Investment Solutions for East Asiahs Pension Savings

"O &%)&$3JTL *OTUJUVUF 1VCMJDBUJPO

*OWFTUNFOU 4PMVUJPOT GPS &BTU "TJBhT 1FOTJPO 4BWJOHT 'JOBODJOH MJGFDZDMF EFàDJUT UPEBZ BOE UPNPSSPX .BZ

XJUI UIF TVQQPSU PG Institute

'JOBODJOH &BTU "TJBhT -JGFDZDMF %FàDJUT

.BZ

5BCMF PG $POUFOUT &YFDVUJWF 4VNNBSZ

*OWFTUNFOU 4PMVUJPOT BSF /FFEFE GPS 1FOTJPO 4BWJOHT JO &BTU "TJB

"DDVNVMBUJPO BOE *OUFSNFEJBUJPO

*NQSPWJOH 3FTFSWF 'VOET

*NQSPWJOH %FàOFE#FOFàU 1MBOT

*NQSPWJOH %FàOFE$POUSJCVUJPO 1MBOT

$PODMVTJPOT

"QQFOEJY +BQBO

"QQFOEJY ,PSFB

"QQFOEJY 5BJXBO

"QQFOEJY .BJOMBOE $IJOB "QQFOEJY )POH ,POH 3FGFSFODFT "CPVU "9" *OWFTUNFOU .BOBHFST "CPVU &%)&$3JTL *OTUJUVUF

&%)&$3JTL *OTUJUVUF 1VCMJDBUJPOT BOE 1PTJUJPO 1BQFST

5IF BVUIPST XPVME MJLF UP UIBOL %PNJOJRVF 'PSHFU +FBO1JFSSF -FPOJ &SXBO #PTDIFS "LJLP /PNVSB :V:JOH ,VP .BTBBLJ 0OP 4UVBSU -FDLJF 3JUB 9JBP /BUBMJF (BMMFSZ 8JMTPO 4Z ,FWJO -JV 0MJWJB .JUDIFMM .JDIBFM %SFX )FJLLJ 0LTBOFO +PTFG 1JMHFS +BNFT -JO 'SÊEÊSJD %VDPVMPNCJFS BOE /PÌM "NFOD GPS VTFGVM DPNNFOUT BOE TVHHFTUJPOT 'JOBODJBM TVQQPSU GSPN "9"*. JT BDLOPXMFEHFE 5IJT TUVEZ QSFTFOUT UIF BVUIPShT WJFXT BOE DPODMVTJPOT XIJDI BSF OPU OFDFTTBSJMZ UIPTF PG "9"*. 1SJOUFE JO 4JOHBQPSF .BZ $PQZSJHIU¥&%)&$ 5IF PQJOJPOT FYQSFTTFE JO UIJT TUVEZ BSF UIPTF PG UIF BVUIPST BOE EP OPU OFDFTTBSJMZ SFáFDU UIPTF PG &%)&$ #VTJOFTT 4DIPPM 'JOBODJOH &BTU "TJBhT -JGFDZDMF %FàDJUT

.BZ

'JOBODJOH &BTU "TJBhT -JGFDZDMF %FàDJUT .BZ

'PSFXPSE

5IF QVSQPTF PG UIJT QVCMJDBUJPO XIJDI JT ESBXO GSPN UIF "9" *OWFTUNFOU .BOBHFST SFTFBSDI DIBJS BU &%)&$3JTL *OTUJUVUF PO i3FHVMBUJPO BOE *OTUJUVUJPOBM *OWFTUNFOUu JT UP FYBNJOF UIF SPMF PG QFOTJPO TZTUFNT JO UIF àOBODJOH PG DVSSFOU BOE GVUVSF TUBOEBSET PG MJWJOH JO "TJBT BHFJOH OBUJPOT BOE UP TUVEZ UIF QPUFOUJBM DPOUSJCVUJPO PG TDJFOUJàD BTTFU NBOBHFNFOU UP UIF DIBMMFOHFT GBDFE CZ UIF SFHJPOT QFOTJPO SFTFSWF GVOET BOE GVOEFE QFOTJPO TDIFNFT 5IF àWF KVSJTEJDUJPOT SFWJFXFE JO UIJT TUVEZ )POH ,POH +BQBO ,PSFB .BJOMBOE $IJOB BOE 5BJXBO IBWF JNQPSUBOU DPNNPO USBJUT JNQBDUJOH UIF TUBUF BOE IFBMUI PG QFOTJPO TZTUFNT UIFJS QPQVMBUJPOT BSF BHFJOH BU B VOJRVFMZ SBQJE QBDF BOE UIFJS FDPOPNJD EFWFMPQNFOU USBKFDUPSZ JT DIBSBD UFSJTFE CZ FRVBMMZ SBQJE DIBOHF BOE TJHOJG JDBOU àOBODJBM BOE FDPOPNJD JNCBMBODFT 5IF TUBLFT BSF IJHI GPS UIF QPQVMBUJPOT PG &BTU "TJB TJODF DVSSFOU USFOET NBZ MFBE UP B TJHOJàDBOU SJTF JO QPWFSUZ GPS UIF OFYU HFOFSBUJPO PS UP QVCMJD MJBCJMJUJFT PO B WFSZ MBSHF TDBMF PS CPUI

5IJT SFRVJSFT VOEFSTUBOEJOH UIF EFNPHSBQIJD QSPDFTT UIBU DSFBUFT FYQMJDJU BOE JNQMJDJU MJBCJMJUJFT GPS FBDI IPVTFIPME BOE FOUJSF OBUJPOT BDSPTT TFWFSBM HFOFSB UJPOT *U BMTP SFRVJSFT BEESFTTJOH UIF SJTLT PG TUSVDUVSBM JNCBMBODFT BOE UIF JNQBDU PG B QPUFOUJBM SFCBMBODJOH PG &BTU "TJBO FDPOPNJFT 'JOBMMZ SFHVMBUJPO OFFET UP IFMQ DIBOOFM UIF SFHJPOhT TBWJOHT JOUP BEFRVBUF SFUJSFNFOU TPMVUJPOT 5IJT QVCMJDBUJPO FYBNJOFT UIFTF JTTVFT GPS QFOTJPO SFTFSWF GVOET EFàOFECFOFàU BOE EFàOFEDPOUSJCVUJPO QMBOT *U QSPQPTFT B QFSTQFDUJWF PO UIF SFHJPOT QFOTJPO TZTUFNT UIBU JT OFX UP UIF QFOTJPO MJUFSBUVSF *U BEESFTTFT CPUI NBDSP BOE NJDSPFDPOPNJD JTTVFT XIJDI BMUIPVHI JOUSJDBUFMZ SFMBUFE IBE IFSFUPGPSF CFFO USFBUFE TFQBSBUFMZ *UT DPODMVTJPO JT VOBNCJHVPVT BEPQUJOH TUBUFPGUIFBSU BTTFU NBOBHFNFOU UFDIOJRVFT BOE TVJUBCMZ EFTJHOFE JOWFTUNFOU TPMVUJPOT CFGPSF UIF SFHJPOT EFNPHSBQIJD XJOEPX PG PQQPSUVOJUZ DMPTFT DPVME HP B MPOH XBZ JO IFMQJOH &BTU "TJB BWFSU MPPNJOH QFOTJPO DSJTFT

*O UIJT DPOUFYU XF IJHIMJHIU BO JNQPSUBOU DPOVOESVN XIJMF &BTU "TJBhT IPVTFIPMET TBWF DPOTJEFSBCMZ NPSF UIBO JO UIF SFTU PG UIF XPSME POMZ B MJNJUFE BNPVOU PG UIFTF TBWJOHT IBT TP GBS NBEF JUT XBZ JOUP EFEJDBUFE JOWFTUNFOU TPMVUJPOT EFTJHOFE UP QSPUFDU DPOTVNQUJPO MFWFMT QPTUSFUJSFNFOU

8F BSF HSBUFGVM UP "9" *OWFTUNFOU .BOBHFST GPS UIFJS TVQQPSU PG UIJT TUVEZ BOE GPS POHPJOH DPNNJUNFOU UP UIF i3FHVMBUJPO BOE *OTUJUVUJPOBM *OWFTUNFOUu SFTFBSDI DIBJS BU &%)&$3JTL *OTUJUVUF

"WFSUJOH &BTU "TJBhT QFOTJPO DSJTJT JT UIVT QPTTJCMF JG UIF SFHJPOT WBTU TBWJOHT DBO CF VTFE BEFRVBUFMZ UP àOBODF GVUVSF DPOTVNQUJPO OFFET

'SÊEÊSJD %VDPVMPNCJFS %JSFDUPS &%)&$ 3JTL *OTUJUVUF"TJB



.BZ


"CPVU UIF "VUIPST

'SÊEÊSJD #MBOD#SVEF JT 3FTFBSDI %JSFDUPS BU &%)&$ 3JTL *OTUJUVUFm "TJB )JT SFTFSBDI JOUFSFTUT JODMVEF MPOHUFSN DPOUSBDUT EJTDPVOUJOH QPSUGPMJP DPOTUSVDUJPO BTTFU QSJDJOH BTTFU BMMPDBUJPO JOGSBTUSVDUVSF QSPKFDU àOBODF BOE QFOTJPO FDPOPNJDT )F IPMET B 1I% JO 'JOBODF GSPN ,JOHhT $PMMFHF -POEPO BO .4D JO 1PMJUJDBM 5IFPSZ GSPN UIF -POEPO 4DIPPM PG &DPOPNJDT B .BTUFS JO &DPOPNJDT GSPN 1BSJT 4PSCPOOF 6OJWFSTJUZ BOE JT B HSBEVBUF PG UIF 1BSJT *OTUJUVUF PG 1PMJUJDBM 4UVEJFT 4DJFODFT1P 1BSJT )F BMTP IBT XJEFSBOHJOH FYQFSJFODF JO UIF SFHJPO JODMVEJOH UISFF ZFBST BT .BOBHJOH %JSFDUPS PG B CPVUJRVF àOBODJBM BEWJTPSZ àSN JO $IJOB

'SBOÉPJT $PDRVFNBT JT B 1I% JO 'JOBODF DBOEJEBUF BOE 3FTFBSDI "TTJTUBOU BU &%)&$3JTL *OTUJUVUF )JT SFTFBSDI TQFDJBMJTFT JO NBSLFU NJDSPTUSVDUVSF BTTFU QSJDJOH BOE UIF FWBMVBUJPO PG SFHVMBUPSZ JNQBDUT 'SBOÉPJT IPMET B .BTUFS JO 'JOBODF GSPN UIF 1BSJT *OTUJUVUF PG 1PMJUJDBM 4UVEJFT 4DJFODFT1P 1BSJT BOE B .BTUFS JO &DPOPNJDT BOE 1VCMJD 1PMJDZ GSPN DPMF 1PMZUFDIOJRVF &/4"& BOE 4DJFODFT1P 1BSJT #FGPSF KPJOJOH &%)&$ IF IBT XPSLFE BT B -FDUVSFS JO &DPOPNJDT BU 4DJFODFT1P 1BSJT BOE BT BO &RVJUZ 3FTFBSDI "TTJTUBOU "OBMZTU BU /BUJYJT 4FDVSJUJFT

"MCFOB (FPSHJFWB JT B +VOJPS 3FTFBSDI "OBMZTU BU &%)&$ 3JTL *OTUJUVUF"TJB 4IF IBT àWF ZFBST PG FYQFSJFODF SFTFBSDIJOH BOE JOUFS BDUJOH XJUI JOTUJUVUJPOBM JOWFTUPST XJUI B GPDVT PO UIF QFOTJPO GVOE JOEVTUSZ JO &VSPQF /PSUI "NFSJDB BOE "TJB 4IF IPMET B #" JO #VTJOFTT "ENJOJTUSBUJPO GSPN UIF "NFSJDBO 6OJWFSTJUZ PG #VMHBSJB #FGPSF +PJOJOH &%)&$3JTL *OTUJUVUF TIF XBT B 4FOJPS &YFDVUJWF 1SPEVDFS XJUI .BSDVT &WBOT



.BZ

&YFDVUJWF 4VNNBSZ



.BZ


&YFDVUJWF 4VNNBSZ

5XP PG UIF NPTU DPNNPOQMBDF TUZMJTFE GBDUT BCPVU &BTU "TJB IBWF UP EP XJUI QFOTJPO JTTVFT UIF SFHJPOhT QPQVMBUJPO JT BHFJOH GBTU BOE JUT IPVTFIPME TFDUPS IBT IJHI TBWJOHT SBUFT #PUI JEFBT BSF JOUVJUJWFMZ SFMBUFE BT EFNPHSBQIJD USBOTJUJPOT PDDVS NPSF JOEJWJEVBMT TIPVME TBWF JO QSFQBSBUJPO GPS UIFJS SFUJSFNFOU *O UIJT QBQFS XF FYBNJOF UIF SFMBUJPOTIJQ CFUXFFO TBWJOHT BOE SFUJSFNFOU JODPNF JO &BTU "TJB EFàOFE BT /PSUI&BTU "TJB BOE (SFBUFS $IJOB +BQBO ,PSFB 5BJXBO $IJOB BOE )POH ,POH "SF &BTU "TJBhT TBWJOHT JOWFTUFE JO EFEJDBUFE QFOTJPO QMBOT EFTJHOFE UP EFMJWFS QPTU SFUJSFNFOU JODPNF "SF UIFTF QMBOT XIFO UIFZ FYJTU BEFRVBUFMZ EFTJHOFE 5IFTF RVFTUJPOT BSF QBSU PG B CSPBEFS JTTVF IPX TIPVME B TPDJFUZ BEBQU UP DIBOHFT JO JUT BHF TUSVDUVSF UP àOBODF BOE NBJOUBJO JUT QSFTFOU BOE GVUVSF TUBOEBSE PG MJWJOH FTQFDJBMMZ XIFO UIF TIBSF PG UIF FMEFSMZ JO UIF QPQVMBUJPO JT TFU UP JODSFBTF DPOUJOV PVTMZ %FNPHSBQIJD USBOTJUJPOT BSF FQPDIBM UIFZ IBQQFO POMZ PODF BOE DSFBUF CPUI SJTLT BOE PQQPSUVOJUJFT 'PS UIJT SFBTPO JU NBUUFST GPS NPTU DPVOUSJFT UP MFBSO GSPN UIPTF XIP FYQFSJFODF UIFTF DIBOHFT àSTU *O UIJT QFSTQFDUJWF &BTU "TJB NBLFT GPS BO JOUFSFTUJOH DBTF TUVEZ GPS UIF SFTU PG UIF XPSME TJODF JU JT FYQFSJFODJOH UIF GBTUFTU EFNPHSBQIJD USBOTJUJPO JO UIF XPSME BOE JO IJTUPSZ

5IF DIBMMFOHFT PG QFOTJPO BTTFU NBOBHFNFOU JO &BTU "TJB )PVTFIPMET TBWF CVU OPU JO QFOTJPO QMBOT 6OEFS UIF DMBTTJD MJGFDZDMF IZQPUIFTJT BDDPSEJOH UP XIJDI JOEJWJEVBMT BJN UP TNPPUI UIFJS DPOTVNQUJPO QSPàMF CZ WBSZJOH QFSJPET PG CPSSPXJOH TBWJOHT BOE EJTTBWJOHT EVSJOH UIFJS MJGF EFNPHSBQIJD USBOTJUJPOT TIPVME DPJODJEF XJUI BO JOJUJBM JODSFBTF JO BHHSFHBUF TBWJOHT BT UIF XPSLGPSDF QSFQBSFT UP à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àOBODJBM BTTFUT JO DBTI PS WFSZ MJRVJE JOTUSVNFOUT BOE MJUUMF PG UIFJS TBWJOHT JT DIBOOFMMFE UPXBSET EFEJDBUFE QFOTJPO TDIFNFT *O GBDU UIF TJ[F PG UIF QFOTJPO TFDUPS JT TVDI UIBU QVCMJD QFOTJPO SFTFSWFT PGUFO SFQSFTFOU NPSF UIBO UXP UIJSET PG QFOTJPOSFMBUFE BTTFUT TVHHFTUJOH UIBU QSJWBUF QFOTJPO BDDVNVMBUJPO IBT CBSFMZ TUBSUFE UP UBLF QMBDF JO UIF SFHJPO 8IJMF UIJT NBZ CF FYQFDUFE JO DPVOUSJFT UIBU IBWF SFDFOUMZ DSFBUFE GVOEFE QFOTJPO TDIFNFT TVDI BT $IJOB UIF +BQBOFTF FYBNQMF TVHHFTUT UIBU



.BZ


&YFDVUJWF 4VNNBSZ

ZFBST PG QFOTJPO SFGPSNT NBZ OPU OFDFT TBSJMZ MFBE WFSZ GBS JG TVGàDJFOU JODFOUJWFT BSF OPU JO QMBDF 5IVT &BTU "TJBhT IPVTFIPMET DMFBSMZ IBWF JODFOUJWFT UP TBWF CVU NPTUMZ OPU JO EFEJDBUFE QFOTJPO TDIFNFT BOE JU GPMMPXT GSPN UIJT BCTFODF PG JOUFSNFEJBUJPO PG TIPSUUFSN IPVTFIPME TBWJOHT JOUP MPOH UFSN SFUJSFNFOU JODPNF TPMVUJPOT UIBU GVUVSF SFUJSFFT GBDF B TVCTUBOUJBM SJTL PG JOBEFRVBUF SFUJSFNFOU JODPNF BOE FWFO QPWFSUZ JO PME BHF XIJMF UIF DVSSFOU XPSLGPSDF BOE UIF OFYU HFOFSBUJPO GBDF B OPO OFHMJHJCMF SJTL PG IBWJOH UP àOBODF UIF DPOTVNQUJPO PG SFUJSFFT UIPVHI JODSFBTJOH QVCMJD BOE QSJWBUF USBOTGFST *O UIJT QBQFS XF IJHIMJHIU UISFF DIBMMFOHFT UIBU OFFE UP CF BEESFTTFE UP JNQSPWF QFOTJPO PVUDPNFT JO &BTU "TJB !

!

!

" EFNPHSBQIJD DIBMMFOHF XIJDI JT ESJWJOH UIF EZOBNJDT PG UIF MJBCJMJUZ UP XIJDI GVUVSF SFUJSFFT BOE TPDJFUZ BSF FYQPTFE "O JOWFTUNFOU DIBMMFOHF XIJDI TQSJOHT GSPN UIF FDPOPNJD GVOEBNFOUBMT PG UIF SFHJPO JO QBSUJDVMBS B OVNCFS PG TUSVDUVSBM àOBODJBM EJTUPSUJPOT JOUSPEVDFE CZ UIF TPDBMMFE z&BTU "TJBO NPEFMh PG FDPOPNJD EFWFMPQNFOU BOE " SFHVMBUJPO DIBMMFOHF TJODF &BTU "TJB OFFET UP JODFOUJWJTF BEFRVBUF BDDVNV MBUJPO JO JOWFTUNFOU WFIJDMFT EFEJDBUFE UP NFFUJOH BEFRVBUF DPOTVNQUJPO UBSHFUT

1PQVMBUJPO BHFJOH JT DPNQPVOEJOH UIF BCTFODF PG QFOTJPO TBWJOHT JOUFSNFEJBUJPO 5IF BCTFODF PG JOUFSNFEJBUJPO EJTDVTTFE BCPWF JF UIF GBDU UIBU NPTU JOEJWJEVBM TBWJOHT JO &BTU "TJB BSF OPU JOWFTUFE JO EFEJDBUFE QFOTJPO GVOET PS TUSBUFHJFT JT BMM UIF NPSF QSPCMFNBUJD XIFO UIF OFFE UP àOBODF PME BHF DPOTVNQUJPO JODSFBTFT DPOUJOVPVTMZ 3FDFOU SFTFBSDI TIPXT UIBU BT QPQVMB UJPOT BHF BOE FDPOPNJFT EFWFMPQ UIF QFS DBQJUB DPOTVNQUJPO PG SFUJSFFT FTQFDJBMMZ UIFJS DPOTVNQUJPO PG IFBMUIDBSF HSPXT WFSZ SBQJEMZ PWFS BOE BCPWF DPOTVNQUJPO MFWFMT PCTFSWFE EVSJOH UIFJS XPSLJOH MJGF *G IFBMUIDBSF JT NPTUMZ QVCMJD BOE àOBODFE CZ UBYJOH DVSSFOU XPSLFST QPQVMBUJPO BHFJOH DBO UIVT JNQBJS UIF BCJMJUZ PG UIF OFYU HFOFSBUJPO UP TBWF GPS JUT PXO SFUJSFNFOU 5IVT XIJMF BDIJFWJOH QPTUSFUJSFNFOU DPOTVNQUJPO PCKFDUJWFT JT UIF à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


.BZ


&YFDVUJWF 4VNNBSZ

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áPX PG NJHSBOUT POHPJOH BOE BDDFM FSBUJOH QPQVMBUJPO BHFJOH DSFBUFT B NVDI NPSF VSHFOU BOE VOBWPJEBCMF QSPCMFN 5PHFUIFS UIFTF DPVOUSJFT SFQSFTFOUFE PG &BTU "TJBhT (%1 BOE PG JUT QPQVMBUJPO JO %VSJOH B EFNPHSBQIJD USBOTJUJPO UIF XPSLGPSDF àSTU HSPXT GBTUFS UIBO UIF UPUBM QPQVMBUJPO SFTVMUJOH JO B NFDIBOJDBM HSPXUI PG PVUQVU QFS DBQJUB FWFO JG MBCPVS QSPEVDUJWJUZ EPFT OPU JODSFBTF 5IJT JT LOPXO BT UIF zàSTU EFNPHSBQIJD EJWJEFOEh BOE BSJTFT CFDBVTF UIF QPQVMBUJPO JT DPODFO USBUFE JO BHFT EVSJOH XIJDI QSPEVDUJPO FYDFFET DPOTVNQUJPO UIF HSPXUI SBUF PG UIF OVNCFS PG FGGFDUJWF QSPEVDFST FYDFFET UIBU PG UIF OVNCFS PG FGGFDUJWF DPOTVNFST 5IF àSTU EFNPHSBQIJD EJWJEFOE JT OFDFTTBSJMZ USBOTJUPSZ BOE XJUI QPQVMBUJPO BHFJOH JU JT FWFOUVBMMZ SFWFSTFE BOE CFDPNFT B ESBH PO FDPOPNJD HSPXUI -PPLJOH BU B HMPCBM

TBNQMF -FF BOE .BTPO DBMDVMBUF UIBU UIF MBSHFTU EFDMJOFT JO XFBMUI CZ XJMM PDDVS JO 4PVUI ,PSFB +BQBO BOE 5BJXBO )PXFWFS UIF MJUFSBUVSF BMTP IJHIMJHIUT UIF QPTTJCJMJUZ PG B TFDPOE EFNPHSBQIJD EJWJEFOE UIF DPOTFRVFODF PG UIF BDDVNV MBUJPO PG TBWJOHT SFTVMUJOH GSPN UIF JOJUJBM SBQJE JODSFBTF PG UIF QSPQPSUJPO PG XPSLFST JO UIF UPUBM QPQVMBUJPO )JHIFS TBWJOHT TIPVME USBOTMBUF JOUP IJHIFS JOWFTUNFOU QFS XPSLFS BOE UIJT zDBQJUBM EFFQFOJOHh IJHIFS DBQJUBM JOWFTUNFOU QFS VOJU PG MBCPVS TIPVME BMTP MFBE UP IJHIFS MBCPVS QSPEVDUJWJUZ 5IJT USBOTNJTTJPO DIBOOFM JT QBSUJDVMBSMZ JNQPSUBOU PODF QPQVMBUJPO BHFJOH IBT CFHVO BOE UIF XPSLGPSDF IBT TUBSUFE UP TISJOL )FSF UIF TBWJOHT PG SFUJSFFT BSF FYQFDUFE UP TVQQPSU MBCPVS QSPEVDUJWJUZ HSPXUI BOE PGGTFU UIF SFWFSTBM PG UIF àSTU EFNPHSBQIJD EJWJEFOE -FF BOE .BTPO 4UJMM GPS UIF MBTU TUBHF PG EFNPHSBQIJD USBOTJUJPO UP ZJFME B OFX EJWJEFOE NVDI EFQFOET PO UIF VTFT UIBU BSF NBEF PG UIF BDDVNVMBUFE TBWJOHT JODMVEJOH QFOTJPO BTTFUT 5IF EFNPHSBQIJD MJUFSBUVSF UZQJDBMMZ BTTVNFT UIBU SFUJSFNFOU TBWJOHT XJMM CF DIBOOFMFE JOUP FGàDJFOU QSPEVDUJWF BOE TVTUBJOBCMF FOEFBWPVST )PXFWFS JG GPS FYBNQMF NPTU QFOTJPO TBWJOHT BSF JOWFTUFE JO HPWFSONFOU CPOET UIF QSPDFFET PG XIJDI BSF VTFE UP TVQQPSU JODSFBTJOHMZ FYQFOTJWF QVCMJD IFBMUIDBSF BOE MPOHUFSN DBSF QSPHSBNT GPS UIF FMEFSMZ UIF MJOL



.BZ


&YFDVUJWF 4VNNBSZ

CFUXFFO QFOTJPO TBWJOHT BOE MPOHUFSN HSPXUI DBO TFFN UFOVPVT BU CFTU 5IVT UIF JOWFTUNFOU BOE UIF NBOBHFNFOU PG UIF MBSHF QPPMT PG TBWJOHT UIBU OPX FYJTU JO &BTU "TJB IBWF QPUFOUJBMMZ GBS SFBDIJOH DPOTFRVFODFT PO UIF PVUDPNF PG QPQVMBUJPO BHFJOH BOE UIJT JT QBSUMZ B GVODUJPO PG UIF UZQF PG QFOTJPO TDIFNFT UIBU BSF NBEF BWBJMBCMF GPS DVSSFOU XPSLFST BOE SFUJSFFT .PSFPWFS XIJMF UIF IZQPUIFTJT UIBU TBWJOHT NVTU SJTF EVSJOH UIF àSTU TUBHFT PG UIF EFNPHSBQIJD USBOTJUJPO JT DPOàSNFE CZ FNQJSJDBM TUVEJFT SFDFOU SFTFBSDI TVHHFTUT UIBU UIF OFYU QIBTF PG UIF zQVSF MJGFDZDMF NPEFMh EVSJOH XIJDI JOEJWJEVBMT BSF FYQFDUFE UP EJTTBWF EPFT OPU DVSSFOUMZ BQQMZ JO OVNFSPVT QBSUT PG UIF XPSME JODMVEJOH &BTU "TJB %BUB DPMMFDUFE GPS UIF /BUJPOBM 5SBOTGFS "DDPVOU QSPKFDU /5"

DPWFSJOH DPVOUSJFT TQBOOJOH UIF HMPCBM EJTUSJCVUJPO PG JODPNF QFS DBQJUB TJODF UIF T BMMPXT UIF DBMDVMBUJPO PG B MJGFDZDMF EFàDJU -$% GPS FBDI BHF JO B QPQVMBUJPO UIF EJGGFSFODF CFUXFFO BMM QSJWBUF BOE QVCMJD DPOTVNQUJPO QVCMJDMZ QSPWJEFE HPPET BOE TFSWJDFT BOE BMM MBCPVS JODPNF GSPN UIF GPSNBM TFDUPS JODMVEJOH TFMG FNQMPZNFOU BOE BOZ DPOUSJCVUJPOT NBEF CZ FNQMPZFST CFGPSF BOZ UBYFT 5IF MJGFDZDMF EFàDJU PG FBDI BHF USBODIF JO UIF QPQVMBUJPO JT TJNQMZ UIF EJGGFSFODF CFUXFFO JUT UPUBM DPOTVNQUJPO BOE JUT MBCPVS JODPNF JO UIBU QFSJPE "T B NBUUFS PG BDDPVOUJOH JEFOUJUZ MJGFDZDMF EFàDJUT BSF

FRVBM UP UIF TVN PG OFU USBOTGFST QVCMJD BOE QSJWBUF

QMVT BTTFU JODPNF NJOVT TBWJOHT JO UIBU QFSJPE *O PUIFS XPSET GPS FBDI BHF HSPVQ JOáPXT MBCPVS JODPNF USBOTGFST BOE BTTFU JODPNF NVTU CF NBUDIFE CZ PVUáPXT DPOTVNQUJPO USBOTGFST BOE TBWJOHT BOE CZ DPOTUSVDUJPO MJGFDZDMF EFàDJUT BSF GVOEFE CZ OFU QSJWBUF BOE QVCMJD USBOTGFST BOE CZ BTTFU JODPNF PS EFCU 8F àOE B WFSZ TUSPOH MJOFBS SFMBUJPOTIJQ CFUXFFO UIF MJGFDZDMF TVSQMVT PG UIF XPSLGPSDF BOE (%1 QFS DBQJUB BOE B TJNJMBSMZ SPCVTU MJOFBS SFMBUJPOTIJQ CFUXFFO (%1 QFS DBQJUB BOE UIF DPNCJOFE MJGFDZDMF EFàDJU PG UIF ZPVOHFS BOE PMEFS TFHNFOUT PG UIF QPQVMBUJPO 5IF EFàDJU IPXFWFS HSPXT SPVHIMZ UISFF UJNFT BT GBTU BT UIF DPSSFTQPOEJOH TVSQMVT /5" EBUB UIVT TVHHFTU B DMFBS zMJGFDZDMF EFàDJU QBUIh BT FDPOPNJFT NPWF VQ UIF (%1 QFS DBQJUB TDBMF 4PNF LFZ àOEJOHT GPS UIF /5" QSPKFDU DIBMMFOHFT UXP JNQPSUBOU IZQPUIFTFT VTFE JO UIF QVSF MJGFDZDMF NPEFM XIJDI VOEFSQJOT TP NVDI QFOTJPO UIJOLJOH !

/P NPSF DPOTVNQUJPO TNPPUIJOH *O ZPVOHFS BOE QPPSFS QPQVMBUJPOT UIF QFS DBQJUB DPOTVNQUJPO QSPàMF PG UIF FMEFSMZ JT MPXFS UIBO UIBU PG UIF XPSLGPSDF "T UIF FDPOPNZ EFWFMPQT BOE MJGF FYQFDUBODZ JODSFBTFT UIF BHF DPOTVNQUJPO QSPàMF CFDPNFT áBU BDSPTT UIF MJGFDZDMF CVU FWFOUVBMMZ UIF QFS DBQJUB DPOTVNQUJPO PG UIF FMEFSMZ CFDPNFT UIF IJHIFTU PG UIF QPQVMBUJPO JG CPUI QVCMJD BOE QSJWBUF "O &%)&$3JTL *OTUJUVUF 1VCMJDBUJPO


.BZ


&YFDVUJWF 4VNNBSZ

!

DPOTVNQUJPO BSF UBLFO JOUP BDDPVOU 5IJT TVHHFTUT UIBU UIF PCKFDUJWF PG QFOTJPO TBWJOHT NBZ IBWF MJUUMF UP EP XJUI DPOTVNQUJPO TNPPUIJOH *G UIF NBKPSJUZ PG PME BHF DPOTVNQUJPO JT QVCMJD IFBMUIDBSF àOBODFE CZ UBYJOH UIF XPSLGPSDF JF UIF OFYU HFOFSBUJPO

UIFO BTTVNJOH OP GSFFSJEJOH CFUXFFO HFOFSBUJPOT B QPPM PG TFWFSBM HFOFSB UJPOT DPVME DPOTJEFS UIJT DPOTVNQUJPO PCKFDUJWF UP CF JUT MJBCJMJUZ UBSHFU *G PO UIF DPOUSBSZ UIF NBKPSJUZ PG PMEBHF IFBMUIDBSF DPOTVNQUJPO JT QSJWBUFMZ àOBODFE UIFO JU JT B MJBCJMJUZ GPS FBDI HFOFSBUJPO PG SFUJSFFT BOE TIPVME CF QBSU PG JUT QPTUSFUJSFNFOU DPOTVNQUJPO PCKFDUJWFT XJUI JNQPSUBOU JNQMJDBUJPOT GPS QFOTJPO TBWJOHT JOWFTUNFOU DIPJDFT 3FUJSFFT EP OPU EJTTBWF *O NPTU DPVOUSJFT JO UIF XPSME XIFSF IFBMUIDBSF JT NPTUMZ àOBODFE CZ QVCMJD USBOTGFST

UIFSF JT DVSSFOUMZ OP FWJEFODF PG EJTTBWJOHT JO PME BHF DVSSFOU SFUJSFFT IBWF DPOUJOVFE UP IBWF QPTJUJWF OFU TBWJOHT BOE UP BDDVNVMBUF àOBODJBM BTTFUT BGUFS UIFZ IBWF SFUJSFE XIJMF UIF XPSLGPSDF TVQQPSUT NPTU PG UIF JODSFBTJOH IFBMUIDBSF DPTUT PG PME BHF BT XFMM BT UIF JODSFBTJOH FEVDBUJPO DPTUT PG ZPVOH BHF 5IF POMZ DMFBSMZ EPDVNFOUFE DBTF PG PME BHF EJTTBWJOH JT GPVOE JO UIF 64 *O UIF SFTU PG UIF XPSME DVSSFOU SFUJSFFT BSF OPU QBSUJDVMBSMZ BU SJTL CFDBVTF UIFZ SFDFJWF TVCTUBOUJBM QVCMJD USBOTGFST BOE UIVT DBO BMTP DPOUJOVF UP BDDVNVMBUF

5IVT CPUI BU UIF JOEJWJEVBM BOE BU UIF BHHSFHBUF MFWFM QPQVMBUJPO BHFJOH DPNCJOFE XJUI IJHIFS XFBMUI QFS DBQJUB

DSFBUFT B QSFEJDUBCMF BOE JODSFBTJOH MJBCJMJUZ QSPDFTT EFàOFE BT UIF QFS DBQJUB DPOTVNQUJPO JO FBDI QPTUSFUJSFNFOU ZFBS BT XFMM BT JO FBDI QSFXPSL ZFBS *O NPTU DPVOUSJFT UIJT MJBCJMJUZ JT NPTUMZ UIF SFTVMU PG UIF JODSFBTJOH DPTU PG FEVDBUJPO BOE IFBMUIDBSF QFS DBQJUB UIBU JT DPODPNJUBOU XJUI QPQVMBUJPO BHFJOH 5IJT MJBCJMJUZ JT CPUI UIBU PG UIF OBUJPO BOE PG FBDI JOEJWJEVBM BDSPTT TFWFSBM HFOFSBUJPOT *OTUFBE PG JOWBMJEBUJOH UIF MJGFDZDMF NPEFM UIFTF àOEJOHT TVHHFTU UIBU UIF FYJTUFODF PG HFOFSPVT QVCMJD QFOTJPOT BOE TPDJBM TFDVSJUZ DSFBUFT B HFOFSBUJPOBM MBH JO UIF OFFE GPS JOEJWJEVBMT UP BEBQU UIFJS TBWJOHT BOE DPOTVNQUJPO CFIBWJPVS BT B GVODUJPO PG UIFJS BCJMJUZ UP HFOFSBUF BO JODPNF 5IF DVSSFOU HFOFSBUJPO XPVME UIVT CF CFOFàUJOH GSPN FYDFQUJPOBMMZ GBWPVSBCMF DJSDVNTUBODFT BOE UIF OFDFTTBSZ BEBQUBUJPO UP UIF JNQBDU PG EFNPHSBQIJD DIBOHF NBZ IBWF UP CF CPSOF FOUJSFMZ CZ GPMMPXJOH HFOFSBUJPOT *NQPSUBOUMZ UIJT PVUDPNF IBT TP GBS SFNPWFE NVDI JODFOUJWF GPS SFUJSFFT UP JOWFTU UIFJS QFOTJPO TBWJOHT JO PSEFS UP NFFU UIFJS FGGFDUJWF DPOTVNQUJPO MFWFM TJODF NPTU PG UIJT DPOTVNQUJPO JT OPU àOBODFE CZ UIFJS TBWJOHT *G BT UIF /5" EBUB TIPXT DVSSFOU SFUJSFFT EP OPU OFFE PO BWFSBHF UP EJTTBWF UIFO FWFO UIF NPTU DPOTFSWBUJWF BMMPDBUJPO PG UIFJS QFOTJPO TBWJOHT JT TVGàDJFOU 5IJT JO UVSO IBT DPOTJEFSBCMZ MPXFSFE UIF EFNBOE GPS PQUJNBM JOWFTUNFOU TPMVUJPOT TP GBS



.BZ


&YFDVUJWF 4VNNBSZ

.PSFPWFS UIF MJBCJMJUZ SFQSFTFOUFE CZ UIF SJTJOH MJGFDZDMF EFàDJU PG UIF FMEFSMZ XIFUIFS JU JT UIFJS PXO PS UIBU PG UIF DVSSFOU XPSLGPSDFUBYQBZFST PS CPUI JT UIVT OPU FYQMJDJUMZ UBLFO JOUP BDDPVOU JO UIF QMBOOJOH BOE NBOBHFNFOU PG QFOTJPOT TBWJOHT FTQFDJBMMZ QVCMJD QFOTJPO SFTFSWFT PS UIF OFYU HFOFSBUJPO PG SFUJSFFT *U SFNBJOT UIBU UIJT MJBCJMJUZ NVTU CF àOBODFE 5ISFF TPVSDFT PG GVOET DBO CF FOWJTBHFE 5SBOTGFST B QSJWBUF USBOTGFST NPTUMZ XJUIJO GBNJMJFT GSPN XPSLFST UP EFQFO EFOUT C BOE QVCMJD USBOTGFST UISPVHI UBYBUJPO NPTUMZ PG UIF XPSLGPSDF %FCU NPTUMZ QVCMJD EFCU JF UBYBUJPO PG UIF OFYU HFOFSBUJPO PG XPSLFST "TTFU JODPNF QVCMJD PS QSJWBUF

NPTUMZ UISPVHI UIF BDDVNVMBUJPO BOE TVDDFTTGVM JOWFTUNFOU PG QSJWBUF TBWJOHT *O PUIFS XPSET NVDI SFMJFT PO UIF DVSSFOU XPSLGPSDF BOE JUT TBWJOHT BOE JOWFTUNFOU PQUJPOT BOE EFDJTJPOT *OEFFE HJWFO UIF MJNJUT PO UIF MFWFM PG USBOTGFST BOE JO PSEFS UP QSFTFSWF àTDBM TUBCJMJUZ BTTFU JODPNF JT BO FTTFOUJBM QBSU PG UIF TPMVUJPO /FYU JODSFBTJOH BTTFU JODPNF XIJDI VOEFS UIF /5" EFàOJUJPO JODMVEFT EJTTBWJOH JNQMJFT FJUIFS JODSFBTJOH BDDVNVMBUJPO PS JOWFTUNFOU JODPNF PS CPUI #VU BT XF IBWF BSHVFE BCPWF BDDVNVMBUJPO JT BMSFBEZ BU IJTUPSJD IJHIT JO UIF SFHJPO BOE JO UIF

IJTUPSZ PG UIF XPSME FDPOPNZ -JLFXJTF UIF MFWFM PG FGGFDUJWF QVCMJD JOEFCUFEOFTT JT BMSFBEZ IJHI BT $IJOBhT SFDFOU TPWFSFJHO SBUJOH EPXOHSBEF TVHHFTUT *U GPMMPXT UIBU UIF GVOEBNFOUBM JTTVF JT POF PG JOUFSNFEJBUJPO 'JOBMMZ JODSFBTJOH JOWFTUNFOU JODPNF UP NFFU DVSSFOU BOE GVUVSF DPOTVNQUJPO PCKFDUJWFT SBJTFT UXP NPSF DIBMMFOHFT JO UIF DBTF PG &BTU "TJB BO JOWFTUNFOU DIBMMFOHF BOE B SFHVMBUJPO DIBMMFOHF XIJDI XF EJTDVTT OFYU 4DJFOUJàD JOWFTUNFOU NBOBHFNFOU JT IBNQFSFE CZ TUSVDUVSBM àOBODJBM EJTUPSUJPOT 5IF NBDSPFDPOPNJD DPOUFYU JO XIJDI UIF JOWFTUNFOU PG QFOTJPO TBWJOHT NVTU UBLF QMBDF JT TQFDJàD UP UIF SFHJPO &BTU "TJBhT FDPOPNJFT IBWF HSPXO BDDPSEJOH UP B NPEFM UIBU IBT GBWPVSFE FYQPSU BOE JOWFTUNFOU UIBU IBT MFE UP XFMM EPDVNFOUFE BOE FOEVSJOH EJTUPSUJPOT PG FDPOPNJD BOE àOBODJBM TZTUFNT 8IJMF UIF TPDBMMFE &BTU "TJBO FDPOPNJD EFWFMPQNFOU NPEFM IBT CFFO FYUSFNFMZ TVDDFTTGVM BU EFMJWFSJOH GBTU HSPXUI BOE EFWFMPQNFOU JO UIF SFHJPO JO UIF MPOH SVO XIJDI JT UIF SFMFWBOU IPSJ[PO GPS QFOTJPO JOWFTUNFOU UIF EJTUPSUJPOT UIBU IBWF CFFO JOUSPEVDFE JO UIF FDPOPNZ DBO CFDPNF WFSZ EJGàDVMU UP SFWFSTF 5IFTF TUSVDUVSBM àOBODJBM EJTUPSUJPOT DBO UIFO NBLF UIF JOWFTUNFOU PG &BTU "TJBhT QFOTJPO TBWJOHT WFSZ DIBMMFOHJOH *U JT B XFMMEPDVNFOUFE GFBUVSF PG UIF TPDBMMFE z&BTU "TJBO NJSBDMFh UIBU HPWFSO NFOUT BMM PWFS UIF SFHJPO FOHBHF JO NPSF "O &%)&$3JTL *OTUJUVUF 1VCMJDBUJPO


.BZ


&YFDVUJWF 4VNNBSZ

PS MFTT CFOJHO zàOBODJBM SFQSFTTJPOh XIJDI NBOJGFTUT JUTFMG JO QBSUJDVMBS UISPVHI EVSBCMZ CFMPXFRVJMJCSJVN JOUFSFTU SBUFT FTQFDJBMMZ SFBM JOUFSFTU SBUFT 'JOBODJBM SFQSFTTJPO BDUT BT B GPSN PG UBY PO TBWFST BOE TVCTJEZ PG CPSSPXFST *U IBT GBS SFBDIJOH DPOTFRVFODFT XIJDI EJSFDUMZ BGGFDU UIF TBWJOH CFIBWJPVS PG JOEJWJEVBMT BOE UIF JOWFTUNFOU PG QFOTJPO BTTFUT *O UBOEFN XJUI EJSFDUFE DBQJUBM BMMPDBUJPO UISPVHI UIF CBOLJOH TZTUFN JO UIF DPOUFYU PG BO BHHSFTTJWF JOEVTUSJBM QPMJDZ àOBODJBM SFQSFTTJPO QPMJDZ IBT CFFO B TUBQMF PG UIF +BQBOFTF EFWFMPQNFOU NPEFM BOE IBT BMTP CFFO SFQMJDBUFE JO UIF SFTU PG UIF SFHJPO FTQFDJBMMZ JO ,PSFB BOE $IJOB 5IF àSTU DPOTFRVFODF PG àOBODJBM SFQSFTTJPO JT UP NBLF UIF SFUVSO PO DBTI BOE àYFE JODPNF TFDVSJUJFT WFSZ MPX BOE FWFO OFHBUJWF JO SFBM UFSNT 8IJMF UIJT MJHIUFOT UIF EFCU CVSEFO PG UIF TUBUFTQPOTPSFE TFDUPS JF àSNT UIBU IBWF QSJWJMFHFE BDDFTT UP DSFEJU BOE UIBU PG UIF QVCMJD TFDUPS JUTFMG JU BMTP GPSDFT IPVTFIPMET UP TBWF NPSF 5IJT DPVOUFSJOUVJUJWF SFTVMU àUT UIF TP DBMMFE hUBSHFU TBWJOH IZQPUIFTJTh CZ XIJDI IPVTFIPMET FOHBHF JO BO JOUVJUJWF GPSN PG BTTFUMJBCJMJUZ NBOBHFNFOU VOEFS UIJT IZQPUIFTJT IPVTFIPMET IBWF NPSF PS MFTT QSFDJTF FYQFOEJUVSF UBSHFUT JO NJOE VOJWFSTJUZ GFFT IPVTF PS DBS QVSDIBTF SBJOZ EBZ GVOE FUD BOE BDDVNVMBUF BDDPSEJOHMZ *U GPMMPXT UIBU UIF MPXFS UIF SFBM SFUVSO PO TBWJOHT UIF NPSF IPVTIPMET BDDVNVMBUF FWFO XIFO SFUVSOT BSF OFHBUJWF 5IJT CFIBWJPVS JT DPOàSNFE CZ FNQJSJDBM SFTFBSDI JO UIF SFHJPO

5IF TFDPOE JNQPSUBOU DPOTFRVFODF PG àOBODJBM SFQSFTTJPO JT UP DPOUSJCVUF UP UIF CVJMEVQ PG FYDFTT TBWJOHT JO UIF FDPOPNZ &YDFTT TBWJOHT JNQMZ B EZOBNJDBMMZ JOFGà DJFOU FDPOPNZ JF BO FDPOPNZ XIJDI GBJMT UP CBMBODF TIPSU BOE MPOHUFSN PCKFD UJWFT XIJDI IBT EJSFDU JNQMJDBUJPOT GPS BTTFU BMMPDBUJPO -JLF UIF IPVTFIPME TFDUPS &BTU "TJBhT HPWFSONFOUT BOE àSNT FTQFDJBMMZ TUBUF DPOUSPMMFE àSNT IBWF BDDVNVMBUFE WBTU TBWJOHT JO UIF DPOUFYU PG B DPOUJOVFE FGGPSU UP DPOUSPM UIF JOáBUJPOBSZ JNQBDU PG B TUSVD UVSBM DVSSFOU BDDPVOU TVSQMVT JUTFMG UIF DPOTFRVFODF PG B TUSVDUVSBM USBEF TVSQMVT .POFUBSZ BVUIPSJUJFT SPVUJOFMZ FOHBHF JO TUFSJMJTBUJPO QSPHSBNNFT CZ XIJDI UIFZ FYDMVEF OFX GPSFJHO FYDIBOHF GSPN DJSDV MBUJPO JO UIF EPNFTUJD FDPOPNZ UIVT CVJMEJOH MBSHF GPSFJHO FYDIBOHF SFTFSWFT BOE B NBUDIJOH DBQJUBM BDDPVOU EFàDJU

BOE DPOUSPMMJOH UIF JOá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àOBODJBM SFQSFTTJPO



.BZ


&YFDVUJWF 4VNNBSZ

5IF UIJSE DPOTFRVFODF PG àOBODJBM SFQSFTTJPO JO DPNCJOBUJPO XJUI FYDFTT TBWJOHT JT UIF DPTUMZ NJTBMMPDBUJPO PG MBSHF BNPVOUT PG DBQJUBM #BOLT QMBZ B QJWPUBM SPMF JO DBQJUBM BMMPDBUJPO JO &BTU "TJB BOE UIF DPNCJOBUJPO PG MBSHF DBQUJWF EFQPTJUT XJUI JOUFSWFOUJPOJTU DSFEJU BMMPDBUJPO QPMJDJFT CZ UIF DFOUSBM HPWFSONFOU DBO MFBE UP UIF JTTVBODF PG BO FYDFTTJWF BNPVOU PG MPBOT &YDFTTJWF PSJHJOBUJPO MFBET UP UIF àOBODJOH PG OVNFSPVT WBMVFEFTUSPZJOH QSPKFDUT BOE HFOFSBMMZ UP UIF PWFSMFWFSBHJOH PG MBSHF QBSUT PG UIF FDPOPNZ FH SFBM FTUBUF

XFMMEPDVNFOUFE FYDFTT DBQBDJUZ JO B OVNCFS PG JOEVTUSJBM TFDUPST FH TUFFM QSPEVDUJPO TIJQZBSET JOGSBTUSVDUVSF FUD BOE FWFOUVBMMZ B CVJMEVQ PG OPO QFSGPSNJOH MPBOT XIJDI DBO UISFBUFO UIF WJBCJMJUZ PG UIF FOUJSF àOBODJBM TFDUPS FH +BQBO JO ,PSFB JO $IJOB JO 5BJXBO JO FUD

5IJT FYDFTTJWF MFWFSBHJOH PG UIF FDPOPNZ USBOTMBUFT JOUP FYDFTTJWF WPMBUJMJUZ GPS JOWFTU NFOUT JO SJTLZ BTTFUT 5IF TUSVDUVSBMMZ IJHIFS MFWFMT PG WPMBUJMJUZ FYQFSJFODFE JO "TJBO TUPDL NBSLFUT BSF OPX XFMMEPDVNFOUFE JO UIF MJUFSBUVSF -JLFXJTF BTTFU QSJDF CVCCMFT FTQFDJBMMZ JO UIF SFBM FTUBUF TFDUPS IBWF CFFO GSFRVFOUMZ FYQFSJFODFE JO UIF SFHJPO BOE BSF XFMMEPDVNFOUFE JO BDBEFNJD SFTFBSDI +BQBOhT FYQFSJFODF JT BHBJO B DBVUJPOBSZ UBMF GPS UIF SFTU PG &BTU "TJB 5IF DPNCJOFE SFTVMU PG B TUPDL NBSLFU DSBTI B SFBM FTUBUF CVCCMF BOE UIF FOTVJOH CBOLJOH DSJTJT IBWF MFE UP B zCBMBODF TIFFU SFDFTTJPOh ,PP UIBU IBT HSFBUMZ MJNJUFE UIF QPTTJCJMJUZ UP BDDFTT

UIF FRVJUZ SJTL QSFNJB GPS EPNFTUJD JOWFTUPST PWFS UIF QBTU UXP EFDBEFT BOE B zMJRVJEJUZ USBQh DPOEFNOJOH NPOFUBSZ QPMJDZ UP LFFQ JOUFSFTU SBUFT OFBS [FSP 5IVT UIF TPDBMMFE &BTU "TJBO FDPOPNJD EFWFMPQNFOU NPEFM DBO DSFBUF TQFDJàD DIBMMFOHFT GPS JOWFTUJOH MPOHUFSN QFOTJPO BTTFUT OBNFMZ WFSZ MPX TPNFUJNFT OFHBUJWF SFUVSOT PO DBTI BOE MPX SJTL BTTFUT BOE WFSZ IJHI QFSIBQT FYDFTTJWF WPMBUJMJUZ PG SJTLZ BTTFUT 8IJMF SJTL NJTQSJDJOH JO CPUI àYFE JODPNF BOE FRVJUZ TQIFSFT IBNQFST FGàDJFOU BTTFU BMMPDBUJPO FGGPSUT UIF QPUFOUJBM BCTFODF PG TUSBJHIUGPSXBSE NFBOSFWFSTJPO PG UIF FRVJUZ SJTL QSFNJVN DBO CF B NBKPS JNQFE JNFOU UP TUSBUFHJFT CBTFE PO FYQMPJUJOH TVDI QIFOPNFOB 3JTL DPOUSPM DBO BMTP CFDPNF MJNJUFE XIFO UIF SJTLT UP JOTVSF PS IFEHF BSF OPU USBOTJFOU CVU UIF QSPEVDU PG TUSVDUVSBM NBSLFU EJTUPS UJPOT 5IF EJGàDVMUZ XJUI UIJT FDPOPNJD EFWFM PQNFOU NPEFM JT UIBU JU CFDPNFT WFSZ IBSE UP SFWFSTF 5IF TVCTJEJFT UP àSNTh BOE UIF HPWFSONFOUhT DPTUT PG DBQJUBM DBO CFDPNF WFSZ BEEJDUJWF #FDBVTF EFCU JT DIFBQ EFCU JT FWFSZXIFSF BOE UIF TMJHIUFTU JODSFBTF JO JOUFSFTU SBUFT B NPWF UPXBSET FOEJOH àOBODJBM SFQSFTTJPO DPVME DSFBUF TJHOJG JDBOU EBNBHF JO QBSUJDVMBS UP TVCTPWFSFJHO QVCMJD TFDUPS CBMBODF TIFFUT *O FGGFDU BOZ BUUFNQU UP EFTJHO BEFRVBUF QFOTJPO JOWFTUNFOU TPMVUJPOT JO UIJT DPOUFYU XJMM SFRVJSF BEESFTTJOH UIFTF QSPCMFNT JO BO "O &%)&$3JTL *OTUJUVUF 1VCMJDBUJPO


.BZ


&YFDVUJWF 4VNNBSZ

PQFO BOE TZTUFNBUJD XBZ BOE NBZ FWFO DPOUSJCVUF UP UIF NBDSPQSVEFOUJBM QPMJDZ EFCBUF 3FHVMBUJPO NVTU DIBOOFM &BTU "TJB TBWJOHT UPXBSET BEFRVBUF JOWFTUNFOU TPMVUJPOT 5IF SFHVMBUJPO DIBMMFOHF JT UP DSFBUF UIF DPOEJUJPOT GPS B CFUUFS BDDVNVMBUJPO BOE NBOBHFNFOU PG &BTU "TJBhT TBWJOHT JO UIF SFHJPO UP NFFU UIF BHHSFHBUF BOE JOEJWJEVBM MJBCJMJUJFT ESJWFO CZ QPQVMBUJPO BHFJOH XIJMF NBJOUBJOJOH àTDBM TUBCJMJUZ 'FX PQUJPOT DVSSFOUMZ FYJTU GPS JOEJWJEVBMT UP EP TP 5IJT FYQMBJOT UIF MBDL PG JOUFSFTU JO QFOTJPO TDIFNFT XIJDI SFNBJO GPS UIF NPTU QBSU B GPSN PG EFGFSSFE DPNQFO TBUJPO UIBU EPFT OPU DSFBUF B QFOTJPO JF SFUJSFNFOU JODPNF

CVU JOTUFBE BMNPTU BMXBZT QBZT B MVNQ TVN -JLFXJTF UIF MBSHFTU QPPM PG BTTFUT QFOTJPO SFTFSWFT BOE TPDJBM TFDVSJUZ SFTFSWFT XIFO UIFZ FYJTU FH JO $IJOB BSF OPU NBOBHFE UP BEESFTT UIF HSPXJOH MJGFDZDMF EFàDJUT UIBU DIBSBDUFSJTF BO BHFJOH TPDJFUZ EFTQJUF UIF GBDUT UIBU UIFTF FWPMVUJPOT BSF JO HSFBU QBSU QSFEJDUBCMF *O UIJT QFSTQFDUJWF XF FYBNJOF QPUFOUJBM JNQSPWFNFOUT UP QFOTJPO SFTFSWF GVOET DPSQPSBUF BOE PDDVQBUJPOBM EFàOFECFOFàU QMBOT BOE EFàOFEDPOUSJCVUJPO QMBOT

3FTFSWF GVOET BSF OPU TPMFMZ VTFE UP UBDLMF UIF DIBMMFOHFT BXBJUJOH QVCMJD QFOTJPOT *O PVS SFWJFX PG UIF SPMF PG QFOTJPO SFTFSWF GVOET JO &BTU "TJB XF àOE UIBU XIJMF UIFZ BSF CZ GBS UIF NPTU TJHOJàDBOU FMFNFOU PG UIF GVOEFE QFOTJPO TFDUPS JO UIF SFHJPO UIFZ TVGGFS GSPN JNQPSUBOU áBXT /FWFSUIFMFTT UIF FYJTUFODF PG UIFTF MBSHF SFTFSWFT SFQSFTFOUT B VOJRVF PQQPSUVOJUZ GPS &BTU "TJBhT HPWFSONFOU UP BEESFTT UIF VOTVTUBJOBCJMJUZ PG QVCMJD QBZBTZPVHP 1":( QFOTJPO TDIFNFT SFTVMUJOH GSPN QPQVMBUJPO BHFJOH 8F BSHVF UIBU TFJ[JOH UIJT PQQPSUVOJUZ XJMM SFRVJSF NBLJOH GVOEBNFOUBM DIBOHFT JO UIF XBZ SFTFSWF GVOET IBWF CFFO DPOUSPMMFE BOE NBOBHFE PWFS UIF QBTU EFDBEFT BOE BEPQUJOH JOWFTUNFOU NBOBHFNFOU QSPDFTTFT BOE UPPMT UIBU XJMM BMMPX QFOTJPO SFTFSWFT UP BDIJFWF XIBU TIPVME CF UIFJS TPMF PCKFDUJWF UP TVQQPSU UIF QVCMJD QFOTJPO TZTUFN CZ NJOJNJTJOH UIF CVSEFO PG QFOTJPO MJBCJMJUJFT PO GVUVSF HFOFSBUJPOT XIJMF FOTVSJOH BEFRVBUF QVCMJD QFOTJPO QSPWJTJPO 1FOTJPO SFTFSWFT IBWF CFFO B TJEFQSPEVDU PG UIF SBQJE EFNPHSBQIJD USBOTJUJPO UIBU IBT PDDVSSFE JO &BTU "TJB "O JOJUJBM ESPQ JO JOGBOU NPSUBMJUZ JO UIF T MFE UP B MBSHFS DPIPSU PG OFXCPSOT XIP FOUFSFE UIF XPSLGPSDF BOE TUBSUFE DPOUSJCVUJOH UP 1":( QFOTJPOT GSPN UIF T POXBSET BU B UJNF XIFO UIF QPQVMBUJPO PG SFUJSFFT BOE PMEFS XPSLFST BCPVU UP SFUJSF XBT TUJMM SFMBUJWFMZ TNBMM



.BZ


&YFDVUJWF 4VNNBSZ

5IJT DSFBUFT TVSQMVT DPOUSJCVUJPOT XIJDI BSF LFQU JO B EFEJDBUFE SFTFSWF GVOE XJUI UIF LOPXMFEHF UIBU EFNPHSBQIJD USBOTJ UJPOT FWFOUVBMMZ MFBE UP QPQVMBUJPO BHFJOH BOE UIVT UIBU UIF OVNCFS PG XPSLFST DPOUSJCVUJOH UP 1":( TZTUFNT XJMM EFDSFBTF BT UIF OVNCFS PG SFUJSFFT JODSFBTFT "U UIBU TUBHF UIF QFOTJPO SFTFSWF JT FYQFDUFE UP TVQQPSU UIF QVCMJD QFOTJPO TZTUFN CZ NBLJOH QBSU PG UIF QFOTJPO QBZNFOUT EVF )PXFWFS XIJMF QFOTJPO SFTFSWFT XFSF DSFBUFE UP BEESFTT UIF JTTVF PG QPQVMBUJPO BHFJOH BOE UIF TVTUBJOBCJMJUZ PG 1":( TZTUFNT UIF NBOBHFNFOU PG UIF SFTFSWFT IBT SFNBJOFE NPTUMZ VOSFMBUFE UP UIBU PCKFDUJWF .PSFPWFS UIF EPNJOBOU QBSBEJHN PG QFOTJPO SFTFSWF NBOBHFNFOU DPOTJTUT PG UIF QBTTJWF BEBQUBUJPO PG UIF QFOTJPO TZTUFN UP EFNPHSBQIJD SFBMJUJFT BT PQQPTFE UP UIF BDUJWF NBOBHFNFOU PG B EZOBNJD MJBCJMJUZ 5IVT UIF HPWFSONFOUT PG &BTU "TJB FYQFDU UP IBWF TQFOU BMNPTU BMM PG UIF QFOTJPO SFTFSWFT CZ UIF NJEEMF PG UIJT DFOUVSZ XIJMF MJUUMF UP OP FGGPSU JT QVU JOUP JODSFBTJOH JOWFTUNFOU JODPNF GSPN UIFTF MBSHF QPPMT PG BTTFUT *OTUFBE NPTU PG UIF QBSBNFUFST PG UIF 1":( QFOTJPO FRVBUJPO BSF CFJOH SFTIVGáFE SFHVMBSMZ BOE TFFNJOHMZ JOEFQFOEFOUMZ QBSBNFUSJD SFGPSNT MFBE UP DIBOHFT JO DPOUSJCVUJPO SBUFT CFOFàU MFWFMT BDDSVBM GPSNVMBT PS EJTDPVOU SBUFT XIJMF BDUVBSJBM BOE PUIFS BTTVNQUJPOT TVDI BT MJGF FYQFDUBODZ BOE FDPOPNJD HSPXUI GPSFDBTUT TQBOOJOH UP ZFBST BSF BEKVTUFE BGUFS FBDI SFWJFX .PSFPWFS UIFTF SFGPSNT BSF PGUFO QJFDFNFBM BOE DPOTJEFSBCMZ EFMBZFE

5IFZ BMTP UFOE UP GBJM UP BEESFTT BOZ BDDVNVMBUFE TIPSUGBMM CFGPSF UIFZ DPNF JOUP GPSDF *U GPMMPXT UIBU BEFRVBUF MPOHUFSN JOWFTUNFOU PCKFDUJWFT JO MJOF XJUI B DMFBS FTUJNBUJPO PG MJBCJMJUJFT BSF OPU TFU OPS BSF TIPSUUFSN DPOTUSBJOUT QSPQFSMZ EFàOFE *O &BTU "TJB QFOTJPO SFTFSWFT FYJTU JO UIF DPOUFYU PG QSJWBUF TFDUPS XPSLFST QBZBT ZPVHP QFOTJPOT JO +BQBO ,PSFB .BJOMBOE $IJOB BOE 5BJXBO 4QFDJàD QFOTJPO SFTFSWFT BMTP FYJTU GPS QVCMJD XPSLFST JO +BQBO ,PSFB BOE 5BJXBO )POH ,POH IBT OP 1":( QFOTJPO TZTUFN BOE UIFSFGPSF OP EFEJDBUFE QFOTJPO SFTFSWF .BJOMBOE $IJOB IBT BMTP DSFBUFE B TQFDJàD SFTFSWF GVOE EFEJDBUFE UP TVQQPSUJOH UIF QFOTJPO TZTUFN CVU JU JT GVOEFE EJSFDUMZ CZ UIF TUBUF JOTUFBE PG TVSQMVT DPOUSJCVUJPOT *O +BQBO BOE 5BJXBO QFOTJPO SFTFSWFT SFQSFTFOU PG BMM GVOEFE QFOTJPO BTTFUT *O $IJOB SFTFSWFT BSF FRVJWBMFOU UP PG BMM QFOTJPO BTTFUT BOE JO ,PSFB UIF SFTFSWF TUBOET BU PG QFOTJPO BTTFUT 5IFTF MBSHF OVNCFST IJEF UXP JNQPSUBOU TUZMJTFE GBDUT BCPVU GVOEFE QFOTJPOT JO &BTU "TJB 'JSTU QFOTJPO SFTFSWFT BSF MBSHF CFDBVTF DPSQPSBUF BOE PDDVQBUJPOBM QFOTJPOT BSF TNBMM BT XF EJTDVTT JO TFDUJPOT BOE 4FDPOE &BTU "TJBhT QFOTJPO SFTFSWFT NBZ CF MBSHF FWFO CZ JOUFSOBUJPOBM TUBOEBSET CVU UIFZ BSF OPU BT MBSHF BT UIFZ TIPVME CF HJWFO UIFJS MFWFMT PG DPOUSJCVUJPO BOE QSPNJTFE CFOFàUT BT XFMM BT UIF SBUF PG EFMJORVFODZ JO DFSUBJO DPVOUSJFT .PSFPWFS JO DPVOUSJFT "O &%)&$3JTL *OTUJUVUF 1VCMJDBUJPO


.BZ


&YFDVUJWF 4VNNBSZ

UIBU JOJUJBMMZ EFWFMPQFE QSJNBSJMZ UIBOLT UP BO FYQPSUESJWFO NPEFM XBHF DPNQFUJ UJWFOFTT SFNBJOT B LFZ FMFNFOU PG FDPOPNJD TVDDFTT BOE UIJT DBO CF JO DPOUSBEJDUJPO XJUI UIF PCKFDUJWF PG DPMMFDUJOH QFOTJPO DPOUSJCV UJPOT "T B DPOTFRVFODF QFOTJPO SFTFSWFT BMSFBEZ FYIJCJU TJHOJàDBOU TIPSUGBMMT BOE QBSU PG UIF CFOFàUT QBJE IBWF UP CF TVCTJEJTFE CZ DFOUSBM HPWFSONFOUT 5IVT XIJMF SFTFSWFT DPOUJOVF UP HSPX JO $IJOB ,PSFB BOE 5BJXBO UIFZ TIPVME CF HSPXJOH GBTUFS JG GVUVSF QFOTJPO QBZNFOUT BSF HPJOH UP CF NFU *O UIFTF UISFF DPVOUSJFT BMM QFOTJPO SFTFSWF GVOET BSF LOPXO UP FYIJCJU TJHOJàDBOU VOGVOEFE MJBCJMJUJFT *O +BQBO SFTFSWFT IBWF CFHVO UP TISJOL TJODF "OE XIJMF UIF MJOL CFUXFFO EFNPHSBQIJDT BOE SFTFSWFT TVHHFTUT UIBU UIF MBUUFS TIPVME FWFOUVBMMZ QFBL JU JT TUSJLJOH UP PCTFSWF UIBU UIF +BQBOFTF SFTFSWF GVOE BT B DPOTFRVFODF PG JUT JOWFTUNFOU QPMJDZ IBT CBSFMZ HFOFSBUFE BOZ JOWFTUNFOU JODPNF PWFS UIF QBTU EFDBEF

8F OPUF UIBU PUIFS "TJBO DPVOUSJFT TVDI BT 4JOHBQPSF XIJDI JT PVU PG UIF TDPQF PG UIJT TUVEZ IBWF NBEF TJHOJàDBOU QSPHSFTT UPXBSET UIF EFWFMPQNFOU PG BOOVJUJTBUJPO TFF GPS FYBNQMF 'POH FU BM

$MFBSMZ UIF BTTFU NBOBHFNFOU PG QFOTJPO SFTFSWFT DPVME CF JNQSPWFE UP IFMQ NFFU UIF MJBCJMJUJFT PG QBZBTZPVHP TZTUFNT 1BZ BTZPVHP QFOTJPOT JO &BTU "TJB BSF UIF POMZ SFMJBCMF TPVSDF PG MJGFMPOH SFUJSFNFOU JODPNF TJODF BT XF EJTDVTT JO TFDUJPOT BOE QSJWBUF QFOTJPO TDIFNFT PGGFS MJUUMF UP OP BOOVJUJTBUJPO .PSFPWFS HJWFO UIF MJNJUFE EFWFMPQNFOU PG QSJWBUF QFOTJPOT 1":( TZTUFNT BSF PGUFO UIF TPMF TPVSDF PG SFUJSFNFOU JODPNF GPS B XIPMF TUSBUVN PG UIF QPQVMBUJPO

5IF FSPTJPO PG QBZBTZPVHP CFOFàUT JO UIF DPOUFYU PG QBSBNFUSJD SFGPSNT DBOOPU DPOUJOVF JOEFàOJUFMZ CFGPSF TFSJPVT TPDJBM DPOTFRVFODFT BQQFBS JODMVEJOH JODSFBTJOH PMEBHF QPWFSUZ CVU BMTP JODSFBTJOH DPOUSJ CVUJPO EFMJORVFODZ -JLFXJTF JG UIF DPTU PG PME BHF MJGFDZDMF EFàDJUT JT BMTP CPVOE UP JODSFBTF GBTUFS UIBO UIF DBQBDJUZ UP DPOUSJCVUF PG UIF XPSLGPSDF UIF DPOUJOVFE DFOUSBM HPWFSONFOU TVQQPSU PG QVCMJD QFOTJPO BOE IFBMUIDBSF TZTUFNT DBOOPU CF FYUFOEFE JOEFàOJUFMZ XJUIPVU JNQBDUJOH àTDBM TUBCJMJUZ *OTUFBE BEFRVBUF SJTL NBOBHFNFOU DBO BMMPX SFTFSWF GVOET UP JOWFTU UP NBYJNJTF UIF QSPCBCJMJUZ UP NFFU UIFJS MJBCJMJUJFT MJBCJMJUZESJWFO JOWFTUJOH XIJMF DPOUSPMMJOH SJTL SJTLDPOUSPMMFE JOWFTUJOH BOE UBLJOH UIFJS TQFDJàD JOWFTUNFOU IPSJ[PO JOUP BDDPVOU MJGFDZDMF JOWFTUJOH 0VS SFWJFX BMTP IJHIMJHIUT B OVNCFS PG TUZMJTFE GBDUT BCPVU &BTU "TJBhT QFOTJPO SFTFSWF GVOET -POHUFSN PCKFDUJWF TFUUJOH BOE TIPSU UFSN DPOTUSBJOUT !

!

1FOTJPO SFTFSWFT BSF PGUFO HJWFO NVMUJQMF PCKFDUJWFT TPNF PG XIJDI BSF VOSFMBUFE UP UIF TVQQPSUJOH UIF QVCMJD QFOTJPO TZTUFN BOE NBZ FWFO CF JO DPOUSBEJDUJPO XJUI UIBU HPBM &YBNQMFT JODMVEF EJSFDU MFOEJOH UP QSPUFDUFE JOEVTUSJBM TFDUPST JOUFSWFO UJPOT JO TUPDL NBSLFUT BOE UIF BCTPSQUJPO PG MBSHF WPMVNFT PG QVCMJD EFCU *O FGGFDU QFOTJPO SFTFSWF NBOBHFNFOU JT TFMEPN JOEFQFOEFOU GSPN QPMJUJDBM



.BZ


&YFDVUJWF 4VNNBSZ

!

!

!

!

