWLRQV DV VRPH RI WKH PDLQ
FRQWULEXWLRQV RI P\ JUDQW SURMHFW RQ FLYLOL]DWLRQ DQG LWV IXWXUH 7KHVH
H[DPSOHV DUH VROHO\ LOOXVWUDWLYH QRW H[KDXVWLYH DQG VRPH RI WKH LWHPV
FDQ EH UHFODVVLILHG VRPHZKHUH HOVH 1RU DUH WKH\ DOZD\V PXWXDOO\
H[FOXVLYH6LQFHWKH\DUHJHQHUDOLWLHVH[FHSWLRQVDUHH[SHFWHG
6RXUFHV)URPP\SUHYLRXVERRNV
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
7DEOH7KUHH*UHDW)XWXUH7UDQVIRUPDWLRQVRI0LQG*DPHV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
9LUWXDO*DPHV
([RQOLQHFKHVV
([YLUWXDOH[SHULHQFH
1RYHO*DPHV
([QHZFKHVVYDULDQWV
([QHZFKHVVHQJLQHV
3RVW+XPDQ0LQG*DPHV
([WKHTXHVWIRUEURDGHUGHHSHUPHQWDOEHQHILWVRIFKHVVSOD\LQJ
([JDPHVGHVLJQHGIRUWKHHYROXWLRQRIWKHPLQGLQWRGLIIHUHQWERG\
OHVV IRUPV HJ IORDWLQJ FRQVFLRXVQHVV K\SHUVSDWLDO
FRQVFLRXVQHVVXQIROGLQJXQFRQVFLRXVQHVV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
1RWHV 7KH H[DPSOHV LQ WKH FDWHJRULHV DUH VROHO\ LOOXVWUDWLYH QRW
H[KDXVWLYH DQG WKH FRPSDULVRQ LV UHODWLYH QRW DEVROXWH QRU DUH WKH\
QHFHVVDULO\ PXWXDOO\ H[FOXVLYH $QG VRPH FDQ EH HDVLO\ UHFODVVLILHG
HOVHZKHUH$VJHQHUDOLWLHVWKH\DOORZH[FHSWLRQV
6RXUFHV )URP 6HF RI )3+&+(66 6HH WH[W IRU PRUH LQIR $OVR
FRQVXOW)&'IRUVWUDWHJ\DQGWDFWLFVLQZDUIDUHDQG)3+2IRUVWUDWHJ\DQG
WDFWLFVLQRUJDQL]DWLRQ
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
%,%/,2*5$3+<
BB
$GHQL\L $ $ * %ULQGOH\ - 3U\RU ' 5DOSK <RKLPELQH LQ WKH
7UHDWPHQW RI 2UJDVPLF '\VIXQFWLRQ $VLDQ - $QGURO
KWWSZZZQFELQOPQLKJRYSXEPHG!
$G]HUVHQ.+3-HVV.)UHLYRJHO,*HUKDUG *%DVWHUW5DZDQG
&RRNHG9HJHWDEOHV)UXLWV6HOHFWHG0LFURQXWULHQWVDQG%UHDVW&DQFHU5LVN
$ &DVH&RQWURO 6WXG\ LQ *HUPDQ\ 1XWULWLRQ DQG &DQFHU
KWWSZZZWDQGIRQOLQHFRPGRLDEV61&B!
$OOHVLQD 6 ' $ORQVR 0 3DVFXDO $ *HQHUDO 0RGHO IRU )RRG :HE
6WUXFWXUH 0D\ 6FLHQFH KWWSZZZVFLHQFHPDJ
RUJFRQWHQW!
$OSKDLODFRP $/3 )DVW )RRG $GV YV 5HDOLW\ 0D\
KWWSZZZDOSKDLODFRPDUWLFOHVIDLOXUHIDVWIRRGIDOVHDGYHUWLVLQJYVUHDOL
W\!
$PHULFDQ +HDUW $VVRFLDWLRQ $+$ $PHULFDQ +HDUW $VVRFLDWLRQ
'LHWDU\ *XLGHOLQHV 'LHWDU\ *XLGHOLQHV KWWSZZZFQSSXVGDJRY
3XEOLFDWLRQV'LHWDU\*XLGHOLQHV0HHWLQJ&RPPHQW$WWDFKPHQWV$+$
HSGI!
$QLPDO /HJDO DQG +LVWRULFDO &HQWHU $/+& +XPDQH 6ODXJKWHU RI
/LYHVWRFN 5HJXODWLRQV 1DWLRQDO &LWDWLRQ &)5
KWWSZZZDQLPDOODZLQIRDGPLQLVWUDWLYHDGXVFIUKWP!
$XVWUDOLDQIRRGDERXWFRP $86 ,FRQLF $XVWUDOLDQ 1HZ =HDODQG
)RRGV -XQH KWWSDXVWUDOLDQIRRGDERXWFRPRGGLVFRYHUDXVVLHQ]IRRG
WS,FRQLF)RRGVKWP!
%DRIX 3HWHU 7KH )XWXUH RI 3RVW+XPDQ 7UDQVSRUWDWLRQ $ 3UHIDFH WR D
1HZ 7KHRU\ RI 1HWZRUNV DQG 2SHUDWLRQV &DPEULGJH (QJODQG &DPEULGJH
6FKRODUV3XEOLVKLQJ
BBBBBD7KH)XWXUHRI3RVW+XPDQ0LJUDWLRQ$3UHIDFHWRD1HZ7KHRU\RI
6DPHQHVV2WKHUQHVVDQG,GHQWLW\&DPEULGJH(QJODQG&DPEULGJH6FKRODUV
3XEOLVKLQJ
BBBBBE7KH)XWXUHRI3RVW+XPDQ+LVWRU\$3UHIDFHWRD1HZ7KHRU\RI
8QLYHUVDOLW\ DQG 5HODWLYLW\ &DPEULGJH (QJODQG &DPEULGJH 6FKRODUV
3XEOLVKLQJ
BBBBBF7KH)XWXUHRI3RVW+XPDQ&ULPLQDOLW\$3UHIDFHWRD1HZ7KHRU\
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
RI +HURHV DQG 9LOODLQV &DPEULGJH (QJODQG &DPEULGJH ,QWHUQDWLRQDO
6FLHQFH3XEOLVKLQJ/WG
BBBBBG7KH)XWXUHRI3RVW+XPDQ$UFKLWHFWXUH$3UHIDFHWRD1HZ7KHRU\
RI)RUPDQG)XQFWLRQ&DPEULGJH(QJODQG&DPEULGJH,QWHUQDWLRQDO6FLHQFH
3XEOLVKLQJ/WG
BBBBBH7KH)XWXUHRI3RVW+XPDQ6HPDQWLFV$3UHIDFHWRD1HZ7KHRU\RI
,QWHUQDOLW\ DQG ([WHUQDOLW\ &DPEULGJH (QJODQG &DPEULGJH 6FKRODUV
3XEOLVKLQJ
BBBBBI 7KH )XWXUH RI 3RVW+XPDQ 3HUIRUPLQJ $UWV $ 3UHIDFH WR D 1HZ
7KHRU\ RI WKH %RG\ DQG LWV 3UHVHQFH &DPEULGJH (QJODQG &DPEULGJH
6FKRODUV3XEOLVKLQJ
BBBBB7KH)XWXUHRI3RVW+XPDQ*HRJUDSK\$3UHIDFHWRD1HZ7KHRU\RI
(QYLURQPHQWV DQG WKHLU ,QWHUDFWLRQV &DPEULGJH (QJODQG &DPEULGJH
,QWHUQDWLRQDO6FLHQFH3XEOLVKLQJ/WG
BBBBBD 7KH )XWXUH RI 3RVW+XPDQ 'DWD $QDO\VLV $ 3UHIDFH WR D 1HZ
7KHRU\ RI 4XDQWLDWLYH DQG 4XDOLWDWLYH 5HVHDUFK &DPEULGJH (QJODQG
&DPEULGJH,QWHUQDWLRQDO6FLHQFH3XEOLVKLQJ/WG
BBBBBE7KH)XWXUHRI3RVW+XPDQ&KHPLVWU\$3UHIDFHWRD1HZ7KHRU\
RI6XEVWDQFHV DQG WKHLU &KDQJHV &DPEULGJH (QJODQG &DPEULGJH 6FKRODUV
3XEOLVKLQJ
BBBBBF7KH)XWXUHRI3RVW+XPDQ/LWHUDWXUH$3UHIDFHWRD1HZ7KHRU\RI
)LFWLRQ DQG 1RQ)LFWLRQ &DPEULGJH (QJODQG &DPEULGJH ,QWHUQDWLRQDO
6FLHQFH3XEOLVKLQJ/WG
BBBBBG7KH)XWXUHRI3RVW+XPDQ&RPSXWLQJ$3UHIDFHWRD1HZ7KHRU\
RI +DUGZDUH 6RIWZDUH DQG WKH 0LQG &DPEULGJH (QJODQG &DPEULGJH
,QWHUQDWLRQDO6FLHQFH3XEOLVKLQJ/WG
BBBBBH7KH)XWXUHRI3RVW+XPDQ*DPEOLQJ$3UHIDFHWRD1HZ7KHRU\RI
5LVN DQG &DXWLRQ &DPEULGJH (QJODQG &DPEULGJH ,QWHUQDWLRQDO 6FLHQFH
3XEOLVKLQJ/WG
BBBBBI7KH)XWXUHRI3RVW+XPDQ$FRXVWLFV$3UHIDFHWRD1HZ7KHRU\RI
6RXQG DQG 6LOHQFH &DPEULGJH (QJODQG &DPEULGJH ,QWHUQDWLRQDO 6FLHQFH
3XEOLVKLQJ/WG
BBBBBJ 7KH )XWXUH RI 3RVW+XPDQ +XPRU$ 3UHIDFH WR D 1HZ 7KHRU\ RI
-RNLQJDQG/DXJKLQJ&DPEULGJH(QJODQG&DPEULGJH,QWHUQDWLRQDO6FLHQFH
3XEOLVKLQJ/WG
BBBBBK %H\RQG (WKLFV WR 3RVW(WKLFV $ 3UHIDFH WR D 1HZ 7KHRU\ RI
0RUDOLW\DQG,PPRUDOLW\&KDUORWWH1&,QIRUPDWLRQ$JH3XEOLVKLQJ
BBBBBL7KH)XWXUHRI3RVW+XPDQ(GXFDWLRQ$3UHIDFHWRD1HZ7KHRU\RI
7HDFKLQJ DQG /HDUQLQJ &DPEULGJH (QJODQG &DPEULGJH ,QWHUQDWLRQDO
6FLHQFH3XEOLVKLQJ/WG
%LEOLRJUDSK\
BBBBB7KH)XWXUHRI3RVW+XPDQ5HOLJLRQ$3UHIDFHWRD1HZ7KHRU\RI
6SLULWXDOLW\ &DPEULGJH (QJODQG &DPEULGJH ,QWHUQDWLRQDO 6FLHQFH
3XEOLVKLQJ/WG
BBBBBD 7KH )XWXUH RI 3RVW+XPDQ &KHVV $ 3UHIDFH WR D 1HZ 7KHRU\ RI
7DFWLFVDQG6WUDWHJ\&DPEULGJH(QJODQG&DPEULGJH,QWHUQDWLRQDO6FLHQFH
3XEOLVKLQJ/WG
BBBBBE7KH)XWXUHRI3RVW+XPDQ*HRORJ\$3UHIDFHWRD1HZ7KHRU\RI
6WDWLFVDQG'\QDPLFV&DPEULGJH(QJODQG&DPEULGJH,QWHUQDWLRQDO6FLHQFH
3XEOLVKLQJ/WG
BBBBBF%H\RQG&RVPRORJ\WR3RVW&RVPRORJ\$3UHIDFHWRD1HZ7KHRU\
RI 'LIIHUHQW :RUOGV &DPEULGJH (QJODQG &DPEULGJH ,QWHUQDWLRQDO 6FLHQFH
3XEOLVKLQJ/WG
BBBBBG7KH)XWXUHRI3RVW+XPDQ3HUVRQDOLW\$3UHIDFHWRD1HZ7KHRU\
RI1RUPDOLW\DQG$EQRUPDOLW\&DPEULGJH(QJODQG&DPEULGJH,QWHUQDWLRQDO
6FLHQFH3XEOLVKLQJ/WG
BBBBBH 7KH )XWXUH RI 3RVW+XPDQ :DU DQG 3HDFH $ 3UHIDFH WR D 1HZ
7KHRU\ RI $JJUHVVLRQ DQG 3DFLILFLW\ &DPEULGJH (QJODQG &DPEULGJH
6FKRODUV3XEOLVKLQJ
BBBBBI 7KH )XWXUH RI 3RVW+XPDQ )RUPDO 6FLHQFH $ 3UHIDFH WR D 1HZ
7KHRU\ RI $EVWUDFWLRQ DQG $SSOLFDWLRQ &DPEULGJH (QJODQG &DPEULGJH
6FKRODUV3XEOLVKLQJ
BBBBBJ 7KH )XWXUH RI 3RVW+XPDQ /DZ $ 3UHIDFH WR D 1HZ 7KHRU\ RI
1HFHVVLW\ &RQWLQJHQF\ DQG -XVWLFH &DPEULGJH (QJODQG &DPEULGJH
6FKRODUV3XEOLVKLQJ
BBBBBK7KH)XWXUHRI3RVW+XPDQ6H[XDOLW\$3UHIDFHWRD1HZ7KHRU\RI
WKH %RG\ DQG 6SLULW RI /RYH 0DNHUV &DPEULGJH (QJODQG &DPEULGJH
6FKRODUV3XEOLVKLQJ
BBBBB7KH)XWXUHRI3RVW+XPDQ0DUWLDO$UWV$3UHIDFHWRD1HZ7KHRU\
RIWKH%RG\DQG6SLULWRI:DUULRUV&DPEULGJH(QJODQG&DPEULGJH6FKRODUV
3XEOLVKLQJ
BBBBBD 7KH )XWXUH RI 3RVW+XPDQ 2UJDQL]DWLRQ $ 3UHIDFH WR D 1HZ
7KHRU\ RI &RPPXQLFDWLRQ 'HFLVLRQ0DNLQJ DQG /HDGHUVKLS &DPEULGJH
(QJODQG&DPEULGJH6FKRODUV3XEOLVKLQJ
BBBBBE7KH)XWXUHRI3RVW+XPDQ/DQJXDJH$3UHIDFHWRD1HZ7KHRU\RI
6WUXFWXUH&RQWH[WDQG/HDUQLQJ&DPEULGJH(QJODQG&DPEULGJH6FKRODUV
3XEOLVKLQJ
BBBBBF 7KH )XWXUH RI 3RVW+XPDQ 8UEDQ 3ODQQLQJ $ 3UHIDFH WR D 1HZ
7KHRU\RI'HQVLW\9RLGDQG6XVWDLQDELOLW\&DPEULGJH(QJODQG&DPEULGJH
6FKRODUV3XEOLVKLQJ
BBBBBG7KH)XWXUHRI3RVW+XPDQ*HRPHWU\$3UHIDFHWRD1HZ7KHRU\RI
,QILQLW\ 6\PPHWU\ DQG 'LPHQVLRQDOLW\ &DPEULGJH (QJODQG &DPEULGJH
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
6FKRODUV3XEOLVKLQJ
BBBBBH7KH)XWXUHRI3RVW+XPDQ&UHDWLYH7KLQNLQJ$3UHIDFHWRD1HZ
7KHRU\ RI ,QYHQWLRQ DQG ,QQRYDWLRQ &DPEULGJH (QJODQG &DPEULGJH
6FKRODUV3XEOLVKLQJ
BBBBBI7KH)XWXUHRI3RVW+XPDQ0DVV0HGLD$3UHIDFHWRD1HZ7KHRU\
RI&RPPXQLFDWLRQ&DPEULGJH(QJODQG&DPEULGJH6FKRODUV3XEOLVKLQJ
BBBBBJ7KH)XWXUHRI3RVW+XPDQ(QJLQHHULQJ$3UHIDFHWRD1HZ7KHRU\
RI7HFKQRORJ\&DPEULGJH(QJODQG&DPEULGJH6FKRODUV3XEOLVKLQJ
BBBBB7KH)XWXUHRI3RVW+XPDQ0DWKHPDWLFDO/RJLF$3UHIDFHWRD1HZ
7KHRU\RI5DWLRQDOLW\&DPEULGJH(QJODQG&DPEULGJH6FKRODUV3XEOLVKLQJ
BBBBBD7KH)XWXUHRI3RVW+XPDQ.QRZOHGJH$3UHIDFHWRD1HZ7KHRU\
RI0HWKRGRORJ\DQG2QWRORJ\2[IRUG8QLWHG.LQJGRP&KDQGRV3XEOLVKLQJ
2[IRUG/WG
BBBBBE 7KH )XWXUH RI 3RVW+XPDQ 8QFRQVFLRXVQHVV $ 3UHIDFH WR D 1HZ
7KHRU\RI$QRPDORXV([SHULHQFH&DPEULGJH(QJODQG&DPEULGJH6FKRODUV
3XEOLVKLQJ
BBBBBF7KH)XWXUHRI,QIRUPDWLRQ$UFKLWHFWXUH&RQFHLYLQJD1HZ:D\WR
8QGHUVWDQG7D[RQRP\1HWZRUNDQG,QWHOOLJHQFH2[IRUG8QLWHG.LQJGRP
&KDQGRV3XEOLVKLQJ2[IRUG/WG
BBBBB 7KH 5LVH RI $XWKRULWDULDQ /LEHUDO 'HPRFUDF\ $ 3UHIDFH WR D 1HZ
7KHRU\ RI &RPSDUDWLYH 3ROLWLFDO 6\VWHPV &DPEULGJH (QJODQG &DPEULGJH
6FKRODUV3XEOLVKLQJ
BBBBBD 7KH )XWXUH RI $HVWKHWLF ([SHULHQFH &RQFHLYLQJ D %HWWHU :D\ WR
%HDXW\ 8JOLQHVV DQG WKH 5HVW &DPEULGJH (QJODQG &DPEULGJH 6FKRODUV
3XEOLVKLQJ
BBBBBE7KH)XWXUHRI&RPSOH[LW\&RQFHLYLQJD%HWWHU:D\WR8QGHUVWDQG
2UGHU DQG &KDRV /RQGRQ 8QLWHG .LQJGRP :RUOG 6FLHQWLILF 3XEOLVKLQJ
&R
BBBBBF %H\RQG WKH :RUOGRI 7LWDQV DQG WKH 5HPDNLQJ RI:RUOG 2UGHU $
3UHIDFHWRD1HZ/RJLFRI(PSLUH%XLOGLQJ&DPEULGJH(QJODQG&DPEULGJH
6FKRODUV3XEOLVKLQJ
BBBBB%H\RQG1DWXUHDQG1XUWXUH&RQFHLYLQJD%HWWHU:D\WR8QGHUVWDQG
*HQHVDQG0HPHV&DPEULGJH(QJODQG&DPEULGJH6FKRODUV3XEOLVKLQJ
BBBBBD7KH)XWXUHRI3RVW+XPDQ6SDFH7LPH&RQFHLYLQJD%HWWHU:D\WR
8QGHUVWDQG6SDFHDQG7LPH1HZ<RUN3HWHU/DQJ3XEOLVKLQJ,QF
BBBBBE%H\RQG&LYLOL]DWLRQWR3RVW&LYLOL]DWLRQ&RQFHLYLQJD%HWWHU0RGHO
RI /LIH 6HWWOHPHQW WR 6XSHUVHGH &LYLOL]DWLRQ 1HZ <RUN 3HWHU /DQJ
3XEOLVKLQJ,QF
BBBBB%H\RQG&DSLWDOLVPWR3RVW&DSLWDOLVP&RQFHLYLQJD%HWWHU0RGHORI
:HDOWK$FTXLVLWLRQWR6XSHUVHGH&DSLWDOLVP1HZ<RUN7KH(GZLQ0HOOHQ
%LEOLRJUDSK\
3UHVV
BBBBB 7KH )XWXUH RI 3RVW+XPDQ &RQVFLRXVQHVV 1HZ <RUN 7KH (GZLQ
0HOOHQ3UHVV
BBBBBD%H\RQG'HPRFUDF\WR3RVW'HPRFUDF\&RQFHLYLQJD%HWWHU0RGHO
RI *RYHUQDQFH WR 6XSHUVHGH 'HPRFUDF\ 9ROXPH 1HZ <RUN 7KH (GZLQ
0HOOHQ3UHVV
BBBBBE%H\RQG'HPRFUDF\WR3RVW'HPRFUDF\&RQFHLYLQJD%HWWHU0RGHO
RI *RYHUQDQFH WR 6XSHUVHGH 'HPRFUDF\ 9ROXPH 1HZ <RUN 7KH (GZLQ
0HOOHQ3UHVV
BBBBB7KH)XWXUHRI&DSLWDOLVPDQG'HPRFUDF\0DU\ODQG7KH8QLYHUVLW\
3UHVVRI$PHULFD
BBBBB7KH)XWXUHRI+XPDQ&LYLOL]DWLRQ9ROXPH1HZ<RUN7KH(GZLQ
0HOOHQ3UHVV
BBBBBD 7KH )XWXUH RI +XPDQ &LYLOL]DWLRQ 9ROXPH 1HZ <RUN 7KH
(GZLQ0HOOHQ3UHVV
%DUURZ -RKQ ' ,PSRVVLELOLW\ 7KH /LPLWV RI 6FLHQFH DQG WKH 6FLHQFH RI
/LPLWV2[IRUG2[IRUG8QLYHUVLW\3UHVV
%%& 1HZV %%& )DVW )RRG )DFWRU\ -XQH
KWWSZZZEEFFRXNZRUOGVHUYLFHVSHFLDOVBIDVWIRRG!
BBBBB &RRNLQJ 9HJHWDEOHV
,PSURYHV %HQHILWV
-XQH
KWWSQHZVEEFFRXNKLKHDOWKVWP!
%HOOLQJKDP/LQGD -HDQ%\EHH)RRG6W\OLQJIRU3KRWRJUDSKHUV$*XLGH
WR&UHDWLQJ<RXU2ZQ$SSHWL]LQJ$UW2[IRUG)RFDO3UHVV
%HQGHU 'DYLG &RRNLQJ /RVV RI 1XWULHQWV (QF\FORSHGLDFRP
KWWSZZZHQF\FORSHGLDFRPGRF2FRRNLQJORVVRIQXWULHQWVKWPO!
%KDVLQ .LQ /RRN $W 7KH 6KRFNLQJ 'LIIHUHQFH %HWZHHQ )DVW )RRG $GV
$QG 5HDO 0HQX ,WHPV -DQXDU\ KWWSZZZEXVLQHVVLQVLGHUFRPIDVW
IRRGDGVYVWKHUHDOWKLQJ"RS L[]]Y.P+Y6!
%LJJV 6WXDUW -DSDQ 6XPPRQV $XVWUDOLDQ 'XWFK $PEDVVDGRUV 2YHU
:KDOLQJ
&ODVK
0DUFK
%ORRPEHUJ
1HZV
KWWSZZZEORRPEHUJFRPDSSVQHZV"SLG VLG D(R%3TL7+(J
J UHIHU MDSDQ!
%LOHW]NL $QDW $QDW 0DWDU /XGZLJ :LWWJHQVWHLQ 1RY 6WDQIRUG
(QF\FORSHGLDRI3KLORVRSK\KWWSSODWRVWDQIRUGHGXHQWULHVZLWWJHQVWHLQ!
