       5(&200(1'(' )25 )8//7(;7 38%/,&$7,21
            3XUVXDQW WR 6L[WK &LUFXLW 5XOH 

    (/(&7521,& &,7$7,21  )(' $SS 3 WK &LU
                )LOH 1DPH DS




81,7('67$7(6&28572)$33($/6
              )257+(6,;7+&,5&8,7
                BBBBBBBBBBBBBBBBB


&2$/ 23(5$7256 $1'                ;
$662&,$7(6 ,1& 3+(/36           
&2$/ $1' /$1' &2DQG             
                                      1R
52< 6($*5$9(6                     
          3ODLQWLIIV$SSHOODQWV !
                                   
                                   
            Y                     
                                   
%58&( %$%%,77LQKLV              
RIILFLDOFDSDFLW\DV6HFUHWDU\     
                                   
RIWKH,QWHULRU                   
           'HIHQGDQW$SSHOOHH 
                                  1
       $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
     IRUWKH(DVWHUQ'LVWULFWRI.HQWXFN\DW3LNHYLOOH
     1RnsRVHSK0+RRG'LVWULFWsXGJH
               $UJXHG'HFHPEHU
            'HFLGHGDQG)LOHGsXQH
%HIRUH1255,66,/(5DQG%$7&+(/'(5&LUFXLW
                     sXGJHV




                             
     &RDO2SHUDWRUVHWDOY%DEELWW              1R

                     BBBBBBBBBBBBBBBBB
                           &2816(/
$5*8('  0 6WHSKHQ 3LWW :<$77 7$55$17 	
&20%6 /RXLVYLOOH .HQWXFN\ IRU $SSHOODQWV  'DYLG s
/D]HUZLW] 81,7(' 67$7(6 '(3$570(17 2)
s867,&(:DVKLQJWRQ'&IRU$SSHOOHH21%5,()0
6WHSKHQ 3LWW 0HUULOO 6 6FKHOO :<$77 7$55$17 	
&20%6/RXLVYLOOH.HQWXFN\*HRUJH/6HD\sUsRVHSK
s =DOXVNL :<$77 7$55$17 	 &20%6 )UDQNIRUW
.HQWXFN\ sDPHV 5 &R[ &2; /$: ),50 /RXLVYLOOH
.HQWXFN\ IRU $SSHOODQWV  'DYLG s /D]HUZLW] 81,7('
67$7(6'(3$570(172)s867,&(:DVKLQJWRQ'&
IRU$SSHOOHH
                     BBBBBBBBBBBBBBBBB
                         23,1,21
                     BBBBBBBBBBBBBBBBB
   $/$1(1255,6&LUFXLWsXGJH3ODLQWLIIVLQWKLVFDVH
ILOHG D FRPSODLQW IRU DQ DFFRXQWLQJ GHFODUDWRU\ UHOLHI
PDQGDPXVDQGFODVVDFWLRQFHUWLILFDWLRQDJDLQVWWKH6HFUHWDU\
RIWKH,QWHULRUm6HFUHWDU\lLQDQDWWHPSWWRIRUFHWKHIHGHUDO
JRYHUQPHQWWRWXUQRYHUDSSUR[LPDWHO\ELOOLRQGROODUV
DOOHJHGO\ GXH WR FHUWDLQ VWDWHV XQGHU WKH 6XUIDFH 0LQLQJ
&RQWURO DQG 5HFODPDWLRQ $FW RI  m$FWl  86&
  HW VHT  7KH GLVWULFW FRXUW JUDQWHG WKH 6HFUHWDU\jV
PRWLRQWRGLVPLVVILQGLQJWKDWKHKDGQRGXW\WRGLVEXUVHWKH
IXQGVDWLVVXHZLWKRXWDSULRU&RQJUHVVLRQDODSSURSULDWLRQ
:KLOHZHDIILUPWKHGLVWULFWFRXUWZHGRVREHFDXVHSODLQWLIIV
IDLOHGWRHVWDEOLVKIHGHUDOMXULVGLFWLRQ
                                 ,
  $FFRUGLQJWRWKHFRPSODLQWSODLQWLIIVLQWKLVFDVHLQFOXGH
&RDO 2SHUDWRUV DQG $VVRFLDWHV ,QF D QRWIRUSURILW
FRUSRUDWLRQZKRVHPHPEHUVmDUHFRUSRUDWLRQVDQGLQGLYLGXDOV
ZKR RZQ ODQG DQG PLQHUDOV DQG HQJDJH LQ DX[LOLDU\
EXVLQHVVHVUHODWHGWRFRDOSURGXFWLRQVDOHDQGGLVWULEXWLRQl
1R             &RDO2SHUDWRUVHWDOY%DEELWW        