JOáVFODF %JSFDU DFOUSBM HPWFSONFOU JOWPMWFNFOU JT UIF OPSN 1FOTJPO SFTFSWFT BSF FYQPTFE UP TJHOJG JDBOU MPOHFWJUZ BOE JOáBUJPO SJTL CVU UIFJS JOWFTUNFOU PCKFDUJWFT BSF OPU OFDFT TBSJMZ TFU TP UIBU UIFZ NBOBHF UIFTF SJTLT FYQMJDJUMZ *O HFOFSBM SFTFSWF GVOET IBWF MPPTFMZ EFàOFE PCKFDUJWFT BOE OP QSFDJTF BTTFTTNFOU PG UIFJS MJBCJMJUJFT -POHUFSN PCKFDUJWFT BSF FBTJMZ JHOPSFE BOE NVDI NPSF BUUFOUJPO JT HJWFO UP TIPSUUFSN PCKFDUJWFT 8JUI UPP NVDI GPDVT PO UIF TIPSUUFSN IJHI MPTT BWFSTJPO EPNJOBUFT JOWFTUNFOU EFDJTJPOT BOE DBO MFBE UP IJHIMZ TVCPQUJNBM SFTVMUT &BTU "TJBhT SFTFSWF GVOET BSF BMTP GPVOE UP IBWF SBUIFS JMMEFàOFE TIPSUUFSN DPOTUSBJOUT JG BOZ PGàDJBM DPOTUSBJOUT BU BMM "MPOH XJUI UIF BCTFODF PG DMFBSMZ EFàOFE MPOH UFSN PCKFDUJWFT UIJT TUBUF PG BGGBJST QSFDMVEFT UIF EFàOJUJPO BOE EFWFMPQNFOU PG BEFRVBUF JOWFTUNFOU TPMVUJPOT GPS SFTFSWF GVOET *OEFFE UIF TIPSUUFSNJTN BOE MPTT BWFSTJPO NFOUJPOFE BCPWF QMBZ UIF SPMF PG EF GBDUP TIPSUUFSN DPOTUSBJOUT 'VOEJOH SVMFT JO QBSUJDVMBS BSF FYQSFTTFE JO UFSNT PG NVMUJQMFT PG GVUVSF PCMJHB UJPOT XIJDI BSF EFàOFE TUBUJDBMMZ BOE UIVT MFBWF UIF EZOBNJD EJNFOTJPO PG UIF GVOEhT MJBCJMJUZ PVU PG UIF FRVBUJPO

*OWFTUNFOU NBOBHFNFOU !

5IF MBDL PG JOEFQFOEFODF IJHIMJHIUFE BCPWF MFBET UP BO FRVBMMZ QPMJUJDJTFE JOWFTUNFOU HPWFSOBODF *OWFTUNFOU DPNNJUUFFT BOE QPMJDJFT XIFO UIFZ FYJTU BSF NPSF BEWJTPSZ JO OBUVSF BOE NVDI

!

!

!

!

!

EFDJTJPO NBLJOH QPXFS SFNBJOT JO UIF IBOET PG QPMJUJDBM BQQPJOUFFT "TTFU BMMPDBUJPO EFDJTJPOT JO &BTU "TJBhT SFTFSWF QFOTJPO GVOET SFNBJO CJBTFE UPXBSET MPDBM JOWFTUNFOUT BOE àYFE JODPNF )PXFWFS QSBDUJDFT IBWF BMTP FWPMWFE JO SFDFOU ZFBST *O QBSUJDVMBS 5BJXBOFTF BOE $IJOFTF SFTFSWFT IBWF TFFNJOHMZ MFBSOFE GSPN UIF MJNJUBUJPOT PG UIF +BQBOFTF FYQFSJFODF 5IVT UIFSF JT B USFOE UPXBSET JODSFBTJOH JOUFSOBUJPOBM EJWFSTJàDBUJPO +BQBOFTF BOE ,PSFBO GVOET IBWF B àYFE JODPNF CJBT *O DPOUSBTU 5BJXBOFTF BOE UIF áBHTIJQ .BJOMBOE $IJOFTF SFTFSWF GVOET /44' IBWF NPWFE GSPN TJNJMBSMZ àYFE JODPNF GPDVTFE BMMPDBUJPOT UP NPSF CBMBODFE DIPJDFT )PXFWFS FBDI BUUFNQU UP JNQSPWF EJWFSTJàDBUJPO JT EPOF PO B QJFDFNFBM CBTJT BOE SFMJFT PO QPUFOUJBMMZ JOBEFRVBUF BQQSPBDIFT "MUFSOBUJWF JOWFTUNFOUT IBWF BMTP CFDPNF QBSU PG UIF BTTFU DMBTTFT VTFE CZ UIF ,PSFBhT BOE $IJOBhT SFTFSWF GVOET 5IF CBMBODF CFUXFFO BDUJWF BOE QBTTJWF NBOEBUFT JT BMTP FWPMWJOH XJUI B IJHIFS QSPQPSUJPO PG BTTFUT EFEJDBUFE UP BDUJWF NBOBHFST 5IF UFOEFODZ UP NBOBHF NPTU BTTFUT JOUFSOBMMZ IBT BMTP TIJGUFE XJUI UIF GPSBZT JOUP OFX BTTFU DMBTTFT CZ ,PSFBO PS $IJOFTF SFTFSWF GVOET

*OWFTUNFOU NBOBHFNFOU BQQSPBDIFT JO QFOTJPO SFTFSWF GVOET IBWF VOEFOJBCMZ FWPMWFE BOE JNQSPWFE PWFS UIF QBTU EFDBEFT )PXFWFS UIF NBOBHFNFOU PG UIF SFTFSWFT SFNBJOT UPP EFQFOEFOU PO UIF DPOEJUJPOT PG UIF EPNFTUJD FDPOPNZ BOE DPOUJOVFT UP CF FYFDVUFE XJUIPVU USZJOH UP



.BZ


&YFDVUJWF 4VNNBSZ

JNQSPWF UIF BCJMJUZ PG UIF SFTFSWF GVOE UP TVQQPSU UIF QVCMJD QFOTJPO TZTUFN 5IVT JNQSPWFNFOUT BSF QPTTJCMF PO TFWFSBM GSPOUT GSPN CFUUFS HPWFSOBODF UP UIF JNQMFNFOUBUJPO PG QSPQFS SJTL NBOBHFNFOU UFDIOJRVFT

!

!

(PWFSOBODF JNQSPWFNFOUT !

!

!

!

1FOTJPO SFTFSWFT OFFE B DMFBS NJTTJPO BOE XPVME CFOFàU GSPN GVMM JOEFQFO EFODF GSPN HPWFSONFOU JOWPMWFNFOU *O QBSUJDVMBS UIFZ TIPVME OPU CF VTFE UP BCTPSC FYDFTTJWF BNPVOUT PG QVCMJD TFDUPS EFCU 5IF BQQPJOUNFOU QSPDFTT GPS UIF HPWFSOJOH CPBSE BOE UIF SFTQPOTJCJMJUJFT PG NFNCFST DPVME CF DMFBSMZ EFàOFE BOE GPDVT PO FYQFSUJTF BOE JOEFQFOEFODF 3JOHGFODJOH PG SFTFSWF GVOE BTTFUT XPVME FOTVSF UIBU UIJT DBQJUBM XJMM POMZ CF VTFE GPS UIF QBZNFOU PG QFOTJPOT 3FQPSUJOH TIPVME CF JNQSPWFE BOE QFSJPEJD JOUFSOBM BOE FYUFSOBM BVEJUT TIPVME CF QFSGPSNFE UP FOTVSF UIBU CPUI UIF HPWFSOBODF BOE UIF JOWFTUNFOU QSPDFTTFT BSF BEFRVBUF BOE GPMMPX UIF NBOEBUF

3JTL NBOBHFNFOU JNQSPWFNFOUT !

/FYU SFTFSWF GVOET TIPVME BDLOPXMFEHF BOE DMBSJGZ UIF MJBCJMJUZ QSPDFTT UP XIJDI UIFZ BSF FYQPTFE BOE QSPQPTF XFMM EPDVNFOUFE MPOHUFSN JOWFTUNFOU PCKFDUJWFT 5IFJS SFHVMBUPS DPVME JO UVSO DMBSJGZ BEFRVBUF BOE USBOTQBSFOU TIPSUUFSN DPOTUSBJOUT

!

!

3FTFSWF GVOET OFFE UP EFWFMPQ QSPQFS BTTFUMJBCJMJUZ NBOBHFNFOU "-.

BOE MJBCJMJUZESJWFO JOWFTUNFOU -%*

TUSBUFHJFT UP CF JO B QPTJUJPO UP NFFU UIFJS MPOHUFSN PCKFDUJWFT XIJMF SFTQFDUJOH UIFTF TIPSUUFSN DPOTUSBJOUT "DDFQUBCMF SJTL MFWFMT BMTP OFFE UP CF DMFBSMZ EFàOFE JO PSEFS UP BMMPX UIF JNQMFNFOUBUJPO PG SJTLDPOUSPMMFE TUSBUFHJFT " DMFBS BOE GBUIPNBCMF JOWFTUNFOU IPSJ[PO JT OFDFTTBSZ " POF IVOESFE ZFBS IPSJ[PO GPS FYBNQMF BT JO UIF DBTF PG +BQBOhT SFTFSWF GVOE MFBWFT UPP NVDI VODFSUBJOUZ VONBOBHFE UP HVBSBOUFF UJNF DPOTJTUFODZ "O JNQPSUBOU QBSU PG UIFTF SFTFSWF GVOETh PCKFDUJWFT TIPVME CF UP JNQSPWF BTTFU JODPNF JO PSEFS UP NJOJNJTF UIF JOUFSHFO FSBUJPOBM CVSEFO DSFBUFE CZ QPQVMBUJPO BHFJOH XIJMF QSPWJEJOH BEFRVBUF QFOTJPO JODPNF GPS SFUJSFFT

0UIFS DPVOUSJFT UIBU GBDFE TJNJMBS JTTVFT IBWF BEESFTTFE UIF TJUVBUJPO CZ TQMJUUJOH PGG SFTFSWF GVOET DSFBUJOH B GVMMZEFEJDBUFE SFTFSWF GVOE UP TVQQPSU UIF QVCMJD QFOTJPO TZTUFN BOE PUIFS EFEJDBUFE GVOET UIBU TFSWF PUIFS PCKFDUJWFT FH FDPOPNJD TUBCJM JTBUJPO PS EFWFMPQNFOU GVOET GPS TPDJP FDPOPNJD QSPKFDUT TVDI BT JOGSBTUSVDUVSF /FYU XF BSHVF UIBU TJNJMBS TPMVUJPOT BSF OFFEFE GPS QSJWBUF QFOTJPO TDIFNFT )PXFWFS UIF JNQPSUBODF PG UIFTF JEFBT XJUI SFHBSE UP QFOTJPO SFTFSWFT TJNQMZ TQSJOHT GSPN UIFJS TJ[F BOE SPMF JO B SFHJPO XIFSF NPTU TBWJOHT BSF TUJMM OPU JOWFTUFE JO QFOTJPO QMBOT BOE BT UIVT MFTT MJLFMZ UP



.BZ


&YFDVUJWF 4VNNBSZ

QSPWJEF BEFRVBUF SFUJSFNFOU JODPNF UP UIF OFYU HFOFSBUJPO PG SFUJSFFT

$PSQPSBUF EFàOFECFOFàU QMBOT SBSFMZ QSPWJEF QPTUSFUJSFNFOU JODPNF *O &BTU "TJB UIFSF JT B TUSPOH MJOL CFUXFFO UIF USBEJUJPOBM SFUJSFNFOU BMMPXBODF TZTUFN XIJDI IBT CFFO QSFWBMFOU JO DPSQPSBUF DVMUVSF GPS EFDBEFT BOE UIF FYJTUFODF BOE DIBSBDUFSJTUJDT PG DPSQPSBUF PS PDDVQBUJPOBM EFàOFECFOFàU QFOTJPO GVOET 1SJWBUF EFàOFECFOFàU %# QMBOT IBWF FYJTUFE JO UIF SFHJPO TJODF UIF T JO UIF DBTF PG +BQBO PS IBWF CFFO JOUSP EVDFE BT MBUF BT JO UIF DBTF PG ,PSFB )PXFWFS FWFO XIFO %# QMBOT IBWF FYJTUFE GPS EFDBEFT BOE DPOUSBSZ UP PUIFS KVSJTEJD UJPOT FH UIF 64

UIFZ IBWF OPU CFDPNF B EPNJOBOU QBSU PG UIF QFOTJPO TZTUFN 5IFZ BMTP HFOFSBMMZ SFGSBJO GSPN QSPWJEJOH BOZ QFOTJPO JODPNF UP SFUJSFFT CVU JOTUFBE QBZ MVNQ TVNT FJUIFS CFDBVTF UIFZ BSF UIF QSFGFSSFE DIPJDF PS UIF POMZ PQUJPO BWBJMBCMF 5IVT UIF CFOFàUT QBJE CZ QSJWBUF %# QMBOT JO &BTU "TJB BSF POMZ zEFàOFEh PS HVBSBOUFFE JOTPGBS BT UIFZ SFQSFTFOU B DFSUBJO NVMUJQMF PG QBTU XBHFT BDDPSEJOH UP UIF SFMFWBOU GPSNVMB BWBJMBCMF XIFO QMBO NFNCFST SFUJSF PS MFBWF UIFJS QPTJUJPO 1PTUSFUJSFNFOU TPMVUJPOT JODMVEJOH UIF NBOBHFNFOU PG MPOHFWJUZ BOE JOáBUJPO SJTLT SFNBJO CFZPOE UIF TDPQF PG XIBU UIFTF QMBOT IBWF CFFO PGGFSJOH TP GBS XJUI B GFX FYDFQUJPOT

"T B GPSN PG EFGFSSFE DPNQFOTBUJPO &BTU "TJBhT QSJWBUF %# QMBOT IBWF TFFO UIFJS BTTFUT HSPX JOJUJBMMZ CFDBVTF UIFZ BSF UZQJDBMMZ QSFGFSSFE CZ UIF MBSHF DPOHMPNFSBUFT UIBU NBLF VQ UIF DPSF PG &BTU "TJB JOEVTUSJBM GBCSJD )PXFWFS QSJWBUF %# BTTFU HSPXUI UZQJDBMMZ UBJMFE PGG PODF MBSHF FNQMPZFST IBE BEPQUFE UIFN VOMFTT UIFZ BSF NBEF NBOEBUPSZ %# QMBOT BMTP TUPQQFE HSPXJOH CFDBVTF OFX MFHJTMBUJPO XBT JOUSPEVDFE UP QSPNPUF EFàOFEDPOUSJCVUJPO %$ QMBOT 5IVT %# BTTFUT IBWF OPU HSPXO GPS NBOZ ZFBST JO +BQBO CVU IBWF POMZ CFFO USBOT GFSSFE GSPN POF TDIFNF UP UIF OFYU BT SFGPSNT BJNFE BU JNQSPWJOH UIF HPWFSOBODF QFSGPSNBODF CVU BMTP UIF HSPXUI PG UIF TFDUPS TUJMM DPOUJOVF UP VOGPME 5IFZ SFNBJO WPMVOUBSZ TDIFNFT POMZ *O )POH ,POH XIFSF %# QMBOT BSF BMTP WPMVOUBSZ NFNCFSTIJQ TUPQQFE HSPXJOH EFTQJUF TVDI QMBOT TUJMM CFJOH PQFO UP OFX NFNCFST PODF %$ QFOTJPOT CFDBNF NBJOTUSFBN PGGFSJOH GVMM BOE JNNFEJBUF WFTUJOH XIJDI JT OPU UIF DBTF XJUI %# QMBOT $VNVMBUJWF BTTFU HSPXUI JT OPX MJNJUFE BOE NPTUMZ ESJWFO CZ JOWFTUNFOU QFSGPSNBODF JO %# BTTFUT IBE SFUVSOFE UP UIFJS MFWFM *O ,PSFB XIFSF DPSQPSBUF QMBOT IBWF POMZ CFFO NBOEBUPSZ TJODF BTTFUT JO %# TDIFNFT BSF TUJMM HSPXJOH SBUIFS GBTU CVU TVDI QMBOT IBWF POMZ CFFO JOUSP EVDFE JO BOE JU SFNBJOT UP CF TFFO XIFUIFS UIJT USFOE DBO DPOUJOVF PODF MBSHF DPSQPSBUJPOT IBWF BEPQUFE UIFN *O "O &%)&$3JTL *OTUJUVUF 1VCMJDBUJPO


.BZ


&YFDVUJWF 4VNNBSZ

PG QFSNBOFOU FNQMPZFFT JO ,PSFB XPSLFE GPS B MBSHF àSN PG NPSF UIBO FNQMPZFFT

FYDMVEJOH UIF QVCMJD TFDUPS *OEFFE XIJMF QSJWBUF QFOTJPOT BSF OPX NBOEBUPSZ FNQMPZFST IBWF B DIPJDF CFUXFFO %# BOE %$ QMBOT !

0VS SFWJFX PG DPSQPSBUF BOE PDDVQBUJPOBM %# QMBOT JO &BTU "TJB ZJFMET B OVNCFS PG TBMJFOU QPJOUT XIJDI XF TVNNBSJTF CFMPX 4J[F BOE TJHOJàDBODF !

!

!

!

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

'VOEJOH BOE CFOFàUT !

*O +BQBO BOE ,PSFB

%# QMBOT BSF PG B DPOUSBDUVBM OBUVSF JF UIFZ

!

!

!

EP OPU FYJTU BT JOEFQFOEFOU GVOET CVU BSF FGGFDUJWFMZ JOWFTUNFOU NBOEBUFT HJWFO UP BTTFU NBOBHFST "DUVBM DPSQPSBUF QFOTJPO GVOET FYJTU JO )POH ,POH BOE UP B MFTTFS FYUFOU JO +BQBO $POUSBDUVBM QMBOT BMTP FYJTU JO )POH ,POH 'VOEJOH JT NPTUMZ QSPWJEFE CZ FNQMPZFST BOE UIF DPNCJOBUJPO PG B NBOEBUPSZ NJOJNVN BDDSVBM XJUI UIF BCTFODF PG B NJOJNVN DPOUSJCVUJPO DBO MFBE UP VOGVOEFE MJBCJMJUJFT 7FTUJOH SVMFT JO &BTU "TJB BSF PGUFO VODMFBS BOE OPU TUBUVUPSZ BMUIPVHI GVMM WFTUJOH JO +BQBOFTF BOE ,PSFBO %# QMBOT BGUFS UISFF ZFBST JT DPNNPO QSBDUJDF 3FDFOU SFGPSNT JO )POH ,POH IBWF JNQSPWFE CFOFàU SJHIUT WFTUJOH 1SJWBUF %# QMBOT EP OPU OFDFTTBSJMZ QSPWJEF B QFOTJPO JF BO BOOVJUJTFE JODPNF TUSFBN *OTUFBE NPTU TVDI TDIFNFT QBZ B MVNQ TVN *O +BQBO BOOVJUJFT BSF BWBJMBCMF GPS JOEJWJEVBMT XJUI NPSF UIBO ZFBST PG DPOUSJCVUJPOT CVU UIFZ BSF OPU QSFGFSSFE *O ,PSFB BOOVJUZ EVSBUJPO JT MJNJUFE UP ZFBST BOE BSF OPU BWBJMBCMF FMTFXIFSF JO %# QMBOT JO UIF SFHJPO 5IVT MPOHFWJUZ SJTL JT NPTUMZ JSSFMFWBOU GPS TQPOTPST BOE UIF FYUFOU UP XIJDI JOEFY BUJPO JNQBDUT MJBCJMJUJFT JT NPSF MJNJUFE UIBO JO UIF DBTF PG MJGFMPOH JOEFYFE QFOTJPOT DPNNPO JO PUIFS %# TDIFNFT HMPCBMMZ

0CKFDUJWFT BOE DPOTUSBJOUT !

4JODF QSJWBUF %# QMBOT UZQJDBMMZ QBZ PVU MVNQ TVNT BU UIF EBUF PG SFUJSFNFOU PS EFQBSUVSF PG FNQMPZFFT UIFZ IBWF WFSZ MPPTFMZ EFàOFE MPOHUFSN JOWFTUNFOU



.BZ


&YFDVUJWF 4VNNBSZ

!

!

!

!

!

PCKFDUJWFT UZQJDBMMZ GPDVTFE PO DBQJUBM QSFTFSWBUJPO 5IF OFDFTTJUZ UP QBZ B MVNQ TVN XIFO BO FNQMPZFF MFBWFT B QPTJUJPO BMTP GPSDFT TVDI QMBOT UP IPME MBSHF BNPVOUT PG DBTI PS WFSZ MJRVJE MPXZJFMEJOH TFDVSJUJFT *OWFTUNFOU SFTUSJDUJPOT NJOJNJTF FYQPTVSF UP MJTUFE FRVJUJFT FH ,PSFB

PS CBO VOMJTUFE JOWFTUNFOUT FH )POH ,POH *O +BQBO %# QMBOT IBWF IJHIFS BMMPDB UJPOT UP FRVJUJFT BCPWF 0UIFSXJTF QSJWBUF %# QMBOT JO UIF SFTU PG &BTU "TJB BSF JOWFTUFE JO MPXZJFMEJOH BTTFUT ,PSFBO %# QMBOT IPME NPSF UIBO PG UIFJS BTTFUT JO MPXZJFMEJOH MJRVJE JOTUSV NFOUT JODMVEJOH NPSF UIBO JO DBTI *O FGGFDU UIF GPDVT PO QBZJOH MVNQ TVNT MFBET UP B WJSUVBM BCBOEPONFOU PG UIF JOWFTUNFOU NBOBHFNFOU RVFTUJPO UIBU TIPVME CF BEESFTTFE JO UIF DPOUFYU PG DPSQPSBUF %# GVOET BOE DSFBUFT QPUFOUJBMMZ TVCTUBOUJBM PQQPSUVOJUZ DPTUT GPS TQPOTPST 5IFSF JT TFMEPN FWJEFODF PG BTTFUMJBCJMJUZ NBOBHFNFOU "-.

BOE GVOEJOH BOE BDDSVBM SVMFT DSFBUJOH FOPVHI MFFXBZ UP NJOJNJTF FNQMPZFS DPOUSJCVUJPOT JO UIF TIPSUUFSN 3FRVJSFE GVOEJOH MFWFMT BSF UZQJDBMMZ JO +BQBO BOE )POH ,POH BOE JO ,PSFB CVU NPOJUPSJOH BOE JNQMFNFO UBUJPO BSF MJNJUFE BOE TQPOTPS BDUJPO OFHPUJBCMF 6OEFSGVOEJOH JT GSFRVFOU CVU WBSJFT DPOTJEFSBCMZ GSPN PDDBTJPOBM JO )POH ,POH %# QMBOT UP RVBTJTZTUFNBUJD JO ,PSFB PS +BQBO

*NQSPWFNFOUT GPS QMBO TQPOTPST

!

!

!

!

5IF QSPCMFN GBDFE CZ %# GVOET JO &BTU "TJB JT SBUIFS TJNQMFS UIBO GPS NPTU %# TDIFNFT JO UIF SFTU PG UIF XPSME TJODF UIFZ BSF NPTUMZ OPU FYQPTFE UP MPOHFWJUZ SJTL BOE POMZ FYQPTFE UP JOEFYBUJPO SJTLT VOUJM UIF SFUJSFNFOU PS EFQBSUVSF EBUF PG FNQMPZFFT &BTU "TJBhT DPSQPSBUF %# QMBOT OFFE UP JNQSPWF UIFJS GVOEJOH MFWFM BOE WPMBUJMJUZ JO UIF DPOUFYU PG NPSF TUSJOHFOU SFHVMBUJPO BOE UIF OFFE UP NJOJNJTF EFNBOET PO TQPOTPST TJODF IJHIFS DPOUSJ CVUJPOT NBZ OPU CF FDPOPNJDBMMZ GFBTJCMF BOE TIPSUGBMM SJTL JT CPSOF CZ QMBO TQPOTPST *OEFFE TIPSUUFSN GVOEJOH SBUJP DPOTUSBJOUT XPVME OPU CF DPTUMZ GPS QFOTJPO GVOET JG UIFZ BDDFQUFE UP JNQMFNFOU SJTLNBOBHFNFOU TUSBUFHJFT UIBU BSF PQUJNBM HJWFO TVDI DPOTUSBJOUT " MJBCJMJUZIFEHJOH QPSUGPMJP IFMQT NFFU HVBSBOUFFT BOE BMMPXT GPS DBQJUBM QSFTFS WBUJPO XIJMF GSFFJOH VQ B SJTL CVEHFU UP JNQSPWF QSPà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


.BZ


&YFDVUJWF 4VNNBSZ

UIF QVSDIBTF PG EPXOTJEF JOTVSBODF BOE JNQSPWF UIF TBGFUZ PG UIF JOWFTUNFOU TUSBUFHZ *NQSPWFNFOUT GPS QMBO NFNCFST !

!

!

"O JOTVSBODF QPMJDZ DPWFSJOH CFOFàUT GPS B TFMFDUJPO PG QFOTJPOFST 5IF USVTUFFT DPOUJOVF UP NBOBHF UIF TDIFNF CVU IBWF DFSUBJOUZ BCPVU UIF QMBOhT DPTUT 5IF JOTVSFS XSJUF B QPMJDZ JO UIF OBNF PG UIF USVTUFFT #VZPVUT JOWPMWF UIF USBOTGFS PG UIF TDIFNFhT BTTFU BOE MJBCJMJUJFT UP B SFHVMBUF JOTVSFS 5IF TQPOTPS BOE USVTUFFT BSF GVMMZ EJTDIBSHFE PG UIF QFOTJPO MJBCJMJUZ 5IF JOTVSFS UIFO XSJUF B QPMJDZ JO UIF OBNF PG JOEJWJEVBM NFNCFST " DPOUSBDU CZ XIJDI POF QBSUZ NBLFT SFHVMBS QBZNFOUT CBTFE PO BHSFFE NPSUBMJUZ BTTVNQUJPOT UP BO JOWFTUNFOU CBOL PS JOTVSFS BOE JO SFUVSO UIF CBOL PS JOTVSFS QBZT PVU BNPVOUT CBTFE PO UIF TDIFNFhT BDUVBM NPSUBMJUZ SBUFT 5IJT NJSSPST UIF TUSVDUVSF PG BO JOUFSFTU SBUF PS JOáBUJPO TXBQ

5IF BCTFODF PG QPTUSFUJSFNFOU JODPNF QSPWJTJPO JO UIF NBKPSJUZ PG &BTU "TJBhT QSJWBUF %# QMBOT MFBWFT UIF JTTVF PG MPOHFWJUZ SJTL BOE BDIJFWJOH B HJWFO MFWFM PG QPTUSFUJSFNFOU JODPNF FOUJSFMZ UP JOEJWJEVBMT " HSFBUFS MFWFM PG SJTL TIBSJOH XJUI TQPOTPST EVSJOH UIF QPTUSFUJSFNFOU QIBTF XPVME PCWJPVTMZ CF CFOFà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

)FODF UIF QSJWBUF %# TFDUPS JO &BTU "TJB SFNBJOT SBUIFS VOEFSEFWFMPQFE EFTQJUF IBWJOH UIF MPOHFTU IJTUPSZ PG BMM UIF DPSQPSBUF BOE PDDVQBUJPOBM QMBOT JO UIF SFHJPO "TTFUT IBWF HSPXO JOJUJBMMZ CVU UIJT HSPXUI IBT UZQJDBMMZ TMPXFE NBSLFEMZ BGUFS B XIJMF BOE UPUBM BTTFUT OFWFS DBNF UP SFQSFTFOU B MBSHF TIBSF PG (%1

.PTUMZ WPMVOUBSZ TDIFNFT GVOEFE TPMFMZ CZ FNQMPZFST BOE NPTUMZ TFU VQ BT DPOUSBDUVBM QMBOT XJUI FYUFSOBM NBOBHFST IBWF OPU MFE UP UIF DSFBUJPO PG B TUSPOH DPSQPSBUF QFOTJPO TFDUPS CVU JOTUFBE IBWF CFDPNF BO BWBUBS PG UIF SFUJSFNFOU BMMPXBODF QSFGFSFODF UIBU IBT IJTUPSJDBMMZ EFàOFE &BTU "TJBO DPSQPSBUF DVMUVSF 5IF SPMF PG QFOTJPOT BT B TPVSDF PG EFGFSSFE QBZ UP SFXBSE MPZBM FNQMPZFFT BOE QSPWJEF MPOHUFSN JODFOUJWFT UP NBOBHFST IBT MPOH CFFO SFDPHOJTFE JO QSBDUJDF BOE JO UIF BDBEFNJD MJUFSBUVSF #MBLF $PSQPSBUF QFOTJPOT JO &BTU "TJB FTTFOUJBMMZ DPOUJOVF UP QMBZ UIJT SPMF CVU OPU UIBU PG QSPWJEJOH SFUJSFNFOU JODPNF UP NFNCFST *O UIF BCTFODF PG JNQSPWFE SJTL TIBSJOH CFUXFFO QMBO TQPOTPST BOE NFNCFS EVSJOH UIF QPTUSFUJSFNFOU QIBTF JOEJWJEVBMT XIP SFDFJWF MVNQ TVN CFOFàUT NVTU NBOBHF UIFJS PXO SFUJSFNFOU TBWJOHT UP àOBODF UIF TIBSF PG UIFJS MJGFDZDMF EFàDJU UIBU JT OPU DPWFSFE CZ QVCMJD QFOTJPOT *O UIJT DPOUFYU %# MVNQ TVNT DBO CF VTFE UP BDDFTT %$ TPMVUJPOT XIFO JOEJWJEVBMT DIBOHF QPTJUJPO PS SFUJSF

%FàOFEDPOUSJCVUJPO QMBOT BSF OPU JODFOUJWJTFE BOE EP OPU PGGFS QPTUSFUJSFNFOU TPMVUJPOT %$ PQUJPOT OPX FYJTU JO )POH ,POH +BQBO ,PSFB 5BJXBO BOE $IJOB *O )POH ,POH UIFZ XFSF JOUSPEVDFE ZFBST BHP BT B WPMVOUBSZ UZQF PG PDDVQBUJPOBM QFOTJPO QMBO CFGPSF CFDPNJOH UIF NBJO NBOEBUPSZ QFOTJPO



.BZ


&YFDVUJWF 4VNNBSZ

TDIFNF JO BT XFMM BT UIF MBSHFTU %$ TZTUFN JO &BTU "TJB %$ QMBOT IBWF POMZ FYJTUFE JO UIF SFHJPO GPS MFTT UIBO B EFDBEF FWFO JO +BQBO .BOEBUPSZ %$ FYJTUT JO 5BJXBO TJODF *O ,PSFB NBOEBUPSZ %$ QMBOT IBWF POMZ FYJTUFE TJODF 7PMVOUBSZ %# QMBOT IBWF FYJTUFE TJODF 5IVT XJUI UIF FYDFQUJPO PG )POH ,POH %$ QMBOT SFNBJO B NBSHJOBM EJNFOTJPO PG QFOTJPO TZTUFNT JO UIF SFHJPO FWFO UIPVHI BTTFUT BSF CFHJOOJOH UP HSPX JO B OVNCFS PG KVSJTEJDUJPOT FTQFDJBMMZ 5BJXBO *O %$ BTTFUT SFQSFTFOUFE PG (%1 JO )POH ,POH CVU MFTT UIBO FWFSZ XIFSF FMTF JO UIF SFHJPO *O +BQBO XIFSF %$ QMBOT IBWF FYJTUFE GPS NPSF UIBO B EFDBEF CVU SFNBJO WPMVOUBSZ DVNVMBUJWF BTTFUT BNPVOU UP MFTT UIBO PG (%1 5IF XFMMEPDVNFOUFE TIJGU UP %$ QFOTJPOT JO PUIFS QBSUT PG UIF XPSME IBT OFWFSUIFMFTT CFHVO JO UIF &BTU "TJB FYDFQU JO )POH ,POH XIFSF %$ DPWFSBHF JT IJHIFS BTTFUT BSF HSPXJOH SBQJEMZ JO PUIFS DPVOUSJFT BMCFJU TUBSUJOH GSPN B MPX CBTF *O 5BJXBO XIFSF %$ IBT CFFO NBEF NBOEBUPSZ NFNCFSTIJQ HSPXUI SFBDIFT QFS ZFBS *O DPVOUSJFT XIFSF %$ XBT POMZ JOUSP EVDFE SFDFOUMZ BOE BMUFSOBUJWF PQUJPOT BSF BWBJMBCMF FH ,PSFB

JU SFNBJOT UP CF TFFO JG UIJT HSPXUI XJMM DPOUJOVF PS OPU *OEFFE CPUI àSNT BOE FNQMPZFFT NBZ DPOUJOVF UP QSFGFS DPSQPSBUF %# QMBOT

1FOTJPO TDIFNFT BSF TVQQPTFE UP DSFBUF JODFOUJWFT UP TBWF PO UIF POF IBOE BOE UP IFMQ NBOBHF UIFTF TBWJOHT UP NFFU MJGFDZDMF DPOTVNQUJPO PCKFDUJWFT PO UIF PUIFS )PXFWFS BT EJTDVTTFE BCPWF &BTU "TJB BMSFBEZ IBT WFSZ IJHI IPVTFIPME BOE EPNFTUJD TBWJOHT SBUFT BOE JO FGGFDU FYIJCJUT FYDFTT TBWJOHT BU CPUI NJDSP BOE NBDSPFDPOPNJD MFWFMT *ODFOUJWFT UP TBWF NPSF BSF UIVT MJLFMZ UP CF SFEVOEBOU 5IF LFZ RVFTUJPO JT POF PG DSFBUJOH JODFOUJWFT UP TBWF JOUP EFEJDBUFE QFOTJPO TDIFNFT UIBU BSF EFTJHOFE UP TVQQPSU QPTUSFUJSFNFOU DPOTVNQUJPO PCKFDUJWFT 4P GBS %$ TDIFNFT JO &BTU "TJB NPTUMZ GBJM PO CPUI DPVOUT 5IFZ DSFBUF GFX JG BOZ JODFO UJWFT UP VTF UIFN JOTUFBE PG SFHVMBS TBWJOHT BDDPVOUT 5IFZ BMTP GBJM UP PGGFS NVDI QPTUSFUJSFNFOU JOWFTUNFOU TPMVUJPOT UIBU XPVME KVTUJGZ DIBOOFMMJOH FYJTUJOH TBWJOHT JOUP TVDI BDDPVOUT 'JSTU XIFO QMBOT BSF WPMVOUBSZ JODFOUJWFT BSF MJNJUFE CFDBVTF FNQMPZFFT BSF FJUIFS OPU BMMPXFE PS OPU JODFOUJWJTFE UP TBWF JO %$ QMBOT 5IF FNQMPZFS BMTP PGUFO BDUT BT B HBUFLFFQFS PG BOZ BDDFTT UP %$ QMBOT FWFO JOEJWJEVBM POFT #VU FNQMPZFST BSF BMTP HJWFO TDBOU UBY JODFOUJWFT UP PGGFS UIJT PQUJPO .BOEBUPSZ %$ TDIFNFT NBZ BMTP IBWF WFTUJOH BOE QPSUBCJMJUZ JTTVFT BOE DPOUSJ CVUJPO DPNQMJBODF JT WBSJBCMF JO TPNF KVSJT EJDUJPOT $POUSJCVUJPO DFJMJOHT DBO BMTP CF TFU WFSZ MPX BOE NJOJNJTF UIF VTF PG TVDI QMBOT "O &%)&$3JTL *OTUJUVUF 1VCMJDBUJPO


.BZ


&YFDVUJWF 4VNNBSZ

4FDPOE MJLF UIF JNNFOTF NBKPSJUZ PG QSJWBUF QFOTJPO TDIFNFT JO &BTU "TJB %$ TDIFNFT XIFUIFS UIFZ BSF DPSQPSBUF PS JOEJWJEVBM QMBOT EP OPU PGGFS BOZ QPTUSFUJSFNFOU JODPNF CVU JOTUFBE QBZ B MVNQ TVN "OOVJUJTBUJPO JT QPTTJCMF JO TPNF DBTFT CVU UZQJDBMMZ OPU GPS B MPOH QFSJPE BOE BOOVJUZ NBSLFUT BSF HFOFSBMMZ TNBMM BOE FYQFOTJWF FTQFDJBMMZ JO B NBDSPFDPOPNJD FOWJSPONFOU JO XIJDI JOUFSFTU SBUFT BSF EVSBCMZ LFQU BSUJàDJBMMZ MPX BT EJTDVTTFE BCPWF

!

!

*ODFOUJWFT UP TBWF !

!

*U GPMMPXT UIBU JO PSEFS GPS %$ QMBOT UP EFWFMPQ BOE IFMQ SFTPMWF UIF JTTVFT PG GVOEJOH MJGFDZDMF EFàDJUT PG BHFJOH QPQVMBUJPOT JO &BTU "TJB UIFZ OFFE UP CF NBEF NPSF BDDFTTJCMF BOE BUUSBDUJWF BOE UIFZ OFFE UP DPOUSJCVUF UP QSPWJEJOH QPTUSFUJSFNFOU JODPNF TPMVUJPOT BT PQQPTFE UP B WFSZ JOFGàDJFOU GPSN PG TBWJOHT TVCTUJUVUJPO

$PMMFDUJWF %$ TDIFNFT JO 5BJXBO PS JO TPNF DBTFT JO +BQBO PGGFS TPNF SJTL QPPMJOH 1SJODJQBM HVBSBOUFFT BOE JOEFYBUJPO DMBVTFT BSF BWBJMBCMF JO TPNF KVSJTEJD UJPOT FTQFDJBMMZ JO ,PSFB 5BJXBO BOE +BQBO

!

!

!

/FYU PVS SFWJFX IJHIMJHIUT UIF GPMMPXJOH TUZMJTFE GBDUT BCPVU %$ QMBOT JO &BTU "TJB

$POUSJCVUJPO SBUFT BSF VTVBMMZ TFU BU JOBQQSPQSJBUF MFWFMT CPUI NJOJNVN BOE NBYJNVN MFWFMT DBO CF UPP MPX 5IF UBY EFEVDUJCJMJUZ PG DPOUSJCVUJPOT GPS UIF FNQMPZFS JT FJUIFS JOTVGàDJFOUMZ BUUSBDUJWF VODMFBS PS JOFYJTUFOU (VBSBOUFFT XIFO UIFZ FYJTU BSF TFMEPN UBLFO JOUP BDDPVOU JO UIF JOWFTUNFOU TUSBUFHZ 7FTUJOH BOE QPSUBCJMJUZ BSF VOBUUSBDUJWF JO B OVNCFS PG DBTFT FWFO UIPVHI UIJT BTQFDU IBT JNQSPWFE JO SFDFOU ZFBST )JHI DPOUSJCVUJPO DPNQMJBODF FYJTUT POMZ JO )POH ,POH XIFSF OPODPNQMJBODF JT B DSJNJOBM PGGFODF

$PTUT )ZCSJEJUZ ! !

!

)ZCSJEJUZ PS UIF MFWFM PG SJTL TIBSJOH CFUXFFO QMBO TQPOTPS BOE QMBO DPOUSJC VUPST JT MJNJUFE JO %$ QMBOT BWBJMBCMF JO UIF SFHJPO *OEJWJEVBM BDDPVOUT JO )POH ,POH PS $IJOB UZQJDBMMZ DPSSFTQPOE UP UIF zQVSFh GPSN PG %$ QMBOT JO XIJDI JOEJWJEVBMT CFBS BMM JOWFTUNFOU SJTL BOE NVTU EFDJEF PO BO JOWFTUNFOU TUSBUFHZ

!

$PTUT BSF DPOTJEFSFE UP CF IJHI JO NPTU TZTUFNT -PXDPTU JOWFTUNFOU TPMVUJPOT BNPOH PUIFS UIJOHT DBO IFMQ JNQSPWF DPTUFGàDJFODZ $IJOB JT BO FYDFQUJPO BOE NBOBHFSTh GFFT BSF DBQQFE BU B MFWFM DPOTJEFSFE UPP MPX

$IPJDF BOE EFGBVMU PQUJPOT !

.PTU %$ QMBOT JO UIF SFHJPO PGGFS B DIPJDF PG JOWFTUNFOU PQUJPOT UP QMBO NFNCFST CVU OPU $IJOFTF PS 5BJXBOFTF QMBOT



.BZ


&YFDVUJWF 4VNNBSZ

!

!

!

!

0OMZ )POH ,POH BOE ,PSFBhT FNQMPZFST PGGFS B DIPJDF PG QFOTJPO QMBO QSPWJEFS 3FHVMBUFE EFGBVMU PQUJPOT EP OPU FYJTU %FGBVMU PQUJPOT BSF UZQJDBMMZ MPX SJTL QSJODJQBMHVBSBOUFFE QSPEVDUT PS CBMBODFE GVOET OFJUIFS PG XIJDI JT BQQSPQSJBUF GSPN B MJGFDZDMF QPJOU PG WJFX *OWFTUNFOU PQUJPOT DBO BMTP CF UPP OVNFSPVT JO +BQBO PS )POH ,POH GPS FYBNQMF MFBEJOH UP UIF XFMMEPDVNFOUFE zDIPJDF QBSBMZTJTh /POàOBODJBM SJTLT FH DPVOUFSQBSUZ PS MJRVJEJUZ SJTLT BSF TFMEPN VOEFSTUPPE PS UBLFO JOUP BDDPVOU

*NQSPWFNFOUT !

!

!

!

%$ QMBOT MJLF BOZ QFOTJPO JOWFTUNFOU TPMVUJPO TIPVME EFàOF MPOHUFSN PCKFD UJWFT FJUIFS JO UFSNT PG UBSHFU XFBMUI PS FYUSFNF FWFOU NJOJNJTBUJPO UIVT BMMPXJOH B QSPQFS BTTFUMJBCJMJUZ BQQSPBDI -JGFDZDMF BQQSPBDIFT UIBU UBLF UIF JOWFTUNFOU IPSJ[PO PG QBSUJDJQBOUT JOUP BDDPVOU TIPVME CF TUBOEBSE BOE JNQSPWF PO FYJTUJOH TUBUJD BQQSPBDIFT GPVOE JO zUBSHFU EBUFh BOE zMJGFDZDMF GVOETh CZ BQQMZJOH B EZOBNJD JOWFTUNFOU TPMVUJPO "TTFU BMMPDBUJPO NVTU CF EFTJHOFE VTJOH BEFRVBUF CVJMEJOH CMPDLT JO PSEFS UP NBYJNJTF EJWFSTJàDBUJPO CFOFàUT XIJMF DPOUSPMMJOH SJTLT BOE NFFUJOH MPOHUFSN PCKFDUJWFT )PXFWFS GVMMZ DVTUPNJTFE TPMVUJPOT BSF UPP FYQFOTJWF GPS SFUBJM JOWFTUPST BOE QSFQBDLBHFE TUBOEBSEJTFE POFT NVTU CF NBEF BWBJMBCMF UP SFTQPOE UP B SBOHF PG QPTUSFUJSFNFOU JOWFTUNFOU OFFET

!

*O NBSLFUT XIFSF %$ QMBOT BSF NBOEBUPSZ BOE NBZ FWFO CF UIF POMZ QFOTJPO TZTUFN BWBJMBCMF FH )POH ,POH GPSNT PG NBOEBUPSZ CVU SFHVMBUFE BOOVJUJTBUJPO TIPVME CF DPOTJEFSFE CZ UIF SFHVMBUPS UP TVQQPSU UIF EFWFMPQNFOU PG BO BOOVJUJ TBUJPO JOEVTUSZ XIJMF FOTVSJOH DPNQFU JUJWF QSJDFT

$PODMVTJPO 4DJFOUJàD BTTFU NBOBHFNFOU NBUUFST GPS QFOTJPO PVUDPNFT JO &BTU "TJB *O DPODMVTJPO XIJMF UIF EFNPHSBQIJD BOE JOWFTUNFOU DIBMMFOHFT UIBU DIBSBDUFSJTF UIF JTTVF PG SFUJSFNFOU QMBOOJOH BOE JODPNF HFOFSBUJPO JO &BTU "TJB BSF TJHOJàDBOU BOE TFFNJOHMZ JOUSBDUBCMF BEESFTTJOH UIF SFHVMBUPSZ DIBMMFOHF EJTDVTTFE BCPWF JO SFMBUJPO UP QFOTJPO SFTFSWFT DPSQPSBUF BOE PDDVQBUJPOBM EFàOFECFOFàU QMBOT BOE DPSQPSBUF BOE JOEJWJEVBM EFàOFE DPOUSJCVUJPO QMBOT DBO HP B MPOH XBZ UP BEESFTT UIF àSTU UXP TFUT PG JTTVFT UIBU XF IBWF JEFOUJàFE EFNPHSBQIJDT BOE UIF &BTU "TJBO FDPOPNJD NPEFM %FNPHSBQIJD USFOET BSF EJGàDVMU UP PGGTFU PS SFWFSTF BOE UIF SJTF PG MJGFDZDMF EFàDJUT EPDVNFOUFE CZ -FF BOE .BTPO

TVHHFTUT UIBU JO UIF BCTFODF PG OFX TPVSDFT PG JODPNF UP TVQQPSU UIF JODSFBTF PG QFS DBQJUB DPOTVNQUJPO PG UIF FMEFSMZ JO BO BHFJOH TPDJFUZ TFSJPVT DPOTFRVFODFT DBO CF FYQFDUFE JO UFSNT PG FJUIFS àTDBM TUBCJMJUZ PS JOUFSHFOFSBUJPOBM TPDJBM GSJDUJPOT $SVDJBMMZ UIF QBDF PG QPQVMBUJPO BHFJOH JO &BTU "TJB MFBWFT MJUUMF UJNF GPS BEBQUBUJPO "O &%)&$3JTL *OTUJUVUF 1VCMJDBUJPO


.BZ


&YFDVUJWF 4VNNBSZ

BOE TQSFBEJOH UIF DPTU PG UIF MBTU TUBHF PG UIF EFNPHSBQIJD USBOTJUJPO PWFS TFWFSBM HFOFSBUJPOT -JLFXJTF TUSVDUVSBM àOBODJBM EJTUPSUJPOT BOE NBDSPFDPOPNJD JNCBMBODFT DSFBUF BO JOWFTUNFOU FOWJSPONFOU GPS QFOTJPO TBWJOHT JO XIJDI B OVNCFS PG TUBOEBSE IZQPUIFTFT PG BDBEFNJD àOBODF TVDI BT NFBO SFWFSTJPO NBZ OPU BQQMZ BOE UIVT GPS NBLF IPSJ[POCBTFE JOWFTUNFOU TUSBUFHJFT JOFGGFDUJWF *U NBZ BMTP NBLF CFODINBSLJOH UIF CVJMEJOH CMPDLT PG BO PQUJNBM EJWFS TJàDBUJPO TUSBUFHZ NPSF EJGàDVMU JG SJTL JT TZTUFNBUJDBMMZ NJTQSJDFE FTQFDJBMMZ JO FRVJUZ NBSLFUT 5IJT NBZ JODSFBTF UIF OFFE UP JOWFTU JOUFSOBUJPOBMMZ UP PGGTFU TVDI EJTUPSUJPOT .PSFPWFS UIF MPOHFS UIF FWFOUVBM SF CBMBODJOH PG TPNF PG &BTU "TJBhT NBJO FDPOPNJFT UBLFT UIF NPSF QBJOGVM JU JT MJLFMZ UP CF GPS B XIPMF HFOFSBUJPO PG TBWFST "T UIF SFCBMBODJOH PG +BQBO GSPN UIF T POXBSET JMMVTUSBUFT B NVMUJ EFDBEF TMVNQ DBO GPMMPX B CBMBODFTIFFU SFDFTTJPO NBLJOH MPOHUFSN JOWFTUNFOU QMBOOJOH EJGàDVMU )PXFWFS UIF JOUSPEVDUJPO PG TDJFOUJàD JOWFTUNFOU DPODFQUT JOUP UIF EFTJHO PG QFOTJPO TBWJOHT QMBOT XJMM POMZ NBLF UIFTF JTTVFT NPSF FYQMJDJU BOE DPOUSJCVUF UP B OFDFTTBSZ SFHVMBUPSZ BOE NBDSPQSVEFOUJBM EFCBUF BCPVU UIF GVUVSF PG TVDI GBTU BHFJOH TPDJFUJFT 'PS GVOEFE QFOTJPO TZTUFNT UP EFMJWFS MFWFMT PG XFBMUI JO SFBM UFSN UIBU BSF DPNNFO TVSBUF XJUI QPTUSFUJSFNFOU DPOTVNQUJPO

PCKFDUJWFT TDJFOUJàD TPMVUJPOT JEFOUJàFE JO UIF MJUFSBUVSF SFDPNNFOE UIF DPNCJOFE JNQMFNFOUBUJPO PG UISFF JOWFTUNFOU QBSBEJHNT J -JBCJMJUZESJWFO JOWFTUNFOU PS -%* JJ MJGFDZDMF JOWFTUNFOU PS -$* BOE JJJ

SJTL DPOUSPM JOWFTUNFOU PS 3$* BT EFàOFE JO $PDRVFNBT !

!

!

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àOFE CZ UIF SFHVMBUPS 5IJT JT UIF SJTLDPOUSPMMFE JOWFTUJOH 3$* BQQSPBDI

*O UIJT DPOUFYU TFWFSBM JNQPSUBOU QPJOUT DBO CF NBEF SFHBSEJOH UIF JNQSPWFNFOU PG GVOEFE QFOTJPO QMBOT JO &BTU "TJB



.BZ


&YFDVUJWF 4VNNBSZ

*OWFTUNFOU TPMVUJPOT GPS QFOTJPO SFTFSWFT DBO IFMQ NJUJHBUF UIF JNQFOEJOH QVCMJD QFOTJPO DSJTJT "T XF IBWF BSHVFE BCPWF UIF FYJTUFODF PG UIFTF MBSHF SFTFSWFT SFQSFTFOUT B VOJRVF PQQPSUVOJUZ GPS &BTU "TJBhT HPWFSONFOUT UP BEESFTT UIF VOTVTUBJOBCJMJUZ PG QVCMJD QBZ BTZPVHP QFOTJPO TDIFNFT SFTVMUJOH GSPN QPQVMBUJPO BHFJOH 4FJ[JOH UIJT PQQPSUVOJUZ XJMM SFRVJSF NBLJOH GVOEBNFOUBM DIBOHFT JO UIF XBZ SFTFSWF GVOET IBWF CFFO DPOUSPMMFE BOE NBOBHFE GPS UIF QBTU EFDBEFT BOE BEPQUJOH JOWFTUNFOU NBOBHFNFOU QSPDFTTFT BOE UPPMT UIBU XJMM BMMPX QFOTJPO SFTFSWFT UP BDIJFWF XIBU TIPVME CF UIFJS TPMF PCKFDUJWF UP TVQQPSU UIF QVCMJD QFOTJPO TZTUFN CZ NJOJNJTJOH UIF CVSEFO PG QFOTJPO MJBCJMJUJFT PO GVUVSF HFOFSBUJPOT XIJMF FOTVSJOH BEFRVBUF QVCMJD QFOTJPO QSPWJTJPO 5IF NBJO DIBOHFT SFRVJSFE JODMVEF DMFBSMZ EFàOJOH UIF MPOHUFSN PCKFDUJWFT BOE TIPSUUFSN DPOTUSBJOUT PG SFTFSWF GVOET BOE QVUUJOH JO QMBDF UIF HPWFSOBODF NFDIBOJTNT UIBU HVBSBOUFF UIBU UIFZ POMZ BUUFNQU UP BDIJFWF UIFTF PCKFDUJWFT XIJMF SFTQFDUJOH CJOEJOH DPOTUSBJOUT 8JUI XFMMEFàOFE PCKFDUJWFT BOE DPOTUSBJOUT BEFRVBUF TDJFOUJàD JOWFTUNFOU TPMVUJPOT DBO CF EFàOFE BOE JNQMFNFOUFE BOE JO UVSO UIF TVTUBJOBCJMJUZ PG UIF QVCMJD QFOTJPO TZTUFN DBO CF HSFBUMZ JNQSPWFE %FàOFECFOFàU DPSQPSBUF BOE PDDVQB UJPOBM QMBOT DBO JNQSPWF CPUI TQPOTPS BOE NFNCFS PVUDPNFT JG BEFRVBUF

JOWFTUNFOU NFOUFE

NBOBHFNFOU

JT

JNQMF

"T XF IBWF EJTDVTTFE BCPWF WPMVOUBSZ TDIFNFT GVOEFE TPMFMZ CZ FNQMPZFST BOE NPTUMZ TFU VQ BT DPOUSBDUVBM QMBOT XJUI FYUFSOBM NBOBHFST IBWF OPU MFE UP UIF DSFBUJPO PG B TUSPOH DPSQPSBUF QFOTJPO TFDUPS CVU JOTUFBE IBWF CFDPNF BO BWBUBS PG UIF SFUJSFNFOU BMMPXBODF QSFGFSFODF UIBU IBT IJTUPSJDBMMZ EFàOFE &BTU "TJBO DPSQPSBUF DVMUVSF $PSQPSBUF %# QFOTJPOT JO &BTU "TJB QMBZ B SPMF BT B TPVSDF PG EFGFSSFE QBZ UP SFXBSE MPZBM FNQMPZFFT BOE QSPWJEF MPOH UFSN JODFOUJWFT UP NBOBHFST BT IBT MPOH CFFO SFDPHOJTFE JO QSBDUJDF BOE JO UIF BDBEFNJD MJUFSBUVSF CVU UIFZ EP OPU QSPWJEF SFUJSFNFOU JODPNF 5XP UZQFT PG JNQSPWFNFOUT TIPVME CF DPOTJEFSFE GPS QSJWBUF %# QMBOT JO UIF SFHJPO JNQSPWFNFOU GPS TQPOTPST BOE GPS NFNCFST 'JSTU %# QMBOT OFFE UP JNQSPWF UIFJS GVOEJOH MFWFMT BOE WPMBUJMJUZ JO UIF DPOUFYU PG NPSF TUSJOHFOU SFHVMBUJPO BOE UIF OFFE UP NJOJNJTF EFNBOET PO TQPOTPST TJODF IJHIFS DPOUSJCVUJPOT NBZ OPU CF FDPOPN JDBMMZ GFBTJCMF 'PS UIJT QVSQPTF UIF TJNQMF BQQMJDBUJPO PG BTTFUMJBCJMJUZ NBOBHFNFOU NPEFMT XIJMF JU BMMPXT GPS DBQJUBM QSFTFS WBUJPO BOE GSFFJOH VQ B SJTL CVEHFU UP JNQSPWF QSPàUBCJMJUZ XPVME OPU CF PQUJNBM GPS BO PDDVQBUJPOBM %# GVOE CBDLFE CZ B TQPOTPS "-. NPEFMT TIPVME FYQMJDJUMZ BDDPVOU GPS UIF JNQMJDJU HVBSBOUFF PG UIF TQPOTPS BOE SFDPHOJTF UIBU JU JT NPSF PS "O &%)&$3JTL *OTUJUVUF 1VCMJDBUJPO


.BZ


&YFDVUJWF 4VNNBSZ

MFTT SJTLZ EFQFOEJOH PO UIF IFBMUI PG UIF TQPOTPS

WFIJDMFT GPS QPTUSFUJSFNFOU JODPNF HFOFSBUJPO

*O UIJT DPOUFYU TIPSUUFSN GVOEJOH SBUJP DPOTUSBJOUT XPVME OPU CF DPTUMZ GPS QFOTJPO GVOET JG UIFZ BDDFQUFE UP JNQMFNFOU SJTL NBOBHFNFOU TUSBUFHJFT UIBU BSF PQUJNBM HJWFO TVDI DPOTUSBJOUT 4NBSUFS TVSQMVT TIBSJOH SVMFT TIPVME CF FODPVSBHFE *O QBSUJDVMBS HJWJOH QMBO NFNCFST BDDFTT UP QBSU PG UIF TVSQMVT XJMM FODPVSBHF NPSF SJTLUBLJOH XIJDI JT UZQJDBMMZ JO UIF JOUFSFTU PG UIF TQPOTPS XIJMF JNQPTJOH B DBQ PO UIF UFSNJOBM GVOEJOH SBUJP DBO BMMPX UIF QVSDIBTF PG EPXOTJEF JOTVSBODF BOE JNQSPWF UIF TBGFUZ PG UIF JOWFTUNFOU TUSBUFHZ

%$ QMBOT MFBWF NPTU SJTLT XJUI JOEJWJEVBMT CVU BSF FYQFDUFE UP DSFBUF JODFOUJWFT UP TBWF PO UIF POF IBOE BOE UP IFMQ NBOBHF UIFTF TBWJOHT UP NFFU MJGFDZDMF DPOTVNQUJPO PCKFDUJWFT PO UIF PUIFS

4FDPOE TJODF &BTU "TJBhT %# GVOET JO UIFJS JNNFOTF NBKPSJUZ POMZ QBZ B MVNQ TVN MPOHFWJUZ BOE NPTU JOáBUJPO SJTL SFNBJOT XJUI NFNCFST NBLJOH QSJWBUF %# QMBOT B DSVEF UZQF PG IZCSJE QMBO "MPOH XJUI UIF TVSQMVT TIBSJOH TVHHFTUFE BCPWF HSFBUFS SJTL TIBSJOH CFUXFFO QMBO NFNCFST BOE TQPOTPST EVSJOH UIF QPTUSFUJSFNFOU QFSJPE DBO CF FOWJTBHFE FWFO UIPVHI JU NBZ SFRVJSF SFHVMBUPSZ JOUFSWFOUJPO UP CF QPTTJCMF 5IF EFWFMPQNFOU PG NBOEBUPSZ BOOVJUJ TBUJPO BT BMSFBEZ QSPQPTFE JO PUIFS QBSUT PG "TJB FH 4JOHBQPSF

BMPOH XJUI àOBODJBM DPOUSBDUT BMMPXJOH UIF NBOBHFNFOU PG MPOHFWJUZ SJTL GPS TQPOTPST FH CVZJOT CVZPVUT MPOHFWJUZ TXBQT BSF BNPOHTU UIF TPMVUJPOT SFRVJSJOH GVUVSF EFWFMPQNFOUT PG &BTU "TJBhT àOBODJBM TFDUPS BOE NBSLFUT %FàOFEDPOUSJCVUJPO QMBOT SFNBJO UP CF EFWFMPQFE JOUP BUUSBDUJWF TBWJOHT

4JODF &BTU "TJB BMSFBEZ IBT WFSZ IJHI IPVTFIPME BOE EPNFTUJD TBWJOHT SBUFT UIF LFZ RVFTUJPO JT POF PG DSFBUJOH JODFOUJWFT UP TBWF JOUP EFEJDBUFE QFOTJPO TDIFNFT UIBU BSF EFTJHOFE UP TVQQPSU QPTUSFUJSFNFOU DPOTVNQUJPO PCKFDUJWFT #VU &BTU "TJBh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



.BZ


&YFDVUJWF 4VNNBSZ

)FODF BO JNQPSUBOU JTTVF JT UP JODFOUJWJTF UIF VTF PG %$ QMBOT CZ DSFBUJOH DMFBS BOE BEFRVBUF JODFOUJWFT UP DIBOOFM FYJTUJOH BOE GVUVSF TBWJOHT JOUP EFEJDBUFE BDDPVOUT PGGFSJOH BUUSBDUJWF QPTUSFUJSFNFOU JOWFTUNFOU TPMVUJPOT 5IFTF TPMVUJPOT TIPVME UBLF B MPOHUFSN PCKFDUJWF JOUP BDDPVOU FH UBSHFU XFBMUI

BOE BMMPX GPS BO "-. BQQSPBDI XIJMF JOUFHSBUJOH JOWFTUNFOU IPSJ[POT 5IFZ TIPVME BMTP NBLF UIF CFTU VTF PG MPX DPTU JOWFTUNFOU TPMVUJPOT VTJOH PQUJNBMMZ EFTJHOFE CVJMEJOH CMPDLT 4UBOEBSEJTFE QBDLBHFT TIPVME GVSUIFS SFEVDF DPNQMFYJUZ BOE DPTUT 'JOBMMZ SFHVMBUFE EFGBVMUT PQUJPOT TIPVME CF EFTJHOFE XJUI UIFTF DSJUFSJB JO NJOE



.BZ


&YFDVUJWF 4VNNBSZ



.BZ

*OWFTUNFOU 4PMVUJPOT BSF /FFEFE GPS 1FOTJPO 4BWJOHT JO &BTU "TJB



.BZ


*OWFTUNFOU 4PMVUJPOT BSF /FFEFE GPS 1FOTJPO 4BWJOHT JO &BTU "TJB 5XP PG UIF NPTU DPNNPOQMBDF TUZMJTFE GBDUT BCPVU &BTU "TJB IBWF UP EP XJUI QFOTJPO JTTVFT UIF SFHJPOhT QPQVMBUJPO JT BHFJOH GBTU BOE JUT IPVTFIPME TFDUPS IBT IJHI TBWJOHT SBUFT #PUI JEFBT BSF JOUVJUJWFMZ SFMBUFE BT EFNPHSBQIJD USBOTJUJPOT PDDVS NPSF JOEJWJEVBMT TIPVME TBWF JO QSFQBSBUJPO GPS UIFJS SFUJSFNFOU *O UIJT QBQFS XF FYBNJOF UIF SFMBUJPOTIJQ CFUXFFO TBWJOHT BOE SFUJSFNFOU JODPNF JO &BTU "TJB EFàOFE BT /PSUI&BTU "TJB BOE (SFBUFS $IJOB +BQBO ,PSFB 5BJXBO $IJOB BOE )POH ,POH "SF &BTU "TJBhT TBWJOHT JOWFTUFE JO EFEJDBUFE QFOTJPO QMBOT EFTJHOFE UP EFMJWFS QPTU SFUJSFNFOU JODPNF "SF UIFTF QMBOT XIFO UIFZ FYJTU BEFRVBUFMZ EFTJHOFE 5IFTF RVFTUJPOT BSF QBSU PG B CSPBEFS JTTVF IPX TIPVME B TPDJFUZ BEBQU UP DIBOHFT JO JUT BHF TUSVDUVSF UP àOBODF JUT QSFTFOU BOE GVUVSF TUBOEBSET PG MJWJOH FTQFDJBMMZ XIFO UIF TIBSF PG UIF FMEFSMZ JO UIF QPQVMBUJPO JT TFU UP JODSFBTF DPOUJOVPVTMZ %FNPHSBQIJD USBOTJUJPOT BSF FQPDIBM UIFZ IBQQFO POMZ PODF BOE DSFBUF EJGGFSFOU SJTLT BOE PQQPSUVOJUJFT JO FBDI TPDJFUZ 'PS UIJT SFBTPO JU NBUUFST GPS NPTU DPVOUSJFT UP MFBSO GSPN UIPTF XIP FYQFSJFODF UIFTF DIBOHFT àSTU *O UIJT QFSTQFDUJWF &BTU "TJB NBLFT GPS B NPTU JOUFSFTUJOH DBTF TUVEZ TJODF JU JT FYQFSJ FODJOH UIF GBTUFTU EFNPHSBQIJD USBOTJUJPO JO UIF XPSME BOE JO IJTUPSZ

&BTU "TJB BMTP PGGFST B QBSUJDVMBSMZ VTFGVM OBUVSBM FYQFSJNFOU UIF EFNPHSBQIJD BOE FDPOPNJD USBOTJUJPOT PG +BQBO ,PSFB 5BJXBO )POH ,POH BOE $IJOB GPMMPX MBSHFMZ TJNJMBS QBUIT CVU XJUI B MBH +BQBO JT UXFOUZ ZFBST BIFBE BOE DBO CF VTFE BT B CFODINBSL DBTF PG UIF JNQBDU PG SBQJE BHFJOH BOE FDPOPNJD EFWFMPQNFOU GPMMPXJOH UIF TPDBMMFE A&BTU "TJBO NPEFMh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hT BHF TUSVDUVSF TQSJOHT GSPN JUT JNQBDU PO UIF FDPOPNZ



.BZ


*OWFTUNFOU 4PMVUJPOT BSF /FFEFE GPS 1FOTJPO 4BWJOHT JO &BTU "TJB JOUFSHFOFSBUJPOBM USBOTGFST BSF WFSZ MBSHF BOE CZ UIF UJNF B QPQVMBUJPO IBT BHFE NVDI PG JUT QSJWBUF XFBMUI IBT CFDPNF AQFOTJPO XFBMUIh IFME CZ UIF PMEFS QBSU PG UIF QPQVMBUJPO FJUIFS BT JODPNF HFOFS BUJOH BTTFUT PS BT DMBJNT PO GVUVSF JODPNF UISPVHI QVCMJD BOE QSJWBUF USBOTGFST

UIF EJGGFSFODF CFUXFFO MBCPVS JODPNF BOE UPUBM DPOTVNQUJPO UIBU NVTU CF àOBODFE CZ FJUIFS USBOTGFST EFCU EJTTBWJOH PS BTTFU JODPNF

5IVT XIBU NBUUFST JT OPU IPX POF BHF HSPVQ CFIBWFT CVU IPX BMM BHF HSPVQT CFIBWF SFMBUJWF UP FBDI PUIFS BT B GVODUJPO PG UIFJS XFBMUI BOE TJ[F 1FOTJPO XFBMUI QMBZT B NVMUJEJNFOTJPOBM SPMF OPU MJNJUFE UP QSPWJEJOH JODPNF UP SFUJSFFT CVU BGGFDUJOH BMM BHF HSPVQT JO EJGGFSFOU XBZT 1FOTJPO BTTFU NBOBHFNFOU NBUUFST OPU KVTU UP UIF FMEFSMZ CVU UP TPDJFUZ BU MBSHF UPEBZ BOE UPNPSSPX

5IF DPTU PG QPQVMBUJPO BHFJOH BOE UIF OFFE GPS JOWFTUNFOU TPMVUJPOT 8IFO UIJOLJOH BCPVU QFOTJPO PVUDPNFT DPOTVNQUJPO JT UIF àSTU PSEFS QSPCMFN #BSS 1FOTJPO TZTUFNT BSF EFTJHOFE UP IFMQ TVQQPSU FGGFDUJWF DPOTVNQUJPO MFWFMT BGUFS B DFSUBJO BHF XIFO MBCPVS JODPNF EFDSFBTFT PS TUPQT BMUPHFUIFS JG SFUJSFNFOU JT NBOEBUPSZ "DIJFWJOH BEFRVBUF SFBM UFSN QVSDIBTJOH QPXFS GPS UIF FOUJSF EVSBUJPO PG BO JOEJWJEVBMhT QFSJPE PG SFUJSFNFOU DBO CF B DPNQMFY QSPCMFN BOE IBT CFFO UIF PCKFDU PG TVCTUBOUJBM SFTFBSDI JOUP UIF EFTJHO PG QFOTJPO TDIFNFT BOE QFOTJPO TZTUFNT

)PXFWFS SFDFOU BEWBODFT JO EFNPHSBQIJD SFTFBSDI TIPX UIBU QPQVMBUJPO BHFJOH NBLFT UIJT QIFOPNFOPO FWFO NPSF DPNQMFY CFDBVTF XIBU JT UZQJDBMMZ DPOTJEFSFE BT B HJWFO JO UIF TUBOEBSE QFOTJPO EFTJHO QSPCMFN JF UIF PCKFDUJWF PG TNPPUIJOH DPOTVNQUJPO BDSPTT BO JOEJWJEVBMhT MJGFDZDMF CFDPNFT B NPWJOH UBSHFU UIF hMJGFDZDMF EFàDJUh PG SFUJSFFT JODSFBTFT TJHOJàDBOUMZ BU CPUI UIF BHHSFHBUF BOE QFS DBQJUB MFWFMT BT B QPQVMBUJPO BHFT *O PUIFS XPSET UIF MBSHFS UIF TIBSF PG UIF FMEFSMZ JO B HJWFO QPQVMBUJPO UIF IJHIFS JUT UPUBM QFS DBQJUB DPOTVNQUJPO PG QVCMJD BOE QSJWBUF HPPET BOE TFSWJDFT FTQFDJBMMZ IFBMUIDBSF BOE MPOHUFSN DBSF )FODF XJUI QPQVMBUJPO BHFJOH UIF MJGFDZDMF DPOTVNQUJPO QSPàMF PG JOEJWJEVBMT JT OP MPOHFS TNPPUI JF áBU CVU VQXBSE TMPQJOH GSPN BSPVOE ZFBST PG BHF POXBSET BOE UIF QFS DBQJUB DPOTVNQUJPO PG SFUJSFFT FWFOUVBMMZ SFBDIFT MFWFMT BCPWF UIBU PG UIF XPSLJOH QPQVMBUJPO BT TIPXO PO àHVSF JO UIF DBTF PG +BQBO PWFS B QFSJPE PG POMZ UXP EFDBEFT *G QPTUSFUJSFNFOU DPOTVNQUJPO JT QSJWBUFMZ àOBODFE CZ GBNJMJBM USBOTGFST BOE UIF QSPEVDU PG SFUJSFNFOU TBWJOHT CPUI JOWFTUNFOU JODPNF BOE EJTTBWJOHT UIFO UIF VQXBSE TMPQJOH DPOTVNQUJPO QSPàMF PG SFUJSFFT SFQSFTFOUT UIFJS MPOHUFSN PCKFDUJWF BOE TIPVME CF FYQMJDJUMZ UBLFO JOUP BDDPVOU XIFO EFTJHOJOH QFOTJPO TPMVUJPOT $POWFSTFMZ JG PME BHF DPOTVNQUJPO JT àOBODFE WJB QVCMJD USBOTGFST JF NPTUMZ GSPN UBYJOH UIF XPSLJOH QPQVMBUJPO "O &%)&$3JTL *OTUJUVUF 1VCMJDBUJPO


.BZ


*OWFTUNFOU 4PMVUJPOT BSF /FFEFE GPS 1FOTJPO 4BWJOHT JO &BTU "TJB Figure 4. Age-specific profiles of per capita consumption and production: Japan, 1984-2004 'JHVSF 1FS DBQJUB DPOTVNQUJPO BOE MBCPVS JODPNF QSPàMFT JO +BQBO UP DPOTUBOU QSJDFT

Million yen (measured in 2000 constant prices)

6

Labor income 1999

5

Labor income 2004

Labor income 1994

4 Labor income 1989

Consumption 2004 Consumption 1999

Labor income 1984

3

Consumption 1994 Consumption 1989

2

Consumption 1984

1

0 0

5

10

15

20

25

30

35

40

45

50

55

60

65

70

75

80

85

90+

Age

4PVSDF /BUJPOBM 5SBOTGFS "DDPVOUT -FF BOE .BTPO

CFDBVTF JU DPOTJTUT QSJNBSJMZ PG QVCMJDMZ QSPWJEFE IFBMUIDBSF BOE MPOHUFSN DBSF UIFO UIF JNQBDU PO UIF BCJMJUZ PG UIF DPIPSU PG DVSSFOU XPSLFST UP TBWF GPS JUT PXO SFUJSFNFOU NVTU CF UBLFO JOUP BDDPVOU JO JUT QFOTJPO TBWJOH BOE JOWFTUNFOU TUSBUFHZ .PSFPWFS BT MPOH BT GFSUJMJUZ SFNBJOT CFMPX UIF SFQMBDFNFOU SBUF QPQVMBUJPO BHFJOH DPOUJOVFT BOE UIJT FGGFDU JT DPNQPVOEFE GPS FBDI OFX HFOFSBUJPO 'SPN BO JOUFSHFOFSBUJPOBM QFSTQFDUJWF XJUI BO JODSFBTJOH PMEBHF MJBCJMJUZ BOE B TISJOLJOH XPSLGPSDF UIFTF JTTVFT DBO CF BEESFTTFE CZ JNQSPWJOH UIF MFWFM PG TBWJOHT BDDVNVMBUJPO BT XFMM BT UIF JOWFTUNFOU JODPNF PG UIFTF TBWJOHT BTTFU NBOBHFNFOU "OE HJWFO &BTU "TJBhT BMSFBEZ IJHI TBWJOHT SBUFT NPTU QSPHSFTT IBT UP CF NBEF PO UIF BTTFU NBOBHFNFOU TJEF

1FOTJPO BTTFU NBOBHFNFOU NBUUFST CFDBVTF JNQSPWJOH QFOTJPO BTTFU JOWFTUNFOU JODPNF TIPVME CF QJWPUBM UP BDIJFWJOH BEFRVBUF QFOTJPO PVUDPNFT XIJMF NBJOUBJOJOH àTDBM TUBCJMJUZ "TTFU NBOBHFNFOU SFTFBSDI TVHHFTUT UIBU QFOTJPO JOWFTUNFOU QSPCMFNT SFRVJSF TQFDJàD JOWFTUNFOU TPMVUJPOT 4JNQMZ QVU BO JOWFTUNFOU TPMVUJPO BMMPXT GPS UIF PQUJNJTBUJPO PG B HJWFO MPOHUFSN PCKFDUJWF GVODUJPO TVDI BT BDIJFWJOH UBSHFU QPTU SFUJSFNFOU MFWFMT PG SFBM DPOTVNQUJPO PS PG QVSDIBTJOH QPXFS FYQSFTTFE JO SFBM UFSNT

XIJMF SFTQFDUJOH B HJWFO TFU PG DPOTUSBJOUT TVDI BT FYQMJDJU GVOEJOH SBUJPT PS ESBXEPXO MJNJUT



.BZ


*OWFTUNFOU 4PMVUJPOT BSF /FFEFE GPS 1FOTJPO 4BWJOHT JO &BTU "TJB 4DJFOUJàD JOWFTUNFOU NBOBHFNFOU TPMVUJPOT 'PS GVOEFE QFOTJPO TZTUFNT UP EFMJWFS MFWFMT PG XFBMUI JO SFBM UFSN UIBU BSF DPNNFO TVSBUF XJUI QPTUSFUJSFNFOU DPOTVNQUJPO PCKFDUJWFT TDJFOUJàD TPMVUJPOT JEFOUJàFE JO UIF MJUFSBUVSF SFDPNNFOE UIF DPNCJOFE JNQMFNFOUBUJPO PG UISFF JOWFTUNFOU QBSBEJHNT -JBCJMJUZESJWFO JOWFTUNFOU PS -%* MJGFDZDMF JOWFTUNFOU PS -$* BOE SJTL DPOUSPM JOWFTUNFOU PS 3$* BT EFàOFE JO $PDRVFNBT !