%LWRPVN\ 0DULO\Q 'LJHVWLYH (Q]\PHV 7KH 0LVVLQJ /LQN $SULO
KWWSZZZOHIRUJPDJD]LQHPDJDSUFRYHUKWPO!
%ODLNLH3LHUV +DUROG%URRNILHOGHGV$SSURDFKHVWRWKH6WXG\RI/DQG
'HJUDGDWLRQ,Q/DQG'HJUDGDWLRQDQG6RFLHW\/RQGRQ0HWKXHQ
%OXPHQWKDO+HVWRQ:HLUGEXW:RQGHUIXO_/LIHDQG6W\OH0D\7KH
*XDUGLDQ
KWWSZZZJXDUGLDQFRXNOLIHDQGVW\OHPD\IRRGDQG
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
GULQNVKRSSLQJ!
%UDLQ\4XRWHFRP %4 'HOLD 6PLWK KWWSZZZEUDLQ\TXRWHFRP
TXRWHVNH\ZRUGVFRRNLQJBKWPON]PUV%]G<0KF!
BBBBBD 7RP -DLQH KWWSZZZEUDLQ\TXRWHFRPTXRWHVNH\ZRUGV
FRRNLQJBKWPOY)K:))3FH=RP!
BBBBBE 5LFKDUG /HDNH\ KWWSZZZEUDLQ\TXRWHFRPTXRWHVNH\ZRUGV
QXWULWLRQKWPO%X.EG*UFZ/==!
BBBBBF 7HG $OOHQ KWWSZZZEUDLQ\TXRWHFRPTXRWHVNH\ZRUGV
FRRNLQJBKWPOY)K:))3FH=RP!
%UD]LOWUDYHOJXLGHFRP %5$=,/ $PD]RQLDQ &XLVLQH -XQH
KWWSZZZEUD]LOWUDYHOJXLGHFRP$PD]RQ)LVKKWPO!
%URZQ*$09XNRYLFK(0DUWLQL0.RKXW:)UDQNH'-DFNVRQ '
.LQJ (IIHFWV RI $QGURVWHQHGLRQH+HUEDO 6XSSOHPHQWDWLRQ RQ 6HUXP
6H[+RUPRQH&RQFHQWUDWLRQVLQWR<HDU2OG0HQ,QW-9LWDP1XWU
5HVKWWSZZZQFELQOPQLKJRYSXEPHG!
BBBBB09XNRYLFK75HLIHQUDWK18KO.3DUVRQV56KDUS'.LQJ
(IIHFWV RI $QDEROLF 3UHFXUVRUV RQ 6HUXP 7HVWRVWHURQH &RQFHQWUDWLRQV DQG
$GDSWDWLRQV WR 5HVLVWDQFH 7UDLQLQJ LQ <RXQJ 0HQ ,QW - 6SRUW 1XWU ([HUF
0HWDEKWWSZZZQFELQOPQLKJRYSXEPHG!
%URZQ/HVWHU7KH1HZ*HRSROLWLFVRI)RRG0D\-XQH)RUHLJQ3ROLF\
KWWSZZZIRUHLJQSROLF\FRPDUWLFOHVWKHBQHZBJHRSROLWLFVBRIB
IRRG"SDJH VPVBVV WZLWWHU DWB[W GGHHFGID!
%UHQ/LQGD*RW0LON"6HSW2FW)'$&RQVXPHU
%U\QHU-HDQQD0HDW
V0DFKR,PDJH.HHSV*X\VIURP'RZQLQJ9HJJLHV
0D\KWWSQHZV\DKRRFRPPHDWVPDFKRLPDJHNHHSVJX\VGRZQLQJ
YHJJLHVKWPO!
%XQJH0DULR'LFWLRQDU\RISKLORVRSK\$PKHUVW0$3URPHWKHXV%RRNV
&DPSEHOO & 7 7 &DPSEHOO 7KH &KLQD 6WXG\ 'DOODV 7; %HQ%HOOD
%RRNV
&DQDGLDQ +HULWDJH &$1 7KH 0DSOH /HDI -XQH
KWWSZZZSFKJFFDSJPFHHPFFHGV\PEOGIHQJFIP!
&DQDGLDQ6HFXULW\,QWHOOLJHQFH6HUYLFH&6,6&RPPHQWDU\1R6LQJOH
,VVXH 7HUURULVP $SULO KWWSZZZFVLVVFUVJFFDSEOFWQVFPPQWU
FPHQJDVS!
&DUOLQJ 0DUWKD )DVW )RRG DQG 8UEDQ /LYLQJ 6WDQGDUGV LQ 0HGLHYDO
(QJODQG)RRGDQG(DWLQJLQ0HGLHYDO(XURSH0DUWKD&DUOLQDQG-RHO7
5RVHQWKDOHGV/RQGRQ(QJODQG7KH+DPEOHGRQ3UHVV
&DUWHU$ODQ$QLPDOV3DLQDQG0RUDOLW\-RXUQDORI$SSOLHG3KLORVRSK\
&HQWHUV IRU 'LVHDVH &RQWURO DQG 3UHYHQWLRQ &'& 2XWEUHDN RI
6DOPRQHOOD 6HURW\SH 6DLQWSDXO ,QIHFWLRQV $VVRFLDWHG ZLWK 0XOWLSOH 5DZ
%LEOLRJUDSK\
3URGXFH ,WHPV8QLWHG 6WDWHV 00:5 0RUELGLW\ DQG 0RUWDOLW\
:HHNO\ 5HSRUW KWWSZZZFGFJRYPPZUSUHYLHZ
PPZUKWPOPPDKWP!
&KDJQRQ1DSROHRQ<DQDPDPR)RUW:RUWK7H[DV+DUFRXUW%UDFH&ROOHJH
3XEOLVKHUV
&KDVH
6FRWW
7DFK\RQV
0DUFK
3K\VLFV
)$4
KWWSPDWKXFUHGXKRPHEDH]SK\VLFV3DUWLFOH$QG1XFOHDUWDFK\RQVKWPO!
&KLOG -XOLD 0HHW WKH &KHIV RI
&RRNLQJ ZLWK 0DVWHU &KHIV
KWWSZZZSEVRUJMXOLDFKLOGPHHWWRZHUKWPO!
&OHPHQW%ULDQ7KH&RRNLQJ(QLJPD(YROXWLRQRIWKH+XPDQ'LHW7KH
.QRZQ WKH 8QNQRZQ DQG WKH 8QNQRZDEOH 8QJDU 3HWHU 6 HG 2[IRUG
2[IRUG8QLYHUVLW\3UHVV
&RUD]]RQ 5DXO 'HILQLWLRQV RI 2QWRORJ\ )URP 1LFRODL +DUWPDQQ WR WKH
3UHVHQW7LPHKWWSZZZIRUPDORQWRORJ\LWVHFWLRQBBWZRKWP!
&RUEHWW'DQ,QWURGXFWLRQWR6WULQJ7KHRU\1RYHPEHU7KLQN4XHVW
KWWSOLEUDU\WKLQNTXHVWRUJVWULQJWKHRU\KWP!
&RUSHW ' ( < <LQ ; =KDQ HW DO &RORQLF 3URWHLQ )HUPHQWDWLRQ DQG
3URPRWLRQ RI &RORQ &DUFLQRJHQHVLV E\ 7KHUPRO\]HG &DVHLQ 1XWU &DQFHU
KWWSZZZSXEPHGFHQWUDOQLKJRYDUWLFOHUHQGHUIFJL"WRRO
SPFHQWUH] DUWLG !
BBBBB ' 6WDPS $ 0HGOLQH 6 0LQNLQ 0 $UFKHU : %UXFH
3URPRWLRQRI&RORQLF0LFURDGHQRPD*URZWKLQ0LFHDQG5DWV)HG&RRNHG
6XJDU RU &RRNHG &DVHLQ DQG )DW &DQFHU 5HV
KWWSFDQFHUUHVDDFUMRXUQDOVRUJFJLSPLGORRNXS"YLHZ ORQJ SPLG
!
&79 6HDOLQJ $FWLYLVWV %DLOHG RXW ZLWK %DJ RI 7RRQLHV $SULO
KWWSZZZFWYFDVHUYOHW$UWLFOH1HZVSULQW&791HZVIDUOH\BSU
RWHVWB"KXE &DQDGD$0 VXEKXE 3ULQW6WRU\!
&XQGLII ' . : +DUULV &DVH 5HSRUW RI 6LEOLQJV 0DOQXWULWLRQ"
5LFNHWV"'L*HRUJH6\QGURPH"'HYHORSPHQWDO'HOD\"1XWULWLRQMRXUQDO
KWWSZZZSXEPHGFHQWUDOQLKJRYDUWLFOHUHQGHUIFJL"WRRO SPFHQWUH] DUW
LG !
&XQQLQJKDP ( :KDW ,V D 5DZ )RRGV 'LHW DQG $UH 7KHUH $Q\ 5LVNV RU
%HQHILWV$VVRFLDWHGZLWK,W"-RXUQDORIWKH$PHULFDQ'LHWHWLF$VVRFLDWLRQ
&XULRXVFRRNFRP&85+DUROG0F*HH&XULRXV&RRN0RGHUQ&RRNLQJ
6FLHQFH DQG WKH (ULFH :RUNVKRSV RQ 0ROHFXODU DQG 3K\VLFDO *DVWURQRP\
6HSWHPEHUKWWSZZZFXULRXVFRRNFRPVLWHHULFHKWPO!
%DLUG (OL]DEHWK 'RHV &DQDGD +DYH D 1DWLRQDO 'LVK" -XQH
&DQDGLDQ /LYLQJ KWWSZZZFDQDGLDQOLYLQJFRPEORJVIRRG
GRHVFDQDGDKDYHDQDWLRQDOGLVK!
'HOO
$PRUH&KULVWLQH&RRNLQJ*DYH+XPDQV(GJH2YHU$SHV")HEUXDU\
1DWLRQDO *HRJUDSKLF 1HZV KWWSQHZVQDWLRQDOJHRJUDSKLFFRPQHZV
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
KXPDQGLHWFRRNLQJKWPO!
'H0RQWLV5LWD&DQDGLDQV%XWWHUXSWR7KLV7DUW-XQH7RURQWR6XQ
KWWSZZZWRURQWRVXQFRPOLIHHDWKWPO!
'HQQHWW 'DQLHO $QLPDO &RQVFLRXVQHVV :KDW 0DWWHUV DQG :K\ )DOO
6RFLDO 5HVHDUFK KWWSLQVWUXFWZHVWYDOOH\HGXODIDYHGHQQHWWB
DQLPBFVQHVVKWPO!
'HQWLQJHU & 0 : %RZHU 2 1DLQDQ 6 &RWWHU * 0\HUV / 'XEXVN\ 6
)RZOHU(6DOHKLHWDO$Q2XWEUHDNRI+HSDWLWLV$$VVRFLDWHGZLWK
*UHHQ 2QLRQV 7KH -RXUQDO RI ,QIHFWLRXV 'LVHDVHV
KWWSMLGR[IRUGMRXUQDOVRUJFRQWHQW!
'HVURFKHUV3LHUUH &KULVWLQH+RIIEDXHU7KH3RVW:DU,QWHOOHFWXDO5RRWV
RI WKH 3RSXODWLRQ %RPE 7KH (OHFWURQLF -RXUQDO RI 6XVWDLQDEOH
'HYHORSPHQW
'HZH\.DWKU\Q*1XWULWLRQDQGWKH&RPPRGLWL]DWLRQRI)RRG6\VWHPVLQ
/DWLQ$PHULFDDQGWKH&DULEEHDQ6RFLDO6FLHQFHDQG0HGLFLQH
'LVFRYHU\FKDQQHOFRXN',63HWHU%DUKDPRQ0ROHFXODU*DVWURQRP\
'LVFRYHU\ &KDQQHO 6HSWHPEHU KWWSZZZ\RXUGLVFRYHU\FRP
VFLHQFHNLWFKHQBFKHPLVWU\PROHFXODUBJDVWURQRP\LQGH[VKWPO!
'RHULQJ&KULVWRSKHU,QGXVWU\+DV6ZD\ 2YHU)RRG6DIHW\6\VWHP86
6WXG\KWWSZZZUHXWHUVFRPDUWLFOHLG8675(&!
'ROO 5 5 3HWR 7KH &DXVHV RI &DQFHU 4XDQWLWDWLYH (VWLPDWHV RI
$YRLGDEOH 5LVNV RI &DQFHU LQ WKH 8QLWHG 6WDWHV 7RGD\ -RXUQDO RI WKH
1DWLRQDO&DQFHU,QVWLWXWH30,'
'RQDOGVRQ 0 6 1 6SHLJKW 6 /RRPLV )LEURP\DOJLD 6\QGURPH
,PSURYHG 8VLQJ D 0RVWO\ 5DZ 9HJHWDULDQ 'LHW $Q 2EVHUYDWLRQDO 6WXG\
%0& &RPSOHPHQW $OWHUQ 0HG KWWSZZZQFELQOPQLKJRY
SXEPHG!
BBBBB 0HWDEROLF 9LWDPLQ % 6WDWXV RQ D 0RVWO\ 5DZ 9HJDQ 'LHW ZLWK
)ROORZ8S 8VLQJ 7DEOHWV 1XWULWLRQDO <HDVW RU 3URELRWLF 6XSSOHPHQWV
$QQDOV RI QXWULWLRQ PHWDEROLVP
KWWSZZZQFELQOPQLKJRYSXEPHG!
'RXJODVV-0,5DVJRQ3)OHLVV56FKPLGW63HWHUV ($EHOPDQQ
(IIHFWV RI D 5DZ )RRG 'LHW RQ +\SHUWHQVLRQ DQG 2EHVLW\ 6RXWKHUQ
0HGLFDO-RXUQDO
(GJDU :DOWHU 6RXWK &DUROLQD D +LVWRU\ &ROXPELD 6RXWK &DUROLQD
8QLYHUVLW\RI6RXWK&DUROLQD3UHVV
(JHUWRQ ) 1 8QGHUVWDQGLQJ )RRG &KDLQV DQG )RRG :HEV
%XOOHWLQ RI WKH (FRORJLFDO 6RFLHW\ RI $PHULFD
KWWSZZZHVDMRXUQDOVRUJGRLIXOO
%$8)&$):'&2%!
(KUOLFK 3DXO 5 $QQH + (KUOLFK 7KH 3RSXODWLRQ %RPE 5HYLVLWHG
(OHFWURQLF -RXUQDO RI 6XVWDLQDEOH 'HYHORSPHQW
%LEOLRJUDSK\
KWWSIUDJHWWHIUHHIUGHPRJUDSK\7KHB3RSXODWLRQB%RPEB5HYLVLWHGSGI!
(OGUEDUU\QHW (/' 7KH $PHULFDQ )RRG 5HYROXWLRQV &XLVLQHV LQ
$PHULFD-XQHKWWSZZZHOGUEDUU\QHWKDWUHOGUFXLVKWP!
(OWRQ&6$QLPDO(FRORJ\/RQGRQ8.6LGJZLFNDQG-DFNVRQ
(XURSHZRUGFRP (85 (XURSHDQ &XLVLQH )HEUXDU\
KWWSZZZHXURSHZRUGFRPEORJHXURSHHXURSHDQFXLVLQH!
(YHUHWW+XJK
5HODWLYH6WDWH
)RUPXODWLRQRI4XDQWXP0HFKDQLFV-XO\
5HYLHZV RI 0RGHUQ 3K\VLFV YRO QR KWWSZZZXQLYHURPVNVX
RPVN6FL(YHUHWWSDSHUKWPO!
)DUP6DQFWXDU\)67KH7UXWK%HKLQG7KH/DEHOV)DUP$QLPDO:HOIDUH
6WDQGDUGV DQG /DEHOLQJ 3UDFWLFHV KWWSZZZIDUPVDQFWXDU\RUJLVVXHV
FDPSDLJQVVXPPDU\KWPO!
)DUUHOO-DPHV7KH(YROXWLRQRIWKH4XLFN6HUYLFH5HVWDXUDQW$SULO
KWWSMSIDUUHOOEORJVSRWFRPHYROXWLRQRITXLFNVHUYLFHUHVWDXUDQW
KWPO!
)HGHUDO%XUHDXRI,QYHVWLJDWLRQ)%,)HGHUDO%XUHDXRI,QYHVWLJDWLRQ
&RQJUHVVLRQDO 7HVWLPRQ\ )HEUXDU\ KWWSZZZIELJRYQHZV
WHVWLPRQ\WKHWKUHDWRIHFRWHUURULVP!
)LUHKDPPHU 5HJLQDOG %DVLF 3ULQFLSOHV RI 2QWRORJ\ -DQXDU\
KWWSXVDELJFRPDXWRQRPLVWSKLORVRSK\RQWRORJ\KWPO!
)LVKHU/HQ+RZWR'XQND'RXJKQXW7KH6FLHQFH2I(YHU\GD\/LIH1HZ
<RUN$UFDGH3XE
)RQWDQD / - 6KHZ - +ROORV]\ ' 9LOODUHDO /RZ %RQH 0DVV LQ
6XEMHFWV RQ D /RQJ7HUP 5DZ 9HJDQ 'LHW$UFKLYHV RI ,QWHUQDO 0HGLFLQH
KWWSDUFKLQWHMDPDQHWZRUNFRPDUWLFOHDVS["DUWLFOHLG
!
)RRG DQG 'UXJ $GPLQLVWUDWLRQ )'$ )'$ )RRG &RGH 2FWREHU
KWWSZZZFIVDQIGDJRYaGPVIRRGFRGHKWPOLQWUR!
)RRGE\FRXQWU\FRP
)22'
*XDWHPDOD
-XQH
KWWSZZZIRRGE\FRXQWU\FRP*HUPDQ\WR-DSDQ*XDWHPDODKWPO!
)RRG6WDQGDUGVJRY )6* 6DIH )RRG $XVWUDOLD$ *XLGH WR WKH )RRG
6DIHW\ 6WDQGDUGV 0D\ KWWSZZZIRRGVWDQGDUGVJRYDXBVUFILOHVFR
PSOHWHBVDIHIRRGSGI!
)RUW0HUHGLWK0DU\$QQ0HUFHU 2VFDU*LVKHGV6LFNQHVVDQG:HDOWK
7KH &RUSRUDWH $VVDXOW RQ *OREDO +HDOWK &DPEULGJH 0DVVDFKXVHWWV 6RXWK
(QG3UHVV
)R[0LFKDHO$OOHQ'HHS9HJHWDULDQLVP3$7HPSOH8QLYHUVLW\3UHVV
)UDQNOLQ %HQMDPLQ 7KH $XWRELRJUDSK\ RI %HQMDPLQ )UDQNOLQ
KWWSZZZHDUO\DPHULFDFRPOLYHVIUDQNOLQFKDSW!
)UDVHU 'RXJ &DSH 0DQ )LJKWV :KDOHUV $SULO &DSH &RG 7LPHV
KWWSZZZFDSHFRGRQOLQHFRPDSSVSEFVGOODUWLFOH"$,' 1(:
6!
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
)UHH'LFWLRQDU\FRP
)5(
(FR7HUURULVP
0D\
KWWSZZZWKHIUHHGLFWLRQDU\FRPHFRWHUURULVP!
*DQVV & 0 6FKOHFKWULHPHQ - .OLPHN 'HQWDO (URVLRQV LQ 6XEMHFWV
/LYLQJ RQ D 5DZ )RRG 'LHW &DULHV 5HVHDUFK
KWWSFRQWHQWNDUJHUFRP3URGXNWH'%SURGXNWHDVS"GRL
!
*$2 *$27 )HGHUDO 2YHUVLJKW RI )RRG 6DIHW\
KWWSZZZJDRJRYQHZLWHPVGWSGI!
*DUFLD $ / & .RHEQLFN 3 'DJQHOLH & 6WUDVVQHU , (OPDGID 1 .DW] &
/HLW]PDQQ , +RIIPDQQ /RQJ7HUP 6WULFW 5DZ )RRG 'LHW LV
$VVRFLDWHG ZLWK )DYRXUDEOH 3ODVPD %HWD&DURWHQH DQG /RZ 3ODVPD
/\FRSHQH &RQFHQWUDWLRQV LQ *HUPDQV 7KH %ULWLVK -RXUQDO RI 1XWULWLRQ
KWWSMRXUQDOVFDPEULGJHRUJDFWLRQGLVSOD\$EVWUDFW"IURP
3DJH RQOLQH DLG !
*DUGQHU 'DQ )XWXUH %DEEOH :K\ ([SHUW 3UHGLFWLRQV )DLODQG :K\ :H
%HOLHYH7KHP$Q\ZD\7RURQWR&$0F&OHOODQGDQG6WHZDUW
*LEEV:D\W 1DWKDQ0\KUYROG$1HZ6SLQRQ&RRNLQJ0DUFK
6FLHQWLILF $PHULFDQ KWWSZZZVFLHQWLILFDPHULFDQFRPDUWLFOHFIP"LG D
QHZVSLQRQFRRNLQJ!
*LVVOHQ:D\QH3URIHVVLRQDO&RRNLQJ1<-RKQ:LOH\DQG6RQV
*OREDOJRXUPHWFRP */2 7KH 0LGGOH (DVW %DFNJURXQG -XQH
KWWSZZZJOREDOJRXUPHWFRPGHVWLQDWLRQVPLGHDVWPHVWEDFNKWPO!
*ROGVWDW 5HEHFFD (VWKHU %ULJDQWL -DQH 7UDQ 5RU\ :ROIH 6XVDQ 5 'DYLV
7UDQVGHUPDO 7HVWRVWHURQH7KHUDS\,PSURYHV :HOO%HLQJ 0RRGDQG
6H[XDO)XQFWLRQLQ3UHPHQRSDXVDO:RPHQ6HSWHPEHU0HQRSDXVH
KWWSZZZQFELQOPQLKJRYSXEPHG!
*RWW - 5LFKDUG 7LPH 7UDYHO LQ (LQVWHLQ
V 8QLYHUVH %RVWRQ +RXJKWRQ
0LIIOLQ
*UDKDP 'RXJODV 7KH &KDOOHQJHV RI *RLQJ RQ D 5DZ )RRG 'LHW 0D\
KWWSIRRGQVSRUWFRPEORJDUWLFOHVWKHFKDOOHQJHVRIJRLQJRQDUDZ
IRRGGLHWKWPO!
*UD\3%$%6LQJK/-:RRGKRXVH7:6WRUHU5&DVDEXUL-']HNRY
&']HNRY,6LQKD+LNLP 6%KDVLQ'RVH'HSHQGHQW(IIHFWVRI
7HVWRVWHURQHRQ6H[XDO)XQFWLRQ0RRGDQG9LVXRVSDWLDO&RJQLWLRQLQ2OGHU
0HQ
-
&OLQ
(QGRFULQRO
0HWDE
KWWSZZZQFELQOPQLKJRYSXEPHG!
*UHHQ (PLO\ 0HDW EXW 1R +HDW/RV $QJHOHV 7LPHV -DQXDU\
KWWSDUWLFOHVODWLPHVFRPMDQIRRGIR!
JXDUGLDQFRXN *8$ 7KH 0DQ :KR 8QERLOHG DQ (JJ -XO\
KWWSREVHUYHUJXDUGLDQFRXNIRRGPRQWKO\IXWXUHRIIRRGVWRU\
KWPO!