3ODLQWLII3KHOSV&RDODQG/DQG&RPSDQ\,QFLVD.HQWXFN\
EDVHG ODQG DQG PLQHUDO RZQHU WKDW KDV SDLG LQWR WKH
$EDQGRQHG0LQH5HFODPDWLRQ)XQGm)XQGlDWUXVWIXQG
DGPLQLVWHUHGE\WKH6HFUHWDU\XQGHUWKHWHUPVRIWKH$FW
86&7KHFRPSODLQWDOOHJHVWKDW3KHOSV&RDORZQV
ODQG HOLJLEOH IRU HQYLURQPHQWDO UHPHGLDWLRQ  6LPLODUO\
SODLQWLII5R\6HDJUDYHVD.HQWXFN\UHVLGHQWRZQVSURSHUW\
WKDWKDVEHHQDGYHUVHO\DIIHFWHGE\FRDOPLQLQJRSHUDWLRQV
DQGFODLPVKHLVWKHUHIRUHLQOLQHIRUFOHDQXSXQGHUWKH$FW
  6LQFHFRDORSHUDWRUVKDYHEHHQUHTXLUHGE\WKH$FWWR
SD\UHFODPDWLRQIHHVWRWKH)XQG86&7KH$FW
SURYLGHVWKDWWKHPRQH\FROOHFWHGPD\EHXVHGDPRQJRWKHU
WKLQJV IRU mUHFODPDWLRQ DQG UHVWRUDWLRQ RI ODQG DQG ZDWHU
UHVRXUFHVDGYHUVHO\DIIHFWHGE\SDVWFRDOPLQLQJl86&
F
  7KH$FWDOVRHQYLVLRQVDFWLYHSDUWLFLSDWLRQE\VWDWHVWKDW
KDYHKDGODQGDIIHFWHGE\WKHPLQLQJLQGXVWU\7KH\FDQLI
WKH\VRFKRRVHIRUPXODWHDVWDWHSURJUDPIRUUHFODPDWLRQDQG
VXEPLWLWIRUDSSURYDOWRWKH6HFUHWDU\86&
7KH$FWUHTXLUHVWKH6HFUHWDU\WRGLVEXUVHRIWKHPRQH\V
FROOHFWHGE\WKH)XQGIURPFRDORSHUDWRUVZLWKLQDVWDWHWR
WKDWVWDWHDVORQJDVLWPHHWVFHUWDLQVWDWXWRU\UHTXLUHPHQWV
VXFK DV KDYLQJ DQ DSSURYHG DEDQGRQHG PLQH UHFODPDWLRQ
SURJUDP   86&  J  7KH &RPPRQZHDOWK RI
.HQWXFN\KDVVXFKDSURJUDP+RZHYHUm>P@RQH\VIURPWKH
IXQGVKDOOEHDYDLODEOHIRUWKHSXUSRVHVRIWKLVVXEFKDSWHU
RQO\ ZKHQ DSSURSULDWHG WKHUHIRU DQG VXFK DSSURSULDWLRQV
VKDOO EH PDGH ZLWKRXW ILVFDO \HDU OLPLWDWLRQVl   86&
G
  $FFRUGLQJ WR WKH FRPSODLQW ILOHG LQ WKLV FDVH mWKHUH
UHPDLQV D EDODQFH RI DW OHDVW  RI
XQGLVWULEXWHGIXQGVl)RULWVSDUWm.HQWXFN\KDVDQLQYHQWRU\
RI KLJK SULRULW\ DEDQGRQHG PLQH KD]DUGV LQ H[FHVV RI
$QDGGLWLRQDODSSUR[LPDWHO\WZRKXQGUHG
KLJKSULRULW\ODQGVOLGHVDUHDGGHGWRWKHLQYHQWRU\DQQXDOO\DV
WKH\ DUH GLVFRYHUHG RU DV HPHUJHQFLHV DULVHl  0RUHRYHU
m$FFRUGLQJWR'HIHQGDQWjVRZQUHFRUGVDVRI6HSWHPEHU
      &RDO2SHUDWRUVHWDOY%DEELWW               1R       1R         &RDO2SHUDWRUVHWDOY%DEELWW   