!

!

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àOFE CZ UIF SFHVMBUPS 5IJT JT UIF SJTLDPOUSPMMFE JOWFTUJOH 3$* BQQSPBDI

)FODF EFTJHOJOH TDJFOUJàD QFOTJPO TPMVUJPOT JNQMJFT XFMMEFàOFE DPOTVNQUJPO BOE XFBMUI UBSHFU MFWFMT BT XFMM BT B IJHI EFHSFF PG DMBSJUZ BCPVU FYQMJDJU BOE JNQMJDJU TIPSU UFSN DPOTUSBJOUT *O UIJT DPOUFYU UIF SPMF PG UIF SFHVMBUPS JT UP TVQQPSU UIF GPSNVMBUJPO PG BEFRVBUF BOE XFMMEFàOFE JOWFTUNFOU PCKFDUJWFT BOE DPOTUSBJOUT BOE UP DSFBUF JODFOUJWFT GPS UIF NBOBHFNFOU PG GVOEFE QFOTJPO TZTUFNT JO BDDPSEBODF XJUI TDJFOUJàD QSFTDSJQUJPOT *O OVNFSPVT QFOTJPO TZTUFNT MPOHUFSN PCKFDUJWFT BSF JMMEFàOFE BOE TIPSUUFSN DPOTUSBJOUT BSF PGUFO OPU EFàOFE BU BMM /FWFSUIFMFTT UIFTF UXP LFZ EJNFOTJPOT PG BTTFU NBOBHFNFOU SFNBJO JNQMJDJUMZ JO GPSDF JO UIF MPOHSVO UIF DPOTVNQUJPO PG SFUJSFFT OFFET UP CF àOBODFE BOE JO UIF TIPSU SVO SJTL BOE MPTT BWFSTJPO BDU MJLF JNQMJDJU TIPSUUFSN DPOTUSBJOUT PO JOWFTUNFOU DIPJDFT 8JUIPVU XFMMEFTJHOFE MPOHUFSN PCKFD UJWFT UIFSF DBOOPU CF BOZ BTTFUMJBCJMJUZ NBOBHFNFOU "-. BOE XJUIPVU FYQMJDJU TIPSUUFSN DPOTUSBJOUT SJTL CVEHFUT BSF JHOPSFE .PSFPWFS UIF BHFJOH PG B TPDJFUZ JT B OPOMJOFBS BDDFMFSBUJOH QIFOPNFOPO XIJDI NFBOT UIBU UIF MPOHUFSN JT OPU BEFRVBUFMZ UBLFO JOUP BDDPVOU JG BTTFUT BSF OPU NBOBHFE EZOBNJDBMMZ *O &BTU "TJB UIF JNQMFNFOUBUJPO PG TDJFOUJàD JOWFTUNFOU TPMVUJPOT JT QBSUJDV MBSMZ JNQPSUBOU CFDBVTF PG UIF QBDF BOE NBHOJUVEF PG EFNPHSBQIJD DIBOHF *G "O &%)&$3JTL *OTUJUVUF 1VCMJDBUJPO


.BZ


*OWFTUNFOU 4PMVUJPOT BSF /FFEFE GPS 1FOTJPO 4BWJOHT JO &BTU "TJB BEFRVBUF TPMVUJPOT BSF OPU QVU JO QMBDF EVSJOH UIF OFYU EFDBEF UIFSF XJMM CF MJUUMF UJNF UP BEBQU BOE BWPJE QPUFOUJBMMZ EJTBTUSPVT PVUDPNFT

&BDI PG UIF àWF DPVOUSJFT FYBNJOFE JO UIJT TUVEZ JT BMTP UIF PCKFDU PG BO BOOFY QSFTFOUJOH B TVNNBSZ QJDUVSF PG UIF QFOTJPO TZTUFN BU UIF FOE PG UIJT QBQFS

5IF $IBMMFOHFT PG EFTJHOJOH QFOTJPO TPMVUJPOT GPS &BTU "TJB *O UIF SFTU PG UIJT QBQFS XF SFUVSO UP UIF JTTVFT IJHIMJHIUFE BCPWF BOE FYBNJOF UIF DVSSFOU NBOBHFNFOU PG &BTU "TJBhT GVOEFE QFOTJPO TDIFNFT 4FDUJPO EJTDVTTFT UIF NBKPS NBDSPMFWFM JTTVFT BGGFDUJOH GVOEFE QFOTJPO TDIFNFT JO &BTU "TJB *U IJHIMJHIUT UIF DVSSFOU BCTFODF PG JOUFS NFEJBUJPO XIJDI DIBSBDUFSJTFT QFOTJPO TBWJOHT JO UIF SFHJPO BOE TVHHFTUT UXP NBKPS DIBMMFOHFT GPS UIF GVUVSF PG QFOTJPO BTTFU NBOBHFNFOU JO &BTU "TJB BO BTTFU BMMPDBUJPO DIBMMFOHF SFTVMUJOH JO MBSHF QBSU GSPN UIF TQFDJàD FDPOPNJD EFWFMPQNFOU NPEFM PG UIF SFHJPO BOE B SFHVMBUPSZ DIBMMFOHF UP JNQSPWF UIF EFTJHO PG FYJTUJOH QFOTJPO TZTUFNT BOE TUJNVMBUF BDDVNV MBUJPO JO EFEJDBUFE QFOTJPO BTTFUT /FYU XF SFWJFX BOE BTTFTT UIF UISFF DBUFHPSJFT PG GVOEFE QFOTJPO TDIFNFT JO FYJTUFODF JO UIF SFHJPO 4FDUJPO EJTDVTTFT UIF MBSHFTU BOE NPTU TJHOJàDBOU QPPM PG QFOTJPO BTTFUT QFOTJPO SFTFSWF GVOET 4FDUJPO SFWJFXT UIF SPMF BOE EFTJHO PG DPSQPSBUF BOE PDDVQBUJPOBM EFàOFECFOFàU QMBOT 'JOBMMZ TFDUJPO FYBNJOFT UIF EFWFMPQNFOU PG EFàOFE DPOUSJCVUJPO TDIFNFT BOE IPX UIFZ NBZ CF JNQSPWFE 4FDUJPO DPODMVEFT



.BZ




.BZ



*O UIJT TFDUJPO XF IJHIMJHIU UIF NBKPS NBDSPMFWFM JTTVFT BGGFDUJOH GVOEFE QFOTJPO TDIFNFT JO &BTU "TJB 'JSTU TFDUJPO EJTDVTTFT UIF BQQBSFOU QV[[MF DIBSBDUFSJTJOH QFOTJPO TBWJOHT JO UIF SFHJPO JF UIFJS TNBMM TJ[F SFMBUJWF UP BHHSFHBUF TBWJOHT *O TFDUJPO XF SFWJFX UIF EFNPHSBQIJD MJUFSBUVSF BOE IJHIMJHIU UIF JNQBDU PG QPQVMBUJPO BHFJOH PO UIF BHHSFHBUF QPTU SFUJSFNFOU MJBCJMJUZ UP XIJDI TFWFSBM HFOFSB UJPOT BSF FYQPTFE 4FDUJPO GPDVTFT PO UIF OFFE UP JODSFBTF JOWFTUNFOU JODPNF UP NFFU MPOHUFSN DPOTVNQUJPO PCKFDUJWFT XIJMF QSFTFSWJOH àTDBM TUBCJMJUZ 'JOBMMZ TFDUJPOT BOE IJHIMJHIU UIF UXP NBKPS DIBMMFOHFT GBDFE CZ &BTU "TJBhT QFOTJPO TZTUFNT BO JOWFTUNFOU DIBMMFOHF BOE B SFHVMBUJPO DIBMMFOHF 8F CSJFáZ EJTDVTT UIF JOWFTUNFOU DIBMMFOHF DSFBUFE CZ UIF EFWFMPQNFOU USBKFDUPSZ BOE QPMJDZ DIPJDFT UIBU DIBSBDUFSJTF UIF TPDBMMFE h"TJBO EFWFMPQNFOU NPEFMh 5IF SFTU PG UIJT QBQFS JT EFEJDBUFE UP EJTDVTTJOH UIF SFHVMBUJPO DIBMMFOHF UIBU &BTU "TJBhT HPWFSONFOUT TUJMM IBWF UP BEESFTT FOTVSJOH UIBU QFOTJPO TBWJOHT DBO CF DIBOOFMFE UPXBSET BEFRVBUF QFOTJPO JOWFTUNFOU TPMVUJPOT

TNPPUI UIFJS DPOTVNQUJPO QSPàMF CZ WBSZJOH QFSJPET PG CPSSPXJOH TBWJOHT BOE EJTTBWJOHT EVSJOH UIFJS MJGF EFNPHSBQIJD USBOTJUJPOT TIPVME DPJODJEF XJUI BO JOJUJBM JODSFBTF JO BHHSFHBUF TBWJOHT BT UIF XPSLGPSDF QSFQBSFT UP à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àSN UIJT USFOE BOE UIF SPMF PG UIF EFNPHSBQIJD USBOTJUJPO JO FYQMBJOJOH TBWJOHT EZOBNJDT 4FF BMTP $PMF BOE 8SJHIU GPS BO FNQJSJDBM UFTU DPOàSNJOH UIF JNQBDU PG UIF MJGFDZDMF IZQPUIFTJT PO TBWJOH SBUFT JO &BTU "TJB +BQBOhT TBWJOHT IBWF EFDSFBTFE GSPN UIFJS QFBL BU PG (%1 JO UIF T CFDBVTF JU JT NPSF BEWBODFE JO JUT EFNPHSBQIJD USBOTJUJPO BOE IBT FOUFSFE B QFSJPE PG MPXFS TBWJOHT BU UIF BHHSFHBUF MFWFM /FWFSUIFMFTT +BQBOFTF TBWJOH SBUFT SFNBJO IJHI CZ HMPCBM TUBOEBSET

5IF BCTFODF PG JOUFSNFEJBUJPO 6OEFS UIF DMBTTJD MJGFDZDMF IZQPUIFTJT BDDPSEJOH UP XIJDI JOEJWJEVBMT BJN UP

$IJOBhT QBSUJDVMBSMZ IJHI TBWJOHT SBUF JT QBSUMZ FYQMBJOFE CZ UIF TJ[F PG QVCMJD TFDUPS



.BZ



TBWJOHT BT TIPXO JO àHVSF CVU $IJOFTF IPVTFIPME TBWJOHT BMPOF SFQSFTFOU B MBSHFS TIBSF PG (%1 UIBO UPUBM EPNFTUJD TBWJOHT JO IJHI JODPNF DPVOUSJFT BOE NPSF UIBO UXJDF UPUBM EPNFTUJD TBWJOHT JO MPX JODPNF DPVOUSJFT *O )POH ,POH BOE ,PSFB HSPTT EPNFTUJD TBWJOHT FYDFFE PG (%1 XIJDI JT BMTP IJHI CZ HMPCBM TUBOEBSET FTQFDJBMMZ XIFO DPOUSPMMJOH GPS JODPNF MFWFMT CVU UIFZ BSF NPTUMZ IFME JO DBTI /FYU B WFSZ TJHOJàDBOU QSPQPSUJPO PG IPVTF IPMETh àOBODJBM XFBMUI JO &BTU "TJB JT IFME JO DBTI PS WFSZ MJRVJE BTTFUT $BTI IPBSEJOH JT B QBSUJDVMBSMZ TUSJLJOH GFBUVSF PG UIF SFHJPO 'PS FYBNQMF EPNFTUJD TBWJOHT JO $IJOB BSF NPTUMZ IFME JO CBOL EFQPTJUT BOE DBTI BT TIPXO JO àHVSF 0OF JOUFSQSFUBUJPO JT UIBU $IJOFTF IPVTF IPMET UFOE UP IPBSE DBTI CFDBVTF UIFZ àOE UIFNTFMWFT JO B DBTI FDPOPNZ XJUI MJUUMF BMUFSOBUJWFT UP TBWF MPX EFWFMPQNFOU PG UIF àOBODJBM TZTUFN BOE QPUFOUJBM MJRVJEJUZ JTTVFT JO UIF BCTFODF PG B XFMMEFWFMPQFE TPDJBM TBGFUZ OFU #VU JO PUIFS QBSUT PG "TJB IPVTFIPMET IPME KVTU BT NVDI DBTI JO B àOBODJBMMZ BEWBODFE FDPOPNZ XJUI BO VSCBOJTFE BOE FEVDBUFE QPQVMBUJPO MJLF +BQBO UIF #BOL PG +BQBO FTUJNBUFT UIBU IPVTFIPMET UFOE UP IPME TJHOJàDBOU BNPVOUT PG DBTI 4FLJOF BOE 0UIFST *OEFFE +BQBOFTF IPVTFIPMETh àOBODJBM BTTFUT DPOTJTU PG PG MJRVJE BTTFUT MJLF EFQPTJUT BOE DBTI BT àHVSF

JMMVTUSBUFT *O DPNQBSJTPO QFOTJPO BOE MJGF JOTVSBODF TBWJOHT SFQSFTFOU PG IPVTF IPMETh BTTFUT *O UIF SFTU PG &BTU "TJB UIF TBNF TUBCMF QBUUFSO JO UIF àOBODJBM BTTFU IPMEJOHT PG IPVTFIPMET DBO CF PCTFSWFE 'JHVSFT BOE EFUBJM UIF àOBODJBM BTTFU IPMEJOHT PG UIF IPVTFIPME TFDUPS JO ,PSFB BOE 5BJXBO SFTQFDUJWFMZ EVSJOH UIF QSFWJPVT EFDBEF $BTI BOE FRVJWBMFOU IPMEJOHT JO &BTU "TJBhT IPVTFIPME TFDUPS SBSFMZ GBMM CFMPX XIJMF UIF TVN UPUBM PG MJGF JOTVSBODF BOE QFOTJPO GVOET WBSJFT CFUXFFO BOE #Z XBZ PG DPNQBSJTPO 64 EBUB DPMMFDUFE CZ UIF 'FEFSBM 3FTFSWF #PBSE OPU TIPXO IFSF JOEJDBUFT UIBU "NFSJDBO IPVTFIPMET LFFQ PG UIFJS àOBODJBM BTTFUT JO DBTI BOE QFOTJPO BTTFUT BSF TNBMM 5IF SFTFSWFT PG QVCMJD QFOTJPO TZTUFNT JO +BQBO ,PSFB $IJOB BOE 5BJXBO SFQSFTFOU UIF MBSHFTU QPPM PG SFUJSFNFOUSFMBUFE BTTFUT JO &BTU "TJB 8JUI OP QBZBTZPVHP 1":(

QVCMJD QFOTJPOT )POH ,POH JT B OPUBCMF FYDFQUJPO 5IFTF MBSHF QVCMJD QFOTJPO TVSQMVTFT SFTVMUFE GSPN UIF SBQJE QBDF PG EFNPHSBQIJD BOE FDPOPNJD USBOTJUJPOT *O &BTU "TJB JOGBOU NPSUBMJUZ SBUFT ESPQQFE FYUSFNFMZ GBTU JO UIF T BOE UIF FOTVJOH HSPXUI PG CJSUI SBUFT MFE ZFBST MBUFS UP B DPOUJOVPVT JODSFBTF PG UIF QSPQPSUJPO PG XPSLFST BT B TIBSF PG UIF UPUBM QPQVMBUJPO "U UIBU TUBHF UIF DPTU PG QVCMJD QFOTJPOT XBT TUJMM MPX CFDBVTF UIF QSPQPSUJPO PG FMEFSMZ EFQFOEFOUT XBT TNBMM &YDFTT DPOUSJCVUJPOT DSFBUFE TVSQMVTFT "O &%)&$3JTL *OTUJUVUF 1VCMJDBUJPO


.BZ



'JHVSF (SPTT EPNFTUJD TBWJOHT BT B TIBSF PG (%1

60

50

%GDP

40

30

20

High income countries

Low income countries

China

Japan

Korea

Singapore

2011

2008

2005

2002

1999

1996

1993

1990

1987

1984

1981

1978

1975

1972

1969

0

1966

10

Hong Kong

4PVSDF 8PSME #BOL %FWFMPQNFOU *OEJDBUPST

'JHVSF (SPTT EPNFTUJD TBWJOHT CZ TFDUPS JO $IJOB BT B TIBSF PG (%1

0.6

0.5

0.4

0.3

0.2

0.1

Government savingds

Non-Financial sector savings

Household savings

07 20

06

05

20

04

Financial sector savings

20

20

03

20

01

02

20

20

00

20

99

98

19

19

97 19

96

95

19

19

94

19

93

19

19

92

0

4PVSDF $&*$



.BZ



'JHVSF )PVTFIPME àOBODJBM BTTFUT JO +BQBO 100% 90% 80% 70% 60% 50% 40% 30% 20% 10%

12 /1 4/ 997 1 8/ 998 12 199 /1 8 4/ 998 1 8 99 12/1999 /1 9 4/ 999 2 8 00 12 /2000 /2 0 4/ 000 2 8/ 001 12 200 /2 1 4/ 001 2 8/ 002 12 200 /2 2 4/ 002 2 8 00 12/2003 /2 3 4/ 003 2 8 00 12 /2004 /2 4 4/ 004 2 8 00 12 /2005 /2 5 4/ 005 2 8/ 006 12 200 /2 6 4/ 006 2 8 00 12/2007 /2 7 4/ 007 2 8 00 12/2008 /2 8 4/ 008 2 8 00 12/2009 /2 9 4/ 009 2 8/ 010 12 201 /2 0 4/ 010 2 8/ 011 12 201 /2 1 01 1

0%

Currency & deposits

Insurance and pensions

Shares and equites

Accounts payable/receivable Others

Bonds and mutual funds

4PVSDF #BOL PG +BQBO áPX PG GVOET EBUB

'JHVSF )PVTFIPME àOBODJBM BTTFUT JO ,PSFB

100% 90% 80% 70% 60% 50% 40% 30% 20%

Currency & Deposits

Insurance & Pensions

Bonds

Shares & Other Equities

12/2012

6/2012

12/2011

6/2011

12/2010

6/2010

12/2009

6/2009

12/2008

6/2008

12/2007

6/2007

12/2006

6/2006

12/2005

6/2005

12/2004

6/2004

12/2003

6/2003

0%

12/2002

10%

Other

4PVSDF #BOL PG ,PSFB áPX PG GVOET EBUB



.BZ



'JHVSF )PVTFIPME àOBODJBM BTTFUT JO 5BJXBO

100% 90% 80% 70% 60% 50% 40% 30% 20%

Currency & Deposits

Insurance & Pensions

Bonds

Shares & Other Equities

Mutual funds

Jan-11

Jan-10

Jan-09

Jan-08

Jan-07

Jan-06

Jan-05

Jan-04

Jan-03

Jan-02

Jan-01

0%

Jan-00

10%

Other

4PVSDF $FOUSBM #BOL PG UIF 3FQVCMJD PG $IJOB áPX PG GVOET EBUB

'JHVSF 6SCBO IPVTFIPME àOBODJBM BTTFUT JO $IJOB

Cash 18%

Other bank financial products 3% Mutual funds 4%

Stocks 16%

Bank savings 59%

4PVSDF $IJOFTF )PVTFIPME 'JOBODF 4VSWFZ (BO



.BZ



+BQBOhT TVSQMVT QFBLFE JO CVU $IJOB ,PSFB BOE 5BJXBO BSF TUJMM BDDVNVMBUJOH SFTFSWFT 5IVT EFTQJUF CFJOH 1":( TZTUFNT XIJDI BSF OPU EFTJHOFE UP CF GVOEFE FYJTUJOH QVCMJD QFOTJPO TZTUFNT JO &BTU "TJB CFOFàU GSPN UIF PQQPSUVOJUZ UP JOWFTU BOE NBOBHF TJHOJàDBOU SFTFSWFT UIBU DBO CF VTFE UP IFMQ NJOJNJTF UIF JNQBDU PG BHFJOH PO UIF àOBODJBM TVTUBJOBCJMJUZ PG QVCMJD QFOTJPOT 8IFSF UIFZ FYJTU UIFTF SFTFSWFT DBO CF MBSHF BOE SFQSFTFOU B TJHOJàDBOU GSBDUJPO PG (%1 BT TIPXO JO àHVSF )PXFWFS QFOTJPO SFTFSWFT EP OPU DPOTUJUVUF UIF CVML PG QFOTJPO BTTFUT JO UIF SFHJPO CFDBVTF UIFZ BSF VOVTBMMZ MBSHF CVU CFDBVTF PUIFS BDDVNVMBUJPO DIBOOFMT IBWF OPU CFFO DSFBUFE PS IBWF GBJMFE UP GVODUJPO 5IVT QSJWBUF QFOTJPO BTTFUT SFNBJO TNBMM *OEFFE JU JT HFOFSBMMZ GPVOE UIBU NBOEBUPSZ QVCMJD QFOTJPO DPOUSJCVUJPOT IBWF DSPXEFE PVU QSJWBUF PS TVQQMFNFOUBSZ TDIFNFT BOE MJUUMF PS OP BDDVNVMBUJPO IBT IBQQFOFE JO DPSQPSBUF PS JOEJWJEVBM QSJWBUF QMBOT JO UIFTF DPVOUSJFT "T UIF FYBNQMF PG +BQBO HPJOH CBDL TFWFSBM EFDBEFT TVHHFTUT BT MPOH BT TVQQMFNFOUBSZ QFOTJPO TDIFNFT SFNBJO WPMVOUBSZ GPS UIF FNQMPZFS UIFZ UFOE UP FYJTU POMZ JO MBSHF àSNT BOE BTTFU HSPXUI TPPO UBJMT PGG 5IF EFDJTJPO UP NBLF TVQQMFNFOUBSZ QFOTJPO TDIFNFT NBOEBUPSZ JO ,PSFB JO JT BO BUUFNQU UP BEESFTT UIJT JTTVF

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àHVSF "HBJO )POH ,POH XJUI B NBOEBUPSZ %$ TZTUFN SFNBJOT UIF FYDFQUJPO XJUI QSJWBUF BTTFUT DPSSFTQPOEJOH UP POF UIJSE PG (%1 5IVT &BTU "TJBhT IPVTFIPMET DMFBSMZ IBWF JODFOUJWFT UP TBWF CVU NPTUMZ OPU JO EFEJDBUFE QFOTJPO TDIFNFT *U GPMMPXT GSPN UIJT BCTFODF PG JOUFSNFEJBUJPO PG TIPSU UFSN IPVTFIPME TBWJOHT JOUP MPOHUFSN SFUJSFNFOU JODPNF TPMVUJPOT UIBU GVUVSF SFUJSFFT GBDF B TVCTUBOUJBM SJTL PG JOBEF RVBUF SFUJSFNFOU JODPNF BOE FWFO QPWFSUZ JO PME BHF XIJMF UIF DVSSFOU XPSLGPSDF BOE UIF OFYU HFOFSBUJPO GBDF B OPO OFHMJHJCMF SJTL PG JODSFBTJOHMZ IBWJOH UP àOBODF UIF "O &%)&$3JTL *OTUJUVUF 1VCMJDBUJPO


.BZ



'JHVSF &BTU "TJBh QFOTJPO BTTFUT BT B TIBSF PG (%1

HK China Taiwan

DB DC

Korea Japan 0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

AUM as % GDP, 2011

4PVSDF BVUIPSTh DPNQVUBUJPOT 'JHVSF &BTU "TJBhT QFOTJPO BTTFUT CZ NBOBHFNFOU SFTQPOTJCJMJUZ

HK China Public

Taiwan

Private Korea Japan 0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

4PVSDF BVUIPSTh DPNQVUBUJPOT

DPOTVNQUJPO PG SFUJSFFT UIPVHI JODSFBTJOH QVCMJD BOE QSJWBUF USBOTGFST

5IF EFNPHSBQIJD DIBMMFOHF 5IF BCTFODF PG JOUFSNFEJBUJPO EJTDVTTFE BCPWF JF UIF GBDU UIBU NPTU JOEJWJEVBM TBWJOHT JO &BTU "TJB BSF OPU JOWFTUFE JO EFEJDBUFE QFOTJPO GVOET PS TUSBUFHJFT JT BMM UIF NPSF QSPCMFNBUJD XIFO UIF OFFE UP àOBODF PME BHF DPOTVNQUJPO JODSFBTFT DPOUJOVPVTMZ 3FDFOU SFTFBSDI TIPXT UIBU BT QPQVMB UJPOT BHF BOE FDPOPNJFT EFWFMPQ UIF UPUBM DPOTVNQUJPO PG SFUJSFFT FTQFDJBMMZ UIFJS DPOTVNQUJPO PG IFBMUIDBSF HSPXT

WFSZ SBQJEMZ PWFS BOE BCPWF DPOTVNQUJPO MFWFMT PCTFSWFE EVSJOH UIFJS XPSLJOH MJGF *G IFBMUIDBSF JT NPTUMZ QVCMJD BOE àOBODFE CZ UBYJOH DVSSFOU XPSLFST QPQVMBUJPO BHFJOH DBO UIVT JNQBJS UIF BCJMJUZ PG UIF OFYU HFOFSBUJPO UP TBWF GPS JUT PXO SFUJSFNFOU 5IVT XIJMF BDIJFWJOH QPTUSFUJSFNFOU DPOTVNQUJPO PCKFDUJWFT JT UIF àSTU PSEFS QSPCMFN JO QFOTJPO TPMVUJPO EFTJHO QPQVMBUJPO BHFJOH DSFBUFT B EZOBNJD DPOTVNQUJPO PCKFDUJWF BU CPUI BHHSFHBUF BOE QFS DBQJUB MFWFMT BDSPTT TFWFSBM HFOFS BUJPOT 5IJT MJBCJMJUZ QSPDFTT JT UZQJDBMMZ OPU UBLFO JOUP BDDPVOU JO QVCMJD QPMJDZ BOE JO UIF NBOBHFNFOU PG QFOTJPO TBWJOHT



.BZ



JODMVEJOH QVCMJD QFOTJPO PS TPDJBM TFDVSJUZ SFTFSWFT /FYU XF SFWJFX UIF JNQBDU PG EFNPHSBQIJD DIBOHF PO QPQVMBUJPO TUSVDUVSF BOE TBWJOHT TFDUJPO

UIF DPOTFRVFOUJBM SJTF PG MJGFDZDMF EFàDJUT TFDUJPO BOE UIF JNQMJDBUJPOT PG UIFTF USFOET GSPN UIF QFSTQFDUJWF PG UIF NBOBHFNFOU PG QFOTJPO TBWJOHT TFDUJPO

0MTIBOTLZ FU BM BSHVF UIBU JODSFBTJOH PCFTJUZ XJMM IBWF UIJT FGGFDU JO /PSUI "NFSJDB

4JODF UIF T BU MFBTU EFNPHSBQIJD TUVEJFT IBWF CFFO BCMF UP SFMZ PO SPCVTU NPEFMT PG QPQVMBUJPO DIBOHF UIBU IBWF POMZ CFFO DPOàSNFE CZ NPSF SFDFOU EBUB 5IF EFNPHSBQIJD USBOTJUJPO PCTFSWFE JO BEWBODFE BOE EFWFMPQJOH FDPOPNJFT JT TP TZTUFNBUJD BOE SFHVMBS UIBU JU DBO CF USFBUFE BT B NBUUFS PG RVBTJ DFSUBJOUZ TFF .BTPO FU BM GPS B SFWJFX

1PQVMBUJPO BHFJOH JO &BTU "TJB &BTU "TJBhT EFNPHSBQIJD USFOET BSF XFMM EPDVNFOUFE BO JOJUJBM ESPQ PG JOGBOU NPSUBMJUZ SBUFT BGUFS 8PSME 8BS ** MFE UP B CBCZ CPPN XIJDI XBT NPSF PS MFTT SBQJEMZ GPMMPXFE CZ B TUFFQ GBMM JO GFSUJMJUZ BOE JO UIF BCTFODF PG TVCTUBOUJBM JNNJHSBUJPO PG XPSLJOH BHF JOEJWJEVBMT B HSBEVBM TIJGU PG UIF BHF EJTUSJCVUJPO PG QPQVMBUJPOT UP UIF SJHIU TFF -FF BOE .BTPO GPS B SFWJFX "WFSBHF BHF JODSFBTFT CVU UIF TIBQF PG UIF BHF EJTUSJCVUJPO BMTP TIJGUT BOE UIF SFMBUJWF TIBSF PG PMEFS JOEJWJEVBMT SJTFT BT àHVSFT BOE JMMVTUSBUF GPS +BQBO BOE $IJOB 5IJT QIFOPNFOPO JT LOPXO BT QPQVMBUJPO BHFJOH "T MPOH BT QPQVMBUJPOT EP OPU BHF SFUJSFNFOU JT VOQSPCMFNBUJD *O IVOUFS HBUIFSFS TPDJFUJFT MJGF FYQFDUBODZ JT TIPSU BOE UIF PMEFTU NFNCFST PG TPDJFUZ DBO FYQFDU UP CFOFàU GSPN GBNJMJBM BOE DPNNVOJUZ TVQQPSU 8JUI IVNBO BOE FDPOPNJD EFWFMPQNFOU MPOHFWJUZ JODSFBTFT BT EPFT UIF OVNCFS PG FMEFSMZ XIJMF JOEVT USJBMJTBUJPO BOE VSCBOJTBUJPO UFOE UP TUSBJO PS NJOJNJTF GBNJMJBM TVQQPSU )FODF UIF

QIFOPNFOPO UIBU MFE UP EFWFMPQNFOU BOE XFBMUI DSFBUJPO BMTP DSFBUFT UIF QSPCMFN PG SFUJSFNFOU 8IJMF JU JT NPSF GSFRVFOUMZ EJTDVTTFE UIBO GFSUJMJUZ JTTVFT JO UIF QFOTJPO MJUFSBUVSF MPOHFWJUZ JT POMZ BO BHHSBWBUJOH GBDUPS 8IFUIFS MPOHFWJUZ DPOUJOVFT UP JODSFBTF MJOFBSMZ GPS B MPOH UJNF TFF GPS FYBNQMF 0FQQFO BOE 7BVQFM PS BWFSBHF MJGF FYQFDUBODZ BGUFS SFUJSFNFOU FWFOUVBMMZ UBJMT PGG BT MPOH BT GFSUJMJUZ BOE JNNJHSBUJPO BSF MPX QPQVMBUJPO BHFJOH DPOUJOVFT JOEFà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hT QPQVMBUJPO QFBLFE JO BOE JT GPSFDBTU UP SFUVSO UP JUT FBSMZT MFWFM CZ -JLFXJTF UIF QPQVMBUJPO PG 5BJXBO JT FYQFDUFE UP QFBL JO BOE UP IBWF SFUVSOFE UP JUT MFWFM CZ )POH "O &%)&$3JTL *OTUJUVUF 1VCMJDBUJPO


.BZ



'JHVSF 1PQVMBUJPO EJTUSJCVUJPO JO +BQBO JO BOE

Japan 0.1 0.09 0.08 0.07 0.06 1980

0.05

2000 0.04

2020

0.03 0.02 0.01 0

Aged Aged Aged Aged Aged Aged Aged Aged Aged Aged Aged Aged Aged Aged Aged Aged Aged 0-4 5-9 10-14 15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65-69 70-74 75-79 80+

4PVSDF 6/ 4UBUJTUJDT

'JHVSF 1PQVMBUJPO EJTUSJCVUJPO JO $IJOB JO BOE

China 0.14

0.12

0.1

0.08 1980 2000

0.06

2020 0.04

0.02

0

Aged Aged Aged Aged Aged Aged Aged Aged Aged Aged Aged Aged Aged Aged Aged Aged Aged 0-4 5-9 10-14 15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65-69 70-74 75-79 80+

4PVSDF 6/ 4UBUJTUJDT



.BZ



,POHhT QPQVMBUJPO XJMM QFBL JO BOE IBWF SFUVSOFE UP JUT NJET MFWFM CZ 5IF QPQVMBUJPO PG ,PSFB QFBLT JO BOE JT FYQFDUFE UP IBWF SFUVSOFE UP JUT MFWFM JO 'JOBMMZ UIF QPQVMBUJPO PG $IJOB JT FYQFDUFE UP QFBL JO BOE CZ UP IBWF EFDSFBTFE CBDL UP JUT MFWFM 'SPN MPX GFSUJMJUZ UP IJHI EFQFOEFODZ $PBMF BOE )PPWFS DSFBUFE UIF OPUJPO PG zEFQFOEFODZ SBUFh JO B DPOUFYU XIFSF UIF CVSEFO PG B MBSHF ZPVOH QPQVMBUJPO PO HSPXUI XBT UIF QSJNBSZ DPODFSO BHBJOTU B CBDLESPQ PG MPX TBWJOHT MPX JOWFTUNFOU BOE TMPX IVNBO DBQJUBM EFWFMPQNFOU *OEFFE EFQFOEFODZ SBUJPT XIJDI SFQSFTFOU UIF SFMBUJWF XFJHIU PG UIF JOBDUJWF TIBSF PG UIF QPQVMBUJPO CFMPX BOE BCPWF UP UIF BDUJWF TIBSF JODSFBTFE JO &BTU "TJB JO UIF T BOE T EVSJOH UIF àSTU QIBTF PG UIF EFNPHSBQIJD USBOTJUJPO +BQBO BMTP FYQFSJFODFE B TPDBMMFE CBCZ CPPN zFDIPh JO UIF T 'SPN SFMBUJWFMZ IJHI MFWFMT BGUFS 8PSME 8BS ** CJSUI SBUFT IBWF CFFO GBMMJOH DPOUJOVPVTMZ MFBEJOH UP MPXFS EFQFOEFODZ SBUJPT BT UIF CVML PG UIF QPQVMBUJPO CFDBNF QBSU PG UIF XPSL GPSDF %FTQJUF DPOUJOVPVTMZ MPXFS CJSUI SBUFT BOE JODSFBTJOH EFBUI SBUFT ESJWFO CZ UIF MBSHFS SFMBUJWF TJ[F PG UIF PMEFS TFHNFOU PG TPDJFUZ UIF FGGFDU PG BHFJOH MFBET UP B SFWFSTBM PG UIF USFOE JO UIF EFQFOEFODZ SBUJP +BQBO MFBET UIJT DIBOHF BOE BMTP QSFàHVSFT DIBOHF JO PUIFS &BTU "TJBO DPVOUSJFT *U JT UXFOUZ ZFBST BIFBE DPNQBSFE UP UIF SFTU PG &BTU "TJB *U FOUFSFE UIF BHFJOH QIBTF PG

JUT EFNPHSBQIJD USBOTJUJPO JO UIF MBUF T XIFSFBT UIF SFTU PG "TJB JT FOUFSJOH JU EVSJOH UIF FBSMZ T *O +BQBOhT EFQFO EFODZ SBUJP CPUUPNFE PVU BOE JT FYQFDUFE UP IBWF SFUVSOFE UP JUT T FRVJWBMFOU CZ UIJT UJNF CFDBVTF PG UIF TIBSF PG UIF QPQVMBUJPO BHFE 5IF EFQFOEFODZ SBUJPT PG PUIFS &BTU "TJBO DPVOUSJFT GPMMPX UIF TBNF USFOE ZFBST MBUFS )POH ,POHhT EFQFOEFODZ SBUJP SFWFSTFT JUT DPVSTF JO $IJOBhT JO ,PSFBhT JO BOE 5BJXBOhT JO 'JHVSF QMPUT &BTU "TJBhT EFQFOEFODZ SBUJPT BHBJOTU (%1 QFS DBQJUB BU QVSDIBTJOH QPXFS QBSJUZ BOE JO DPOTUBOU 64% 5IF USFOE UPXBSET IJHIFS EFQFOEFODZ SBUJPT JT B GVODUJPO PG FBDI DPVOUSZhT EFNPHSBQIJD BOE FDPOPNJD USBKFDUPSZ &BTU "TJBhT EFQFO EFODZ SBUJPT SFWFSTF UIFJS DPVSTF CFUXFFO 64% BOE 64% PG (%1 QFS DBQJUB FYDFQU JO $IJOBhT DBTF XIFSF EFQFO EFODZ TUBSUFE UP SJTF BT TPPO BT (1% QFS DBQJUB SFBDIFE 64% IJHIMJHIUJOH UIF TQFDJàD DIBMMFOHF PG àOBODJOH EFQFO EFODZ JO UIJT DPVOUSZ TJODF UIF BCJMJUZ PG JOEJWJEVBMT UP TBWF BOE DPOUSJCVUF UP B QFOTJPO BOE TPDJBM TZTUFN JT BMM UIF NPSF MJNJUFE $PVOUSJFT UIBU DBO BDDPNNPEBUF TPNF JNNJHSBUJPO MJLF )POH ,POH PS 5BJXBO DBO JODSFBTF UIF TJ[F PG UIFJS XPSLGPSDF CZ QSPNPUJOH UIF SFTFUUMFNFOU PG GPSFJHO MBCPVS UP NBOBHF UIFJS EFNPHSBQIJD QSFEJDBNFOU )PXFWFS TVDI JNNJHSBUJPO QPMJDJFT DBO CF DPOUSPWFSTJBM *O DPVOUSJFT MJLF +BQBO ,PSFB BOE $IJOB BSF TUSVDUVSBMMZ JODBQBCMF PG SFDFJWJOH B MBSHF OFU JOáPX PG NJHSBOUT POHPJOH BOE BDDFMFSBUJOH "O &%)&$3JTL *OTUJUVUF 1VCMJDBUJPO


.BZ



'JHVSF 5PUBM QPQVMBUJPO USBKFDUPSJFT JO &BTU "TJB

3.90

3.40

2.90

2.40

1.90

1.40

19 1950 19 52 1954 1956 19 58 1960 19 62 1964 1966 19 68 1970 19 72 1974 1976 19 78 1980 19 82 1984 1986 19 88 1990 19 92 1994 1996 20 98 2000 20 02 2004 2006 20 08 2010 20 12 2014 2016 20 18 2020 20 22 2024 2026 20 28 2030 20 32 2034 2036 20 38 2040 20 42 2044 2046 20 48 50

0.90

Hong Kong

Japan

China

Taiwan

Korea

4PVSDF 6/ 4UBUJTUJDT BVUIPSTh DPNQVUBUJPOT

'JHVSF %FQFOEFODZ SBUJPT BOE (%1 QFS DBQJUB DPOTUBOU 64% BU QVSDIBTJOH QPXFS QBSJUZ 75

70

Dependency ratio 1977-2020

65

60

55

50

45

40

35

30

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

USD at PPP China

Hong Kong, China

Japan

South Korea

Taiwan

Singapore

4PVSDF 8PSME #BOL 6/ 4UBUJTUJDT BVUIPSTh DPNQVUBUJPOT



.BZ



QPQVMBUJPO BHFJOH DSFBUFT B NVDI NPSF VSHFOU BOE VOBWPJEBCMF QSPCMFN 5PHFUIFS UIFTF DPVOUSJFT SFQSFTFOUFE PG &BTU "TJBhT (%1 BOE PG JUT QPQVMBUJPO JO 5IF SFWFSTBM PG UIF àSTU EFNPHSBQIJD EJWJEFOE %VSJOH B EFNPHSBQIJD USBOTJUJPO UIF XPSLGPSDF àSTU HSPXT GBTUFS UIBO UIF UPUBM QPQVMBUJPO SFTVMUJOH JO B NFDIBOJDBM HSPXUI PG PVUQVU QFS DBQJUB FWFO JG MBCPVS QSPEVDUJWJUZ EPFT OPU JODSFBTF 5IJT JT LOPXO BT UIF àSTU EFNPHSBQIJD EJWJEFOE TFF -FF BOE .BTPO GPS B EJTDVTTJPO 5IF àSTU EFNPHSBQIJD EJWJEFOE BSJTFT CFDBVTF UIF QPQVMBUJPO JT DPODFOUSBUFE JO BHFT EVSJOH XIJDI QSPEVDUJPO FYDFFET DPOTVNQUJPO BOE UIF HSPXUI SBUF PG UIF OVNCFS PG FGGFDUJWF QSPEVDFST FYDFFET UIBU PG UIF OVNCFS PG FGGFDUJWF DPOTVNFST 'PS UIFTF SFBTPOT UIJT FGGFDU DBO POMZ CF USBOTJUPSZ BOE FWFOUVBMMZ UVSOT OFHBUJWF JF DPOUJOVFE QPQVMBUJPO BHFJOH MFBET UP UIF SFWFSTBM PG UIF àSTU EFNPHSBQIJD EJWJEFOE "T UIF EFNPHSBQIJD USBOTJUJPO VOGPMET UIF XPSLGPSDF TUPQT HSPXJOH BOE FWFOUVBMMZ CFHJOT UP TISJOL UIF SBUJP PG DPOTVNFST UP QSPEVDFST SFWFSTFT JUT USFOE BOE UIF EFNPHSBQIJD EJWJEFOE CFDPNFT B ESBH PO PVUQVU HSPXUI FBDI XPSLFS IBT UP CF NPSF QSPEVDUJWF UP HFOFSBUF UIF TBNF BNPVOU PG PVUQVU QFS DBQJUB 'VSUIFSNPSF UIJT zQVSF EFNPHSBQIJD FGGFDUh JT EJGàDVMU UP PGGTFU 0OF TFU PG QPMJDJFT BMSFBEZ QSPNPUFE JO +BQBO BJNT UP IBWF JOEJWJEVBMT XPSL MPOHFS UP QBSUMZ NJOJNJTF

UIF FGGFDU PG BHFJOH #MPPN BOE 8JMMJBNTPO BSHVF UIBU UIJT JT VOMJLFMZ UP XPSL JG UIF SFTU PG UIF XPSME JT BOZ HVJEF BT JODPNFT SJTF QFPQMF UFOE UP XPSL MFTT IBSE TQFOE MPOHFS JO TDIPPMJOH BOE XIJMF UIF XIPMF QPQVMBUJPO DBOOPU BGGPSE UP SFUJSF FBSMZ B TJHOJàDBOU QSPQPSUJPO DBO BOE XJMM NBLJOH UIF QSPTQFDU PG PUIFS GPSDFT PGGTFUUJOH UIF EFNPHSBQIJD FGGFDU VOMJLFMZ *O &BTU "TJB UIF àSTU EFNPHSBQIJD EJWJEFOE IBT QBJE PGG IBOETPNFMZ BT JT XFMM EPDVNFOUFE JO UIF MJUFSBUVSF #VU UIF QBDF PG UIF EFNPHSBQIJD USBOTJUJPO IBT CFFO TVDI UIBU UIF JNQBDU PG QPQVMBUJPO BHFJOH IBT BMSFBEZ CFHVO UP BQQFBS JO +BQBO BOE XJMM EP TP JO MFTT UIBO UXP EFDBEFT JO ,PSFB $IJOB )POH ,POH BOE 5BJXBO #MPPN BOE 8JMMJBNTPO

FTUJNBUF UIF zHSPXUI SFUBSEBUJPOh JNQBDU UP CF CFUXFFO BOE QFSDFOUBHF QPJOU PG BOOVBM (%1 HSPXUI JO UIFTF DPVOUSJFT -PPLJOH BU B HMPCBM TBNQMF -FF BOE .BTPO DBMDVMBUF UIBU UIF MBSHFTU EFDMJOFT JO XFBMUI CZ XJMM PDDVS JO 4PVUI ,PSFB +BQBO BOE 5BJXBO XJUI B ESPQ PG QFS DBQJUB DPOTVNQUJPO PG NPSF UIBO 4BWJOHT BOE EFNPHSBQIZ *T UIFSF B TFDPOE EFNPHSBQIJD EJWJEFOE 4PNF BVUIPST BSHVF UIBU UIF TBNF EFNPHSBQIJD GPSDFT UIBU QVU BO FOE UP UIF àSTU EFNPHSBQIJD EJWJEFOE NBZ MFBE UP B zTFDPOE EFNPHSBQIJD EJWJEFOEh -FF BOE .BTPO UIF DPOTFRVFODF PG UIF BDDVNVMBUJPO PG TBWJOHT SFTVMUJOH GSPN UIF JOJUJBM SBQJE JODSFBTF PG UIF QSPQPSUJPO PG XPSLFST JO UIF UPUBM QPQVMBUJPO



.BZ



"TTVNJOH B EZOBNJDBMMZ FGàDJFOU FDPOPNZ IJHIFS TBWJOHT TIPVME USBOTMBUF JOUP IJHIFS JOWFTUNFOU QFS XPSLFS 5IJT zDBQJUBM EFFQFOJOHh IJHIFS DBQJUBM JOWFTUNFOU QFS VOJU PG MBCPVS TIPVME BMTP MFBE UP IJHIFS MBCPVS QSPEVDUJWJUZ 5IJT USBOTNJTTJPO DIBOOFM JT QBSUJDVMBSMZ JNQPSUBOU PODF QPQVMBUJPO BHFJOH IBT CFHVO BOE UIF XPSLGPSDF IBT TUBSUFE UP TISJOL )FSF UIF TBWJOHT PG SFUJSFFT BSF FYQFDUFE UP TVQQPSU MBCPVS QSPEVDUJWJUZ HSPXUI BOE PGGTFU UIF SFWFSTBM PG UIF àSTU EFNPHSBQIJD EJWJEFOE EFTDSJCFE BCPWF -FF BOE .BTPO 5IF JODSFBTF PG TBWJOHT SBUFT XJUI EFNPHSBQIJD USBOTJUJPOT BOE UIF DPSPMMBSZ JNQBDU PG HSPXUI BSF BMTP XFMMEPDVNFOUFE )JHHJOT BOE 8JMMJBNTPO BOE )JHHJOT BOE 8JMMJBNTPO TIPX UIBU &BTU "TJBhT TBWJOHT SBUF XBT QFSDFOUBHF QPJOUT BCPWF JUT BWFSBHF JO UIF FBSMZ T EVF UP B NVDI MPXFS EFQFOEFODZ SBUJP $POWFSTFMZ JO UIF NJE T JU XBT QFSDFOUBHF QPJOUT CFMPX JUT BWFSBHF EVF UP B IJHI EFQFOEFODZ CVSEFO EVSJOH UIJT QFSJPE )JHHJOT BOE 8JMMJBNTPO BMTP àOE B UPUBM EFNPHSBQIJDESJWFO TXJOH JO TBWJOHT SBUFT PG QFSDFOUBHF QPJOUT PS BMNPTU BMM UIF UPUBM SJTF JO &BTU "TJBhT TBWJOHT SBUF PWFS UIF DPOTJEFSFE QFSJPE 5IJT BOBMZTJT PG UIF SFMBUJPOTIJQ CFUXFFO TBWJOH SBUFT BOE EFNPHSBQIJD USBOTJUJPO IBT CFFO UFTUFE BOE DPOàSNFE JO B OVNCFS PG QBQFST FTQFDJBMMZ JO UIF DBTF PG "TJB 5IF TBNF TUSBOE PG MJUFSBUVSF BMTP àOET B SFMBUJPOTIJQ CFUXFFO EFNPHSBQIJD HSPXUI BOE JOWFTUNFOU EFNPHSBQIJD USBOTJUJPO

UISPVHI JUT JNQBDU PO TBWJOHT JT FTUJNBUFE UP IBWF SBJTFE TJHOJàDBOUMZ UIF TIBSF PG JOWFTUNFOU )JHHJOT BOE 8JMMJBNTPO àOE UIBU UIJT FGGFDU BDDPVOUT GPS QFSDFOUBHF QPJOU PG UIF HSPXUI JO (%1 QFS DBQJUB JO &BTU "TJB )FODF UPHFUIFS XJUI UIF HSPXUI PG MBCPVS JOQVUT QFS DBQJUB JU DBO CF BSHVFE UIBU UIF FGGFDU PG EFNPHSBQIJD USBOTJUJPO FYQMBJOT NPTU PG &BTU "TJBhT FDPOPNJD HSPXUI DPOUSPMMJOH GPS JOTUJUVUJPOT BOE QVCMJD QPMJDZ JO QBSUJDVMBS UIF PQQPSUVOJUZ UP FNQMPZ QSPEVDUJWFMZ UIF DPIPSU PG CBCZ CPPNFST TFF 1BHF GPS B EJTDVTTJPO PG UIF &BTU "TJB zFDPOPNJD NJSBDMFh 4UJMM GPS UIF MBTU TUBHF PG EFNPHSBQIJD USBOTJUJPO UP ZJFME B OFX EJWJEFOE BT QSPQPTFE CZ -FF BOE .BTPO

NVDI EFQFOET PO UIF VTFT UIBU BSF NBEF PG UIF BDDVNVMBUFE TBWJOHT JODMVEJOH QFOTJPO BTTFUT 5IF EFNPHSBQIJD MJUFSBUVSF UZQJDBMMZ BTTVNFT UIBU SFUJSFNFOU TBWJOHT XJMM CF DIBOOFMFE JOUP FGàDJFOU QSPEVDUJWF BOE TVTUBJOBCMF FOEFBWPVST )PXFWFS *G GPS FYBNQMF NPTU QFOTJPO TBWJOHT BSF JOWFTUFE JO HPWFSONFOU CPOET UIF QSPDFFET PG XIJDI BSF VTFE UP TVQQPSU JODSFBTJOHMZ FYQFOTJWF QVCMJD IFBMUIDBSF BOE MPOHUFSN DBSF QSPHSBNT GPS UIF FMEFSMZ UIF MJOL CFUXFFO QFOTJPO TBWJOHT BOE MPOHUFSN HSPXUI DBO TFFN UFOVPVT BU CFTU 5IVT UIF JOWFTUNFOU BOE UIF NBOBHFNFOU PG UIF MBSHF QPPMT PG TBWJOHT UIBU OPX FYJTU JO &BTU "TJB IBWF QPUFOUJBMMZ GBS SFBDIJOH DPOTFRVFODFT PO UIF PVUDPNF



.BZ



PG QPQVMBUJPO BHFJOH BOE UIJT JT QBSUMZ B GVODUJPO PG UIF UZQF PG QFOTJPO TDIFNFT UIBU BSF NBEF BWBJMBCMF GPS DVSSFOU XPSLFST BOE SFUJSFFT /FYU XF SFWJFX SFDFOU FNQJSJDBM SFTVMUT PO UIF FWPMVUJPO PG UIF DPOTVNQUJPO QSPàMF PG BO BHFJOH QPQVMBUJPO BOE IPX XIBU JT FGGFDUJWFMZ B EZOBNJD MPOHUFSN MJBCJMJUZ JNQBDUT UIF SFUJSFNFOU TBWJOH CFIBWJPVS PG TFWFSBM HFOFSBUJPOT "HFJOH BOE JODSFBTJOH MJGFDZMF EFàDJUT 5IF MJGFDZDMF IZQPUIFTJT QPTUVMBUFT UIBU WBSJBUJPOT JO QSPEVDUJWJUZ EVSJOH JOEJWJEVBMTh MJWFT MFBE UIFN UP WBSZ UIFJS TBWJOHT PWFS UIFJS MJGFUJNF JO PSEFS UP TNPPUI UIF QSPàMF PG UIFJS DPOTVNQUJPO 'JTIFS )FODF UIF MJUFSBUVSF UZQJDBMMZ BSHVFT UIBU JG MJGFDZDMF TBWJOHT BSF EPNJOBUFE CZ QFOTJPO NPUJWFT TMPXFS QPQVMBUJPO HSPXUI TIPVME MFBE UP MPXFS BHHSFHBUF TBWJOHT .PEJHMJBOJ BOE "OEP

CVU JG MJGFDZDMF TBWJOHT BSF NPTUMZ SFRVJSFE UP àOBODF DIJMESFBSJOH TMPXFS QPQVMBUJPO HSPXUI TIPVME MFBE UP JODSFBTFE TBWJOH $PBMF BOE )PPWFS 5IVT VOEFS UIF QVSF MJGFDZDMF TBWJOH IZQPUIFTJT OP CFRVFTU NPUJWF

BHHSFHBUF TBWJOH SBUFT EFDMJOF EVSJOH UIF TUBHF PG UIF EFNPHSBQIJD USBOTJUJPO EVSJOH XIJDI GFSUJMJUZ JT IJHI CVU JOGBOU NPSUBMJUZ IBT ESPQQFE 5IFZ SJTF DPOTJEFSBCMZ EVSJOH UIF OFYU TUBHF XIFO GFSUJMJUZ BMTP ESPQT BOE UIF QPQVMBUJPO PG BEVMU XPSLFST JT UIF MBSHFTU 'JOBMMZ UIFZ BSF FYQFDUFE UP EFDMJOF BHBJO XJUI QPQVMBUJPO BHFJOH -FF FU BM .PTU QFOTJPO NPEFMT BOE QPMJDJFT SFWPMWF BSPVOE UIJT JEFB

)PXFWFS SFDFOU FNQJSJDBM SFTFBSDI QSPWJEFT DPOUSBEJDUPSZ FWJEFODF 5IF /BUJPOBM 5SBOTGFS "DDPVOUT -FF BOE .BTPO BSHVF UIBU BHFJOH MFBET UP BO JODSFBTF JO UIF EFNBOE GPS zMJGFDZDMF XFBMUIh DMBJNT PO GVUVSF PVUQVU UP QSPWJEF GPS JODPNF JO SFUJSFNFOU XIJDI NPTUMZ UBLF UIF GPSN PG DBQJUBM PS USBOTGFST $BQJUBM JOWPMWFT PXOJOH BTTFUT FJUIFS EJSFDUMZ PS UISPVHI QFOTJPO GVOET 5SBOTGFS XFBMUI JT UIF QSFTFOU WBMVF PG UIF EJGGFSFODF CFUXFFO UIF USBOTGFST POF FYQFDUT UP SFDFJWF JO UIF GVUVSF BOE UIF USBOTGFST POF FYQFDUT UP NBLF CPUI QVCMJD UBYFT BOE TPDJBM CFOFàUT JODMVEJOH 1":( QFOTJPOT

BOE QSJWBUF EPOBUJPOT GBNJMJBM TVQQPSU FUD 5IF /BUJPOBM 5SBOTGFS "DDPVOU QSPKFDU /5"

JOJUJBUFE CZ -FF BOE .BTPO IFMQT EPDVNFOU UIF FWPMVUJPO PG MJGFDZDMF XFBMUI JO IVNBO TPDJFUJFT 5IF MJGFDZDMF EFàDJU -$% PG BOZ BHF HSPVQ JT UIF EJGGFSFODF CFUXFFO BMM QSJWBUF BOE QVCMJD DPOTVNQUJPO PG QVCMJDMZ QSPWJEFE HPPET BOE TFSWJDFT BOE BMM MBCPVS JODPNF GSPN UIF GPSNBM TFDUPS JODMVEJOH TFMG FNQMPZNFOU BOE TPDJBM CFOFàUT BOE DPOUSJCVUJPOT NBEF CZ FNQMPZFST CFGPSF BOZ UBYFT 5IF QFS DBQJUB MBCPVS JODPNF BOE DPOTVNQUJPO QSPàMFT CZ ZFBS PG BHF PG +BQBO ,PSFB 5BJXBO BOE $IJOB BSF TIPXO JO àHVSF 5IF /5" áPX JEFOUJUZ CFMPX TUBUFT UIBU UIF EJGGFSFODF CFUXFFO DPOTVNQUJPO BOE MBCPVS JODPNF PS MJGFDZDMF EFàDJU -$% JT BMXBZT FRVBM UP OFU USBOTGFST QVCMJD BOE "O &%)&$3JTL *OTUJUVUF 1VCMJDBUJPO


.BZ



QSJWBUF QMVT UIF EJGGFSFODF CFUXFFO BTTFU JODPNF BOE TBWJOHT !

1VCMJD USBOTGFST BSF EJWJEFE CFUXFFO QVCMJD JOáPXT DPSSFTQPOE UP QVCMJDMZ QSPWJEFE QSPHSBNT BOE QVCMJD PVUáPXT UP UBYFT /FHBUJWF OFU QVCMJD USBOTGFST PS QVCMJD EJTTBWJOH DPSSFTQPOET UP QVCMJD EFCU 1SJWBUF USBOTGFST DBO PDDVS CFUXFFO PS XJUIJO IPVTFIPMET JODMVEJOH CZ àSNT PS /(0T 1SJWBUF BTTFU JODPNF JODMVEFT UIF SFUVSO GSPN àOBODJBM BOE PUIFS BTTFUT BT XFMM BT JNQVUFE SFOUT 1VCMJD BTTFU JODPNF JODMVEFT UIF SFUVSO PO QVCMJDMZ PXOFE BTTFUT BOE UIF TFSWJDF PG QVCMJD EFCU B OFHBUJWF "TTFU JODPNF JOáPX JT PGGTFU CZ BOZ OFX TBWJOHT PVUáPX OFX EFCU JT SFDPSEFE BT OFHBUJWF BTTFU JODPNF PVUáPX BOE EJTTBWJOH BT BO JOáPX 1FS DBQJUB áPXT BSF FTUJNBUFE VTJOH BHF QSPàMFT EFSJWFE GSPN OBUJPOBM TVSWFZT BOE NBEF UP BEE VQ UP OBUJPOBM BHHSFHBUFT 4VSWFZ EBUB BMMPXT UIF BMMPDBUJPO PG QVCMJD FYQFOEJUVSF PO IFBMUIDBSF BOE FEVDBUJPO QVCMJD FYQFOEJUVSFT CZ BHF 0UIFS QVCMJD áPXT BSF DPOTJEFSFE DPOTUBOU GPS FBDI BHF HSPVQ 1SJWBUF DPOTVNQUJPO JT BMMPDBUFE CZ BHF JO B TJNJMBS XBZ VTJOH IPVTFIPME TVSWFZ EBUB "HHSFHBUF áPXT BU FBDI BHF BSF DBMDVMBUFE BT UIF QSPEVDU PG QFS DBQJUB áPXT BOE UIF QPQVMBUJPO BU FBDI BHF

'PS FBDI ZFBS PG BHF U JOáPXT MBCPVS JODPNF USBOTGFST BOE BTTFU JODPNF NVTU CF NBUDIFE CZ PVUáPXT DPOTVNQUJPO USBOTGFST BOE TBWJOHT BOE CZ DPOTUSVDUJPO -$%T BSF GVOEFE CZ OFU QSJWBUF BOE QVCMJD USBOTGFST BOE CZ BTTFU JODPNF PS EFCU -$%U = DPOTVNQUJPOU − MBCPVS JODPNFU = OFU USBOTGFSTU + (BTTFU JODPNFU − TBWJOHTU ) 5IF /5" EBUB DPWFST DPVOUSJFT WBSZJOH JO MFWFM PG EFWFMPQNFOU GSPN ,FOZB UP UIF 64 GPS JOEJWJEVBM ZFBST CFUXFFO BOE -PPLJOH BU JOEJWJEVBM DPVOUSZ QSPàMFT GPS SFMFWBOU ZFBST UIF GPMMPXJOH TUZMJTFE GBDUT DBO CF ESBXO !

!

!

5IF TVSQMVT HFOFSBUFE GSPN UIF XPSLGPSDFhT MBCPVS JODPNF UIF BSFB BCPWF UIF SFE MJOF BOE CFMPX UIF HSFFO MJOF PO àHVSF JT VTVBMMZ MFTT UIBO UIF DPNCJOFE MJGFDZDMF EFàDJUT PG EFQFO EFOUT UIF ZPVOH BOE UIF FMEFSMZ UIF UXP BSFBT CFMPX UIF SFE MJOF BOE BCPWF UIF HSFFO POF $IJOB BOE ,FOZB BSF UIF POMZ UXP FYDFQUJPOT JO UIF TBNQMF EVF UP WFSZ MPX DPOTVNQUJPO QSPàMFT "U UIF BHHSFHBUF MFWFM USBOTGFST DBODFM FBDI PUIFS PVU BOE BTTFU JODPNF m FJUIFS QPTJUJWF JG JU JT UIF QSPEVDU PG JOWFTUFE BTTFUT PS OFHBUJWF JG EFCU JT VTFE m JT OFDFTTBSZ UP àMM JO UIF HBQ 5IFSF JT B WFSZ TUSPOH MJOFBS SFMBUJPOTIJQ CFUXFFO UIF MJGFDZDMF TVSQMVT PG UIF XPSLGPSDF BOE (%1 QFS DBQJUB BT TIPXO PO àHVSF 5IJT JT UP CF FYQFDUFE

TJODF IJHIFS (%1 UZQJDBMMZ JNQMJFT IJHIFS MBCPVS QSPEVDUJWJUZ )PXFWFS àHVSF BMTP TIPXT B WFSZ TUSPOH MJOFBS SFMBUJPOTIJQ CFUXFFO (%1 QFS DBQJUB BOE UIF DPNCJOFE MJGFDZDMF EFàDJU PG UIF ZPVOHFS BOE PMEFS TFHNFOUT PG UIF QPQVMBUJPO 5IJT EFàDJU HSPXT SPVHIMZ UISFF UJNFT GBTUFS UIBO UIF DPSSF TQPOEJOH TVSQMVT BT B GVODUJPO PG FBDI FDPOPNZhT (%1 QFS DBQJUB

/5" EBUB UIVT TVHHFTUT B DMFBS zMJGFDZDMF EFàDJU QBUIh BT JOEJWJEVBM DPVOUSJFT NPWF VQ UIF (%1 QFS DBQJUB TDBMF 5IF FYJTUFODF PG UIJT QBUI JT BMTP DPOàSNFE CZ /5" EBUB BWBJMBCMF PO B UJNF TFSJFT CBTJT JO UIF DBTF PG +BQBO TFF àHVSF JO TFDUJPO /5" EBUB GPS +BQBO TQBOT ZFBST -FF BOE .BTPO

BSHVF UIBU UIF FWPMVUJPO PG UIF MJGFDZDMF EFàDJU QSPàMF PG B TPDJFUZ DBO CF NPEFMMFE GSPN IVOUFSHBUIFSFS TPDJFUJFT UP DPOUFN QPSBSZ QPTUJOEVTUSJBM POFT 5IF SFWFSTBM PG JOUFSHFOFSBUJPOBM áPXT /5" EBUB BOE MJUFSBUVSF BMTP ZJFMET PUIFS JNQPSUBOU JOTJHIUT SFMBUJWF UP UIF JNQBDU PG QPQVMBUJPO BHFJOH PO MPOHUFSN DPOTVNQUJPO PCKFDUJWFT .VDI IJHIFS MJGFDZDMF EFàDJU PG UIF FMEFSMZ !

5IF MJGFDZDMF EFàDJU PG UIF FMEFSMZ JT B SFMBUJWFMZ SFDFOU QIFOPNFOPO TJODF UIFZ BSF GPVOE UP CF QSPEVDUJWF VOUJM UIFJS T JO UIF USBEJUJPOBM TPDJFUJFT )PXFWFS JO DPOUFNQPSBSZ TPDJFUJFT JOEFQFOEFOUMZ PG UIF SFMBUJWF MFWFM PG EFWFMPQNFOU UIF PMEFS TFHNFOU PG TPDJFUZ IBT UIF BCJMJUZ UP ESBX PO SFTPVSDFT UIBU BSF IJHIFS UIBO



.BZ



'JHVSF 1FS DBQJUB MJGFDZDMF DPOTVNQUJPO BOE MBCPVS JODPNF QSPàMFT JO &BTU "TJB DPOTUBOU 64% BU QVSDIBTJOH QPXFS QBSJUZ DSPTTTFDUJPO GPS SFMFWBOU ZFBST South Korea 2000

Japan 2004 16,000

35,000

14,000

30,000

12,000 25,000 10,000 20,000 8,000 15,000 6,000 10,000

0

0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 48 50 52 54 56 58 60 62 64 66 68 70 72 74 76 78 80 82 84 86 88 90+

2,000

0

0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 48 50 52 54 56 58 60 62 64 66 68 70 72 74 76 78 80 82 84 86 88 90+

4,000

5,000

Taiwan 1998

China 2002

25,000

3,000 Consumption Labor Income

2,500

20,000

2,000 15,000 1,500 10,000 1,000 5,000

0

0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 48 50 52 54 56 58 60 62 64 66 68 70 72 74 76 78 80 82 84 86 88 90+

0

0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 48 50 52 54 56 58 60 62 64 66 68 70 72 74 76 78 80 82 84 86 88 90+

500

4PVSDF -FF BOE .BTPO

-500,000

0

15,000

20,000

Germany 2003 Austria 2000

25,000

30,000

USA 2003

Japan 2004

Slovenia 2004

Spain 2000

Hungary 2005

Taiwan 1998

Uruguay 2006

10,000

Mexico 2004

Brazil 1996 Costa Rica 2004 Chile 1997

Thailand 2004

5,000

South Korea 2000

0

China 2002

USD per capita per year at purchainsg power parity

500,000

Philippines 1999

Kenya 1994 Nigeria 2004 India 2004 Indonesia 2005

1,000,000

Finland 2004 Sweden 2003

'JHVSF $VNVMBUJWF QFS DBQJUB MJGFDZDMF EFàDJUT BOE TVSQMVTFT WT (%1 QFS DBQJUB DPOTUBOU 64% BU 111

y = 12.859x R² = 0.87502

35,000

40,000

-1,000,000 y = -34.962x R² = 0.94507 -1,500,000

-2,000,000

USD GDP per capita at purchasing power parity Lifecycle surplus (cross section)

Lifecycle deficit (cross section)


8PSME #BOL %FWFMPQNFOU *OEJDBUPST BVUIPSTh DPNQVUBUJPOT



.BZ



!

!

!

XIBU UIFZ DBO FBSO UISPVHI UIFJS MBCPVS *O BMM /5" DPVOUSJFT B MJGFDZDMF EFàDJU BQQFBST GSPN BHF BOE JT DPNNPO PG DBTFT CZ BHF "T QPQVMBUJPOT BHF BOE CFDPNF SJDIFS UIF QFS DBQJUB DPOTVNQUJPO PG UIF FMEFSMZ JODMVEJOH UIFJS DPOTVNQUJPO PG QVCMJD TFSWJDFT MJLF IFBMUIDBSF SJTFT BCPWF UIF QFS DBQJUB DPOTVNQUJPO PG UIF XPSLGPSDF 5IJT QBSUMZ JOWBMJEBUFT UIF OPUJPO PG zSFQMBDFNFOU SBUFh TJODF UIF UPUBM DPOTVNQUJPO OFFET PG UIF FMEFSMZ BSF TIPXO UP CF NVDI IJHIFS UIBO UIBU PG UIF XPSLGPSDF *O NPTU DPVOUSJFT UIF NBKPSJUZ PG UIF MJGFDZDMF EFàDJU PG UIF FMEFSMZ JT ESJWFO CZ IFBMUIDBSF DPTUT BOE UIF NBKPSJUZ PG UIFTF DPTUT BSF àOBODFE CZ QVCMJD áPXT *O "TJB OFU QSJWBUF USBOTGFST UP UIF FMEFSMZ IBWF EFDSFBTFE TJHOJàDBOUMZ JO +BQBO ,PSFB BOE 5BJXBO *O +BQBO JO WJWP QSJWBUF USBOTGFST GSPN UIF FMEFSMZ CBDL UP UIFJS DIJMESFO BSF HSPXJOH BOE OFU QSJWBUF USBOTGFST BSF OJM

!