*XWK $ODQ 7KH ,QIODWLRQDU\ 8QLYHUVH 7KH 4XHVW IRU D 1HZ 7KHRU\ 2I
%LEOLRJUDSK\
&RVPLF2ULJLQV1HZ<RUN+HOL[%RRNV
+DGOH\0('LVFRYHU\WKDWD0HODQRFRUWLQ5HJXODWHV6H[XDO)XQFWLRQV
LQ 0DOH DQG )HPDOH +XPDQV 2FWREHU 3HSWLGHV
KWWSZZZQFELQOPQLKJRYSXEPHG!
+DUYDUG 6FKRRO RI 3XEOLF +HDOWK +63+ )RRG 3\UDPLGV :KDW 6KRXOG
<RX 5HDOO\ (DW" 0D\ KWWSZZZKVSKKDUYDUGHGX
KWWSZZZKVSKKDUYDUGHGXQXWULWLRQVRXUFHZKDWVKRXOG\RXHDWS\UDPLG
IXOOVWRU\LQGH[KWPOLQWUR!
+HDOWK &DQDGD +($& +HDOWK &DQDGD +HDOWK\ /LYLQJ 6RGLXP
+HDOWK\ /LYLQJ KWWSZZZKFVFJFFDKOYVL\KYVYIRRGDOLPHQWVRGLXP
HQJSKS!
+HDWRQ - & . -RQHV 0LFURELDO &RQWDPLQDWLRQ RI )UXLW DQG
9HJHWDEOHV DQG WKH %HKDYLRXU RI (QWHURSDWKRJHQV LQ WKH 3K\OORVSKHUH $
5HYLHZ-RXUQDORI$SSOLHG0LFURELRORJ\
+HOOHU 3HWHU 7KH :KDOH :DUULRUV :KDOLQJ LQ WKH $QWDUFWLF 6HDV
1DWLRQDO *HRJUDSKLF $GYHQWXUH KWWSZZZQDWLRQDOJHRJUDSKLFFRP
DGYHQWXUHIHDWXUHVZKDOHVKWPO!
+LJKILHOG 5RJHU &DUROLQH *DPPHOO 6WXG\ )LQGV $FU\ODPLGH /LQN WR
&DQFHULQ:RPHQ7KH'DLO\7HOHJUDSKKWWSZZZWHOHJUDSKFRXNQHZV
XNQHZV6WXG\ILQGVDFU\ODPLGHOLQNWRFDQFHULQZRPHQKWPO!
-DQHVRFHDQLDFRP -$1(6 $XVWUDOLD$ERULJLQHV $QG :KLWH 6HWWOHUV
7KH %UHDNLQJ 'RZQ RI $ERULJLQDO 6RFLHW\ -XQH
KWWSZZZMDQHVRFHDQLDFRPDXVWUDOLDBDERULJLQDOBZKLWHVHWWOHUVLQGH[
KWP!
-DURII
/HRQ
7DQQLQJ
%RQXV
-XQH
7LPH
KWWSZZZWLPHFRPWLPHPDJD]LQHDUWLFOH
KWPO!
-LQ < 0 :DQJ 5 5RVHQ & +R 7KHUPDO 'HJUDGDWLRQ RI
6XOIRUDSKDQH LQ $TXHRXV 6ROXWLRQ -RXUQDO RI $JULFXOWXUDO DQG )RRG
&KHPLVWU\ KWWSZZZQFELQOPQLKJRYSXEPHG
!
.DDUWLQHQ . . /DPPL 0 +\SHQ 0 1HQRQHQ 2 +DQQLQHQ $ 5DXPD
9HJDQ 'LHW $OOHYLDWHV )LEURP\DOJLD 6\PSWRPV 6FDQG -
5KHXPDWRO KWWSLQIRUPDKHDOWKFDUHFRPGRLDEV
!
.DNX 0LFKLR +\SHUVSDFH $ 6FLHQWLILF 2G\VVH\ 7KURXJK 3DUDOOHO
8QLYHUVHV 7LPH :DUSV DQG 7KH 7HQWK 'LPHQVLRQ ,OOXVWUDWLRQV E\ 5REHUW
2.HHIH2[IRUG2[IRUG8QLYHUVLW\3UHVV
.DPS'DYLG7KH8QLWHG6WDWHVRI$UXJXOD1HZ<RUN%URDGZD\
.KDWFKDGRXULDQ5DIIL1HSWXQHV1DY\1RYHPEHU7KH1HZ<RUNHU
KWWSZZZQHZ\RUNHUFRPUHSRUWLQJIDBIDFWBNKDWFKDGR
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
XULDQ!
.KRNKD6DVKD,Q5XUDO&DOLIRUQLDDQ,PSHULDO'\QDVW\(QGV-XO\
1DWLRQDO 3XEOLF 5DGLR KWWSZZZQSURUJWHPSODWHVVWRU\VWRU\SKS"
VWRU\,G !
.K\PRVRUJ .+< 'HILQLWLRQV RI 0ROHFXODU *DVWURQRP\ $XJXVW
KWWSNK\PRVRUJGHILQLWLRQVSKS!
BBBBB
+LVWRU\
RI
0ROHFXODU
*DVWURQRP\
0D\
KWWSEORJNK\PRVRUJPROHFXODUJDVWURQRP\KLVWRU\!
.LUE\ $OH[ +XQJU\ :RUOG
0XVW (DW /HVV 0HDW
$XJXVW
KWWSQHZVEEFFRXNKLVFLHQFHQDWXUHVWP!
.RHEQLFN & $ *DUFLD 3 'DJQHOLH & 6WUDVVQHU - /LQGHPDQV 1 .DW] &
/HLW]PDQQ ,+RIIPDQQ/RQJ7HUP&RQVXPSWLRQRID5DZ)RRG
'LHW,V$VVRFLDWHGZLWK)DYRUDEOH6HUXP/'/&KROHVWHURODQG7ULJO\FHULGHV
EXW $OVR ZLWK (OHYDWHG 3ODVPD +RPRF\VWHLQH DQG /RZ 6HUXP +'/
&KROHVWHURO LQ +XPDQV -RXUQDO RI 1XWULWLRQ
KWWSMQQXWULWLRQRUJFJLSPLGORRNXS"YLHZ ORQJ SPLG !
BBBBB & 6WUDVVQHU , +RIIPDQQ & /HLW]PDQQ &RQVHTXHQFHV RI D
/RQJ7HUP5DZ9HJDQ'LHWRQ%RG\:HLJKWDQG0HQVWUXDWLRQ5HVXOWVRID
4XHVWLRQQDLUH 6XUYH\ $QQDOV RI QXWULWLRQ PHWDEROLVP
KWWSFRQWHQWNDUJHUFRP3URGXNWH'%SURGXNWHDVS"GRL
!
.RR,QJULG%RWR[DQG%RWXOLVP"%HDXW\DQGWKH%HDVW"'HFHPEHU
KWWSLQIHFWLRXVGLVHDVHVDERXWFRPRGGLVHDVHVE\QDPHD%RWXOLVPKWP!
.RVFKLQVN\ 7 & +H 7 0LWVXKDVKL 5 %XFDOD & /LX & %XHQWLQJ .
+HLWPDQQ + 9ODVVDUD 2UDOO\ $EVRUEHG 5HDFWLYH *O\FDWLRQ
3URGXFWV *O\FRWR[LQV $Q (QYLURQPHQWDO 5LVN )DFWRU LQ 'LDEHWLF
1HSKURSDWK\ 3URF 1DWO $FDG 6FL
KWWSZZZSQDVRUJFJLFRQWHQWIXOO!
.RYDOHY9$6.RUROHYD $.DPDORY3KDUPDFRWKHUDS\RI(UHFWLOH
'\VIXQFWLRQ 8URORJLLD KWWSZZZQFELQOPQLKJRYSXEPHG
!
.XQVWOHU-DPHV+RZDUG7KH/RQJ(PHUJHQF\1<*URYH3UHVV
.XU]ZHLO5D\ 7HUU\*URVVPDQ)DQWDVWLF9R\DJH/LYH/RQJ(QRXJKWR
/LYH)RUHYHU(PPDXV3$5RGDOH,QF
.ZDQ 6KXN\DQ 6HOHFWHG 2FFLGHQWDO &RRNHULHV DQG 'HOLFDFLHV +RQJ
.RQJ)RRG3DUDGLVH3XE&R
/H&1$VLDQ&XLVLQH )RRGV$VLDQ1DWLRQ7KH/DQGVFDSHRI$VLDQ
$PHULFDKWWSZZZDVLDQQDWLRQRUJDVLDQIRRGVKWPO!
/HDWKHUPDQ7KRPDV/ $ODQ*RRGPDQ&RFD&RORQL]DWLRQRI'LHWVLQ
WKH<XFDWiQ6RFLDO6FLHQFHDQG0HGLFLQH
/HLEHU-XVWLQ&DUWHVLDQ/LQJXLVWLFV"3KLORVRSKLD
%LEOLRJUDSK\
/HXQJ 0DQWDR (DWLQJ DQG &XOWXUDO 6WHUHRW\SHV )HEUXDU\ (DW DQG
7UDYHO:HHNO\
/LQGHQ (XJHQH 7KH 3DUURWV /DPHQW DQG RWKHU 7UXH 7DOHV RI $QLPDO
,QWULJXH,QWHOOLJHQFHDQG,QJHQXLW\1HZ<RUN1<'XWWRQ
/LQGVH\ 5REHUW &DOLIRUQLD *URZV +HU 2ZQ &XLVLQH $XJXVW 1HZ
<RUN 7LPHV KWWSTXHU\Q\WLPHVFRPJVWIXOOSDJHKWPO"UHV (('')
)%$%&$ VHF WUDYHO SDJHZDQWHG SULQW!
/RPERUJ%MUQ7KH6NHSWLFDO(QYLURQPHQWDOLVW0HDVXULQJWKH5HDO6WDWH
RIWKH:RUOG&DPEULGJH0$&DPEULGJH8QLYHUVLW\3UHVV
/\QFK -LP )ULGD\ +DUERU :DVK $FWLYLVW (OLFLWV 'XDO ,PDJHV RI +HUR
)RH0DUFK7KH2UHJRQLDQ
0DKRQ%($3|QNl:+DOO..RPDWVX6'LHWULFK$6LLWRQHQ*&DJH
3 +D\HV HW DO $Q ,QWHUQDWLRQDO 2XWEUHDN RI 6DOPRQHOOD ,QIHFWLRQV
&DXVHGE\$OIDOID6SURXWV*URZQIURP&RQWDPLQDWHG6HHGV7KH-RXUQDORI
,QIHFWLRXV 'LVHDVHV KWWSMLGR[IRUGMRXUQDOVRUJ
FRQWHQW!
0DQQD /RX %LOO 0RVV 'LJLWDO )RRG 3KRWRJUDSK\ &7 &RXUVH
7HFKQRORJ\,QF
0DUWLQH] 'DLV\ 'DLV\ 0RUQLQJ 1RRQ DQG 1LJKW %ULQJLQJ <RXU )DPLO\
7RJHWKHUZLWK(YHU\GD\/DWLQ'LVKHV1<$WULD
0DWWDU3KLOLSHG(QF\FORSHGLDRIWKH0RGHUQ0LGGOH(DVW 1RUWK$IULFD
86$0DFPLOODQ5HIHUHQFH
0F$OHHU1HLO7KH0LQG%RJJOLQJ8QLYHUVH1HZ<RUN'RXEOHGD\ &R
0F%URRP3DWULFLD0HDW(DWLQJZDV(VVHQWLDOIRU+XPDQ(YROXWLRQVD\V
8& %HUNHOH\ $QWKURSRORJLVW 6SHFLDOL]LQJ LQ 'LHW -XQH
KWWSEHUNHOH\HGXQHZVPHGLDUHOHDVHVOHJDF\DKWPO!
0F*UDQH 6DOO\ 7KH )DWKHU RI 0ROHFXODU *DVWURQRP\ :KLSV 8S D 1HZ
)RUPXOD:LUHG
0DJD]LQH
-XO\
:LUHGFRP
KWWSZZZZLUHGFRPWHFKEL]SHRSOHPDJD]LQHSVBIRRGFKHPLVW!
0F.LH 5RELQ *UHHQ 6KLSV LQ 'HDGO\ 'XHO ZLWK :KDOHUV -DQXDU\
7KH
*XDUGLDQ
KWWSZZZJXDUGLDQFRXNHQYLURQPHQWMDQ
ZKDOLQJDQWDUFWLFD!
0HUULDP:HEVWHUV &ROOHJLDWH 'LFWLRQDU\ 2QOLQH 0:' ,QJUHGLHQW
0D\KWWSZZZPZFRPGLFWLRQDU\LQJUHGLHQW!
BBBBBD 7HFKQLTXH 0D\ KWWSZZZPZFRPGLFWLRQDU\
WHFKQLTXH!
BBBBBE *DVWURQRP\ 0D\ KWWSZZZPZFRPGLFWLRQDU\
JDVWURQRP\!
BBBBBF (FR7HUURULVP 0D\ KWWSZZZPZFRPGLFWLRQDU\
HFRWHUURULVP!
BBBBB$JHQF\0DUFKKWWSZZZPZFRPGLFWLRQDU\DJHQF\!
0HVD &RPPXQLW\ &ROOHJH 0(6$ 0DL]H WKH 6WDSOH &URS RI WKH
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
$PHULFDV -XQH KWWSZZZPHVDFFHGXGHSWGDVEOLIHZD\V
KJBDJPDL]HKWPO!
0LOOHU%DUEDUD'&XOWXUDO$QWKURSRORJ\%RVWRQ0$3HDUVRQ(GXFDWLRQ
,QF
0LQW] 6LGQH\ 6ZHHWQHVV DQG 3RZHU 7KH 3ODFH RI 6XJDU LQ 0RGHUQ
+LVWRU\1HZ<RUN3HQJXLQ
0RUJDQ $JQHV )D\ *UDFH .HUQ 7KH (IIHFW RI +HDW 8SRQ WKH
%LRORJLFDO9DOXHRI0HDW3URWHLQ7KH-RXUQDORI1XWULWLRQ
KWWSMQQXWULWLRQRUJFJLUHSULQWSGI!
061%& 0F'RQDOG
V )LQDOO\ 3LFNV 7UDQV)DW)UHH 2LO -DQ
KWWSZZZPVQEFPVQFRPLG!
1DJW]DDP *HUU\ 3HWH /HQWLQL 9LJLODQWHVRQ WKH +LJK 6HDV" 7KH 6HD
6KHSKHUGVDQG3ROLWLFDO9LROHQFH7HUURULVPDQG3ROLWLFDO9LROHQFH
KWWSZZZLQIRUPDZRUOGFRPVPSSFRQWHQW
aGE DOOaFRQWHQW D!
1DWLRQDO &DQFHU ,QVWLWXWH 1&, +HWHURF\FOLF $PLQHV LQ &RRNHG 0HDWV
0D\ KWWSZZZFDQFHUJRYFDQFHUWRSLFVIDFWVKHHW5LVNKHWHURF\FOLF
DPLQHV!
1DWLRQDO 3XEOLF 5DGLR 135 7KH +DPEXUJHU KWWSZZZQSURUJ
SURJUDPVPRUQLQJIHDWXUHVSDWFKDPEXUJHU!
1DYDUUR9'HYHORSPHQWDQG4XDOLW\RI/LIH$&ULWLTXHRI$PDUW\D6HQ
V
'HYHORSPHQW DV )UHHGRP ,QW - +HDOWK 6HUY
KWWSZZZQFELQOPQLKJRYVLWHVHQWUH]"'E SXEPHG &PG 5HWULHYH OLVW
BXLGV GRSW DEVWUDFWSOXV!
1HQRQHQ 0 7 7 +HOYH $ 5DXPD 2 +lQQLQHQ 8QFRRNHG
/DFWREDFLOOL5LFK9HJDQ)RRGDQG5KHXPDWRLG$UWKULWLV%ULWLVK-RXUQDORI
5KHXPDWRORJ\ KWWSUKHXPDWRORJ\R[IRUGMRXUQDOVRUJ
FRQWHQW!
1HVWOH0)RRG3ROLWLFV%HUNHOH\&$8QLYHUVLW\RI&DOLIRUQLD3UHVV
1HXUDWK3DXO)URP0DOWKXVWRWKH&OXERI5RPHDQG%DFN$UPRQN1HZ
<RUN0(6KDUSH
1HZ <RUNHU 1< 6WUHHW )LJKW RQ WKH +LJK 6HDV -DQXDU\
KWWSZZZQHZ\RUNHUFRPRQOLQHEORJVQHZVGHVNVHDVKHSKHUG
KWPO!
1HZ=HDODQG+HUDOG1=++DUGOLQH:DUULRULQ:DUWR6DYHWKH:KDOH
-DQXDU\ KWWSZZZQ]KHUDOGFRQ]Q]QHZVDUWLFOHFIP"FBLG
REMHFWLG !
1HZ =HDODQG .LZLIUXLW *URZHUV ,QF 1=.* $ERXW 1HZ =HDODQG
.LZLIUXLW*URZHUV,QFKWWSQ]NJLRUJQ]DERXWNJLKWPO!
1RDK 1 ' $ ( %HQGHU * 5HDLGL 5 *LOEHUW 1HZV 1RWHV DQG
%LEOLRJUDSK\
(SLGHPLRORJ\ -XO\ %U 0HG -
KWWSZZZSXEPHGFHQWUDOQLKJRYDUWLFOHUHQGHUIFJL"WRRO SPFHQWUH] DUWLG
!
1RYD 2QOLQH 12 7LPH &DQ 9DU\ KWWSZZZSEVRUJ
ZJEKQRYDWLPHWKLQNWLPHKWPO!
135 &KHI -HUHPLDK $XJXVW KWWSZZZQSURUJWHPSODWHV
VWRU\VWRU\SKS"VWRU\,G !
2GXP ( 3 * %DUUHWW )XQGDPHQWDOV RI (FRORJ\ 6WDPIRUG &7
%URRNV&ROH
2UJDQ &KULV 3K\ORJHQHWLF 5DWH 6KLIWV LQ )HHGLQJ 7LPH GXULQJ WKH
(YROXWLRQ
RI
+RPR
$XJXVW
31$6
KWWSZZZSQDVRUJFRQWHQWIXOO"VLG FE
IDEHIF!
3DODWLQ 7HFKQRORJLHV ,QF 37, 3DODWLQ 7HFKQRORJLHV $QQRXQFHV 1HZ
6WUDWHJLF 2EMHFWLYHV )HEUXDU\ KWWSSDODWLQFRPQHZVQHZVDVS"
,' !
3DULVK 0 ( 3XEOLF +HDOWK DQG 1RQSDVWHXUL]HG )UXLW -XLFHV &ULWLFDO
5HYLHZVLQ0LFURELRORJ\KWWSLQIRUPDKHDOWKFDUHFRPGRL
DEV!
3DUN 0LFKDHO $ ,QWURGXFWLRQ $QWKURSRORJ\ $Q ,QWHJUDWHG $SSURDFK
%RVWRQ0$3HDUVRQ(GXFDWLRQ,QF
3HOWR *UHWHO + 3HUWWL -3HOWR 6PDOO EXW +HDOWK" $Q$QWKURSRORJLFDO
3HUVSHFWLYH+XPDQ2UJDQL]DWLRQ
3HQQLVL(OL]DEHWK'LG&RRNHG7XEHUV6SXUWKH(YROXWLRQRI%LJ%UDLQV"
6FLHQFHKWWSFRJZHEXFODHGX$EVWUDFWV3HQQLVLB
KWPO!
3RVW'003DFH $+DULVWLV3DUDVLWHV'RPLQDWH)RRG:HE/LQNV
3URFHHGLQJV RI WKH 1DWLRQDO $FDGHP\ RI 6FLHQFHV
KWWSZZZSQDVRUJFRQWHQWIXOOSGIKWPO!
5DPDQ 6KDQNDU /HFWXUHV RQ /LWHUDU\ 7KHRU\ &DPEULGJH 0$ 0,7
VSULQJ
5HOXFWDQW*RXUPHWFRP 5* &XWWLQJ %RDUGV:RRG RU 3ODVWLF"
KWWSZZZUHOXFWDQWJRXUPHWFRPFXWWLQJBERDUGKWP!
5H\HV 5DSKDHO )RRG3\UDPLG )UHQ]\ /REE\LVWV )LJKW WR 'HIHQG 6XJDU
3RWDWRHV DQG %UHDG ,Q 5HFRPPHQGHG 86 'LHW -XO\ :DOO 6WUHHW
-RXUQDO KWWSRQOLQHZVMFRPDUWLFOH6%KWPO"
PRG KHDOWKBKVBSROLF\BOHJLVODWLRQ!
5LFNOHIIV 5REHUW ( 7KH (FRQRP\ RI 1DWXUH &KLFDJR ,/ 8QLYHUVLW\ RI
&KLFDJR3UHVV
5REELQV 5LFKDUG + *OREDO 3UREOHPV DQG WKH &XOWXUH RI &DSLWDOLVP
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
%RVWRQ0$$OO\QDQG%DFRQ
5XW]'DQ7DQQLQJ'UXJ0D\)LQG1HZ/LIHDV9LDJUD$OWHUQDWLYH-XQH
&11KWWSZZZFQQFRP+($/7+PHQYLDJUDDOWHUQDWLYH!
6DWLQ0RUWRQ)RRG$OHUW7KH8OWLPDWH6RXUFHERRNIRU)RRG6DIHW\1<
)DFWVRQ)LOH,QF
6FKORVVHU(ULF)DVW)RRG1DWLRQ7KH'DUN6LGHRIWKH$OO$PHULFDQ0HDO
0$+RXJKWRQ0LIIOLQ
6FLHQWLILF&RPPLWWHHRQ)RRG6&)3RO\F\FOLF$URPDWLF+\GURFDUERQV
2FFXUUHQFHLQ)RRGV'LHWDU\([SRVXUHDQG+HDOWK(IIHFWV'HFHPEHU
KWWSHFHXURSDHXIRRGIVVFVFIRXWBHQSGI!
6FXOO\0DWWKHZ'RPLQLRQ1<6W0DUWLQ
V*ULIILQ
6KDEVLJK 5 7KH (IIHFWV RI 7HVWRVWHURQH RQ WKH &DYHUQRXV 7LVVXH DQG
(UHFWLOH
)XQFWLRQ
:RUOG
-
8URO
KWWSZZZQFELQOPQLKJRYSXEPHG!
6KHDUHU %HQMDPLQ ) &XOWXUH DQG &XVWRPV RI WKH 8QLWHG 6WDWHV &7
*UHHQZRRG3XEOLVKLQJ*URXS
6KLNORPDQRY,$$SSUDLVDODQG$VVHVVPHQWRI:RUOG:DWHU5HVRXUFHV
:DWHU ,QWHUQDWLRQDO KWWSZZZEYVGHSDKRRUJEYVDFJ
IXOOWH[WZRUOGUSGI!
6KODLQ/HRQDUG$UWDQG3K\VLFV3DUDOOHO9LVLRQVLQ6SDFH7LPHDQG/LJKW
1HZ<RUN:LOOLDP0RUURZDQG&R,QF
6KXOPDQ 0DUWKD 5RVH 7DKLQL 7KH 7DVWH RI +HDOWK\ 0LGGOH (DVWHUQ
&XLVLQH 2FWREHU 7KH 1HZ <RUN 7LPHV KWWSZZZQ\WLPHVFRP
KHDOWKQXWULWLRQUHFLSHKHDOWKKWPO"BU !