RYHU1LQHW\VHYHQ0LOOLRQ'ROODUVUHPDLQHGSD\DEOHWR                                         ,,,
.HQWXFN\LQWKH1RQ'LVFUHWLRQDU\)XQGVSRUWLRQRIWKH7UXVW
>LH)XQG@GHVSLWHWKHIDFWWKDW86&J$             7KHMXGJPHQWRIWKHGLVWULFWFRXUWLVDIILUPHG
UHTXLUHV WKDW LW EH H[SHQGHG DQQXDOO\ DQG WKDW QXPHURXV
SURMHFWVLQ.HQWXFN\DUHLQQHHGRIIXQGLQJl
   3ODLQWLIIV LQVWLWXWHG WKLV VXLW LQ DQ DWWHPSW WR IRUFH WKH
6HFUHWDU\WRFRPSO\ZLWKWKHH[SOLFLWWHUPVRIWKH$FW,Q
UHVSRQVHWKH6HFUHWDU\ILOHGDPRWLRQWRGLVPLVV+HDUJXHG
ILUVW WKDW WKH GRFWULQH RI VRYHUHLJQ LPPXQLW\ GHSULYHG WKH
GLVWULFW FRXUW RI MXULVGLFWLRQ DQG VHFRQG WKDW KH ODFNHG
DXWKRULW\ WR GLVEXUVH PRQH\ IURP WKH )XQG ZLWKRXW DQ
DSSURSULDWLRQ IRU WKDW SXUSRVH E\ &RQJUHVV DQG WKHUHIRUH
SODLQWLIIVIDLOHGWRVWDWHDFODLPXSRQZKLFKUHOLHIFRXOGEH
JUDQWHG
   7KHGLVWULFWFRXUWJUDQWHGWKHPRWLRQEDVHGXSRQIDLOXUHWR
VWDWHDFODLP$IWHUUHYLHZLQJWKHSURYLVLRQVRIWKH$FWWKH
GLVWULFW FRXUW DFFHSWHG WKH JRYHUQPHQWjV DUJXPHQW WKDW
&RQJUHVVPXVWILUVWDSSURSULDWHIXQGVEHIRUHWKH6HFUHWDU\KDV
DGXW\WRGLVWULEXWHPRQH\IURPWKH)XQGWRWKHVWDWHV
    ,QWKLVFDVHWKHODQJXDJHRIWKHVWDWXWHLVIDFLDOO\FOHDU
    EXW D OLWHUDO LQWHUSUHWDWLRQ ZRXOG OHDG WR LQWHUQDO
    LQFRQVLVWHQFLHV  6HFWLRQ G FOHDUO\ UHTXLUHV WKDW
    PRQH\ LQ WKH )XQG PXVW ILUVW EH DSSURSULDWHG E\
    &RQJUHVV EHIRUH LW FDQ EH XVHG IRU WKH GHVLJQDWHG
    SXUSRVHV6HFWLRQVJDQGKVHHPWRUHTXLUH
    WKDWWKH6HFUHWDU\PXVWDOORFDWHSHUFHQWRIUHFODPDWLRQ
    IHHVEDFNWRWKH6WDWHVZLWKRXWZDLWLQJIRU&RQJUHVVLRQDO
    DSSURSULDWLRQVRIPRQH\IURPWKH)XQG7KH6HFUHWDU\
    FDQQRWGRERWK)RUWKHIROORZLQJUHDVRQVWKLV&RXUW
    GHWHUPLQHVWKDW&RQJUHVVPXVWILUVWDSSURSULDWHPRQH\
    IURP WKH )XQG WR WKH 6HFUHWDU\ DQG WKHQ WKH 6HFUHWDU\
    PXVW DOORFDWH WKRVH PRQH\V LQ DFFRUGDQFH ZLWK WKH
    SURYLVLRQV RI >WKH $FW@ ZKLFK ZRXOG LQFOXGH WKH
    UHTXLUHPHQWVRIVHFWLRQVJDQGK
0HPRUDQGXP 2SLQLRQ DQG 2UGHU DW   ,Q UHDFKLQJ LWV
GHFLVLRQWKHGLVWULFWFRXUWIROORZHGWKHJHQHUDOSUDFWLFHRI
DFFRUGLQJGHIHUHQFHWRJRYHUQPHQWDODJHQFLHVFKDUJHGZLWK
       &RDO2SHUDWRUVHWDOY%DEELWW                 1R        1R              &RDO2SHUDWRUVHWDOY%DEELWW          