"HFJOH BMTP MFBET UP B IJHIFS MJGFDZDMF EFàDJU GPS UIF ZPVOH !

!

4PVSDFT PG àOBODJOH PG UIF FMEFSMZhT MJGFDZDMF EFàDJU !

!

!

*O UIF 64 BTTFU JODPNF JODMVEJOH QFOTJPO QMBOT àOBODFT NPTU PG UIF MJGFDZDMF EFàDJU PG SFUJSFFT BT àHVSF JMMVTUSBUFT *O "TJB OFU QSJWBUF BOE QVCMJD USBOTGFST BSF GPVOE UP CF NVDI IJHIFS BOE SFQSFTFOU BT NVDI BT POF UIJSE FBDI PG UIF QPQVMBUJPOhT MJGFDZDMF EFàDJU JO 5BJXBO BOE ,PSFB *O &BTU "TJB BT PQQPTFE UP UIF 64 UIF FMEFSMZ BSF OPU EJTTBWJOH CVU JOTUFBE

DPOUJOVF UP BDDVNVMBUF BT àHVSF TIPXT 'JHVSF BMTP TIPXT UIBU UIF PMEFTU FMEFSMZ QFPQMF IBWF MFTT BTTFUT CFDBVTF UIFZ TUBSUFE BDDVNVMBUJOH MBUFS BOE GSPN B MPX CBTF CVU UIF OFYU HFOFSBUJPO PG SFUJSFFT IBT BDDVNVMBUFE TJHOJàDBOU TBWJOHT

!

!

-FF BOE .BTPO SFQPSU B TUSPOH USBEFPGG CFUXFFO GFSUJMJUZ BOE IVNBO DBQJUBM TQFOEJOH )FODF BHFJOH UFOET UP CF BDDPNQBOJFE CZ IJHIFS JOWFTUNFOU JO GVUVSF MBCPVS QSPEVDUJWJUZ %FTQJUF MPXFS GFSUJMJUZ BOE BCTPMVUF OVNCFS PG CJSUI QPQVMBUJPO BHFJOH JT BMTP BDDPNQBOJFE CZ BO JODSFBTF JO UIF MJGFDZDMF EFàDJUT PG UIF ZPVOH UPUBM DPOTVNQUJPO QFS DIJME JT MPX JO DPVOUSJFT XJUI IJHI GFSUJMJUZ BOE IJHI JO DPVOUSJFT XJUI MPX GFSUJMJUZ FTQFDJBMMZ JO &BTU "TJB 4PVUI ,PSFB +BQBO PS 5BJXBO 8IJMF +BQBO BOE (FSNBOZ IBWF UIF TBNF MFWFM PG GFSUJMJUZ +BQBOhT DPOTVNQUJPO QFS DIJME JT IJHIFS UIBO (FSNBOZhT -FF FU BM $IJOB JT UIF FYDFQUJPO XJUI WFSZ MPX DPOTVNQUJPO QFS DIJME EFTQJUF MPX GFSUJMJUZ CFDBVTF PG MPX MFWFMT PG DPOTVNQUJPO BU BMM BHFT 0OF UIJSE PO BWFSBHF PG $IJMESFOhT DPOTVNQUJPO JT QVCMJD DPOTVNQUJPO 5IF MJGFDZDMF EFàDJU PG UIF ZPVOH JT QBSUMZ ESJWFO CZ IJHIFS IFBMUIDBSF DPTUT GPS JOGBOUT BOE NPTUMZ CZ IJHIFS FEVDBUJPO DPTUT GPS DIJMESFO BOE ZPVOH BEVMUT



.BZ



'JHVSF 1FS DBQJUB QSJWBUF TBWJOHT áPX BDSPTT UIF MJGFDZDMF OPSNBMJTFE CZ UIF BWFSBHF PG MBCPS JODPNF GPS JOEJWJEVBMT ZFBST PME

0.600 0.500 0.400 0.300 0.200

0.000

0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 48 50 52 54 56 58 60 62 64 66 68 70 72 74 76 78 80 82 84 86 88 90+

0.100

-0.100 -0.200 -0.300 -0.400 Private Saving Korea 2000

Private Saving Japan 2004

Private Saving Taiwan 1998

Private Saving USA 2003


'JHVSF 1FS DBQJUB BTTFU JODPNF áPX BDSPTT UIF MJGFDZDMF OPSNBMJTFE CZ UIF BWFSBHF PG MBCPS JODPNF GPS JOEJWJEVBMT ZFBST PME

0.900 0.800 0.700 0.600 0.500 0.400 0.300 0.200

0.000

0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 48 50 52 54 56 58 60 62 64 66 68 70 72 74 76 78 80 82 84 86 88 90+

0.100

-0.100 Private Asset Income Korea 2000

Private Asset Income Japan 2004

Private Asset Income Taiwan 1998

Private Asset Income USA 2003




.BZ



!

!

.PTU PG UIF JODSFBTFE DPTU PG FEVDBUJPO BOE IFBMUIDBSF GPS JOGBOUT DIJMESFO BOE ZPVOH BEVMUT JT CPSOF CZ UIF QVCMJD TFDUPS CVU XJUI TPNF SFHJPOBM WBSJBUJPOT JO UIF DBTF PG FEVDBUJPO 5IF QVCMJD TIBSF PG DIJMESFOhT DPOTVNQUJPO PG FEVDBUJPO SBOHFT GSPN JO UIF 64 UP JO 4XFEFO )PXFWFS &BTU "TJBO IPVTFIPMET àOBODF B TVCTUBOUJBM QSPQPSUJPO PG UIF JOWFTUNFOU NBEF JO FEVDBUJOH UIFJS DIJMESFO VQ UP IBMG PG UIF FEVDBUJPO FYQFOEJUVSFT PG ZPVOH "TJBOT JT CPSOF CZ UIFJS GBNJMJFT

-PXFS MBCPVS GPSDF QBSUJDJQBUJPO !

!

!

"T UIF QPJOU BCPWF TVHHFTUT QPQVMBUJPO BHFJOH JT BMTP BDDPNQBOJFE CZ B MBUFS FOUSZ JO UIF XPSLGPSDF PG UIF ZPVOHFS QBSU PG UIF QPQVMBUJPO JF UIF BWFSBHF ZFBS PG BHF BU XIJDI JOEJWJEVBMT CFHJO UP HFOFSBUF B MJGFDZDMF TVSQMVT UFOET UP SJTF )PXFWFS UIF BHF CFZPOE XIJDI JOEJWJEVBMT CFHJO UP TIPX B MJGFDZDMF EFàDJU BHBJO EPFT OPU BEWBODF NVDI JO NPTU DPVOUSJFT EVF UP B DFSUBJO SJHJEJUZ PG UIF SFUJSFNFOU BHF )FODF CPUI UIF BHHSFHBUF BOE BWFSBHF QFS DBQJUB MJGFDZDMF TVSQMVTFT UFOE UP TISJOL BT UIF BHHSFHBUF BOE QFS DBQJUB MJGFDZDMF EFàDJUT UFOE UP HSPX

5IF SPMF PG TBWJOHT !

5IF MJGFDZDMF IZQPUIFTJT JT JOWBMJEBUFE JO NPTU DPVOUSJFT UIF PMEFS QBSU PG UIF QPQVMBUJPO DPOUJOVFT UP BDDVNVMBUF QSJWBUF TBWJOHT MPOH BGUFS SFUJSFNFOU 5IF 64" JT B OPUBCMF FYDFQUJPO

!

*U TFFNT SFBTPOBCMF UP QPTJU UIBU JOEJWJEVBMT EP OPU EJTTBWF CFDBVTF UIFZ EP OPU IBWF UP JF QVCMJD USBOTGFST DPWFS UIF NBKPSJUZ PG UIFJS DPTUT FTQFDJBMMZ IFBMUIDBSF DPTUT

5IF SPMF PG QVCMJD áPXT !

!

#Z GBS UIF MBSHFTU TIBSF PG JOUFSHFOFS BUJPOBM USBOTGFST BSF NFEJBUFE UISPVHI QVCMJD áPXT JF UBYBUJPO NPTUMZ UIF UBYBUJPO PG MBCPVS JODPNF 5IJT DSFBUFT B TUSPOH MJOL CFUXFFO UIF BDDVNVMBUJPO CFIBWJPVS PG EJGGFSFOU HFOFSBUJPOT

-FF BOE .BTPO BSHVF UIBU XIJMF JOUFSHFOFSBUJPOBM USBOTGFS IBWF IJTUPSJDBMMZ áPXFE GSPN PMEFS UP ZPVOHFS HFOFSBUJPOT BT DVSSFOU HFOFSBUJPOT QBTTFE BOE JOWFTUFE UIFJS SFTPVSDFT JO GVUVSF POFT UIJT USFOE DBO CF SFWFSTFE XJUI QPQVMBUJPO BHFJOH DVSSFOU HFOFSBUJPOT VTF USBOTGFS TZTUFNT FTQFDJBMMZ QVCMJD POFT UP DMBJN UIF SFTPVSDFT PG GVUVSF HFOFSBUJPOT *O "TJB .BTPO FU BM àOE UIBU 5BJXBOFTF $IJOFTF BOE ,PSFBO OFU UPUBM áPXT BSF TUJMM HPJOH EPXOXBSE CVU UIPTF PG +BQBO IBWF BMSFBEZ CFFO SFWFSTFE POF PG UIF GFX TVDI DBTFT BMPOH XJUI (FSNBOZ "VTUSJB 4MPWFOJB BOE )VOHBSZ 5IFZ TIPX UIBU UIJT TIJGU JT ESJWFO FOUJSFMZ CZ UIF DIBOHF JO UIF QPQVMBUJPO BHF TUSVDUVSF *NQMJDBUJPOT PG SJTJOH MJGFDZDMF EFàDJUT 4PNF LFZ àOEJOHT GPS UIF /5" QSPKFDU DIBMMFOHF UXP JNQPSUBOU IZQPUIFTFT VTFE JO



.BZ



UIF QVSF MJGFDZDMF NPEFM XIJDI VOEFSQJOT TP NVDI QFOTJPO UIJOLJOH !

!

/P NPSF DPOTVNQUJPO TNPPUIJOH JO ZPVOHFS BOE QPPSFS QPQVMBUJPOT UIF QFS DBQJUB DPOTVNQUJPO QSPàMF PG UIF FMEFSMZ JT MPXFS UIBO UIBU PG UIF XPSLGPSDF "T UIF FDPOPNZ EFWFMPQT BOE MJGF FYQFDUBODZ JODSFBTFT UIF BHF DPOTVNQUJPO QSPàMF CFDPNFT áBU BDSPTT UIF MJGFDZDMF CVU FWFOUVBMMZ UIF QFS DBQJUB DPOTVNQUJPO PG UIF FMEFSMZ CFDPNFT UIF IJHIFTU PG UIF QPQVMBUJPO JG CPUI QVCMJD BOE QSJWBUF DPOTVNQUJPO BSF UBLFO JOUP BDDPVOU 5IJT TVHHFTUT UIBU UIF PCKFDUJWF PG QFOTJPO TBWJOHT NBZ IBWF MJUUMF UP EP XJUI DPOTVNQUJPO TNPPUIJOH *G UIF NBKPSJUZ PG PME BHF DPOTVNQUJPO JT QVCMJD IFBMUIDBSF àOBODFE CZ UBYJOH UIF XPSLGPSDF JF UIF OFYU HFOFSBUJPO

UIFO BTTVNJOH OP GSFFSJEJOH CFUXFFO HFOFSBUJPOT B QPPM PG TFWFSBM HFOFSB UJPOT DPVME DPOTJEFS UIJT DPOTVNQUJPO PCKFDUJWF UP CF JUT MJBCJMJUZ UBSHFU *G PO UIF DPOUSBSZ UIF NBKPSJUZ PG PMEBHF IFBMUIDBSF DPOTVNQUJPO JT QSJWBUFMZ àOBODFE UIFO JU JT B MJBCJMJUZ GPS FBDI HFOFSBUJPO PG SFUJSFFT BOE TIPVME CF QBSU PG JUT QPTUSFUJSFNFOU DPOTVNQUJPO PCKFDUJWFT XJUI JNQPSUBOU JNQMJDBUJPOT GPS QFOTJPO TBWJOHT JOWFTUNFOU DIPJDFT 3FUJSFFT EP OPU EJTTBWF JO NPTU DPVOUSJFT JO UIF XPSME XIFSF IFBMUIDBSF JT NPTUMZ àOBODFE CZ QVCMJD USBOTGFST

UIFSF JT DVSSFOUMZ OP FWJEFODF PG EJTTBWJOHT JO PME BHF DVSSFOU SFUJSFFT IBWF DPOUJOVFE UP IBWF QPTJUJWF OFU TBWJOHT BOE UP BDDVNVMBUF àOBODJBM BTTFUT BGUFS UIFZ IBWF SFUJSFE XIJMF UIF XPSLGPSDF TVQQPSUT NPTU PG UIF

JODSFBTJOH IFBMUIDBSF DPTUT PG PME BHF BT XFMM BT UIF JODSFBTJOH FEVDBUJPO DPTUT PG ZPVOH BHF 5IF POMZ DMFBSMZ EPDVNFOUFE DBTF PG PME BHF EJTTBWJOH JT GPVOE JO UIF 64 *O UIF SFTU PG UIF XPSME DVSSFOU SFUJSFFT BSF OPU QBSUJDVMBSMZ BU SJTL CFDBVTF UIFZ SFDFJWF TVCTUBOUJBM QVCMJD USBOTGFST BOE UIVT DBO BMTP DPOUJOVF UP BDDVNVMBUF 5IVT CPUI BU UIF JOEJWJEVBM BOE BU UIF BHHSFHBUF MFWFM QPQVMBUJPO BHFJOH DPNCJOFE XJUI IJHIFS XFBMUI QFS DBQJUB DSFBUFT B QSFEJDUBCMF BOE JODSFBTJOH MJBCJMJUZ QSPDFTT EFàOFE BT UIF QFS DBQJUB DPOTVNQUJPO JO FBDI QPTUSFUJSFNFOU ZFBS BT XFMM BT JO FBDI QSFXPSL ZFBS *O NPTU DPVOUSJFT UIJT MJBCJMJUZ JT NPTUMZ UIF SFTVMU PG UIF JODSFBTJOH DPTU PG FEVDBUJPO BOE IFBMUIDBSF QFS DBQJUB UIBU JT DPODPNJUBOU XJUI QPQVMBUJPO BHFJOH 5IJT MJBCJMJUZ JT CPUI UIBU PG UIF OBUJPO BOE PG FBDI JOEJWJEVBM BDSPTT TFWFSBM HFOFSBUJPOT *OTUFBE PG JOWBMJEBUJOH UIF MJGFDZDMF NPEFM UIFTF àOEJOHT TVHHFTU UIBU UIF FYJTUFODF PG HFOFSPVT QVCMJD QFOTJPOT BOE TPDJBM TFDVSJUZ DSFBUFT B HFOFSBUJPOBM MBH JO UIF OFFE GPS JOEJWJEVBMT UP BEBQU UIFJS TBWJOHT BOE DPOTVNQUJPO CFIBWJPVS BT B GVODUJPO PG UIFJS BCJMJUZ UP HFOFSBUF BO JODPNF 5IF DVSSFOU HFOFSBUJPO XPVME UIVT CF CFOFàUJOH GSPN FYDFQUJPOBMMZ GBWPVSBCMF DJSDVNTUBODFT BOE UIF OFDFTTBSZ BEBQUBUJPO UP UIF JNQBDU PG EFNPHSBQIJD DIBOHF NBZ IBWF UP CF CPSOF FOUJSFMZ CZ GPMMPXJOH HFOFSBUJPOT



.BZ



*NQPSUBOUMZ UIJT PVUDPNF IBT TP GBS SFNPWFE NVDI JODFOUJWF GPS SFUJSFFT UP JOWFTU UIFJS QFOTJPO TBWJOHT JO PSEFS UP NFFU UIFJS FGGFDUJWF DPOTVNQUJPO MFWFM TJODF NPTU PG UIJT DPOTVNQUJPO JT OPU àOBODFE CZ UIFJS TBWJOHT *G BT UIF /5" EBUB TIPXT DVSSFOU SFUJSFFT EP OPU OFFE PO BWFSBHF UP EJTTBWF UIFO FWFO UIF NPTU DPOTFSWBUJWF BMMPDBUJPO PG UIFJS QFOTJPO TBWJOHT JT TVGàDJFOU 5IJT JO UVSO IBT DPOTJEFSBCMZ MPXFSFE UIF EFNBOE GPS PQUJNBM JOWFTUNFOU TPMVUJPOT TP GBS

*O PUIFS XPSET NVDI SFMJFT PO UIF DVSSFOU XPSLGPSDF BOE JUT TBWJOHT BOE JOWFTUNFOU PQUJPOT BOE EFDJTJPOT

*G TUBOEBSET PG MJWJOH BSF UP CF TVTUBJOFE UIF XPSLJOH BHF QPQVMBUJPO NVTU HFOFSBUF TVGàDJFOU SFTPVSDFT UP GVMàM UISFF JNQPSUBOU SFTQPOTJCJMJUJFT 5IF àSTU JT UP QSPWJEF GPS JUT PXO NBUFSJBM OFFET UIF TFDPOE JT UP GVOE QVCMJD BOE QSJWBUF USBOTGFST UP DIJMESFO BOE UIF FMEFSMZ BOE UIF UIJSE JT UP TBWF FOPVHI UP GVOE JUT PXO GVUVSF SFUJSFNFOU OFFET 5IF TUBOEBSET PG MJWJOH PG BMM EFQFOE PO UIF TVDDFTT XJUI XIJDI UIF XPSLJOH BHF QPQVMBUJPO NFFUT UIFTF DIBMMFOHFT -FF BOE .BTPO FNQIBTJT BEEFE

.PSFPWFS UIF MJBCJMJUZ SFQSFTFOUFE CZ UIF SJTJOH MJGFDZDMF EFàDJU PG UIF FMEFSMZ XIFUIFS JU JT UIFJS PXO PS UIBU PG UIF DVSSFOU XPSLGPSDFUBYQBZFST PS CPUI JT UIVT OPU FYQMJDJUMZ UBLFO JOUP BDDPVOU JO UIF QMBOOJOH BOE NBOBHFNFOU PG QFOTJPOT TBWJOHT FTQFDJBMMZ QVCMJD QFOTJPO SFTFSWFT PS UIF OFYU HFOFSBUJPO PG SFUJSFFT 5IF SPMF PG BTTFU JODPNF *U SFNBJOT UIBU UIJT MJBCJMJUZ NVTU EF àOBODFE 5ISFF TPVSDFT PG GVOET DBO CF FOWJTBHFE 5SBOTGFST B QSJWBUF USBOTGFST NPTUMZ XJUIJO GBNJMJFT GSPN XPSLFST UP EFQFOEFOUT C BOE QVCMJD USBOTGFST UISPVHI UBYBUJPO NPTUMZ PG UIF XPSLGPSDF

%FCU NPTUMZ QVCMJD EFCU JF UBYBUJPO PG UIF OFYU HFOFSBUJPO PG XPSLFST "TTFU JODPNF QVCMJD PS QSJWBUF

NPTUMZ UISPVHI UIF BDDVNVMBUJPO BOE TVDDFTTGVM JOWFTUNFOU PG QSJWBUF TBWJOHT

*O UIJT SFTQFDU &BTU "TJB CFOFàUT GSPN UXP TJHOJàDBOU BEWBOUBHFT DPNQBSFE XJUI UIF SFTU PG UIF XPSME !

!

5IF SPMF PG OPOàOBODJBM QSJWBUF USBOTGFST XIJMF JU JT TIPXO UP CF EFDSFBTJOH SFNBJOT TJHOJàDBOU BOE DVTIJPOT UIF QVCMJD TFDUPS GSPN B TJHOJG JDBOU QSPQPSUJPO PG UIF DPTUT SFMBUFE UP BHFJOH FH JO PG +BQBOFTF IPVTFIPMET TUJMM IBWF UISFF HFOFSBUJPOT VOEFS UIF TBNF SPPG BHBJOTU JO 'SBODF

5IF BCJMJUZ UP NJOJNJTF PS DPNQMFUFMZ BWPJE JOUFSOBUJPOBM DBQJUBM NBSLFUT UP SBJTF QVCMJD EFCU JOTVMBUFT UIF HPWFSONFOU GSPN NBSLFU QFSDFQUJPOT



.BZ



PG TPWFSFJHO DSFEJU SJTL BOE BMMPXT GPS B NVDI NPSF FYUFOTJWF VTF PG QVCMJD EFCU JTTVBODF UP àOBODF MJGFDZDMF EFàDJUT XJUIPVU JODVSSJOH IJHIFS àOBODJOH DPTUT 5IJT TJUVBUJPO PG BO FWFS JODSFBTJOH MJGFDZDMF EFàDJU àOBODFE CZ QVCMJD EFCU JT FYBDUMZ XIBU DBO CF PCTFSWFE JO +BQBO XJUI B WFSZ IJHI EFCU(%1 SBUJP

5IF XBZ PVU PG UIJT WJDJPVT DJSDMF XIJDI +BQBO JMMVTUSBUFT BMM UPP XFMM JT UP JODSFBTF BTTFU JODPNF JOTUFBE PG JODSFBTJOH QVCMJD EFCU

*O PUIFS XPSET &BTU "TJBhT FDPOPNJFT DBO TFFNJOHMZ TVTUBJO NVDI IJHIFS MFWFMT PG MJGFDZDMF EFàDJUT UIBO FDPOPNJFT XIJDI IBWF MJUUMF QSJWBUF USBOTGFST BOE B MJNJUFE CPSSPXJOH DBQBDJUZ JO JOUFSOBUJPOBM DBQJUBM NBSLFU PS EPNFTUJDBMMZ

'PS B MPX MFWFM PG USBOTGFST EFàOFE BT PG PME BHF DPOTVNQUJPO àOBODFE CZ QVCMJD BOE QSJWBUF USBOTGFST UIFZ FTUJNBUF UIBU BTTFUT IFME CZ IPVTFIPMET OFFE UP SJTF UP TFWFO UJNFT MBCPVS JODPNF CZ BTTVNJOH PQFO DBQJUBM NBSLFUT BOE UIF QPTTJCJMJUZ PG JOWFTUJOH BCSPBE 'PS USBOTGFST UIF BTTFU BDDVNVMBUJPO MFWFM JT POMZ UXJDF MBCPVS JODPNF

#VU UIFSF JT BMTP B MJNJU UP UIJT QPTJUJPO àOBODJOH MJGFDZDMF EFàDJUT XJUI QVCMJD EFCU XIJMF LFFQJOH BMM QVCMJD EFCU EPNFTUJ DBMMZ IFME OFDFTTBSJMZ NFBOT JNQPTJOH UIF BCTPSQUJPO PG UIJT EFCU CZ UIF MPDBM àOBODJBM TFDUPS JO QBSUJDVMBS EFQPTJU CBOLT JOTVSFST BOE QFOTJPO GVOET

.BTPO BEESFTT UIJT JTTVF GPS &BTU "TJB UISPVHI TJNVMBUJPO BOE TIPX UIBU UIFSF JT B USBEFPGG CFUXFFO USBOTGFST BOE BTTFUT

#VU -FF BOE .BTPO BSHVF UIBU JG UIJT QFOTJPO XFBMUI JT OPU IFME JO BTTFUT CVU JO USBOTGFST JU XJMM OPU TQVS HSPXUI CVU JOTUFBE MJNJU JU

5IF NPSF MPXZJFMEJOH EFCU UIF HPWFSONFOU JNQPTFT UP àOBODJBM JOTUJUVUJPOT JODMVEJOH QFOTJPO GVOET UIF MPXFS UIF MFWFM PG BTTFU JODPNF GPS UIFTF JOWFTUPST UIF NPSF UIF HPWFSONFOU IBT UP QMVH UIF HBQ PG QVCMJD QFOTJPOT BOE IFBMUIDBSF CZ JTTVJOH NPSF QVCMJD EFCU

5IF OFFE GPS JOWFTUNFOU JODPNF "TTVNJOH UIFSF BSF MJNJUT UP UIF MFWFM PG JOUFSHFOFSBUJPOBM USBOTGFST BOE UIF BMUFS OBUJWF VTF PG QVCMJD EFCU UP àOBODF MJGFDZDMF EFàDJUT BTTFU JODPNF JT BO FTTFOUJBM QBSU PG UIF TPMVUJPO UP àOBODJOH UIF DVSSFOU BOE GVUVSF DPOTVNQUJPO PG BO BHFJOH TPDJFUZ

-JLFXJTF JO PSEFS UP NJOJNJTF JUT DPTU PG àOBODJOH MJGFDZDMF EFàDJUT UIF QVCMJD TFDUPS DBO LFFQ JOUFSFTU SBUFT CFMPX NBSLFU DMFBSJOH MFWFMT TFF TFDUJPO PO àOBODJBM SFQSFTTJPO JO &BTU "TJB CVU UIJT BMTP BNPVOUT UP NJOJNJTJOH QSJWBUF BTTFU JODPNF UIFSFCZ GVSUIFSJOH UIF OFFE UP àOBODF EFàDJUT XJUI NPSF QVCMJD EFCU

*ODSFBTJOH BTTFU JODPNF JNQMJFT FJUIFS JODSFBTJOH BDDVNVMBUJPO PS JOWFTUNFOU JODPNF PS CPUI #VU BT XF IBWF BSHVFE BCPWF BDDVNVMBUJPO JT BMSFBEZ BU IJTUPSJD IJHIT JO UIF SFHJPO BOE JO UIF IJTUPSZ PG UIF XPSME FDPOPNZ -JLFXJTF UIF MFWFM PG FGGFDUJWF QVCMJD JOEFCUFEOFTT JT BMSFBEZ IJHI BT $IJOBhT SFDFOU TPWFSFJHO SBUJOH "O &%)&$3JTL *OTUJUVUF 1VCMJDBUJPO


.BZ



EPXOHSBEF TVHHFTUT *U GPMMPXT UIBU UIF GVOEBNFOUBM JTTVF JT POF PG JOUFSNFEJBUJPO *O UVSO JODSFBTJOH JOWFTUNFOU JODPNF UP NFFU DVSSFOU BOE GVUVSF DPOTVNQUJPO PCKFDUJWFT SBJTFT UXP NPSF DIBMMFOHFT JO &BTU "TJB ! !

"O JOWFTUNFOU DIBMMFOHF BTTFU BMMPDBUJPO " SFHVMBUJPO DIBMMFOHF JNQSPWJOH UIF EFTJHO PG QFOTJPO QMBOT UP BUUSBDU QSJWBUF TBWJOHT BOE EFMJWFS BEFRVBUF TPMVUJPOT

*O UIF OFYU TFDUJPO

XF CSJFáZ EJTDVTT UIF àSTU DIBMMFOHF CFGPSF GPDVTJOH PO UIF TFDPOE DIBMMFOHF JO UIF SFTU PG UIJT QBQFS

'JOBODJBM SFQSFTTJPO *U JT B XFMMEPDVNFOUFE GFBUVSF PG UIF TP DBMMFE z&BTU "TJBO NJSBDMFh UIBU HPWFSONFOUT BMM PWFS UIF SFHJPO FOHBHF JO NPSF PS MFTT CFOJHOzàOBODJBM SFQSFTTJPOh 1BHF 'PSNBMMZ TQFBLJOH àOBODJBM SFQSFTTJPO DPOTJTUT PG BSUJàDJBMMZ NBJOUBJOJOH JOUFSFTU SBUFT CFMPX UIFJS NBSLFU FRVJMJCSJVN 4IBX .D,JOOPO 3FJOIBSU BOE 4CSBODJB JEFOUJGZ B OVNCFS PG DIBOOFMT UISPVHI XIJDI àOBODJBM SFQSFTTJPO JT FYFSDJTFE JODMVEJOH !

!

5IF JOWFTUNFOU DIBMMFOHF 5IF NBDSPFDPOPNJD DPOUFYU JO XIJDI UIF JOWFTUNFOU PG QFOTJPO TBWJOHT NVTU UBLF QMBDF JT TQFDJàD UP UIF SFHJPO &BTU "TJBhT FDPOPNJFT IBWF HSPXO BDDPSEJOH UP B NPEFM UIBU IBT GBWPVSFE FYQPSUT BOE JOWFTUNFOU BOE IBT MFE UP XFMMEPDVNFOUFE BOE FOEVSJOH EJTUPSUJPOT PG FDPOPNJD BOE àOBODJBM TZTUFNT 8IJMF UIF TPDBMMFE &BTU "TJBO FDPOPNJD EFWFMPQNFOU NPEFM IBT CFFO FYUSFNFMZ TVDDFTTGVM BU EFMJWFSJOH GBTU HSPXUI BOE EFWFMPQNFOU JO UIF SFHJPO JO UIF MPOH SVO XIJDI JT UIF SFMFWBOU IPSJ[PO GPS QFOTJPO JOWFTUNFOU UIF EJTUPSUJPOT UIBU IBWF CFFO JOUSPEVDFE JO UIF FDPOPNZ DBO CFDPNF WFSZ EJGàDVMU UP SFWFSTF 5IFTF TUSVDUVSBM àOBODJBM JNCBMBODFT DBO UIFO NBLF UIF JOWFTUNFOU PG &BTU "TJBhT QFOTJPO TBWJOHT WFSZ DIBMMFOHJOH

!

!

!

%JSFDU PS JOEJSFDU DPOUSPM PWFS JOUFSFTU SBUFT TVDI BT JOUFSFTU PO HPWFSONFOU EFCU BOE EFQPTJU SBUFT (PWFSONFOU PXOFSTIJQ PS DPOUSPM PG EPNFTUJD CBOLT BOE àOBODJBM JOTUJUVUJPOT 3FMBUJWFMZ IJHI CBOL SFTFSWF SFRVJSF NFOUT $SFBUJPO PG B DBQUJWF EPNFTUJD NBSLFU GPS HPWFSONFOU EFCU BDIJFWFE CZ SFRVJSJOH EPNFTUJD CBOLT UP IPME HPWFSONFOU EFCU WJB DBQJUBM SFRVJSFNFOUT PS CZ QSPIJCJUJOH PS EJTJODFOUJWJTJOH BMUFSOBUJWF PQUJPOT UIBU JOTUJUVUJPOT NJHIU PUIFSXJTF QSFGFS (PWFSONFOU SFTUSJDUJPOT PO UIF USBOTGFS PG BTTFUT BCSPBE UISPVHI UIF JNQPTJUJPO PG DBQJUBM DPOUSPMT

5IFTF DIBOOFMT PG àOBODJBM SFQSFTTJPO BSF BMM BDUJWF UP TPNF EFHSFF JO &BTU "TJBO FDPOPNJFT 1BUSJDL BOE 1BSL

EPDVNFOU UIF IJTUPSJDBM VTF PG àOBODJBM SFQSFTTJPO JO +BQBO ,PSFB BOE 5BJXBO *O UBOEFN XJUI EJSFDUFE DBQJUBM BMMPDBUJPO UISPVHI UIF CBOLJOH TZTUFN JO UIF DPOUFYU PG BO BHHSFTTJWF JOEVTUSJBM QPMJDZ UIJT QPMJDZ IBT CFFO B TUBQMF PG UIF +BQBOFTF EFWFM PQNFOU NPEFM BOE IBT BMTP CFFO SFQMJDBUFE



.BZ



JO UIF SFTU PG UIF SFHJPO FTQFDJBMMZ JO ,PSFB BOE $IJOB BT àHVSF àHVSF JMMVTUSBUFT +PIBOTTPO BOE 8BOH QSPWJEF BO FNQJSJDBM DPOàSNBUJPO PG UIF DPOUJOVFE BOE VOJRVF MFWFM PG àOBODJBM SFQSFTTJPO JO &BTU BOE 4PVUI &BTU "TJB TFF BMTP 4IJI B GPS B EFUBJMFE BOBMZTJT PG UIF $IJOFTF DBTF 'JOBODJBM SFQSFTTJPO BDUT BT B GPSN PG UBY PO TBWFST BOE TVCTJEZ GPS CPSSPXFST 1FUUJT *U IBT GBS SFBDIJOH DPOTFRVFODFT XIJDI EJSFDUMZ BGGFDU TBWJOH CFIBWJPVS BOE UIF JOWFTUNFOU PG QFOTJPO BTTFUT 5IF àSTU DPOTFRVFODF JT UP NBLF UIF SFUVSO PO DBTI BOE àYFE JODPNF TFDVSJUJFT WFSZ MPX BOE FWFO OFHBUJWF JO SFBM UFSNT 8IJMF UIJT MJHIUFOT UIF EFCU CVSEFO PG UIF TUBUF TQPOTPSFE TFDUPS JF àSNT UIBU IBWF QSJWJ MFHFE BDDFTT UP DSFEJU BOE UIBU PG UIF QVCMJD TFDUPS JUTFMG JU BMTP GPSDFT IPVTFIPMET UP TBWF NPSF 5IJT DPVOUFSJOUVJUJWF SFTVMUT TQSJOHT GSPN UIF TPDBMMFE zUBSHFU TBWJOH IZQPUIFTJTh CZ XIJDI IPVTFIPMET FOHBHF JO BO JOUVJUJWF GPSN PG BTTFUMJBCJMJUZ NBOBHFNFOU VOEFS UIJT IZQPUIFTJT IPVTFIPMET IBWF NPSF PS MFTT QSFDJTF FYQFOEJUVSF UBSHFUT JO NJOE VOJWFSTJUZ GFFT IPVTF PS DBS QVSDIBTF SBJOZ EBZ GVOE FUD BOE BDDVNVMBUF BDDPSEJOHMZ *U GPMMPXT UIBU UIF MPXFS UIF SFUVSO PO TBWJOHT UIF NPSF UIFZ BDDVNVMBUF FWFO XIFO SFUVSOT BSF OFHBUJWF /BCBS UFTU UIF UBSHFU TBWJOH IZQPUIFTJT VTJOH QBOFM EBUB GPS $IJOBhT QSPWJODFT PWFS UIF QFSJPE EVSJOH XIJDI VSCBO IPVTFIPME TBWJOH SBUFT

JODSFBTFE GSPN PG EJTQPTBCMF JODPNF UP )F àOET UIBU XIFO UIF SFUVSO PO TBWJOH EFDMJOFT JU CFDPNFT NPSF EJGàDVMU UP NFFU B UBSHFU BOE IPVTFIPMET JODSFBTF UIFJS TBWJOH PVU PG DVSSFOU EJTQPTBCMF JODPNF UP DPNQFOTBUF *O FGGFDU BO JODSFBTF JO JOUFSFTU SBUFT JT FYQFDUFE UP CF MFBE UP B EFDSFBTF JO TBWJOHT BOE IJHIFS DPOTVNQUJPO JO $IJOB 1FUUJT )PXFWFS UIJT SFCBMBODJOH UFOET OPU UP PDDVS TJODF UIF FNCFEEFE TVCTJEZ DSFBUFE CZ àOBODJBM SFQSFTTJPO CFDPNFT JODSFBTJOHMZ EJGàDVMU UP SFWFSTF XJUI UIF QBTTBHF PG UJNF 7JUUBT BOE $IP

NBLF UIJT BSHVNFOU JO UIF DBTF PG +BQBO BOE 1FUUJT JO UIF DBTF PG $IJOB 5IF TFDPOE JNQPSUBOU DPOTFRVFODF PG àOBODJBM SFQSFTTJPO JT JUT DPOUSJCVUJPO UP UIF CVJMEVQ PG FYDFTT TBWJOHT JO UIF FDPOPNZ XIJDI XF EJTDVTT JO TFDUJPO &YDFTT TBWJOHT JNQMZ B EZOBNJDBMMZ JOFGà DJFOU FDPOPNZ JF BO FDPOPNZ XIJDI GBJMT UP CBMBODF JUT MPOH BOE TIPSUUFSN PCKFD UJWFT FGàDJFOUMZ BOE UIJT IBT EJSFDU JNQMJDB UJPOT GPS BTTFU BMMPDBUJPO 5IF UIJSE DPOTFRVFODF PG àOBODJBM SFQSFTTJPO JO DPNCJOBUJPO XJUI FYDFTT TBWJOHT JT UP MFBE UP UIF DPTUMZ NJTBMMP DBUJPO PG MBSHF BNPVOUT PG DBQJUBM #BOLT QMBZ B QJWPUBM SPMF JO DBQJUBM BMMPDBUJPO JO &BTU "TJB BOE UIF DPNCJOBUJPO PG MBSHF DBQUJWF EFQPTJUT XJUI JOUFSWFOUJPOJTU DSFEJU BMMPDBUJPO QPMJDJFT CZ UIF DFOUSBM HPWFSONFOU DBO MFBE UP UIF JTTVBODF PG BO FYDFTTJWF BNPVOU PG MPBOT



.BZ



&YDFTTJWF PSJHJOBUJPO MFBET UP UIF PWFS MFWFSBHJOH PG MBSHF QBSU PG UIF FDPOPNZ FH SFBM FTUBUF

XFMMEPDVNFOUFE FYDFTT DBQBDJUZ JO B OVNCFS PG JOEVTUSJBM TFDUPST FH TUFFM QSPEVDUJPO TIJQZBSET JOGSBT USVDUVSF FUD BOE FWFOUVBMMZ B CVJME VQ PG OPOQFSGPSNJOH MPBOT XIJDI DBO UISFBUFO UIF WJBCJMJUZ PG UIF FOUJSF àOBODJBM TFDUPS FH +BQBO JO ,PSFB JO $IJOB JO 5BJXBO JO FUD

5IF FYDFTTJWF MFWFSBHJOH PG UIF FDPOPNZ USBOTMBUFT JOUP BTTFU CVCCMFT BOE FYDFTTJWF WPMBUJMJUZ GPS JOWFTUNFOUT JO SJTLZ BTTFUT 8F SFUVSO UP UIJT QPJOU JO TFDUJPO

*OáBUJPO DPOUSPM JT BMTP TFFO BT B QBSBNPVOU QPMJUJDBM PCKFDUJWF JO $IJOB XIFSF IJHI JOáBUJPO JT BTTPDJBUFE XJUI TPDJBM VQIFBWBM FH JO

&YDFTT 4BWJOHT 5IVT &BTU "TJBhT IPVTFIPMET BSF VOEFS TUPPE UP TBWF zUPP NVDIh EVF UP UIFJS EPDVNFOUFE zUBSHFU TBWJOHh CFIBWJPVS BT XFMM BT QSFDBVUJPOBSZ SFBTPOT MJNJUFE TPDJBM TFDVSJUZ BOE MJNJUFE BDDFTT UP DSFEJU BOE JOTVSBODF )PXFWFS HPWFSONFOUT BOE àSNT FTQFDJBMMZ TUBUFDPOUSPMMFE àSNT IBWF BMTP BDDVNVMBUFE WBTU TBWJOHT -BSHF QVCMJD SFTFSWFT PS TBWJOHT BSF BOPUIFS DPOTFRVFODF PG UIF TPDBMMFE &BTU "TJBO EFWFMPQNFOU NPEFM BOE PG UIF SPMF PG FYQPSUT JO TVQQPSUJOH HSPXUI BOE JOWFTUNFOU BT àHVSF JMMVTUSBUFT JO UIF DBTF PG $IJOB #FDBVTF UIF FYQPSU TFDUPS QMBZT B EZOBNJD SPMF JO UIF EPNFTUJD FDPOPNZ UIF HPWFSO NFOUT PG &BTU "TJB IBWF CFFO LFFO UP QSFTFSWF UIF QSJDFDPNQFUJUJWFOFTT PG UIFJS FYQPSUT JO JOUFSOBUJPOBM NBSLFUT 8JUIPVU JOUFSWFOUJPO UIFJS JOJUJBM USBEF DVSSFOU BDDPVOU TVSQMVT XPVME MFBE UP BO JOáVY PG

MJRVJEJUZ JO UIF EPNFTUJD FDPOPNZ IJHIFS QSJDFT BOE XBHFT BOE FWFOUVBMMZ B IJHIFS SFBM SBUF PG FYDIBOHF XJUI LFZ USBEJOH QBSUOFST MFBEJOH UP B SFCBMBODJOH PG UIF DVSSFOU BDDPVOU 5P QSFWFOU B SFCBMBODJOH PG UIF DVSSFOU BDDPVOU EPNFTUJD JOáBUJPO NVTU CF LFQU VOEFS DPOUSPM 5IVT &BTU "TJBhT NPOFUBSZ BVUIPSJUJFT SPVUJOFMZ FOHBHF JO TUFSJMJ TBUJPO QSPHSBNNFT CZ XIJDI UIFZ FYDMVEF OFX GPSFJHO FYDIBOHF GSPN DJSDVMBUJPO JO UIF EPNFTUJD FDPOPNZ UIVT CVJMEJOH MBSHF GPSFJHO FYDIBOHF SFTFSWFT IFODF B NBUDIJOH DBQJUBM BDDPVOU EFàDJU

BOE SFQMBDF UIFTF MJRVJEJUJFT XJUI SFMBUJWFMZ JMMJRVJE BOE MPXZJFMEJOH hTUFSJMJTBUJPO CPOETh XIJDI UIF HPWFSONFOU JNQPTFT PO UIF àOBODJBM TFDUPS JODMVEJOH QVCMJD QFOTJPO SFTFSWFT "MUFSOBUJWFMZ UIF HPWFSONFOU DBO zGSFF[Fh B GSBDUJPO PG UIF NPOFZ TVQQMZ CZ JODSFBTJOH UIF SFTFSWF SBUJP PG DPNNFSDJBM CBOLT TFF :JOH FU BM GPS BO FNQJSJDBM BOBMZTJT PG UIF JNQBDU PG TUFSJMJTBUJPO PO DBQJUBM NPCJMJUZ JO &BTU "TJB 4USVDUVSBM FYDFTT TBWJOHT SFTVMU GSPN TVDI QPMJDJFT XIJDI QSFWFOU MJRVJEJUJFT GSPN DJSDV MBUJOH 5P NJOJNJTF UIF DPTU PG TUFSJMJTBUJPO JOUFSFTU SBUFT IBWF UP CF LFQU EVSBCMZ MPX UIVT SFFOGPSDJOH àOBODJBM SFQSFTTJPO TFF 3BKBO BOE #FWFSJOPUUJ GPS B GPSNBMJ TBUJPO " UZQJDBM TZNQUPN PG FYDFTT TBWJOHT JT JUT JNQBDU PO UIF WFMPDJUZ PG NPOFZ UIBU JT UIF SBUJP PG OPNJOBM (%1 UP UIF NPOFZ TVQQMZ *O B zOPSNBMh FDPOPNZ UIF WFMPDJUZ



.BZ



'JHVSF /POJNBM BOE SFBM EFQPTJU SBUFT JO &BTU "TJB Japan

Korea

10%

25% 20%

5%

15% 0%

10% 5%

-5%

0%

-10%

-5% -15%

-10% -15%

-20% Deposit rate

Deposit rate

Real deposit rate

Taiwan

Hong Kong

0.2

10%

0.1

8%

0

Real Deposit Rate

6% 1961

1966

1971

1976

1981

1986

1991

1996

2001

2006

2011

-0.1

4% 2%

-0.2 0% -0.3

-2%

-0.4

-4%

-0.5

-6% -8%

-0.6 Deposit rate

Real deposit rate

Deposit rate

Real deposit rate

China 15%

10%

5%

0%

-5%

-10%

-15% Deposit rate

Real deposit rate

4PVSDF $&*$ BVUIPSTh DPNQVUBUJPOT

PG NPOFZ JT TUBCMF JO UIF MPOH SVO BOE UFOET UP GPMMPX UIF CVTJOFTT DZDMF JO UIF TIPSU SVO *O &BTU "TJB IPXFWFS JU IBT CFFO PO B EFDSFBTJOH USFOE GPS B EFDBEFT JOEJDBUJOH WBTU BNPVOUT PG DBTI IPBSEJOH JO UIF FDPOPNZ BT JMMVTUSBUFE JO àHVSF " EFDMJOJOH WFMPDJUZ PG NPOFZ JT TUSPOHMZ EFáBUJPOBSZ JO UIF MPOH SVO BT +BQBO BMTP JMMVTUSBUFT "TTFU CVCCMFT BOE IJHI WPMBUJMJUZ &YDFTT TBWJOHT BOE WFSZ MPX JOUFSFTU SBUFT BMTP UZQJDBMMZ MFBE UP FYDFTTJWF MFOEJOH "T NFOUJPOFE BCPWF UIF IJHI MFWFSBHF PG UIF

FDPOPNZ JT B TPVSDF PG WPMBUJMJUZ BOE NBZ BMTP MFBE UP BTTFU QSJDF CVCCMFT BOE DBQJUBM NJTBMMPDBUJPO 8BOH BNPOH PUIFST EPDVNFOU UIF TUSVDUVSBMMZ IJHIFS MFWFMT PG WPMBUJMJUZ FYQFSJ FODFE JO "TJBO TUPDL NBSLFUT BOE JMMVTUSBUFE JO UBCMF BOE àHVSFT z BOE -JLFXJTF BTTFU QSJDF CVCCMFT FTQFDJBMMZ JO UIF SFBM FTUBUF TFDUPS IBWF CFFO GSFRVFOUMZ FYQFSJFODFE JO UIF SFHJPO BT EPDVNFOUFE CZ 2VJHMFZ $IFO $PMMZOT BOE 4FNMBMJ (SFFO FU BM :JV FU BM "O &%)&$3JTL *OTUJUVUF 1VCMJDBUJPO


.BZ



'JHVSF MPOHUFSN WFMPDJUZ PG NPOFZ JO &BTU "TJB BOE UIF 64

3.5

3

2.5

2

1.5

1

0

1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

0.5

Japan

Hong Kong

China

Korea

US

4PVSDF $&*$ BOE BVUIPSTh DPNQVUBUJPOT

7FMPDJUZ PG NPOFZ =

QSJDF MFWFM × SFBM PVUQVU NPOFZ TVQQMZ

'JHVSF +BQBOFTF TUPDL BOE MJTUFE SFBM FTUBUF JOEJDFT

400 350 300 250 200 150 100

0

1/1/80 1/11/80 1/9/81 1/7/82 1/5/83 1/3/84 1/1/85 1/11/85 1/9/86 1/7/87 1/5/88 1/3/89 1/1/90 1/11/90 1/9/91 1/7/92 1/5/93 1/3/94 1/1/95 1/11/95 1/9/96 1/7/97 1/5/98 1/3/99 1/1/00 1/11/00 1/9/01 1/7/02 1/5/03 1/3/04 1/1/05 1/11/05 1/9/06 1/7/07 1/5/08 1/3/09 1/1/10 1/11/10 1/9/11 1/7/12

50

TOPIX - PRICE INDEX

FTSE JAPAN REIS - PRICE INDEX

S&P 500 COMPOSITE - PRICE INDEX

4PVSDF %BUBTUSFBN BVUIPSTh DPNQVUBUJPOT



.BZ



'JHVSF ,PSFBO TUPDL JOEFY

500 450 400 350 300 250 200 150 100

0

1/1/80 1/11/80 1/9/81 1/7/82 1/5/83 1/3/84 1/1/85 1/11/85 1/9/86 1/7/87 1/5/88 1/3/89 1/1/90 1/11/90 1/9/91 1/7/92 1/5/93 1/3/94 1/1/95 1/11/95 1/9/96 1/7/97 1/5/98 1/3/99 1/1/00 1/11/00 1/9/01 1/7/02 1/5/03 1/3/04 1/1/05 1/11/05 1/9/06 1/7/07 1/5/08 1/3/09 1/1/10 1/11/10 1/9/11 1/7/12

50

KOREA SE KOSPI 200 - PRICE INDEX



'JHVSF 5BJXBOFTF TUPDL BOE MJTUFE SFBM FTUBUF JOEJDFT

350

300

250

200

150

100

0

1/1/80 1/11/80 1/9/81 1/7/82 1/5/83 1/3/84 1/1/85 1/11/85 1/9/86 1/7/87 1/5/88 1/3/89 1/1/90 1/11/90 1/9/91 1/7/92 1/5/93 1/3/94 1/1/95 1/11/95 1/9/96 1/7/97 1/5/98 1/3/99 1/1/00 1/11/00 1/9/01 1/7/02 1/5/03 1/3/04 1/1/05 1/11/05 1/9/06 1/7/07 1/5/08 1/3/09 1/1/10 1/11/10 1/9/11 1/7/12

50

TAIWAN SE WEIGHED TAIEX - PRICE INDEX

FTSE TAIWAN REIS - PRICE INDEX





.BZ



5BCMF 3JTL BOE SFUVSOT DIBSBDUFSJTUJDT PG NBKPS TUPDL NBSLFU JOEJDFT JO &BTU "TJB

Nominal returns

60-year 40-year 20-year 15-year 10-year 7-year 5-year 3-year

Risk


18.7% 15.4% 18.3% 18.0% 18.0% 19.2% 19.8% 18.3%

33.4% 27.0% 25.8% 22.3% 24.6% 26.4% 20.5%

35.0% 28.1% 26.0% 22.0% 23.2% 24.5% 18.0%

Real returns


2.7% 0.0% -2.8% -3.5% -1.3% -8.9% -14.9% -5.3%

5.9% 3.9% 4.2% 7.5% 3.5% -1.3% -2.9%

Sharpe ratios

Equity benchmarks (annualised, monthly data) Japan HK Taiwan Korea China USA 5.5% 2.0% 9.2% 9.7% 6.6% -2.7% 6.5% 3.5% 6.8% 7.5% 6.3% -3.6% 4.9% -0.1% 11.4% 3.8% 2.9% -1.5% 8.6% 4.6% 11.7% 3.2% 4.8% -9.1% 6.0% 3.2% 7.7% 9.5% 2.3% -15.1% 1.6% -1.7% 6.2% -5.1% -0.1% -6.0% -0.2% -0.8% 6.6% -11.7% 10.9%


-0.17 -0.21 -0.09 -0.48 -0.77 -0.33

0.09 0.05 0.29 0.15 -0.02 -0.04

49.8% 28.1% 29.5% 33.0% 32.7% 18.9%

15.7% 15.1% 16.3% 15.0% 16.7% 18.0% 15.6%

5.5% 1.8% -1.1% 3.5% 1.8% -1.7% -1.3%

3.0% 2.8% 8.0% 2.0% 8.5% 0.6% 4.6% 6.4% 2.8% -8.8% 3.3% -14.3%

2.2% 3.7% 0.5% 2.3% -0.3% -2.3% 9.4%

-0.01 -0.10 0.13 0.06 -0.14 -0.11

0.03 0.02 0.19 -0.26 -0.75

0.17 0.02 0.21 0.04 -0.11 0.61

31.0% 33.0% 22.0% 21.4% 22.5% 17.8%

0.36 0.19 0.10 0.21


+BQBOhT FYQFSJFODF JT BHBJO B DBVUJPOBSZ UBMF GPS UIF SFTU PG &BTU "TJB 5IF DPNCJOFE SFTVMU PG B TUPDL NBSLFU BOE B SFBM FTUBUF CVCCMF BOE UIF FOTVJOH CBOLJOH DSJTJT IBWF MFE UP B zCBMBODF TIFFU SFDFTTJPOh ,PP

UIBU IBT HSFBUMZ IBNQFSFE UIF BCJMJUZ PG EPNFTUJD JOWFTUPST UP BDDFTT SJTL QSFNJB BOE B DSFBUFE B zMJRVJEJUZ USBQh DPOEFNOJOH NPOFUBSZ QPMJDZ UP LFFQ JOUFSFTU SBUFT OFBS [FSP BT BSHVFE CZ 3PBDI

"O BTTFU BMMPDBUJPO QV[[MF *O B OVUTIFMM UIF &BTU "TJBO FDPOPNJD EFWFM PQNFOU NPEFM DSFBUFT TQFDJàD DIBMMFOHFT UP JOWFTU MPOHUFSN QFOTJPO BTTFUT WFSZ MPX OFHBUJWF SFUVSOT PO MPX SJTL BTTFUT BOE WFSZ IJHI QFSIBQT FYDFTTJWF WPMBUJMJUZ PO SJTLZ BTTFUT 8IJMF SJTL NJTQSJDJOH JO CPUI àYFE JODPNF BOE FRVJUZ TQIFSFT IBNQFST FGàDJFOU BTTFU BMMPDBUJPO FGGPSUT UIF BCTFODF PG TUSBJHIUGPSXBSE NFBOSFWFSTJPO JO UIF TUPDL NBSLFU FH +BQBO JT B NBKPS JNQFE



.BZ



'JHVSF )POH ,POH BOE $IJOFTF TUPDL BOE MJTUFE SFBM FTUBUF JOEJDFT

300

250

200

150

100

0

1/1/80 1/11/80 1/9/81 1/7/82 1/5/83 1/3/84 1/1/85 1/11/85 1/9/86 1/7/87 1/5/88 1/3/89 1/1/90 1/11/90 1/9/91 1/7/92 1/5/93 1/3/94 1/1/95 1/11/95 1/9/96 1/7/97 1/5/98 1/3/99 1/1/00 1/11/00 1/9/01 1/7/02 1/5/03 1/3/04 1/1/05 1/11/05 1/9/06 1/7/07 1/5/08 1/3/09 1/1/10 1/11/10 1/9/11 1/7/12

50

CHINA A-DS Real Estate - PRICE INDEX

SHANGHAI SE A SHARE - PRICE INDEX

HANG SENG - PRICE INDEX

FTSE HONG KONG RI - PRICE INDEX



JNFOU UP TUSBUFHJFT CBTFE PO FYQMPJUJOH TVDI QIFOPNFOB 3JTL DPOUSPM DBO BMTP CFDPNF MJNJUFE XIFO UIF SJTLT UP JOTVSF PS IFEHF BSF OPU USBOTJFOU CVU UIF QSPEVDU PG TUSVDUVSBM NBSLFU EJTUPS UJPOT 5IF EJGàDVMUZ XJUI UIJT FDPOPNJD EFWFM PQNFOU NPEFM JT UIBU JU CFDPNFT WFSZ IBSE UP SFWFSTF 5IF TVCTJEJFT UP àSNhT BOE UIF HPWFSONFOUhT DPTUT PG DBQJUBM CFDPNF WFSZ BEEJDUJWF #FDBVTF EFCU JT DIFBQ EFCU JT FWFSZXIFSF BOE UIF TMJHIUFTU JODSFBTF JO JOUFSFTU SBUFT B NPWF UPXBSET FOEJOH àOBODJBM SFQSFTTJPO DPVME DSFBUF TJHOJG JDBOU EBNBHF JO QBSUJDVMBS UP TVCTPWFSFJHO QVCMJD TFDUPS CBMBODF TIFFUT SFTVMUJOH JO TVCTUBOUJBM TPWFSFJHO SJTL GPS QFOTJPO GVOET UIBU PGUFO IPME NPSF UIBO IBMG PG UIFJS BTTFUT JO EPNFTUJD HPWFSONFOU CPOET

'PS FYBNQMF UIF "QSJM EPXOHSBEF PG $IJOBhT TPWFSFJHO SBUJOH CZ UXP SBUJOH BHFODJFT 3FVUFST TQSJOHT GSPN DPODFSOT UIBU MPDBM HPWFSONFOU EFCU JT FTUJNBUFE UP IBWF SFBDIFE BU MFBTU PG (%1 TFF 4IJI C BOE UPUBM QVCMJD EFCU BU MFBTU PG (%1 /FWFSUIFMFTT $IJOBhT MJGFDZDMF EFàDJUT IBWF POMZ KVTU CFHVO UP SJTF BOE UIF JNQMJDJU MJBCJMJUJFT FNCFEEFE JO UIF SJTF PG QVCMJD IFBMUIDBSF BOE QFOTJPOT DBO CF FYQFDUFE UP CF WFSZ TJHOJàDBOU

5IF 3FHVMBUJPO $IBMMFOHF #FZPOE UIF JOWFTUNFOU DIBMMFOHF XIJDI XF PVUMJOFE BCPWF UIF SFHVMBUJPO DIBMMFOHF JT UP DSFBUF UIF DPOEJUJPOT GPS B CFUUFS BDDVNVMBUJPO BOE NBOBHFNFOU PG &BTU "TJBhT TBWJOHT JO UIF SFHJPO UP NFFU UIF BHHSFHBUF BOE JOEJWJEVBM MJBCJMJUJFT ESJWFO CZ



.BZ



QPQVMBUJPO BHFJOH XIJMF NBJOUBJOJOH àTDBM TUBCJMJUZ *O B OVUTIFMM GPS DPVOUSJFT MJLF ,PSFB PS 5BJXBO UIF RVFTUJPO JT UP LOPX IPX OPU UP FOE VQ MJLF +BQBO *U DPVME CF BSHVFE UIBU UIF DVSSFOU TJUVBUJPO PG UIF +BQBOFTF QFOTJPO TZTUFN BOE PG UIF +BQBOFTF FDPOPNZ JT OPU POMZ UIF SFTVMU PG CBE EFNPHSBQIJDT CVU BMTP QFSIBQT NPTUMZ UIF SFTVMU PG CBE SFHVMBUJPO PG QFOTJPO XFBMUI BDDVNVMBUJPO BOE JOWFTUNFOU NBOBHFNFOU

8F GPDVT PO UIF QFOTJPO SFTFSWF GVOET UIBU CBDL QVCMJD 1":( TZTUFNT JO TFDUJPO CFGPSF FYBNJOJOH DPSQPSBUF BOE PDDVQB UJPOBM EFàOFECFOFàU QMBOT JO TFDUJPO BOE àOBMMZ EFàOFEDPOUSJCVUJPO QMBOT JO TFDUJPO

'SPN B SFHVMBUPSZ TUBOEQPJOU &BTU "TJB OFFET UP JODFOUJWJTF BEFRVBUF BDDVNVMBUJPO JO JOWFTUNFOU WFIJDMFT EFEJDBUFE UP NFFUJOH DPOTVNQUJPO UBSHFUT "T XF BSHVF JO UIF SFTU PG UIJT QBQFS GFX PQUJPOT DVSSFOUMZ FYJTU GPS JOEJWJEVBMT UP EP TP XIJDI FYQMBJOT UIF MBDL PG JOUFSFTU JO QFOTJPO TDIFNFT UIBU SFNBJO GPS UIF NPTU QBSU B GPSN PG EFGFSSFE DPNQFOTBUJPO UIBU EPFT OPU QBZ B QFOTJPO JF SFUJSFNFOU JODPNF -JLFXJTF UIF MBSHFTU QPPM PG BTTFUT QFOTJPO SFTFSWFT BOE TPDJBM TFDVSJUZ SFTFSWFT XIFO UIFZ FYJTU FH $IJOB BSF OPU NBOBHFE UP BEESFTT UIF HSPXJOH MJGFDZDMF EFàDJUT UIBU DIBSBDUFSJTF BO BHFJOH TPDJFUZ EFTQJUF UIF GBDUT UIBU UIFTF FWPMVUJPOT BSF JO HSFBU QBSU QSFEJDUBCMF *O UIF SFTU PG UIJT QBQFS XF EJTDVTT JO NPSF EFUBJMT UIF SPMF BOE JTTVFT BGGFDUJOH EJGGFSFOU GVOEFE QFOTJPO TZTUFNT JO &BTU "TJB BOE IPX UIFZ DBO CF SFBMJTUJDBMMZ JNQSPWFE



.BZ




.BZ



#MVOEFMM8JHOBMM FU BM QPJOU PVU UIF BCTFODF PG B VOJWFSTBM EFàOJUJPO PG TPWFSFJHO XFBMUI GVOET 48'T BOE QVCMJD QFOTJPO SFTFSWF GVOET 13'T

UIBU JOJUJBMMZ QBJE PVU QFOTJPOT UP SFMBUJWFMZ GFX SFUJSFFT IFODF UIF BDDVNVMBUJPO PG B TVSQMVT XIJDI DBO BMTP CF ESBXO UP PGGTFU B QVCMJD QFOTJPO EFàDJU BU B MBUFS TUBHF

48'T BSF HPWFSONFOUPXOFE GVOET XIJDI DBO TFSWF B WBSJFUZ PG UBDUJDBM PS TUSBUFHJD OBUJPOBM PCKFDUJWFT TVDI BT UIF EJWFS TJàDBUJPO PG GPSFJHO SFTFSWF IPMEJOHT PS UIF QSPUFDUJPO GSPN áVDUVBUJOH DPNNPEJUZ QSJDFT FH JO PJMQSPEVDJOH DPVOUSJFT

5IF FYJTUFODF PG MBSHF QFOTJPO SFTFSWFT JNNFEJBUFMZ SBJTFT UIF RVFTUJPO PG UIFJS NBOBHFNFOU *O QBSUJDVMBS JG QVCMJD QFOTJPO TZTUFNT DBO CF FYQFDUFE UP DPNF VOEFS TJHOJàDBOU àOBODJBM QSFTTVSF EVSJOH UIF MBTU QIBTF PG UIF EFNPHSBQIJD USBOTJUJPO UIF DIPJDFT NBEF XJUI SFHBSE UP UIF NBOBHFNFOU PG UIFTF SFTFSWFT NBZ DPOUSJCVUF UP TJHOJàDBOU EJGGFSFODFT PG PVUDPNF

*O UIJT QBQFS QFOTJPO SFTFSWF GVOET BSF VOEFSTUPPE UP CF B QBSUJDVMBS DBTF PG TPWFSFJHO XFBMUI GVOET 48'T XJUI BO FYQMJDJU PCKFDUJWF UP TVQQPSU UIF àOBODJBM WJBCJMJUZ PG B QFOTJPO TZTUFN UZQJDBMMZ QVCMJD QBZBTZPVHP 1":( QFOTJPOT 13'T DBO FJUIFS CF DPOUSPMMFE EJSFDUMZ CZ UIF DFOUSBM HPWFSONFOU PS CZ UIF TPDJBM TFDVSJUZ TZTUFN TPDJBM TFDVSJUZ SFTFSWF GVOET 443'T *O UIF GPSNFS DBTF àOBODJOH VTVBMMZ DPNFT GSPN EJSFDU DPOUSJCVUJPOT PG àTDBM SFWFOVFT XIJMF JO UIF MBUUFS UIPTF DPOUSJCVUJPOT BSF VTVBMMZ BEEJUJPOBM FNQMPZNFOUSFMBUFE àOBODJOHT *O &BTU "TJB UIF NBKPSJUZ PG QFOTJPOSFMBUFE BTTFUT BSF IFME JO TVDI SFTFSWF GVOET BTTFU QPPMT CBDLJOH UIF PCMJHBUJPOT PG 1":( TDIFNFT XJUI FYQMJDJU PS JNQMJDJU QVCMJD TFDUPS TVQQPSU 5IFTF SFTFSWFT BSF UIF SFTVMU PG UIF GBTU EFNPHSBQIJD USBOTJUJPO FYQFSJFODFE JO UIF SFHJPO BOE EJTDVTTFE JO TFDUJPO 5IF SBQJE HSPXUI PG UIF XPSLGPSDF SFMBUJWF UP UIF UPUBM QPQVMBUJPO MFE UP TJHOJàDBOU DPOUSJ CVUJPO HSPXUI JO OBUJPOBM QFOTJPO TZTUFNT

*O FGGFDU UIF FYJTUFODF PG TJHOJàDBOU SFTFSWFT SFQSFTFOUT B VOJRVF PQQPS UVOJUZ GPS UIF HPWFSONFOUT PG &BTU "TJB UP BEESFTT BOE UP JNQSPWF PO UIF LOPXO TIPSUDPNJOHT PG QVCMJD QFOTJPOT JO SBQJEMZ BHFJOH DPVOUSJFT 4FJ[JOH UIJT PQQPSUVOJUZ XJMM SFRVJSF NBLJOH GVOEBNFOUBM DIBOHFT JO UIF XBZ SFTFSWF GVOET IBWF CFFO DPOUSPMMFE BOE NBOBHFE GPS UIF QBTU EFDBEFT BOE BEPQUJOH JOWFTUNFOU NBOBHFNFOU QSPDFTTFT BOE UPPMT UIBU XJMM BMMPX QFOTJPO SFTFSWFT UP BDIJFWF XIBU TIPVME CF UIFJS TPMF PCKFDUJWF UP TVQQPSU UIF QVCMJD QFOTJPO TZTUFN CZ NJOJNJTJOH UIF CVSEFO PG QFOTJPO MJBCJMJUJFT PO GVUVSF HFOFSBUJPOT XIJMF FOTVSJOH BEFRVBUF QVCMJD QFOTJPO QSPWJTJPO *O UIJT DIBQUFS XF SFWJFX UIF SFMBUJWF JNQPSUBODF BOE EFWFMPQNFOU PG QFOTJPO SFTFSWF GVOET FYBNJOF UIFJS DVSSFOU MPOH UFSN PCKFDUJWFT BOE TIPSUUFSN DPOTUSBJOUT



.BZ



BOE SFWJFX UIFJS BTTFU BMMPDBUJPOT BOE QFSGPSNBODF 8F BSHVF UIBU UIF GBJMVSF UP TQFDJGZ DMFBS MPOHUFSN PCKFDUJWFT BOE BEFRVBUF TIPSU UFSN DPOTUSBJOUT JT MFBEJOH UP TVCPQUJNBM JOWFTUNFOU EFDJTJPOT 8IJMF UIFSF BSF TJHOT UIBU QFOTJPO SFTFSWFT BSF CFUUFS NBOBHFE UIBO UIFZ VTFE UP CF JO UIF SFHJPO TDJFO UJàD SJHPVS JT TUJMM MBDLJOH BOE JNQMF NFOUJOH CFUUFS QSBDUJDFT DPVME CF JOTUSV NFOUBM UP JNQSPWF UIF àOBODJBM WJBCJMJUZ PG QVCMJD QFOTJPO TZTUFNT JO UIF DPOUFYU PG UIF HSPXJOH MJGFDZDMF EFàDJUT EFTDSJCFE JO TFDUJPO *O QBSUJDVMBS XF PCTFSWF UIBU SFTFSWF QSFTFSWBUJPO SFNBJOT UIF NBJO PCKFDUJWF PG OVNFSPVT SFTFSWF GVOET VOEFS UIF QSFNJTF UIBU SFTFSWFT BSF JOUFOEFE UP QFBL BOE FWFOUVBMMZ CF FOUJSFMZ TQFOU PO QFOTJPO CFOFàUT *OTUFBE &BTU "TJBhT QFOTJPO SFTFSWFT CFDBVTF UIFZ BSF MBSHF TIPVME CF VTFE UP BEESFTT QVCMJD QFOTJPO MJBCJMJUJFT JO B TZTUFNBUJD BOE EZOBNJD NBOOFS *NQSPWJOH UIF NBOBHFNFOU PG QFOTJPO SFTFSWFT HJWFO UIFJS EPNFTUJD JOáVFODF TIPVME BMTP QMBZ B SPMF JO TFUUJOH BOE FODPVSBHJOH CFTU QSBDUJDFT JO QFOTJPO BTTFU NBOBHFNFOU JO HFOFSBM JO DPSQPSBUF BOE JOEJWJEVBM QMBOT JO UIF SFHJPO *O XIBU GPMMPXT TFDUJPO

XF àSTU EFTDSJCF UIF SPMF PG QFOTJPO SFTFSWFT JO &BTU "TJB /FYU XF EJTDVTT UIF ESJWFST PG UIF MJBCJMJUZ QSPDFTT UP XIJDI SFTFSWF GVOET BSF FYQPTFE TFDUJPO

4FDUJPO EJTDVTTFT PCKFDUJWF TFUUJOH BOE TFDUJPO SFWJFXT UIF DPOTUSBJOUT JNQPTFE PO UIF JOWFTUNFOU QSPDFTT PG 13'T *O TFDUJPO XF EJTDVTT UIF SFTVMUJOH JOWFTUNFOU EFDJTJPOT UBLFO CZ 13'T JO &BTU "TJB 'JOBMMZ JO TFDUJPO XF EJTDVTT B OVNCFS PG QPUFOUJBM JNQSPWFNFOUT 4FDUJPO TVNNBSJTFT BOE DPODMVEFT

3FTFSWF 'VOET UIF MBSHFTU QFOTJPO BTTFUT PG &BTU "TJB 8JUI UIF FYDFQUJPO PG )POH ,POH BMM &BTU "TJBO DPVOUSJFT GFBUVSF POF PS TFWFSBM SFTFSWF GVOET DSFBUJOH EF GBDUP GVOEJOH PG UIF QFOTJPO PCMJHBUJPOT PG OBUJPOBM PS QVCMJD 1":( QFOTJPO TZTUFNT &BTU "TJBO QFOTJPO SFTFSWFT GFBUVSF BNPOHTU UIF MBSHFTU TVDI SFTFSWFT SFMBUJWF UP (%1 JO UIF XPSME TFF àHVSF 5IFZ SFQSFTFOU BCPVU POF UIJSE PG (%1 JO +BQBO PS ,PSFB CVU BNPVOU UP NVDI MFTT SFMBUJWF UP UIF TJ[F PG UIF FDPOPNZ JO 5BJXBO PS $IJOB BT TIPXO JO UBCMF 5IFTF SFTFSWFT BMTP SFQSFTFOU UIF MBSHFTU QPPM PG QFOTJPOSFMBUFE BTTFUT JO +BQBO ,PSFB 5BJXBO PS $IJOB BT àHVSF JMMVT USBUFT 5IFJS TJHOJàDBOU XFJHIU SFMBUJWF UP UPUBM QFOTJPO BTTFUT JT B TZNQUPN PG UIF VOEFSEFWFMPQNFOU PG PUIFS EFEJDBUFE BDDVNVMBUJPO DIBOOFMT GPS QFOTJPO TBWJOHT JO UIF SFHJPO BT EJTDVTTFE JO TFDUJPO )FODF 3FTFSWF GVOET DBO QMBZ B QJWPUBM SPMF JO UIF GVUVSF PG SFUJSFNFOU TBWJOH NBOBHFNFOU JO &BTU "TJB /FYU XF EFTDSJCF QFOTJPO SFTFSWF GVOET JO FBDI DPVOUSZ JO NPSF EFUBJM "O &%)&$3JTL *OTUJUVUF 1VCMJDBUJPO


.BZ



'JHVSF 1FOTJPO SFTFSWFT BT B QSPQPSUJPO PG UPUBM QFOTJPO BTTFUT JO 64%

Hong Kong (1)

$85

Japan (2)

$1,790

Taiwan

$60

$859

$25

China (3)

$389

Korea

$84

$321 0%

10%

20%

30%

40%

Pension Reserves

$33 50%

60%

70%

80%

90%

100%

Private Pension Assets

4PVSDF "OOVBM SFQPSUT 8PSME #BOL %FWFMPQNFOU *OEJDBUPST BVUIPSTh DPNQVUBUJPOT àHVSF JODMVEFT .VUVBM "JE "TTPDJBUJPOT àHVSF GSPN àHVSF

'JHVSF 1FOTJPO SFTFSWFT BT B QSPQPSUJPO PG (%1

Norway (2008)

128%

Japan (2011)

37%

Korea (2011)

29% 27%

Sweden (2008) USA (2008)

18%

Taiwan (2011)

13%

Canada (2008)

9%

New Zealand (2010)

8%

Russia (2008)

6%

Portugal (2008)

6%

Australia (2008)

6%

Spain (2008)

6%

China (2010)

6%

Belgium (2008)

5%

France (2009)

5% 2%

Chile (2008) 0%

20%

40%

60%

80%

100%

120%

140%

4PVSDF "OOVBM SFQPSUT 8PSME #BOL %FWFMPQNFOU *OEJDBUPST BVUIPSTh DPNQVUBUJPOT



.BZ



5BCMF 1VCMJD QFOTJPO SFTFSWF BTTFUT

Scheme Japan Employee Pension Insurance (EPI) National Pension Insurance (NPI) Mutual Aid Associations (MAAs) Korea National Pension Fund (NPF) Government Employees Pension System (GEPS) Korean Teachers Pension Fund (KTPF) Taiwan National Pension Insurance Fund (NPIF) Labour Insurance Fund (LIF) Labour Retirement Fund (LRF) *** closed to new members since 2005 Government Employee & School Staff Insurance (GESSI) Public Service Pension Fund (PSPF) China National Social Security Fund (NSSF) Urban Social Insurance (USI)

AUM (lcu bn)

% GDP

AUM (USD bn)

AUM (EUR bn)

as of

116,600 7,200 48,000

25% 2% 10%

1,215 75 500

938 58 386

2011 2011 2009

342,000 4,600 9,500

28% 0% 1%

308 4 9

238 3 7

2011 2011 2011

100 450 560

1% 3% 4%

3 15 19

3 12 15

2011 2011 2011

180 500

1% 4%

6 17

5 13

2011 2011

870 1,550

2% 4%

140 249

108 193

2011 2010

4PVSDF /PNVSB 5BLBZBNB D C .JOJTUSZ PG )FBMUI -BCPVS BOE 8FMGBSF 6SBUB /PNVSB /BUJPOBM *OTUJUVUF PG 1PQVMBUJPO BOE 4PDJBM 4FDVSJUZ 3FTFBSDI 5BLBZBNB C B *HOJUFT "TJB D .JOJTUSZ PG 4USBUFHZ 'JOBODF -FDLJF BOE 9JBP ;IFOH 0LTBOFO .PP 4IJ BOE .PL C /BUJPOBM 1FOTJPO 'VOE .PPO 4FPL FU BM 1IBOH ,JN BOE .PPO ,VP 5BLBZBNB .PPO 5PXFST 8BUTPO C B .BOEBUPSZ 1SPWJEFOU 'VOE 4DIFNFT "VUIPSJUZ B ,JN 4IBP +V &SOTU :PVOH

&BTU "TJBhT SFTFSWF GVOET &BTU "TJBhT SFTFSWF GVOET DBO CF CSPBEMZ DBUFHPSJTFE JOUP UXP HSPVQT !