6LUDM0D]KDU)RRG6DIHW\/HJLVODWLRQLQ3DNLVWDQ,GHQWLI\LQJ(QWU\3RLQWV
IRU 3XEOLF ,QWHUYHQWLRQ KWWSZZZFUFSRUJSNGRFBILOHV)RRG6DIHW\
/HJLVODWLRQLQ3DNLVWDQGRF!
6LYDSDODVLQJDP6&)ULHGPDQ/&RKHQ 57DX[H)UHVK3URGXFH$
*URZLQJ&DXVHRI2XWEUHDNVRI)RRGERUQH,OOQHVVLQWKH8QLWHG6WDWHV
WKURXJK -RXUQDO RI )RRG 3URWHFWLRQ
KWWSZZZQFELQOPQLKJRYSXEPHG!
6REHO - %RWXOLVP 2FWREHU &OLQ ,QIHFW 'LV
KWWSG[GRLRUJ)!
6RXWK $XVWUDOLDQ 7RXULVP ,QGXVWU\ &RXQFLO 6287+ 6RXWK $XVWUDOLDQ
)RRG DQG :LQH 7RXULVP 6WUDWHJ\ -XQH
KWWSVDWLFFRPDXLPDJHVXSORDGVGRFXPHQWVIRRGZLQHWRXULVPVWUD
WHJ\SGI!
6WDPEDXJK-RKQ(7KH$QFLHQW5RPDQ&LW\%DOWLPRUH0'-+83UHVV
6WUDGOH\ /LQGD 5HGLVFRYHU WKH )ODYRUV DQG 7UDGLWLRQV RI 7UXH $PHULFDQ
&XLVLQH -XQH KWWSZKDWVFRRNLQJDPHULFDQHW$PHULFDQ5HJLRQDO
%LEOLRJUDSK\
)RRGV5HJLRQDO$PHULFDQ,QGH[KWP!
6W\OHU&KULVWRSKHU 'DYLG/D]DUXV:RUNLQJWKH3ODWH7KH$UWRI)RRG
3UHVHQWDWLRQ1<-RKQ:LOH\DQG6RQV
6XIULQ-RQ,V3RXWLQH&DQDGDV1DWLRQDO)RRG"7ZR$UJXPHQWVIRU7ZR
DJDLQVW $SULO 7RURQWR /LIH KWWSZZZWRURQWROLIHFRPGDLO\GDLO\
GLVKDSURQVLFRQVLVSRXWLQHFDQDGDVQDWLRQDOIRRGWZRDUJXPHQW
VIRUWZRDJDLQVW!
6XWWRQ 0DUN 4 $UFKDHRORJLFDO /DERUDWRU\ 0HWKRGV $Q ,QWURGXFWLRQ
.HQGDOO+XQW3XE
7DUHNH ( 3 5\GEHUJ HW DO $QDO\VLV RI $FU\ODPLGH D &DUFLQRJHQ
)RUPHG LQ +HDWHG )RRGVWXIIV - $JULF )RRG &KHP
KWWSSXEVDFVRUJGRLDEVMII!
7HOHJUDSKFRXN 7(/ 3DXO :DWVRQ 6HD 6KHSKHUG (FRZDUULRU )LJKWLQJ
WR
6WRS
:KDOLQJ
DQG
6HDO
+XQWV
$SULO
KWWSZZZWHOHJUDSKFRXNHDUWK3DXO:DWVRQ6HD6KHSKHUGHFR
ZDUULRUILJKWLQJWRVWRSZKDOLQJDQGVHDOKXQWVKWPO!
7KLQN([LVWFRP 7( (GPXQ /HDFK 0D\ KWWSWKLQNH[LVWFRPTXRWHV
HGPXQGBOHDFK!
7KLV+HUYp )RRGIRU7RPRUURZ"+RZWKH6FLHQWLILF'LVFLSOLQHRI
0ROHFXODU*DVWURQRP\&RXOG&KDQJHWKH:D\ZH(DW1RYHPEHU
(0%2 5HSRUWV (XURSHDQ 0ROHFXODU %LRORJ\ 2UJDQL]DWLRQ
KWWSZZZQDWXUHFRPHPERUMRXUQDOYQIXOO
KWPO!
7RZHU-HUHPLDK&DOLIRUQLD'LVK:KDW,6DZDQG&RRNHGDWWKH
$PHULFDQ&XOLQDU\5HYROXWLRQ1HZ<RUN)UHH3UHVV
7ULOOLQ&DOYLQ&DQDGLDQ-RXUQDO
)XQQ\)RRG
1RYHPEHU7KH1HZ
<RUNHU
8. *RYHUQPHQW )RRG 6WDQGDUGV $JHQF\ 8.*)6$ 6RGLXP &KORULGH
0DUFK (DW :HOO %H :HOO KWWSZZZHDWZHOOJRYXNKHDOWK\GLHW
QXWULWLRQHVVHQWLDOVYLWDPLQVDQGPLQHUDOVVRGLXPFKORULGH!
86%XUHDXRI/DERU6WDWLVWLFV86%/6)RRGDQG%HYHUDJH6HUYLQJDQG
5HODWHG :RUNHUV 0DUFK KWWSZZZEOVJRYRRK)RRG3UHSDUDWLRQ
DQG6HUYLQJ)RRGDQGEHYHUDJHVHUYLQJDQGUHODWHGZRUNHUVKWP!
8QLWHG 6WDWHV 'HSDUWPHQW RI $JULFXOWXUH 86'$ %DVLFV IRU +DQGOLQJ
)RRG 6DIHO\ -XQH KWWSZZZIVLVXVGDJRY)DFWVKHHWV%DVLFVBIRUB
+DQGOLQJB)RRGB6DIHO\LQGH[DVS!
8QLYHUVLW\ RI $UL]RQD 8$ &XWWLQJ %RDUGV 3ODVWLF 9HUVXV :RRG
&RRSHUDWLYH ([WHQVLRQ &ROOHJH RI $JULFXOWXUH /LIH 6FLHQFHV
KWWSZHEDUFKLYHRUJZHEKWWSDJDUL]RQDHGXSXEVKHDO
WKIRRGVDIHW\D]KWPO!
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
YDQ :\KH -RKQ &KDUOHV 'DUZLQ *HQWOHPDQ 1DWXUDOLVW KWWSGDUZLQ
RQOLQHRUJXNGDUZLQKWPO!
9LGDO -RKQ
(FRSLUDWH
3DXO :DWVRQ LV LQ 'DQJHU RI /RVLQJ +LV %RDW
-XO\ 7KH 2EVHUYHU KWWSZZZJXDUGLDQFRXNHQYLURQPHQW
MXOHFRSLUDWHSDXOZDWVRQIODJVKLS!
BBBBB *UHHQSHDFH )LJKWV 6HD %DWWOH ZLWK 5LYDO $QWL:KDOLQJ 6KLS
-DQXDU\ 7KH *XDUGLDQ KWWSZZZJXDUGLDQFRXNHQYLURQPHQW
MDQZKDOLQJDFWLYLVWV!
9LHVWDG $QGUHDV :KHUH +RPH &RRNLQJ *HWV WKH &ROG 6KRXOGHU 0D\
:DVKLQJWRQSRVWFRP KWWSZZZZDVKLQJWRQSRVWFRPZSG\QFRQWHQW
DUWLFOH$5KWPO"VLG 67!
:DVKL6LGLJD 0DKD%$JHLE3RRU'LHW4XDOLW\DQG)RRG+DELWV$UH
5HODWHGWR,PSDLUHG1XWULWLRQDO6WDWXVLQWR<HDU2OG$GROHVFHQWVLQ
-HGGDK1XWULWLRQ5HVHDUFK
:DWVRQ 3DXO (DUWKIRUFH $Q (DUWK :DUULRUV *XLGH WR 6WUDWHJ\ /D
&DDGD&$&KDFR3UHVV
:HEHU 0D[ 7KH 3URWHVWDQW (WKLF DQG WKH 6SLULW RI &DSLWDOLVP 7DOFRWW
3DUVRQVWU1HZ<RUN6FULEQHU
:HOOHU&KULVWLDQ(5REHUW(6FRWW $GDP6+HUVK7KH8QUHPDUNDEOH
5HFRUG RI /LEHUDOL]HG 7UDGH 7DONLQJ 3RLQWV RQ *OREDO ,VVXHV D 5HDGHU
5LFKDUG+5REELQVHG%RVWRQ0$3HDUVRQ(GXFDWLRQ,QF
:+2 3UHYHQWLRQ RI )RRGERUQH 'LVHDVH )LYH .H\V WR 6DIHU )RRG
KWWSZZZZKRLQWIRRGVDIHW\FRQVXPHUNH\VHQ!
BBBBB :+2 7HFKQLFDO 5HSRUW 6HULHV 'LHW 1XWULWLRQ DQG WKH
3UHYHQWLRQ RI &KURQLF 'LVHDVHV *HQHYD 6ZLW]HUODQG -RLQW :+2)$2
([SHUW&RQVXOWDWLRQ
:LNLSHGLD :. &XOLQDU\ $UW 0D\ KWWSHQZLNLSHGLDRUJ
ZLNL&XOLQDU\BDUW!
BBBBBD&RRNLQJ0D\KWWSHQZLNLSHGLDRUJZLNL&RRNLQJ!
BBBBBE+DUYHVW0D\KWWSHQZLNLSHGLDRUJZLNL+DUYHVW!
BBBBBF $QLPDO 6ODXJKWHU 0D\ KWWSHQZLNLSHGLDRUJZLNL
$QLPDOBVODXJKWHU!
BBBBBG)RRG3UHVHUYDWLRQ0D\KWWSHQZLNLSHGLDRUJZLNL)RRGB
SUHVHUYDWLRQ!
BBBBBH)RRG3UHVHQWDWLRQ0D\KWWSHQZLNLSHGLDRUJZLNL)RRGB
SUHVHQWDWLRQ!
BBBBBI )RRG 6FLHQFH 0D\ KWWSHQZLNLSHGLDRUJZLNL)RRGB
VFLHQFH!
BBBBBJ $SKURGLVLDF 0D\ KWWSHQZLNLSHGLDRUJZLNL
$SKURGLVLDF!
%LEOLRJUDSK\
BBBBBK)RRG&KDLQ0D\KWWSHQZLNLSHGLDRUJZLNL)RRGBFKDLQ!
BBBBBL (FRORJLFDO 3\UDPLG 0D\ KWWSHQZLNLSHGLDRUJZLNL
(FRORJLFDOBS\UDPLG!
BBBBBM )RRG 3DLULQJ 0D\ KWWSHQZLNLSHGLDRUJZLNL)RRGB
SDLULQJ!
BBBBBN )RRG 6HFXULW\ 0D\ KWWSHQZLNLSHGLDRUJZLNL)RRGB
VHFXULW\!
BBBBBO 0DOWKXVLDQLVP 0D\ KWWSHQZLNLSHGLDRUJZLNL
0DOWKXVLDQLVP!
BBBBBP +XPDQH 6ODXJKWHU $FW 0D\ KWWSHQZLNLSHGLDRUJZLNL
+XPDQHB6ODXJKWHUB$FW!
BBBBBQ (WKLFV RI (DWLQJ 0HDW 0D\ KWWSHQZLNLSHGLDRUJZLNL
(WKLFVBRIBHDWLQJBPHDW!
BBBBBR )RRG 3KRWRJUDSK\ 0D\ KWWSHQZLNLSHGLDRUJZLNL
)RRGBSKRWRJUDSK\!
BBBBBS )RRG *XLGH 3\UDPLG 0D\ KWWSHQZLNLSHGLDRUJZLNL
)RRGBJXLGHS\UDPLG!
BBBBBT ,QFOXVLYH )LWQHVV 0D\ KWWSHQZLNLSHGLDRUJZLNL
,QFOXVLYHBILWQHVV!
BBBBBU *UHDW &KDLQ RI %HLQJ 0D\ KWWSHQZLNLSHGLDRUJZLNL
*UHDWBFKDLQBRIBEHLQJ!
BBBBBV 5DZ )RRGLVP 0D\ KWWSHQZLNLSHGLDRUJZLNL
5DZBIRRGLVP!
BBBBBW7KH'LVPDO6FLHQFH0D\KWWSHQZLNLSHGLDRUJZLNL7KHB
GLVPDOBVFLHQFH!
BBBBBX 1XWULWLRQDO (FRQRPLFV 0D\ KWWSHQZLNLSHGLDRUJZLNL
1XWULWLRQDOBHFRQRPLFV!
BBBBBY+LQGXLVP0D\KWWSHQZLNLSHGLDRUJZLNL+LQGXLVP!
BBBBBZ &XOLQDU\ 5HYROXWLRQ 0D\ KWWSHQZLNLSHGLDRUJZLNL
&XOLQDU\B5HYROXWLRQ!
BBBBB[ &DOLIRUQLD &XLVLQH 0D\ KWWSHQZLNLSHGLDRUJZLNL
&DOLIRUQLDBFXLVLQH!
BBBBB\ 1HZ $PHULFDQ &XLVLQH 0D\ KWWSHQZLNLSHGLDRUJZLNL
1HZB$PHULFDQB&XLVLQH!
BBBBB])DVW)RRG0D\KWWSHQZLNLSHGLDRUJZLNL)DVWBIRRG!
BBBBBDD )RRG 6DIHW\ 0D\ KWWSHQZLNLSHGLDRUJZLNL
)RRGBVDIHW\!
BBBBBEE *DVWURQRP\ 0D\ KWWSHQZLNLSHGLDRUJZLNL
*DVWURQRP\!
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
BBBBBFF 0ROHFXODU *DVWURQRP\ 0D\ KWWSHQZLNLSHGLDRUJZLNL
0ROHFXODUBJDVWURQRP\!
BBBBBGG
5DGLFDO
(QYLURQPHQWDOLVP
0D\
KWWSHQZLNLSHGLDRUJZLNL5DGLFDOBHQYLURQPHQWDOLVP!
BBBBBHH 6HD 6KHSKHUG 0D\ KWWSHQZLNLSHGLDRUJZLNL
6HDB6KHSKHUG!
BBBBBII (FR7HUURULVP 0D\ KWWSHQZLNLSHGLDRUJZLNL(FR
WHUURULVP!
BBBBBJJ )RRG 7HFKQRORJ\ -XQH KWWSHQZLNLSHGLDRUJZLNL
)RRGBWHFKQRORJ\!
BBBBBKK&DQQLQJ-XQHKWWSHQZLNLSHGLDRUJZLNL&DQQLQJ!
BBBBBLL )DVW )RRG 1DWLRQ -XQH KWWSHQZLNLSHGLDRUJZLNL
)DVWB)RRGB1DWLRQ!
BBBBBMM&XLVLQH-XQHKWWSHQZLNLSHGLDRUJZLNL&XLVLQH!
BBBBBNN *OREDO &XLVLQHV -XQH KWWSHQZLNLSHGLDRUJZLNL*OREDO
BFXLVLQHV!
BBBBBOO )XVLRQ &XLVLQH -XQH KWWSHQZLNLSHGLDRUJZLNL)XVLRQ
BFXLVLQH!
BBBBBQQ 'HVLJQ (OHPHQWV DQG 3ULQFLSOHV 6HSWHPEHU
KWWSHQZLNLSHGLDRUJZLNL'HVLJQBHOHPHQWVBDQGBSULQFLSOHV!
BBBBBRR ,QWHUSUHWDWLRQ /RJLF $SULO KWWSHQZLNLSHGLDRUJ
ZLNL,QWHUSUHWDWLRQB/RJLF!
BBBBBSS 8QVROYHG 3UREOHPV LQ /LQJXLVWLFV )HEUXDU\
KWWSHQZLNLSHGLDRUJZLNL8QVROYHGBSUREOHPVBLQBOLQJXLVWLFV!
BBBBB 3RVWKXPDQLVP 2FWREHU KWWSHQZLNLSHGLDRUJZLNL
3RVWKXPDQLVP!
BBBBBD 7UDQVKXPDQLVP 2FWREHU KWWSHQZLNLSHGLDRUJZLNL
7UDQVKXPDQLVP!
BBBBBE
/RZHVW
&RPPRQ
'HQRPLQDWRU
0DUFK
KWWSHQZLNLSHGLDRUJZLNL/HDVWBFRPPRQBGHQRPLQDWRU!
BBBBBF,QILQLW\1RYHPEHUKWWSHQZLNLSHGLDRUJZLNL,QILQLW\!
BBBBBG 7UDQVILQLWH 1XPEHU 1RYHPEHU KWWSHQZLNLSHGLDRUJ
ZLNL7UDQVILQLWHBQXPEHU!
BBBBBH
4XDQWXP
0HFKDQLFV
1RYHPEHU
KWWSHQZLNLSHGLDRUJZLNL4XDQWXPBPHFKDQLFV!
BBBBBI
&RSHQKDJHQ
,QWHUSUHWDWLRQ
1RYHPEHU
KWWSHQZLNLSHGLDRUJZLNL&RSHQKDJHQBLQWHUSUHWDWLRQ!
BBBBBJ
0DQ\
:RUOGV
,QWHUSUHWDWLRQ
1RYHPEHU
KWWSHQZLNLSHGLDRUJZLNL0DQ\B:RUOGVB,QWHUSUHWDWLRQ!
%LEOLRJUDSK\
BBBBBK
+\SHUVSDFH
6FLHQFH
)LFWLRQ
1RYHPEHU
KWWSHQZLNLSHGLDRUJZLNL+\SHUVSDFHBVFLHQFHBILFWLRQ!
BBBBBL 7LPH 7UDYHO 1RYHPEHU KWWSHQZLNLSHGLDRUJ
ZLNL7LPHBWUDYHO7LPHBGLODWLRQ!
BBBBBM :RUPKROH 1RYHPEHU KWWSHQZLNLSHGLDRUJZLNL
:RUPKROH!
BBBBB/LQJXLVWLFV0DUFKKWWSHQZLNLSHGLDRUJZLNL/LQJXLVWLFV!
:LNLYHUVLW\ :.9 :K\ 'LPHQVLRQV 1RYHPEHU
WWSHQZLNLYHUVLW\RUJZLNL:K\BBGLPHQVLRQV!
:LOOLDPV 5D\PRQG
7KH :RUNV RI $UW 7KHPVHOYHV
" $UW LQ 0RGHUQ
&XOWXUH $Q $QWKRORJ\ RI &ULWLFDO 7H[WV ) )UDVFLQD - +DUULV HG 1<
+DUSHU&ROOLQV3XEOLVKHUV
:LOVRQ
6FRWW
$QLPDOV
DQG
(WKLFV
-DQXDU\
KWWSZZZLHSXWPHGXDQLPHWK6+E!
:LQWHU *UHJ &RQWDPLQDWHG )RRG 0DNHV 0LOOLRQV ,OO 'HVSLWH $GYDQFHV
0DUFK 1HZ <RUN 7LPHV KWWSTXHU\Q\WLPHVFRPJVWIXOOSDJHKWPO"
VHF KHDOWK UHV ('')%$&$&%!
:LWWJHQVWHLQ/XGZLJ3KLORVRSKLFDO,QYHVWLJDWLRQV*(0$QVFRPEHDQG
55KHHVHGV*(0$QVFRPEHWU2[IRUG%ODFNZHOO
:LVH *HHN :,* :KDW LV )XVLRQ &XLVLQH" -XQH
KWWSZZZZLVHJHHNFRPZKDWLVIXVLRQFXLVLQHKWP!
:ROII-DQHW$HVWKHWLFVDQGWKH6RFLRORJ\RI$UW/RQGRQ*HRUJH$OOHQ
8QZLQ
:RQJ
&DWK\
5DZ
)RRG
'LHW
6HSWHPEHU
KWWSDOWPHGLFLQHDERXWFRPRGSRSXODUKHDOWKGLHWVD5DZB)RRGKWP!
:RQJ *UDFH &DQDGD
V 1DWLRQDO 'LVK &DORULHVDQG :RUWK (YHU\
%LWH" 2FWREHU KWWSDUWLFOHVFQQFRPZRUOGFDQDGD
SRXWLQHBBGLVKFKHHVHFXUGVIRLH"BV 30:25/'!
:RRGKDP .HUUH /XFN\ 2FHDQ &UDVK -DQXDU\ 7KH 1HZ =HDODQG
+HUDOGKWWSZZZQ]KHUDOGFRQ]ZRUOGQHZVDUWLFOHFIP"FBLG REMHFWLG
!
:UDQJKDP 5 1 &RQNOLQ%ULWWDLQ &RRNLQJ DV D %LRORJLFDO 7UDLW
&RPSDUDWLYH%LRFKHPLVWU\DQG3K\VLRORJ\3DUW$0ROHFXODU ,QWHJUDWLYH
3K\VLRORJ\
=DQGHQ 0 % - 6KXWHU 1 /HVWHU - 5DVPXVVHQ 3DWWHUQV RI )RRG
&KDLQ /HQJWK LQ /DNHV $ 6WDEOH ,VRWRSH 6WXG\ 7KH $PHULFDQ 1DWXUDOLVW
KWWSZZZGXPQHGXaWKUDELN9DQGHU=DQGHQ
HWDOSGI!
=HQDUL9LYLDQ :HOO 0HW 5DZ 0HDW +RRUDK IRU 5DZ 6HSWHPEHU
KWWSZZZYXHZHHNO\FRPDUWLFOHSKS"LG !
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
=KDQJ ; 0 ' 6WDPS 6 0LQNLQ HW DO 3URPRWLRQ RI $EHUUDQW &U\SW
)RFLDQG&DQFHULQ5DW&RORQE\7KHUPRO\]HG3URWHLQ-1DWO&DQFHU,QVW
KWWSMQFLR[IRUGMRXUQDOVRUJFJLSPLGORRNXS"YLHZ
ORQJ SPLG !