WKH GXW\ RZHG E\ WKH 6HFUHWDU\ LQ WKLV FDVH LV WR WKH            DGPLQLVWHULQJDVWDWXWH+HUHmWKH6HFUHWDU\jVLQWHUSUHWDWLRQ
&RPPRQZHDOWKRI.HQWXFN\QRWWRWKHSODLQWLIIV %HFDXVH                   LVQRWRQO\UHDVRQDEOHFRQVLVWHQWDQGSHUVXDVLYHEXWDOVRWKH
SODLQWLIIVFDQQRWmUHVW>WKHLU@FODLPWRUHOLHIRQWKHOHJDOULJKWV          PRVW ORJLFDO LQWHUSUHWDWLRQl  ,G DW   )LQDOO\ WKH FRXUW
RU LQWHUHVWV RI WKLUG SDUWLHVl EXW UDWKHU mPXVW DVVHUW >WKHLU@      REVHUYHG WKDW m&RQJUHVV KDV EHHQ ZHOO DZDUH RI WKH
RZQOHJDOULJKWVDQGLQWHUHVWVl:DUWKY6HOGLQ86              6HFUHWDU\jVLQWHUSUHWDWLRQRIWKHVHSURYLVLRQVDV&RQJUHVVKDV
  WKH\ KDYH IDLOHG WR HVWDEOLVK WKHLU VWDQGLQJ WR         DSSURSULDWHGPRQH\IURPWKH)XQGHDFK\HDUVLQFH>WKH$FW@
DVVHUWIHGHUDOMXULVGLFWLRQ7KLVLVVRHYHQWKRXJKWKHFRXUWjV             ZDVHQDFWHGLQl,GDW
MXGJPHQWPD\EHQHILWWKHPFROODWHUDOO\,G2XUFRQFOXVLRQ
LVEXWWUHVVHGE\WKHVWUXFWXUHRIWKH$FWLWVHOI6HFWLRQ                                               ,,
RIWKH$FWVSHFLILFDOO\SURYLGHVDUHPHG\WRLQGLYLGXDOVZKR
VHHNWRHQIRUFHFRPSOLDQFHZLWKLWVSURYLVLRQVDVORQJDVWKH                  7KH 6HFUHWDU\ FRQWHQGV WKDW WKH GLVWULFW FRXUW ODFNHG
SURVSHFWLYH SODLQWLII JLYHV WKH 6HFUHWDU\ VL[W\GD\Vj QRWLFH           MXULVGLFWLRQIRUWZRUHDVRQVILUVWEHFDXVHSODLQWLIIVGLGQRW
SULRU WR ILOLQJ VXLW   86&  E  ,Q WKLV FDVH       KDYH VWDQGLQJ WR VXH DQG VHFRQG EHFDXVH WKH IHGHUDO
SODLQWLIIV IDLOHG WR FRPSO\ ZLWK WKLV QRWLFH SURYLVLRQ DQG          JRYHUQPHQWKDVQRWZDLYHGVRYHUHLJQLPPXQLW\7KHGLVWULFW
VLQFHVXFKQRWLFHSURYLVLRQVGHOLPLWWKHH[WHQWWRZKLFKWKH                 FRXUW GHWHUPLQHG WKDW MXULVGLFWLRQ ZDV mSURSHU XQGHU 
VRYHUHLJQKDVZDLYHGLPPXQLW\WKH\FDQQRWUHO\XSRQWKLV                    86&EHFDXVHWKLVFDVHDULVHVXQGHUIHGHUDOODZlDQG
VHFWLRQDVDPHDQVRIREWDLQLQJMXULVGLFWLRQ6HHJHQHUDOO\                DOVRXQGHU86&
%RDUGRI7UVRI3DLQHVYLOOH7RZQVKLSY&LW\RI3DLQHVYLOOH
)GWK&LU                                             :KLOHDGLVWULFWFRXUWPD\LVVXHDQRUGHULQWKHQDWXUHRI
                                                                               PDQGDPXVXQGHURQO\ZKHQWKHGXW\RZHGWKH
   ,Q VXP SODLQWLIIV KDYH IDLOHG WR VKRZ WKDW WKH 6HFUHWDU\          SODLQWLIILVFOHDUWKHGLVWULFWFRXUWPD\WDNHMXULVGLFWLRQ
RZHVDFOHDUGXW\WRWKHPDVRSSRVHGWRWKH&RPPRQZHDOWK                     WRGHWHUPLQHLIDFOHDUGXW\LVRZHGWRWKHSODLQWLIIWK
ZKLFKLVSUHUHTXLVLWHWRPDQGDPXVUHOLHIDVUHIOHFWHGLQWKH                  5HJLRQDO&RUSY8QLWHG6WDWHV'HSjWRI,QWHULRU
H[SOLFLWODQJXDJHRI86&6LPLODUO\WKH\KDYH                   )G'&&LU(LQKRUQY'H:LWW
QRWDVVHUWHGWKHLURZQULJKWVEXWWKRVHRIWKH&RPPRQZHDOWK                  )G   WK &LU   m)RU MXULVGLFWLRQDO
DQGWKHUHIRUHKDYHIDLOHGWRHVWDEOLVKVWDQGLQJWRVXHXQGHU                   SXUSRVHVLWLVQRWQHFHVVDU\WKDWWKHGXW\EHFOHDUEHIRUH
WKHJHQHUDOIHGHUDOMXULVGLFWLRQDOVWDWXWH86&                  WKHDQDO\VLVEHJLQVLQRWKHUZRUGVZHWDNHMXULVGLFWLRQ
)LQDOO\ WKH\ KDYH IDLOHG WR SURSHUO\ UHO\ XSRQ WKH RQH               WR GHWHUPLQH ZKHWKHU WKHUH LV D GXW\ RZHGl :KLWH Y
VWDWXWRU\ SURYLVLRQ  86&   WKDW PLJKW KDYH                 0DWWKHZV)6XSS'6'
DIIRUGHGWKHPDUHPHG\
                                                                             0HPRUDQGXP2SLQLRQDQG2UGHUDW$VWKHGLVWULFWFRXUW
                                                                             LPSOLFLWO\ UHFRJQL]HG  86&   VWDQGLQJ DORQH LV
                                                                             LQVXIILFLHQW WR FRQIHU MXULVGLFWLRQ RQO\ ZKHQ DQ RIILFHU RU
    
