0LFKDá3HOF]DUVNL=G]LVáDZ3HOF]DUVNL
H[HFXWHLWZRXOGYLRODWHWKHWHUPVDQGFRQGLWLRQVRIWKH
DJUHHPHQWRQRUJDQL]DWLRQRIWKH¿QDOWRXUQDPHQWRIWKH
FKDPSLRQVKLSDQGLWZRXOGEHWKHEDVLVIRULWVWHUPLQDWLRQ
HIIHFWLYHLPPHGLDWHO\
7KH DJUHHPHQWV DOVR SURYLGH WKDW 8()$ DVVXPHV DOO
ULJKWVWRWKHRUJDQL]DWLRQWKHFKDPSLRQVKLSIURPWKHKRVW
IRUWKHSHULRGRIDERXWWKUHHZHHNVIROORZLQJWKHSULQFLSOH
KWWSEL]QHVZLHV]MDNSOZLDGRPRVFLSRGDWNRZH8()$
QLH]DSODFLSRGDWNXRGGRFKRGX](852KWPO 3DZHá +XF]NR
WKDWWKHKRVWSURYLGHVLQIUDVWUXFWXUHDQG8()$UXQVWKH
ZKROHHYHQWDQGLWKLUHVWKHVWDGLXPVIURPWKHLURSHUDWRUV
GXULQJWKHHYHQW8()$PDNHVWKHSULPDU\SUR¿WVIURP
EURDGFDVWLQJULJKWVDGYHUWLVLQJVDOHRIWLFNHWVDQGFRQ
WUDFWVZLWKVSRQVRUV)RULQVWDQFHLWWUDQVIHUUHGWKHFKDP
SLRQVKLSEURDGFDVWLQJULJKWVWR3ROLVK7HOHYLVLRQIRUDERXW
3/1PLOOLRQ
6RXUFH³*:´KWWSZZZHX¶SOHXURZV]\VWNLHPHF]H
ZWHOHZL]MLSROVNLHM$SULO
Organizational and financial basis of the undertaking
7DNLQJLQWRDFFRXQWWKHDVVXPSWLRQWKDWJUDQWLQJ3R
ODQGDQG8NUDLQHWKHRUJDQL]DWLRQRI(852FRXOG
KDYH EHHQ D QDWXUDO H[WHQVLRQ RI WKH (XURSHDQ 8QLRQ¶V
SROLF\WRZDUGDVWUDWHJLFFRXQWU\RQHFRXOGDVVXPHWKDW
¿QDQFLQJFRVWO\HYHQWVZRXOGEH H[WHQVLYHO\VXEVLGL]HG
IURPWKH8QLRQ,WVKRXOGEHNHSWLQPLQGKRZHYHUWKDW
DOUHDG\LQ0D\VWLOOEHIRUHWKHGHFLVLRQWRRUJDQ
L]H(852 ZDVPDGH3RODQG ZDV DZDUGHGJUDQWV
IURPWKH6WUXFWXUDO)XQGVDQGIURPWKH1DWLRQDO&RKHVLRQ
)XQG165)IRU±&RQVHTXHQWO\LPPHGLDWHO\
DIWHU(852ZDVJUDQWHGWR3RODQGDQG8NUDLQHDQ
DVVHVVPHQWZDVPDGHRIWKHSRVVLELOLW\RIXVLQJWKHIXQGV
XQGHUWKHHDUOLHUDJUHHGSURSRVDOVIRUWKHSXUSRVHRIHI
¿FLHQWRUJDQL]DWLRQRI(852
7KHIROORZLQJZDV
GHWHUPLQHGLQWKHDQDO\VHVRIWKHSRVVLELOLW\RIXVLQJWKH
8QLRQ¶VIXQGVIRUVWDGLXPLQYHVWPHQWV
±GXH WR WKHLUKLJKFRVWV RYHU (85PLOOLRQ WKH
(XURSHDQ&RPPLVVLRQ¶VDGGLWLRQDOFRQVHQWLVUHTXLUHG
±GXHWRWKHSUR¿WVJHQHUDWHGE\WKHVWDGLXPVWKHSRV
VLELOLW\RIXVLQJWKH8QLRQ¶VIXQGVLVYHU\VPDOO
±WKHLQYHVWPHQWVVKRXOGGHSHQGRQWKHUDWLRQDOFDOFXOD
WLRQRIVRFLDODQGHFRQRPLFFRVWDQGGXHWRWKHGLI¿FXOWLHV
FRQQHFWHG ZLWK ODWHU JHQHUDWLQJ WKH VWDGLXP SUR¿WDELOLW\
DQGLWVXVHIXOQHVVLQDFKLHYLQJWKHJRDOVVHWLQ165)
WKH
SRVVLELOLW\RIXVLQJWKH8QLRQ¶VIXQGVLVYHU\VPDOO
&RQVHTXHQWO\LWZDVUHFRPPHQGHGWKDWSXEOLFSULYDWH
SDUWQHUVKLS333HQWLWLHVVKRXOGEHHVWDEOLVKHGIRUVWDGL
XPLQYHVWPHQWVZKLFKZRXOGXVH%27
W\SHRI¿QDQFLQJ
DWHFKQLTXHSUHVHQWHGLQWKH6WUDWHJ\IRUWKH'HYHORSPHQW
RI6SRUWLQ 3RODQG XQWLO
DVWKH GRPLQDQW IRUP RI
¿QDQFLQJVSRUWVLQIUDVWUXFWXUH
8QGHU %27DSULYDWH FRPSDQ\LV JUDQWHGDOLFHQVH WR
EXLOGDQGXVHDVSRUWVIDFLOLW\ZKLFKQRUPDOO\ZRXOGEHEXLOW