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
,1'(;
$
DGYHUWLVHPHQWDQGIRRG
SKRWRJUDSK\
VHHDOVR&XOLQDU\DUW
$IULFDQFXLVLQHDQGJOREDOFXLVLQHV
DIWHUSRVWPRGHUQLVP
VHH$IWHU3RVWPRGHUQLW\
DIWHUSRVWPRGHUQLW\
DQGH[LVWHQWLDOGLDOHFWLFV
IUHHGRPXQIUHHGRPDQG
HTXDOLW\LQHTXDOLW\
GLDOHFWLFV
ZHDOWKSRYHUW\
GLDOHFWLFV
FLYLOL]DWLRQEDUEDULW\
GLDOHFWLFV
RSSUHVVLRQVHOI
RSSUHVVLRQ
DQGFLYLOL]DWLRQDOKROLVP
VWUXFWXUH
WKHRULHV
DQGSRVWKXPDQFLYLOL]DWLRQ
YVSRVWKXPDQSRVW
FLYLOL]DWLRQ
DQGVXSHUFLYLOL]DWLRQV
DQGWKHILYHWKHVHVRI
SRVWFLYLOL]DWLRQ
DQGWKHWKHRUHWLFDOGHEDWHRQ
FLYLOL]DWLRQ
DQGWKHXQLILHGWKHRU\RI
HYHU\WKLQJDQGLWV
VROXWLRQWRWKHSUREOHPV
RIFRPSOH[LW\VXEMHFWLYLW\
FRQIOLFWDQGGLYHUVLW\
EDUEDULW\DQGSRVWFLYLOL]DWLRQ
&RSKHQKDJHQLQWHUSUHWDWLRQYV
(YHUHWWVLQWHUSUHWDWLRQ
IURPSUHPRGHUQLW\WR
DIWHUSRVWPRGHUQLW\LQ
FLYLOL]DWLRQ
WKHWULQLW\RI
SUHPRGHUQLW\
WKHWULQLW\RIPRGHUQLW\
WKHWULQLW\RI
SRVWPRGHUQLW\
WKHWULQLW\RI
DIWHUSRVWPRGHUQLW\
LQUHJDUGWRGLIIHUHQWNLQGVRI
FRQVFLRXVQHVV
IORDWLQJFRQVFLRXVQHVV
K\SHUVSDWLDO
FRQVFLRXVQHVV
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
XQIROGLQJ
XQFRQVFLRXVQHVV
LQUHODWLRQWRGLIIHUHQWFDXVHV
RISRVWFDSLWDOLVP
LQUHODWLRQWRGLIIHUHQWFDXVHV
RISRVWGHPRFUDF\
LQUHODWLRQWRGLIIHUHQWYHUVLRQV
RISRVWFDSLWDOLVP
LQUHODWLRQWRGLIIHUHQWYHUVLRQV
RISRVWGHPRFUDF\
LQUHODWLRQWRWKHGLVWLQFWLRQV
EHWZHHQFDSLWDOLVP
QRQFDSLWDOLVPDQG
SRVWFDSLWDOLVP
LQUHODWLRQWRWKHGLVWLQFWLRQV
EHWZHHQGHPRFUDF\
QRQGHPRFUDF\DQG
SRVWGHPRFUDF\
LQUHODWLRQWRWKHGLVWLQFWLRQV
EHWZHHQSRVWGHPRFUDF\
DQGSRVWFDSLWDOLVP
LQWKHFRQWH[WRIGLIIHUHQW
YHUVLRQVRISRVWKXPDQLW\
LQWKHFRQWH[WRI
SRVWKXPDQLVP
SRVWKXPDQLVPDQG
WUDQVKXPDQLVP
LQWKHFRQWH[WRIWKHGLVWLQFWLRQ
DPRQJILQLW\WUDQVILQLW\
DQGLQILQLW\
LQWKHFRQWH[WRIWKH
WHFKQRORJLFDOIURQWLHUVRI
WKHPLFURZRUOG
LQWKHFRQWH[WRIWKHUHDVRQVIRU
WKHDOWHUDWLRQRIVSDFHWLPH
LQWKHFRQWH[WRIWKHWKHRUHWLFDO
GHEDWHRQVSDFHWLPH
LQWKHFRQWH[WRIWKHWKHRUHWLFDO
VSHFXODWLRQVRIWKHFRVPRV
GLIIHUHQWYHUVLRQVRI
PXOWLYHUVHV
PDQ\ZRUOGVYV
PXOWLYHUVH
K\SHUVSDFHDQGLWV
FKDOOHQJH
SRVWFRVPRORJ\
LQWKHFRQWH[WRIWLPHWUDYHO
LQWRWKHIXWXUH
LQWRWKHSDVW
VHHDOVR&RQVFLRXVQHVV
KROLVWLFRUJDQL]DWLRQRIDQ
LQTXLU\PHWKRGRORJLFDO
KROLVPQDWXUHQXUWXUH
GHEDWHSRVWFLYLOL]DWLRQ
DIWHUSRVWPRGHUQL]DWLRQ
VHH$IWHU3RVWPRGHUQLW\
DJHQF\
VHH([LVWHQWLDOGLDOHFWLFV
DJHQWV
VHH&LYLOL]DWLRQ
FLYLOL]DWLRQDOSURMHFW
$JQVDWHUDQQD%ULWW
DJULFXOWXUHDQGQXWULWLRQ
DON\OQLWULWHVDQGV\QWKHWLF
DSKURGLVLDFV
$OOHQ7HG
$PHULFDQFXLVLQHDQGJOREDO
FXLVLQHV
$PV0D[
$QGHUVRQ:DOWHU
DQLPDOFRQVFLRXVQHVV
VHHDOVR&XOLQDU\DUW
DQLPDOVODXJKWHULQJ
,QGH[
VHH6ODXJKWHULQJ
DQLPDOVDQGFRRNLQJ
DSKURGLVLDFVDQGVH[XDOLW\
$SSHUW1LFRODV
DUWDQGVFLHQFHLQFXOLQDU\DUW
DUWRISUHVHQWDWLRQDQGIRRG
SKRWRJUDSK\
VHHDOVR&XOLQDU\DUW
$VLDQFXLVLQHDQGJOREDOFXLVLQHV
$VLDQIXVLRQFXLVLQH
$XVWUDOLDDQGUHJXODWRU\
HQIRUFHPHQWV
$XVWUDOLDQFXLVLQH
DXWKRULWDULDQOLEHUDOGHPRFUDF\
VHH'HPRFUDF\HPSLUHV
SRVWGHPRFUDF\
%
EDFWHULDDQGUDZIRRGLVP
EDNLQJDQGFRRNLQJ
%DRIX3HWHU
DQGWKHGHEDWHRQWKHVXEMHFW
DQGWKHWKHRULHVRQ
FLYLOL]DWLRQDOKROLVP
EDUEDULW\
VHH&LYLOL]DWLRQ
%DUURZ-
EHDQVDQGIRRGJXLGHS\UDPLG
VHHDOVR&XOLQDU\DUW
EHDXWLIXOWKH
DQGH[LVWHQWLDOGLDOHFWLFV
IUHHGRPXQIUHHGRPDQG
HTXDOLW\LQHTXDOLW\
GLDOHFWLFV
IURPSUHPRGHUQLW\WR
DIWHUSRVWPRGHUQLW\LQ
FLYLOL]DWLRQ
WKHWULQLW\RI
SUHPRGHUQLW\
WKHWULQLW\RIPRGHUQLW\
WKHWULQLW\RI
SRVWPRGHUQLW\
WKHWULQLW\RI
DIWHUSRVWPRGHUQLW\
VHHDOVR+ROLVWLFRUJDQL]DWLRQ
RIDQHQTXLU\
EHKDYLRU
VHH&RQVFLRXVQHVVKROLVWLF
RUJDQL]DWLRQRIDQHQTXLU\
EHLQJ
VHH&RQVFLRXVQHVV
EHORQJLQJ
VHH&RQVFLRXVQHVV
EHYHUDJHVDQGIRRGVW\OH
WHFKQLTXHV
ELRPDVV
ELRORJLFDOWKH
VHH+ROLVWLFRUJDQL]DWLRQRIDQ
LQTXLU\
EODFNKROH
VHH0XOWLYHUVH
%ODNLH3
%URRNILHOG+
%RKU1LHOV
ERLOLQJDQGFRRNLQJ
ERWXOLQXPDQGIRRGSRLVRQLQJ
EUHPHODQRWLGHDQGV\QWKHWLF
DSKURGLVLDFV
%XQJH0DULR
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
&
&DOLIRUQLDFXLVLQHDQGWKHFXOLQDU\
UHYROXWLRQ
VHHDOVR&XOLQDU\DUW
&DQDGLDQFXLVLQH
FDQQLQJDQGIRRGWHFKQRORJ\
&DQWRU*HRUJ
&DSLWDOLVP
VHH$IWHUSRVWPRGHUQLW\
SRVWFDSLWDOLVP
SRVWGHPRFUDF\
FDSLWDOLVWPRGHUQLW\
VHH0RGHUQLW\SRVWFDSLWDOLVP
FDSLWDOLVWSRVWPRGHUQLW\
VHH3RVWPRGHUQLW\
SRVWFDSLWDOLVP
FDUERK\GUDWHVDQGFRRNLQJ
FDUFLQRJHQVDQGFRRNLQJ
FDUHHUVLQFXOLQDU\DUW
&DUO\OH7KRPDV
FDVKFURSSLQJDQGQXWULWLRQ
VHHDOVR&XOLQDU\DUW
&HQWUDO$PHULFDQFXLVLQH
&KDJQRQ1DSROHRQ
FKHPLFDOWKH
VHH+ROLVWLFRUJDQL]DWLRQRIDQ
LQTXLU\
FKHPLFDOVODXJKWHU
&KH]3DQLVVH
&KLQDDQGUHJXODWRU\HQIRUFHPHQWV
&KLQHVHFXLVLQH
&KLQHVHWDNHDZD\DQGIDVWIRRG
FXLVLQH
FLYLOL]DWLRQ
DQGH[LVWHQWLDOGLDOHFWLFV
IUHHGRPXQIUHHGRPDQG
HTXDOLW\LQHTXDOLW\
GLDOHFWLFV
ZHDOWKSRYHUW\
GLDOHFWLFV
FLYLOL]DWLRQEDUEDULW\
GLDOHFWLFV
RSSUHVVLRQVHOI
RSSUHVVLRQ
DQGFLYLOL]DWLRQDOKROLVP
VWUXFWXUH
WKHRULHV
DQGSRVWKXPDQFLYLOL]DWLRQ
YVSRVWKXPDQSRVW
FLYLOL]DWLRQ
DQGVXSHUFLYLOL]DWLRQV
DQGWKHILYHWKHVHVRI
SRVWFLYLOL]DWLRQ
DQGWKHWKHRUHWLFDOGHEDWHRQ
FLYLOL]DWLRQ
DQGWKHXQLILHGWKHRU\RI
HYHU\WKLQJDQGLWV
VROXWLRQWRWKHSUREOHPV
RIFRPSOH[LW\VXEMHFWLYLW\
FRQIOLFWDQGGLYHUVLW\
EDUEDULW\DQGSRVWFLYLOL]DWLRQ
&RSKHQKDJHQLQWHUSUHWDWLRQYV
(YHUHWWVLQWHUSUHWDWLRQ
IURPSUHPRGHUQLW\WR
DIWHUSRVWPRGHUQLW\LQ
FLYLOL]DWLRQ
WKHWULQLW\RI
SUHPRGHUQLW\
WKHWULQLW\RIPRGHUQLW\
WKHWULQLW\RI
SRVWPRGHUQLW\
,QGH[
WKHWULQLW\RI
DIWHUSRVWPRGHUQLW\
LQUHJDUGWR
KDYLQJ
EHORQJLQJ
EHLQJ
LQUHJDUGWRGLIIHUHQWNLQGVRI
FRQVFLRXVQHVV
IORDWLQJFRQVFLRXVQHVV
K\SHUVSDWLDO
FRQVFLRXVQHVV
XQIROGLQJ
XQFRQVFLRXVQHVV
LQUHODWLRQWRGLIIHUHQWFDXVHV
RISRVWFDSLWDOLVP
LQUHODWLRQWRGLIIHUHQWFDXVHV
RISRVWGHPRFUDF\
LQUHODWLRQWRGLIIHUHQWYHUVLRQV
RISRVWFDSLWDOLVP
LQUHODWLRQWRGLIIHUHQWYHUVLRQV
RISRVWGHPRFUDF\
LQUHODWLRQWRWKHGLVWLQFWLRQV
EHWZHHQFDSLWDOLVP
QRQFDSLWDOLVPDQG
SRVWFDSLWDOLVP
LQUHODWLRQWRWKHGLVWLQFWLRQV
EHWZHHQGHPRFUDF\
QRQGHPRFUDF\DQG
SRVWGHPRFUDF\
LQUHODWLRQWRWKHGLVWLQFWLRQV
EHWZHHQSRVWGHPRFUDF\
DQGSRVWFDSLWDOLVP
LQWKHFRQWH[WRIGLIIHUHQW
YHUVLRQVRISRVWKXPDQLW\
LQWKHFRQWH[WRI
SRVWKXPDQLVP
SRVWKXPDQLVPDQG
WUDQVKXPDQLVP
LQWKHFRQWH[WRIWKHGLVWLQFWLRQ
DPRQJILQLW\WUDQVILQLW\
DQGLQILQLW\
LQWKHFRQWH[WRIWKH
WHFKQRORJLFDOIURQWLHUVRI
WKHPLFURZRUOG
LQWKHFRQWH[WRIWKHUHDVRQVIRU
WKHDOWHUDWLRQRIVSDFHWLPH
LQWKHFRQWH[WRIWKHWKHRUHWLFDO
GHEDWHRQVSDFHWLPH
LQWKHFRQWH[WRIWKHWKHRUHWLFDO
VSHFXODWLRQVRIWKHFRVPRV
GLIIHUHQWYHUVLRQVRI
PXOWLYHUVHV
PDQ\ZRUOGVYV
PXOWLYHUVH
K\SHUVSDFHDQGLWV
FKDOOHQJH
SRVWFRVPRORJ\
LQWKHFRQWH[WRIWLPHWUDYHO
LQWRWKHIXWXUH
LQWRWKHSDVW
VHHDOVR&RQVFLRXVQHVV
KROLVWLFRUJDQL]DWLRQRIDQ
LQTXLU\PHWKRGRORJLFDO
KROLVPQDWXUHQXUWXUH
GHEDWHSRVWFLYLOL]DWLRQ
FLYLOL]DWLRQKROLVP
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
DQG
VWUXFWXUH
WKHRULHV
VHHDOVR&LYLOL]DWLRQ
PHWKGRORJLFDOKROLVP
FLYLOL]LQJSURFHVV
VHH&LYLOL]DWLRQH[LVWHQWLDO
GLDOHFWLFVKROLVWLF
RUJDQL]DWLRQRIDQLQTXLU\
FLYLOL]DWLRQDOSURMHFW
VHHDOVR&LYLOL]DWLRQ
H[LVWHQWLDOGLDOHFWLFV
&OHPHV$WWHQGHH)MDODU
&ORVWULGLXPERWXOLQXPDQGIRRG
SRLVRQLQJ
FRJQLWLRQ
VHH&RQVFLRXVQHVV
FRJQLWLYHSDUWLDOLW\
DQGFLYLOL]DWLRQDOKROLVP
VWUXFWXUH
WKHRULHV
VHHDOVR&RQVFLRXVQHVV
FRPPRGLWL]DWLRQDQGQXWULWLRQ
FRPSURPLVHIDOODF\WKH
VHH([LVWHQWLDOGLDOHFWLFV
PHWKRGROJRFLDOKROLVP
FRQFHSWLRQ
VHH([LVWHQWLDO'LDOHFWLFV
FRQVFLRXVQHVV
DIWHUDXWKRULWDULDQOLEHUDO
GHPRFUDF\
DQGGLIIHUHQWHPSLUHV
DQGH[LVWHQWLDOGLDOHFWLFV
IUHHGRPXQIUHHGRPDQG
HTXDOLW\LQHTXDOLW\
GLDOHFWLFV
ZHDOWKSRYHUW\
GLDOHFWLFV
FLYLOL]DWLRQEDUEDULW\
GLDOHFWLFV
RSSUHVVLRQVHOI
RSSUHVVLRQ
DQGFLYLOL]DWLRQDOKROLVP
VWUXFWXUH
WKHRULHV
DQGSRVWKXPDQFLYLOL]DWLRQ
YVSRVWKXPDQSRVW
FLYLOL]DWLRQ
DQGVXSHUFLYLOL]DWLRQV
DQGWKHILYHWKHVHVRI
SRVWFLYLOL]DWLRQ
DQGWKHWKHRUHWLFDOGHEDWHRQ
FLYLOL]DWLRQ
DQGWKHXQLILHGWKHRU\RI
HYHU\WKLQJDQGLWV
VROXWLRQWRWKHSUREOHPV
RIFRPSOH[LW\VXEMHFWLYLW\
FRQIOLFWDQGGLYHUVLW\
EDUEDULW\DQGSRVWFLYLOL]DWLRQ
&RSKHQKDJHQLQWHUSUHWDWLRQYV
(YHUHWWVLQWHUSUHWDWLRQ
IURPSUHPRGHUQLW\WR
DIWHUSRVWPRGHUQLW\LQ
FLYLOL]DWLRQ
WKHWULQLW\RI
SUHPRGHUQLW\
WKHWULQLW\RIPRGHUQLW\
WKHWULQLW\RI
SRVWPRGHUQLW\
WKHWULQLW\RI
DIWHUSRVWPRGHUQLW\
LQGLIIHUHQWPHQWDOIDFXOWLHV
,QGH[
FRJQLWLRQ
HPRWLRQ
EHKDYLRU
LQGLIIHUHQWPHQWDOVWDWHV
FRQVFLRXVQHVV
VXEFRQVFLRXVQHVV
XQFRQVFLRXVQHVV
LQUHJDUGWR
KDYLQJ
EHORQJLQJ
EHLQJ
LQUHJDUGWRGLIIHUHQWNLQGVRI
FRQVFLRXVQHVV
IORDWLQJFRQVFLRXVQHVV
K\SHUVSDWLDO
FRQVFLRXVQHVV
XQIROGLQJ
XQFRQVFLRXVQHVV
LQUHODWLRQWR
LWVFRQFHSWXDO
GLPHQVLRQV
LWVWKHRUHWLFDOOHYHOV
LWVWKHPDWLFLVVXHV
LQUHODWLRQWRFUHDWLYHWKLQNLQJ
LQUHODWLRQWRKXPRU
LQUHODWLRQWRPXOWLORJLFDO
OHDUQLQJ
LQUHODWLRQWRWKHERG\EUDLQ
PLQGDQGVSLULW
LQUHODWLRQWRWKHPDUWLDOERG\
LQUHODWLRQWRPLQGJDPHV
LQUHODWLRQWRWKHVH[XDOERG\
LQWKHFRQWH[WRIGLIIHUHQW
YHUVLRQVRISRVWKXPDQLW\
LQWKHFRQWH[WRI
SRVWKXPDQLVP
SRVWKXPDQLVPDQG
WUDQVKXPDQLVP
VHHDOVR([LVWHQWLDOGLDOHFWLFV
PHWKRGRORJLFDOKROLVP
FRQVXPHUODEHOLQJ
FRRNLQJ
VHH&XOLQDU\DUW
FRRNLQJFRQWURO
FRVPLFKHJHPRQ\
VHH3RVWGHPRFUDF\
FRVPRORJLFDOWKH
VHH+ROLVWLFRUJDQL]DWLRQRIDQ
LQTXLU\
FRVPRORJ\
LQWKHFRQWH[WRIWKHGLVWLQFWLRQ
DPRQJILQLW\WUDQVILQLW\
DQGLQILQLW\
LQWKHFRQWH[WRIWKH
WHFKQRORJLFDOIURQWLHUVRI
WKHPLFURZRUOG
LQWKHFRQWH[WRIWKHUHDVRQVIRU
WKHDOWHUDWLRQRIVSDFHWLPH
LQWKHFRQWH[WRIWKHWKHRUHWLFDO
GHEDWHRQVSDFHWLPH
LQWKHFRQWH[WRIWKHWKHRUHWLFDO
VSHFXODWLRQVRIWKHFRVPRV
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
GLIIHUHQWYHUVLRQVRI
PXOWLYHUVHV
PDQ\ZRUOGVYV
PXOWLYHUVH
K\SHUVSDFHDQGLWV
FKDOOHQJH
SRVWFRVPRORJ\
LQWKHFRQWH[WRIWLPHWUDYHO
LQWRWKHIXWXUH
LQWRWKHSDVW
VHHDOVR0XOWLYHUVH
FRVPRV
VHH+ROLVWLFRUJDQL]DWLRQRIDQ
LQTXLU\PXOWLYHUVH
FRXQWHUHOLWLVWV
VHH3RVWFDSLWDOLVP
SRVWHPRFRUDF\
FRXQWHUYDLOLQJIRUFHV
VHH$IWHU3RVWPRGHUQLW\
FUHDWLYHWHFKQLTXHV
VHH&RQVFLRXVQHVV
FUHDWLYHWKLQNLQJ
VHH&RQVFLRXVQHVV
FUHDWLYHWUDLW
VHH&RQVFLRXVQHVV
FURFLQDQGV\QWKHWLFDSKURGLVLDFV
&XEDDQGFDVKFURSSLQJ
FXLVLQH
VHH&XOLQDU\DUW
FXLVLQHDQGFXOWXUDOYDULDWLRQV
VHHDOVR&XOLQDU\DUW
FXOLQDU\DUWWKHGHEDWHRQ
DERXWGHILQLWLRQDQGKLVWRU\RI
FXOLQDU\DUW
DERXWJHQHUDOFKDUDFWHULVWLFVRI
FXOLQDU\DUW
DUWDQGVFLHQFH
VXEILHOGV
FDUHHUV
DQGFODULILFDWLRQVRQWKHERRN
LQFRQYHUVDWLRQZLWK
SUHYLRXVERRNV
FDVHVWXGLHVH[DPSOHV
GHWDLOHGDQDO\VLVYV
RYHUDOOV\QWKHVLV
GLVWQFWLYHIHDWXUHVRI
XVLQJTXRWDWLRQV
WZRGLIILFXOWLHVLQ
XQGHUVWDQGLQJ
UHSHWLWLRQ
XVHRIQHRORJLVPV
DQGPHWDWKHRU\
LQUHODWLRQWRP\XQLILHG
WKHRU\RIHYHU\WKLQJ
LQUHODWLRQWRV\VWHPV
DSSURDFK
LQUHODWLRQWRWKH
FODVVLILFDWLRQRIWKHRU\
DQGWKHWKHRUHWLFDOGHEDWH
WKHPHQWDO
DUJXPHQW
WKHQDWXUDODUJXPHQW
WKHVRFLHWDODUJXPHQW
WKHFXOWXUDODUJXPHQW
WKHLQTXLVLWLYHDUJXPHQW
DIRUPDOQHVV
LQIRUPDOQHVV
SULQFLSOH
,QGH[
EDEVROXWHQHVV
UHODWLYHQHVVSULQFLSOH
JILQLWHQHVV
WUDQVILQLWHQHVV
SULQFLSOH
FSDUWLDOWL\WRWDOLW\
SULQFLSOH
KSUHFLVHQHVV
YDJXHQHVVSULQFLSOH
GSUHGLFWDELOLW\
XQSUHGLFWDELOLW\
SULQFLSOH
LVLPSOHQHVV
FRPSOLFDWHGQHVV
SULQFLSOH
HH[SOLFDELOLW\
LQH[SLFDELOLW\
SULQFLSOH
MRSHQQHVVKLGGHQQHVV
SULQFLSOH
IILFWLRQUHDOLW\
SULQFLSOH
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
NGHQVHQHVV
HPSWLQHVVSULQFLSOH
SWKHRU\SUD[LV
SULQFLSOH
OFKDQJHFRQVWDQF\
SULQFLSOH
TFRQYHQWLRQQRYHOW\
SULQFLSOH
PRUGHUFKDRV
SULQFLSOH
UHYROXWLRQ
WUDQVIRUPDWLRQ
SULQFLSOH
QVORZQHVVTXLFNQHVV
SULQFLSOH
VV\PPHWU\DV\PPHWU\
SULQFLSOH
RH[SDQVLRQ
FRQWUDFWLRQ
SULQFLSOH
WVRIWQHVVKDUGQHVV
,QGH[
SULQFLSOH
\VDPHGLIIHUHQFH
SULQFLSOH
XVHULRXVQHVV
SOD\IXOQHVV
SULQFLSOH
]VWDELOLW\UHDFWLRQ
SULQFLSOH
YDFWLYHQHVV
LQDFWLYHQHVV
SULQFLSOH
DDIXQFWLRQDOLW\
QRQIXQFWLRQDOLW\
SULQFLSOH
ZVHOIQHVV
RWKHUQHVV
SULQFLSOH
EESRVWKXPDQ
LQTXLVLWLRQ
LLQWKHFRQWH[WRI
LQJUHGLHQWVDQG
WHFKQLTXHV
LLWKHXVHRIIRXU
[UHJUHVVLRQ
PDLQSHUVSHFWLYHV
SURJUHVVLRQ
SULQFLSOH
LLLQRSULYLOHJHIRU
DQ\WKHRU\
LYWKHQHHGWRPHHW
QHZFKDOOHQJHVDV
SRVHGE\P\RWKHU
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
YLVLRQV
YWKHQHHGWRJR
EH\RQG
DWKHRSSRVLWHV
FDQQRWH[LVW
ZLWKRXWHDFK
RWKHU
EWKHQHHGWR
WUDQVFHQG
FQLQHJUHDW
IXWXUH
WUDQVIRUPDWLRQV
RIZDVWH
LQUHODWLRQWRLQJUHGLHQWV
IURPWKHIRXUSHUVSHFWLYHV
WKHPLQG
DLQJUHGLHQWV
DSKURGLVLDFVDQG
VH[XDOLW\
ELQJUHGLHQWVIRRG
JXLGHS\UDPLGDQG
QXWUWLRQ
QDWXUH
DLQJUHGLHQWVIRRG
FKDLQVDQGHFRORJLFDO
S\UDPLG
ELQJUHGLHQWVQDWXUH
DQGUDZIRRG
VRFLHW\
DLQJUHGLHQWVIRRG
VXSSO\DQG
0DOWKXVLDQLVP
ELQJUHGLHQWVIRRG
VHFXULW\DQG
QXWULWLRQDOHFRQRPLFV
FXOWXUH
DLQJUHGLHQWVGLHWDQG
WKHHWKLFVRIHDWLQJ
PHDW
ELQJUHGLHQWV
&DOLIRUQLDFXLVLQH
DQGWKHFXOLQDU\
UHYROXWLRQ
LQUHODWLRQWRWHFKQLTXHV
IURPWKHIRXUSHUVSHFWLYHV
WKHPLQG
DWHFKQLTXHVGLVHDVH
DQGIRRGVDIHW\
EWHFKQLTXHVFRRNLQJ
DQGKHDOWK
QDWXUH
DWHFKQLTXHVPROHFXODU
JDVWURQRP\DQGIRRG
SDLULQJ
EWHFKQLTXHVDQLPDO
VODXJKWHUDQGUDGLFDO
HQYLURQPHQWDOLVP
VRFLHW\
DWHFKQLTXHV
SUHVHUYDWLRQDQGIRRG
WHFKQRORJ\
EWHFKQLTXHVIDVWIRRG
DQGWKHIRRGLQGXVWU\
FXOWXUH
DWHFKQLTXHVIRRG
SKRWRJUDSK\DQGWKH
DUWRISUHVHQWDWLRQ
EWHFKQLTXHVFXLVLQH
DQGFXOWXUDO
,QGH[
YDULDWLRQV
LQWKHFRQWH[WRIGLIIHUHQW
YHUVLRQVRISRVWKXPDQLW\
LQWKHFRQWH[WRI
SRVWKXPDQLVP
SRVWKXPDQLVPDQG
WUDQVKXPDQLVP
VHHDOVR&RQVFLRXVQHVV
H[LVWHQWLDOGLDOHFWLFV
PHWKRGRORJLFDOKROLVP
FXOLQDU\UHYROXWLRQ
VHHDOVR&XOLQDU\DUW
FXOWXUDOWKH
VHH+ROLVWLFRUJDQL]DWLRQRIDQ
LQTXLU\
FXOWXUDOYDULDWLRQVDQGFXLVLQH
VHHDOVR&XOLQDU\DUW
FXOWXUH
VHH&LYLOL]DWLRQKROLVWLF
RUJDQL]DWLRQRIDQLQTXLU\
F\ERUJV
LQWKHFRQWH[WRIGLIIHUHQW
YHUVLRQVRISRVWKXPDQLW\
LQWKHFRQWH[WRI
SRVWKXPDQLVP
SRVWKXPDQLVPDQG
WUDQVKXPDQLVP
VHHDOVR$IWHUSRVWPRGHUQLW\
SRVWFDSLWDOLVP
SRVWFLYLOL]DWLRQ
SRVWGHPRFUDF\
SRVWKXPDQVPXOWLYHUVH
F\FOLFDOSURJUHVVLRQ
DQGFLYLOL]DWLRQDOKROLVP
VWUXFWXUH
WKHRULHV
RIHPSLUHEXLOGLQJ
RIKHJHPRQ\
RIPLJUDWLRQ
RIV\VWHPLQWHJUDWLRQDQG
IUDJPHQWDWLRQ
VHHDOVR&LYLOL]DWLRQ
H[LVWHQWLDOGLDOHFWLFV
PHWKRGRORJLFDO
KROVLPSRVWFLYLOL]DWLRQ
'
GDLU\DQGIRRGJXLGHS\UDPLG
GDUNHQHUJ\
VHH0XOWLYHUVH
GDUNPDWWHU
VHH0XOWLYHUVH
'DUZLQ&KDUOHV
'DUZLQLDQHYROXWLRQ
VHH1DWXUHQXUWXUHGHEDWH
'DYLGVRQ'RQDOG
GHFDIIHLQDWLRQDQGIRRGWHFKQRORJ\
GHJUHHVRIWUXWK
DQGSULQFLSOHVDVVKRUWFXWV
VHHDOVR([LVWHQWLDOGLDOHFWLFV
GHORFDOL]DWLRQDQGQXWULWLRQ
GHPRFUDF\
DIWHUDXWKRULWDULDQOLEHUDO
GHPRFUDF\
DQGGLIIHUHQWHPSLUHV
VHHDOVR3RVWGHPRFUDF\
'HQQHWW'DQLHO
'HZH\.