      :KLOH WKH &RPPRQZHDOWK VRXJKW WR LQWHUYHQH EHORZ WKH GLVWULFW         HPSOR\HH RI WKH 8QLWHG 6WDWHV RZHV D OHJDO GXW\ WR WKH
FRXUW GLVPLVVHG WKH FDVH EHIRUH UXOLQJ RQ WKDW PDWWHU                       SODLQWLIIGRHVWKHGLVWULFWFRXUWmKDYHRULJLQDOMXULVGLFWLRQRI
    
                                                                             DQ\DFWLRQLQWKHQDWXUHRIPDQGDPXVl86&
      :H QRWH WKDW WKH FLWL]HQ VXLW SURYLVLRQ RI WKH $FW HQYLVLRQV VXLWV
DJDLQVW WKH 8QLWHG 6WDWHV 6HFUHWDU\ RU DQ\ RWKHU JRYHUQPHQWDO                ,QWKHFDVHEHIRUHXVWKHQXQOHVVWKH$FWFUHDWHVDGXW\E\
LQVWUXPHQWDOLW\ RQO\ mWR WKH H[WHQW SHUPLWWHG E\ WKH HOHYHQWK DPHQGPHQW
                                                                             WKH 6HFUHWDU\ WR SODLQWLIIV PDQGDPXV ZLOO QRW OLH  ,Q KLV
WR WKH &RQVWLWXWLRQl  86&  D +RZHYHU EHFDXVH SODLQWLIIV
IDLOHG WR SURSHUO\ SOHDG D   FDXVH RI DFWLRQ ZH QHHG QRW DGGUHVV WKH
                                                                             PRWLRQWRGLVPLVVWKH6HFUHWDU\FRQWHQGHGWKDWWKHFRPSODLQW
H[WHQW WR ZKLFK VRYHUHLJQ LPPXQLW\ DSSOLHV WR WKLV FDVH                     IDLOHGWRHVWDEOLVKMXULVGLFWLRQDQGDOVRIDLOHGWRVWDWHDFODLP
        &RDO2SHUDWRUVHWDOY%DEELWW                  1R        1R             &RDO2SHUDWRUVHWDOY%DEELWW        