!

1SJWBUFTFDUPS XPSLFST BSF DPWFSFE CZ UIF GPMMPXJOH NBOEBUPSZ TDIFNFT ,PSFBO /BUJPOBM 1FOTJPO 'VOE /1'

+BQBOFTF (PWFSONFOU 1FOTJPO *OWFTUNFOU 'VOE (1*'

$IJOFTF 6SCBO 4PDJBM *OTVSBODF QPPMT 64*

BOE 5BJXBOFTF -BCPVS *OTVSBODF 'VOE -*' 1VCMJDTFDUPS XPSLFST BSF DPWFSFE CZ UIF GPMMPXJOH NBOEBUPSZ TDIFNFT ,PSFBO (PWFSONFOU &NQMPZFFT 1FOTJPO 4ZTUFN (&14 BOE 5FBDIFST 1FOTJPO 'VOE ,51'

+BQBOFTF .VUVBM "JE "TTPDJBUJPOT .""T PSHBOJTFE CZ PDDVQBUJPO

5BJXBOFTF (PWFSONFOU &NQMPZFFT BOE 4DIPPM 4UBGG *OTVSBODF (&44* BOE 1VCMJD 4FSWJDF 1FOTJPO 'VOE 141' 0UIFS TDIFNFT GPS UIJT CSPBE PDDVQBUJPOBM DBUFHPSZ FYJTU JO FBDI DPVOUSZ CVU CFDBVTF UIFZ BSF DPNQMFUFMZ VOGVOEFE JF UIFZ IBWF OP

SFTFSWF BTTFUT UIFZ BSF OPU EJTDVTTFE IFSF 5BCMF QSPWJEFT BEEJUJPOBM EFUBJMT BCPVU FBDI SFTFSWF GVOE "EEJUJPOBMMZ UXP 5BJXBOFTF GVOET BSF JODMVEFE JO UIF GPMMPXJOH EJTDVTTJPO !

!

5IF QSFWJPVTMZ NBOEBUPSZ -BCPVS 3FUJSFNFOU 'VOE -3' IBT TJODF CFFO SFQMBDFE CZ B %$ TZTUFN BOE JT UIFSFGPSF DMPTFE UP OFX NFNCFST "EEJUJPOBM DPWFSBHF GPS UIPTF OPU JODMVEFE JO UIF BCPWF TZTUFNT JT QSPWJEFE CZ UIF WPMVOUBSZ 5BJXBOFTF /BUJPOBM 1FOTJPO *OTVSBODF 'VOE /1*'

"T NFOUJPOFE BCPWF UIFSF JT OP EFEJDBUFE QFOTJPO SFTFSWF JO )POH ,POH OPS JT UIFSF BOZ DPOUSJCVUPSZ QVCMJD 1":( QFOTJPO TZTUFN



.BZ



5BCMF 1VCMJD QFOTJPO TDIFNFT XJUI B NBOBHFE SFTFSWF JO &BTU "TJB

National Pension Insurance (NPI)

Scheme Japan Employee Pension Insurance (EPI)

1949

1961

1942

Created

Mutual Aid Associations (MAAs)

Brief Description

Management

Private-sector employees and their spouses

Eligibility

Yes

Mandatory

Yes

Public

Yes

Yes

Self-employed individuals, part-time employees, unemployed spouses Public-sector employees (some private-sector occupations on voluntary basis but excluded from these statistics)

Reserve-backed PAYG plan for private sector

- Reserve-backed PAYG plan for private sector Public - Managed by the Government Pension Investment Fund (GPIF) - Reserve-backed PAYG plan for private sector Public - Managed by the Government Pension Investment Fund (GPIF) - Reserve-backed PAYG plans for public sector (private sector voluntary MAAs excluded) Public - Managed by separate entities according to occupation, e.g. local government (Chikyoren), private schools (Shigaku Kyosai), municipal personnel (Shichousonren)

1988

Yes

Korea National Pension Fund (NPF)

Public

No

Reserve-backed PAYG plan for public sector

Public

Yes

Unemployed, housewives and others aged 25-65 and not covered by other systems Employees at companies with at least 5 staff, self-employed workers, civil servants, private teachers and fishermen Employed workers

1960

Public

No

Civil workers, public and private teachers

Employed and self-employed workers (unemployed contribute voluntarily) Government employees and public school teachers Private school teachers

Public

Yes

Civil workers, public teachers, military personnel

Yes

Public

Yes

Public

Public

N/A

Reserve-backed PAYG plan for private school teachers

- Reserve-backed supplementary PAYG system for private sector - Replaced by Labour Pension Fund (LPF) - Reserve-backed PAYG system for public sector - Managed by Bank of Taiwan (BOT) Reserve-backed supplementary PAYG system for public sector

N/A

Urban workers

1975

1950

1984 1958 1995

Public

Yes

2008

Government Employees Pension System (GEPS) Korean Teachers Pension Fund (KTPF) Taiwan National Pension Insurance Fund (NPIF) Labour Insurance Fund (LIF)

2000

Public

- Reserve-backed PAYG system for uninsured individuals - Managed by the Bureau of Labour Insurance (BLI) - Reserve-backed PAYG system for private sector - Managed by the Bureau of Labour Insurance (BLI)

Labour Retirement Fund (LRF) *** closed to new members since 2005 Government Employee & School Staff Insurance (GESSI) Public Service Pension Fund (PSPF) China National Social Security Fund (NSSF)

- Reserve fund managed by the National Council for Social Security Fund (NCSSF) - Not financed from pension contributions Public pension reserves accumulated independently in each province and backing PAYG plans

.BZ


1997


Urban Social Insurance (USI)

4PVSDF TFF UBCMF



'VOEJOH TPVSDFT BOE TIPSUGBMMT 1FOTJPO SFTFSWFT BTTFUT DPNF GSPN DPOUSJ CVUJPO TVSQMVTFT 1":( DPOUSJCVUJPOT JO FYDFTT PG QFOTJPO QBZPVUT

JOWFTUNFOU JODPNF BOE TPNF EFHSFF PG HPWFSONFOU USBOTGFST 8JUI UIF FYDFQUJPO PG UIF -3' JO 5BJXBO &BTU "TJBhT SFTFSWF GVOET SFNBJO PQFO UP OFX NFNCFST BOE OFX DPOUSJCV UJPOT 5IF $IJOFTF /BUJPOBM 4PDJBM 4FDVSJUZ 'VOE /44' JT B VOJRVF DBTF *U JT à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

1BSBNFUSJD SFGPSNT JODMVEF BOZ DIBOHFT UP UIF QMBOhT QBSBNFUFST JODMVEJOH DPOUSJCVUJPO SBUFT BDDSVBM BOE CFOFàU GPSNVMBT FUD

5IF DPTU PG QFOTJPOT UP FNQMPZFST JT BO JNQPSUBOU MJNJUBUJPO PG UIF MFWFM PG DPOUSJCVUJPOT 8IJMF DPOUSJCVUJPO SBUFT BSF BSHVBCMZ MPX JODSFBTJOH UIFN UFOET UP

JODSFBTF OPODPNQMJBODF TFF 1IBOH 5BLBZBNB 8JMMJBNTPO FU BM -FF 0LTBOFO BNPOH PUIFST *O FDPOPNJFT MJLF 5BJXBO B TVCTUBOUJBM OVNCFS PG DPNQBOJFT BSF 4.&T BOE àOE JU EJGàDVMU UP DPNQMZ XJUI QFOTJPO SFHVMBUJPOT *OEFFE JO $IJOB BOE 5BJXBO FNQMPZFST DBSSZ B HSFBUFS QSPQPSUJPO PG DPOUSJCV UJPOT UIBO JOEJWJEVBMT4IJ BOE .PL C

JMMVTUSBUF UIF HSBWJUZ PG OPODPNQMJBODF JO 5BJXBO CFGPSF UIF -3' SFGPSN PG DPNQBOJFT NBEF OP DPOUSJCVUJPO XIJMF QBJE UIF NJOJNVN DPOUSJCVUJPOT PG *O &BTU "TJB JO HFOFSBM FYQPSUESJWFO EFWFMPQNFOU TUSBUFHJFT XJUI B TJHOJàDBOU FNQIBTJT PO JOUFSOBUJPOBM XBHF DPNQFU JUJWFOFTT NFBO UIBU UIF FOGPSDFNFOU PG QFOTJPO DPOUSJCVUJPOT NBZ QPUFO UJBMMZ DPOáJDU XJUI PUIFS QPMJDZ HPBMT 'PS UIJT SFBTPO EFMJORVFODZ DBO SFNBJO IJHI FTQFDJBMMZ UIF VOEFSSFQPSUJOH PG FNQMPZFFTh XBHFT CZ FNQMPZFST /FWFSUIFMFTT SFTFSWF GVOET JO &BTU "TJB DPNNPOMZ CBDL QFOTJPO TDIFNFT DPOTJEFSFE UP QBZ HFOFSPVT CFOFàUT BOE UIBU IBWF OPU BMXBZT CFFO DPOUSJCVUPSZ JO UIF QBTU 5IJT JT QBSUJDVMBSMZ UIF DBTF JO DPVOUSJFT XJUI MBSHF TUBUFDPOUSPMMFE JOEVTUSJBM TFDUPST "T B SFTVMU DVSSFOU DPOUSJ CVUJPO SBUFT BSF PGUFO CFMPX UIF BDUVBSJBMMZ SBUF SFRVJSFE UP NFFU UIF GVUVSF QFOTJPO PCMJHBUJPOT PG 1":( TZTUFNT *O NPTU DPVOUSJFT POHPJOH JODSFNFOUBM QBSBNFUSJD SFGPSNT BJN UP JODSFBTF DPOUSJ CVUJPO SBUFT XIJMF EFDSFBTJOH CFOFàUT CVU "O &%)&$3JTL *OTUJUVUF 1VCMJDBUJPO


.BZ



5BCMF 1BSUJDJQBUJPO BOE DPOUSJCVUJPOT UP QVCMJD QFOTJPO TDIFNFT XJUI B NBOBHFE SFTFSWF

2011 2011 2009

12,000

13,000 24,000 3,900

2009

2011

2011 2011 2009

1%

4%

78%

55% 31% 7%

None

7.00% from government and employer

7%

5%

8% None Plan dependent, min 6.00%

7.50% from government and employee 2%

7%

7%

5%

8% JPY 15,100 Plan dependent, min 6.00%

Dependent on pensionable base of TWD 17,280 per month Dependent on pensionable income of max TWD 43,900 per month 15% of salaries

Dependent on pensionable income

Pensionable income cannot exceed 120% of average earnings Dependent on pensionable income

Dependent on assessible income Not applicable Dependent on assessible income

Contribution Limits

34,400 19,400 4,500

2011 290

2009

20%

None

A maximum of coverage years applies

Employee Contribution

342,000 2009

30

2011

90%

5.25% from employer and 0.75% from government Plan dependent, min 2.00%

3%

Contributions are calculated based on twice the basic pay

Employer Contribution

4,600 2009

1,200

2011

32%

5%

5%

% empl. pop

9,500

2011

190

2011

6%

9.70% from government

as of

100

2011

440

N/A

6%

Employer contribution max 300% of average provincial salary including contributions to USI

Recipents (th)

450

2011

N/A

2011

None

as of

Japan Employee Pension Insurance (EPI) National Pension Insurance (NPI) Mutual Aid Associations (MAAs)

560

2011

210

Plan dependent, 20.00% on average

Participants (th)


180

2011

25%

Scheme

Taiwan National Pension Insurance Fund (NPIF) Labour Insurance Fund (LIF)

500

2010

Government Employees Pension System (GEPS) Korean Teachers Pension Fund (KTPF)

Labour Retirement Fund (LRF) *** closed to new members since Government Employee & School Staff Insurance (GESSI) Public Service Pension Fund (PSPF)

63,000

.BZ


2010


194,000

China Urban Social Insurance (USI)

4PVSDF TFF UBCMF



'JHVSF 1VCMJD QFOTJPO SFTFSWF BTTFU BOOVBMJTFE HSPXUI SBUF 50% 45.80%

40% 35.32%

30%

20% 14.45%

13.63% 9.03%

10%

-1.67% 0%

Chinese NSSF

Chinese USI

Korean NPF

Taiwanese PSPF

Taiwanese LRF

Japanese GPIF

-10%

4PVSDF "OOVBM SFQPSUT BVUIPSTh DBMDVMBUJPOT

'JHVSF 3FRVJSFE WT BDUVBM DPOUSJCVUJPOT JO 1":( QFOTJPOT JO &BTU "TJB

60 50 40 30 20 10 0

Japan

Korea Actual Rates

China

Gap to Required Rates 4PVSDF 0&$%



.BZ



UIF QBDF PG QBSBNFUSJD SFGPSNT JT UPP TMPX UP SFWFSTF UIF JNCBMBODF CFUXFFO DPOUSJ CVUJPO BOE CFOFàU SBUFT BOE SFTFSWF GVOET JO UIF SFHJPO BSF OPU JO B QPTJUJPO UP NFFU UIF MJBCJMJUJFT PG UIF QVCMJD QFOTJPO TZTUFN 5IF FYJTUJOH BDUVBSJBM JNCBMBODF PG SFTFSWF GVOET JT EPDVNFOUFE JO JOUFSOBM BOE FYUFSOBM FWBMVBUJPOT PG UIF TUBUF PG UIFJS MJBCJMJUJFT "TJBO %FWFMPQNFOU #BOL "T JO QVCMJD QFOTJPO TDIFNFT JO PUIFS SFHJPOT MBSHF VOGVOEFE MJBCJMJUJFT FYJTU JO &BTU "TJB ZFU UIFZ BSF JHOPSFE $PDRVFNBT -BY GVOEJOH PCKFDUJWFT TFF TFDUJPO

BOE MPX DPOUSJCVUJPO SBUFT FYBDFSCBUF UIF QSPCMFN TFF àHVSF 'PS FYBNQMF ,PSFBhT /1' BOE +BQBOhT &1* BOE /1* IBWF BDDFQUFE DPOUSJCVUJPO SBUFT XIJDI XFSF MPXFS UIBO UIF SFRVJSFE NJOJNVN VOEFS FBDI HPWFSONFOUhT PXO QSPKFDUJPOT :BOH .JOJTUSZ PG )FBMUI -BCPVS 8FMGBSF *O TPNF DBTFT HPWFSONFOU TVQQPSU JT UIVT OFDFTTBSZ *O +BQBOhT (1*' UIF HPWFSONFOU TVCTJEJTFT QBSU PG UIF CBTJD CFOFàU *O BMM PG 5BJXBOhT SFTFSWF GVOET UIF HPWFSONFOU DP QBZT QBSU PG NBOEBUPSZ DPOUSJCVUJPOT 5IVT XIJMF SFTFSWFT DPOUJOVF UP HSPX TJHOJG JDBOUMZ JO NPTU DPVOUSJFT BT TIPXO JO àHVSF UIF DPNCJOBUJPO PG MPX DPOUSJCV UJPOT MFWFMT JO SFMBUJPO UP QSPNJTFE CFOFàUT BT XFMM BT MPX DPMMFDUJPO SBUFT NFBOT UIBU &BTU "TJBhT SFTFSWF GVOET BSF OPU BT MBSHF BT UIFZ TIPVME CF .PSFPWFS XJUIPVU MPOHUFSN àOBODJBM TVTUBJOBCJMJUZ SFTFSWF GVOET BSF FWFOUVBMMZ

GPSDFE UP XJOE EPXO BOE MFBWF GVUVSF HFOFSBUJPOT FYQPTFE UP QPUFOUJBMMZ NVDI IJHIFS DPOUSJCVUJPO SBUFT TFF .PPO GPS JOTUBODF 5IJT QSPDFTT IBT BMSFBEZ CFHVO BU +BQBOhT (1*' XIJDI BT POF PG UIF NPTU NBUVSF TDIFNFT JO UIF SFHJPO %SBXEPXOT UP NFFU QFOTJPO PCMJHBUJPOT PGàDJBMMZ CFHVO JO BT EJTDVTTFE JO *1"TJB B .JOJTUSZ PG )FBMUI -BCPVS BOE 8FMGBSF BOE TIPXO JO àHVSF *O ,PSFB SFTFBSDI FYBNJOJOH UIF BDUVBSJBM TVTUBJOBCJMJUZ PG SFTFSWF GVOET àOET UIBU UIF /1' XJMM FYIBVTU JUT SFTFSWF BSPVOE XIJMF JUT VOGVOEFE MJBCJMJUZ NBZ SFBDI PG (%1 CZ .PPO 5IF DPOUJOVFE EFàDJU PG ,PSFBhT (&14 JT BMTP TIPXO UP CF TUSVDUVSBM ,JN BOE .PPO *O $IJOB SPVHIMZ IBMG PG UIF QSPWJODFT XFSF JO EFàDJU JO ;IFOH $IJOFTF QVCMJD QFOTJPOT JODMVEF UIF MJBCJMJUZ PG UIF QSFWJPVT OPODPOUSJCVUPSZ TZTUFN BOE UIVT NVTU SFMZ PO USBOTGFST BT B GPSN PG JOUFSHFOFSBUJPOBM TPMJEBSJUZ 5BJXBOhT -3' JT BMTP VOEFSGVOEFE XIJMF UIF -*' IBT SFQPSUFEMZ MBSHF VOGVOEFE MJBCJMJUJFT $IJV *OTUFBE PG CFJOH JOWFTUFE BOE NBOBHFE UP PQUJNJTF UIF BCJMJUZ PG UIF SFTFSWF GVOE UP TVQQPSU UIF QVCMJD QFOTJPO TZTUFN QFOTJPO SFTFSWFT UIVT QMBZ B QBTTJWF SPMF JO UIF NBOBHFNFOU PG UIF EFNPHSBQIJD USBOTJUJPO BOE BSF FYQFDUFE UP QFBL XJUI UIF XPSLJOH QPQVMBUJPO BOE UP FWFOUVBMMZ CF TQFOU



.BZ



BMNPTU FOUJSFMZ UP àMM UIF àOBODJOH HBQ PG QVCMJD QFOTJPO TZTUFNT 5IF BCTFODF PG GPDVT PO JOWFTUNFOU JODPNF UP NFFU GVUVSF QFOTJPO PCMJHBUJPOT EFUBJMFE JO TFDUJPO NFBOT UIBU UIF GVOEJOH TIPSUGBMM PG QFOTJPO SFTFSWF GVOET JT OPU BDUJWFMZ BEESFTTFE /FYU XF FYBNJOF UIF ESJWFST PG UIF MJBCJMJUZ QSPDFTT UIBU QFOTJPO SFTFSWFT BSF JNQMJDJUMZ FYQPTFE UP

"O PQBRVF BOE JMMEFàOFE MJBCJMJUZ QSPDFTT &WFO JG JU JT OPU FYQMJDJUMZ SFDPHOJTFE BOE BEESFTTFE JO UIF JOWFTUNFOU TUSBUFHZ PG QFOTJPO SFTFSWFT UIF MJBCJMJUZ PG UIF QVCMJD QFOTJPO TZTUFN FYJTUT BOE QFOTJPO SFTFSWFT BSF EJSFDUMZ FYQPTFE UP JU 5IF NBJO EFUFSNJOBOUT PG UIF SFTFSWFh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

)PXFWFS NPTU QFOTJPO SFTFSWFT FYJTU UP TVQQPSU UIF QBZNFOU PG SFUJSFNFOU JODPNF PO B TDBMF DPSSFTQPOEJOH UP UIF FOUJSF XPSLGPSDF "T EJTDVTTFE BCPWF QPQVMBUJPO BHFJOH JT EFàOFE BT B SFWFSTBM PG UIF SBUJP PG FGGFDUJWF XPSLFST UP UIBU PG FGGFDUJWF DPOTVNFST -FF BOE .BTPO "T B DPOTFRVFODF B JODSFBTJOH OVNCFS PG SFUJSFFT NVTU CF QBJE B QFOTJPO XIJMF B EFDSFBTJOH OVNCFS PG XPSLFST DPOUSJCVUF UP UIF QFOTJPO TZTUFN 6OEFSTUBOEJOH UIJT EZOBNJD QSPDFTT JT FTTFOUJBM UP UIF NBOBHFNFOU PG UIF QFOTJPO SFTFSWF DPOUSJCVUJPO MFWFMT BOE MBCPVS QSPEVDUJWJUZ DBO POMZ JODSFBTF XJUIJO DFSUBJO MJNJUT BOE BOZ TIPSUGBMM SFRVJSFT FJUIFS UP MPXFS DPOUSJCVUJPOT PS TQFOE UIF SFTFSWF PS UP JODSFBTF QVCMJD USBOTGFST PS DSVDJBMMZ UP JNQSPWF UIF JOWFTUNFOU JODPNF PG UIF SFTFSWF 8JUIPVU B QSPQFS VOEFSTUBOEJOH PG UIF JNQBDU PG QPQVMBUJPO BHFJOH PO UIF MJBCJMJUZ PG UIF SFTFSWF BMM UIFTF QBSBNFUFST BSF BEKVTUFE XJUIPVU NVDI WJTJCJMJUZ PS FWFO VOEFSTUBOEJOH PG UIF DPOTFRVFODFT 'PS FYBNQMF UIF +BQBOFTF HPWFSONFOUhT PGàDJBM UBSHFU SFQMBDFNFOU SBUJP UIF SBUJP PG SFUJSFNFOU JODPNF UP àOBM PS XFJHIUFE BWFSBHF MBCPVS JODPNF GPS UIF 1":( TZTUFN JT GSPN POXBSET EPXO GSPN BSPVOE JO 5IJT QSPKFDUJPO JT CBTFE PO NFEJVN FTUJNBUFT JO NPSUBMJUZ BWFSBHF MJGF FYQFDUBODZ PG ZFBST GPS NBMF BOE ZFBST GPS GFNBMF TVCTDSJCFST JO

BOE CJSUI SBUF UPUBM GFSUJMJUZ SBUF PG JO BO JOWFTUNFOU ZJFME PG B XBHF



.BZ



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àUT PS UIF SFUJSFNFOU BHF CVU BGGFDU POMZ GVUVSF SFUJSFFT IFODF UIFJS GVMM JNQBDU JT POMZ SFBMJTFE EFDBEFT MBUFS *O UIF MPOH SVO UIF SFTFSWFhT MJBCJMJUJFT BSF EFUFSNJOFE CZ UIFTF QBSBNFUFST

!

!

!

!

!

$POUSJCVUJPO BOE CFOFàU SBUFT UIFTF SBUFT EFUFSNJOF UIF àOBODJBM TVSQMVT JO FBDI ZFBS BOE TIPVME UIFSFGPSF CF BDUVBS JBMMZ GBJS BOE CBMBODFE JO PSEFS UP FOTVSF GVOEJOH BEFRVBDZ BOE BMMPX GPS SFTFSWF BDDVNVMBUJPO "OOVJUJTBUJPO UIF DPTU PG BO JOEFYFE JODPNF TUSFBN JT HFOFSBMMZ IJHIFS UIBO BO FRVJWBMFOU MVNQ TVN FTQFDJBMMZ JG JOáBUJPO SJTL JT IJHI BOE JU BMTP JODSFBTFT UIF àOBODJOH BOE MPOHFWJUZ SJTL PG SFTFSWF GVOET $POUSJCVUJPO DFJMJOHT BOE UBYBUJPO UIFTF QBSBNFUFST BGGFDU JODFOUJWFT UP DPOUSJCVUF BOE UIFSFGPSF BTTFU BDDVNV MBUJPO 3FUJSFNFOU BHF EFàOFT UIF TUBSU PG UIF QBZPVU QFSJPE BOE UIFSFCZ JNQBDUT UIF BDDVNVMBUJPO QFSJPE MJBCJMJUZ EVSBUJPO BOE UIF BDUVBSJBM CBMBODF PG UIF GVOE *OEFYBUJPO BOE HVBSBOUFFT UIFTF BEEJUJPOBM QSPNJTFT BSF IBSE UP NPEFM BOE JOUSPEVDF BEEJUJPOBM WPMBUJMJUZ PO UIF MJBCJMJUZ TJEF XIJDI JT OPU BMXBZT BEFRVBUFMZ BEESFTTFE PO UIF BTTFU TJEF

5BCMF BOE TVNNBSJTF UIF BCPWF QBSBN FUFST JO DPOOFDUJPO XJUI QFOTJPO SFTFSWF GVOET JO &BTU "TJB 5IF TMPX QBDF BOE PGUFO QJFDFNFBM BTQFDU PG UIFTF SFGPSNT DPNQMJ DBUFT UIF EFUFSNJOBUJPO PG UIF SFTFSWFhT MJBCJMJUJFT 'PS FYBNQMF ,PSFBhT /1' JEFOUJàFE TUSVD UVSBM XFBLOFTTFT BT FBSMZ BT CVU POMZ QBTTFE B QBSUJBM WFSTJPO PG UIF OFDFTTBSZ NFBTVSFT JO .PPO

XIJMF UIF (PWFSONFOU &NQMPZFF 1FOTJPO 4DIFNF (&14 XBT OPU SFGPSNFE VOUJM JO TQJUF PG MPOHTUBOEJOH EFàDJUT ,JN BOE



.BZ



5BCMF 1VCMJD QFOTJPO TDIFNFT QBSBNFUFST

Scheme Tax-exempt contributions

Taxation

60

Tax-exempt contributions

Ret. Age

65


Japan Employee Pension Insurance (EPI) National Pension Insurance (NPI)

65

60

- Tax-exempt contributions - Benefits taxed at withdrawal




65


Benefit Composition - Basic pension plus remuneration-related No benefit paid as monthly pension - Includes survivor, disability and other - Basic pension plus flat-rate additional No benefit paid as monthly pension - Includes survivor, disability and other benefits - Lump sum allowed with less than 25 year No of contributions - Includes occupational addition - Can include survivor, disability and other benefits - Basic minimum benefit plus earningNo related benefit paid as monthly pension - Lump sums possible only if member becomes public employee or has less than 10 years of contributions - Includes disability and survivor benefit - Lump sum if less than 20 years No - Annuity benefit possible if more than 20 years of contributions - Includes survivor benefits and an additional retirement allowance

Premature Withdrawal

Target Repl. Rate

Wage and inflation 60% indexation

Indexation and Guarantees

25 years of contributions

Inflation indexation

Minimum Benefit Eligibility

Annual accrual of 0.55% of 40 years of lifetime average salary contributions


Full Benefit Eligibility



Vesting or Accrual Rules

65 years of age

Plan and occupation dependent accrual rates

50%

- Wage indexation 72% before 65 - Inflation indexation after 65

Accrual of 0.75% of average - 60 years of age - 55 years of age salary per year of - 20 years of - 10 years of contributions contributions contributions

- Inflation 76% indexation above the annual inflation rate - Wage indexation

Inflation indexation 65%

- Inflation indexation - Guaranteed interest in case of lump sum

- Accrual of 1.90% of 33 years of service 20 years of service average salary per year of service - Progressive accrual rate for the additional retirement allowance Progressive accrual rate 33 years of service 1 year of service averaging to 1.90% of average salary per year of service

.BZ


Government Employees Pension System (GEPS)

Korean Teachers Pension Fund 65 (KTPF)

- Lump sum if less than 20 years contributions - Annuity benefit possible if more than 20 years of contributions - Includes disability, survivor, medical, disaster benefits and loans to members

4PVSDF TFF UBCMF




5BCMF 1VCMJD QFOTJPO TDIFNFT QBSBNFUFST DPOUJOVFE

Scheme Taiwan National Pension Insurance Fund (NPIF)

Labour Insurance Fund (LIF)

Retirement Age 65

60

Labour Retirement Fund (LRF) 55 *** closed to new members since 2005

Government Employee & 55 School Staff Insurance (GESSI)

60

Taxation

- Employee contributions deductible up to TWD 24,000 per year - Lump sum benefit deductible up to TWD 150,000 - Monthly benefits deductible up to TWD 650,000 per year - Employee contributions deductible up to TWD 24,000 per year - Lump sum benefit deductible up to TWD 150,000 - Monthly benefits deductible up to TWD 650,000 per year - Employee contributions deductible up to TWD 24,000 per year - Lump sum benefit deductible up to TWD 150,000 - Monthly benefits deductible up to TWD 650,000 per year - Employee contributions deductible up to TWD 24,000 per year - Lump sum benefit deductible up to TWD 150,000 - Monthly benefits deductible up to TWD 650,000 per year - Employee contributions deductible up to TWD 24,000 per year - Lump sum benefit deductible up to TWD 150,000 - Monthly benefits deductible up to TWD 650,000 per year


Min Benefit Eligibility




Benefit Composition

No

Accrual of 1.3% of pensionable base per year of coverage

Guaranteed interest 95% rate

Target Repl. Rate

5 years of service

Inflation and wage indexation

- Monthly benefit only - Includes disability, maternity, death and survivor benefits - Means tested


None

- Indexation above Plan inflation and below dependent, wage increase 20% on average

1 year of contributions

No

Accrual of 1.55% of highest 15 years of average monthly contributions pensionable salary per coverage year

Guaranteed interest rate

Lump sum only

- Annual benefit - Lump sum with reduction possible with less than 15 years of contributions - Includes injury, old age, medical care, disability, survivor andmaternity benefits

No

- Accrual of 2 end average 25 years at same 15 years at same salaries up to 15 years and 1 employer employer end average salary thereafter - 15 years service and seniority Accrual of 3 basic salaries 30 years of service 15 years of for each year of service contributions No

- Accrual of 4 basic salaries Age and years in for each year of service service should sum to 85

- Monthly benefit - Lump sum possible with less than 30 years of service - Includes disability, death and parental leave benefits

- Monthly benefit after 50 years of age - No 4% of basic salary for each year in service is paid monthly - Lump sum with reduction otherwise - Includes survivor benefit and severance pay


- According to benefit formula - Plan dependent

.BZ


- Basic monthly benefit No - Monthly pension paid as annuity benefit - Lump sum if less than 15 years of contributions


Public Service Pension Fund (PSPF)

China Urban Social Insurance (USI)

60 for men, - Tax-deductible contributions 55 for women - Benefits and investment income taxed at withdrawal

4PVSDF TFF UBCMF



.PPO (SBOUFE UIF OPONBUVSJUZ PG UIF TZTUFN UIFTF SFGPSNT NBZ IBWF CFFO UJNFMZ CVU UIF SFUJSFNFOU BHF XJMM POMZ CFHJO JODSFBTJOH GSPN JF B EFDBEF BGUFS UIF OFFE GPS SFGPSN XBT àSTU JEFOUJàFE 1BSBNFUSJD SFGPSNT BU +BQBOhT IJTUPSJDBMMZ HFOFSPVT &NQMPZNFOU 1FOTJPO *OTVSBODF &1* BOE /BUJPOBM 1FOTJPO *OTVSBODF /1*

CBDLFE CZ UIF (1*' XFSF BMTP JNQMF NFOUFE BU B TMPX QBDF TFF GPS FYBNQMF 5BLBZBNB C 5BSHFU SFQMBDFNFOU SBUJPT BSF DVSSFOUMZ CFJOH SFEVDFE .JOJTUSZ PG )FBMUI -BCPVS BOE 8FMGBSF

CVU BO BEEJUJPOBM CFOFàU XJUI B HFOFSPVT NFBOT UFTU IBT CFFO BEEFE 5BLBZBNB C 5BJXBOhT 141' BMTP CFHBO JODSFBTJOH DPOUSJ CVUJPO SBUFT JO CVU JT SBJTJOH CFOFàUT JO QBSBMMFM IBWJOH POMZ CFDPNF DPOUSJCVUPSZ JO ,VP 5IF -*' BOE /1*' VOEFSHP QBSBNFUSJD DIBOHFT BMNPTU FWFSZ ZFBS CFDBVTF UIFJS MFHBM GSBNFXPSL EFNBOET DPOUSJCVUJPO SBUF JODSFBTFT JG GVOEJOH ESPQT CFMPX B DFSUBJO MFWFM )PXFWFS UIF VOJà DBUJPO PG JOWFTUNFOU NBOBHFNFOU GPS UIF -*' BOE -3' -BCPVS 1FOTJPO 'VOE

BNPOH PUIFST VOEFS UIF VNCSFMMB PG UIF SFGPSNFE -BCPVS 1FOTJPO 'VOE -1' NBZ DPOUSJCVUF UP JNQSPWJOH QSBDUJDFT $IJOBhT GSBHNFOUFE 64* TZTUFN JT IBSE UP IBSNPOJTF QSPWJODFT BSF BMMPXFE UP TFU UIFJS PXO DPOUSJCVUJPO BOE CFOFàU SBUFT JO BDDPSEBODF XJUI UIFJS àOBODJBM TJUVBUJPO -FDLJF BOE 9JBP ;IFOH 1BSBNFUSJD SFGPSNT UIVT UFOE UP MBH UIF VOEFSGVOEJOH JTTVFT PG QFOTJPO SFTFSWFT TPNFUJNFT CZ B EFDBEF BOE BSF PGUFO UPP

BE IPD UP LOPX XIBU UIFJS JNQBDU XJMM CF TJODF UIFZ DBO BGGFDU MJBCJMJUJFT CPUI EJSFDUMZ BOE JOEJSFDUMZ CZ NPEJGZJOH JODFO UJWFT BOE FYQFDUBUJPOT "HBJO UIFTF SFGPSNT BSF BO FYBNQMF PG JOBEFRVBUF QBTTJWF SFBDUJWF BEBQUBUJPO UP UIF EZOBNJD QSPCMFN PG UIF SFTFSWF GVOEhT MJBCJMJUJFT "DDPVOUJOH TUBOEBSET 'JOBMMZ BOPUIFS JNQPSUBOU ESJWFS PG UIF QFOTJPO SFTFSWF GVOETh MJBCJMJUZ JT B NBUUFS PG BDUVBSJBM BOE BDDPVOUJOH TUBOEBSET BT UIFTF EFUFSNJOF NBUFSJBMMZ CPUI UIF TJ[F PG MJBCJM JUJFT BOE UIF FYUFOU UP XIJDI GVOEJOH MFWFMT HJWF B SFBMJTUJD WJFX PG PCMJHBUJPOT 5IFTF BSF OPU DPOTJTUFOU UISPVHIPVU UIF SFHJPO BOE NBSLUPNBSLFU WBMVBUJPO JT OPU BMXBZT SFRVJSFE !

!

!

!

0OMZ ,PSFB IBT GVMMZ BEPQUFE UIF *OUFS OBUJPOBM 'JOBODJBM 3FQPSUJOH 4UBOEBSET *'34

BOE EJE TP SFDFOUMZ JO *O +BQBO UIF QSFEPNJOBOU BDUVBSJBM NFUIPE VTFE JT UIF BDDSVFE CFOFàU PCMJHBUJPOT "#0 NFUIPE JOTUFBE PG UIF NPSF USBOTQBSFOU QSPKFDUFE CFOFàU PCMJHBUJPOT 1#0 NFUIPE 5IF DPVOUSZ IBT QPTUQPOFE UIF GVMM BEPQUJPO PG *'34 NFBTVSFT VOUJM BOE DPOUJOVFT UP VTF MPDBM HFOFSBMMZ BDDFQUFE BDDPVOUJOH QSJODJQMFT (""1 5IF "DDPVOUBOU 5BJXBO TIPVME JOUSPEVDF UIF *'34 JO FYQFDUJOH VOMJTUFE DPNQBOJFT UP DPNQMZ CZ *OUFSOBUJPOBM #FOFàUT /FUXPSL

CVU TPNF QFOTJPO GVOET JO 5BJXBO IBWF CFFO VTJOH NBSLFU WBMVBUJPO BIFBE PG *'34 JOUSPEVDUJPO $IJOB JO DPOUSBTU VTFT UIF DPTU NFUIPE PG BDDPVOUJOH ;IFOH 8IJMF JU JT VODMFBS JG UIF /44' NBSLT JUT QPSUGPMJP UP "O &%)&$3JTL *OTUJUVUF 1VCMJDBUJPO


.BZ



NBSLFU JUT BOOVBM SFQPSU SFGFST UP zGBJS WBMVFh WBMVBUJPO -FDLJF BOE 9JBP *O UIF BCTFODF PG B XFMMVOEFSTUPPE BOE XFMMEFàOFE MJBCJMJUZ TFUUJOH BQQSPQSJBUF JOWFTUNFOU PCKFDUJWFT GPS QFOTJPO SFTFSWF GVOET JT BMNPTU JNQPTTJCMF /FYU XF SFWJFX UIF JOWFTUNFOU PCKFDUJWFT PG UIF EJGGFSFOU QFOTJPO SFTFSWF GVOET JO UIF SFHJPO

4FUUJOH JOWFTUNFOU PCKFDUJWFT GPS QFOTJPO SFTFSWFT "T IJHIMJHIUFE BCPWF 1":( QFOTJPO PCMJHB UJPOT PS CFOFàUT USBOTMBUF JOUP B EF GBDUP MJBCJMJUZ QSPDFTT GPS UIF QVCMJD TFDUPS XIJDI JT B GVODUJPO PG B OVNCFS PG QBSBNFUFST JODMVEJOH CFOFàU FMJHJCJMJUZ BOE WFTUJOH JOEFYBUJPO QSPNJTFT BOE BDDPVOUJOH SVMFT *OTPGBS BT QVCMJD QFOTJPO SFTFSWFT IBWF UIF HPBM PG NFFUJOH BMM PS QBSU PG UIJT MJBCJMJUZ JU TIPVME USBOTMBUF JOUP MPOHUFSN JOWFTUNFOU PCKFDUJWFT GPS UIF NBOBHFST PG UIF SFTFSWF )PXFWFS UIJT JT OPU TFMGFWJEFOU BOE UIF EFDJTJPO NBLJOH QSPDFTT MFBEJOH UP UIF BEPQUJPO PG UIFTF PCKFDUJWFT QMBZT BO JNQPSUBOU SPMF *O UIJT DPOUFYU UIF MJUFS BUVSF IBT MPOH BSHVFE UIBU SFTFSWF BTTFUT GPS UIF QBZNFOU PG QFOTJPO BOE TPDJBM CFOFàUT TIPVME CF zSJOHGFODFEh :FSNP %FTQJUF CFJOH UIF GVOEFE DPNQPOFOU PG 1":( QFOTJPO TZTUFNT QFOTJPO SFTFSWFT JO &BTU "TJB BSF OPU EFTJHOFE UP NBOBHF QVCMJD QFOTJPO MJBCJMJUJFT 5ZQJDBMMZ MPOHUFSN QVCMJD QFOTJPO MJBCJMJUJFT BSF OPU BEESFTTFE FYQMJDJUMZ JO UIF SFTFSWFhT JOWFTUNFOU TUSBUFHZ

*OTUFBE UIFTF SFTFSWFT UFOE UP CF HJWFO NVMUJQMF JOWFTUNFOU PCKFDUJWFT TPNF PG XIJDI NBZ FWFO DPOáJDU XJUI UIFJS JNQMJDJU PS FYQMJDJU SFTQPOTJCJMJUZ UP TVQQPSU UIF QVCMJD QFOTJPO TZTUFN "DSPTT UIF SFHJPO QFOTJPO SFTFSWF NBOBHFNFOU JT OPU JOEFQFOEFOU GSPN QPMJUJDBM JOáVFODF 5BCMF BOE TVNNBSJTFT UIF EFDMBSFE PCKFDUJWFT PG UIF SFMFWBOU SFTFSWF GVOET 8IJMF UIFZ BSF JOEFFE NPTUMZ NBOEBUFE UP QSPWJEF TVQQPSU UIF QVCMJD QFOTJPO TZTUFN XJUI SFTQFDU UP UIF QBZNFOU PG QFOTJPOT MPOHUFSN JOWFTUNFOU PCKFD UJWFT SFRVJSJOH UIF FYQMJDJU NBOBHFNFOU PG QVCMJD QFOTJPO MJBCJMJUZ BSF UZQJDBMMZ OPU EFàOFE .VMUJQMF JOWFTUNFOU PCKFDUJWFT 3FTFSWF GVOET JO &BTU "TJB BSF VTFE GPS PUIFS QVSQPTFT UIBU NBOBHJOH QVCMJD QFOTJPO MJBCJMJUJFT JODMVEJOH DPOUSJCVUJOH UP NBDSP FDPOPNJD QPMJDZ PCKFDUJWFT PS QMBZJOH B SPMF OPSNBMMZ EFWPUFE UP UIF DFOUSBM CBOL MJLF UIF NBTT QVSDIBTF PG HPWFSONFOU CPOET 'PS FYBNQMF ,JN BOE 4UFXBSU MJTU BUUFNQUT UP VTF UIF /1' UP JOWFTU JO UIF EPNFTUJD TUPDL NBSLFU DPOUSJCVUF UP UIF FYDIBOHF SBUF TUBCJMJTBUJPO àOBODF WBSJPVT HPWFSONFOU QSPKFDUT BOE TFSWF BT B XIJUF LOJHIU BHBJOTU IPTUJMF UBLFPWFST .PPO DMBJNT UIBU ,PSFBO QFOTJPO SFTFSWFT BSF TFFO BT B DIFBQ TPVSDF PG EFWFM PQNFOU DBQJUBM -JLFXJTF 5BJXBOhT SFTFSWFT IBE CFFO VTFE PO TFWFSBM PDDBTJPOT VOUJM UP TUBCJMJTF NBSLFUT $IJV



.BZ



5BCMF 1FOTJPO SFTFSWF GVOET PCKFDUJWFT

Japan

Reserve Fund GPIF

Japan

MAAs

Taiwan

LIF

Taiwan

NPIF

Taiwan

PSPF

Country

Declared Goals & Objectives - To gain the public trust by becoming an organisation that steadfastly achieves its mission through contributing to the fiscal stability of the nation's public pension schemes - To ensure stable pension financing and maximum possible benefits, and equalise intergenerational imbalances through safe and efficient investment - To manage reserves safely and efficiently from a long-term perspective solely in the interest of insured members by upholding the principle of diversified investment - To secure the necessary liquidity for pension payments and manage cash efficiently - To implement appropriate risk management based on market trends and fulfill fiduciary responsibilities - To pursue efficient administration as an independent institution - To consider revisions, even in the medium term, if drastic market changes occur - To rebalance the portfolio whenever it deviates from the permissible asset weight ranges - To pay pension and health benefits, manage assets and improve member welfare - To maintain a long-term point of view and operate safely and efficiently - To exceed the planned investment rate established by the supervising ministry, based on actuarial reviews - To bridge any shortfalls from the required rate of return but without taking on unnecessary risks - To maintain asset allocations within the pre-determined ranges per asset class - To purchase government and municipal bonds and delegate asset management to financial institutions - To protect workers' livelihood and promote social security - To pay insurance premiums, invest in bonds and deposits, lend to members or fund-operated hospitals, or finance government-approved projects, as well as other government-approved investments - To create the largest surplus on the basis of security and estimate future expenditures and economic factors when allocating assets - To utilise the fund by taking safety, profitability, liquidity, public interest, and labor welfare into consideration - External managers must perform above the benchmark. - The fund may be applied or disposed of for no other purposes than the payment of insurance benefits or for investment purposes. - Rules for the utilisation of the fund shall be drafted by the Bureau of Labour Insurance. - To ensure the basic economic safety for citizens not adequately covered by other social insurance programmes in old age, maternity, or mental or physical disability, as well as the stability of the lives of their surviving family - To enhance the sustainability of the fund via the pursuit of reasonable remuneration, and to alleviate premium rate adjustments - To maintain a long-term investment strategy using active and passive management and keeping assets and liabilities in mind - To measure investment risk and maintain or exceed the rate of return used in the latest actuarial report - In addition to the above, the utilisation of the fund is restricted to investment only and it cannot be appropriated or disposed otherwise. - Surplus, if any, will be listed as the central government’s responsibility reserve for subsequent year. - The Bureau of Labour Insurance is responsible for underwriting, benefits payment, accounting, fund management and investment. - To secure and stabilise the income for retirees so as to facilitate recruitment, boost morale, take care of the aged and their dependents, and establish a sound and solid retirement system - To ensure a sustainable operation of its inexhaustible resources - To mitigate risk, practice professional management, elevate efficiency, and raise investment performance - To formulate a nimble, flexible investment strategy in pursuit of stable long-term returns - To take care of the retirees as well as to pay equal attention to the welfare of the incumbent civil servants - To invest in bonds, deposits, welfare loans, loans to government and other government-approved investments - Actuarial assessments are used by relevant units as reference for the setting of future pension policy and contribution rate adjustments. - Equal importance is placed on its security and proftability, as well as domestic and international economic conditions, so that the system can last forever. - The PSPF management board established relevant parameters for investment management.

4PVSDF "OOVBM SFQPSUT

"T XF BSHVFE JO TFDUJPO UIF BDDVNV MBUJPO PG TJHOJàDBOU QVCMJD EFCU UP DPOEVDU DVSSFOU BDDPVOU TUFSJMJTBUJPO QPMJDJFT PS JOáBUJPO DPOUSPM QPMJDJFT BOE UIF TPDJBM JTBUJPO PG UIF MPTTFT PG GBJMFE JOEVTUSJBM QPMJDJFT JF CBOL CBJM PVUT BMM SFTVMUT JO JNQMJDJU PS FYQMJDJU QSFTTVSF PO JOTUJUVUJPOBM WFIJDMFT MJLF QFOTJPO SFTFSWF GVOET UP BCTPSC MBSHF BNPVOUT PG MPXZJFMEJOH HPWFSONFOU CPOET 4VDI BMUFSOBUJWF VTFT PG QFOTJPO SFTFSWFT IBWF CFFO EPDVNFOUFE UP MFBE UP OFHBUJWF QFSGPSNBODF PO BWFSBHF JO EJGGFSFOU DPVOUSJFT 3BKLVNBS BOE %PSGNBO

.VTBMFN BOE 1BMBDJPT XBSO UIBU OPOQFOTJPO VTFT PG SFTFSWFT TIPVME CF BQQSPBDIFE XJUI HSFBU DBSF 'JOBMMZ %BT FU BM JOTJTU UIBU XIBUFWFS UIF MFHBM TUSVDUVSF PG UIF SFTFSWF GVOE JU JT QBSBNPVOU UIBU UIF JOEFQFOEFODF PG PQFSB UJPOBM NBOBHFNFOU CF HVBSBOUFFE TP BT UP MJNJU QPMJUJDBM JOUFSGFSFODFT -BOF BMTP TUSFTTFT UIBU QPMJUJDJTBUJPO PG JOWFTUNFOU EFDJTJPOT TIPVME CF BWPJEFE -BDL PG JOEFQFOEFODF )PXFWFS &BTU "TJBhT SFTFSWF GVOET BSF OPU JOEFQFOEFOU GSPN QPMJUJDBM JOáVFODF BT "O &%)&$3JTL *OTUJUVUF 1VCMJDBUJPO


.BZ



5BCMF 1FOTJPO SFTFSWF GVOET PCKFDUJWFT DPOUJOVFE

China

Reserve Fund NSSF

Korea

NPF

Korea

GESSI

Korea

GEPS

Korea

KTPF

Country

Declared Goals & Objectives - To help the government meet social security spending needs at the peak of ageing and manage individual account assets for nine provinces - To manage the capital allocated by the central government, the capital and equity assets derived from sales of state-owned shares and capital raised by other methods - To select and entrust investment managers and custodians with assets and to monitor the investment operation - To engage directly in investment of assets to the extent permitted by PRC laws and regulations - To earmark funds in a way jointly designated by the Ministry of Finance and Ministry of Human Resources and Social Security - To perform other duties assigned by the State Council - To maintain a long-term philosophy focused on value and responsibility - To increase revenue while controlling risk within a prudent safe investment framework - The investment strategy is formulated and implemented by the National Council for Social Security Fund. - To provide benefits which stabilise the livelihood of members and promote the welfare of the nation - To pursue a sustainable level of profit that achieves the stability of the fund and the national economy - To maximise profit to maintain and increase the real value of the fund without harming stability - To promote long-term financial soundness through financial recalculation - To contribute to the growth of the economy as a supplier of long-term capital - To invest in social infrastructure and public welfare projects, even though such activities are not as profitable as capital market investments - To ensure sufficient liquidity in the future - To meet the interests of all stakeholders and none other - To improve the investment portfolio by extending the scope of assets - To seek strategic alliances with global players in investment - To outsource fund management to external providers - To expand investment into overseas markets - To diversify investment products to hedge risks - To increase transparency and remain ethical via strict internal controls - To establish a reputation as a world-class professional investor - To protect and improve the well-being of public servants, in order to improve the efficiency of the workforce - To pay benefits raised from contributions, investment returns and other sources - To invest in deposits, trusts securities and other approved instruments domestically and abroad - The reserve is managed by the Public Insurance Supervisory Board under the supervision of the Ministry of Civil Service. - To provide a stable standard of living for government employees through pension services, investment, loans and leasing to members, and the operation of resorts and housing - To manage efficiently contributions and benefits and to continue raising financing for member needs - To achieve sustainable growth through fund management - To invest in projects benefitting society - To develop social responsibility and create value - To make competence-based improvements - To strengthen risk management and fund management expertise - To formulate strategic asset allocation containing, among others, views on long-term macro trends, target return and risk - To make tactical adjustments if the portfolio underperforms significantly - To maintain sufficient liquidity so that pension payments are not interrupted - To maintain a reserve to supplement pension benefits for private school teachers - To stabilise pension financing in the long and mid-term by maintaining profitability - To maintain and increase the real value of the fund - To formulate an ALM-centric policy and asset management practice that strengthens performance - To enhance welfare to members and their survivors, as well as the development of the national economy and financial markets - To enhance organisational efficiency and member satisfaction - To maintain a diversified portfolio and manage it transparently - Guidelines are prepared by the asset management committee.


UIFJS NVMUJQMF VTFT JODMVEJOH GPS TIPSUUFSN QPMJDZ QVSQPTFT EJTDVTTFE BCPWF DMFBSMZ JMVTUSBUF 'PS FYBNQMF ,PSFBhT /1' NBOBHFNFOU DPNNJUUFF JT EJSFDUMZ TVQFSWJTFE BOE DIBJSFE CZ UIF .JOJTUSZ PG )FBMUI 8FMGBSF BOE 'BNJMZ "GGBJST -JLFXJTF +BQBOhT (1*' IBT OP HPWFSOJOH CPBSE UP TFQBSBUF IFMQ QVCMJD QPMJDZ BOE BTTFU NBOBHFNFOU "NCBDIU TIFFS BSHVFT UIBU UIF .JOJTUSZ PG )FBMUI -BCPVS BOE 8FMGBSF JO +BQBO FYFSUT

DPOUSPM PWFS UIF BTTFU BMMPDBUJPO NJY SJTL CVEHFU BOE EJTDPVOU SBUF 4JNJMBSMZ $IJOBhT /44' BOE JUT HPWFSOJOH CPEZ BSF DPOTJEFSFE MFHBMMZ JOEFQFOEFOU GSPN HPWFSONFOU BOE NJOJTUSJFT CVU JUT DIBJSNFO IBWF USBEJUJPOBMMZ CFFO IJHI MFWFM PGàDJBMT GSPN UIF $IJOFTF $PNNVOJTU 1BSUZ BOE .JOJTUSZ PG 'JOBODF XIJMF PUIFS NBOBHFNFOU TUBGG IBT CFFO BQQPJOUFE PS OPNJOBUFE CZ UIF 4UBUF $PVODJM 5IF TVQFSWJTJOH .JOJTUSZ PG )VNBO 3FTPVSDFT BOE 4PDJBM 4FDVSJUZ EFUFSNJOFT UIF BTTFU



.BZ



BMMPDBUJPO 4JNJMBS FYBNQMFT DBO CF ESBXO GSPN +BQBOhT .""T PS 5BJXBOhT -*' /1*' BOE -3' XIJDI BSF BMM NBOBHFE CZ UIF #VSFBV PG -BCPVS *OTVSBODF B HPWFSONFOU PSHBOJ TBUJPO 5IVT XIJMF QFOTJPO SFTFSWF GVOET TIPVME CF B EFEJDBUFE JOTUSVNFOU UP NFFU UIF MPOH UFSN PCKFDUJWF PG NBOBHJOH QVCMJD QFOTJPO MJBCJMJUJFT UIF JOEFQFOEFOU JOTUJUVUJPOT UIBU XPVME CF OFDFTTBSZ UP FOTVSF UIBU UIFZ BSF BDUVBMMZ VTFE GPS UIJT QVSQPTF EP OPU FYJTU -POHUFSN SJTLT BOE JOWFTUNFOU PCKFDUJWFT #FDBVTF NPTU &BTU "TJBO QVCMJD QFOTJPOT QBZ BO BOOVJUJTFE TUSFBN PG CFOFàUT XJUI TPNF LJOE PG JOEFYBUJPO QVCMJD SFTFSWF GVOE JT UZQJDBMMZ FYQPTFE UP MPOHFWJUZ JOáBUJPO BOE XBHF HSPXUI SJTL 8JUI MJUUMF UP OP BOOVJUJTBUJPO JO DPSQPSBUF QFOTJPOT JO UIF SFHJPO TFF TFDUJPO

QFOTJPO SFTFSWFT BSF JO GBDU UIF NBJO TPVSDF PG JOTVSBODF BHBJOTU MPOHFWJUZ SJTL JO &BTU "TJB 'PS QFOTJPO SFTFSWFT UIJT SJTL JT TJHOJàDBOU CFDBVTF SFUJSFNFOU BHFT UFOE UP CF MPX BOE MPOHFWJUZ BTTVNQ UJPOT VTFE JO BDUVBSJBM SFWJFXT VOSFMJBCMF TFF $BTT #VTJOFTT 4DIPPM .PP 0LTBOFO BNPOH PUIFST /FWFS UIFMFTT MPOHFWJUZ SJTL JT OPU FYQMJDJUMZ UBLFO JOUP BDDPVOU JO UIFTF SFTFSWF GVOET "OUPMÎO *OáBUJPO SJTL DBO BMTP JNQBDU UIF MJBCJMJUZ PG UIF SFTFSWF BEWFSTFMZ EFQFOEJOH PO UIF TUBUF PG UIF CVTJOFTT DZDMF 4DIXBSU[ 5IF QFOTJPOT QBJE CZ 5BJXBOhT SFTFSWFT BSF B DBTF JO QPJOU TJODF UIFZ HVBSBOUFF B NJOJNVN

SFBM JOUFSFTU SBUF )PXFWFS UIF FYBNQMF PG +BQBO TVHHFTUT UIBU IJHI JOáBUJPO JT OPU OFDFTTBSJMZ BO PVUDPNF PG UIF &BTU "TJBO EFWFMPQNFOU NPEFM XIFO DPNCJOFE XJUI QPQVMBUJPO BHFJOH BT EJTDVTTFE PO TFDUJPO *U SFNBJOT UIBU UIF FYJTUFODF PG QFOTJPO SFTFSWFT BMTP QSPWJEFT UIF QVCMJD TFDUPS XJUI UIF PQQPSUVOJUZ UP NBOBHF UIPTF SJTLT )PXFWFS UIF JOWFTUNFOU PCKFDUJWFT PG QFOTJPO SFTFSWFT JO &BTU "TJB POMZ BEESFTT UIF OFFE UP NBOBHF MJBCJMJUJFT JOEJSFDUMZ !

!

!

+BQBOhT (1*' BJNT UP CFBU XBHF HSPXUI BOE BDIJFWF CFODINBSL SFUVSOT JO FBDI BTTFU DMBTT BU UIF EFTJSFE BHHSFHBUF SJTL MFWFM .JOJTUSZ PG )FBMUI -BCPVS BOE 8FMGBSF )JTUPSJDBMMZ UIF (1*' IBT IBE MPXDPTU BOE MPXSJTL BQQSPBDI "NCBDIUTIFFS CVU IBT SFDFOUMZ CFFO EJTDVTTJOH UIF JODMVTJPO PG OFX BTTFU DMBTTFT JO JUT JOWFTUNFOU TFU UP JNQSPWF QFSGPSNBODF $IJOBhT /44' BJNT UP CFBU JOáBUJPO JO UIF MPOH SVO CVU BMTP UP FYDFFE BO JOWFTUNFOU CFODINBSL JO UIF TIPSU SVO ;IFOH )PXFWFS $IJOBhT /44' EPFT OPU PGàDJBMMZ IBWF MJBCJMJUJFT &WFO UIPVHI JU JT TVQQPTFE UP BDU BT B QFOTJPO CVGGFS JU IBT OPU CBDLFE VQ SFDFOU QSPWJODJBM PCMJHBUJPO TIPSUGBMMT 5IVT XIJMF JU BDUT BT BTTFU NBOBHFS UP OJOF $IJOFTF QSPWJODFT JUT NBOEBUF SFNBJOT QBSUMZ BE IPD TFF ;IFOH -FDLJF BOE 9JBP BNPOH PUIFST ,PSFBhT /1' JT SFUVSOTFFLJOH JO UIF TIPSU SVO XIJMF JU BMTP BJNT UP QSFTFSWF GVOE "O &%)&$3JTL *OTUJUVUF 1VCMJDBUJPO


.BZ



WBMVF JO SFBM UFSNT PWFS UIF MPOH QFSJPE /BUJPOBM 1FOTJPO 'VOE 5IVT QFOTJPO SFTFSWFT BSF UZQJDBMMZ OPU VTFE UP NBOBHF UIF MJBCJMJUJFT UIBU UIFZ BOE UIF QVCMJD TFDUPS BSF FYQPTFE UP JO UIF DPOUFYU PG 1":( QFOTJPO TZTUFNT 5IF NBOBHFNFOU PG SFTFSWF GVOET TVGGFST GSPN TJHOJàDBOU áBXT JODMVEJOH UIF BCTFODF PG XFMMEFàOFE JOWFTUNFOU PCKFDUJWFT BJNFE TPMFMZ BU NBOBHJOH UIF SFTFSWF GVOE JO UIF DPOUFYU PG UIF QFOTJPO TZTUFNhT MJBCJMJUZ BOE UIF JOáVFODF PG UIF QVCMJD TFDUPS PWFS UIF NBOBHFNFOU PG UIF SFTFSWF GVOE JO PSEFS UP BDIJFWF VOSFMBUFE BOE QPUFO UJBMMZ DPOUSBEJDUPSZ PCKFDUJWFT MJOLFE XJUI FDPOPNJD EFWFMPQNFOU PS JOEVTUSJBM QPMJDZ BT EJTDVTTFE JO "T B SFTVMU SFTFSWF GVOET IBWF MPPTFMZ EFàOFE PCKFDUJWFT BOE OP QSFDJTF BTTFTTNFOU PG UIFJS MJBCJMJUJFT 6OEFSTUBOEJOH B SFTFSWF GVOEhT MJBCJMJUZ JT BMTP DPNQMJDBUFE CZ UIF DPOUJOVPVT CVU VODFSUBJO QSPDFTT PG SFGPSNJOH QVCMJD QFOTJPOT BOE JOUSPEVDJOH OFX BDDPVOUJOH PS BDUVBSJBM TUBOEBSET *O UIF BCTFODF PG XFMMEPDVNFOUFE MJBCJM JUJFT BOE HJWFO UIF HPWFSOBODF DIBMMFOHFT NFOUJPOFE BCPWF MPOHUFSN JOWFTUNFOU PCKFDUJWFT BSF TFU WFSZ MPPTFMZ BOE NVDI NPSF BUUFOUJPO JT HJWFO UP TIPSUUFSN PCKFD UJWFT *O UIJT DPOUFYU MPTT BWFSTJPO QMBZT BO JNQPSUBOU SPMF BOE UFOET UP TUFFS JOWFTUNFOU EFDJTJPOT UPXBSET TVCPQUJNBM TUSBUFHJFT

#FGPSF EJTDVTTJOH DVSSFOU JOWFTUNFOU NBOBHFNFOU USFOET BU &BTU "TJBhT QFOTJPO SFTFSWF GVOET JO TFDUJPO XF SFWJFX UIFJS TIPSUUFSN DPOTUSBJOUT XIJDI NVTU BMTP CF UBLFO JOUP BDDPVOU UP EFWFMPQ BEFRVBUF JOWFTUNFOU TPMVUJPOT

*MMEFàOFE TIPSUUFSN DPOTUSBJOUT -JLF PUIFS WFIJDMFT XJUI JNQMJDJU QFOTJPO MJBCJMJUJFT SFTFSWF GVOET NVTU OPU POMZ TFU MPOHUFSN JOWFTUNFOU HPBMT CVU BMTP PQFSBUF VOEFS B OVNCFS PG TIPSUUFSN DPOTUSBJOUT 5IFTF DPOTUSBJOUT TIPVME BEESFTT BNPOHTU PUIFS UIJOHT BOZ TZTUFNJD JTTVFT SFHVMBUJPO BOE SJTL QSFGFSFODFT )PXFWFS &BTU "TJBO SFTFSWF GVOET BSF GPVOE UP IBWF SBUIFS JMMEFàOFE TIPSU UFSN DPOTUSBJOUT JG BOZ PGàDJBM DPOTUSBJOUT BU BMM XIFO JU DPNFT UP JOWFTUNFOU QPMJDZ "MPOH XJUI UIF BCTFODF PG DMFBSMZ EFàOFE MPOHUFSN PCKFDUJWFT UIJT TUBUF PG BGGBJST QSFDMVEFT UIF EFàOJUJPO BOE EFWFMPQNFOU PG BEFRVBUF JOWFTUNFOU TPMVUJPOT GPS SFTFSWF GVOET /FYU XF EFUBJM UIF GVOEJOH SVMFT BOE JOWFTUNFOU SFTUSJDUJPOT PG SFTFSWF GVOET JO &BTU "TJB 'VOEJOH SVMFT 1FOTJPO SFTFSWFT VOEFSHP BDUVBSJBM SFWJFXT FWFSZ UISFF UP àWF ZFBST UIF SFTVMUT PG XIJDI BSF PGUFO OPU NBEF QVCMJD 5IFJS GVOEJOH SBUJP PCKFDUJWFT BSF UZQJDBMMZ FYQSFTTFE BT B NVMUJQMF PG BOOVBM CFOFàU PCMJHBUJPOT CVU UIJT NVMUJQMF MFBWFT B TJHOJàDBOU HSFZ BSFB



.BZ



BOE EPFT OPU BQQFBS UP CF TFU PS SFWJTFE JO B TZTUFNBUJD NBOOFS *O FGGFDU UIF GVOEJOH SVMFT PG &BTU "TJBhT SFTFSWF GVOET QSFWFOU UIFN GSPN EFWFM PQJOH B DPNQSFIFOTJWF WJFX PG UIFJS BTTFUT BOE MJBCJMJUJFT #FDBVTF UIFJS GVOEJOH HPBMT PGUFO PNJU BOZ BDUVBSJBM BTTVNQUJPOT UIFSF JT OP MFHBM SFRVJSFNFOU GPS UIFTF GVOET UP JNQSPWF UIFJS NBOBHFNFOU QSBDUJDFT 'PS FYBNQMF GVOEJOH MFWFMT GPS +BQBOhT (1*' BSF DVSSFOUMZ TFU BU àWF UP TFWFO UJNFT BOOVBM CFOFàU FYQFOEJUVSFT 4JODF UIFZ BSF UP CF SFWJTFE HSBEVBMMZ BOE POMZ POF ZFBS PG CFOFàU FYQFOEJUVSFT JT FYQFDUFE UP CF MFGU PO SFTFSWF CZ .JOJTUSZ PG )FBMUI -BCPVS BOE 8FMGBSF ,PSFBhT /1' JT FTUJNBUFE UP IBWF TQFOU JUT TVSQMVT CZ .FBOXIJMF JU JT SFRVJSFE UP LFFQ B GVOEJOH SBUJP BCPWF PG BOOVBM FYQFOEJUVSF .PPO 5IF 5BJXBOFTF -*' BJNT UP BDIJFWF B TVSQMVT PG ZFBSTh CFOFàU QBZNFOUT $IJV

$IJOFTF 64* GVOET EP OPU IBWF B UBSHFU TVSQMVT ;IFOH 'VOEJOH SBUJPT CBTFE PO QSPQFS BTTFU MJBCJMJUZ BTTFTTNFOUT BSF UIVT JOFYJTUFOU JO SFTFSWF GVOET JO &BTU "TJB *OWFTUNFOU SFTUSJDUJPOT *OWFTUNFOU SFTUSJDUJPOT GVSUIFS DPOTUSBJOU UIF JOWFTUNFOU DIPJDFT BWBJMBCMF UP SFTFSWF GVOET UP NFFU UIFJS MPOHUFSN PCKFDUJWFT 3FTUSJDUJPOT DBO CF TUBUVUPSZ JF TUJQV MBUFE JO MBX PS TFMGJNQPTFE JF EFàOFE

XJUIJO UIF JOWFTUNFOU QPMJDZ PG UIF GVOE 3FTUSJDUJPOT DBO BMTP BGGFDU BTTFU BMMPDBUJPO WJB FJUIFS DPOTUSBJOJOH XFJHIUT JO DFSUBJO BTTFU DMBTTFT PS WJB TQFDJGZJOH UIF UZQFT PG JOWFTUNFOU JOTUSVNFOUT BMMPXFE 4UBUVUPSZ BTTFU BMMPDBUJPO XFJHIUT SFTUSJD UJPOT BQQMZ POMZ JO UIF DBTF PG $IJOBhT /44' XIJMF JO PUIFS DBTFT TVDI SFTUSJDUJPOT BSF TFMGJNQPTFE BT TIPXO JO UBCMF )PXFWFS DPOTUSBJOUT PO UIF UZQFT PG JOWFTUNFOU JOTUSVNFOUT BSF DPNNPO 5IFTF NBZ SFTUSJDU PS CBO UIF VTF PG DFSUBJO JOTUSV NFOUT BOE VTVBMMZ BQQMZ UP BMUFSOBUJWFT EFSJWBUJWFT MFOEJOH BOE CPSSPXJOH 4VDI SFTUSJDUJPOT JO +BQBO BQQMZ POMZ UP JOUFSOBMMZ NBOBHFE BTTFUT XIFSFBT UIFSF JT OP FWJEFODF UIBU UIFZ BQQMZ JO ,PSFB *O $IJOB BOE 5BJXBO TVDI DPOTUSBJOUT NBZ CF TUBUVUPSZ 'JOBMMZ SFTUSJDUJPOT NBZ BQQMZ UP UIF XFJHIU PG B TJOHMF TUPDL PS GVOE BT UIFZ EP FMTFXIFSF JO UIF XPSME 5IVT &BTU "TJBhT QFOTJPO SFTFSWF GVOET IBWF GFX TIPSU UFSN DPOTUSBJOUT HVJEJOH UIF JOWFTUNFOU NBOBHFNFOU QSPDFTT 'VOEJOH DPOTUSBJOUT FYQSFTTFE BT B NVMUJQMF PG BOOVBM CFOFàU PCMJHBUJPOT JHOPSF UIF EZOBNJD QSPàMF PG UIF SFTFSWFTh MJBCJMJUZ QSPDFTT 5IF JNQMFNFOUBUJPO PG QSPQFS GVOEJOH SBUJPT UIF WBMVF PG UIF QFOTJPO TDIFNFhT BTTFUT PWFS JUT BDDSVFEUPEBUF MJBCJMJUJFT

XPVME TJHOJàDBOUMZ JNQSPWF PVUDPNFT TJODF BT .BSUFMMJOJ BOE .JMIBV BSHVF JU JT OPU TP NVDI UIF QSFTFODF PG TIPSU UFSN GVOEJOH SBUJP DPOTUSBJOUT UIBU JT "O &%)&$3JTL *OTUJUVUF 1VCMJDBUJPO


.BZ



5BCMF 1FOTJPO SFTFSWF BMMPDBUJPO SVMFT

Country

Fund Total

Japan Japan Korea2 China Taiwan Taiwan Taiwan Taiwan

GPIF Chikyoren1 NPF NSSF LRF NPIF LIF GESSI

.. .. Below 60% Min 40%3 .. .. .. ..