GLDOHFWLFV
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
VHH([LVWHQWLDOGLDOHFWLFV
GLFWDWRUVKLSDQGIRRGVHFXULW\
GLHW
DQGFRRNLQJ
DQGWKHHWKLFVRIHDWLQJPHDW
VHHDOVR&XOLQDU\DUW
GLVHDVHDQGIRRGVDIHW\
VHHDOVR&XOLQDU\DUW
'ROO5LFKDUG
GULYHLQUHVWDXUDQWV
'XUDQG3HWHU
(
HFOHWLFIXVLRQFXLVLQH
VHHDOVR&XOLQDU\DUW
HFRORJLFDOS\UDPLGDQGIRRGFKDLQV
VHHDOVR&XOLQDU\DUW
HFRQRPLFWKH
VHH,QVWLWXWLRQDO
HFRQRPLFUHYROXWLRQV
VHH&LYLOL]DWLRQDOSURMHFW
(GJDU:DOWHU
(KUOLFK3DXO
(LQVWHLQ$OEHUW
HOHFWULFDOVODXJKWHU
HPRWLRQ
VHH&RQVFLRXVQHVV
HPRWLRQDOQRQQHXWUDOLW\
VHH&RQVFLRXVQHVV
HPSLUHV
VHHDOVR$XWKRULWDULDQOLEHUDO
GHPRFUDF\GHPRFUDF\
SRVWGHPRFUDF\
HQHUJ\
VHH0XOWLYHUVH
HQYLURQPHQWDOLVP
DQGDQLPDOVODXJKWHUDQG
UDGLFDOHQYLURQPHQWDOLVP
DQGWKHHWKLFVRIHDWLQJPHDW
VHHDOVR&XOLQDU\DUW
HSLVWHPLFDEVROXWLVP
VHH0HWKRGRORJLFDOKROLVP
HSLVWHPLFHPHUJHQFLVP
VHH0HWKRGRORJLFDOKROLVP
HSLVWHPLFKLVWRULFLVP
VHH0HWKRGRORJLFDOKROLVP
HSLVWHPLFQRQVXEMHFWLYLVP
VHH0HWKRGRORJLFDOKROLVP
HSLVWHPLFREMHFWLYLVP
VHH0HWKRGRORJLFDOKROLVP
HSLVWHPLFUHGXFWLRQLVP
VHH0HWKRGRORJLFDOKROLVP
HSLVWHPLFUHODWLYLVP
VHH0HWKRGRORJLFDOKROLVP
HSLVWHPLFVXEMHFWLYLVP
VHH0HWKRGRORJLFDOKROLVP
HSLVWHPRORJ\
VHH([LVWHQWLDOGLDOHFWLFV
PHWKRGRORJLFDOKROLVP
HTXDOLW\
VHH$XWKRULWDULDQOLEHUDO
GHPRFUDF\GHPRFUDF\
HPSLUHVH[LVWHQWLDO
GLDOHFWLFV
SRVWFDSLWDOLVP
SRVWGHPRFUDF\
HWKLFVRIHDWLQJPHDWDQGIRRG
FRQVXPSWLRQ
(XURSHDQFXLVLQHDQGJOREDO
FXLVLQHV
(XURSHDQ8QLRQDQGUHJXODWRU\
HQIRUFHPHQWV
(YHUHWW+XJK
HYHU\GD\WKH
DQGH[LVWHQWLDOGLDOHFWLFV
IUHHGRPXQIUHHGRPDQG
HTXDOLW\LQHTXDOLW\
,QGH[
GLDOHFWLFV
ZHDOWKSRYHUW\
GLDOHFWLFV
FLYLOL]DWLRQEDUEDULW\
GLDOHFWLFV
RSSUHVVLRQVHOI
RSSUHVVLRQ
IURPSUHPRGHUQLW\WR
DIWHUSRVWPRGHUQLW\LQ
FLYLOL]DWLRQ
WKHWULQLW\RI
SUHPRGHUQLW\
WKHWULQLW\RIPRGHUQLW\
WKHWULQLW\RI
SRVWPRGHUQLW\
WKHWULQLW\RI
DIWHUSRVWPRGHUQLW\
VHHDOVR+ROLVWLFRUJDQL]DWLRQ
RIDQHQTXLU\
HYROXWLRQ
VHH1DWXUHQXUWXUHGHEDWH
HYROXWLRQRIFRRNLQJ
H[LVWHQWLDOGLDOHFWLFV
DQG
IUHHGRPXQIUHHGRPDQG
HTXDOLW\LQHTXDOLW\
GLDOHFWLFV
ZHDOWKSRYHUW\
GLDOHFWLFV
FLYLOL]DWLRQEDUEDULW\
GLDOHFWLFV
RSSUHVVLRQVHOI
RSSUHVVLRQ
DQGFLYLOL]DWLRQDOKROLVP
VWUXFWXUH
WKHRULHV
DQGSRVWKXPDQFLYLOL]DWLRQ
YVSRVWKXPDQSRVW
FLYLOL]DWLRQ
DQGVXSHUFLYLOL]DWLRQV
DQGWKHILYHWKHVHVRI
SRVWFLYLOL]DWLRQ
DQGWKHWKHRUHWLFDOGHEDWHRQ
FLYLOL]DWLRQ
DQGWKHXQLILHGWKHRU\RI
HYHU\WKLQJDQGLWV
VROXWLRQWRWKHSUREOHPV
RIFRPSOH[LW\VXEMHFWLYLW\
FRQIOLFWDQGGLYHUVLW\
EDUEDULW\DQGSRVWFLYLOL]DWLRQ
&RSKHQKDJHQLQWHUSUHWDWLRQYV
(YHUHWWVLQWHUSUHWDWLRQ
IURPSUHPRGHUQLW\WR
DIWHUSRVWPRGHUQLW\LQ
FLYLOL]DWLRQ
WKHWULQLW\RI
SUHPRGHUQLW\
WKHWULQLW\RIPRGHUQLW\
WKHWULQLW\RI
SRVWPRGHUQLW\
WKHWULQLW\RI
DIWHUSRVWPRGHUQLW\
LQUHJDUGWRLWVFRQFHSWLRQ
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
DQGEDVLFFRQFHSWV
DQGWKHRQWLFGLVSXWH
GHILQLWLRQVRIPHWKRG
VWUXFWXUHSURFHVV
DJHQF\DQGRXWFRPH
LQUHJDUGWRLWVSUDJPDWLFV
WKHRU\DQGPHWDWKHRU\
WKHRUHWLFDODSSOLFDWLRQ
DVRFLHW\
EFXOWXUH
FWKHPLQG
GQDWXUH
HWKHUHVW
GLUHFWLQGLUHFW
DSSOLFDWLRQ
PXOWLSOHOHYHOVRI
DSSOLFDWLRQ
LQUHJDUGWRLWVVHPDQWLFVRU
RQWRVHPDQWLFV
LQUHJDUGWRLWVV\QWD[
RQWRPHWKRGRORJ\DQG
RQWRORJLF
PHWKRG
DIRUPDOQHVV
LQIRUPDOQHVV
SULQFLSOH
EDEVROXWHQHVV
UHODWLYHQHVVSULQFLSOH
FSDUWLDOWL\WRWDOLW\
SULQFLSOH
GSUHGLFWDELOLW\
XQSUHGLFWDELOLW\
SULQFLSOH
HH[SOLFDELOLW\
LQH[SLFDELOLW\
SULQFLSOH
IILFWLRQUHDOLW\
SULQFLSOH
,QGH[
VWUXFWXUH
DILQLWHQHVV
WUDQVILQLWHQHVV
SULQFLSOH
SURFHVV
DFKDQJHFRQVWDQF\
SULQFLSOH
ESUHFLVHQHVV
YDJXHQHVVSULQFLSOH
ERUGHUFKDRV
SULQFLSOH
FVLPSOHQHVV
FRPSOLFDWHGQHVV
SULQFLSOH
FVORZQHVVTXLFNQHVV
SULQFLSOH
GRSHQQHVVKLGGHQQHVV
SULQFLSOH
GH[SDQVLRQ
FRQWUDFWLRQ
SULQFLSOH
HGHQVHQHVV
HPSWLQHVVSULQFLSOH
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
DJHQF\
DWKHRU\SUD[LV
SULQFLSOH
IVHULRXVQHVV
SOD\IXOQHVV
SULQFLSOH
EFRQYHQWLRQQRYHOW\
SULQFLSOH
JDFWLYHQHVV
LQDFWLYHQHVV
SULQFLSOH
FHYROXWLRQ
WUDQVIRUPDWLRQ
SULQFLSOH
KVHOIQHVV
RWKHUQHVV
SULQFLSOH
GV\PPHWU\DV\PPHWU\
SULQFLSOH
RXWFRPH
DUHJUHVVLRQ
SURJUHVVLRQ
SULQFLSOH
HVRIWQHVVKDUGQHVV
SULQFLSOH
,QGH[
FUHDWLQJQHZSULQFLSOHV
EVDPHGLIIHUHQFH
SULQFLSOH
DVVKRUWFXWV
DVIDPLO\UHVHPEODQFHV
GLDOHFWLFFRQVWUDLQWV
LPSRVHGE\RQWRORJLFDO
SULQFLSOHV
FVWDELOLW\UHDFWLRQ
VSHFLILFYVJHQHUDO
SULQFLSOH
RQWRORJ\
W\SHVRILQDSSURSULDWH
IDPLO\UHVHPEODQFHV
LQWKHFRQWH[WRI
PHWKRGRORJLFDOKROLVP
QRWDJDLQVW
GIXQFWLRQDOLW\
PHWKRGRORJLFDO
QRQIXQFWLRQDOLW\
LQGLYLGXDOLVP
SULQFLSOH
FULWLFDOWRV\VWHPV
DSSURDFK
IRUDXQLILHGWKHRU\RI
HYHU\WKLQJDQGLWV
VROXWLRQWRWKHSUREOHPV
RIFRPSOH[LW\
VXEMHFWLYLW\FRQIOLFW
LQUHJDUGWRRQWRORJLFDO
DQGGLYHUVLW\
SULQFSOHV
VHOHFWLRQFULWHULD
RQWRORJLFDOFRQVWUDLQWV
WKHTXDOLILFDWLRQVRQ
FODVVLILFDWLRQ
DJDLQVWUHGXFWLRQLVP
DDVDSLRQHHULQJZRUN
EDVIOH[LEOH
DDQGWKHIRXQGDWLRQ
FDVPXWXDOO\
IDOODF\
FRQVWUDLQLQJ
DJDLQVWUHYHUVH
GVHOHFWLYHO\XVHIXO
UHGXFWLRQLVP
HDQWLUHGXFWLRQLVWLF
DDQGWKH
FRPSURPLVH
RQWRPHWKRGRORJ\
IDOODF\
RQWRORJLFDQGKLVWRU\RI
EDQGWKHSOXUDOLVW
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
IDOODF\
KROLVWLFRUJDQL]DWLRQRI
DQQTXLU\
DWKHPLQGEUDLQERG\
DQGVSLULW
EFODVVLILFDWLRQRIWKH
PLQGQDWXUHVRFLHW\
DQGFXOWXUH
WKUHHFODULILFDWLRQV
GLVWLQFWLYHXVHIXOQHVV
VRPHFODULILFDWLRQV
PRUHHODERUDWLRQVLQ
WDEOH
WKHIDFWRURI
XQFHUWDLQW\
LQWKHFRQWH[WRIWKHWKHRUHWLFDO
GHEDWHRQFXOLQDU\DUW
WKHPHQWDO
DUJXPHQW
WKHQDWXUDODUJXPHQW
WKHVRFLHWDODUJXPHQW
WKHFXOWXUDODUJXPHQW
WKHLQTXLVLWLYHDUJXPHQW
VHHDOVR$IWHUSRVWPRGHUQLW\
PHWKRGRORJLFDOKROLVP
SRVWFDSLWDOLVP
SRVWGHPRFUDF\
(\VHQFN+DQV
)
IDOVHKRRGDQG6HD6KHSKHUG
IDPLO\UHVHPEODQFH
DQGWKHV\QWD[RIH[LVWHQWLDO
GLDOHFWLFV
VHHDOVR([LVWHQWLDOGLDOHFWLFV
PHWKRGRORJLFDOKROLVP
)DUP6DQFWXDU\
IDVWIRRGDQGWKHIRRGLQGXVWU\
VHHDOVR&XOLQDU\DUW
IDVWIRRGFXLVLQH
IDVWIRRGLQGXVWU\
IDVWIRRGRXWOHWV
IDWVDQGFRRNLQJ
ILOOLQJVWDWLRQVDQGIDVWIRRGRXWOHWV
ILQLW\
VHH0XOWLYHUVH
)LUHKDPPHU5HJLQDOG
IODYRUVDQGPROHFXODUJDVWURQRP\
IORDWLQJFRQVFLRXVQHVV
VHH&RQVFLRXVQHVV
IORDWLQJH[LVWHQFH
VHH&RQVFLRXVQHVV
IRRGFKDLQVDQGHFRORJLFDO
S\UDPLG
VHHDOVR&XOLQDU\DUW
IRRGFRQVXPSWLRQDQGWKHHWKLFVRI
HDWLQJPHDW
IRRGJXLGHS\UDPLGDQGQXWUWLRQ
IRRGKLVWRU\
IRRGK\JLHQH
IRRGLQGXVWU\DQGIDVWIRRG
VHHDOVR&XOLQDU\DUW
IRRGSDFNDJLQJ
IRRGSDLULQJ
DQGPROHFXODUJDVWURQRP\
VHHDOVR&XOLQDU\DUW
,QGH[
IRRGSKRWRJUDSK\DQGWKHDUWRI
SUHVHQWDWLRQ
IRRGSRLVRQLQJDQGFRRNLQJ
IRRGVDIHW\DQGGLVHDVH
IRRGVHFXULW\
LQJUHGLHQWVDQGQXWULWLRQDO
HFRQRPLFV
VHHDOVR&XOLQDU\DUW
IRRGVW\OHV
IRRGVW\OHWHFKQLTXHV
IRRGVXSSO\DQG0DOWKXVLDQLVP
VHHDOVR&XOLQDU\DUW
IRRGWHFKQRORJ\DQGSUHVHUYDWLRQ
VHHDOVR&XOLQDU\DUW
IRUDJLQJ
IRXQGDWLRQIDOODF\WKH
VHH0HWKRGROJRFLDOKROLVP
)UHH6SHHFK0RYHPHQWDQGWKH
FXOLQDU\UHYROXWLRQ
IUHHVSLULWHGDIWHUSRVWPRGHUQLW\
VHH$IWHUSRVWPRGHUQLW\
IUHHVSLULWHGPRGHUQLW\
VHH0RGHUQLW\
IUHHVSLULWHGSRVWPRGHUQLW\
VHH3RVWPRGHUQLW\
IUHHGRP
VHH$XWKRULWDULDQOLEHUDO
GHPRFUDF\GHPRFUDF\
HPSLUHVH[LVWHQWLDO
GLDOHFWLFV
SRVWGHPRFUDF\
IUXLWVDQGIRRGJXLGHS\UDPLG
IU\LQJDQGFRRNLQJ
)XKUPDQ-RHO
IXQJLDQGFRRNLQJ
IXVLRQFXLVLQHDQGJOREDOFXLVLQHV
*
JDVWURQRP\DQGIRRGSDLULQJ
VHHDOVR&XOLQDU\DUW
JHQHWLFDSSURDFK
VHH1DWXUHQXUWXUHGHEDWH
JHQHWLFDOO\DOWHUHGVXSHULRUEHLQJV
LQWKHFRQWH[WRIGLIIHUHQW
YHUVLRQVRISRVWKXPDQLW\
LQWKHFRQWH[WRI
SRVWKXPDQLVP
SRVWKXPDQLVPDQG
WUDQVKXPDQLVP
VHHDOVR$IWHUSRVWPRGHUQLW\
SRVWFDSLWDOLVP
SRVWFLYLOL]DWLRQ
SRVWGHPRFUDF\
SRVWKXPDQVPXOWLYHUVH
JOREDOFXLVLQHV
VHHDOVR&XOLQDU\DUW
JOREDOL]DWLRQDQGQXWULWLRQ
*RGZLQ:LOOLDP
JRRGWKH
DQGH[LVWHQWLDOGLDOHFWLFV
IUHHGRPXQIUHHGRPDQG
HTXDOLW\LQHTXDOLW\
GLDOHFWLFV
ZHDOWKSRYHUW\
GLDOHFWLFV
FLYLOL]DWLRQEDUEDULW\
GLDOHFWLFV
RSSUHVVLRQVHOI
RSSUHVVLRQ
IURPSUHPRGHUQLW\WR
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
DIWHUSRVWPRGHUQLW\LQ
FLYLOL]DWLRQ
WKHWULQLW\RI
SUHPRGHUQLW\
WKHWULQLW\RIPRGHUQLW\
WKHWULQLW\RI
SRVWPRGHUQLW\
WKHWULQLW\RI
DIWHUSRVWPRGHUQLW\
VHHDOVR([LVWHQWLDOGLDOHFWLFV
KROLVWLFRUJDQL]DWLRQ
RIDQHQTXLU\
PHWKRGRORJLFDOKROLVP
*RRGPDQ$ODQ
*UDKDP'RXJODV
*UHHQSHDFH
*XWK$ODQ
+
KDPEXUJHUVDQGIRRGVW\OH
WHFKQLTXHV
KDUYHVWLQJDQGFXOLQDU\DUW
KDYLQJ
VHH&RQVFLRXVQHVV
+DZNLQJ6WHSKHQ
KHDOWKDQGFRRNLQJ
VHHDOVR&XOLQDU\DUW
KHJHPRQLFDIWHUSRVWPRGHUQLW\
VHH$IWHUSRVWPRGHUQLW\
KHJHPRQLFPRGHUQLW\
VHH0RGHUQLW\
KHJHPRQLFSRVWPRGHUQLW\
VHH3RVWPRGHUQLW\
KHJHPRQLFSUHPRGHUQLW\
VHH3UHPRGHUQLW\
KHJHPRQ\
VHH&\FOLFDOSURJUHVVLRQ
+HLVHQEHUJ:HUQHU
+LQGXLVPDQGWKHHWKLFVRIHDWLQJ
PHDW
KLVWRULFDO
DQGFLYLOL]DWLRQDOKROLVP
VWUXFWXUH
WKHRULHV
VHHDOVR+ROLVWLFRUJDQL]DWLRQ
RILQTXLU\
KLVWRULFLVP
VHH0HWKRGRORJLFDOKROLVP
KROLVP
VHH([LVWHQWLDOGLDOHFWLFV
PHWKRGRORJLFDOKROLVP
KROLVWLFRUJDQL]DWLRQRIDQLQTXLU\
DQGFLYLOL]DWLRQDOKROLVP
VWUXFWXUH
WKHRULHV
DQGSRVWKXPDQFLYLOL]DWLRQ
YVSRVWKXPDQSRVW
FLYLOL]DWLRQ
DQGVXSHUFLYLOL]DWLRQV
DQGWKHILYHWKHVHVRI
SRVWFLYLOL]DWLRQ
DQGWKHWKHRUHWLFDOGHEDWHRQ
FLYLOL]DWLRQ
DQGWKHXQLILHGWKHRU\RI
HYHU\WKLQJDQGLWV
VROXWLRQWRWKHSUREOHPV
RIFRPSOH[LW\VXEMHFWLYLW\
FRQIOLFWDQGGLYHUVLW\
EDUEDULW\DQGSRVWFLYLOL]DWLRQ
&RSKHQKDJHQLQWHUSUHWDWLRQYV
(YHUHWWVLQWHUSUHWDWLRQ
IURPSUHPRGHUQLW\WR
,QGH[
DIWHUSRVWPRGHUQLW\LQ
FLYLOL]DWLRQ
WKHWULQLW\RI
SUHPRGHUQLW\
WKHWULQLW\RIPRGHUQLW\
WKHWULQLW\RI
SRVWPRGHUQLW\
WKHWULQLW\RI
DIWHUSRVWPRGHUQLW\
LQUHJDUGWR
KDYLQJ
EHORQJLQJ
EHLQJ
LQUHJDUGWRGLIIHUHQWNLQGVRI
FRQVFLRXVQHVV
IORDWLQJFRQVFLRXVQHVV
K\SHUVSDWLDO
FRQVFLRXVQHVV
XQIROGLQJ
XQFRQVFLRXVQHVV
LQUHODWLRQWRGLIIHUHQWFDXVHV
RISRVWFDSLWDOLVP
LQUHODWLRQWRGLIIHUHQWFDXVHV
RISRVWGHPRFUDF\
LQUHODWLRQWRGLIIHUHQWYHUVLRQV
RISRVWFDSLWDOLVP
LQUHODWLRQWRGLIIHUHQWYHUVLRQV
RISRVWGHPRFUDF\
LQUHODWLRQWRWKHGLVWLQFWLRQV
EHWZHHQFDSLWDOLVP
QRQFDSLWDOLVPDQG
SRVWFDSLWDOLVP
LQUHODWLRQWRWKHGLVWLQFWLRQV
EHWZHHQGHPRFUDF\
QRQGHPRFUDF\DQG
SRVWGHPRFUDF\
LQUHODWLRQWRWKHGLVWLQFWLRQV
EHWZHHQSRVWGHPRFUDF\
DQGSRVWFDSLWDOLVP
LQWKHFRQWH[WRIGLIIHUHQW
YHUVLRQVRISRVWKXPDQLW\
LQWKHFRQWH[WRI