WKHUHIRUHGLVPLVVDOZDVDSSURSULDWHXQGHUHLWKHU)HG5&LY                      ,Q DGGLWLRQ WR WKH FRQVWLWXWLRQDO UHTXLUHPHQWV D
3 E RU E  $V DOUHDG\ GLVFXVVHG WKH GLVWULFW            SODLQWLII PXVW DOVR VDWLVI\ WKUHH SUXGHQWLDO VWDQGLQJ
FRXUW HOHFWHG WR GLVPLVV EDVHG XSRQ WKH IDLOXUH WR VWDWH D             UHVWULFWLRQV)LUVWDSODLQWLIIPXVWmDVVHUWKLVRZQOHJDO
FODLP,QRXUYLHZLWQHHGQRWKDYHUHDFKHGWKLVVXEVWDQWLYH                   ULJKWVDQGLQWHUHVWVDQGFDQQRWUHVWKLVFODLPWRUHOLHIRQ
TXHVWLRQEHFDXVHSODLQWLIIVIDLOHGWRHVWDEOLVKWKDWWKH\KDYH                   WKHOHJDOULJKWVRULQWHUHVWVRIWKLUGSDUWLHVl:DUWK
VWDQGLQJWRVXHZKLFKLVDMXULVGLFWLRQDOUHTXLUHPHQW                       86DW6&WFLWDWLRQVRPLWWHG6HFRQGD
                                                                                 SODLQWLIIjV FODLP PXVW EH PRUH WKDQ D mJHQHUDOL]HG
   7KLV FRXUW KDV UHFHQWO\ H[SORUHG WKH FRQWRXUV RI WKH                  JULHYDQFHlWKDWLVSHUYDVLYHO\VKDUHGE\DODUJHFODVVRI
VWDQGLQJUHTXLUHPHQWLQWKHVHWHUPV                                             FLWL]HQV6HH9DOOH\)RUJH86DW6&W
                                                                                 7KLUGLQVWDWXWRU\FDVHVWKHSODLQWLIIjVFODLPPXVW
       6WDQGLQJ LV mWKH WKUHVKROG TXHVWLRQ LQ HYHU\ IHGHUDO               IDOOZLWKLQWKHm]RQHRILQWHUHVWVlUHJXODWHGE\WKHVWDWXWH
    FDVHl :DUWK  86 DW   6&W   7KH                 LQTXHVWLRQ6HHLG7KHVHDGGLWLRQDOUHVWULFWLRQVHQIRUFH
    6XSUHPH&RXUWKDVVWDWHGWKDWWKHVWDQGLQJUHTXLUHPHQW                       WKHSULQFLSOHWKDWmDVDSUXGHQWLDOPDWWHUWKHSODLQWLII
    OLPLWVIHGHUDOFRXUWMXULVGLFWLRQWRDFWXDOFRQWURYHUVLHVVR                 PXVW EH D SURSHU SURSRQHQW DQG WKH DFWLRQ D SURSHU
    WKDW WKH MXGLFLDO SURFHVV LV QRW WUDQVIRUPHG LQWR m µD              YHKLFOHWRYLQGLFDWHWKHULJKWVDVVHUWHGl3HVWUDNY2KLR
    YHKLFOH IRU WKH YLQGLFDWLRQ RI WKH YDOXH LQWHUHVWV RI                (OHFWLRQV&RPPjQ)GWK&LU
    FRQFHUQHGE\VWDQGHUVjl9DOOH\)RUJH&KULVWLDQ&ROOHJH
    Y$PHULFDQV8QLWHGIRU6HSDUDWLRQRI&KXUFK	6WDWH                      &R\QHY$PHULFDQ7REDFFR&R)GWK&LU
    ,QF866&W/(GG                     
    TXRWLQJ8QLWHG6WDWHVY6&5$386
    6&W/(GG7RVDWLVI\                       7KH6HFUHWDU\WDNHVWKHSRVLWLRQWKDWSODLQWLIIVKDYHIDLOHG
    $UWLFOH,,,jVVWDQGLQJUHTXLUHPHQWDSODLQWLIIPXVWKDYH                  WRPHHWDOORIWKHVHUHTXLUHPHQWVDQGRIIHUVWKUHHDUJXPHQWV