Fixed Income Domestic 60-75% 54-64% Below 60% .. 12-30% .. .. ..

Int'l Total 2-15% .. 0-20% .. Below 10% Min 30% Max 20%4 Max 40% 7-18% .. 5 .. 0-45% 5 .. 0-45% .. 0-40%6

Equity Domestic 5-20% 4-14% Min 20% .. 20-40% .. .. ..

Statutory Constraints Int'l 5-15% 1-21% Min 10% Max 20%4 7-20% 0-45%5 0-45%5 ..

None None None Weights and instruments Instruments Weights and instruments Weights and instruments Weights and instruments

1 - The Chikyoren is one of several MAAs in Japan and is used as an illustrative example of a typical MAA's asset allocation bands. 2 - Data refers to NPF's target in 2016. In the intermediary term, it sets annual asset allocation targets only. 3 - Figure includes bank deposits, treasury bonds and policy financial bonds. 4 - Figure comprises total international exposure for equities and fixed income combined. 5 - Figure comprises total international exposure. 6 - Figure refers to stocks, ETFs and equity funds, among others. 7 - The table excludes other, sub-asset-class specific allocation bounds.


DPTUMZ GPS QFOTJPO GVOET BT UIFJS SFMVDUBODF UP JNQMFNFOU SJTLNBOBHFNFOU TUSBUFHJFT UIBU BSF PQUJNBM HJWFO TVDI SFHVMBUPSZ DPOTUSBJOUT .PSFPWFS UIF GSFRVFOU BCTFODF PG GPSNBM DPOTUSBJOUT PO BTTFU BMMPDBUJPO EFDJTJPOT JT TUSJLJOH HJWFO UIF PCTFSWFE BMMPDBUJPO DIPJDFT UIBU XF EJTDVTT JO TFDUJPO *OEFFE UIF NBKPSJUZ PG QFOTJPO SFTFSWFT JT JOWFTUFE WFSZ DPOTFSWBUJWFMZ BOE JO BMM MJLFMJIPPE TVCPQUJNBMMZ %FTQJUF UIF UIFPSFUJDBM GSFFEPN UP EFTJHO BTTFU BMMPDB UJPOT PUIFS DPOTJEFSBUJPOT MFBE UP WFSZ IJHI BMMPDBUJPOT UP MPXZJFMEJOH HPWFSONFOU CPOET

*OWFTUNFOU .BOBHFNFOU 8JUIPVU XFMMEFàOFE MPOHUFSN PCKFDUJWFT JO MJOF XJUI UIF SFTFSWFhT BDUVBM MJBCJMJUJFT BOE XJUIPVU DMFBS TIPSUUFSN DPOTUSBJOUT XF DBO FYQFDU &BTU "TJBhT SFTFSWF GVOET UP IBWF EJGàDVMUJFT BEPQUJOH JOWFTUNFOU TPMVUJPOT

àUUJOH UP UIFJS OFWFSUIFMFTT TJHOJàDBOU SPMF JO UIF SFHJPOhT QFOTJPO TZTUFNT /FYU XF SFWJFX UIF JOWFTUNFOU HPWFSOBODF BOE BTTFU BMMPDBUJPO DIPJDFT NBEF CZ SFTFSWF GVOET JO &BTU "TJB *OBEFRVBUF *OWFTUNFOU (PWFSOBODF 8JUI MJNJUFE JOEFQFOEFODF BOE B MBDL PG SJOHGFODJOH PG UIFJS BTTFUT UIF JOWFTUNFOU HPWFSOBODF PG &BTU "TJBhT SFTFSWF GVOET JT EPDVNFOUFE UP CF QPPS 1BMBDJPT 8F BMTP LOPX UIBU QPPS HPWFSOBODF JNQBJST FGàDJFOU SJTLUBLJOH 1IBO BOE )FHEF

BOE UIBU B EFDJTJPONBLJOH QSPDFTT SFMZJOH PO RVBMJàFE JOWFTUNFOU DPNNJUUFFT JT QSFGFSBCMF +BQBOhT (1*' EFDJTJPONBLJOH QSPDFTT SFWPMWFT BSPVOE UIF GVOE DIBJSNBO XIP JT BMTP JO DIBSHF PG BTTFU NBOBHFNFOU XIJMF UIF JOWFTUNFOU DPNNJUUFF IBT NFSFMZ BO BEWJTPSZ SPMF "NCBDIUTIFFS "U TPNF PG +BQBOhT .VUVBM "JE "TTPDJBUJPOT



.BZ



.""T

UIF FTUBCMJTINFOU PG BO JOWFTUNFOU DPNNJUUFF JT EFFNFE EFTJSBCMF CVU OPU NBOEBUPSZ 'VSUIFSNPSF %PSGNBO

IJHIMJHIUT UIF JNQPSUBODF PG FYQFSUJTF BT BO BQQPJOUNFOU DSJUFSJPO ZFU RVBMJàDBUJPO SFRVJSFNFOUT GPS TUBGG BSF VODMFBS $IJOBhT /44'hT JOWFTUNFOU DPNNJUUFF JO DPOUSBTU EFUFSNJOFT UIF TUSBUFHJD BTTFU BMMPDBUJPO UIF BOOVBM BOE RVBSUFSMZ JOWFTUNFOU QMBOT %FDJTJPOT BSF NBEF UISPVHI NBKPSJUZ WPUJOH XIJMF UIF DIBJSNBO SFTFSWFT UIF SJHIU UP WFUP ,PSFBhT /1'hT JOWFTUNFOU DPNNJUUFF BMTP TFUT B CFUUFS FYBNQMF JU JT DPNQSJTFE PG B DIJFG JOWFTUNFOU PGàDFS BOE IBT GVODUJPOBM IFBET 5IF DPNNJUUFF NFFUT NPOUIMZ XIJMF B TFQBSBUF DPNNJUUFF GPDVTFT PO BMUFSOBUJWF JOWFTUNFOUT 5IF 5BJXBOFTF 141' IBT NBOBHFNFOU BOE TVQFSWJTPSZ CPBSET CVU MBDLT BO JOWFTUNFOU QPMJDZ

'PS FYBNQMF +BQBOhT (1*' VTFT B ("3$) NPEFM XIJMF ,PSFBhT /1' VTFT 7B3 NFBTVSFT 5IF /44'hT MPOHUFSN SJTL QPMJDZ JT FYQSFTTFE JO UFSNT PG B QFSDFOUBHF SFUVSO XIJMF JO UIF TIPSU UFSN JU IBT B 7B3CBTFE SJTL CVEHFU ;IFOH

3JTL NBOBHFNFOU BU QFOTJPO SFTFSWFT UIVT SFMJFT QSJNBSJMZ PO EJWFSTJàDBUJPO BOE QPSUGPMJP SFCBMBODJOH "TTFU BMMPDBUJPO BOE EJWFSTJàDBUJPO "TTFU BMMPDBUJPO EFDJTJPOT JO &BTU "TJBhT SFTFSWF BOE PUIFS QFOTJPO GVOET SFNBJO CJBTFE UPXBSET MPDBM JOWFTUNFOUT BOE àYFE JODPNF BT TIPXO PO UBCMF 5IF IPNF CJBT JT XFMM EPDVNFOUFE JO àOBODJBM MJUFSBUVSF TFF ,BOH BOE 4UVM[ -FXJT $PWBM BOE .PTLPXJU[ BNPOH NBOZ PUIFST

IPXFWFS JU JT OPU DMFBS XIFUIFS UIJT CJBT JT JO UIF CFTU àOBODJBM JOUFSFTU PG SFTFSWF GVOET 4FWFSJOTPO BOE 4UFXBSU *OEFFE QVCMJD QFOTJPO TZTUFNT BSF MBSHFMZ ESJWFO CZ OBUJPOBM GBDUPST UIBU BSF MJLFMZ UP JNQBDU MPDBM BTTFU SFUVSOT BT XFMM *U XPVME UIFO TFFN MPHJDBM UIBU GVOET TFFL UP NJUJHBUF UIFJS OBUJPOBM FYQPTVSF CZ GPMMPXJOH B CSPBE JOUFSOBUJPOBM EJWFSTJà DBUJPO TUSBUFHZ CVU UIJT JT IBSEMZ UIF DBTF JO UIF SFHJPO

3JTL CVEHFUT JO &BTU "TJBhT QFOTJPO SFTFSWFT BSF SBSFMZ EFàOFE "T XF BSHVFE BCPWF MBDLJOH BO FYQMJDJU DPOTJEFSBUJPO PG SJTL JO TQJUF PG SFUVSOTFFLJOH PCKFDUJWFT JODFO UJWJTFT FYDFTTJWF SJTLUBLJOH 4FWFSJOTPO BOE 4UFXBSU BOE QPTTJCMZ TVCPQUJNBM EFDJTJPOT BCPVU SJTL FYQPTVSF

4UJMM 13'T OPU POMZ IBWF UIF JODFOUJWF CVU BMTP UIF TDBMF BOE BCJMJUZ UP JOWFTU JOUFS OBUJPOBMMZ 5IF QFSTJTUFODF BOE FYUFOU PG UIF IPNF CJBT JO UIFJS JOWFTUNFOU DIPJDFT TVHHFTUT UIBU JOUFSOBUJPOBM EJWFSTJàDBUJPO IBT B MPU UP PGGFS UP TVDI BDUPST

.PTU &BTU "TJBO SFTFSWF GVOET GPDVT POMZ PO SJTL NFBTVSFNFOU XIJDI JT POMZ UIF àSTU TUFQ JO DPNQSFIFOTJWF SJTL NBOBHFNFOU &WFO UIPVHI SJTL NFBTVSFNFOU XJUIPVU B DPSSFTQPOEJOH NJUJHBUJPO TUSBUFHZ MFBET UP JOTVGàDJFOU VOEFSTUBOEJOH PG QPSUGPMJP EZOBNJDT

"DDPSEJOH UP #MVOEFMM8JHOBMM FU BM

UIF HMPCBM USFOE XJUI SFHBSE UP UIF BTTFU BMMPDBUJPO PG 13'T JT UPXBSET BO JODSFBTF PG PWFSTFBT JOWFTUNFOUT 4PNF GVOET IPXFWFS IBWF TUSJDU JOTUSVDUJPOT UP JOWFTU EPNFT UJDBMMZ PGUFO GPS QPMJUJDZ NPUJWFT TVDI BT TUJNVMBUJOH B DFSUBJO DMBTT PG BTTFUT 'PS "O &%)&$3JTL *OTUJUVUF 1VCMJDBUJPO


.BZ



'JHVSF 0CTFSWFE EPNFTUJD BOE àYFE JODPNF CJBT PG QFOTJPO SFTFSWF GVOET D

70%

Norwegian GPF

60% Taiwanese PSPF 50%

French AGIRC-ARRCO

New Zealand NZSF

Taiwanese LIF Chinese NSSF

40%

Taiwanese NPIF 30%

Japanese MAA Chikyoren Korean NPF Japanese GPIF Japanese MAA Shigaku Korean KTPF Japanese MAA Kyosai Shichousoren

Equity Allocation

Canadian CPP Taiwanese LRF

20%

Portugese SSFSF

Polish DRF

10%

Belgian Zilverfonds Mexican IMSS 100%

Spainish SSRF 80%

60%

40%

20%

0%

0%

Domestic Allocation

4PVSDF "OOVBM SFQPSUT BOE 0&

%$5BCMF 0CTFSWFE BTTFU BMMPDBUJPOT PG QFOTJPO SFTFSWF GVOET JO &BTU "TJB D

Country

Fund

Japan

GPIF

Japan Korea China Taiwan

Fixed Income Total 72%

Domestic

Equity Int'l 9%

Total Domestic Int'l 24% 13% 11%

Chikyoren NPF NSSF

71% 68% 51%

63%1 61% 64% ..

10% 4% ..

27% 24% 32%

15% 18% 26%

12% 6% 6%

LRF

35%

19%

16%

41%

33%

8%

2

5

Alternatives

Cash

..

4%

.. 8%

1% .. 1%

3

16%4 ..

24%

1 - Figure includes domestic FILP bonds. 2 - The Chikyoren is one of several MAAs in Japan and is used as an illustrative example of a typical MAA's asset allocation. 3 - It is known that the Chikyoren invests in real estate and derivatives but figures are not available. 4 - Figure comprises industrial sector direct investments. 5 - Figure includes loans.




.BZ



JOTUBODF UIF /44' IBT B NBOEBUF UP JOWFTU JUT BTTFUT JO UIF EPNFTUJD QSJWBUF FRVJUZ NBSLFU FWFO UIPVHI JU JT VODMFBS XIFUIFS JU JT JO UIF CFTU JOUFSFTU PG QFOTJPO àOBODJOH 4FWFSJOTPO BOE 4UFXBSU NBLF UIJT QPJOU GPS 4XFEJTI SFTFSWF GVOET )PXFWFS BO FWPMVUJPO PG UIF BTTFU BMMPDBUJPO DIPJDFT PG SFTFSWF GVOET JT OPUJDFBCMF JO UIF SFHJPO !

!

!

*OUFSOBUJPOBM WFSTVT MPDBM BTTFUT &BTU "TJBhT SFTFSWF GVOET IBWF UIF TDBMF BOE BCJMJUZ UP JOWFTU JOUFSOBUJPOBMMZ 5IVT UIFSF JT B USFOE UPXBSET JODSFBTJOH JOUFSOBUJPOBM EJWFSTJàDBUJPO 6Q VOUJM ,PSFBhT /1' XBT JOWFTUFE BMNPTU FYDMVTJWFMZ JO EPNFTUJD àYFE JODPNF CVU JT OPX EJWFSTJGZJOH SBQJEMZ TFF UBCMF 5BJXBOhT QFOTJPO BTTFUT FWPMWFE GSPN BMNPTU JOWFTUFE JO EPNFTUJD EFQPTJUT POMZ UXP EFDBEFT BHP UP BO JODSFBTJOHMZ XFMMCBMBODFE BMMPDBUJPO ,PSFBhT ,51' EJE OPU NBLF GPSFJHO JOWFTUNFOUT CFGPSF $IJOBhT /44' IBT CFFO JOWFTUJOH JOUFSOBUJPOBMMZ TJODF "MUFSOBUJWF WFSTVT USBEJUJPOBM BTTFUT #PUI ,PSFBhT /1' BOE $IJOBhT /44' IBWF TUSPOH DPNNJUNFOUT UP BMUFSOBUJWF JOWFTUNFOUT XIJMF 5BJXBOFTF GVOET BSF LOPXO UP IPME B MPU PG DBTI ,PSFBhT /1' JOUSPEVDFE BMUFSOBUJWF JOWFTUJOH JO XIJMF UIF ,51' TUBSUFE FYQBOEJOH JOUP UIJT BTTFU DMBTT NPSF SFDFOUMZ 5IF /44' IBT CFFO BMMPXFE UP EFBM JO UIF BTTFU DMBTT TJODF "DUJWF WFSTVT QBTTJWF NBOBHFNFOU .PTU PG +BQBOhT (1*'hT BTTFUT BSF IBOEMFE JO QBTTJWF JOEFYFE NBOEBUFT CVU B USFOE

!

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hT QPSUJPO PG JOUFSOBMMZ NBOBHFE BTTFUT IBT EPVCMFE MBUFMZ JU TUJMM QBMFT JO DPNQBSJTPO XJUI ,PSFBhT /1' XIJDI NBJOUBJOT BO BMNPTU FRVBM TQMJU PG JOUFSOBM BOE FYUFSOBM NBOBHFNFOU /BUJPOBM 1FOTJPO 'VOE "SHVBCMZ UISPVHI NPSF JOUFSOBM NBOBHFNFOU UIF GVOE IBT BNBTTFE NPSF LOPXMFEHF JO HMPCBM BTTFU NBOBHFNFOU UIBO JU XPVME IBWF PUIFSXJTF BMMPXJOH JU UP UBLF PO SFTFBSDIJOUFOTJWF BTTFU DMBTTFT TVDI BT BMUFSOBUJWF JOWFTUNFOUT 5IF /1' JOUSPEVDFE FYUFSOBM NBOBHFNFOU POMZ JO XIFSFBT UIF (1*' IBT CFFO BCMF UP PVUTPVSDF TJODF 1BMBDJPT $IJOBhT /44' JOWFTUT EJSFDUMZ PG JUT BTTFUT -FDLJF BOE 9JBP

5IF IZQPUIFTJT PG B OFHBUJWF EFNPOTUSBUJPO FGGFDU PG UIF (1*'hT BMMPDBUJPO DIPJDFT BOE TVCTFRVFOU QFSGPSNBODF DPVME FYQMBJO UIF FWPMVUJPO PG BQQSPBDIFT BOE QSBDUJDFT JO ,PSFB 5BJXBO BOE $IJOB )FODF PVS TBNQMF PG &BTU "TJBO SFTFSWF GVOET DBO CF TQMJU JOUP UXP HSPVQT +BQBOFTF "O &%)&$3JTL *OTUJUVUF 1VCMJDBUJPO


.BZ



BOE ,PSFBO GVOET IBWF B WFSZ TUSPOH àYFE JODPNF CJBT *O DPOUSBTU 5BJXBOFTF BOE .BJOMBOE $IJOFTF SFTFSWFT IBWF NPWFE GSPN TJNJMBSMZ àYFE JODPNF GPDVTFE BMMPDB UJPOT UP NPSF CBMBODFE DIPJDFT )PXFWFS FBDI BUUFNQU UP JNQSPWF EJWFSTJ àDBUJPO JT EPOF PO B QJFDFNFBM CBTJT BOE SFMJFT PO QPUFOUJBMMZ JOBEFRVBUF BQQSPBDIFT *O QBSUJDVMBS BT XJUI OVNFSPVT JOTUJUV UJPOBM JOWFTUPST UIF FWPMVUJPO PG ,PSFBO BOE 5BJXBOFTF SFTFSWFT NBZ CF EJWFSTJà DBUJPO hJO OBNF POMZh JG NVMUJBTTFU DMBTT TUSBUFHJFT QSPWF OPU UP CF SFTJMJFOU UP TJHOJG JDBOU NBSLFU EPXOUVSOT .PSFPWFS UXP JNQPSUBOU QIFOPNFOB BGGFDUJOH BTTFU BMMPDBUJPO GPS TPNF SFTFSWF GVOET EFTFSWF IJHIMJHIUJOH !

!

"TTFU BMMPDBUJPO DIPJDFT EJDUBUFE CZ TIPSU UFSN QVCMJD QPMJDZ PCKFDUJWFT DBO MFBE UP WFSZ MBSHF QPTJUJPOT EFEJDBUFE UP EPNFTUJD QVCMJD EFCU TFDVSJUJFT ZJFMEJOH WFSZ MPX OPNJOBM SFUVSOT BOE PGUFO OFHBUJWF SFBM SFUVSOT FH (1*' $IJOBhT /44' BOE 64* *O B WBSJBOU PG UIF DMBTTJD EFCU PWFSIBOH QSPCMFN .ZFST

SFTFSWF GVOE NBOBHFST UIBU àOE UIFNTFMWFT PCMJHFE UP BCTPSC MBSHF BNPVOUT PG MPXZJFMEJOH QVCMJD EFCU DBO SFTQPOE CZ JOWFTUJOH UIF SFNBJOJOH BMMPDBUJPO JO IJHISJTL BTTFUT TBGF JO UIF LOPXMFEHF UIBU BOZ MPTTFT XJMM CF TPDJBMJTFE XIJMF UIFZ XJMM CFOFàU GSPN BOZ FYDFTT SFUVSOT 5IJT JT BMM UIF NPSF MJLFMZ JG UIF SFTFSWF GVOE JO RVFTUJPO IBT B SFUVSO UBSHFU 5IVT $IJOBhT /44' UZQJDBMMZ TVGGFST JOWFTUNFOU MPTTFT JO JUT àYFE JODPNF BOE FWFO FRVJUZ QPSUGPMJPT

CVU JOWFTUT BHHSFTTJWFMZ JO QSJWBUF FRVJUZ UP EFMJWFS QPTJUJWF BHHSFHBUF SFUVSOT "T BSHVFE BCPWF JO UIF BCTFODF PG DMFBSMZ EFàOFE MPOHUFSN PCKFDUJWFT BOE USBOT QBSFOU BOE XFMMVOEFSTUPPE TIPSUUFSN DPOTUSBJOUT UIF SFRVJSFE BTTFU BMMPDBUJPO GPS &BTU "TJBhT QFOTJPO SFTFSWFT JT EJGàDVMU UP EFSJWF 1FSGPSNBODF 5IF EJGGFSFODFT CFUXFFO UIF BTTFU BMMPDBUJPO DIPJDFT PG UIF UXP HSPVQT EFTDSJCFE BCPWF BSF SFáFDUFE JO UIFJS JOWFTUNFOU QFSGPS NBODF 6TJOH BWBJMBCMF EBUB àHVSFT BOE DPNQBSF JOWFTUNFOU QFSGPSNBODF PO B àWF ZFBS BOE OJOFZFBS CBTJT 5IF QFSGPSNBODF PG +BQBOhT (1*' JT GPVOE UP SFáFDU UIBU PG JUT BTTFU BMMPDBUJPO CJBT BOE JO UVSO UIBU PG UIF +BQBOFTF FDPOPNZ $PNQBSFE UP UIF (1*' ,PSFBhT /1' BDIJFWFT B NVDI NPSF BUUSBDUJWF SJTLSFUVSO USBEF PGG BT TIPXO PO àHVSF 5IF WFSZ IJHI QFSGPSNBODF PG ,PSFBO FRVJUZ NBSLFUT PWFS UIF QFSJPE JT BO JNQPSUBOU GBDUPS GPS UIJT TFFNJOHMZ TVDDFTTGVM SFTVMU TFF àHVSF %FTQJUF EJGGFSFODFT JO PVUDPNFT JU SFNBJOT UIBU UIF DZDMF PG TZTUFNBUJD BOE QBSBNFUSJD SFGPSNT JO SFTFSWF GVOET BDSPTT UIF SFHJPO IBT OPU IFMQFE UP QSJPSJUJTF UIF SPMF PG BTTFU JODPNF 8IJMF SFTFSWF GVOET PGàDJBMMZ BJN UP BEKVTU UIFJS BTTFU BMMPDBUJPO GPMMPXJOH BDUVBSJBM SFWJFXT UIJT BQQSPBDI JT OPU BMXBZT SFáFDUFE JO QSBDUJDF *O UIF SFHJPO BDUVBSJBM



.BZ



'JHVSF 'JWF BOE OJOFZFBS BOOVBMJTFE SFUVSOT PG &BTU "TJBhT SFTFSWF GVOET

15% 13% 11% 9% 7% 5% 3% 1% -1%

Annualised 5-Year Return

China's NSSF

Korea's NPF

Taiwan's LIF

Annualised 9-Year Return

Taiwan's LRF

Taiwan's PSPF

Japan's Shigaku Kyosai

Japan's GPIF

4PVSDF BOOVBM SFQPSUT BVUIPSTh DPNQVUBUJPOT

'JHVSF /JOFZFBS BOOVBMJTFE SFUVSOT BOE WPMBUJMJUZ

12%

9-Year Annualised Return

10%

China's NSSF

8% Korea's NPF 6%

4% Taiwan's LIF

Taiwan's LRF 2%

0%

Japan's GPIF

0%

5%

10%

Taiwan's PSPF

Japan's Shigaku Kyosai

15%

20%

25%

30%

35%

40%

45%

50%

9-Year Annualised Volatility




.BZ



'JHVSF 4IBSQF SBUJPT PG &BTU "TJBhT QFOTJPO SFTFSWFT

0.3

0.25

Korean NPF Chinese NSSF

0.2

0.15

0.1

Taiwanese LRF Taiwanese LIF

0.05

0

-0.05

Taiwanese PSPF

5-Year SR Japanese Shigaku Kyosai Japanese GPIF

-0.1


SFWJFXT TFFN UP MFBE UP DPOUSJCVUJPO SBUF JODSFBTFT SBUIFS UIBO DIBOHFT JO BTTFU BMMPDBUJPOT 5IF MFHBM GSBNFXPSLT GPS 5BJXBOhT -*' BOE -3' PGGFS B HPPE FYBNQMF

JNQMFNFOUBUJPO PG QSPQFS SJTL NBOBHFNFOU UFDIOJRVFT

*NQSPWFNFOUT *OWFTUNFOU NBOBHFNFOU BQQSPBDIFT JO QFOTJPO SFTFSWF GVOET IBWF VOEFOJBCMZ FWPMWFE BOE JNQSPWFE PWFS UIF QBTU EFDBEFT ,PSFB BOE $IJOB JO QBSUJDVMBS TFFN UP IBWF MFBSOFE GSPN UIF +BQBOFTF DBTF BOE UP IBWF NBEF BUUFNQUT BU CFUUFS EJWFSTJàDBUJPO BOE JOWFTUNFOU HPWFSOBODF )PXFWFS UIF NBOBHFNFOU PG UIF SFTFSWFT SFNBJOT UPP EFQFOEFOU PO UIF DPOEJUJPOT PG UIF EPNFTUJD FDPOPNZ BOE GPMMPXJOH NVMUJQMF PCKFDUJWFT JT OPU OFDFTTBSJMZ DPOTJTUFOU XJUI UIF TVQQPSU PG UIF QVCMJD QFOTJPO TZTUFN 5IVT JNQSPWFNFOUT BSF QPTTJCMF PO TFWFSBM GSPOUT GSPN CFUUFS HPWFSOBODF UP UIF

5IF EJTDVTTJPO BCPWF TVHHFTUT B OVNCFS PG TUSBJHIUGPSXBSE QPJOUT UP JNQSPWF QFOTJPO SFTFSWF GVOET JO &BTU "TJB #FTU QSBDUJDFT GPS QFOTJPO SFTFSWF GVOET BSF GBJSMZ DPOTFOTVBM JO UIF MJUFSBUVSF (VJEFMJOFT IBWF CFFO QVCMJTIFE CZ UIF*O UFSOBUJPOBM 4PDJBM 4FDVSJUZ "TTPDJBUJPO JO UIF DPOUFYU PG TPDJBM TFDVSJUZ SFTFSWF GVOET %BT FU BM PGGFS B TIPSU BOE DMFBS TVNNBSZ PG TUBUFPGUIF BSU QSBDUJDFT JO TFUUJOH VQ 48'T XJUI TPNF TQFDJàD DPOTJEFSBUJPOT GPS 113'T 5IFZ EJTDVTT CPUI UIF HPWFSOBODF BOE JOWFTUNFOU TJEF 4JNJMBS SFDPNNFOEBUJPOT XJUI BO FNQIBTJT PO HPWFSOBODF DBO CF GPVOE JO 5SVNBO 5XP EPDVNFOUT



.BZ



5BCMF (PWFSOBODF 4VDDFTT 'BDUPST

'BDUPS

%FTDSJQUJPO

$PSF *OQVU 'BDUPST .JTTJPO $MBSJUZ &GGFDUJWF 3FTPVSDF "MMPDBUJPO -FBEFSTIJQ 4USPOH #FMJFGT 3JTL #VEHFU 'SBNFXPSL 'JUGPS1VSQPTF .BOBHFS -JOF6Q

$MFBS EFà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àUGPSQVSQPTF DSJUFSJB

&YDFQUJPOBM 'BDUPST *OWFTUNFOU %FDJTJPO.BLFS 3FRVJSFE $PNQFUFODJFT &GGFDUJWF $PNQFOTBUJPO $PNQFUJUJWF 1PTJUJPOJOH 3FBM5JNF %FDJTJPOT -FBSOJOH 0SHBOJTBUJPO

6TF PG B IJHIMZ JOWFTUNFOU DPNQFUFOU JOWFTUNFOU GVODUJPO UBTLFE XJUI DMFBSMZ TQFDJàFE SFTQPOTJCJMJUJFT BOE DMFBS BDDPVOUBCJMJUZ UP UIF JOWFTUNFOU DPNNJUUFF 4FMFDUJPO PG B CPBSE BOE TFOJPS TUBGG BDDPSEJOH UP OVNFSJD TLJMMT DBQBDJUZ GPS MPHJDBM UIJOLJOH BOE UIF BCJMJUZ UP UIJOL BCPVU SJTL JO UIF QSPCBCJMJUZ EPNBJO $PNQFOTBUJPO QSBDUJDFT VTFE UP CVJME CFODI TUSFOHUI BOE BMJHO BDUJPOT UP UIF NJTTJPO XJUI EJGGFSFOU TUSBUFHJFT XPSLJOH BDDPSEJOH UP GVOE DPOUFYU "O JOWFTUNFOU QIJMPTPQIZ BOE QSPDFTT GSBNFE CZ SFGFSFODF UP UIF JOTUJUVUJPOhT DPNQBSBUJWF BEWBOUBHFT BOE EJTBEWBOUBHFT 6UJMJTBUJPO PG EFDJTJPONBLJOH TZTUFNT UIBU GVODUJPO JO SFBM UJNF BOE OPU DBMFOEBS UJNF -FBSOJOH DVMUVSF XIJDI EFMJCFSBUFMZ FODPVSBHFT DIBOHF BOE DIBMMFOHFT UIF DPNNPOQMBDF BTTVNQUJPOT PG UIF JOEVTUSZ 4PVSDF $MBSL BOE 6SXJO

CZ UIF 8PSME #BOL .VTBMFN BOE 1BMBDJPT BOE 3BKLVNBS BOE %PSGNBO

IBWF BO JOEFQUI DPMMFDUJPO PG QBQFST EFTDSJCJOH UIF TUBUFPGUIFBSU PG HPWFS OBODF BOE JOWFTUNFOU BT BQQMJFE CZ QSBDUJUJPOFST JO 113'T *NQSPWJOH (PWFSOBODF *OEFQFOEFOU HPWFSOBODF TUSVDUVSFT BSF BCTPMVUFMZ OFDFTTBSZ UP BMMPX UIF EFTJHO BOE JNQMFNFOUBUJPO PG JOWFTUNFOU TPMVUJPOT UIBU NFFU UIF PCKFDUJWF PG GVOEJOH BMM PS QBSU PG 1":( QFOTJPO MJBCJMJUJFT 5BCMF TVNNBSJTFT UIF NBJO TVDDFTT GBDUPST GPS UIF HPWFSOBODF PG JOTUJUVUJPOBM GVOET XIJDI BQQMZ XJEFMZ UP SFTFSWF GVOET JO &BTU "TJB " DMFBSMZ EFàOFE NJTTJPO BOE DPNNJUNFOU UP NFFUJOH XFMMJEFOUJàFE

PCKFDUJWFT JT QJWPUBM GPS QFOTJPO SFTFSWF GVOET UP QMBZ UIFJS SPMF TVQQPSUJOH UIF QVCMJD QFOTJPO TZTUFN 8JUI QSPQFS HPWFSOBODF SFTFSWF GVOET TIPVME EFàOF BOE FTUJNBUF UIFJS MJBCJM JUJFT BOE TFU MPOHUFSN JOWFTUNFOU PCKFD UJWFT 4IPSU UFSN DPOTUSBJOUT BMTP QMBZ BO JNQPSUBOU SPMF BOE NVTU CF DMFBSMZ EFàOFE BOE VOEFSTUPPE "QQPJOUNFOUT BOE QFSTPOOFM 5IF BQQPJOUNFOU QSPDFTT GPS UIF HPWFSOJOH CPBSE BOE UIF SFTQPOTJCJMJUJFT PG NFNCFST TIPVME CF DMFBSMZ EFàOFE :FSNP 0OF JNQPSUBOU DSJUFSJPO GPS CFDPNJOH B CPBSE NFNCFS TIPVME CF FYQFSUJTF %PSGNBO



.BZ



"QQPJOUNFOUT TIPVME BT NVDI BT QPTTJCMF BWPJE UIF SJTL PG QPMJUJDBM JOUFSGFSFODF BOE PUIFS DPOáJDUT PG JOUFSFTUT XIJDI TIPVME CF EJTDMPTFE BOE NBOBHFE *OEFQFOEFOU OPNJOBUJPO DPNNJUUFFT DBO QMBZ B SPMF JO JNQSPWJOH QSBDUJDFT BMUIPVHI POF TIPVME CF XBSZ PG HJWJOH UPP NVDI JNQPSUBODF UP DPSQPSBUF HPWFSOBODF USBQQJOHT 5IF QSJPSJUZ TIPVME HP UP DSFBUJOH NFDIBOJTNT GPS UIF USBOTQBSFODZ BOE QVCMJD TDSVUJOZ PG EFDJTJPOT ,JN BOE 4UFXBSU SFNBSLT UIBU UIFSF NJHIU CF B USBEFPGG CFUXFFO FYQFSUJTF BOE EFNPDSBDZ BT SFQSFTFOUBUJWFT PG DJWJM TPDJFUZ EP OPU VTVBMMZ IBWF LOPXMFEHF BOE FYQFSJFODF JO JOWFTUNFOU NBOBHFNFOU $POáJDUT PG JOUFSFTU BSF BMTP B TFSJPVT NBUUFS 5IF BEPQUJPO PG B DPEF PG DPOEVDU BOE EJTDMPTVSF SFRVJSFNFOUT DBO NJUJHBUF UIFTF SJTLT TFF GPS JOTUBODF 1BSJIBS *OEFQFOEFODF PG NBOBHFNFOU *TPMBUJOH UIF JOWFTUNFOU EFDJTJPO JO B TFQBSBUF TUSVDUVSF JT B XBZ UP FOTVSF UIF JOEFQFOEFODF PG àOBODJBM NBOBHFNFOU )PXFWFS %BT FU BM JOTJTU UIBU XIBUFWFS UIF MFHBM TUSVDUVSF PG UIF GVOE JU JT QBSBNPVOU UIBU UIF JOEFQFOEFODF PG PQFSB UJPOBM NBOBHFNFOU CF HVBSBOUFFE TP BT UP MJNJU QPMJUJDBM JOUFSGFSFODFT EFTDSJCFE QSFWJ PVTMZ -BOF BMTP TUSFTTFT UIBU QPMJUJ DJTBUJPO PG UIF JOWFTUNFOU QPMJDZ NVTU CF BWPJEFE 3JOHGFODJOH :FSNP TVHHFTU UIBU BDUVBM MFHBM TFQBSBUJPO JT OPU BT FTTFOUJBM BT iSJOH GFODJOHu JF UIF HVBSBOUFF UIBU UIF BTTFUT PG

UIF GVOET XJMM POMZ CF VTFE GPS UIF QBZNFOU PG QFOTJPOT 5IJT JT UIF DBTF GPS NPTU 13'T JO UIF SFTU PG UIF XPSME FH $BOBEB &YBNQMFT PG UIF JOWPMWFNFOU PG UIF QVCMJD TFDUPS UP VTF QFOTJPO SFTFSWFT JODMVEF DVSSFOU BDDPVOU TUFSJMJTBUJPO WFIJDMFT PS CVZFSPGàSTUSFTPSU PG QVCMJD TFDUPS EFCU 5IJT JT EFUSJNFOUBM UP UIF HPBM PG EFTJHOJOH BTTFU BMMPDBUJPOT UP NFFU MPOHUFSN QFOTJPO PCKFDUJWFT FTQFDJBMMZ JG UIFTF SFRVJSF TJHOJG JDBOU BTTFU JODPNF UP IFMQ CFBS UIF DPTU PG QPQVMBUJPO BHFJOH $POUSPMT BOE BVEJUT 3FHVMBS SFQPSUJOH PG BDUJWJUJFT TIPVME CF FOGPSDFE CFUXFFO UIF JOWFTUNFOU FOUJUZ UIF CPBSE BOE UIF TVQFSWJTPSZ CPEZ FH .JOJTUSZ PG 'JOBODF 1FSJPEJD JOUFSOBM BOE FYUFSOBM BVEJUT TIPVME CF QFSGPSNFE UP FOTVSF UIBU CPUI UIF HPWFSOBODF BOE UIF JOWFTUNFOU QSPDFTTFT BSF BEFRVBUF BOE GPMMPX UIF NBOEBUF TFF GPS JOTUBODF (BOEPMGP *OWFTUNFOU 4FUUJOH DMFBS JOWFTUNFOU SVMFT 5IF FTUBCMJTINFOU PG B DMFBSDVU HPWFS OBODF QSPDFTT BOE UIF NBJOUFOBODF PG JOEFQFOEFODF BSF GBDJMJUBUFE CZ GVMMZ EFàOFE JOWFTUNFOU PCKFDUJWFT JO UFSNT PG MJBCJMJUJFT UP NBUDI NBUVSJUZ BOE SJTL CVEHFU %BT FU BM SFDPNNFOE UIF JEFOUJà DBUJPO PG B DMFBS JOWFTUNFOU IPSJ[PO TP BT UP FBTF UIF VTF PG "-. UFDIOJRVFT "DDFQUBCMF SJTL MFWFMT BMTP OFFE UP CF DMFBSMZ EFàOFE 5IF UZQJDBM XBZ PG BDDPVOUJOH GPS EPXOTJEF SJTL JT UIF JODPSQPSBUJPO PG



.BZ



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

PG SFTQPOEFOUT DPOTJEFS UIBU JNQMJDJU MJBCJMJUJFT PG TPWFSFJHO XFBMUI GVOET JODMVEJOH SFTFSWF GVOET TIPVME CF UBLFO JOUP BDDPVOU BOE BHSFF UIBU UIF "-. GSBNFXPSL QSPWJEFT B CFUUFS VOEFS TUBOEJOH PG PQUJNBM JOWFTUNFOU QPMJDZ BOE SJTL NBOBHFNFOU QSBDUJDFT )PXFWFS GPS "-. UP CF BQQMJFE B OVNCFS PG QBSBNFUFST OFFE UP CF EFàOFE TVDI BT UIF BDUVBM MJBCJMJUJFT BOE SJTL CVEHFUT 'VSUIFSNPSF %BT FU BM SFDPNNFOE UIF JEFOUJàDBUJPO PG B DMFBS JOWFTUNFOU IPSJ[PO %ZOBNJD BTTFUMJBCJMJUZ NBOBHFNFOU TUSBUFHJFT DBO CF EFTJHOFE PODF B DMFBS PCKFDUJWF NBUVSJUZ BOE SJTL CVEHFU IBWF CFFO TFU .BSUFMMJOJ BOE .JMIBV QSPQPTF BO BEBQUBUJPO PG B NPEFSO MJBCJMJUZESJWFO JOWFTUNFOU -%* GSBNFXPSL UP UIF 48'T

DPOUFYU 5IFZ TIPX UIBU UIF PQUJNBM BTTFU BMMPDBUJPO SFMJFT PO UISFF CVJMEJOH CMPDLT B MJBCJMJUZIFEHJOH QPSUGPMJP -)1

UP NBUDI UIF BDUVBM MJBCJMJUJFT BO FOEPXNFOU IFEHJOH QPSUGPMJP &)1

UP EFBM XJUI UIF SJTL UP UIF GVOEhT FOEPXNFOU TUSFBN BOE B QFSGPSNBODFTFFLJOH QPSUGPMJP 141

XIJDI IBT UIF FYQMJDJU PCKFDUJWF PG NBYJNJTJOH UIF SJTLSFXBSE SBUJP 5IF TUBOEBSE BQQSPBDI SFMJFT TPMFMZ PO UIF 141 BOE MFBWFT PVU UIF UXP PUIFS GVOEBNFOUBM QBSUT PG UIF TUSBUFHZ 5IF -)1 OBUVSBMMZ UBLFT JOUP BDDPVOU UIF IPSJ[PO PG UIF MJBCJMJUJFT XIJDI BMMPXT UIF TUSBUFHZ UP FWPMWF BT UIF QBZPVU EBUF BQQSPBDIFT " IPMJTUJD MJGFDZDMF BQQSPBDI 'JOBMMZ UIF FWJEFODF SFWJFXFE JO TFDUJPO BCPVU UIF JODSFBTJOH DPTU PG QPQVMBUJPO BHFJOH TVHHFTUT UIBU POMZ B IPMJTUJD NVMUJHFOFSBUJPOBM BQQSPBDI UP NFFUJOH UIF DPNCJOFE MJBCJMJUJFT PG UIF TPDJBM TFDVSJUZ BOE QFOTJPO TZTUFN NBLFT TFOTF #FDBVTF PG UIFJS TJ[F BOE TZTUFNJD OBUVSF QFOTJPO SFTFSWFT JO UBOEFN XJUI TPDJBM TFDVSJUZ SFTFSWFT XIFO UIFZ FYJTU FH $IJOB DPVME CF JOTUSVNFOUBM JO NFFUJOH UIF JOWFTUNFOU PCKFDUJWFT OFDFTTBSZ UP QSFTFSWF àTDBM TUBCJMJUZ BOE UIF TPDJBM DPOUSBDU " OBUJPOBM CBMBODF TIFFU BQQSPBDI 8F LOPX UIBU JO BO BHFJOH QPQVMBUJPO MJGFDZDMF EFàDJUT SJTF XJUI HSFBU QSFEJDUBCJMJUZ UIF DSPTTTFDUJPO BDSPTT BHF HSPVQT QFS DBQJUB DPOTVNQUJPO QSPàMF PG UIF OBUJPO DFBTFT UP CF SFMBUJWFMZ TNPPUI PS áBU CVU JOTUFBE SJTFT DPOTJEFSBCMZ GPS UIF FMEFSMZ BT XFMM BT UIF ZPVOH



.BZ



8IJMF UIF MJGFDZDMF EFàDJU PG UIF FMEFSMZ DBO CF FYQFDUFE UP CF QBSUMZ DPWFSFE CZ UIFJS QFOTJPO JODPNF JODMVEJOH UIFJS QVCMJD QFOTJPO JU SFNBJOT UIBU B MBSHF QBSU PG UIFJS QPTUSFUJSFNFOU DPOTVNQUJPO DPOTJTUT PG IFBMUIDBSF àOBODFE CZ QVCMJD USBOTGFST 5IFTF USBOTGFST BSF MBSHF BOE DBOOPU OFDFTTBSJMZ CF àOBODFE GSPN UBYJOH UIF XPSLGPSDF "T B DPOTFRVFODF UIF SJTF PG MJGFDZDMF EFàDJUT NBZ MFBE UP IJHI MFWFMT PG QVCMJD EFCU TFF 4ÃODIF[3PNFSP FU BM GPS BO BOBMZTJT PG UIF 4QBOJTI DBTF VTJOH B HFOFSBM FRVJMJCSJVN PWFSMBQQJOH HFOFSBUJPOT NPEFM 8F IBWF BSHVFE BCPWF UIBU TPNF PG UIJT EFCU UZQJDBMMZ àOET JUT XBZ JOUP QFOTJPO SFTFSWFT XIFSF JU IBSNT UIF BCJMJUZ PG UIF GVOE UP EFWFMPQ B QSPQFS BTTFU BMMPDBUJPO UIBU XPVME NBUDI JUT MJBCJMJUJFT #VU FWFO JG UIF QSFTDSJQUJPOT IJHIMJHIUFE BCPWF XFSF GVMMZ JNQMFNFOUFE BOE QFOTJPO SFTFSWFT DPVME CF VTFE UP NBOBHF QVCMJD QFOTJPO MJBCJMJUJFT JG XPVME CF PG MJUUMF IFMQ JG UIF SFTU PG UIF TPDJBM TFDVSJUZ TZTUFN MFE UIF QVCMJD TFDUPS BOE FWFOUVBMMZ TPDJFUZ JOUP CBOLSVQUDZ )FODF POF PG UIF DPOTUSBJOUT UIBU DPVME BEEFE UP UIF NBOBHFNFOU PG MBSHF QFOTJPO SFTFSWFT JO UBOEFN XJUI PUIFS QVCMJD àOBODF JOJUJBUJWFT JT UIF QSFTFSWBUJPO PG UIF TPMWFODZ PG UIF QVCMJD TFDUPS BT B XIPMF #FFUTNB BOE 0LTBOFO QSPWJEF B EJTDVTTJPO JO UIF DPOUFYU PG UIF &6 TUBCJMJUZ HSPXUI QBDU BOE #FFUTNB BOE -BOT #PWFOCFSH

B GPSNBMJTBUJPO JO HFOFSBM FRVJMJCSJVN

&YQMJDJU NBOBHFNFOU PG MPOHFWJUZ SJTL *O UIJT DPOUFYU UIF NBOBHFNFOU PG MPOHFWJUZ SJTL XIJDI BMTP BGGFDUT TPDJBM TFDVSJUZ MJBCJMJUJFT JT BO JNQPSUBOU QPJOU 5IF DVSSFOU BCTFODF PG MPOHFWJUZ SJTL JOTVSBODF JO QSJWBUF QFOTJPO TDIFNFT JO "TJB JT B SFáFDUJPO PG B GSFRVFOU NBSLFU GBJMVSF JO UIF BCTFODF PG NBOEBUPSZ BOOVJUJTBUJPO #FDBVTF MPOHFWJUZ SJTL BGGFDU UIF FOUJSF QPQVMBUJPO JU JT BMTP FGàDJFOU GPS UIJT SJTL UP CF QPPMFE BOE TQSFBE BU UIF OBUJPOBM MFWFM BOE CZ UIF MFBTU SJTLBWFSTF QBSUZ UIF $PMMFDUJWF TFF "SSPX BOE -JOE )FODF EFàOJOH BOE NBOBHJOH UIF MPOHFWJUZ SJTL UIBU BGGFDUT UIF QVCMJD QFOTJPO BOE TPDJBM TFDVSJUZ TZTUFN CZ TFUUJOH FYQMJDJU JOWFTUNFOU JODPNF UBSHFUT BU HJWFO IPSJ[POT GPS SFTFSWF GVOET XIJMF SFTQFDUJOH SJTL CVEHFUT DPVME HP B MPOH XBZ UP DPVOUFS BOZ EFUSJNFOUBM JNQBDU PG MPOHFWJUZ SJTL PO àTDBM TUBCJMJUZ "WPJEJOH B GSFFSJEFS QSPCMFN CFUXFFO HFOFSBUJPOT 5IF TPMVUJPO UP UIF JOUFSHFOFSBUJPOBM àOBODJOH QSPCMFN DSFBUFE CZ QPQVMBUJPO BHFJOH JT QPTTJCMF BTTVNJOH OP GSFFSJEJOH CFUXFFO HFOFSBUJPOT JF JOUFSHFOFSBUJPOBM TPMJEBSJUZ &OTVSJOH UIBU UIJT JT UIF DBTF SFRVJSFT BHBJO B IPMJTUJD BQQSPBDI UP DPOUSPMMJOH UIF DPTUT PG QPQVMBUJPO BHFJOH FTQFDJBMMZ UIBU PG IFBMUIDBSF BOE MPOHUFSN DBSF *U BMTP SFRVJSFT HSFBUFS WJTJCJMJUZ BOE USBOT QBSFODZ BCPVU UIF DPTUT BOE CFOFàUT



.BZ



GPS FBDI HFOFSBUJPO JO PSEFS GPS B XFMM JOGPSNFE QPMJDZ EFCBUF UP UBLF QMBDF JO QBSUJDVMBS SFHBSEJOH UIF VTF PG UIF QFOTJPO SFTFSWF *OEFFE 1":( TVSQMVT QFOTJPO DPOUSJCVUJPOT BSF B DPMMFDUJWF BTTFU KVTU MJLF HPWFSONFOUTh BOOVBM CVEHFUT 'JOBODF UIF GVUVSF 5IF EFNPHSBQIJD MJUFSBUVSF IJHIMJHIUT UIF QPTTJCJMJUZ PG B TFDPOE EFNPHSBQIJD EJWJEFOE ESJWFO CZ UIF JOWFTUNFOU PG QFOTJPO TBWJOHT MFBEJOH UP DBQJUBM EFFQFOJOH BOE B DPODPNJUBOU JODSFBTF JO MBCPVS QSPEVDUJWJUZ MBCPVS JODPNF BOE UIF SFEVDUJPO PG UIF MJGFDZDMF EFàDJU PG B QPQVMBUJPO 8IJMF UIF EJSFDU BMMPDBUJPO PG QFOTJPO BTTFUT UP JOWFTUNFOU QSPKFDUT FYQFDUFE UP JODSFBTF UIF QSPEVDUJWJUZ PG MBCPVS DBO TFFN EBOHFSPVT BOE JO DPOUSBEJDUJPO XJUI UIF QSJODJQMF PG QVSTJOH B TJOHMF PCKFDUJWF BOPUIFS JOUFSQSFUBUJPO PG UIF hTFDPOE EJWJEFOEh JT UP GPDVT PO JODPNF HFOFSBUJPO 'JOBODJOH JODPNF HFOFSBUJPO UISPVHI QSPQFSMZ JOUFSNFEJBUFE TPMVUJPOT DPVME MFBE UP àOBODJOH UIF GVUVSF PG UIF FDPOPNZ BOE CZ FYUFOTJPO UIF àOBODJBM WJBCJMJUZ PG UIF TPDJBM BOE QFOTJPO TZTUFN *OGSBTUSVDUVSF JOWFTUNFOU JT B HPPE FYBNQMF PG B DIPJDF PG JOTUSVNFOUT MFE CZ UIF OFFE UP BDDFTT MPOHUFSN TUBCMF BOE TPNFUJNFT JOáBUJPOMJOLFE DBTI áPXT GSPN UIF QPJOU PG WJFX PG QFOTJPO GVOET CVU UIBU BMTP IBT B XFMM EPDVNFOUFE JNQBDU PO UPUBM GBDUPS QSPEVDUJWJUZ JO UIF FDPOPNZ

$PODMVTJPOT *O UIJT TFDUJPO XF IBWF SFWJFXFE UIF SPMF PG QFOTJPO SFTFSWF GVOET JO &BTU "TJB 8F àOE UIBU XIJMF UIFZ BSF CZ GBS UIF NPTU TJHOJG JDBOU FMFNFOU PG UIF GVOEFE QFOTJPO TFDUPS JO UIF SFHJPO UIFZ TVGGFS GSPN JNQPSUBOU áBXT /FWFSUIFMFTT UIF FYJTUFODF PG UIFTF MBSHF SFTFSWFT SFQSFTFOUT B VOJRVF PQQPSUVOJUZ GPS &BTU "TJBhT HPWFSONFOU UP BEESFTT UIF VOTVTUBJOBCJMJUZ PG QVCMJD QBZBTZPVHP QFOTJPO TDIFNFT SFTVMUJOH GSPN QPQVMBUJPO BHFJOH 8F BSHVF UIBU TFJ[JOH UIJT PQQPSUVOJUZ XJMM SFRVJSF NBLJOH GVOEBNFOUBM DIBOHFT JO UIF XBZ SFTFSWF GVOET IBWF CFFO DPOUSPMMFE BOE NBOBHFE GPS UIF QBTU EFDBEFT BOE BEPQUJOH JOWFTUNFOU NBOBHFNFOU QSPDFTTFT BOE UPPMT UIBU XJMM BMMPX QFOTJPO SFTFSWFT UP BDIJFWF XIBU TIPVME CF UIFJS TPMF PCKFDUJWF UP TVQQPSU UIF QVCMJD QFOTJPO TZTUFN CZ NJOJNJTJOH UIF CVSEFO PG QFOTJPO MJBCJM JUJFT PO GVUVSF HFOFSBUJPOT XIJMF FOTVSJOH BEFRVBUF QVCMJD QFOTJPO QSPWJTJPO 1FOTJPO SFTFSWFT IBWF CFFO B TJEFQSPEVDU PG UIF SBQJE EFNPHSBQIJD USBOTJUJPO UIBU IBT PDDVSSFE JO &BTU "TJB "O JOJUJBM ESPQ JO JOGBOU NPSUBMJUZ JO UIF T MFE UP B MBSHFS DPIPSU PG OFXCPSOT XIP FOUFSFE UIF XPSLGPSDF BOE TUBSUFE DPOUSJCVUJOH UP 1":( QFOTJPOT GSPN UIF T POXBSET BU B UJNF XIFO UIF QPQVMBUJPO PG SFUJSFFT BOE PMEFS XPSLFST BCPVU UP SFUJSF XBT TUJMM SFMBUJWFMZ TNBMM 5IJT DSFBUFT TVSQMVT DPOUSJCVUJPOT XIJDI BSF LFQU JO B EFEJDBUFE SFTFSWF GVOE XJUI UIF "O &%)&$3JTL *OTUJUVUF 1VCMJDBUJPO


.BZ



LOPXMFEHF UIBU EFNPHSBQIJD USBOTJUJPOT FWFOUVBMMZ MFBE UP QPQVMBUJPO BHFJOH BOE UIBU UIF OVNCFS PG XPSLFST DPOUSJCVUJOH UP 1":( TZTUFNT XJMM EFDSFBTF BT UIF OVNCFS PG SFUJSFFT JODSFBTFT "U UIBU TUBHF UIF QFOTJPO SFTFSWF JT FYQFDUFE UP TVQQPSU UIF QVCMJD QFOTJPO TZTUFN CZ NBLJOH QBSU PG UIF QFOTJPO QBZNFOUT EVF

BDDVNVMBUFE TIPSUGBMM CFGPSF UIFZ DPNF JOUP GPSDF *U GPMMPXT UIBU BEFRVBUF MPOHUFSN JOWFTUNFOU PCKFDUJWFT BSF OPU TFU JO MJOF XJUI B DMFBS FTUJNBUJPO PG MJBCJMJUJFT OPS BSF TIPSUUFSN DPOTUSBJOUT QSPQFSMZ EFàOFE

)PXFWFS XIJMF QFOTJPO SFTFSWFT XFSF DSFBUFE UP BEESFTT UIF JTTVF PG QPQVMBUJPO BHFJOH BOE UIF TVTUBJOBCJMJUZ PG 1":( TZTUFNT UIF NBOBHFNFOU PG UIFTF SFTFSWFT IBT SFNBJOFE NPTUMZ VOSFMBUFE UP UIBU PCKFDUJWF .PSFPWFS UIF EPNJOBOU QBSBEJHN PG QFOTJPO SFTFSWF NBOBHFNFOU DPOTJTUT PG UIF QBTTJWF BEBQUBUJPO PG UIF QFOTJPO TZTUFN UP EFNPHSBQIJD SFBMJUJFT BT PQQPTFE UP UIF BDUJWF NBOBHFNFOU PG B EZOBNJD MJBCJMJUZ

*O &BTU "TJB QFOTJPO SFTFSWFT FYJTU JO UIF DPOUFYU PG QBZBTZPVHP QFOTJPOT GPS QSJWBUF TFDUPS XPSLFST JO +BQBO ,PSFB .BJOMBOE $IJOB BOE 5BJXBO 4QFDJàD QFOTJPO SFTFSWFT BMTP FYJTU GPS QVCMJD XPSLFST JO +BQBO ,PSFB BOE 5BJXBO )POH ,POH IBT OP 1":( QFOTJPO TZTUFN BOE UIFSFGPSF OP EFEJDBUFE QFOTJPO SFTFSWF .BJOMBOE $IJOB IBT BMTP DSFBUFE B TQFDJàD SFTFSWF GVOE EFEJDBUFE UP TVQQPSUJOH UIF QFOTJPO TZTUFN CVU JU JT GVOEFE EJSFDUMZ CZ UIF TUBUF JOTUFBE PG TVSQMVT DPOUSJCVUJPOT

5IVT UIF HPWFSONFOUT PG &BTU "TJB FYQFDU UP IBWF TQFOU BMNPTU BMM PG UIF QFOTJPO SFTFSWFT CZ UIF NJEEMF PG UIJT DFOUVSZ XIJMF MJUUMF UP OP FGGPSU JT QVU JOUP JODSFBTJOH JOWFTUNFOU JODPNF GSPN UIFTF MBSHF QPPMT PG BTTFUT

*O +BQBO BOE 5BJXBO QFOTJPO SFTFSWFT SFQSFTFOU PG BMM GVOEFE QFOTJPO BTTFUT *O $IJOB SFTFSWFT BSF FRVJWBMFOU UP PG BMM QFOTJPO BTTFUT BOE JO ,PSFB UIF SFTFSWF TUBOET GPS PG QFOTJPO BTTFUT

*OTUFBE NPTU PG UIF QBSBNFUFST PG UIF 1":( QFOTJPO FRVBUJPO BSF CFJOH SFTIVGáFE SFHVMBSMZ BOE TFFNJOHMZ JOEFQFOEFOUMZ QBSBNFUSJD SFGPSNT MFBE UP DIBOHFT JO DPOUSJCVUJPO SBUFT CFOFàU MFWFMT BDDSVBM GPSNVMBT PS EJTDPVOU SBUFT XIJMF BDUVBSJBM BOE PUIFS BTTVNQUJPOT TVDI BT MJGF FYQFDUBODZ BOE FDPOPNJD HSPXUI GPSFDBTUT TQBOOJOH UP ZFBST BSF BEKVTUFE BGUFS FBDI SFWJFX .PSFPWFS UIFTF SFGPSNT BSF PGUFO QJFDFNFBM BOE DPOTJEFSBCMZ EFMBZFE 5IFZ BMTP UFOE UP PNJU BEESFTTJOH BOZ

5IFTF MBSHF OVNCFST IJEF UXP JNQPSUBOU TUZMJTFE GBDUT BCPVU GVOEFE QFOTJPOT JO &BTU "TJB 'JSTU QFOTJPO SFTFSWFT BSF MBSHF CFDBVTF DPSQPSBUF BOE PDDVQBUJPOBM QFOTJPOT BSF TNBMM BT XF EJTDVTT JO TFDUJPOT BOE 4FDPOE &BTU "TJBhT QFOTJPO SFTFSWFT NBZ CF MBSHF FWFO CZ JOUFSOBUJPOBM TUBOEBSET CVU UIFZ BSF OPU BT MBSHF BT UIFZ TIPVME CF HJWFO UIFJS MFWFM PG DPOUSJCVUJPOT BOE QSPNJTFE CFOFàUT BT XFMM BT UIF SBUF PG EFMJORVFODZ JO DFSUBJO DPVOUSJFT .PSFPWFS JO DPVOUSJFT UIBU IBWF JOJUJBMMZ EFWFMPQFE



.BZ



QSJNBSJMZ UIBOLT UP BO FYQPSUESJWFO NPEFM XBHF DPNQFUJUJWFOFTT SFNBJOT B LFZ FMFNFOU PG FDPOPNJD TVDDFTT BOE UIJT DBO CF JO DPOUSBEJDUJPO XJUI UIF PCKFDUJWF PG DPMMFDUJOH QFOTJPO DPOUSJCVUJPOT "T B DPOTFRVFODF QFOTJPO SFTFSWFT BMSFBEZ FYIJCJU TJHOJàDBOU TIPSUGBMMT BOE QBSU PG UIF CFOFàUT QBJE IBWF UP CF TVCTJEJTFE CZ DFOUSBM HPWFSONFOUT 5IVT XIJMF SFTFSWFT DPOUJOVF UP HSPX JO $IJOB ,PSFB BOE 5BJXBO UIFZ TIPVME CF HSPXJOH GBTUFS JG GVUVSF QFOTJPO QBZNFOUT BSF HPJOH UP CF NFU *O UIFTF UISFF DPVOUSJFT BMM QFOTJPO SFTFSWF GVOET BSF LOPXO UP FYIJCJU TJHOJàDBOU VOGVOEFE MJBCJMJUJFT *O +BQBO SFTFSWFT IBWF CFHVO UP TISJOL TJODF "OE XIJMF UIF MJOL CFUXFFO EFNPHSBQIJDT BOE SFTFSWFT TVHHFTUT UIBU UIF MBUUFS TIPVME FWFOUVBMMZ QFBL JU JT TUSJLJOH UP PCTFSWF UIBU UIF +BQBOFTF SFTFSWF GVOE BT B DPOTFRVFODF PG JUT JOWFTUNFOU QPMJDZ IBT CBSFMZ HFOFSBUFE BOZ JOWFTUNFOU JODPNF PWFS UIF QBTU EFDBEF

8F OPUF UIBU PUIFS "TJBO DPVOUSJFT TVDI BT 4JOHBQPSF XIJDI BSF PVU PG UIF TDPQF PG UIF TUVEZ BOE IBWF NPWFE BHHSFTTJWFMZ UPXBSET EFWFMPQQJOH BOOVJUJTBUJPO TFF GPS FYBNQMF 'POH FU BM

$MFBSMZ UIF BTTFU NBOBHFNFOU PG QFOTJPO SFTFSWFT DPVME CF JNQSPWFE UP IFMQ NFFU UIF MJBCJMJUJFT PG QBZBTZPVHP TZTUFNT 1BZ BTZPVHP QFOTJPOT JO &BTU "TJB BSF UIF POMZ SFMJBCMF TPVSDF PG MJGFMPOH SFUJSFNFOU JODPNF TJODF BT XF EJTDVTT JO TFDUJPOT BOE QSJWBUF QFOTJPO TDIFNFT PGGFS MJUUMF UP OP BOOVJUJTBUJPO .PSFPWFS HJWFO UIF MJNJUFE EFWFMPQNFOU PG QSJWBUF QFOTJPOT 1":( TZTUFNT BSF PGUFO UIF TPMF TPVSDF PG SFUJSFNFOU JODPNF GPS B XIPMF TUSBUVN PG UIF QPQVMBUJPO

*U GPMMPXT UIBU UIF FSPTJPO PG QBZBTZPV HP CFOFàUT JO UIF DPOUFYU PG QBSBNFUSJD SFGPSNT DBOOPU DPOUJOVF JOEFàOJUFMZ CFGPSF TFSJPVT TPDJBM DPOTFRVFODFT BQQFBS JODMVEJOH JODSFBTJOH PMEBHF QPWFSUZ CVU BMTP JODSFBTJOH DPOUSJCVUJPO EFMJO RVFODZ -JLFXJTF UIF DPOUJOVFE TVQQPSU PG DFOUSBM HPWFSONFOU UP QVCMJD QFOTJPO BOE IFBMUIDBSF TZTUFNT DBOOPU CF FYUFOEFE JOEFàOJUFMZ XJUIPVU BGGFDUJOH àTDBM TUBCJMJUZ JG DPTUT MJGFDZDMF EFàDJUT PG PME BHF BSF CPVOE JODSFBTF GBTUFS UIBO UIF DBQBDJUZ UP DPOUSJCVUF PG UIF XPSLGPSDF *OTUFBE BEFRVBUF SJTL NBOBHFNFOU DBO BMMPX SFTFSWF GVOET UP JOWFTU UP NBYJNJTF UIF QSPCBCJMJUZ UP NFFU UIFJS MJBCJMJUJFT MJBCJMJUZESJWFO JOWFTUJOH XIJMF DPOUSPMMJOH SJTL SJTLDPOUSPMMFE JOWFTUJOH BOE UBLJOH UIFJS TQFDJàD JOWFTUNFOU IPSJ[PO JOUP BDDPVOU MJGFDZDMF JOWFTUJOH 0VS SFWJFX BMTP IJHIMJHIUT B OVNCFS PG TUZMJTFE GBDUT BCPVU &BTU "TJBhT QFOTJPO SFTFSWF GVOET -POHUFSN PCKFDUJWF TFUUJOH BOE TIPSU UFSN DPOTUSBJOUT !

!

1FOTJPO SFTFSWFT BSF PGUFO HJWFO NVMUJQMF PCKFDUJWFT TPNF PG XIJDI BSF VOSFMBUFE UP UIF TVQQPSUJOH UIF QVCMJD QFOTJPO TZTUFN BOE NBZ FWFO CF JO DPOUSBEJDUJPO XJUI UIBU HPBM &YBNQMFT JODMVEF EJSFDU MFOEJOH UP QSPUFDUFE JOEVTUSJBM TFDUPST JOUFSWFO UJPOT JO TUPDL NBSLFUT BOE UIF BCTPSQUJPO PG MBSHF WPMVNFT PG QVCMJD EFCU *O FGGFDU QFOTJPO SFTFSWF NBOBHFNFOU JT TFMEPN JOEFQFOEFOU GSPN QPMJUJDBM



.BZ



!

!

!

!

JOáVFODF %JSFDU DFOUSBM HPWFSONFOU JOWPMWFNFOU JT UIF OPSN 1FOTJPO SFTFSWFT BSF FYQPTFE UP TJHOJG JDBOU MPOHFWJUZ BOE JOáBUJPO SJTL CVU UIFJS JOWFTUNFOU PCKFDUJWFT BSF OPU OFDFT TBSJMZ TFU TP UIBU UIFZ NBOBHF UIFTF SJTLT FYQMJDJUMZ *O HFOFSBM SFTFSWF GVOET IBWF MPPTFMZ EFàOFE PCKFDUJWFT BOE OP QSFDJTF BTTFTTNFOU PG UIFJS MJBCJMJUJFT -POHUFSN PCKFDUJWFT BSF FBTJMZ JHOPSFE BOE NVDI NPSF BUUFOUJPO JT HJWFO UP TIPSUUFSN PCKFDUJWFT 8JUI UPP NVDI GPDVT PO UIF TIPSUUFSN IJHI MPTT BWFSTJPO EPNJOBUFT JOWFTUNFOU EFDJTJPOT BOE DBO MFBE UP IJHIMZ TVCPQUJNBM SFTVMUT &BTU "TJBhT SFTFSWF GVOET BSF BMTP GPVOE UP IBWF SBUIFS JMMEFàOFE TIPSUUFSN DPOTUSBJOUT JG BOZ PGàDJBM DPOTUSBJOUT BU BMM "MPOH XJUI UIF BCTFODF PG DMFBSMZ EFàOFE MPOH UFSN PCKFDUJWFT UIJT TUBUF PG BGGBJST QSFDMVEFT UIF EFàOJUJPO BOE EFWFMPQNFOU PG BEFRVBUF JOWFTUNFOU TPMVUJPOT GPS SFTFSWF GVOET *OEFFE UIF TIPSUUFSNJTN BOE MPTT BWFSTJPO NFOUJPOFE BCPWF QMBZ UIF SPMF PG EF GBDUP TIPSUUFSN DPOTUSBJOUT 'VOEJOH SVMFT JO QBSUJDVMBS BSF FYQSFTTFE JO UFSNT PG NVMUJQMFT PG GVUVSF PCMJHB UJPOT XIJDI BSF EFàOFE TUBUJDBMMZ BOE UIVT MFBWF UIF EZOBNJD EJNFOTJPO PG UIF GVOEhT MJBCJMJUZ PVU PG UIF FRVBUJPO

*OWFTUNFOU NBOBHFNFOU !

5IF MBDL PG JOEFQFOEFODF IJHIMJHIUFE BCPWF MFBET UP BO FRVBMMZ QPMJUJDJTFE JOWFTUNFOU HPWFSOBODF *OWFTUNFOU DPNNJUUFFT BOE QPMJDJFT XIFO UIFZ FYJTU BSF NPSF PG BO BEWJTPSZ OBUVSF BOE NVDI

!

!

!

!

!

EFDJTJPO NBLJOH QPXFS SFNBJOT JO UIF IBOET PG QPMJUJDBM BQQPJOUFFT "TTFU BMMPDBUJPO EFDJTJPOT JO &BTU "TJBhT SFTFSWF QFOTJPO GVOET SFNBJO CJBTFE UPXBSET MPDBM JOWFTUNFOUT BOE àYFE JODPNF )PXFWFS QSBDUJDFT IBWF BMTP FWPMWFE JO SFDFOU ZFBST *O QBSUJDVMBS 5BJXBOFTF BOE .BJOMBOE $IJOFTF SFTFSWF GVOET IBWF TFFNJOHMZ MFBSOFE GSPN UIF MJNJUBUJPOT PG UIF +BQBOFTF FYQFSJFODF 5IVT UIFSF JT B USFOE UPXBSET JODSFBTJOH JOUFSOBUJPOBM EJWFSTJàDBUJPO +BQBOFTF BOE ,PSFBO GVOET IBWF B àYFE JODPNF CJBT *O DPOUSBTU 5BJXBOFTF BOE UIF áBHTIJQ .BJOMBOE $IJOFTF SFTFSWF GVOET /44' IBWF NPWFE GSPN TJNJMBSMZ àYFE JODPNF GPDVTFE BMMPDBUJPOT UP NPSF CBMBODFE DIPJDFT )PXFWFS FBDI BUUFNQU UP JNQSPWF EJWFSTJàDBUJPO JT EPOF PO B QJFDFNFBM CBTJT BOE SFMJFT PO QPUFOUJBMMZ JOBEFRVBUF BQQSPBDIFT "MUFSOBUJWF JOWFTUNFOUT IBWF BMTP CFDPNF QBSU PG UIF BTTFU DMBTTFT VTFE CZ UIF ,PSFBO BOE $IJOFTF SFTFSWF GVOET 5IF CBMBODF CFUXFFO BDUJWF BOE QBTTJWF NBOEBUFT JT BMTP FWPMWJOH XJUI B IJHIFS QSPQPSUJPO PG BTTFUT EFEJDBUFE UP BDUJWF NBOBHFST 5IF UFOEFODZ UP NBOBHF NPTU BTTFUT JOUFSOBMMZ IBT BMTP TIJGUFE XJUI UIF GPSBZT JOUP OFX BTTFU DMBTTFT CZ ,PSFBO PS $IJOFTF SFTFSWF GVOET

*OWFTUNFOU NBOBHFNFOU BQQSPBDIFT JO QFOTJPO SFTFSWF GVOET IBWF VOEFOJBCMZ FWPMWFE BOE JNQSPWFE PWFS UIF QBTU EFDBEFT )PXFWFS UIF NBOBHFNFOU PG UIF SFTFSWFT SFNBJOT UPP EFQFOEFOU PO UIF DPOEJUJPOT PG UIF EPNFTUJD FDPOPNZ BOE GPMMPXJOH NVMUJQMF PCKFDUJWFT JT OPU



.BZ



OFDFTTBSJMZ DPOTJTUFOU XJUI UIF TVQQPSU PG UIF QVCMJD QFOTJPO TZTUFN 5IVT JNQSPWFNFOUT BSF QPTTJCMF PO TFWFSBM GSPOUT GSPN CFUUFS HPWFSOBODF UP UIF JNQMFNFOUBUJPO PG QSPQFS SJTL NBOBHFNFOU UFDIOJRVFT

!