SRVWKXPDQLVP
SRVWKXPDQLVPDQG
WUDQVKXPDQLVP
LQWKHFRQWH[WRIWKHGLVWLQFWLRQ
DPRQJILQLW\WUDQVILQLW\
DQGLQILQLW\
LQWKHFRQWH[WRIWKH
WHFKQRORJLFDOIURQWLHUVRI
WKHPLFURZRUOG
LQWKHFRQWH[WRIWKHUHDVRQVIRU
WKHDOWHUDWLRQRIVSDFHWLPH
LQWKHFRQWH[WRIWKHWKHRUHWLFDO
GHEDWHRQVSDFHWLPH
LQWKHFRQWH[WRIWKHWKHRUHWLFDO
VSHFXODWLRQVRIWKHFRVPRV
GLIIHUHQWYHUVLRQVRI
PXOWLYHUVHV
PDQ\ZRUOGVYV
PXOWLYHUVH
K\SHUVSDFHDQGLWV
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
FKDOOHQJH
SRVWFRVPRORJ\
LQWKHFRQWH[WRIWLPHWUDYHO
LQWRWKHIXWXUH
LQWRWKHSDVW
VHHDOVR&RQVFLRXVQHVV
PHWKRGRORJLFDOKROLVP
KRO\WKH
DQGH[LVWHQWLDOGLDOHFWLFV
IUHHGRPXQIUHHGRPDQG
HTXDOLW\LQHTXDOLW\
GLDOHFWLFV
IURPSUHPRGHUQLW\WR
DIWHUSRVWPRGHUQLW\LQ
FLYLOL]DWLRQ
WKHWULQLW\RI
SUHPRGHUQLW\
WKHWULQLW\RIPRGHUQLW\
WKHWULQLW\RI
SRVWPRGHUQLW\
WKHWULQLW\RI
DIWHUSRVWPRGHUQLW\
VHHDOVR+ROLVWLFRUJDQL]DWLRQ
RIDQHQTXLU\
+XPDQH6ODXJKWHU$FW
KXPDQRLGV
LQWKHFRQWH[WRIGLIIHUHQW
YHUVLRQVRISRVWKXPDQLW\
LQWKHFRQWH[WRI
SRVWKXPDQLVP
SRVWKXPDQLVPDQG
WUDQVKXPDQLVP
VHHDOVR$IWHUSRVWPRGHUQLW\
SRVWFDSLWDOLVP
SRVWFLYLOL]DWLRQ
SRVWGHPRFUDF\
SRVWKXPDQVPXOWLYHUVH
K\SHUPDUWLDOERG\
K\SHUVH[XDOERG\
K\SHUVSDWLDOFRQVFLRXVQHVV
VHH&RQVFLRXVQHVV
,
LGHDOLVP
VHH0HWKRGRORJLFDOKROLVP
LGHRORJ\
VHH:DUDQGSHDFH
LPPRUDOLW\DQG6HD6KHSKHUG
LPSDFWV
VHH&LYLOL]DWLRQDOSURMHFW
LPSXOVLQJ
VHH&LYLOL]DWLRQ
SRVWFLYLOL]DWLRQ
LQGXVWULDOL]DWLRQ
DQGFRRNLQJ
DQGSURGXFWLRQ
LQHTXDOLW\
VHH(TXDOLW\
LQILQLW\
VHH0XOWLYHUVH
,QJKDP%DUEDUD
,QJUDP%LOO\
LQJUHGLHQWV
IURPWKHIRXUSHUVSHFWLYHVRI
WKHPLQG
DLQJUHGLHQWV
DSKURGLVLDFVDQG
VH[XDOLW\
ELQJUHGLHQWVIRRG
JXLGHS\UDPLGDQG
,QGH[
QXWUWLRQ
QDWXUH
DLQJUHGLHQWVIRRG
FKDLQVDQGHFRORJLFDO
S\UDPLG
ELQJUHGLHQWVQDWXUH
DQGUDZIRRG
VRFLHW\
DLQJUHGLHQWVIRRG
VXSSO\DQG
0DOWKXVLDQLVP
ELQJUHGLHQWVIRRG
VHFXULW\DQG
QXWULWLRQDOHFRQRPLFV
FXOWXUH
DLQJUHGLHQWVGLHWDQG
WKHHWKLFVRIHDWLQJ
PHDW
ELQJUHGLHQWV
&DOLIRUQLDFXLVLQH
DQGWKHFXOLQDU\
UHYROXWLRQ
VHHDOVR&XOLQDU\DUW
LQTXLVLWLRQDQGFXOLQDU\DUW
VHH&XOQDU\DUW
LQVWLWXWLRQDOWKH
VHH+ROLVWLFRUJDQL]DWLRQRIDQ
LQTXLU\
LQVWLWXWLRQV
VHH&LYLOL]DWLRQDOSURMHFW
LQWHOOLJHQFHOLIH
LQWKHFRQWH[WRIGLIIHUHQW
YHUVLRQVRISRVWKXPDQLW\
LQWKHFRQWH[WRI
SRVWKXPDQLVP
SRVWKXPDQLVPDQG
WUDQVKXPDQLVP
VHHDOVR$IWHUSRVWPRGHUQLW\
SRVWFDSLWDOLVP
SRVWFLYLOL]DWLRQ
SRVWGHPRFUDF\
SRVWKXPDQVPXOWLYHUVH
LQWXLWLRQ
VHH&RQVFLRXVQHVV
/HDNH\5LFKDUG
-
-DLQH7RP
-XGDLVPDQGWKHHWKLFVRIHDWLQJ
PHDW
VHHDOVR&XOLQDU\DUW
MXVWWKH
DQGH[LVWHQWLDOGLDOHFWLFV
IUHHGRPXQIUHHGRPDQG
HTXDOLW\LQHTXDOLW\
GLDOHFWLFV
ZHDOWKSRYHUW\
GLDOHFWLFV
FLYLOL]DWLRQEDUEDULW\
GLDOHFWLFV
RSSUHVVLRQVHOI
RSSUHVVLRQ
IURPSUHPRGHUQLW\WR
DIWHUSRVWPRGHUQLW\LQ
FLYLOL]DWLRQ
WKHWULQLW\RI
SUHPRGHUQLW\
WKHWULQLW\RIPRGHUQLW\
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
WKHWULQLW\RI
SRVWPRGHUQLW\
WKHWULQLW\RI
DIWHUSRVWPRGHUQLW\
VHHDOVR+ROLVWLFRUJDQL]DWLRQ
RIDQHQTXLU\
.
.DUGDVKHY1LNRODL
NHEDEDQGIDVWIRRGFXLVLQH
VHHDOVR&XOLQDU\DUW
.H\QHV-RKQ0D\QDUG
.XUWL1LFKRODV
/
ODQGGHJUDGDWLRQDQGQXWULWLRQ
VHHDOVR&XOLQDU\DUW
ODQGH[SURSULDWLRQDQGQXWULWLRQ
/HDFK(GPXQG
/HDWKHUPDQ7KRPDV
OHYHORIDQDO\VLV
VHH([LVWHQWLDOGLDOHFWLFV
PHWKRGRORJLFDOKROLVP
/HLEHU-XVWLQ
OLEHOLQJDQG6HD6KHSKHUG
VHHDOVR&XOLQDU\DUW
/LQGH$QGUH
/LQGHQ(XJHQH
OLYLQJRUJDQLVPVDQGFRRNLQJ
0
0DFKDQGD=DULQ
0DOWKXV7KRPDV5REHUW
0DOWKXVLDQLVPLQJUHGLHQWVDQG
IRRGVXSSO\
VHHDOVR&XOLQDU\DUW
0DQHV&KULVWRSKHU
PDQ\ZRUOGV
&RSKHQKDJHQLQWHUSUHWDWLRQYV
(YHUHWWVLQWHUSUHWDWLRQ
VHHDOVR0XOWLYHUVH
0DUWLQHDX+DUULHW
0DU[.DUO
PDWWHU
VHH0XOWLYHUVH
PDWWHUVDQGFRRNLQJ
PHDWDQGIRRGJXLGHS\UDPLG
PHFKDQLFDOVODXJKWHU
PHODQRWDQDQGV\QWKHWLF
DSKURGLVLDFV
PHWDWKHRU\
VHH([LVWHQWLDO
GLDOHFWLFVPHWKRGRORJLFDO
KROLVP
PHWDWKHRU\DQGV\VWHPV
SKLORVRSK\
PHWDSK\VLFV
VHH([LVWHQWLDOGLDOHFWLFV
PHWKRG
VHH([LVWHQWLDOGLDOHFWLFV
PHWKRGRORJLFDOKROLVP
PHWKRGRORJLFDOKROLVP
DQGFLYLOL]DWLRQDOKROLVP
VWUXFWXUH
WKHRULHV
DQGLWVHVVHQWLDOIHDWXUHV
QRWDJDLQVW
PHWKRGRORJLFDO
LQGLYLGXDOLVP
FULWLFDOWRV\VWHPV
DSSURDFK
,QGH[
IRUDXQLILHGWKHRU\RI
HYHU\WKLQJDQGLWV
VROXWLRQWRWKHSUREOHPV
RIFRPSOH[LW\
VXEMHFWLYLW\FRQIOLFW
DQGGLYHUVLW\
RQWRORJLFDOFRQVWUDLQWV
DJDLQVWUHGXFWLRQLVP
DDQGWKHIRXQGDWLRQ
IDOODF\
DJDLQVWUHYHUVH
UHGXFWLRQLVP
DDQGWKH
FRPSURPLVH
IDOODF\
EDQGWKHSOXUDOLVW
IDOODF\
KROLVWLFRUJDQL]DWLRQRI
DQQTXLU\
DWKHPLQGEUDLQERG\
DQGVSLULW
EFODVVLILFDWLRQRIWKH
PLQGQDWXUHVRFLHW\
DQGFXOWXUH
WKUHHFODULILFDWLRQV
GLVWLQFWLYHXVHIXOQHVV
VRPHFODULILFDWLRQV
PRUHHODERUDWLRQVLQ
WDEOH
WKHIDFWRURI
XQFHUWDLQW\
VHHDOVR([LVWHQWLDOGLDOHFWLFV
KROLVWLFRUJDQL]DWLRQRIDQ
LQTXLU\PHWKRGRORJLFDO
LQGYLGXDOLVP
PHWKRGRORJLFDOLQGLYLGXDOLVP
VHH([LVWHQWLDOGLDOHFWLFV
PHWKRGRORJLFDOKROLVP
PHWKRGRORJ\
VHH6\VWHPVWKHRU\
0H[LFDQFXLVLQH
PLFURSK\VLFDO
VHH+ROLVWLFRUJDQL]DWLRQRIDQ
LQTXLU\
PLFURZDYLQJDQGFRRNLQJ
0LGGOH(DVWHUQFXLVLQHDQGJOREDO
FXLVLQHV
PLONSRZGHUDQGIRRGWHFKQRORJ\
PLQGWKH
VHH&RQVFLRXVQHVVKROLVWLF
RUJDQL]DWLRQRILQTXLU\
PLQGJDPHV
PLQHUDOVDQGFRRNLQJ
0LQW]6LGQH\
PRGHUDWH
VHH&LYLOL]DWLRQ
SRVWFLYLOL]DWLRQ
PRGHUQLVP
VHH0RGHUQLW\
PRGHUQLW\
VHH$IWHUSRVWPRGHUQLW\
PRGHUQL]DWLRQ
VHH0RGHUQLW\
PROHFXODUJDVWURQRP\DQGIRRG
SDLULQJ
VHHDOVR&XOLQDU\DUW
PROHFXOHVDQGFRRNLQJ
0RXOWRQ6DUD
PXOWLYHUVH
DQGFLYLOL]DWLRQDOKROLVP
VWUXFWXUH
WKHRULHV
DQGSRVWKXPDQFLYLOL]DWLRQ
YVSRVWKXPDQSRVW
FLYLOL]DWLRQ
DQGVXSHUFLYLOL]DWLRQV
DQGWKHILYHWKHVHVRI
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
SRVWFLYLOL]DWLRQ
DQGWKHWKHRUHWLFDOGHEDWHRQ
FLYLOL]DWLRQ
DQGWKHXQLILHGWKHRU\RI
HYHU\WKLQJDQGLWV
VROXWLRQWRWKHSUREOHPV
RIFRPSOH[LW\VXEMHFWLYLW\
FRQIOLFWDQGGLYHUVLW\
EDUEDULW\DQGSRVWFLYLOL]DWLRQ
&RSKHQKDJHQLQWHUSUHWDWLRQYV
(YHUHWWVLQWHUSUHWDWLRQ
IURPSUHPRGHUQLW\WR
DIWHUSRVWPRGHUQLW\LQ
FLYLOL]DWLRQ
WKHWULQLW\RI
SUHPRGHUQLW\
WKHWULQLW\RIPRGHUQLW\
WKHWULQLW\RI
SRVWPRGHUQLW\
WKHWULQLW\RI
DIWHUSRVWPRGHUQLW\
LQUHJDUGWRGLIIHUHQWNLQGVRI
FRQVFLRXVQHVV
IORDWLQJFRQVFLRXVQHVV
K\SHUVSDWLDO
FRQVFLRXVQHVV
XQIROGLQJ
XQFRQVFLRXVQHVV
LQUHODWLRQWRGLIIHUHQWFDXVHV
RISRVWFDSLWDOLVP
LQUHODWLRQWRGLIIHUHQWFDXVHV
RISRVWGHPRFUDF\
LQUHODWLRQWRGLIIHUHQWYHUVLRQV
RISRVWFDSLWDOLVP
LQUHODWLRQWRGLIIHUHQWYHUVLRQV
RISRVWGHPRFUDF\
LQUHODWLRQWRWKHGLVWLQFWLRQV
EHWZHHQFDSLWDOLVP
QRQFDSLWDOLVPDQG
SRVWFDSLWDOLVP
LQUHODWLRQWRWKHGLVWLQFWLRQV
EHWZHHQGHPRFUDF\
QRQGHPRFUDF\DQG
SRVWGHPRFUDF\
LQUHODWLRQWRWKHGLVWLQFWLRQV
EHWZHHQSRVWGHPRFUDF\
DQGSRVWFDSLWDOLVP
LQWKHFRQWH[WRIGLIIHUHQW
YHUVLRQVRISRVWKXPDQLW\
LQWKHFRQWH[WRI
SRVWKXPDQLVP
SRVWKXPDQLVPDQG
WUDQVKXPDQLVP
LQWKHFRQWH[WRIWKHGLVWLQFWLRQ
DPRQJILQLW\WUDQVILQLW\
DQGLQILQLW\
LQWKHFRQWH[WRIWKH
WHFKQRORJLFDOIURQWLHUVRI
WKHPLFURZRUOG
LQWKHFRQWH[WRIWKHUHDVRQVIRU
WKHDOWHUDWLRQRIVSDFHWLPH
LQWKHFRQWH[WRIWKHWKHRUHWLFDO
GHEDWHRQVSDFHWLPH
,QGH[
LQWKHFRQWH[WRIWKHWKHRUHWLFDO
VSHFXODWLRQVRIWKHFRVPRV
GLIIHUHQWYHUVLRQVRI
PXOWLYHUVHV
PDQ\ZRUOGVYV
PXOWLYHUVH
K\SHUVSDFHDQGLWV
FKDOOHQJH
SRVWFRVPRORJ\
LQWKHFRQWH[WRIWLPHWUDYHO
LQWRWKHIXWXUH
LQWRWKHSDVW
VHHDOVR$IWHUSRVWPRGHUQLW\
H[LVWHQWLDOGLDOHFWLFV
SRVWFLYLOL]DWLRQ
SRVWKXPDQV
0XUUD\&
0\3ODWH
0\3\UDPLG
P\WKLFL]LQJ
VHH&LYLOL]DWLRQ
SRVWFLYLOL]DWLRQ
1
QDUUDWLYHV
VHH&LYLOL]DWLRQDOSURMHFW
QDWXUDODSKURGLVLDFV
QDWXUDOVHOHFWLRQ
VHH1DWXUHQXUWXUHGHEDWH
QDWXUH
VHH&RQVFLRXVQHVVKROLVWLF
RUJDQL]DWLRQRILQTXLU\
QDWXUHDQGUDZIRRG
VHHDOVR&XOLQDU\DUW
QDWXUHQXUWXUHGHEDWH
DQGFRQWUDVWLYHDGYDQWDJHV
VHHDOVR&RQVFLRXVQHVV
1HZ$PHULFDQ&ODVVLFV
1HZWRQ,VDDF
QRQFDSLWDOLVP
VHH$IWHUSRVWPRGHUQLW\
SRVWFDSLWDOLVP
QRQGHPRFUDF\
VHH$IWHUSRVWPRGHUQLW\
SRVWFDSLWDOLVP
QRQOLYLQJRUJDQLVPVDQGFRRNLQJ
1XQQ&KDUOHV
QXUWXUH
VHHQDWXUHQXUWXUHGHEDWH
QXWULWLRQ
DQGFRRNLQJ
DQGIRRGJXLGHS\UDPLG
DQGQXWULWLRQDOHFRQRPLFV
VHHDOVR&XOLQDU\DUW
2
2FHDQLDQFXLVLQHDQGJOREDO
FXLVLQHV
RLOVDQGIRRGJXLGHS\UDPLG
RQWLFGLVSXWH
VHH([LVWHQWLDOGLDOHFWLFV
RQWLFV
VHH([LVWHQWLDOGLDOHFWLFV
RQWRORJLF
VHH([LVWHQWLDOGLDOHFWLFV
RQWRPHWKRGRORJ\
VHH([LVWHQWLDOGLDOHFWLFV
RQWRSUDJPDWLFV
VHH([LVWHQWLDOGLDOHFWLFV
RQWRVHPDQWLFV
VHH([LVWHQWLDOGLDOHFWLFV
RQWRORJ\
VHH([LVWHQWLDOGLDOHFWLFV
PHWKRGRORJLFDOKROLVP
RQWRPHWKRGRORJ\
VHH([LVWHQWLDOGLDOHFWLFV
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
PHWKRGRORJLFDOKROLVP
RQWRSUDJPDWLFV
VHH([LVWHQWLDOGLDOHFWLFV
RQWRVHPDQWLFV
VHH([LVWHQWLDOGLDOHFWLFV
RSSUHVVLRQ
DQGH[LVWHQWLDOGLDOHFWLFV
IUHHGRPXQIUHHGRPDQG
HTXDOLW\LQHTXDOLW\
GLDOHFWLFV
ZHDOWKSRYHUW\
GLDOHFWLFV
FLYLOL]DWLRQEDUEDULW\
GLDOHFWLFV
RSSUHVVLRQVHOI
RSSUHVVLRQ
DQGFLYLOL]DWLRQDOKROLVP
VWUXFWXUH
WKHRULHV
DQGSRVWKXPDQFLYLOL]DWLRQ
YVSRVWKXPDQSRVW
FLYLOL]DWLRQ
DQGVXSHUFLYLOL]DWLRQV
DQGWKHILYHWKHVHVRI
SRVWFLYLOL]DWLRQ
DQGWKHWKHRUHWLFDOGHEDWHRQ
FLYLOL]DWLRQ
DQGWKHXQLILHGWKHRU\RI
HYHU\WKLQJDQGLWV
VROXWLRQWRWKHSUREOHPV
RIFRPSOH[LW\VXEMHFWLYLW\
FRQIOLFWDQGGLYHUVLW\
EDUEDULW\DQGSRVWFLYLOL]DWLRQ
VHHDOVR([LVWHQWLDOGLDOHFWLFV
2UJDQ&KULV
RUJDQL]DWLRQDOWKH
VHH+ROLVWLFRUJDQL]DWLRQRIDQ
LQTXLU\
2VERUQ)DLUILHOG
RXWFRPH
VHH&LYLOL]DWLRQDOSURMHFW
H[LVWHQWLDOGLDOHFWLFV
3
SDFLI\LQJSURFHVV
VHH&LYLOL]DWLRQ
3DNLQVWDQDQGUHJXODWRU\
HQIRUFHPHQWV
SDUDOOHOXQLYHUVH
VHH0XOWLYHUVH
3DVWHXU/RXLV
SDVWRUDOLVPDQGQXWULWLRQ
SHDFH
VHH:DUDQGSHDFH
3HHEOHV''
3HOWR*UHWHO
3HOWR-HUWWL
3HSLQ-DFTXHV
3HWR5LFKDUG
SK\VLFDO
VHH&RVPRORJLFDO
PLFURSK\VLFDO
SLOODJLQJ
VHH&LYLOL]DWLRQ
SL]]DDQGIDVWIRRGFXLVLQH
SODQWVDQGFRRNLQJ
SOXUDOLVWIDOODF\
VHH0HWKRGRORJLFDOKROLVP
SROLWLFDOWKH
VHH,QVWLWXWLRQDO
SRSXODWLRQ0DOWKXVLDQLVPDQG
IRRGVXSSO\
VHHDOVR&XOLQDU\DUW
SRVWFDSLWDOLVP
DQGH[LVWHQWLDOGLDOHFWLFV
,QGH[
IUHHGRPXQIUHHGRPDQG
HTXDOLW\LQHTXDOLW\
GLDOHFWLFV
ZHDOWKSRYHUW\
GLDOHFWLFV
FLYLOL]DWLRQEDUEDULW\
GLDOHFWLFV
RSSUHVVLRQVHOI
RSSUHVVLRQ
DQGFLYLOL]DWLRQDOKROLVP
VWUXFWXUH
WKHRULHV
DQGSRVWKXPDQFLYLOL]DWLRQ
YVSRVWKXPDQSRVW
FLYLOL]DWLRQ
DQGVXSHUFLYLOL]DWLRQV
DQGWKHILYHWKHVHVRI
SRVWFLYLOL]DWLRQ