    VXIIHUHG VRPH DFWXDO RU WKUHDWHQHG LQMXU\ GXH WR WKH               )LUVWWKDWSODLQWLIIVFDQQRWVKRZWKDWKHFDXVHGWKHPDGLUHFW
    DOOHJHGLOOHJDOFRQGXFWRIWKHGHIHQGDQWWKHLQMXU\PXVW                  LQMXU\,QKLVYLHZHYHQLIWKHLUKHDOWKDQGJHQHUDOZHOIDUH
    EHmIDLUO\WUDFHDEOHlWRWKHFKDOOHQJHGDFWLRQDQGWKHUH                  KDYH EHHQ KDUPHG WKH KDUP KDV EHHQ GRQH E\ WKLUGSDUW\
    PXVWEHDVXEVWDQWLDOOLNHOLKRRGWKDWWKHUHOLHIUHTXHVWHG                 PLQH RSHUDWRUV  6HFRQG WKDW WKH\ FDQQRW VKRZ WKDW WKHLU
    ZLOOUHGUHVVRUSUHYHQWWKHSODLQWLIIjVLQMXU\6HH9DOOH\                FODLPHG LQMXULHV ZLOO EH UHGUHVVHG E\ D IDYRUDEOH GHFLVLRQ
    )RUJH  86 DW   6&W   +HQFH WKH               6LPSO\EHFDXVHVWDWHJRYHUQPHQWVUHFHLYHDGGLWLRQDOPRQH\V
    mLUUHGXFLEOHPLQLPXPlFRQVWLWXWLRQDOUHTXLUHPHQWVIRU                      IURPWKH)XQGWKHPHUHSRVVLELOLW\WKDWVRPHRIWKDWPRQH\
    VWDQGLQJ DUH SURRI RI LQMXU\ LQ IDFW FDXVDWLRQ DQG               ZLOO EH XVHG WR UHPHGLDWH GDPDJHG VLWHV RQ SODLQWLIIVj
    UHGUHVVDELOLW\6HHLG$SODLQWLIIEHDUVWKHEXUGHQRI                  SURSHUW\ LV LQVXIILFLHQW WR FRQIHU VWDQGLQJ  )LQDOO\ WKH
    GHPRQVWUDWLQJVWDQGLQJDQGPXVWSOHDGLWVFRPSRQHQWV                       6HFUHWDU\FRQWHQGVWKDWSODLQWLIIVFDQQRWUHVWWKHLUFODLPVRQ
    ZLWKVSHFLILFLW\6HHLG                                                  OHJDOGXWLHVRZHGWRRWKHUVoLQWKLVFDVHWKH&RPPRQZHDOWK
                                                                               RI.HQWXFN\oLQRUGHUWRDVVHUWVWDQGLQJ+HUHWKHLUFODLPHG
                                                                               HQWLWOHPHQW WR D ZULW RI PDQGDPXV LV SUHPLVHG RQ WKH
                                                                               6HFUHWDU\jVIDLOXUHWRDOORFDWHVXIILFLHQWPRQH\IURPWKH)XQG
                                                                               WRWKH&RPPRQZHDOWKRI.HQWXFN\QRWWRSODLQWLIIV
     
      :H QRWH WKDW WKH 6HFUHWDU\ GLG QRW UDLVH WKH VWDQGLQJ LVVXH EHIRUH WKH
GLVWULFW FRXUW DQG LQVWHDG EDVHG KLV MXULVGLFWLRQDO DUJXPHQW VROHO\ RQ WKH
                                                                                 :KLOH ZH DUH QRW SHUVXDGHG E\ DOO RI WKH DUJXPHQWV
GRFWULQH RI VRYHUHLJQ LPPXQLW\ ,W LV WKHUHIRUH KDUGO\ VXUSULVLQJ WKDW WKH     DGYDQFHGE\WKH6HFUHWDU\ZHDJUHHZLWKWKHSURSRVLWLRQWKDW
GLVWULFW FRXUW GLG QRW DGGUHVV WKH TXHVWLRQ RI VWDQGLQJ