'LUHFWLRQVRIDFWLYLWLHVWRZDUGWKHXVHRIWKH6WUXFWXUDO)XQGVDQG
&RKHVLRQ)XQGVWRHIILFLHQWO\RUJDQL]H(8520LQLVWU\RI5HJLRQDO
'HYHORSPHQW*UDĪ\QD*ĊVLFND:DUVDZ
7KH 1DWLRQDO6WUDWHJLF5HIHUHQFH)UDPHZRUN±± VXS
SRUWLQJ HFRQRPLF JURZWK DQG HPSOR\PHQW 0LQLVWU\ RI 5HJLRQDO
'HYHORSPHQW:DUVDZ
%XLOG2SHUDWH7UDQVIHU
6WUDWHJ\ IRU WKH 'HYHORSPHQW RI 6SRUW LQ 3RODQG XQWLO
0LQLVWU\RI6SRUW:DUVDZ
DQGXVHGE\SXEOLFVHFWRU,WLVDOVRUHVSRQVLEOHIRUWKHGHYHO
RSPHQWRISURMHFWDQG¿QDQFLQJWKHXQGHUWDNLQJ$IWHUWKH
OLFHQVHH[SLUHVWKHFRPSDQ\WUDQVIHUVWKHIDFLOLW\RZQHUVKLS
ULJKWVWRWKHSXEOLFHQWLW\7KHSHULRGIRUZKLFKWKHOLFHQVH
LV JUDQWHGSULPDULO\GHSHQGV RQWKH SHULRGQHHGHGIRUWKH
SUR¿WVJHQHUDWHGIURPWKHLQIUDVWUXFWXUDOIDFLOLW\WRFRYHUWKH
FRPSDQ\¶VGHEWDQGDVVXUHDUHDVRQDEOHUDWHRIUHWXUQIRUWKH
HIIRUWPDGHDQGULVNWDNHQ+RZHYHULQWKHFDVHRI(852
QR333LQYHVWPHQWVKDYHEHHQPDGHLQ3RODQGDQG
WKHUHDVRQIRUWKDWPD\EHOLWWOHLQWHUHVWRQWKHSDUWRISULYDWH
FRPSDQLHVLQPDNLQJVXFKDULVN\LQYHVWPHQWGXULQJFULVLVLQ
DQ(DVWHUQ(XURSHDQFRXQWU\ZKHUHWKHPLGGOHFODVVLVMXVW
EHJLQQLQJWRJURZWKHVRFLHW\KDVOLWWOHOHLVXUHWLPHDQGWKH
FXOWXUHRIVSHQGLQJVXFKWLPHLVGLIIHUHQW
6XPPLQJXSLWFDQEHVDLGWKDWWKHIXQGVIRUWKHGH
YHORSPHQWRILQIUDVWUXFWXUHDSDUWIURPVWDGLXPVZKLFK
ZRXOG VHUYH HI¿FLHQW RUJDQL]DWLRQ RI WKH FKDPSLRQVKLS
ZHUHQRWJUHDWHURUDGGLWLRQDOEXWDVSURYLGHGLQWKHGRFX
PHQWWKH\ZHUHWDNHQIURPWKHVDPHSRRORIIXQGVZKLFK
KDGEHHQDJUHHGZLWKWKH8QLRQLQ0D\VWLOOEHIRUH
WKHDFFHVVLRQWRRUJDQL]H(852
$VDUHVXOWRIDSUHFLVHGLYLVLRQRIJUDQWVLQWR¿YHPDLQ
RSHUDWLRQDO SURJUDPV +XPDQ &DSLWDO 'HYHORSPHQW RI
(DVWHUQ3RODQG,QIUDVWUXFWXUHDQG(QYLURQPHQW,QQRYDWLYH
(FRQRP\ DQG7HFKQLFDO$VVLVWDQFHZKLFK ZRXOGDVVXUH
EDODQFLQJWKHGHYHORSPHQWRILQGLYLGXDOUHJLRQVRI3RODQG
WKH8QLRQ¶VIXQGVUHGLUHFWHGWRWKHLQYHVWPHQWVUHODWHGWR
(852KDGWRKXUWWKHRWKHUUHJLRQV
(852DOVRFRQWULEXWHGWRWKHDFFHOHUDWLRQRILQ
IUDVWUXFWXUHGHYHORSPHQWDQGWKHVHDUHWKHFKDQJHVZKLFK
KDYHEHHQHYLGHQWWRHYHU\FLWL]HQDWWULEXWLQJWKHPWRWKDW
JORULRXVHYHQWIRURXUFRXQWU\7KHVSHFLDOODZVDOORZHG
IRUPRUHHI¿FLHQWDQGHIIHFWLYHDFWLRQVDQGRQHFDQRQO\
hope that there are no concealed defects caused by the
KDVWHZKLFKZLOOUHTXLUHFRVWO\UHSDLUV
,Q 0DUFK (852 ± 32/6.$ 6S ] RR
DFRPSDQ\KHDGHGE\WKH3UHVLGHQWRI3ROLVK)RRWEDOO$V
VRFLDWLRQ3)6ZDVHVWDEOLVKHGWRFRQWURODOOLQYHVWPHQWV
FRQQHFWHGZLWK(852'XH WRWKH REOLJDWLRQVDQG
JXDUDQWHHV SURYLGHG E\ WKH &RXQFLO RI 0LQLVWHUV LQ WKH
DJUHHPHQWEHWZHHQ(8523/DQG8()$LQGLYLGXDO
VWDGLXPVZHUHJUDQWHGDGGLWLRQDOIXQGVLQ±IURP
WKH6WDWH%XGJHW,Q-XQHWKHUHVROXWLRQ1R