DQGWKHWKHRUHWLFDOGHEDWHRQ
FLYLOL]DWLRQ
DQGWKHXQLILHGWKHRU\RI
HYHU\WKLQJDQGLWV
VROXWLRQWRWKHSUREOHPV
RIFRPSOH[LW\VXEMHFWLYLW\
FRQIOLFWDQGGLYHUVLW\
EDUEDULW\DQGSRVWFLYLOL]DWLRQ
&RSKHQKDJHQLQWHUSUHWDWLRQYV
(YHUHWWVLQWHUSUHWDWLRQ
IURPSUHPRGHUQLW\WR
DIWHUSRVWPRGHUQLW\LQ
FLYLOL]DWLRQ
WKHWULQLW\RI
SUHPRGHUQLW\
WKHWULQLW\RIPRGHUQLW\
WKHWULQLW\RI
SRVWPRGHUQLW\
WKHWULQLW\RI
DIWHUSRVWPRGHUQLW\
LQUHJDUGWR
KDYLQJ
EHORQJLQJ
EHLQJ
LQUHJDUGWRGLIIHUHQWNLQGVRI
FRQVFLRXVQHVV
IORDWLQJFRQVFLRXVQHVV
K\SHUVSDWLDO
FRQVFLRXVQHVV
XQIROGLQJ
XQFRQVFLRXVQHVV
LQUHODWLRQWRGLIIHUHQWFDXVHV
RISRVWFDSLWDOLVP
LQUHODWLRQWRGLIIHUHQWFDXVHV
RISRVWGHPRFUDF\
LQUHODWLRQWRGLIIHUHQWYHUVLRQV
RISRVWFDSLWDOLVP
LQUHODWLRQWRGLIIHUHQWYHUVLRQV
RISRVWGHPRFUDF\
LQUHODWLRQWRWKHGLVWLQFWLRQV
EHWZHHQFDSLWDOLVP
QRQFDSLWDOLVPDQG
SRVWFDSLWDOLVP
LQUHODWLRQWRWKHGLVWLQFWLRQV
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
EHWZHHQGHPRFUDF\
QRQGHPRFUDF\DQG
SRVWGHPRFUDF\
LQUHODWLRQWRWKHGLVWLQFWLRQV
EHWZHHQSRVWGHPRFUDF\
DQGSRVWFDSLWDOLVP
LQWKHFRQWH[WRIGLIIHUHQW
YHUVLRQVRISRVWKXPDQLW\
LQWKHFRQWH[WRI
SRVWKXPDQLVP
SRVWKXPDQLVPDQG
WUDQVKXPDQLVP
LQWKHFRQWH[WRIWKHGLVWLQFWLRQ
DPRQJILQLW\WUDQVILQLW\
DQGLQILQLW\
LQWKHFRQWH[WRIWKH
WHFKQRORJLFDOIURQWLHUVRI
WKHPLFURZRUOG
LQWKHFRQWH[WRIWKHUHDVRQVIRU
WKHDOWHUDWLRQRIVSDFHWLPH
LQWKHFRQWH[WRIWKHWKHRUHWLFDO
GHEDWHRQVSDFHWLPH
LQWKHFRQWH[WRIWKHWKHRUHWLFDO
VSHFXODWLRQVRIWKHFRVPRV
GLIIHUHQWYHUVLRQVRI
PXOWLYHUVHV
PDQ\ZRUOGVYV
PXOWLYHUVH
K\SHUVSDFHDQGLWV
FKDOOHQJH
SRVWFRVPRORJ\
LQWKHFRQWH[WRIWLPHWUDYHO
LQWRWKHIXWXUH
LQWRWKHSDVW
VHHDOVR$IWHUSRVWPRGHUQLW\
FRQVFLRXVQHVVV
H[LVWHQWLDOGLDOHFWLFV
PHWKRGRORJLFDOKROLVP
SRVWGHPRFUDF\
SRVWFDSLWDOLVWDIWHUSRVWPRGHUQLW\
VHH$IWHUSRVWPRGHUQLW\
SRVWFDSLWDOLVP
SRVWFLYLOL]DWLRQ
VHH&LYLOL]DWLRQ
SRVWGHPRFUDF\
DIWHUDXWKRULWDULDQOLEHUDO
GHPRFUDF\
DQGGLIIHUHQWHPSLUHV
LQUHODWLRQWRWKHGLVWLQFWLRQV
EHWZHHQGHPRFUDF\
QRQGHPRFUDF\DQG
SRVWGHPRFUDF\
LQUHODWLRQWRWKHGLVWLQFWLRQV
EHWZHHQSRVWGHPRFUDF\
DQGSRVWFDSLWDOLVP
DQGLWVGLIIHUHQWFDXVHV
DQGLWVGLIIHUHQWYHUVLRQV
VHHDOVR$IWHUSRVWPRGHUQLW\
FRQVFLRXVQHVVV
H[LVWHQWLDOGLDOHFWLFV
PHWKRGRORJLFDOKROLVP
SRVWFDSLWDOLVP
SRVWKXPDQFLYLOL]DWLRQ
QRWWRFRQIXVHSRVWKXPDQ
FLYLOL]DWLRQZLWK
SRVWKXPDQSRVW
FLYLOL]DWLRQ
VHHDOVR&LYLOL]DWLRQ
SRVWFLYLOL]DWLRQ
SRVWKXPDQHOLWLVWFDOOLQJ
VHHDOVR$IWHUSRVWPRGHUQLW\
FRQVFLRXVQHVVV
H[LVWHQWLDOGLDOHFWLFV
PHWKRGRORJLFDOKROLVP
,QGH[
SRVWFDSLWDOLVP
SRVWKXPDQSRVWFLYLOL]DWLRQ
DQGWKHILYHWKHVHVRI
SRVWFLYLOL]DWLRQ
VHHDOVR&LYLOL]DWLRQ
SRVWFLYLOL]DWLRQ
SRVWKXPDQV
SRVWKXPDQLVP
WRQRWFRQIXVHZLWK
SRVWKXPDQLVPDQG
WUDQVKXPDQLVP
VHHDOVR$IWHUSRVWPRGHUQLW\
SRVWKXPDQLW\
VHH3RVWKXPDQV
SRVWKXPDQV
VHH$IWHUSRVWPRGHUQLW\
SRVWPRGHUQLVP
VHH3RVWPRGHUQLW\
SRVWPRGHUQLW\
VHH$IWHUSRVWPRGHUQLW\
SRVWPRGHUQL]DWLRQ
VHH3RVWPRGHUQLW\
SRVWKXPDQLVP
WRQRWFRQIXVHZLWK
SRVWKXPDQLVPDQG
WUDQVKXPDQLVP
VHHDOVR$IWHUSRVWPRGHUQLW\
SUDJPDWLFV
VHH([LVWHQWLDOGLDOHFWLFV
ODQJXDJH
SUHFDSLWDOLVWSUHPRGHUQLW\
VHH3UHPRGHUQLW\
SUHFRQVFLRXVQHVV
VHH&RQVFLRXVQHVV
SUHIUHHVSLULWHGSUHPRGHUQLW\
VHH3UHPRGHUQLW\
SUHPRGHUQLVP
VHH3UHPRGHUQLW\
SUHPRGHUQLW\
VHH$IWHUSRVWPRGHUQLW\
SUHPRGHUQL]DWLRQ
VHH3UHPRGHUQLW\
SUHVHQWLQJ
DQGFXOLQDU\DUW
DQGIRRGSKRWRJUDSK\
VHHDOVR&XOLQDU\DUW
SUHVHUYLQJDQGFXOLQDU\DUW
DQGIRRGWHFKQRORJ\
VHHDOVR&XOLQDU\DUW
SURFHVV
VHH([LVWHQWLDOGLDOHFWLFV
PHWKRGRORJLFDOKROLVP
SURGXFWLRQDQGQXWULWLRQ
SURJUHVVLRQ
VHH([LVWHQWLDOGLDOHFWLFV
NQRZOHGJH
SURJUHVVLYH
VHH&LYLOL]DWLRQ
SURWHLQVDQGFRRNLQJ
SV\FKRORJLFDOWKH
VHH+ROLVWLFRUJDQL]DWLRQRIDQ
LQTXLU\
SV\FKRVLV
DQGWKHILYHWKHVHVRI
SRVWFLYLOL]DWLRQ
DQGYLUWXDORUJDQL]DWLRQV
VHHDOVR&LYLOL]DWLRQ
SRVWFLYLOL]DWLRQ
S\UDPLG
VHH)RRGJXLGHS\UDPLG
4
TXDQWXPGHFRKHUHQFH
VHHDOVR0XOWLYHUVH
TXDQWXPPHFKDQLFV
DQGFLYLOL]DWLRQDOKROLVP
DQGFRQVFLRXVQHVV
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
DQGXQFRQVFLRXVQHVV
&RSKHQKDJHQLQWHUSUHWDWLRQYV
(YHUHWWVLQWHUSUHWDWLRQ
4XLQH:9
5
UDGLFDOHQYLURQPHQWDOLVPDQG
DQLPDOVODXJKWHU
5DQGDOO/LVD
UDQNGLVWLQFWLRQ
VHH3RVWFDSLWDOLVP
SRVWFLYLOL]DWLRQ
SRVWGHPRFUDF\
UDWLRQDOL]LQJSURFHVV
VHH&LYLOL]DWLRQ
UDZDQLPDOIRRGGLHWVLQJUHGLHQWV
DQGQDWXUH
UDZIRRGLVPLQJUHGLHQWVDQG
QDWXUH
VHHDOVR&XOLQDU\DUW
UDZYHJDQLVPLQJUHGLHQWVDQG
QDWXUH
UDZYHJHWDULDQLVPLQJUHGLHQWVDQG
QDWXUH
UHGXFWLRQLVP
VHH0HWKRGRORJLFDOKROLVP
UHJUHVVLRQ
VHH([LVWHQWLDOGLDOHFWLFV
UHJXODWRU\HQIRUFHPHQWV
UHODWLYLVP
VHH([LVWHQWLDOGLDOHFWLFV
PHWKRGRORJLFDOKROLVP
UHOLJLRQDQGWKHHWKLFVRIHDWLQJ
PHDW
UHYHULQJ
VHH&LYLOL]DWLRQ
UHYHUVHUHGXFWLRQLVP
VHH0HWKRGRORJLFDOKROLVP
URDVWLQJDQGFRRNLQJ
5REELQV5LFKDUG
URERWV
LQWKHFRQWH[WRIGLIIHUHQW
YHUVLRQVRISRVWKXPDQLW\
LQWKHFRQWH[WRI
SRVWKXPDQLVP
SRVWKXPDQLVPDQG
WUDQVKXPDQLVP
VHHDOVR$IWHUSRVWPRGHUQLW\
SRVWFDSLWDOLVP
SRVWFLYLOL]DWLRQ
SRVWGHPRFUDF\
SRVWKXPDQVPXOWLYHUVH
URPDQWLF
VHH&LYLOL]DWLRQ
SRVWFLYLOL]DWLRQ
5XVVLDQFXLVLQH
6
VDODGVDQGIRRGVW\OHWHFKQLTXHV
VDQGZLFKHVDQGIRRGVW\OH
WHFKQLTXHV
6FKORVVHU(ULF
VFLHQFHDQGDUWLQFXOLQDU\DUW
6HD6KHSKHUG
VHOIRSSUHVVLRQ
VHH2SSUHVVLRQ
VHPDQWLFV
VHH([LVWHQWLDO'LDOHFWLFV
ODQJXDJH
6HQ$PDUW\D
VH[XDOLW\DQGIRRG
6KDNHVSHDUH:LOOLDP
VKLIWLQJFXOWLYDWLRQ
,QGH[
6LHJHO:DUUHQ
6LQJHU3HWHU
VODXJKWHULQJDQGFXOLQDU\DUW
DQGUDGLFDOHQYLURQPHQWDOLVP
VHHDOVR&XOLQDU\DUW
6PLWK'HOLD
VPRNLQJDQGFRRNLQJ
VRFLDO
VHH3RVWFDSLWDOLVP
VRFLDO'DUZLQLVP
VHH:DUDQGSHDFH
VRFLDOKLHUDUFK\
VHH6WUXFWXUDO
VRFLDOLQVWLWXWLRQDO
VHH,QVWLWXWLRQDO
VRFLDORUJDQL]DWLRQDO
VHH2UJDQL]DWLRQDO
VRFLDOVWUXFWXUH
VHH6WUXFWXUDO
VRFLDOV\VWHPV
VHH6\VWHPLF
VRFLHW\
VHH+ROLVWLFRUJDQL]DWLRQ
RILQTXLU\
6RQQ\)
6RXWK$PHULFDQFXLVLQH
VSDFH
VHH0XOWLYHUVH
VSDFHIRRG
VSDFHWLPH
VHH0XOWLYHUVH
VWHZDUGL]LQJSURFHVV
VHH&LYLOL]DWLRQ
VWUHHWYHQGRUVDQGIDVWIRRGRXWOHWV
VWUXFWXUDOWKH
VHH+ROLVWLFRUJDQL]DWLRQRIDQ
LQTXLU\
VXEILHOGVRIFXOLQDU\DUW
VXEFRQVFLRXVQHVV
VHH&RQVFLRXVQHVV
VXEMHFWLYLVP
VHH0HWKRGRORJLFDOKROLVP
VXEOLPHWKH
VHH%HDXWLIXO
VXEOLPLQJSURFHVV
VHH&LYLOL]DWLRQ
VXSHUFLYLOL]DWLRQV
VHHDOVR&LYLOL]DWLRQ
SRVWFLYLOL]DWLRQ
VXVKLDQGIDVWIRRGFXLVLQH
V\QWD[
VHH([LVWHQWLDO'LDOHFWLFV
ODQJXDJH
V\QWKHWLFDSKURGLVLDFV
V\VWHPLFWKH
VHH+ROLVWLFRUJDQL]DWLRQRIDQ
LQTXLU\PHWKRGRORJLFDO
KROLVP
7
WHFKQLTXHV
IURPWKHIRXUSHUVSHFWLYHVRI
WKHPLQG
DWHFKQLTXHVGLVHDVH
DQGIRRGVDIHW\
EWHFKQLTXHVFRRNLQJ
DQGKHDOWK
QDWXUH
DWHFKQLTXHVPROHFXODU
JDVWURQRP\DQGIRRG
SDLULQJ
EWHFKQLTXHVDQLPDO
VODXJKWHUDQGUDGLFDO
HQYLURQPHQWDOLVP
VRFLHW\
DWHFKQLTXHV
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
SUHVHUYDWLRQDQGIRRG
WHFKQRORJ\
EWHFKQLTXHVIDVWIRRG
DQGWKHIRRGLQGXVWU\
FXOWXUH
DWHFKQLTXHVIRRG
SKRWRJUDSK\DQGWKH
DUWRISUHVHQWDWLRQ
EWHFKQLTXHVFXLVLQH
DQGFXOWXUDO
YDULDWLRQV
VHHDOVR&XOLQDU\DUW
WHFKQRORJLFDOWKH
DQGH[LVWHQWLDOGLDOHFWLFV
IUHHGRPXQIUHHGRPDQG
HTXDOLW\LQHTXDOLW\
GLDOHFWLFV
IURPSUHPRGHUQLW\WR
DIWHUSRVWPRGHUQLW\LQ
FLYLOL]DWLRQ
WKHWULQLW\RI
SUHPRGHUQLW\
WKHWULQLW\RIPRGHUQLW\
WKHWULQLW\RI
SRVWPRGHUQLW\
WKHWULQLW\RI
DIWHUSRVWPRGHUQLW\
LQWKHFRQWH[WRIWKH
PLFURZRUOG
VHHDOVR+ROLVWLFRUJDQL]DWLRQ
RIDQLQTXLU\
PHWKRGRORJLFDOKROLVP
WHFKQRORJLFDOUHGXFWLRQLVP
VHH0HWKRGRORJLFDO
KROLVP
WHFKQRORJLFDOUHYROXWLRQV
VHH&LYLOL]DWLRQDOSURMHFW
WHPSHUDWXUHDQGIRRGK\JLHQH
WHVWRVWHURQHDQGV\QWKHWLF
DSKURGLVLDFV
WKHRU\
DQGFLYLOL]DWLRQDOKROLVP
VWUXFWXUH
WKHRULHV
DQGPHWDWKHRU\
DQGV\VWHPVSKLORVRSK\
VHHDOVR([LVWHQWLDOGLDOHFWLFV
PHWKRGRORJLFDOKROLVP
WKHRU\RIUHODWLYLW\
VHH0XOWLYHUVH
WKLQNLQJPDFKLQHV
LQWKHFRQWH[WRIGLIIHUHQW
YHUVLRQVRISRVWKXPDQLW\
LQWKHFRQWH[WRI
SRVWKXPDQLVP
SRVWKXPDQLVPDQG
WUDQVKXPDQLVP
VHHDOVR$IWHUSRVWPRGHUQLW\
SRVWFDSLWDOLVP
SRVWFLYLOL]DWLRQ
SRVWGHPRFUDF\
SRVWKXPDQVPXOWLYHUVH
WKLQNLQJURERWV
VHH5RERWV
7KLV+HUYH
WLPH
VHH0XOWLYHUVH
WLPHWUDYHO
VHH0XOWLYHUVH
,QGH[
7RZHU-HUHPLDK
WUDQVIHPLQLQHFDOOLQJ
VHHDOVR3RVWFDSLWDOLVP
SRVWGHPRFUDF\
WUDQVKXPDQLVP
WRQRWFRQIXVHZLWK
SRVWKXPDQLVPDQG
SRVWKXPDQLVP
VHHDOVR$IWHUSRVWPRGHUQLW\
WUDQV,VODPLFFDOOLQJ
VHHDOVR3RVWFDSLWDOLVP
SRVWGHPRFUDF\
WUDQVRXWHUVSDFHFDOOLQJ
VHHDOVR3RVWFDSLWDOLVP
SRVWGHPRFUDF\
WUDQV6LQLWLFFDOOLQJ
VHHDOVR3RVWFDSLWDOLVP
SRVWGHPRFUDF\
WUDQVFHQGHQW
DQGH[LVWHQWLDOGLDOHFWLFV
DQGSRVWGHPRFUDF\
VHHDOVR([LVWHQWLDOGLDOHFWLFV
PHWKRGRORJLFDOKROLVP
SRVWFDSLWDOLVP
SRVWGHPRFUDF\
WUDQVILQLW\
VHH0XOWLYHUVH
WULQLW\
VHH$IWHUSRVWPRGHUQLW\
PRGHUQLW\SRVWPRGHUQLW\
SUHPRGHUQLW\
WUXHWKH
DQGH[LVWHQWLDOGLDOHFWLFV
IUHHGRPXQIUHHGRPDQG
HTXDOLW\LQHTXDOLW\
GLDOHFWLFV
IURPSUHPRGHUQLW\WR
DIWHUSRVWPRGHUQLW\LQ
FLYLOL]DWLRQ
WKHWULQLW\RI
SUHPRGHUQLW\
WKHWULQLW\RIPRGHUQLW\
WKHWULQLW\RI
SRVWPRGHUQLW\
WKHWULQLW\RI
DIWHUSRVWPRGHUQLW\
VHHDOVR+ROLVWLFRUJDQL]DWLRQ
RIDQHQTXLU\
PHWKRGRORJLFDOKROLVP
8
8.)RRG6WDQGDUGV$JHQF\
XQFHUWDLQW\LQPHWKRGRORJLFDO
KROLVP
XQFRQVFLRXVQHVV
VHH&RQVFLRXVQHVV
XQIROGLQJXQFRQVFLRXVQHVV
VHH&RQVFLRXVQHVV
XQIUHHGRP
VHH)UHHGRP
XQLILHGWKHRU\RIHYHU\WKLQJ
VHH([LVWHQWLDOGLDOHFWLFV
PHWKRGRORJLFDOKROLVP
8QLWHG6WDWHVWKH
DQGFRRNLQJ
DQGUHJXODWRU\HQIRUFHPHQWV
XQLYHUVH
VHH0XOWLYHUVH
7KH)XWXUHRI3RVW+XPDQ&XOLQDU\$UW
86%XUHDXRI/DERU6WDWLVWLFV
86'$
DQGDQLPDOVODXJKWHU
DQGIRRGJXLGHS\UDPLG
DQGUHJXODWRU\HQIRUFHPHQWV
VHHDOVR&XOLQDU\DUW
KROLVPSRVWFDSLWDOLVP
:+2DQGIRRGJXLGHS\UDPLG
:LOOHWW:DOWHU
:LOOLDPV'DQQ\
:LOOLDPV5D\PRQG
:LWWJHQVWHLQ/XGZLJ
:UDQJKDP5LFKDUG
;
9
YHJHWDEOHVDQGIRRGJXLGHS\UDPLG
YLUWXDORUJDQL]DWLRQV
YLUWXDOSV\FKRVLV
DQGWKHILYHWKHVHVRI
SRVWFLYLOL]DWLRQ
DQGYLUWXDORUJDQL]DWLRQV
VHHDOVR&LYLOL]DWLRQ
SRVWFLYLOL]DWLRQ
YLUWXDOUHFDOO
YLUWXDOVH[
YLUWXDOVH[XDOLW\
YLWDPLQVDQGFRRNLQJ
9RJW:LOOLDP
9RQGHUSODQLW]$DMRQXV
:
ZDUDQGSHDFHDQGSUDJPDWLFVRI
H[LVWHQWLDOGLDOHFWLFV
ZDWHUDQGFRRNLQJ
:DWHUV$OLFH
:DWVRQ3DXO
ZHDOWK
VHH&RQVFLRXVQHVVH[LVWHQWLDO
GLDOHFWLFVPHWKRGRORJLFDO
;DQGQHRORJLVPV
;DQG<LQGLDOHFWLFFRQVWUDLQWV
<
<DQG;LQGLDOHFWLFFRQVWUDLQWV
\RKLPELQHDQGV\QWKHWLF
DSKURGLVLDFV