!

(PWFSOBODF JNQSPWFNFOUT ! !

!

!

!

1FOTJPO SFTFSWFT OFFE B DMFBS NJTTJPO BOE XPVME CFOFàU GSPN GVMM JOEFQFO EFODF GSPN HPWFSONFOU JOWPMWFNFOU *O QBSUJDVMBS UIFZ TIPVME OPU CF VTFE UP BCTPSC FYDFTTJWF BNPVOUT PG QVCMJD TFDUPS EFCU 5IF BQQPJOUNFOU QSPDFTT GPS UIF HPWFSOJOH CPBSE BOE UIF SFTQPOTJCJMJUJFT PG NFNCFST DPVME CF DMFBSMZ EFàOFE BOE GPDVT PO FYQFSUJTF BOE JOEFQFOEFODF 3JOHGFODJOH PG SFTFSWF GVOE BTTFUT XPVME FOTVSF UIBU UIJT DBQJUBM XJMM POMZ CF VTFE GPS UIF QBZNFOU PG QFOTJPOT 3FQPSUJOH TIPVME CF JNQSPWFE BOE QFSJPEJD JOUFSOBM BOE FYUFSOBM BVEJUT TIPVME CF QFSGPSNFE UP FOTVSF UIBU CPUI UIF HPWFSOBODF BOE UIF JOWFTUNFOU QSPDFTTFT BSF BEFRVBUF BOE GPMMPX UIF NBOEBUF

3JTL NBOBHFNFOU JNQSPWFNFOUT !

!

3FTFSWF GVOET NVTU EFWFMPQ QSPQFS BTTFU MJBCJMJUZ NBOBHFNFOU "-. BOE MJBCJMJUZ ESJWFO JOWFTUNFOU -%* TUSBUFHJFT UP CF JO B QPTJUJPO UP NFFU UIFJS MPOHUFSN PCKFD UJWFT XIJMF SFTQFDUJOH UIFTF TIPSUUFSN DPOTUSBJOUT "DDFQUBCMF SJTL MFWFMT BMTP OFFE UP CF DMFBSMZ EFàOFE 5IJT XJMM BMMPX UIF JNQMF NFOUBUJPO PG SJTLDPOUSPMMFE TUSBUFHJFT " DMFBS BOE GBUIPNBCMF JOWFTUNFOU IPSJ[PO JT OFDFTTBSZ " POF IVOESFE ZFBS IPSJ[PO GPS FYBNQMF BT JO UIF DBTF PG +BQBOhT SFTFSWF GVOE MFBWFT UPP NVDI VODFSUBJOUZ VONBOBHFE UP HVBSBOUFF UJNF DPOTJTUFODZ "O JNQPSUBOU QBSU PG UIFTF SFTFSWF GVOETh PCKFDUJWFT TIPVME CF UP JNQSPWF BTTFU JODPNF JO PSEFS UP NJOJNJTF UIF JOUFSHFO FSBUJPOBM CVSEFO DSFBUFE CZ QPQVMBUJPO BHFJOH XIJMF QSPWJEJOH BEFRVBUF QFOTJPO JODPNF UP SFUJSFFT

/FYU XF BSHVF UIBU TJNJMBS TPMVUJPOT BSF OFFEFE GPS QSJWBUF QFOTJPO TDIFNFT )PXFWFS UIF JNQPSUBODF PG UIFTF JEFBT XJUI SFHBSE UP QFOTJPO SFTFSWFT TJNQMZ TQSJOHT GSPN UIFJS TJ[F BOE SPMF JO B SFHJPO XIFSF NPTU TBWJOHT BSF TUJMM OPU JOWFTUFE JO QFOTJPO QMBOT BOE BSF UIVT MFTT MJLFMZ UP QSPWJEF BEFRVBUF SFUJSFNFOU JODPNF UP UIF OFYU HFOFSBUJPO PG SFUJSFFT

/FYU SFTFSWF GVOET NVTU BDLOPXMFEHF BOE DMBSJGZ UIF MJBCJMJUZ QSPDFTT UP XIJDI UIFZ BSF FYQPTFE BOE QSPQPTF XFMM EPDVNFOUFE MPOHUFSN JOWFTUNFOU PCKFDUJWFT 5IFJS SFHVMBUPS TIPVME JO UVSO DMBSJGZ BEFRVBUF BOE USBOTQBSFOU TIPSUUFSN DPOTUSBJOUT



.BZ





.BZ




.BZ



)JTUPSJDBMMZ PDDVQBUJPOBM QFOTJPO GVOET IBWF PGGFSFE EFàOFECFOFàU %# TDIFNFT XPSMEXJEF 5IF TJNQMFTU QPTTJCMF zEFBMh GPS B %# QMBO JT B àYFE SFQMBDFNFOU SBUJP BQQMJFE UP àOBM PS MJGFMPOH FBSOJOHT 5ZQJDBMMZ SFTFSWFT BSF TFU BTJEF JO TPNF QFOTJPO TDIFNF XIJDI JT CBDLFE CZ UIF TQPOTPS DPNQBOZ 8IJMF NBOZ PG UIF QVCMJD QFOTJPO TZTUFNT JODMVEJOH UIF POFT XF SFWJFXFE JO TFDUJPO BMTP QSPWJEF B GPSN PG EFàOFECFOFàU GFX DPVOUSJFT TUJMM SFMZ FYDMVTJWFMZ PO %# TDIFNFT GPS NBOEBUPSZ PS TVQQMFNFOUBSZ QSJWBUF QFOTJPOT 0&$% MJTUT POMZ *DFMBOE UIF /FUIFSMBOET BOE 4XJU[FSMBOE BNPOH UIFJS TBNQMF PG DPVOUSJFT 0&$% BOE ( 4UJMM 1PUFSCB FU BM

XIP EPDVNFOUT UIF EFDMJOF JO %# QMBOT JO UIF 64 TIPX UIBU BTTFUT JO %# QMBOT BT XFMM BT GPSFDBTU QBZNFOUT BSF TUJMM FYQFDUFE UP JODSFBTF JO UIF DPNJOH EFDBEFT *O &BTU "TJB QSJWBUF %# QMBOT FYJTU JO +BQBO ,PSFB )POH ,POH BOE WFSZ NBSHJOBMMZ JO 5BJXBO 5IFZ SFNBJO UIF EPNJOBOU GPSN PG TVQQMFNFOUBSZ QSJWBUF QFOTJPO QMBO JO UIF SFHJPO CZ BTTFU VOEFS NBOBHFNFOU )PXFWFS SFMBUJWF UP QFOTJPO SFTFSWFT PS UP (%1 UIFZ SFNBJO B SFMBUJWFMZ TNBMM TFDUPS *OEFFE UIFZ BSF NPTUMZ WPMVOUBSZ BOE QBZ B àOBM MVNQ TVN CFOFàU JO UIF JNNFOTF NBKPSJUZ PG DBTFT JF UIFZ EP OPU FGGFD UJWFMZ QSPWJEF B QFOTJPO UIBU JT B TUSFBN PG BOOVJUZ QBZNFOUT EVSJOH UIF QFSJPE GPMMPXJOH SFUJSFNFOU 'PS FYBNQMF JO ,PSFB MVNQ TVN QBZPVUT BSF UIF QSFGFSSFE PQUJPO .FNCFST NBZ RVBMJGZ GPS BO BOOVJUJTFE

QBZPVU CVU UIF DPNNPO BOOVJUZ UFSN JT MJNJUFE UP àWF ZFBST *HOJUFT "TJB D 5IF WPMVOUBSZ OBUVSF PG QSJWBUF %# QMBOT JO &BTU "TJB BMTP IJOEFST BTTFU BDDVNVMBUJPO JF CPUI FNQMPZFST BOE FNQMPZFFT PGUFO QSFGFS OPU UP IBWF B QFOTJPO QMBO #MBLF .JOJNVN DPOUSJCVUJPOT PS CFOFàU MFWFMT BSF SBSFMZ TFU JO MBX 4BLBNPUP

BSHVFT UIBU TVDI QMBOT PGGFS MJUUMF NPSF UIBO QFSTPOBM TBWJOHT EFQPTJUT BOE UIBU UIF MBUUFS UFOE UP CF TUSPOHMZ QSFGFSSFE UP TVQQMFNFOUBSZ QFOTJPOT 8IFO %# QMBOT EP FYJTU UIF BCTFODF PG QSPQFS SFUJSFNFOU JODPNF QSPWJTJPO NFBOT UIBU MPOHFWJUZ SJTL JT TFMEPN B NBUFSJBM JTTVF GPS QMBO TQPOTPST XIJMF XBHF JOáBUJPO SJTL POMZ FYUFOET BT GBS BT UIF SFUJSFNFOU EBUF "T B DPOTFRVFODF UIFTF QMBOT UFOE UP IBWF MPPTFMZ EFàOFE JOWFTUNFOU PCKFDUJWFT BOE UFOE UP GPDVT PO DBQJUBM QSFTFSWBUJPO SBUIFS UIBO UIF NBOBHFNFOU PG MPOHUFSN MJBCJM JUJFT 0OF NBZ JO GBDU SFHBSE UIF NBKPSJUZ PG DPSQPSBUF BOE PDDVQBUJPOBM %# QMBOT JO &BTU "TJB BT DSVEF IZCSJE QMBOT CZ XIJDI FNQMPZFFT NVTU NBOBHF MVNQ TVN CFOFàUT UISPVHI PUIFS NFBOT PODF SFUJSFE *NQSPWFNFOUT BSF QPTTJCMF CPUI GSPN UIF QPJOU PG WJFX PG TQPOTPST UIBOLT UP B NPSF FGàDJFOU NBOBHFNFOU PG FYJTUJOH BTTFUT BOE PG UIFJS GVOEJOH SJTL CVU BMTP QPUFOUJBMMZ GPS QMBO NFNCFST JG B HSFBUFS EFHSFF PG SJTL TIBSJOH DBO CF JOUSPEVDFE JO UIF QPTU SFUJSFNFOU QIBTF



.BZ



*O XIBU GPMMPXT XF àSTU EJTDVTT JO NPSF EFUBJM UIF PSJHJOT PG DPSQPSBUF %# TDIFNFT JO &BTU "TJB TFDUJPO /FYU JO TFDUJPO XF SFWJFX FYJTUJOH TDIFNFT UIFJS TJ[F BOE TPVSDFT PG GVOEJOH CFGPSF FYBNJOJOH UIF EFUFSNJOBOUT PG UIFJS MJBCJMJUZ QSPDFTT BOE XIBU UIFJS MPOHUFSN JOWFTUNFOU PCKFDUJWFT BSF JO TFDUJPO 4FDUJPO SFWJFXT UIF TIPSUUFSN DPOTUSBJOUT UIBU NVTU CF UBLFO JOUP BDDPVOU UP EFSJWF BEFRVBUF JOWFTUNFOU TPMVUJPOT *O TFDUJPO XF CSJFáZ SFWJFX LOPXO BTTFU BMMPDBUJPO QSBDUJDFT BOE GVOEJOH MFWFMT BOE EJTDVTT BSFBT PG JNQSPWFNFOU BOE EFWFMPQNFOU JO TFDUJPO 4FDUJPO TVNNBSJTFT PVS NBJO QPJOUT BOE DPODMVEFT

5IF MFHBDZ PG SFUJSFNFOU BMMPXBODFT 3FUJSFNFOU BMMPXBODFT BSF BU UIF PSJHJO PG QSJWBUF QFOTJPO QMBOT JO &BTU "TJB BOE IFMQ FYQMBJO UIFJS WPMVOUBSZ OBUVSF BOE UFOEFODZ UP CF QBSUMZ VOGVOEFE " EJTUJODUJPO NVTU CF NBEF CFUXFFO SFUJSFNFOU BMMPXBODFT 3"T BOE TFWFSBODF QBZ 3"T BSF EJTDSFUJPOBSZ MVNQ TVNT QSPQPSUJPOBUF UP TFOJPSJUZ BOE BSF QBJE SFHBSEMFTT PG UIF SFBTPO UP MFBWF B QPTJUJPO JF UIFZ BSF OPU B DPOTFRVFODF PG MBZPGGT 4FWFSBODF QBZ JT BMTP UZQJDBMMZ TNBMMFS UIBO 3"T "UUFNQUT UP SFGPSN 3" TZTUFNT JO &BTU "TJB BSF NPTUMZ JODPNQMFUF BOE IBWF DSFBUFE DPTUMZ BOE DPNQMFY SFUJSFNFOU DPOUSJCVUJPO TZTUFNT GPS FNQMPZFST XIP BSF PGUFO TUJMM FYQFDUFE UP QBZ VOGVOEFE 3"T FWFO XIFO DPSQPSBUF QFOTJPO QMBOT FYJTU

*O &BTU "TJB 3"T UFOE UP CF NBOEBUPSZ GPS FNQMPZFST $PNCJOFE XJUI B DFSUBJO JOFSUJB UIBU JT UZQJDBM PG DPSQPSBUF DVMUVSF XJUI SFHBSE UP TVDI QSBDUJDFT 5IJT QBSUMZ FYQMBJOT UIF TMPX HSPXUI PG QSJWBUF QFOTJPO BTTFUT JO UIF SFHJPO 'PS FYBNQMF 3"T JO +BQBO IBWF BMXBZT CFFO NBOEBUPSZ CVU UIFJS QSFGVOEJOH XBT OFWFS SFRVJSFE CZ MBX 'VMMZ GVOEFE WPMVOUBSZ QFOTJPO GVOET XFSF FYQFDUFE UP SFQMBDF UIF NBOEBUPSZ SFUJSFNFOU BMMPXBODF BSSBOHFNFOU BT FNQMPZFSTh UBY EFEVDUJPOT GPS SFUJSFNFOU BMMPXBODFT FYQJSFE JO :FU PG +BQBOFTF FNQMPZFST DPOUJOVF UP QSPWJEF 3"T JO BEEJUJPO UP OBUJPOBM QFOTJPO DPOUSJCVUJPOT BOE QPTTJCMZ B DPSQPSBUF QMBO 5BLBZBNB B ,PSFBhT 3" TZTUFN JT BMTP NBOEBUPSZ BOE BDDPNQBOJFE CZ TUSPOH UBY CFOFàUT )PXFWFS FWFO BGUFS UIF SFGPSN XIJDI NBEF DPSQPSBUF QFOTJPO QMBOT NBOEBUPSZ GPS OFXMZ FTUBCMJTIFE DPNQBOJFT 5PXFST 8BUTPO B

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



.BZ



QVSDIBTF B àSTU SFTJEFODF 5PXFST 8BUTPO 0G UIF UISFF &BTU "TJBO DPVOUSJFT UIBU IBWF %# QMBOT )POH ,POH JT UIF POMZ POF UP IBWF BDIJFWFE B NFBOJOHGVM USBOTJUJPO GSPN NBOEBUPSZ 3"T UP B NBOEBUPSZ GVOEFE TZTUFN 5IF FTUBCMJTINFOU PG %# BT XFMM BT EFàOFEDPOUSJCVUJPO TDIFNFT VOEFS UIF 0DDVQBUJPOBM 3FUJSFNFOU 4DIFNFT 0SEJOBODF 0340 XBT BDDPNQBOJFE CZ UBY JODFOUJWFT BOE B DMFBS MJOL BMMPXJOH UIF SFEVDUJPO PG 3"T JG B QFOTJPO QMBO JT QSPWJEFE /FYU XF EJTDVTT UIF TJ[F BOE EFWFMPQNFOU PG %# QMBOT JO &BTU "TJB

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

UP UIJT QPJOU JO TFDUJPO

CVU VOMJLF JO NPTU 0&$% DPVOUSJFT UIFZ BSF OPU CFJOH DMPTFE UP OFX NFNCFST PS DPOUSJCVUJPOT 1PUFSCB FU BM 0&$% 5IF QSFGFSFODF GPS %# QMBOT 5IF GBDU UIBU UIF MBSHFTU HSPVQ PG DPSQPSBUF QFOTJPO BTTFUT JO &BTU "TJB SFNBJOT B TNBMM QPPM PG %# BTTFU JT FYQMBJOFE CZ UXP NFDIB OJTNT POF UIF POF IBOE UIFSF JT TUJMM B QSFGFSFODF GPS %# QMBOT PWFS %$ PQUJPOT BNPOHTU MBSHF &BTU "TJBO àSNT FTQFDJBMMZ JO +BQBO BOE ,PSFB 0O UIF PUIFS IBOE UIFSF JT B QSFGFSFODF GPS OPU IBWJOH B QFOTJPO QMBO FTQFDJBMMZ BNPOHTU TNBMMFS àSNT 5IF SFBTPOT GPS UIF DPOUJOVFE QSFGFSFODF GPS %# QMBOT BSF NBOZ CVU UIF OBUVSF PG UIF &BTU "TJBO àSN BOE UIF SPMF PG UIF SFUJSFNFOU BMMPXBODF USBEJUJPO EFTDSJCFE BCPWF BSF BNPOHTU UIF NPTU TJHOJàDBOU (FOFSBMMZ TQFBLJOH DPVOUSJFT MJLF +BQBO BOE ,PSFB UIBU IBWF BO BEWBODFE CVU TUSPOHMZ JOUFHSBUFE JOEVTUSJBM TUSVDUVSF NBEF PG MBSHF DPOHMPNFSBUFT IBWF UFOEFE UP DPOUJOVF UP QSFGFS %# TDIFNFT EFTQJUF UIF JOUSPEVDUJPO PG %$ PQUJPOT GPS NPSF UIBO B EFDBEF JO +BQBO BOE TJODF JO ,PSFB $PVOUSJFT UIBU JOUSPEVDFE SFGPSNT MBUFS $IJOB CVU BMTP IBWF B EJGGFSFOU NVDI MFTT DPODFOUSBUFE JOEVTUSJBM TUSVDUVSF )POH ,POH 5BJXBO IBWF NBEF PS BSF JO UIF QSPDFTT PG NBLJOH B TIJGU UP %$ TDIFNFT XIJDI XF EJTDVTT JO TFDUJPO *O +BQBO BOE ,PSFB àSNT UIBU IBWF QFOTJPO QMBOT BMTP UFOE UP QSFGFS DPSQPSBUF %# QMBOT PWFS %$ QMBOT CFDBVTF BDDPVOUJOH BOE GVOEJOH SVMFT MFBWF UIFN NPSF MFFXBZ UP



.BZ



'JHVSF 1SJWBUF EFàOFECFOFàU TDIFNFT BTTFUT BT B TIBSF PG (%1

Japan

16%

Hong Kong

6%

Korea

2%

Taiwan

0%

China

0%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

4PVSDF .1'"

'JHVSF 1SJWBUF EFàOFECFOFàU BOE EFàOFEDPOUSJCVUJPO QFOTJPO BTTFUT JO &BTU "TJB 64%CO

Taiwan (2011)

$25

China (2010)

$84

Hong Kong (2012)

$14

$71

Korea (2011)

$24

$9

Japan (2011)

$798 0%

10%

20%

30%

40%

Corporate DB Plans

$60

50%

60%

70%

80%

90%

100%

All DC Plans

4PVSDF .1'"



.BZ



DPOUSPM UIF TJ[F PG UIFJS QFOTJPO MJBCJMJUZ BOE GVOEJOH DPOTUSBJOUT TFF TFDUJPO &GGPSUT UP MJNJU UIF QMBOhT DPTUT BMTP JODMVEF NBOEBUPSZ FBSMZ SFUJSFNFOU VTVBMMZ BU )FODF BT àHVSF TIPXT FWFO JO +BQBO XIFSF UIF NBKPSJUZ PG DPSQPSBUF QMBOT BSF %# QMBOT BOE XIFSF UIFTF IBWF FYJTUFE GPS EFDBEFT UPUBM BTTFUT IBWF OPU HSPXO UP SFQSFTFOU B WFSZ TJHOJàDBOU TIBSF PG (%1 +BQBO JT BO FYBNQMF PG BO BMSFBEZ BHFJOH DPVOUSZ XIJDI EFTQJUF IBWJOH JOUSPEVDFE UIF PQUJPO UP TIJGU UP %$ QMBOT IBT SFNBJOFE QSJNBSJMZ %# GPDVTFE BMM UIF XIJMF FYQFSJFODJOH MJNJUFE BTTFU HSPXUI CFDBVTF OFJUIFS %# OPS %$ PDDVQBUJPOBM PS DPSQPSBUF TDIFNFT BSF NBOEBUPSZ +BQBO IBT CFFO UISPVHI OVNFSPVT SFGPSNT PG DPSQPSBUF QFOTJPO BOE XIJMF UIF UXP UZQFT PG TDIFNFT &1'T BOE 5211T UIBU IBWF IJTUPSJDBMMZ IFME NPTU BTTFUT BSF DVSSFOUMZ CFJOH QIBTFE PVU PS SFDPOTJEFSFE UIFTF BTTFUT BSF NPTUMZ CFJOH NPWFE UP UIF OFXFTU GPSNBU GPS EFàOFECFOFàU DPSQPSBUF QFOTJPOT JO +BQBO %#$1T +BQBOhT UPUBM QSJWBUF %# BTTFUT IPXFWFS BSF OPU HSPXJOH BT àHVSF JMMVT USBUFT 'JHVSF TIPXT NFNCFSTIJQ HSPXUI JO +BQBOFTF DPSQPSBUF %# TDIFNFT %#$1T

SFáFDUJOH UIF DMPTJOH PG QSFWJPVT TDIFNFT BOE UIF USBOTGFS PG TPNF PG UIF FYJTUJOH NFNCFST #VU DPWFSBHF JO DPSQPSBUF QFOTJPOT JO +BQBO JT JO GBDU PO B EPXOXBSE USFOE EVF JO QBSU UP B MBDL PG USVTU JO UIF FNQMPZFShT àOBODJBM TUSFOHUI 6SBUB

UP SFNBJO TP TFF àHVSF CFDBVTF NPTU OFX NFNCFST FOSPM JO UIF NBOEBUPSZ %$ TZTUFN UP CF EJTDVTTFE JO TFDUJPO *O GBDU 0340 %# NFNCFSTIJQ JT EFDSFBTJOH BT TIPXO PO àHVSF *O ,PSFB EFTQJUF SFQSFTFOUJOH UXP UIJSET PG QFOTJPO BTTFUT %# TDIFNFT BSF NBSHJOBM JO UFSNT PG UIFJS TJ[F SFMBUJWF UP (%1 )PXFWFS ,PSFBhT SFHVMBUPSZ NPWF UP QIBTF PVU UBY JODFOUJWFT GPS SFUJSFNFOU BMMPXBODFT BOE NBLF DPSQPSBUF QFOTJPOT NBOEBUPSZ GPS OFX DPNQBOJFT BQQFBST UP IBWF TQVSSFE TUSPOH HSPXUI JO UIF ZFBST BGUFS SFGPSN BT TIPXO PO àHVSF *U SFNBJOT UP CF TFFO XIFUIFS UIJT USFOE DBO DPOUJOVF PODF MBSHF DPSQPSBUJPOT IBWF BEPQUFE UIFN *O PG QFSNBOFOU FNQMPZFFT JO ,PSFB XPSLFE GPS B MBSHF àSN NPSF UIBO FNQMPZFFT

FYDMVEJOH UIF QVCMJD TFDUPS 4P GBS UIF JOUSPEVDUJPO PG NBOEBUPSZ DPSQPSBUF QFOTJPOT IBT DPOàSNFE B TUSPOH QSFGFSFODF GPS %# QMBOT 1MBO DIBSBDUFSJTUJDT BOE GVOEJOH 5BCMF EFUBJMT UIF DIBSBDUFSJTUJDT PG %# QMBOT JO &BTU "TJB $PSQPSBUF %# QMBOT JO &BTU "TJB DBO CF CSPBEMZ DBUFHPSJTFE BDDPSEJOH UP UIF GPMMPXJOH DSJUFSJB ! 7PMVOUBSZ PS NBOEBUPSZ DPSQPSBUF TDIFNFT BSF WPMVOUBSZ JO +BQBO OFXMZ NBOEBUPSZ JO ,PSFB BOE PGGFSJOH FNQMPZFST B DIPJDF PG %# PS %$ QSPWJTJPO

BOE WPMVOUBSZ JO )POH ,POH BOE PGGFSJOH NFNCFST B POFUJNF DIPJDF UP TXJUDI UP UIF QSJNBSZ %$ TZTUFN JO UIF DPVOUSZ

*O )POH ,POH %# BTTFUT BSF TNBMM BT B TIBSF PG UPUBM QFOTJPO BTTFUT BOE DBO CF FYQFDUFE



.BZ



'JHVSF %# 0340 QMBO BTTFUT JO )POH ,POH

120 110

Assets in HKD bn

100 90 80 70 60 50 40

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011 4PVSDF .1'"

'JHVSF 1SJWBUF QFOTJPOT BTTFUT %# BOE %$ JO ,PSFB

60,000

50,000

40,000

30,000

20,000

Corporate IRP

Dec-12

Jun-12

Sep-12

Dec-11

Mar-12

Jun-11

Sep-11

Dec-10

Mar-11

Jun-10

Sep-10

Dec-09

Mar-10

Jun-09

Sep-09

Dec-08

Mar-09

Jun-08 DC

Sep-08

Dec-07

DB

Mar-08

Jun-07

Sep-07

Dec-06

Mar-07

Jun-06

Sep-06

Dec-05

-

Mar-06

10,000

Individual IRP

4PVSDF 'JOBODJBM 4VQFSWJTPSZ 4FSWJDF



.BZ



'JHVSF $PSQPSBUF BOE JOEJWJEVBM %# QMBO BTTFUT JO +BQBO 100 90 80 70

¥ trillions

60 50 40 30 20 10 0

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 TQPPs

EPFs

DBCPs

PFA

NPFs

4PVSDF 1'"

'JHVSF %# QMBO NFNCFSTIJQ HSPXUI JO &BTU "TJB 160% 140% 120% 100% 80% 60% 40% 20% 0%

2003

2004

2005

2006

2007

-20% -40% Japan's EPFs

Japan's TQPPs

Japan's DBCPs

Hong Kong's ORSO DB Funds

Japan's NPFs

4PVSDF 6SBUB BOE BOOVBM SFQPSUT BVUIPSTh DBMDVMBUJPOT



.BZ



5BCMF $IBSBDUFSJTUJDT PG DPSQPSBUF %# TDIFNFT JO &BTU "TJB Scheme Japan Employees Pension Funds (EPFs)

Created

Brief Description

Management Mandatory

Eligibility

1965

- Fully funded corporate DB pension plans - Set up as separate Private funds by employer or occupation to manage part of public assets and accummulate additional assets

No

Private-sector employees at workplaces with more than 500 staff

Defined-Benefit Corporate Pensions (DBCPs)

2001

No

Private-sector employees

Tax-Qualified Pension Plans (TQPPs) *** in abolition National Pension Funds (NPFs)

1962

- Fully funded corporate DB pension plans - Set up as Private separate funds by employer or occupation, or as contracts with financial service providers - Partially funded corporate DB pension plans - Set up as Private contracts with financial service providers - Individual annuities which can be purchased by the single or Public by multiples - Managed collectively by the National Pension Fund Association (NPFA)

No


No

Self-employed individuals in provinces with at least 1000 subscribers

2005

- Partially funded corporate DB pension plans - Set up as contracts with financial service providers

Private

Yes

Employees at workplaces with at least 5 staff

1993

- Fully funded corporate DB plans set up as contracts with financial service providers - Some are supervised by the Mandatory Provident Fund Schemes Authority (MPFA)

Private

No

Plan dependent

Korea Corporate DB Plans

Hong Kong Occupational Retirement Schemes Ordinance (ORSO) DB Schemes

1991


!

$POUSBDUT PS GVOET DPOUSBDUVBM BSSBOHF NFOUT BSF GPVOE JO )POH ,POH BOE DPNQSJTF PG +BQBOFTF BOE PG ,PSFBO DPSQPSBUF %# QMBOT XIFSFBT GVOEUZQF BSSBOHFNFOUT BSF GPVOE JO +BQBO BOE )POH ,POH

5IFTF QMBOT BSF GVOEFE QSJNBSJMZ GSPN DPOUSJCVUJPOT GSPN FNQMPZFST BMUIPVHI UIFSF BSF OP NJOJNVN SFRVJSFE DPOUSJ CVUJPOT BOE NBKPS QBSBNFUFST BSF QMBO EFQFOEFOU *O NPTU DBTFT FNQMPZFFT BSF BMMPXFE UP NBLF BEEJUJPOBM DPOUSJCVUJPOT IPXFWFS CFDBVTF UIF CFOFàU UZQJDBMMZ EFQFOET PO BO BDDSVBM GPSNVMB SBUIFS UIBO UIF BDDPVOU CBMBODF UIFZ IBWF B MFTTFS JODFOUJWF UP EP TP 7PMVOUBSZ DPOUSJCVUJPOT BSF BMTP MFTT MJLFMZ XIFO UIF QVCMJD QFOTJPO TZTUFN QSPNJTFT B HVBSBOUFFE BOE HFOFSPVT QPTU SFUJSFNFOU JODPNF QBSUMZ SFNPWJOH UIF

OFFE UP NBOBHF MPOHFWJUZ SJTL GPS SFUJSFFT 4BLBNPUP .JUDIFMM BOE 1JHHPUU $IFO FU BM 'VSUIFSNPSF VOEFS NPTU DPSQPSBUF %# QMBO JO UIF SFHJPO UIF FNQMPZFS JT FYQFDUFE UP BCTPSC BOZ GVOEJOH TIPSUGBMM JO GVMM TFF GPS FYBNQMF 6TVLJ . +V

GVSUIFS SFNPWJOH BOZ JODFOUJWFT UP TBWF JOUP UIF QFOTJPO TDIFNF GPS FNQMPZFFT 0UB BOE "TJBO %FWFMPQNFOU #BOL BMTP OPUF UIBU IJHIFS TQPOTPS DPOUSJ CVUJPOT NBZ OPU BMXBZT CF QPTTJCMF JO DFSUBJO TFDUPST FTQFDJBMMZ BU MPX QPJOUT JO UIF CVTJOFTT DZDMF *O +BQBO BOE )POH ,POHhT %# TDIFNFT UIF CFOFàUT PG FYJTUJOH SFUJSFFT DBO FWFO CF SFEVDFE VOEFS QBSUJDVMBSMZ CBE àOBODJBM DJSDVNTUBODFT BOE XJUI UIF BQQSPWBM PG UIF NBKPSJUZ PG FNQMPZFFT )FODF UIF QSJWBUF %# TFDUPS JO &BTU "TJB SFNBJOT SBUIFS VOEFSEFWFMPQFE EFTQJUF IBWJOH UIF MPOHFTU IJTUPSZ PG BMM UIF "O &%)&$3JTL *OTUJUVUF 1VCMJDBUJPO


.BZ



DPSQPSBUF BOE PDDVQBUJPOBM QMBOT BWBJMBCMF JO UIF SFHJPO "TTFUT IBWF HSPXO JOJUJBMMZ CVU UIJT HSPXUI IBT UZQJDBMMZ UBJMFE PGG BGUFS B XIJMF BOE UPUBM BTTFUT OFWFS DBNF UP SFQSFTFOU B MBSHF TIBSF PG (%1 .BOEBUPSZ TDIFNFT GVOEFE TPMFMZ CZ FNQMPZFST BOE NPTUMZ TFU VQ BT DPOUSBDUVBM QMBOT XJUI FYUFSOBM NBOBHFST IBWF OPU MFE UP UIF DSFBUJPO PG B TUSPOH DPSQPSBUF QFOTJPO TFDUPS CVU JOTUFBE IBWF CFDPNF BO BWBUBS PG UIF SFUJSFNFOU BMMPXBODF DVMUVSF UIBU QSFEPNJOBUFE &BTU "TJBO à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

-JBCJMJUJFT BOE MPOHUFSN JOWFTUNFOU PCKFDUJWFT (FOFSBMMZ TQFBLJOH UIF MJBCJMJUJFT PG DPSQPSBUF BOE PDDVQBUJPOBM %# QMBOT JO &BTU "TJB BSF OPU NBEF FYQMJDJU *U GPMMPXT UIBU MPOHUFSN JOWFTUNFOU PCKFDUJWFT UFOE OPU UP CF EFàOFE BOE UIBU BTTFU NBOBHFNFOU GPDVTFT PO DBQJUBM QSFTFS WBUJPO 'PS FYBNQMF 5PQ'VOET

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hT QSJWBUF %# QMBOT BOE UIF WBSJBCJMJUZ PG CFOFàU TJ[F DPNQPTJUJPO PS BDDSVBM SBUFT 7FTUJOH BOE QPSUBCJMJUZ SVMFT BSF JNQPSUBOU QBSBNFUFST GPS DPSQPSBUF %# QMBOT BT UIFZ JNQBDU UIF FGGFDUJWF BDDSVBM SBUF BOE UIF GVOEJOH MFWFM *OEFFE VOWFTUFE MJBCJMJUJFT OPSNBMMZ EP OPU OFFE UP CF GVOEFE BOE NVTU CF GPSHPOF CZ NFNCFST JG UIFZ MFBWF UIF DPNQBOZ QSJPS UP WFTUJOH CFDPNJOH FGGFDUJWF "OZ MBDL PG QPSUBCJMJUZ GSBHNFOUT CFOFàUT BOE DBO BMTP BGGFDU UIFJS BDDSVBM 7FTUJOH SVMFT JO &BTU "TJB BSF PGUFO VODMFBS BOE OPU TUBUVUPSZ BMUIPVHI GVMM WFTUJOH



.BZ



JO +BQBOFTF BOE ,PSFBO %# QMBOT BGUFS UISFF ZFBST JT DPNNPO QSBDUJDF 3FDFOU SFGPSNT JO )POH ,POH IBWF JNQSPWFE CFOFàU SJHIUT WFTUJOH "T WFTUJOH BOE QPSUB CJMJUZ SFHVMBUJPO CFDPNFT NPSF TUSJOHFOU FNQMPZFST XJMM CF VOEFS HSFBUFS QSFTTVSF UP GVOE UIFJS MJBCJMJUJFT

6OFYQFDUFE JNQSPWFNFOUT JO MJGF FYQFDUBODZ DPVME IBWF ESBTUJD DPOTF RVFODFT PO UIF WBMVF PG MJBCJMJUJFT "OUPMÎO FTUJNBUFT UIBU UIF OFU QSFTFOU WBMVF PG BOOVJUZ QBZNFOUT DPVME JODSFBTF CZ VQ UP GPS QMBOT XJUI ZPVOHFS NFNCFST BDDPVOUJOH GPS JNQSPWFNFOUT JO MJGF FYQFDUBODZ BU CJSUI PG ZFBST QFS EFDBEF BOE MJGF FYQFDUBODZ BU PG ZFBST

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àSTU OFFET UP GPSFDBTU GVUVSF QBZNFOUT UIBU XJMM IBWF UP CF NBEF

4FOEFS EJTDVTTFT UIJT BDDPVOUJOH SJTL BOE IPX JU SFMBUFT UP UIF TQPOTPS SJTL

8IFUIFS CFOFàUT BSF CBTFE PO àOBM TBMBSJFT PS TPNF XFJHIUJOH PG MJGFMPOH FBSOJOHT POF OFFET UP NBLF BDUVBSJBM BTTVNQUJPOT BCPVU TBMBSZ QSPHSFTTJPOT FBSMZ FYJUT GSPN UIF àSN FUD UP PCUBJO BO FDPOPNJDBMMZ TFOTJCMF GPSFDBTU .PSF TPQIJTUJDBUFE CFOFàU TUSVD UVSFT PGGFSJOH GPS JOTUBODF TPNF JOEFYBUJPO PG CFOFàUT PO JOáBUJPO NBZ DPNQMJDBUF UIF GPSFDBTUJOH FYFSDJTF 5IF IBSEFTU QBSBNFUFS UP GPSFDBTU IPXFWFS JT MJGF FYQFDUBODZ *U IBT CFFO TUFBEJMZ JODSFBTJOH BOE BEEJOH UP UIF MPOHUFSN

QSFTTVSF PG %# TDIFNFT 5IFSF JT B XFMM EPDVNFOUFE UFOEFODZ UP NJOJNJTF UIF GPSFDBTU PG MJGF FYQFDUBODZ JO %# QMBOT DPNQBSFE UP UIBU PG UIF HFOFSBM QPQVMBUJPO $BTT #VTJOFTT 4DIPPM 8IJMF UIJT NBZ SFáFDU BDUVBM JOGPSNBUJPO BCPVU UIF QMBOTh NFNCFST JU JT BMTP QPTTJCMF UIBU UIJT TFSWFT BT B XBZ UP SFEVDF UIF FTUJNBUFT PG QFOTJPO MJBCJMJUJFT )PXFWFS BT XF IJHIMJHIUFE BCPWF UIF QSFGFSFODF GPS QBZJOH MVNQ TVNT JO &BTU "TJBhT %# QMBOT DBO MJNJU UIF GPSFDBTUJOH FYFSDJTF DPOTJEFSBCMZ *O QBSUJDVMBS UIF XBHF JOEFYBUJPO PG UIF CFOFàUT EPFT OPU FYUFOU BT GBS JO UIF GVUVSF BOE MPOHFWJUZ SJTL JT FGGFDUJWFMZ QBTTFE CBDL UP JOEJWJEVBMT DSFBUJOH EF GBDUP IZCSJEJUZ "DDSVBM NFUIPE 5IF TFDPOE NBKPS FMFNFOU GPS FWBMVBUJOH DVSSFOU MJBCJMJUJFT JT UIF BDDSVBM NFUIPE JF XIBU GVUVSF DBTI áPXT UP CF QBJE UP QFOTJPOFST BSF XPSUI JO QSFTFOU WBMVF UFSNT 5IF QSPKFDUFE CFOFàU PCMJHBUJPO 1#0

UIBU UBLFT JOUP BDDPVOU QSPKFDUFE TBMBSZ JODSFBTFT BOE XIJDI SFáFDUT NPSF BDDVSBUFMZ UIF QFSTQFDUJWF PG UIF TQPOTPS DPNQBOZ JT UIF NBJO NFUSJD VTFE :FSNP

JODMVEJOH JO BDDPVOUJOH TUBOEBSET 5IF RVFTUJPO PG UIF EJTDPVOU SBUF JT DFOUSBM BT MPOHEVSBUJPO MJBCJMJUJFT UFOE UP CF FYUSFNFMZ TFOTJUJWF UP JU BOE GVSUIFSNPSF JU UFOET UP CF VTFE BT B UBSHFU SFUVSO SBUF )FODF EJTDPVOU SBUFT TIPVME CF DPOTJTUFOU XJUI SFBMJTUJD FYQFDUBUJPOT PG QPSUGPMJP QFSGPSNBODF



.BZ



5BCMF $PSQPSBUF BOE PDDVQBUJPOBM %# TDIFNFT QBSBNFUFST Scheme Japan Employees Pension Funds (EPFs)

Participants (th) as of

Recipents (th)

as of

% empl. pop



Contribution Limits

4,500 2011

2,500 2009

7%

Plan dependent, usually Plan dependent, min 2.00% usually min 2.00%


7,300 2011

N/A N/A

12%

Plan dependent


1,200 2011

N/A N/A

2%

No min required

Plan dependent, max Plan dependent 1/2 of total contribution No min required Plan dependent

420 2011

1%

None

Plan dependent

Max JPY 68,000 per month including contribution to NPI

3,300 2011

N/A N/A

14%

Plan dependent

Allowed

Max KRW 18 million per year

140 2011

N/A N/A

4%

Plan dependent

Plan dependent

Plan dependent

Korea Corporate DB Plans Hong Kong Occupational Retirement Schemes Ordinance (ORSO) DB Schemes

550 2011

Plan dependent

4PVSDF TFF àHVSF

" àYFE EJTDPVOU SBUF IBT CFFO DPNNPO JO UIF QBTU CVU NBSLFUCBTFE WBMVBUJPO NFUIPET FH VTJOH CPOE ZJFMET BSF OPX NPSF GSFRVFOUMZ VTFE BT UIF *'34 JT BEPQUFE UISPVHIPVU UIF SFHJPO ,PSFBO %# GVOET BSF FYQFDUFE UP VTF DPSQPSBUF CPOE ZJFMET BT EJTDPVOU SBUFT XIJMF NBSLJOH BTTFUT UP NBSLFU VOEFS UIF *'34 5PXFST 8BUTPO

CVU .PPO EPDVNFOUT OVNFSPVT JOBEFRVBUF BDUVBSJBM QSBDUJDFT JO UIF SFHJPO +BQBOFTF %# GVOET BSF FYQFDUFE UP WBMVF BTTFUT CBTFE PO FDPOPNJD PS GBJS NBSLFU WBMVF CVU UIFZ DBO TNPPUI UIF WBMVBUJPO SBUF 6TVLJ . +BQBOhT 1'" EBUB QSFTFOUFE BU UIF *.' 0"1'"% $POGFSFODF JO JOEJDBUFT UIBU &1'T VTF IJHIFS EJTDPVOU SBUFT UIBO NPTU %#$1T XIJDI VTF B SBUF CFUXFFO BOE 8IJMF UIF VTF PG B NBSLFU SBUF JT BSHVBCMZ QSFGFSBCMF UP VTJOH B DPOTUBOU SBUF m XIFUIFS JU JODMVEFT B DSFEJU TQSFBE DPNQPOFOU PS OPU m UIF VTF PG UIF TBNF NBSLFU SBUF UP EJTDPVOU BMM QFOTJPO MJBCJM JUJFT SFHBSEMFTT PG UIF TQPOTPS DSFEJU SBUJOH

QFOTJPO GVOEJOH TJUVBUJPOT BOE BTTFU BMMPDBUJPO QPMJDZ DBO IBSEMZ CF KVTUJàFE *OEFFE JU JT JNQPTTJCMF UP JNBHJOF UIBU UIF TQPOTPShT IFBMUI IBT OP JOáVFODF PO UIF GVUVSF WBMVF PG QFOTJPOT PS FWFO PO UIFJS FYJTUFODF -POHUFSN PCKFDUJWFT &BTU "TJBh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àSN BOE FGGFDUJWFMZ àOBODFE CZ



.BZ



5BCMF $PSQPSBUF %# TDIFNFT QBSBNFUFST DPOUJOVFE

Scheme

Japan Employees Pension Funds (EPFs)


Ret. Age 60

60

Taxation

Benefit Composition

Plan dependent, but benefit - 1 month contributions Plan dependent reduction possible for basic benefit - Plan dependent for the additional benefit but cannot exceed 20 years of contributions

Guaranteed substitutional benefit


Plan dependent, but benefit Plan dependent but Plan dependent reduction possible cannot exceed 20 years of contributions

In a hybrid setting, a positive interest rate based on the government rate is guaranteed None


No clear rules

N/A


No clear rules

None


No clear rules

None


No

Immediate vesting implied

Plan dependent

No

Plan dependent

Wage indexation

Upon redundancy

- Plan dependent - Gradual Plan dependent vesting after 3 years

Accrual of one monthly 10 years of contributions None salary based on average final wage per year of service

- Tax-deductible contributions - Benefits and - Basic substitutional benefit plus additional No investment income taxed at withdrawal benefit - Basic benefit and at least half of the Deduction for annuities - Special rate for additional benefit should be paid as a life annuity lump sums tied to seniority Lump sum possible for supplementary benefit with 3 years of contributions, with financial penalty Annuity possible for supplementary benefit with 20 years of contributions - Plan dependent - Annuity benefit - Lump sum No possible with financial penalty but only with at least 3 years of contributions - Hybridity possible via cash balance plans

- Tax-deductible contributions - Partial tax deduction at withdrawal of benefits depending on their type - Special corporate tax may apply to assets

Plan - Tax-deductible employer contributions until Annuity benefit only dependent 2012 - Special asset tax may apply 65 Tax-exempt individual contributions up to the - Hybridity present - Benefits purchased and contribution limit received as annuity lots 55

- Lump sum - Hybridity possible in combination with DC plan

- Preferrential taxation up to KRW 12 million - - Annuity benefit for 5 years - Lump sum possible, No Preferrential taxation for annuity benefits especially when changing jobs - Should not be less than one month's average salary per year of service - Hybridity possible in combination with DC plan

Plan Tax-free contributions and benefits dependent

.BZ


Tax-Qualified Pension Plans (TQPPs) *** in abolition National Pension Funds (NPFs) Korea Corporate DB Plans

Hong Kong Occupational Retirement Schemes Ordinance (ORSO) DB Schemes

4PVSDF TFF UBCMF




FNQMPZFST UIFZ BNPVOU UP B GPSN PG EFGFSSFE DPNQFOTBUJPO JO UIF DPOUFYU PG UIF SFUJSFNFOU BMMPXBODF USBEJUJPO EJTDVTTFE BCPWF 5IF OBUVSF PG UIF CFOFàU DBO MFBE UP B GPDVT PO DBQJUBM QSFTFSWBUJPO BOE UP JOWFTUJOH JO MPXZJFMEJOH HVBSBOUFFE QSPEVDUT BT JT UIF DBTF JO ,PSFB GPS FYBNQMF TFF TFDUJPO CFMPX *O +BQBO àSNT TVGGFS GSPN B HFOFSBMJTFE EFCUPWFSIBOH QSPCMFN ,PP

XIJDI UIFJS QFOTJPO MJBCJMJUJFT FWFO DBMDVMBUFE BT MVNQ TVNT POMZ NBLF NPSF BDVUF 5IF UFOEFODZ JT UIVT UP UBLF NPSF SJTL BT UIFJS DIPJDF PG EJTDPVOU SBUFT BMTP JNQMJFT QPUFO UJBMMZ BU UIF FYQFOTF PG QMBO NFNCFST -POH UFSN PCKFDUJWFT BSF UIVT TBDSJàDFE UP USZ BOE TBUJTGZ TIPSU UFSN DPOTUSBJOUT /FYU XF SFWJFX UIF TIPSUUFSN DPOTUSBJOUT VOEFS XIJDI UIFZ TIPVME CF FYQFDUFE UP EP TP

4IPSUUFSN DPOTUSBJOUT 'PS DPSQPSBUF %# QMBOT BT GPS PUIFS QFOTJPO GVOET BDIJFWJOH UIF MPOHUFSN PCKFDUJWF PG GVOEJOH QFOTJPO PCMJHBUJPOT TIPVME UP CF EPOF XJUIJO UIF MJNJUT JNQPTFE CZ B TFU PG TIPSUUFSN DPOTUSBJOUT XIJDI BSF QBSU TUBUVUPSZ QBSU TFMGJNQPTFE 'VOEJOH 3VMFT 0ODF UIF JTTVF PG FWBMVBUJOH UIF MJBCJMJUJFT IBT CFFO EFBMU XJUI UIF RVFTUJPO JT XIFUIFS UIFZ TIPVME CF GVMMZ DPWFSFE CZ TFUUJOH BTJEF SFTFSWFT JNNFEJBUFMZ

5IF GVOEJOH SBUJP JT UIF WBMVF PG UIF QFOTJPO TDIFNFhT BTTFUT PWFS JUT BDDSVFEUPEBUF MJBCJMJUJFT 5IF WBMVF DBO CF RVJUF EJGGFSFOU EFQFOEJOH PO UIF BGPSFNFOUJPOFE BTTVNQ UJPOT OPUBCMZ UIF EJTDPVOU SBUF BOE UIF DIPJDF PG "#0 PS 1#0 %# GVOEJOH SBUJPT DBO WBSZ TVCTUBOUJBMMZ XJUI UIF BDUVBSJBM BOE BDDSVBM NFUIPET VTFE 1VHI EFTDSJCFT GVOEJOH SFHVMB UJPOT BOE UIF JTTVFT UIFZ SBJTF *O UFSNT PG WBMVBUJPO UIFSF JT B EFCBUF BCPVU XIFUIFS SFHVMBUPST TIPVME JNQPTF BDUVBSJBM BTTVNQ UJPOT PS FWFO UIF WBMVBUJPO SVMFT 5IJT XPVME MJNJU UIF QPUFOUJBM GPS NBOJQVMBUJPO GSPN UIF TQPOTPS CVU NJHIU CF UPP NVDI PG B CSVUF GPSDF BQQSPBDI 4QPOTPSTQFDJà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àY .JOJNVN GVOEJOH SVMFT GPS QFOTJPO TDIFNFT NBZ CF WFSZ DPTUMZ UP BQQMZ EJSFDUMZ BOE GBJM UP SFDPHOJTF UIF TQFDJ àDJUJFT PG QFOTJPOT TFF GPS JOTUBODF "NFOD



.BZ



FU BM 'JSTU PG BMM JU JT OPU DMFBS BU BMM UIBU %# QFOTJPO QMBOT OFFE UP CF GVMMZ GVOEFE BT MPOH BT UIF TQPOTPS JT DBQBCMF PG QBZJOH CFOFàUT FWFSZ ZFBS 4FDPOE QFOTJPO QMBOT BSF USVMZ MPOHUFSN JOWFTUPST BOE UIF VOEFSGVOEJOH BU B HJWFO QPJOU JO UJNF DPVME CF NFBOJOHMFTT BT MPOH BT UIF BEFRVBUF BTTFUMJBCJMJUZ NBOBHFNFOU TUSBUFHJFT BSF CFJOH BQQMJFE 'VOEJOH SFRVJSFNFOUT GPS &BTU "TJBhT %# QMBOT FWFO UIPVHI UIFZ BSF TUBUVUPSZ PGGFS TPNF EFHSFF PG áFYJCJMJUZ BOE NBZ QBSUMZ FYQMBJO FYQMBJO UIF QSFGFSFODF PG FNQMPZFST GPS %# TDIFNFT DPNQBSFE UP %$ TDIFNFT XIJDI IBWF TUSJDUFS GVOEJOH PCMJHBUJPOT 'PS FYBNQMF JO )POH ,POHhT 0340 %# TDIFNFT UIF DPNCJOFE WFTUFE MJBCJMJUZ TIPVME CF GVMMZ DPWFSFE CVU BDUJPOT VQPO TIPSUGBMM BSF OFHPUJBCMF 4UJMM )POH ,POH JT UIF POMZ DPVOUSZ JO UIF SFHJPO XIFSF OPO DPNQMJBODF DBO MFBE UP KVEJDJBM QSPDFFEJOHT .BOEBUPSZ 1SPWJEFOU 'VOE 4DIFNFT "VUIPSJUZ C 4JNJMBSMZ +BQBOhT &1'T BOE %#$1T TIPVME CF GVOEFE 6TVLJ . VOEFS B áFYJCMF UJNFGSBNF &OGPSDFNFOU IPXFWFS JT MBY /FX SFHVMBUJPOT GPS ,PSFBO %# QMBOT SFRVJSF GVOEJOH DPNQBSFE UP JO UIF QBTU

BOE QSFTDSJCF BO FNQMPZFS DPOUSJCVUJPO UP àMM UIF HBQ +V 5IFSF JT B EFCBUF CFUXFFO BEWPDBUFT PG UJHIUFS SFHVMBUJPO EFTJHOFE UP QSPWJEF FYQMJDJU JODFOUJWFT GPS QFOTJPO GVOET UP JODSFBTF UIFJS GPDVT PO SJTL NBOBHFNFOU

BOE UIPTF BSHVJOH UIBU JNQPTJOH TIPSUUFSN GVOEJOH DPOTUSBJOUT BOE TPMWFODZ SFRVJSF NFOUT PO TVDI MPOHUFSN JOWFTUPST XPVME POMZ JODSFBTF UIF DPTU PG QFOTJPO àOBODJOH *U IBT CFFO XJEFMZ EPDVNFOUFE UIBU UIF DPTU PG DBQJUBM JODSFBTFT XJUI NBOEBUPSZ QFOTJPO DPOUSJCVUJPOT $BNQCFMM FU BM TIPX UIBU UIJT JT EVF UP HFOFSBMMZ UJHIUFS àOBODJBM DPOTUSBJOUT GPS UIF àSN )PXFWFS UIF JNQBDU JT GPVOE UP CF POMZ TUBUJTUJDBMMZ BOE FDPOPNJDBMMZ TJHOJàDBOU GPS àSNT UIBU BSF BMSFBEZ OPOJOWFTUNFOU HSBEF 1SVEFOUJBM SVMFT UIBU BQQMZ JOEJGGFS FOUMZ XJUIPVU DPOTJEFSJOH UIF IFBMUI PG UIF TQPOTPS NBZ UIVT EP NPSF IBSN UIBO HPPE 4UJMM .BSUFMMJOJ BOE .JMIBV TIPX UIBU JU JT OPU TP NVDI UIF QSFTFODF PG TIPSUUFSN GVOEJOH SBUJP DPOTUSBJOUT UIBU JT DPTUMZ GPS QFOTJPO GVOET BT UIFJS SFMVDUBODF UP JNQMFNFOU SJTLNBOBHFNFOU TUSBUFHJFT UIBU BSF PQUJNBM HJWFO TVDI SFHVMBUPSZ DPOTUSBJOUT *OWFTUNFOU SFTUSJDUJPOT (FOFSBMMZ TQFBLJOH UIF UZQF PG SFTUSJDUJPOT EJTDVTTFE JO TFDUJPO PO &BTU "TJBhT QFOTJPO SFTFSWFT BMTP BQQMZ UP DPSQPSBUF %# QMBOT 0UIFS OPUBCMF DPOTUSBJOUT JODMVEF !

,PSFBO %# QMBOT IBWF NBYJNVN MJNJUT BT GPMMPXT /PNVSB -JTUFE EPNFTUJD BOE JOUFSOBUJPOBM TUPDLT NBZ OPU FYDFFE &RVJUZ GVOET NVTU CF VOEFS #BMBODFE GVOET NVTU CF PS MFTT *OUFSOBUJPOBM CPOE GVOET NBZ OPU FYDFFE



.BZ



!

)POH ,POHhT 0340 TDIFNFT DBOOPU JOWFTU JO VOMJTUFE FRVJUZ .BOEBUPSZ 1SPWJEFOU 'VOE 4DIFNFT "VUIPSJUZ D

*O BEEJUJPO UIF QSFWBMFODF PG MVNQ TVNT BOE GSFRVFOU QSFNBUVSF XJUIESBXBMT SFRVJSF IPMEJOH IJHIFS MFWFMT PG DBTI UIBO NBZ PUIFSXJTF CF OFDFTTBSZ XIJDI BDUT BT B EF GBDUP DPOTUSBJOU

*OWFTUNFOU NBOBHFNFOU 'VOEJOH MFWFMT 'VOEJOH MFWFMT WBSZ ESBNBUJDBMMZ BDSPTT UIF SFHJPO

*O DPOUSBTU POMZ TJY PVU PG )POH ,POHhT %# 0340 TDIFNFT XFSF VOEFSGVOEFE BT PG .BOEBUPSZ 1SPWJEFOU 'VOE 4DIFNFT "VUIPSJUZ B SFQPSUT UIBU UIFTF TIPSU GBMMT BU 0340 TDIFNFT XFSF DBVTFE CZ JOWFTUNFOU VOEFSQFSGPSNBODF

$VSSFOU GVOEJOH MFWFMT PG ,PSFBO DPSQPSBUF %# QMBOT WBSZ CFUXFFO BOE 5PQ'VOET

XIJDI DPOTJEFSJOH UIF IJTUPSJD NJOJNVN SFRVJSFNFOU PG JT B TJHO UIBU %# GVOET JO ,PSFB DPVME QSPCBCMZ BDIJFWF GVMM GVOEJOH JG UIFZ BJNFE UP JNQSPWF SJTLBEKVTUFE QFSGPSNBODF

5IF GSFRVFOU GBJMVSF UP SFBDI BEFRVBUF MFWFMT PG GVOEJOH SFTVMUT GSPN JOBEFRVBUF "-. QSBDUJDFT *O %# QMBOT UIF NFUIPET GPS BTTFUMJBCJMJUZ NBOBHFNFOU DBOOPU CF BQQMJFE XJUIPVU SFDPHOJTJOH UIF SPMF QMBZFE CZ UIF TQPOTPS TFF GPS JOTUBODF .BSUFMMJOJ BOE .JMIBV *OEFFE UIF TQPOTPS BDUT BT B HVBSBOUFF JG UIF BTTFUT BSF JOTVGà DJFOU UP DPWFS UIF QBZNFOU PG UIF CFOFàUT 5IF BTTFUMJBCJMJUZ NBOBHFNFOU TUSBUFHZ JG JU JHOPSFT UIF TQPOTPS NJHIU DSFBUF QSP DZDMJDBM FGGFDUT *G GVOEJOH OFFET UP JODSFBTF KVTU BT UIF TQPOTPShT IFBMUI JT EFUFSJPSBUJOH BT DBO IBQQFO EVSJOH B EPXOUVSO JO UIF CVTJOFTT DZDMF

UIFO UIF SFUJSFNFOU TDIFNF NJHIU FOEBOHFS UIF TPMWFODZ PG UIF TQPOTPS DPNQBOZ

*O ,PSFBO QSJODJQBMHVBSBOUFFE %# QSPEVDUT FBSOFE . PO BWFSBHF XJUI BDUVBM SFUVSOT SBOHJOH GSPN UP . /POHVBSBOUFFE %# QSPEVDUT PO UIF PUIFS IBOE FBSOFE −. PO BWFSBHF JO UIF TBNF ZFBS XJUI SFUVSOT SBOHJOH

4UJMM UIFSF JT MJUUMF FWJEFODF PG TDJFOUJàD "-. JNQMFNFOUBUJPO JO &BTU "TJB %# QMBOT 8IFO JU FYJTUT "-. JT VOEFSUBLFO PO UIF TJEF PG UIF JOWFTUNFOU TPMVUJPO QSPWJEFST JF CBOLT BOE JOTVSBODF DPNQBOJFT UP XIJDI BTTFU NBOBHFNFOU HFUT PVUTPVSDFE

*O +BQBO BDDPSEJOH UP UIF .JOJTUSZ PG )FBMUI .)-8

IBMG PG BMM +BQBOFTF &1'T BSF VOEFS GVOEFE BOE UIFJS UPUBM TIPSUGBMM JO XBT PWFS +1: USJMMJPO 64% CJMMJPO *O QBSUJDVMBS FGGPSUT UP JODSFBTF SFUVSOT IBWF CFFO VOTVDDFTTGVM BT àHVSF JMMVTUSBUFT &1'T UBLF PO TVCTUBOUJBMMZ NPSF SJTL XJUIPVU JNQSPWJOH SFUVSOT DPNQBSFE UP QVCMJD %# TDIFNFT 3FTFSWF GVOET

GSPN −. UP . 5PXFST 8BUTPO C 8BHF JOáBUJPO JO UIF TBNF QFSJPE XBT . IJHIMJHIUJOH UIF OFFE GPS CFUUFS QFSGPSNBODF 5PQ'VOET " TUSPOHFS GPDVT PO SFUVSO HFOFSBUJPO XJMM IFMQ DPSQPSBUF QFOTJPO QMBOT JNQSPWF UIFJS GVOEJOH XJUIPVU JODSFBTJOH UIF DPTU CVSEFO PO FNQMPZFST



.BZ



*O UIF BCTFODF PG B TUSVDUVSJOH SPMF PG UIF TDIFNFhT MJBCJMJUJFT JO TFUUJOH JOWFTUNFOU PCKFDUJWFT UIF JODFOUJWFT UP JOWFTU PO B MJBCJMJUZESJWFO CBTJT EP OPU FYJTU 5IF MPOH UFSN UBSHFU CFDPNFT B MPPTFMZ EFàOFE BTTFU QSFTFSWBUJPO TUSBUFHZ XJUI BO PQUJPO UP SFRVJSF BE IPD TQPOTPS DPOUSJCVUJPOT JO EVF DPVSTF BOE XJUIJO B MJNJUFE UJNFGSBNF TJODF CFOFàUT BSF QBJE BT MVNQ TVNT

$POWFSTFMZ PUIFS &BTU "TJBO DPSQPSBUF %# QMBOT BSF JOWFTUFE JO MPXZJFMEJOH BTTFUT 'PS FYBNQMF JO ,PSFBO DPSQPSBUF QFOTJPO QMBOT XFSF TUJMM IFBWJMZ JOWFTUFE JO HVBSBOUFFE JOTVSBODF DPOUSBDUT PGGFSJOH B HVBSBOUFFE JOUFSFTU SBUF (*$T

BOE UFSN TBWJOHT PG BMM BTTFUT BOE HSPXJOH PG UIJT BNPVOU XBT JOWFTUFE JO DBTI

5PQ'VOET

"TTFU BMMPDBUJPO *O UIF BCTFODF PG QSPQFS BTTFUMJBCJMJUZ NBOBHFNFOU UIFSF JT DMFBS FWJEFODF PG DPOáJDUT PG JOUFSFTUT CFUXFFO UIF WBSJPVT TUBLFIPMEFST BOE JO QBSUJDVMBS CFUXFFO TIBSFIPMEFST BOE QFOTJPOFST

"T NFOUJPOFE BCPWF MVNQ TVNT BOE QSFNBUVSF XJUIESBXBMT IJOEFS JOWFTUNFOU SFUVSO NBYJNJTBUJPO BOE DPNQMJDBUF MJBCJMJUZ NPEFMMJOH TJODF UIFZ SFRVJSF IJHI MFWFMT PG DBTI UIBO NBZ PUIFSXJTF CF OFDFTTBSZ

5IF UFOEFODZ PG NBOZ %# DPSQPSBUF QFOTJPO GVOET UP JOWFTU PO B MBSHF TDBMF JO SJTLZ BTTFUT JT OPU CFOFàDJBM GPS QFOTJPOFST BOE JT UIF SFTVMU PG B WFSJUBCMF DPOáJDU PG JOUFSFTU CFUXFFO UIF DPSQPSBUJPOhT TIBSFIPMEFST BOE JUT GVUVSF QFOTJPOFST "TTVNJOH UIFZ EP OPU IBWF BDDFTT UP BOZ TVSQMVT PG UIF QFOTJPO GVOE UIJT JODSFBTF JO SJTLUBLJOH JT EFUSJ NFOUBM GSPN UIF QFOTJPOFSTh QFSTQFDUJWF CFDBVTF JU JOWPMWFT JODSFBTJOH UIF MJLFMJIPPE PG QBSUJBM SFDPWFSZ PG QFOTJPO DMBJNT XIJMF SJTLUBLJOH BMMPXT TIBSFIPMEFST UP SFEVDF UIF CVSEFO PO DPOUSJCVUJPOT OFFEFE UP NFFU FYQFDUFE QFOTJPO QBZNFOUT EVF UP FYQPTVSF UP UIF VQTJEF QPUFOUJBM PG QFSGPSNBODF TFFLJOH BTTFUT 5IJT EFTDSJQUJPO àUT UIF QBUUFSO PG +BQBOFTF %# QMBOT XIJDI IBWF IJHI BMMPDBUJPOT UP FRVJUJFT PGUFO QVU UP *1"TJB 'JHVSF TVHHFTUT IPXFWFS QPPS SJTL BEKVTUFE QFSGPSNBODF

.PSFPWFS DPOUSBSZ UP +BQBO GVOEJOH MFWFMT IBWF TP GBS CFFO MFTT QSPCMFNBUJD JO ,PSFB CFDBVTF GVOEJOH DPOTUSBJOUT XFSF MPX

BOE UIF TFDUPS JT TUJMM BU BO FBSMZ QFSJPE PG JUT EFWFMPQNFOU BOE BTTFU HSPXUI JT IJHI )FODF TQPOTPST IBWF DPNQMFUFMZ EJTSF HBSEFE QFSGPSNBODF TFFLJOH PCKFDUJWFT BOE GPDVT PO DBQJUBM QSFTFSWBUJPO 4JODF IPXFWFS B HSBEVBM TIJGU UPXBSET NPSF CBMBODFE QPSUGPMJPT IBT FNFSHFE BT UIF NJOJNVN GVOEJOH SBUJP XBT JODSFBTFE UP

1PUFOUJBM JNQSPWFNFOUT 5IF JOWFTUNFOU QSPCMFN GBDFE CZ %# GVOET JO &BTU "TJB JT SBUIFS TJNQMFS UIBO GPS NPTU %# TDIFNFT JO UIF SFTU PG UIF XPSME TJODF UIFZ NPTUMZ QBZ B MVNQ TVN PO SFUJSFNFOU PS XIFO JOEJWJEVBMT EFDJEF UP XJUIESBX UIFJS WFTUFE CFOFàUT UIFTF QMBOT BSF OPU FYQPTFE UP MPOHFWJUZ SJTL BU BMM BOE BSF



.BZ



'JHVSF 3FUVSO BOE WPMBUJMJUZ PG +BQBOFTF %# TDIFNFT DPNQBSFE UP SFTFSWF GVOET ZFBS BOOVBMJTFE

8% Japanese NPFs

7% Korea's NPF

5-Year Annualised Return

Japan's EPFs

Taiwan's PSPF

6% Taiwan's LIF

5%

Taiwan's LRF

4% 3%

Japan's GPIF 2% 1% 0%

0%

5%

10%

15%

20%

25%

30%

35%

Japan's EPFs

Japanese NPFs

5-Year Annualised Volatility Japan's GPIF

Korea's NPF

Taiwan's PSPF

Taiwan's LRF

Taiwan's LIF

4PVSDF "OOVBM SFQPSUT BOE BVUIPShT DBMDVMBUJPOT

POMZ FYQPTFE UP JOEFYBUJPO SJTLT VOUJM UIF SFUJSFNFOU EBUF 5IFTF SJTLT XIJDI BSF UZQJDBMMZ USBOTGFSSFE UP JOEJWJEVBMT XIFO NPWJOH GSPN %# UP %$ TDIFNFT IBWF BMXBZT CFFO DBSSJFE CZ JOEJWJEVBMT JO UIF DBTF PG &BTU "TJB JOTPGBS BT UIFJS DPNQMFNFOUBSZ QSJWBUF SFUJSFNFOU JODPNF JT DPODFSOFE 8IBU &BTU "TJBhT DPSQPSBUF %# TDIFNFT OPX OFFE UP BDIJFWF JT BO JNQSPWFNFOU PG UIFJS GVOEJOH MFWFM BOE WPMBUJMJUZ JO UIF DPOUFYU PG NPSF TUSJOHFOU SFHVMBUJPO BOE UIF OFFE UP NJOJNJTF EFNBOET PO UIF TQPOTPS $PSQPSBUF %# QMBOT TIPVME BJN UP PQUJNJTF UIF GVOEJOH PG UIFJS MJBCJMJUJFT BT IJHIFS DPOUSJCVUJPOT NBZ OPU CF FDPOPNJDBMMZ GFBTJCMF BOE TIPSUGBMM SJTL JT CPSOF CZ QMBO TQPOTPST *O QBSUJDVMBS B MJBCJMJUZIFEHJOH QPSUGPMJP IFMQT NFFU HVBSBOUFFT BOE BMMPXT

GPS DBQJUBM QSFTFSWBUJPO XIJMF GSFFJOH VQ B SJTL CVEHFU UP JNQSPWF QSPàUBCJMJUZ BOE UIFSFCZ SFEVDF UIF DPTU CVSEFO PO UIF FNQMPZFS #FTU QSBDUJDF HPWFSOBODF .PTU PG UIF EJTDVTTJPO SFMBUJOH UP HPPE HPWFSOBODF BQQMJFT TJNJMBSMZ UP PDDVQB UJPOBM %# GVOET BT JU EPFT UP PUIFS GPSNT PG GVOET *NQSPQFS TFHSFHBUJPO PG BTTFUT DBO MFBE UP EJTBTUFST XIJDI DBO CF DPNQPVOEFE JG UIF TQPOTPS TVGGFST GSPN B UVSO JO UIF CVTJOFTT DZDMF BU UIF TBNF UJNF *TTVFT JO JOWFTUNFOU HPWFSOBODF XFSF IJHIMJHIUFE JO UIF SFDFOU BDDPVOUJOH TDBOEBM JO +BQBO " #MPPNCFSH

TVSWFZ TIPXFE UIBU PG &1' NBOBHFST EJE OPU IBWF FOPVHI FYQFSJFODF JO BTTFU NBOBHFNFOU ,BHF BMTP SFGFST UP HPWFSOBODF BT B DIBMMFOHF JO +BQBOFTF DPSQPSBUF GVOET *OEFFE UIF DMPTVSF PG &1'T



.BZ



BOE 5211T JT MBSHFMZ BUUSJCVUFE UP MBDL PG QSPQFS HPWFSOBODF (PWFSOBODF JT DSVDJBM UP UIF SJTLUBLJOH BCJMJUZ PG DPSQPSBUF %# GVOET BT XF EJTDVTTFE JO TFDUJPO JO UIF DBTF PG QFOTJPO SFTFSWF GVOET 3FHBSEJOH DPSQPSBUF %# GVOET 0&$% JOTJTUT PO UIF JNQMFNFOUBUJPO PG SJTLCBTFE JOUFSOBM DPOUSPMT SJTL NBOBHFNFOU BOE QFSGPS NBODF NFBTVSFNFOU GPS JOUFSOBM TUBGG BOE FYUFSOBM QSPWJEFST .JUJHBUJOH DPOáJDUT PG JOUFSFTU 5IF BTTFU NBOBHFNFOU PG PDDVQBUJPOBM %# GVOET JT B DPNQMFY UPQJD 5IF WBSJPVT TUBLFIPMEFST OBNFMZ TQPOTPS DPNQBOJFT PS SBUIFS UIFJS TIBSFIPMEFST BOE EFCU IPMEFST

DVSSFOU XPSLFST BOE DVSSFOU QFOTJPOFST IBWJOH EJWFSHFOU PCKFDUJWFT *O UIJT MJHIU BTTFUMJBCJMJUZ NBOBHFNFOU QSBDUJDFT TIPVME BJN UP SFDPODJMF UIF JODFO UJWFT PG UIF EJGGFSFOU QBSUJFT 3BVI

TIPX IPX JNQPSUBOU JU JT UP BWPJE DPTUMZ àOBODJBM EJTUSFTT 'JSNT UIBU BSF IFBMUIJFS DBO BGGPSE UP UBLF PO NPSF SJTLZ BTTFU BMMPDBUJPO )PXFWFS IF EPFT OPU àOE UIBU UIF QFOTJPO TDIFNFT EZOBNJDBMMZ BEKVTU UIFJS JOWFTUNFOU UP UBLF JOUP BDDPVOU UIF TQPOTPShT GVOEJOH DPOTUSBJOUT 1IBO BOE )FHEF àOET UIBU àSNT XJUI HPPE HPWFSOBODF UFOE UP UBLF NPSF SJTLT JO UIFJS BTTFU BMMPDBUJPO BOE PCUBJO CFUUFS GVOEJOH SBUJPT " TJNQMF BQQMJDBUJPO PG BTTFUMJBCJMJUZ NBOBHFNFOU NPEFMT XPVME OPU CF PQUJNBM GPS BO PDDVQBUJPOBM %# GVOE CBDLFE CZ B TQPOTPS "O "-. NPEFM TQFDJàD UP %#

GVOET JT EFWFMPQFE CZ 4JFHNBOO

BDDPVOUJOH GPS JOáBUJPO VODFSUBJOUZ BOE JUT DPSSFMBUJPO XJUI TUPDL SFUVSOT XIJDI NBZ CF JNQPSUBOU XIFO CFOFàUT BSF JOEFYFE .BSUFMMJOJ FU BM EFWFMPQ BO JOUFHSBUFE "-. NPEFM UIBU FYQMJDJUMZ BDDPVOUT GPS UIF JNQMJDJU HVBSBOUFF QSPWJEFE CZ UIF TQPOTPS SFDPHOJTJOH UIBU JU JT NPSF PS MFTT SJTLZ EFQFOEJOH PO UIF IFBMUI PG UIF TQPOTPS 5IJT zTQPOTPS SJTLh DBOOPU BMXBZT CF GVMMZ IFEHFE " NBKPS UBLFBXBZ JT UIBU TNBSUFS TVSQMVT TIBSJOH SVMFT TIPVME CF FODPVSBHFE *O QBSUJDVMBS HJWJOH QMBO NFNCFST BDDFTT UP QBSU PG UIF TVSQMVT XJMM FODPVSBHF NPSF SJTLUBLJOH XIJDI JT UZQJDBMMZ JO UIF JOUFSFTU PG UIF TQPOTPS 5IFTF TIBSJOH SVMFT TIPVME CF DPOUJOHFOU PO TQPOTPS SJTL UP BWPJE QSPDZDMJDBMJUZ XIJDI NBZ USJHHFS B CBOLSVQUDZ PS UIF EJTUSFTT PG UIF TQPOTPS "EEJUJPOBMMZ JNQPTJOH B DBQ PO UIF UFSNJOBM GVOEJOH SBUJP DBO BMMPX UIF QVSDIBTF PG EPXOTJEF JOTVSBODF BOE JNQSPWF UIF TBGFUZ PG UIF JOWFTUNFOU TUSBUFHZ GPS QMBO NFNCFST 4VSQMVT TIBSJOH $POáJDUT PG JOUFSFTUT CFUXFFO TIBSFIPMEFST BOE QFOTJPOFST DPVME CF NJUJHBUFE CZ HSBOUJOH QFOTJPOFST QBSUJBM BDDFTT UP UIF TVSQMVT TFF DPOEJUJPOBM JOEFYBUJPO SVMFT JO UIF /FUIFSMBOET

UIFSFCZ BMMPXJOH QMBO NFNCFST UP CFOFàU GSPN UIF JNQSPWFNFOU JO FYQFDUFE QFSGPSNBODF SFMBUFE UP NPSF BHHSFTTJWF JOWFTUNFOU TUSBUFHJFT " NPSF PQUJNBM EFTJHO PG QFOTJPO QMBOT XPVME SFMZ PO NPSF TVCUMF TVSQMVTTIBSJOH "O &%)&$3JTL *OTUJUVUF 1VCMJDBUJPO


.BZ



SVMFT XIJDI DPVME JODMVEF GPS FYBNQMF UIF VTF PG IZCSJE SFUJSFNFOU QMBOT BOEPS UIF VTF PG DPOUSJCVUJPO IPMJEBZT GPS %# QMBOT XIJDI XPVME BMMPX FRVJUZ IPMEFST UP SFEVDF UIF CVSEFO PG DPOUSJCVUJPOT XIJMF QSPUFDUJOH UIF JOUFSFTUT PG QFOTJPOFST

NJOJNVN GVOEJOH SBUJP MFWFM BCPWF BMMPXT TIBSFIPMEFST UP HFU TPNF MJNJUFE

BDDFTT UP UIF VQTJEF QFSGPSNBODF PG SJTLZ BTTFUT FOTVSFT UIBU QFOTJPOFST BSF OPU IVSU CZ UIF JOEVDFE JODSFBTF JO SJTL TFF .BSUFMMJOJ FU BM

4VSQMVT TIBSJOH SVMFT FTUBCMJTI XIBU IBQQFOT JO DBTF PG PWFSGVOEJOH EPFT JU HP UPXBSET JNQSPWJOH UIF CFOFàUT QBJE UP QFOTJPOFST BOE JG TP XIJDI HFOFSBUJPO

PS EPFT JU SFWFSU CBDL UP UIF TQPOTPS DPNQBOZ

3JTL TIBSJOH 4JODF UIF QSFNBUVSF XJUIESBXBM PG CFOFàUT BOE MVNQ TVN QBZPVUT JO &BTU "TJBhT %# TDIFNFT EP OPU MFBE UP QFOTJPO TBWJOHT CFJOH JOWFTUFE JO EFEJDBUFE QPTUSFUJSFNFOU TPMVUJPOT UIFTF TDIFNFT DBO CF DIBSBD UFSJTFE BT DSVEFMZ IZCSJE

3VMFT UIBU BSF UPP SJHJE BOE EP OPU UBLF JOUP BDDPVOU UIF VOEFSMZJOH TUBUF PG CPUI UIF TQPOTPS BOE UIF QFOTJPO QMBO CFZPOE GVOEJOH BSF TVCPQUJNBM .BSUFMMJOJ FU BM 5IFZ DPVME FOE VQ SFWFSUJOH DBTI UP B IFBMUIZ BOE XFMMàOBODFE TQPOTPS XIJMF MVDSBUJWF JOWFTUNFOU PQQPSUVOJUJFT JO UIF QMBO BSF GPSHPOF PS DPOWFSTFMZ UIFZ DPVME CF UVSOFE JOUP IJHIFS CFOFàUT UP QFOTJPOFST BU B UJNF XIFO UIF TQPOTPS JT JO OFFE PG GVOEJOH UP XFBUIFS B EJGàDVMU NPNFOU "O FGGFDUJWF XBZ UP BMJHO UIF JODFOUJWFT PG TIBSFIPMEFST BOE QFOTJPOFST XJUIPVU BOZ DPNQMFY BEKVTUNFOU UP UIF QFOTJPO QMBO TUSVDUVSF DPOTJTUT PG FOMBSHJOH UIF TFU PG BENJTTJCMF JOWFTUNFOU TUSBUFHJFT TP BT UP JODMVEF EZOBNJD SJTLDPOUSPMMFE TUSBUFHJFT TVDI BT DPOTUBOUQSPQPSUJPO QPSUGPMJP JOTVSBODF $11* TUSBUFHJFT PS UIFJS FYUFOTJPO JO B QFOTJPO NBOBHFNFOU DPOUFYU TPNFUJNFT SFGFSSFE UP BT DPOUJOHFOU JNNVOJTBUJPO TUSBUFHJFT PS EZOBNJD MJBCJMJUZESJWFO JOWFTUNFOU -%* TUSBUFHJFT 'VSUIFSNPSF JNQMFNFOUJOH SJTLDPOUSPMMFE TUSBUFHJFT 3$* BJNJOH BU JOTVSJOH B

"NPOHTU UIF TPMVUJPOT BEESFTTJOH UIF TIPSUDPNJOHT PG %# QMBOT USBOTJUJPOT BSF QPTTJCMF UPXBSET NPSF BEWBODFE IZCSJE QFOTJPOT XIJDI XPVME TUJMM PGGFS NFNCFS TFDVSJUZ UISPVHI B TQPOTPS HVBSBOUFF CVU JODPSQPSBUF TPNF EFHSFF PG SJTL TIBSJOH CFUXFFO UIF FNQMPZFFT BOE UIF TQPOTPS 'PS JOTUBODF DPOEJUJPOBM JOEFYBUJPO MJOLT QBSU PG UIF CFOFàUT UP UIF àOBODJBM QFSGPS NBODF PG UIF GVOE 4VDI TPMVUJPOT SFEVDF UIF WPMBUJMJUZ PG MJBCJMJUJFT BOE BSF UIFSFGPSF CFOFàDJBM UP UIF TQPOTPS XJUIPVU MFBWJOH JOEJWJEVBMT DPNQMFUFMZ FYQPTFE "DDPSEJOH UP 4FOEFS

NPWJOH UPXBSE IZCSJEJUZ XPVME QSPWJEF UIF áFYJCJMJUZ BOE UPPMT UP FOTVSF PDDVQBUJPOBM QFOTJPOT BSF TVTUBJOBCMF BOE DBO CF UBJMPSFE UP UIF TQFDJàD OFFET PG CPUI TQPOTPST BOE QMBO NFNCFST 5IF DPODFQUVBM GSBNFXPSL XPVME OPU QSFDMVEF UIF VTF PG QSPQFS JOUFHSBUFE "-. UFDIOJRVFT CVU NVDI UP UIF DPOUSBSZ FOBCMF JU



.BZ




" EFHSFF PG TIBSJOH PG NFNCFSTh MPOHFWJUZ SJTL XPVME BMTP JNQSPWF UIF BUUSBDUJWFOFTT PG %# QMBOT 0QUJPOT JODMVEF CVZJOT CVZ PVUT PS MPOHFWJUZ TXBQT GPS %# QFOTJPO QMBOT " CVZJO XPVME FOUBJM BO JOTVSBODF QPMJDZ IFME CZ UIF USVTUFF XIJMF B CVZPVU XPVME CF IFME CZ UIF QMBO NFNCFS 'VMM CVZPVUT BSF RVJUF DPTUMZ BT UIFZ FOUBJM UIF JNNFEJBUF QBZNFOU PG BOZ QMBO TIPSUGBMM "T B DPOTFRVFODF QBSUJBM JOTVSBODF JT UIFSFGPSF NVDI NPSF DPNNPO 1BSUJBM CVZPVUT BOE MPOHFWJUZ TXBQT BJN UP IFEHF POMZ QBSU PG UIF MJBCJMJUJFT BOE BSF JODSFBTJOHMZ GSFRVFOU #JGàT BOE #MBLF 0G DPVSTF NBOEBUPSZ BOOVJUJTBUJPO BMPOH XJUI UIF FMJNJOBUJPO PG QSFNBUVSF XJUIESBXBMT XPVME IFMQ TFU UIF MJBCJMJUZ EVSBUJPO BOE IBWF DMFBSFS JOWFTUNFOU PCKFDUJWFT SBUIFS UIBO LFFQJOH B MBSHF MJRVJEJUZ SFTFSWF 4VCTUBOUJBM QSPHSFTT IBT CFFO BDIJFWFE JO SFEVDJOH QSFNBUVSF XJUIESBXBMT FTQFDJBMMZ JO ,PSFB XIFSF JO UIF QBTU TVDI XJUIESBXBMT PDDVSSFE XJUI FWFSZ KPC DIBOHF

B SPMF JO TNPPUIJOH UIF USBOTJUJPO UP EFàOFEDPOUSJCVUJPO TDIFNFT SFWJFXFE JO TFDUJPO

XIJDI DBO BMTP PGGFS MPOHUFSN JOWFTUNFOU TPMVUJPOT 8IJMF %# TDIFNFT XJMM JO BMM MJLFMJIPPE DPOUJOVF UP QBZ MVNQ TVNT BOE OPU PGGFS QPTU SFUJSFNFOU JODPNF UIFTF MVNQ TVNT BSF JODSFBTJOHMZ CFJOH DIBOOFMMFE JOUP EFàOFEDPOUSJCVUJPO %$ BDDPVOUT *O ,PSFB GPS FYBNQMF QSFNBUVSF XJUIESBXBMT NVTU OPX CF EFQPTJUFE JOUP JOEJWJEVBM SFUJSFNFOU BDDPVOUT *3"T UP FBSO CBTJD JOUFSFTU 1IBOH 5PXFST 8BUTPO *O +BQBO NPWJOH B %# QFOTJPO UP B %$ GVOE IBT CFFO QPTTJCMF TJODF WJB B MVNQ TVN 5BLBZBNB D *O )POH ,POHhT 0340 %# QMBOT BGUFS WFTUFE CFOFàUT BSF QSPUFDUFE BOE USBOTGFSSFE JOUP BO .1' TDIFNF VQPO KPC DIBOHF *OEFFE B USBOTJUJPO UP %$ QSPWJTJPO JO &BTU "TJB JT TVQQPSUFE CZ UIF EF GBDUP CFOFàU QPSUBCJMJUZ BMMPXFE CZ MVNQ TVNT

$PODMVTJPOT )PXFWFS JU JT OPU DMFBS JG NBOEBUPSZ BOOVJUJTBUJPO XPVME JNQSPWF WPMVOUBSZ FOSPMNFOU BOE TVCTFRVFOUMZ BTTFU BDDVNVMBUJPO JG UIF QMBOT UIFNTFMWFT BSF OPU NBEF NBOEBUPSZ "MTP JO UIF DPOUFYU PG DPOUJOVPVTMZ MPX JOUFSFTU SBUFT TFF TFDUJPO UIF DPTU PG BOOVJUJTBUJPO NBZ SFNBJO QSPIJCJUJWF 5IF USBOTJUJPO UP %$ 'JOBMMZ JO UIF BCTFODF PG HSFBUFS SJTL TIBSJOH XJUI TQPOTPST DVSSFOU %# QMBOT DBO QMBZ

*O UIJT TFDUJPO XF IBWF IJHIMJHIUFE UIF MJOL CFUXFFO UIF USBEJUJPOBM SFUJSFNFOU BMMPXBODF TZTUFN XIJDI IBT CFFO QSFWBMFOU JO &BTU "TJBhT DPSQPSBUF DVMUVSF GPS EFDBEFT BOE UIF FYJTUFODF BOE DIBSBDUFSJTUJDT PG DPSQPSBUF PS PDDVQBUJPOBM EFàOFECFOFàU QFOTJPO GVOET 1SJWBUF %# QMBOT IBWF FYJTUFE JO UIF SFHJPO TJODF UIF T JO UIF DBTF PG +BQBO PS IBWF CFFO JOUSPEVDFE BT MBUF BT JO UIF DBTF PG ,PSFB )PXFWFS FWFO XIFO %# QMBOT IBWF "O &%)&$3JTL *OTUJUVUF 1VCMJDBUJPO


.BZ



FYJTUFE GPS EFDBEFT UIFZ IBWF OPU CFDPNF B EPNJOBOU QBSU PG UIF QFOTJPO TZTUFN VOMJLF JO PUIFS KVSJTEJDUJPOT FH 64 5IFZ BMTP HFOFSBMMZ SFTUSBJO GSPN QSPWJEJOH BOZ QFOTJPO JODPNF UP SFUJSFFT CVU JOTUFBE QBZ PVU MVNQ TVNT CFDBVTF UIFZ BSF FJUIFS UIF QSFGFSSFE DIPJDF PS UIF POMZ PQUJPO BWBJMBCMF 5IVT UIF CFOFàUT QBJE CZ QSJWBUF %# QMBOT JO &BTU "TJB BSF POMZ zEFàOFEh PS HVBSBOUFFE JOTPGBS BT UIFZ SFQSFTFOU B DFSUBJO NVMUJQMF PG QBTU XBHFT BDDPSEJOH UP UIF SFMFWBOU GPSNVMB BWBJMBCMF XIFO QMBO NFNCFST SFUJSF PS MFBWF UIFJS QPTJUJPO 1PTUSFUJSFNFOU TPMVUJPOT JODMVEJOH UIF NBOBHFNFOU PG MPOHFWJUZ BOE JOáBUJPO SJTLT SFNBJO CFZPOE UIF TDPQF PG UIFTF QMBOT TP GBS XJUI B GFX MJNJUFE FYDFQUJPOT "T B GPSN PG EFGFSSFE DPNQFOTBUJPO &BTU "TJBhT QSJWBUF %# QMBOT IBWF TFFO UIFJS BTTFUT HSPX JOJUJBMMZ CFDBVTF UIFZ BSF UZQJDBMMZ QSFGFSSFE CZ UIF MBSHF DPOHMPNFSBUFT UIBU NBLF VQ UIF DPSF PG &BTU "TJB JOEVTUSJBM GBCSJD )PXFWFS QSJWBUF %# BTTFU HSPXUI UZQJDBMMZ UBJMFE PGG PODF MBSHF FNQMPZFST IBE BEPQUFE UIFN VOMFTT UIFZ BSF NBEF NBOEBUPSZ *O &BTU "TJB %# QMBOT BMTP TUPQQFE HSPXJOH CFDBVTF OFX MFHJTMBUJPO XBT JOUSPEVDFE UP QSPNPUF %$ QMBOT 5IVT %# BTTFUT IBWF OPU HSPXO GPS NBOZ ZFBST JO +BQBO CVU IBWF POMZ CFFO USBOT GFSSFE GSPN POF TDIFNF UP UIF OFYU BT SFGPSNT BJNFE BU JNQSPWJOH UIF HPWFSOBODF BOE QFSGPSNBODF CVU BMTP UIF HSPXUI PG UIF

TFDUPS TUJMM DPOUJOVF UP VOGPME 5IFZ SFNBJO WPMVOUBSZ TDIFNFT POMZ *O )POH ,POH XIFSF %# QMBOT BSF BMTP WPMVOUBSZ NFNCFSTIJQ TUPQQFE HSPXJOH EFTQJUF TVDI QMBOT SFNBJOJOH PQFO UP OFX NFNCFST CFDBVTF %$ QFOTJPOT CFDBNF NBJOTUSFBN PGGFSJOH GVMM BOE JNNFEJBUF WFTUJOH XIJDI JT OPU UIF DBTF XJUI %# QMBOT $VNVMBUJWF BTTFU HSPXUI JT OPX MJNJUFE BOE NPTUMZ ESJWFO CZ JOWFTUNFOU QFSGPSNBODF *O %# BTTFUT IBE SFUVSOFE UP UIFJS MFWFM *O ,PSFB XIFSF DPSQPSBUF QMBOT IBWF POMZ CFDPNF NBOEBUPSZ TJODF %# BTTFU BSF TUJMM HSPXJOH SBUIFS GBTU CVU TVDI QMBOT IBWF POMZ CFFO JOUSPEVDFE JO BOE JU SFNBJOT UP CF TFFO XIFUIFS UIJT USFOE DBO DPOUJOVF PODF MBSHF DPSQPSBUJPOT IBWF BEPQUFE UIFN *O PG QFSNBOFOU FNQMPZFFT JO ,PSFB XPSLFE GPS B MBSHF àSN PG NPSF UIBO FNQMPZFFT

FYDMVEJOH UIF QVCMJD TFDUPS *OEFFE XIJMF QSJWBUF QFOTJPOT BSF OPX NBOEBUPSZ FNQMPZFST IBWF B DIPJDF CFUXFFO %# BOE %$ QMBOT 0VS SFWJFX PG DPSQPSBUF BOE PDDVQBUJPOBM %# QMBOT JO &BTU "TJB ZJFMET B OVNCFS PG TBMJFOU QPJOUT XIJDI XF TVNNBSJTF CFMPX 4J[F BOE TJHOJàDBODF !

!

$PSQPSBUF BOE PDDVQBUJPOBM %# QMBOT POMZ FYJTU JO +BQBO )POH ,POH BOE ,PSFB XIFSF UIFJS DVNVMBUJWF BTTFUT SFQSF TFOUFE BOE PG (%1 SFTQFD UJWFMZ JO 5IFTF QMBOT IBWF NPTUMZ SFNBJOFE WPMVOUBSZ BOE IBWF UIVT GBJMFE UP HSPX



.BZ



!

!

PO B TDBMF DPNNFOTVSBUF XJUI PUIFS TVQQMFNFOUBSZ QFOTJPO TZTUFNT JO UIF SFTU PG UIF XPSME 0OMZ ,PSFB IBT JOUSP EVDFE NBOEBUPSZ DPSQPSBUF QFOTJPOT JO CVU XJUI B DIPJDF CFUXFFO %# BOE %$ TDIFNFT 8IJMF UIFZ SFQSFTFOU BO BTTFU QPPM PG MJNJUFE TJ[F QSJWBUF %# GVOET SFNBJO UIF TFDPOE MBSHFTU QFOTJPO BTTFU QPPM JO &BTU "TJB BGUFS SFTFSWF GVOET XIJDI BSF NVDI MBSHFS 8JUI UIF FYDFQUJPO PG ,PSFB XIJDI JOUSP EVDFE %# QMBOT SFDFOUMZ BTTFU HSPXUI IBT UFOEFE UP UBJM PGG PODF B DFSUBJO MFWFM PG DPWFSBHF IBE CFFO BDIJFWFE

'VOEJOH BOE CFOFàUT !

!

!

!

*O +BQBO BOE ,PSFB

%# QMBOT BSF PG B DPOUSBDUVBM OBUVSF JF UIFZ EP OPU FYJTU BT BO JOEFQFOEFOU GVOE CVU BSF FGGFDUJWFMZ JOWFTUNFOU NBOEBUFT HJWFO UP BTTFU NBOBHFST "DUVBM DPSQPSBUF QFOTJPO GVOET FYJTU JO )POH ,POH BOE UP B MFTTFS FYUFOU JO +BQBO $POUBDUVBM QMBOT BMTP FYJTU JO )POH ,POH 'VOEJOH JT NPTUMZ QSPWJEFE CZ FNQMPZFST BOE UIF DPNCJOBUJPO PG B NBOEBUPSZ NJOJNVN BDDSVBM XJUI UIF BCTFODF PG B NJOJNVN DPOUSJCVUJPO DBO MFBE UP VOGVOEFE MJBCJMJUJFT 7FTUJOH SVMFT JO &BTU "TJB BSF PGUFO VODMFBS BOE OPU TUBUVUPSZ BMUIPVHI GVMM WFTUJOH JO +BQBOFTF BOE ,PSFBO %# QMBOT BGUFS UISFF ZFBST JT DPNNPO QSBDUJDF 3FDFOU SFGPSNT JO )POH ,POH IBWF JNQSPWFE CFOFàU SJHIUT WFTUJOH 1SJWBUF %# QMBOT EP OPU OFDFTTBSJMZ QSPWJEF B QFOTJPO JF BO BOOVJUJTFE JODPNF TUSFBN *OTUFBE NPTU TVDI

!

TDIFNFT QBZ B MVNQ TVN *O +BQBO BOOVJUJFT BSF BWBJMBCMF GPS JOEJWJEVBMT XJUI NPSF UIBO ZFBST PG DPOUSJCVUJPOT CVU UIFZ BSF OPU QSFGFSSFE *O ,PSFB BOOVJUJFT IBWF àYFE UFSN PG àWF ZFBST BOE UIFZ BSF OPU BWBJMBCMF FMTFXIFSF JO %# QMBOT JO UIF SFHJPO 5IVT MPOHFWJUZ SJTL JT NPTUMZ JSSFMFWBOU GPS TQPOTPST BOE UIF FYUFOU UP XIJDI JOEFY BUJPO JNQBDUT MJBCJMJUJFT JT NPSF MJNJUFE UIBO JO UIF DBTF PG MJGFMPOH JOEFYFE QFOTJPOT DPNNPO JO PUIFS %# TDIFNFT HMPCBMMZ

0CKFDUJWFT BOE DPOTUSBJOUT !

!

!

!

!

4JODF QSJWBUF %# QMBOT UZQJDBMMZ QBZ PVU MVNQ TVNT BU UIF EBUF PG SFUJSFNFOU PS EFQBSUVSF PG FNQMPZFFT UIFZ IBWF WFSZ MPPTFMZ EFàOFE MPOHUFSN JOWFTUNFOU PCKFDUJWFT UZQJDBMMZ GPDVTFE PO DBQJUBM QSFTFSWBUJPO 5IF OFDFTTJUZ UP QBZ B MVNQ TVN XIFO BO FNQMPZFF MFBWFT B QPTJUJPO BMTP GPSDFT TVDI QMBOT UP IPME MBSHFS BNPVOUT PG DBTI PS WFSZ MJRVJE BOE MPXSJTL TFDVSJUJFT UP UIF EFUSJNFOU PG ZJFMET *OWFTUNFOU SFTUSJDUJPOT NJOJNJTF FYQPTVSF UP MJTUFE FRVJUJFT FH ,PSFB

PS CBO VOMJTUFE JOWFTUNFOUT FH )POH ,POH *O +BQBO %# QMBOT IBWF IJHIFS BMMPDB UJPOT UP FRVJUJFT BCPWF

PUIFSXJTF QSJWBUF %# QMBOT JO UIF SFTU PG &BTU "TJB BSF JOWFTUFE JO MPXZJFMEJOH BTTFUT ,PSFBO %# QMBOT IPME NPSF UIBO PG UIFJS BTTFUT JO MPXZJFMEJOH MJRVJE JOTUSV NFOUT JODMVEJOH NPSF UIBO JO DBTI *O FGGFDU UIF GPDVT PO QBZJOH MVNQ TVNT MFBET UP B WJSUVBM BCBOEPONFOU PG UIF "O &%)&$3JTL *OTUJUVUF 1VCMJDBUJPO


.BZ



!

JOWFTUNFOU NBOBHFNFOU RVFTUJPO UIBU TIPVME CF BEESFTTFE JO UIF DPOUFYU PG DPSQPSBUF %# GVOET BOE DSFBUFT QPUFO UJBMMZ TVCTUBOUJBM PQQPSUVOJUZ DPTUT GPS TQPOTPST 5IFSF JT TFMEPN FWJEFODF PG "-. BOE GVOEJOH BOE BDDSVBM SVMFT DSFBUJOH FOPVHI áFYJCJMJUZ UP NJOJNJTF FNQMPZFS DPOUSJCVUJPOT JO UIF TIPSUUFSN 3FRVJSFE GVOEJOH MFWFMT BSF UZQJDBMMZ JO +BQBO BOE )POH ,POH BOE JO ,PSFB CVU NPOJUPSJOH BOE JNQMFNFO UBUJPO BSF VOEFSTUPPE UP CF MJNJUFE BOE TQPOTPS BDUJPO OFHPUJBCMF "T B SFTVMU VOEFSGVOEJOH JT XJEFTQSFBE CVU WBSJFT DPOTJEFSBCMZ GSPN PDDBTJPOBM JO )POH ,POH %# QMBOT UP RVBTJTZTUFNBUJD JO ,PSFB PS +BQBO

!

!

*NQSPWFNFOUT GPS QMBO TQPOTPST !

!

5IF QSPCMFN GBDFE CZ %# GVOET JO &BTU "TJB JT SBUIFS TJNQMFS UIBO GPS NPTU %# TDIFNFT JO UIF SFTU PG UIF XPSME TJODF UIFZ BSF NPTUMZ OPU FYQPTFE UP MPOHFWJUZ SJTL BOE POMZ FYQPTFE UP JOEFYBUJPO SJTLT VOUJM UIF SFUJSFNFOU PS EFQBSUVSF EBUF PG FNQMPZFFT &BTU "TJBhT DPSQPSBUF %# QMBOT OFFE UP JNQSPWF UIFJS GVOEJOH MFWFM BOE WPMBUJMJUZ JO UIF DPOUFYU PG NPSF TUSJOHFOU SFHVMBUJPO 5IFZ BMTP OFFE UP NJOJNJTF EFNBOET PO UIF TQPOTPS TJODF IJHIFS DPOUSJCVUJPOT NBZ OPU CF FDPOPNJDBMMZ GFBTJCMF BOE TIPSUGBMM SJTL JT CPSOF CZ QMBO TQPOTPST *OEFFE TIPSUUFSN GVOEJOH SBUJP DPOTUSBJOUT XPVME OPU CF DPTUMZ GPS QFOTJPO GVOET JG UIFZ JNQMFNFOUFE SJTL NBOBHFNFOU TUSBUFHJFT UIBU BSF PQUJNBM HJWFO TVDI DPOTUSBJOUT

" MJBCJMJUZIFEHJOH QPSUGPMJP IFMQT NFFU HVBSBOUFFT BOE BMMPXT GPS DBQJUBM QSFTFS WBUJPO XIJMF GSFFJOH VQ B SJTL CVEHFU UP JNQSPWF QSPà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

*NQSPWFNFOUT GPS QMBO NFNCFST !

!

5IF BCTFODF PG QPTUSFUJSFNFOU JODPNF QSPWJTJPO JO UIF NBKPSJUZ PG &BTU "TJBhT QSJWBUF %# QMBOT MFBWFT UIF JTTVF PG MPOHFWJUZ SJTL BOE BDIJFWJOH B HJWFO MFWFM PG QPTUSFUJSFNFOU JODPNF FOUJSFMZ UP JOEJWJEVBMT " HSFBUFS MFWFM PG SJTL TIBSJOH XJUI TQPOTPST EVSJOH UIF QPTUSFUJSFNFOU QIBTF XPVME PCWJPVTMZ CF CFOFàDJBM UP QMBO NFNCFST )PXFWFS HJWFO UIF IJTUPSZ PG TVDI QMBOT JO UIF SFHJPO TVDI JODSFBTFE SJTL TIBSJOH TFFNT VOMJLFMZ



.BZ



!


VOMFTT TPNF GPSN PG BOOVJUJTBUJPO JT NBEF NBOEBUPSZ CZ UIF SFHVMBUPS 4UJMM PQUJPOT FYJTU UP JNQSPWF SJTL TIBSJOH 5IFTF JODMVEF CVZJOT CVZPVUT PS MPOHFWJUZ TXBQT GPS %# QFOTJPO QMBOT " CVZJO XPVME FOUBJM BO JOTVSBODF QPMJDZ IFME CZ UIF USVTUFF XIJMF B CVZPVU XPVME CF IFME CZ UIF QMBO NFNCFS 'VMM CVZPVUT BSF RVJUF DPTUMZ BT UIFZ FOUBJM UIF JNNFEJBUF QBZNFOU PG BOZ QMBO TIPSUGBMM "T B DPOTFRVFODF QBSUJBM JOTVSBODF JT NVDI NPSF DPNNPO

*O UIF BCTFODF PG JNQSPWFE SJTL TIBSJOH CFUXFFO QMBO TQPOTPST BOE NFNCFS EVSJOH UIF QPTUSFUJSFNFOU QIBTF JOEJWJEVBMT XIP SFDFJWF MVNQ TVN CFOFàUT NVTU NBOBHF UIFJS PXO SFUJSFNFOU TBWJOHT UP àOBODF UIF TIBSF PG UIFJS MJGFDZDMF EFàDJU UIBU JT OPU DPWFSFE CZ QVCMJD QFOTJPOT *O UIJT DPOUFYU %# MVNQ TVNT DBO CF VTFE UP BDDFTT %$ TPMVUJPOT XIFO JOEJWJEVBMT DIBOHF QPTJUJPO PS SFUJSF XIJDI XF EJTDVTT OFYU

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àOFE &BTU "TJBO DPSQPSBUF DVMUVSF 5IF SPMF PG QFOTJPOT BT B TPVSDF PG EFGFSSFE QBZ UP SFXBSE MPZBM FNQMPZFFT BOE QSPWJEF MPOHUFSN JODFOUJWFT UP NBOBHFST IBT MPOH CFFO SFDPHOJTFE JO QSBDUJDF BOE JO UIF BDBEFNJD MJUFSBUVSF #MBLF $PSQPSBUF QFOTJPOT JO &BTU "TJB FTTFOUJBMMZ DPOUJOVF UP QMBZ UIJT SPMF CVU OPU UIBU PG QSPWJEJOH SFUJSFNFOU JODPNF UP NFNCFST "O &%)&$3JTL *OTUJUVUF 1VCMJDBUJPO


.BZ





.BZ




.BZ



5IJT TFDUJPO EJTDVTTFT &BTU "TJBhT EFàOFE DPOUSJCVUJPO %$ QMBOT %$ QMBOT IBWF TP GBS GBJMFE UP CFDPNF B DSFEJCMF BMUFSOBUJWF UP EFàOFECFOFàU TDIFNFT CVU XF BSHVF UIBU UIFZ BSF B OFDFTTBSZ FMFNFOU GPS UIF TVTUBJOBCJMJUZ PG QFOTJPO TZTUFNT 8F SFWJFX UIF SFBTPOT XIZ UIF TIJGU UPXBSET %$ PCTFSWFE FMTFXIFSF IBT CFFO BNCJHVPVT BU CFTU JO &BTU "TJB BOE XIBU JNQSPWFNFOUT BSF OFFEFE UP BUUSBDU TVCTUBOUJBM SFUJSFNFOU TBWJOHT UPXBSET %$ QMBOT UIBU QSPWJEF WJBCMF MPOHUFSN TPMVUJPOT UP GVUVSF QFOTJPOFST JO &BTU "TJB %FàOFEDPOUSJCVUJPO GVOET BSF B TFFNJOHMZ TJNQMF GPSN PG SFUJSFNFOU GVOE BTTFUT BSF DPOUSJCVUFE JOUP UIF GVOE BOE UIFO JOWFTUFE VOUJM UIF SFUJSFNFOU PG UIF QMBO NFNCFS BU XIJDI UJNF UIFJS BDDSVFE WBMVF JT USBOT GFSSFE UP UIF QFOTJPOFS UZQJDBMMZ FJUIFS BT B MVNQ TVN QBZNFOU PS BO BOOVJUZ %$ QMBOT DBO CF EFQFOEFOU PO BO FNQMPZFShT DPOUSJCVUJPOT UIF QFOTJPOFShT PS B NJY PG CPUI *O BOZ DBTF BMM PG UIF JOWFTUNFOU SJTL JO QVSF %$ TDIFNFT JT CPSOF CZ UIF QMBO NFNCFS BOE OPOF CZ UIF FNQMPZFS 3JTL TIBSJOH BOE HVBSBOUFFT GPS UIF QMBO NFNCFS FYJTU IPXFWFS JO IZCSJE TDIFNFT *O &BTU "TJB JODFOUJWFT UP DIPPTF %$ QFOTJPO QMBOT PWFS PUIFS JOEJWJEVBM TBWJOHT QSPEVDUT BSF MJNJUFE 4P GBS FNQMPZFST IBWF CFFO NBLJOH UIF NBKPSJUZ PG DPOUSJCVUJPOT UP FYJTUJOH %$ QMBOT PGUFO JO UIF BCTFODF PG TQFDJàD UBY CSFBLT NBUDIFE DPOUSJCVUJPOT PS CFIBWJPVSBM JODFOUJWFT 1BSUMZ BT B DPOTF RVFODF BTTFUT VOEFS NBOBHFNFOU SFNBJO NJOJNBM FWFO XIFO DPOUSPMMJOH GPS UIF MPX DPWFSBHF

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àSTU SFWJFX JO TFDUJPO UIF MBOETDBQF PG %$ TDIFNFT JO UIF SFHJPO 8F UIFO GPDVT PO UIF LFZ JTTVFT PG UIPTF QMBOT BOE IPX UIFZ DPVME CF SFNFEJFE *O TFDUJPO XF EJTDVTT IPX UIF SFHVMBUPSZ GSBNFXPSL BOE JODFOUJWFT JNQBDUT UIF BQQFBM PG %$ GVOET 5IFO TFDUJPO EJTDVTTFT JOWFTUNFOU TUSBUFHJFT GPS %$ QMBO NFNCFST OPUBCMZ UIF VTF PG MJGFDZDMF BOE "-. TPMVUJPOT BT XFMM BT QBDLBHJOH BOE QPTUSFUJSFNFOU TPMVUJPOT JO UIF DPOUFYU



.BZ



PG &BTU "TJB 4FDUJPO TVNNBSJTFT BOE DPODMVEFT

5IF OFFE GPS %$ 'VOET JO &BTU "TJB "T MPOHUFSN TIJGUT OPUBCMZ EFNPHSBQIJD NBLF QVSF %# TDIFNFT VOUFOBCMF JU JT JOEJTQFOTBCMF UIBU %$ GVOE JOWFTUNFOUT BSF JNNFEJBUFMZ SBNQFE VQ &BTU "TJB JO UIJT SFTQFDU JT JO OFFE PG B SBQJE DBUDIVQ 5IJT TFDUJPO FYBNJOFT UIF DVSSFOU MBOETDBQF PG %$ GVOET JO UIF SFHJPO 5IF DVSSFOU MBOETDBQF %$ GVOET JO &BTU "TJB BSF TVQQMFNFOUBSZ QFOTJPO TDIFNFT FYDFQU JO )POH ,POH XIFSF UIFZ DPOTUJUVUF UIF NBJO TZTUFN "DDVNVMBUJPO WBSJFT DPOTJEFSBCMZ EFQFOEJOH PO UIF NBOEBUPSZ PS WPMVOUBSZ OBUVSF PG QMBOT 5BCMF XIJDI TVNNBSJTFT LFZ GBDUT GPS FYJTUJOH %$ TDIFNFT TIPXT UIBU NPTU %$ QMBOT BSF WPMVOUBSZ BOE IBWF POMZ CFFO DSFBUFE BCPVU B EFDBEF BHP 'JHVSF TIPXT UIF TJ[F PG %$ BTTFUT SFMBUJWF UP (%1 BOE DPOàSNT UIBU UIFZ SFNBJO TNBMM 5BCMF BOE àHVSF JMMVTUSBUF UIF EJGGFSFOU UZQFT PG %$ QMBOT BWBJMBCMF JO &BTU "TJB %$ QMBOT FYJTU VOEFS QVCMJD BOE QSJWBUF TZTUFNT BSF NPTUMZ GVOEFE BT PQQPTFE UP OPUJPOBM %$ QMBOT XIJDI BSF OPU GVOEFE BOE QBZ B HJWFO SBUF PG SFUVSO BOE DPOUSBDUVBM JF UIFSF JT OP MFHBMMZ JOEFQFOEFOU GVOE BOE NBOBHFNFOU JT DPNQMFUFMZ EFMFHBUFE JO UIFJS NBKPSJUZ

.BOEBUPSZ %$ QSPWJTJPO FYJTUT JO 5BJXBO JO UIF GPSN PG UIF -1' BOE JO )POH ,POH JO UIF GPSN PG UIF .1'T 5BJXBOhT -1' BOE )POH ,POHhT .1'T CPUI FOKPZ B SFMBUJWFMZ IJHIFS MFWFM PG FOSPMNFOU BOE PG BDDVNV MBUJPO DPNQBSFE UP UIF SFTU PG UIF SFHJPO %$ BSSBOHFNFOUT JO +BQBO BOE $IJOB BSF WPMVOUBSZ BOE QSJNBSJMZ DPSQPSBUFCBTFE IBWF OVNFSPVT NFNCFST CVU GFX BTTFUT BOE TMPX HSPXUI ,PSFB IBT NBEF DPSQPSBUF QFOTJPOT NBOEBUPSZ JO CVU FNQMPZFST TUJMM IBWF UIF DIPJDF PG %# PS %$ TDIFNFT BOE TP GBS %$ TDIFNFT IBWF UFOEFE UP CF UIF TFDPOE DIPJDF 7PMVOUBSZ JOEJWJEVBM SFUJSFNFOU BDDPVOUT *3"T IBWF BMTP FYJTUFE TJODF BOE JOEJWJEVBM SFUJSFNFOU QFOTJPOT *31T TJODF 5IFTF TDIFNFT IBWF WBSZJOH EFHSFFT PG IZCSJEJUZ XIJDI XF EJTDVTT OFYU 5IF TIJGU UP %$ TDIFNFT JO &BTU "TJB 8IJMF NPTU DPVOUSJFT XPSMEXJEF TUJMM SFMZ QSJNBSJMZ PO EFàOFECFOFàU UIFSF JT B USFOE UPXBSET %$ BOE IZCSJE QMBOT CFJOH JODSFBTJOHMZ VTFE BT UIF NBJO GPSN PG SFUJSFNFOU TBWJOH BOE BXBZ GSPN UIF IJTUPSJDBMMZ QPQVMBS %# QMBOT 5IJT USFOE JT BDUVBMMZ OPUIJOH OFX BMNPTU ZFBST BHP (VTUNBO BOE 4UFJONFJFS

XFSF BMSFBEZ UBMLJOH PG B iTUBNQFEF UPXBSET EFàOFEDPOUSJCVUJPO QFOTJPO QMBOTu BMSFBEZ JO QBSU EVF UP UIF DIBOHJOH SFHVMBUPSZ FOWJSPONFOU GPS EFàOFECFOFàU



.BZ



'JHVSF %$ BTTFUT BT B QFSDFOUBHF PG (%1 JO &BTU "TJB

Hong Kong

29%

Taiwan

5%

China

2%

Japan

1%

Korea

1%

0%

5%

10%

15%

20%

25%

30%

35%

4PVSDF "OOVBM SFQPSUT /PUF 'JHVSFT JODMVEF JOEJWJEVBM BOE DPSQPSBUF %$ QMBOT

'JHVSF 1SPQPSUJPO PG %$ BTTFUT JOWFTUFE CZ QMBO UZQF

Japan

95%

Korea

5%

65%

China

35%

46%

54%

Hong Kong

71%

29%

Taiwan

100% 0%

10%

20%

Mandatory DC Plans

30%

40%

50%

Voluntary Corporate DC Plans

60%

70%

80%

90%

100%

Voluntary Individual DC Plans




.BZ



5BCMF %$ TDIFNFT JO &BTU "TJB

2005

2001

2001

- Fully funded DC pension plans available to retirees in the post-retirement stage, or employees Private in the accumulation stage - Set up as contracts with financial service providers - Fully funded DC pension plans available to retirees in the post-retirement stage, or employees Private in the accumulation stage - Retirees and those changing jobs are obliged to set up an IRP and move their assets from corporate plans - Set up as contracts with financial service providers

- Fully funded corporate DC pension plans - Set up as contracts with financial service providers Private

- Fully funded individual DC pension plans offered by employers - Set up as contracts with financial service providers

Private

- Fully funded corporate DC pension plans - Set up as contracts with financial service providers Private

No

Yes

No

Yes

No

No

Private school teachers

Urban workers

Self-employed, unemployed and retired individuals Self-employed, unemployed and retired individuals




Eligibility

2005

Private

Yes

Employed workers except private teachers


2011

Fully funded corporate DC plans set up as contracts with financial service providers

Private

Yes

Full-time employees and selfemployed aged 18-65

Brief Description

Scheme Japan Corporate DC Corporate DC Schemes Individual DC Individual DC Schemes

2004

Individual retirement savings accounts for private school teachers

Public

Yes

Created

Korea Corporate DC Corporate DC Plans

2010

- Fully funded supplementary DC plans for private sector - Managed collectively by the Bureau of Labour Insurance (BLI)

Private

Plan dependent

China Corporate DC Enterprise Annuities (EAs) Taiwan Public DC Private Teachers Pension Fund (PTPF) Labour Pension Fund (LPF)

Individual DC Individual Retirement Accounts (IRAs) Individual Retirement Pensions (IRPs)

2005

- Fully funded occupational DC plans set up as contracts with financial service providers Supervised by the Mandatory Provident Fund Schemes Authority (MPFA)

No

.BZ


- Fully funded corporate DC plans set up as contracts with financial service providers - Some are Private supervised by the Mandatory Provident Fund Schemes Authority (MPFA)

Hong Kong Occupational DC Mandatory Provident Fund (MPF) 2000 Schemes Corporate DC Occupational Retirement 1993 Schemes Ordinance (ORSO) DC Schemes

4PVSDF TFF UBCMF




5BCMF %$ QMBO UZQFT JO &BTU "TJB

Country

Plan

Mandatory

Corporate

Individual

Japan Japan

Corporate DC Plans

◌

●

◌

◌

●

◌

●

Individual DC Plans

◌

●

●

◌

●

◌

●

Japan

Cash-Balance Plans (CBPs)

◌

●

◌

●

●

◌

●

Korea

Corporate DC Plans

●

●

◌

◌

●

◌

●

Korea

IRAs & IRPs

◌

●

●

◌

●

◌

●

Taiwan

LPF

●

●

◌

●

●

●

◌

China

2

USI Individual Accounts

●

◌

●

◌

◌

●

◌

China

RSI Individual Accounts2

◌

◌

●

◌

◌

●

◌

China

EAs

◌

●

◌

◌

●

◌

●

Hong Kong

MPFs

●

●

◌

◌

●

◌

●

Hong Kong

ORSO DC Plans

◌

●

◌

◌

●

◌

●

1

Hybrid Funded Public

Contractual

1 - Corporate pension plans are mandatory in Korea for newly formed companies, but employers still have a choice between DB and DC plans. 2 - Chinese individual accounts were designed to be fully funded financial DC arrangements, but their present status does not reflect that.

4JHOT PG B TIJGU UP %$ QSPWJTJPO JO &BTU "TJB FYJTU CVU BSF TUJMM BNCJHVPVT %$ QFOTJPO TDIFNFT BQQFBSFE JO UIF SFHJPO JO UIF MBUF T BOE FBSMZ T CVU IBWF CFFO IFME CBDL CZ UIF QSJPSJUJTBUJPO PG QVCMJD QFOTJPO SFGPSNT UBY JOFGàDJFODJFT DPOUSJ CVUJPO MJNJUT B HFOFSBM MBDL PG USVTU BOE QSFGFSFODFT GPS MVNQ TVNT XJUI B %# HVBSBOUFF /FWFSUIFMFTT TUBSUJOH GSPN B MPX CBTF NFNCFSTIJQ BOE BTTFU HSPXUI IBT CFFO TJHOJàDBOU BT àHVSFT BOE JMMVTUSBUF *O 5BJXBO BMM OFX BOE KPCTXJUDIJOH NFNCFST XJMM KPJO UIF -1' BOE OPU JUT QSFEFDFTTPS UIF -3' )FODF %$ BTTFUT DBO CF FYQFDUFE UP HSPX DPOTJEFSBCMZ JO UIF OFYU DPVQMF PG EFDBEFT "TTFU BOE NFNCFSTIJQ HSPXUI JO +BQBO JT NPSF BSUJàDJBM *U SFTVMUT GSPN UIF DMPTJOH PG B OVNCFS PG DPSQPSBUF %# TDIFNFT FH 5211T

UIF BTTFUT BOE NFNCFST PG XIJDI BSF CFJOH QPVSFE JO QBSU JOUP UIF OFX %$

GSBNFXPSL 5IJT LJOE PG HSPXUI UBJMT PGG SBQJEMZ 6SBUB

GPS FYBNQMF QPJOUT UP B EFDSFBTF JO +BQBOFTF DPSQPSBUF QMBO DPWFSBHF $IJOFTF FOUSFQSJTF BOOVJUJFT &"T

BMCFJU WPMVOUBSZ IBWF BDDVNVMBUFE BTTFUT RVJUF SBQJEMZ TJODF POMZ UISFF ZFBST BGUFS SFGPSNT JOTUJUVUJPOBMJTFE UIF TZTUFN TFF ;IFOH 4UJMM JU JT OPU HJWFO UIBU BTTFU HSPXUI XJMM CF TVTUBJOFE PODF UIF MBSHF NVMUJOBUJPOBMT BOE TUBUFPXOFE FOUSFQSJTFT UIBU DIPPTF UP IBWF &" QMBOT BSF BMM DPWFSFE )POH ,POHhT .1'T BMSFBEZ DPWFST B TVCTUBOUJBM QSPQPSUJPO PG FNQMPZFFT *O UIJT DBTF HSPXUI JO BTTFUT JT DPOUJOHFOU VQPO IJHIFS NBOEBUPSZ PS WPMVOUBSZ DPOUSJCV UJPOT )FODF NFNCFSTIJQ BOE BTTFU HSPXUI IBT CFFO TMPX JO SFDFOU ZFBST BOE OFHBUJWF JO UIF DBTF PG 0340 %$ QMBOT XIJDI IBWF MFTT BUUSBDUJWF WFTUJOH SVMFT UIBO JOEJWJEVBM .1' BDDPVOUT



.BZ



'JHVSF &BTU "TJBhT %$ BTTFU HSPXUI

100%

80%

60%

40%

20%

0%

2007

2008

2009

2010

2011

-20%

-40% China's EAs

Taiwan's LPF

Hong Kong's ORSO DC Funds

Hong Kong's MPFs

4PVSDF 6SBUB .JOJTUSZ PG )FBMUI -BCPVS 8FMGBSF ;IFOH -FDLJF BOE 9JBP

BOOVBM SFQPSUT

'JHVSF &BTU "TJBhT %$ NFNCFSTIJQ HSPXUI

20%

15%

10%

5%

0%

2007

2008

2009

2010

2011

-5%

-10% China's EAs

Taiwan's LPF

Hong Kong's ORSO DC Funds

Hong Kong's MPFs

4PVSDF TFF àHVSF



.BZ



*O ,PSFB %$ HSPXUI SFNBJOT MJNJUFE 1PUFOUJBM PCTUBDMFT UP HSPXUI JODMVEF UIF QSFGFSFODF GPS PUIFS TBWJOHT WFIJDMFT TVDI BT CBOL EFQPTJUT BOE DSPXEJOHPVU CZ %# BSSBOHFNFOUT XIJDI PGGFS B HVBSBOUFF BOE UFOE UP CF QSFGFSSFE CZ àSNT BT EJTDVTTFE JO TFDUJPO

$BTICBMBODF QMBOT $#1T BSF PGGFSFE CZ BQQSPYJNBUFMZ PG FNQMPZFST JO +BQBO " %$ QMBO XJUI B %# VOEFSQJO UIFZ QSPWJEF BO JOEFY BUJPO HVBSBOUFF CBTFE PO UIF OPUJPOBM BDDPVOU CBMBODF 4VHJUB 6FUB 5BLBZBNB D

3JTLTIBSJOH BOE IZCSJEJUZ 6TFE BT UIF NBJO TPVSDF PG QFOTJPO àOBODJOH QVSF %$ QMBOT DBO QSPWF FYUSFNFMZ SJTLZ GPS UIF JOEJWJEVBM TJODF UIFSF JT OP HVBSBOUFF UIBU UIF BDDSVFE WBMVF PG UIF BTTFUT BU SFUJSFNFOU XJMM CF FOPVHI UP QSPWJEF BO BEFRVBUF QFOTJPO 3JTLTIBSJOH CFUXFFO NFNCFST BOE FNQMPZFST JT SFGFSSFE UP BT B hIZCSJEh BSSBOHFNFOU 8IJMF IZCSJEJUZ JT TFMEPN GPVOE JO &BTU "TJBhT %$ QMBOT JU DBO CF PG TFWFSBM UZQFT ! %# VOEFSQJO PS OPUJPOBM %$ /%$

JT GPVOE GPS FYBNQMF JO +BQBOFTF DBTI CBMBODF QMBOT $#1T XIJDI BMMPX UIF CFOFàU GPSNVMB UP EFQFOE PO BDDVNV MBUJPO PG QPJOUT PS B OPUJPOBM BDDPVOU CBMBODF PS $IJOBhT 64* BOE 34* JOEJWJEVBM BDDPVOUT XIJDI XFSF EFTJHOFE UP CF GVMMZ GVOEFE CVU IBWF OFWFS SFBMMZ CFFO TJODF DPOUSJCVUJPOT XFSF VTFE UP QBZ UIF QFOTJPO PCMJHBUJPOT PG UIF 64* QPPMT 4FF )PM[NBOO FU BM 4UJMM $IJOBhT 64* JOEJWJEVBM BDDPVOUT QBZ PVU CFOFàUT FWFO BGUFS GVOET JO UIF BDDPVOU IBWF SVO PVU JF UIFZ FGGFDUJWFMZ QSPUFDU NFNCFST GSPN MPOHFWJUZ SJTL 0LTBOFO 3FDFOU SFGPSNT BDLOPXMFEHFE UIJT TUBUF PG BGGBJST BOE BSSBOHFE GPS OFX DPOUSJCVUJPOT UP UIF 34* JOEJWJEVBM BDDPVOUT UP CF VTFE UP QBZ CFOFàUT UP

DVSSFOUMZ SFUJSFFT -FDLJF BOE 9JBP !

!

$PMMFDUJWF %$ $%$ PS JOWFTUNFOU SJTL BOE SJTL NBOBHFNFOU QPPMJOH JT GPVOE BU UIF 5BJXBOFTF -1' BOE +BQBOFTF $#1T XIJDI EP OPU PGGFS JOWFTUNFOU PQUJPOT UP NFNCFST 1TFVEPIZCSJEJUZ BMMPXJOH FNQMPZFST PS NFNCFST UP DPNCJOF QVSF %# BOE %$ QMBOT BT QBSU PG UIF TBNF BSSBOHFNFOU FYJTUT JO ,PSFB XIFSF JG BO FNQMPZFS IBT TFU VQ CPUI B %# BOE B %$ QMBO GPS UIFJS FNQMPZFFT FNQMPZFFT DBO DIPPTF UP KPJO FJUIFS PS CPUI PG UIFN BOE TQMJU UIFJS DPOUSJCVUJPOT JO B QSFTFU QSPQPSUJPO )POH +V 5PXFST 8BUTPO B

*NQSPWJOH %$ 'VOETh 'SBNFXPSL BOE (PWFSOBODF *O PSEFS UP CPMTUFS JOWFTUNFOU JO %$ TDIFNFT JO &BTU "TJB B OVNCFS PG DIBOHFT UP UIF SFHVMBUPSZ GSBNFXPSLT BOE JODFOUJWFT JT SFRVJSFE *U JT FTQFDJBMMZ OFDFTTBSZ UP LFFQ DPTUT VOEFS DPOUSPM XIJMF OPOFUIFMFTT QSPQPTJOH XPSUIXIJMF EFGBVMU JOWFTUNFOU TPMVUJPOT 3FHVMBUPSZ JODFOUJWFT EVSJOH UIF BDDVNVMBUJPO QIBTF $POUSJCVUJPOT UP %$ TDIFNFT BSF TUJMM JOTVG àDJFOU UP QSPWJEF B NFBOJOHGVM TVCTUJUVUF UP %# " NBKPSJUZ PG DPOUSJCVUJPOT UP &BTU "TJBhT %$ QMBOT DPNFT GSPN FNQMPZFST 'PS FYBNQMF JO ,PSFBO BOE +BQBOFTF DPSQPSBUF %$ QMBOT UIF FNQMPZFF JT BMMPXFE CVU OPU SFRVJSFE UP



.BZ



DPOUSJCVUF *O UIF DBTF PG +BQBO UIF QPTTJ CJMJUZ PG FNQMPZFF DPOUSJCVUJPOT XBT DSFBUFE POMZ JO /PNVSB 8IFO WPMVOUBSZ UIF BWBJMBCJMJUZ PG %$ QFOTJPOT JT PGUFO EFDJEFE CZ UIF FNQMPZFS &WFO BDDFTT UP TPNF QVSFMZ JOEJWJEVBM BSSBOHFNFOUT TVDI BT +BQBOFTF JOEJWJEVBM %$ BDDPVOUT BOE ,PSFBO *3"T BOE *31T DBO EFQFOE PO UIF FNQMPZFS 5P JNQSPWF BDDVNVMBUJPO JO %$ QMBOT JODFO UJWFT JOHSBJOFE JO QFOTJPO QMBO EFTJHO BSF OFDFTTBSZ CPUI GPS WPMVOUBSZ BOE NBOEBUPSZ %$ BSSBOHFNFOUT %FQFOEJOH PO XIP DPOUSJCVUFT UP TVDI TDIFNFT JODFOUJWFT BQQMZ UP FNQMPZFST FNQMPZFFT PS CPUI 5IF SFHVMBUPSZ NFBTVSFT BOE JODFOUJWFT BSF JOTVGàDJFOU PO B OVNCFS PG BYFT ! $POUSJCVUJPO SBUFT IJHI DPOUSJCVUJPO SBUFT DBO MFBE UP DPNQMJBODF FWBTJPO BT 0LTBOFO BSHVFT JO UIF DBTF PG $IJOB "U UIF TBNF UJNF B MBDL PG NJOJNVN DPOUSJCVUJPO SBUFT HJWFT FNQMPZFST UPP NVDI MFFXBZ FTQFDJBMMZ CFDBVTF UIFZ EP OPU CFBS BOZ PG UIF PVUDPNF SJTL $POUSJCVUJPO SBUFT BSF TFU JO MBX JO 5BJXBO ,PSFB BOE )POH ,POH XIFSFBT JO $IJOB UIF SBUF TFU CZ UIF HPWFSONFOU JT VTFE BT HVJEBODF POMZ ;IFOH $POUSJCVUJPO DFJMJOHT DBO CF VTFE UP QSFWFOU UBY FWBTJPO CVU DBO CF QSPIJCJUJWFMZ MPX BOE MJNJU JODFOUJWFT UP DPOUSJCVUF BT JT UIF DBTF JO +BQBO GPS FYBNQMF ! 5BYBUJPO BSSBOHFNFOUT UBY EFEVDUJCJMJUZ PG DPOUSJCVUJPOT JT OFDFTTBSZ UP FODPVSBHF DPNQMJBODF XJUI NBOEBUPSZ DPOUSJCVUJPOT BOE

!

!

!

BEEJUJPOBM WPMVOUBSZ DPOUSJCVUJPOT 4VDI QSPWJTJPOT FYJTU CVU BSF TBJE UP CF JOTVGà DJFOU JO +BQBO BOE 5BJXBO *O $IJOB UBY SVMFT BSF TFU BU UIF QSPWJODF MFWFM BOE MJUUMF DMBSJUZ FYJTUT JO UIF UBY MBX *O GBDU UBY CSFBLT PO &"T BSF VTFE BT TUJNVMVT GPS DPNQBOJFT UP TFU VQ PGàDFT JO DFSUBJO QSPWJODFT BOE OPU PUIFST 5IFSF BSF FWFO OVNFSPVT FYBNQMFT PG WBSZJOH MFWFMT PG UBY EFEVDUJCJMJUZ GSPN POF FDPOPNJD EFWFMPQNFOU [POF UP BOPUIFS (VBSBOUFFT BOE JOEFYBUJPO TVDI QSPNJTFT PGGFS B MFWFM PG SJTL TIBSJOH CVU UIFZ BSF SBSF BOE OPU BMXBZT DPPSEJOBUFE XJUI JOWFTUNFOU TUSBUFHZ 5BJXBOFTF -1' BOE +BQBOFTF DBTI CBMBODF QMBOT $#1T PGGFS B NJOJNVN BOOVBM SFUVSO FRVJWBMFOU UP UIF TIPSUUFSN EFQPTJU SBUF PG JOUFSFTU &MTFXIFSF HVBSBOUFFT NBZ FYJTU JG UIF JOEJWJEVBM DIPPTFT B HVBSBOUFFEQSJODJQBM PS HVBSBOUFFE JOUFSFTU JOWFTUNFOU PQUJPO 7FTUJOH BOE QPSUBCJMJUZ SVMFT UIFTF BSF DSVDJBM GPS CVJMEJOH VQ USVTU BOE CFOFàU TFDVSJUZ.BOEBUPSZ TDIFNFT TVDI BT UIF 5BJXBOFTF -1' BOE )POH ,POH .1'T BT XFMM BT QVSFMZ JOEJWJEVBM %$ QMBOT TVDI BT UIF OPOFNQMPZFSTQPOTPSFE *3"T JO ,PSFB PGGFS JNNFEJBUF GVMM WFTUJOH PG BMM DPOUSJCVUJPOT XIFSFBT JO DPSQPSBUF %$ BSSBOHFNFOUT FNQMPZFS DPOUSJCV UJPOT UZQJDBMMZ WFTU BGUFS TFWFSBM ZFBST *U JT XPSUI OPUJOH UIBU WFTUJOH SVMFT BSF SBSFMZ TFU JO MBX BOE BSF SBUIFS CBTFE PO DPNNPO VTBHF $PNQMJBODF CJOEJOH SVMFT GPS DPNQMJBODF FYJTU POMZ JO )POH ,POH XIFSF UIF .1'T SFHVMBUPS UIF .BOEBUPSZ 1SPWJEFOU 'VOET "VUIPSJUZ .1'" IBT NBEF OPODPNQMJBODF B "O &%)&$3JTL *OTUJUVUF 1VCMJDBUJPO


.BZ



5BCMF %$ TDIFNFT QBSBNFUFST

Scheme


Contribution Limits

- Max JPY 25,500 per month for employees whose employer offers a DB pension Max JPY 51,000 per month for employees for whom the DC fund is the primary employer fund - Employee contribution may not exceed employer contribution


- Max JPY 68,000 per month including contribution to NPI for the self-employed Max JPY 23,000 per month for private-sector employees whose employer does not offer a pension fund - Max JPY 25,500 per month for employees whose employer offers a DB pension - Max JPY 51,000 per month for employees for whom the DC fund is the primary employer fund

% empl. pop

Allowed


as of

Plan dependent

No employee co-contribution if employer-sponsored

Recipents (th)

Allowed

Employed individuals can contribute max KRW 12 million per year

as of

Plan dependent

Participants (th)

8%

Plan dependent

Plan dependent

Plan dependent

7%

14%

Plan dependent

N/A

14%

N/A

N/A

0%

Max 8.33% of annual wages or 12.50% of salaries

4,100 2011

N/A

Not required or allowed

Japan Corporate DC Corporate DC Schemes

N/A

N/A

Plan dependent

4%

Employee contributions cannot exceed 6%

Contributions are calculated based on twice the basic pay

None

N/A

2%

Allowed

Dependent on max pensionable income of HKD 25,000

0%

3,300 2011

N/A

N/A

1%

5%

Plan dependent

N/A

80 2011

3,300 2011

N/A

N/A

51%

5%

Plan dependent

N/A

Korea Corporate DC Corporate DC Plans Individual DC Individual Retirement Accounts (IRAs)

13,400 2010

N/A

73%

Plan dependent

132 2011

Individual Retirement Pensions (IRPs) China Corporate DC Enterprise Annuities (EAs)

67 2011

Individual DC Individual DC Schemes

Taiwan Public DC Private Teachers Pension Fund (PTPF)

7.80% from employer and government 6%

N/A

8%

155 2011

N/A

N/A

5,500 2011

2,600 2011

N/A

.BZ


280 2011


Labour Pension Fund (LPF) Hong Kong Occupational DC Mandatory Provident Fund (MPF) Schemes Corporate DC Occupational Retirement Schemes Ordinance (ORSO) DC Schemes

4PVSDF TFF UBCMF



5BCMF %$ TDIFNFT QBSBNFUFST DPOUJOVFE

Scheme

Japan Corporate DC Corporate DC Schemes


Korea Corporate DC Corporate DC Plans

Individual DC Individual Retirement Accounts (IRAs)

Individual Retirement Pensions (IRPs)

Benefit Composition






- Employer contributions vesting is 10 years of Varies with Guaranteed principal plan dependent, normally 3 years - contributions retirement depending on choice of Employee contributions are vested age investment strategy fully and immediately

Taxation

60

- Tax-deductible contributions - Benefits - Annuity benefit - Lump sum allowed No and investment income taxed at withdrawal for account balance below JPY 15,000 Can include disability, survivor and other benefits

All contributions are vested fully and immediately

Ret. Age

60

- Tax-deductible contributions - Benefits - Annuity benefit - Lump sum allowed No and investment income taxed at withdrawal for account balance below JPY 500,000 or less than 3 years of contributions - Can include disability, survivor and other benefits

Upon long-term Immediate vesting implied illness or purchase of first residence

10 years of None contributions


Guaranteed principal or interest rate depending on choice of product


- Wage indexation Guaranteed principal or interest rate depending on choice of product

10 years of Varies with Guaranteed principal contributions retirement depending on choice of age investment strategy

55

- Preferrential taxation up to KRW 12 million - Preferrential taxation for annuity benefits

55

- Tax-deductible contributions up to KRW 4 - Annuity benefit for 5 years - Lump million per year across plans - Tax-exempt sum possible benefits up to KRW 6 million per year Preferrential taxation for annuity benefits


- Annuity benefit for 5 years - Lump Upon long-term Immediate vesting implied sum possible, especially when illness or purchase changing jobs - Should not be less of first residence than one month's averag salary per year of service - Hybridity possible in combination with DB plan

55

Upon long-term Immediate vesting implied illness or purchase of first residence

.BZ


- Tax-deductible contributions up to KRW 4 - Annuity benefit for 5 years - Lump million per year across plans - Tax-exempt sum possible benefits up to KRW 6 million per year Preferrential taxation for annuity benefits

4PVSDF TFF UBCMF




5BCMF %$ TDIFNFT QBSBNFUFST DPOUJOVFE

Scheme

China Corporate DC Enterprise Annuities (EAs)

Taiwan Public DC Private Teachers Pension Fund (PTPF)

Labour Pension Fund (LPF)

Ret. Age

Taxation



None


Plan dependent

10 years of N/A service


- Plan dependent - Full vesting commonly after 5 years - Full immediate vesting of employee contributions if any

25 years of service

Benefit Composition

No

N/A

None

No



- Monthly benefit possible after 15 years of contributions - Lump sum

None

None

None

None

None

Plan Plan dependent dependent

Immediate full vesting

- Plan dependent - Gradual vesting after 3 years

Upon terminal All contributions are vested fully illness or and immediately permanent departure from HK

Upon redundancy

Plan dependent

- Monthly benefit - Lump sum No possible for members enrolled before 2009 - Includes survivor benefits

60 for men, - Tax-deductible employer contributions up - Lump sum - Annuity benefit 55 for to 5% - Fully taxed employee contributions women

65

60

- Employee contributions deductible up to TWD 24,000 per year - Lump sum benefit deductible up to TWD 150,000 - Monthly benefits deductible up to TWD 650,000 per year - Employee contributions deductible up to TWD 24,000 per year - Lump sum benefit deductible up to TWD 150,000 - Monthly benefits deductible up to TWD 650,000 per year

- Lump sum - Hybridity possible in combination with DB plan

.BZ


- Tax-deductible employer contributions up Lump sum only to HKD 15,000 per year - Tax-deductible employee contributions up to HKD 15,000 per year - Tax-exempt benefits unless premature withdrawal

Plan Tax deductible contributions dependent


Hong Kong Occupational DC Mandatory Provident Fund (MPF) 65 Schemes

Corporate DC Occupational Retirement Schemes Ordinance (ORSO) DC Schemes




DSJNJOBM PGGFODF $PNQMJBODF DBO CF BWPJEFE CZ VOEFSSFQPSUJOH UIF OVNCFS PG FNQMPZFFT PS UIFJS FBSOJOHT BO JTTVF FTQFDJBMMZ QSFWBMFOU BNPOH UIF TFMGFNQMPZFE BOE 4.&T *O $IJOFTF &"T GPS FYBNQMF UIFSF BSF OP NFDIBOJTNT UP QSFWFOU OPODPNQMJBODF FH 5BLBZBNB B ;IFOH 5BLBZBNB D 0LTBOFO 4IJ BOE .PL C -FDLJF BOE 9JBP GPS NPSF EFUBJMT JO FBDI DPVOUSZ 5BCMFT BOE EFUBJM UIF NBJO QBSBN FUFST PG &BTU "TJBhT %$ TDIFNFT " TUSJLJOH QPJOU HJWFO UIF HMPCBM USFOE UPXBSET %$ QFOTJPOT JT UIF MBDL PG EFWFM PQNFOU PG %$ QMBOT JO +BQBO B EFWFMPQFE FDPOPNZ UIBU TUBSUFE QFOTJPO SFGPSNT NVDI FBSMJFS UIBO PUIFS DPVOUSJFT JO UIF SFHJPO 5IF NBJO FYQMBOBUJPOT HJWFO JO UIF MJUFSBUVSF BSF !

!

!

!

$POUSJCVUJPO DFJMJOHT BSF UPP MPX /PNVSB

1SFNBUVSF XJUIESBXBMT BSF CBOOFE 5BLBZBNB D

'VOEJOH DPNQMFYJUZ QSFWFOUJOH &1'T %# QMBOT EJTDVTTFE JO TFDUJPO GSPN DPOWFSUJOH UP %$ $MBSL BOE .JUDIFMM

5IF QIBTJOHPVU PG %# WFIJDMFT TVDI BT 5211T BOE &1'T JT TMPX /BLBEB

PCTFSWFT UIBU PG %$ QMBOT XFSF GPSNFE XJUI USBOTGFST GSPN 5211T

*U JT GBJS UP TBZ UIBU QVCMJD BOE DPSQPSBUF %# QFOTJPOT IBWF TP GBS DSPXEFE PVU %$ TDIFNFT JO +BQBO *U SFNBJOT BO PQFO RVFTUJPO XIFUIFS TJNJMBS EZOBNJDT CFUXFFO

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àOBODJBM TFSWJDF JOUFSNFEJBSJFT .BOBHFNFOU JOWFTUPS FEVDBUJPO BOE JOWFTUNFOU GFFT BSF JNQPSUBOU QBSUT PG %$ QMBO EFTJHO 5IFZ BSF TIBSFE CFUXFFO FNQMPZFST BOE FNQMPZFFT 5IJT UPQJD JT OPU XFMM EPDVNFOUFE JO &BTU "TJB BOE JT POMZ NBSHJOBMMZ DPWFSFE JOUFSOBUJPOBMMZ TJHOBMMJOH BO JOTVGàDJFOU GPDVT PO DPTU B TIPSUDPNJOH XIJDI DBO BGGFDU BDDVNVMBUJPO JO %$ QMBOT NBUFSJBMMZ 'PS FYBNQMF 4UFXBSU BOE (PNF[ )FSOBOEF[ QSPQPTF VTJOH UIF DIBSHF SBUJP GPS DSPTTDPVOUSZ DPNQBSJTPOT B NFBTVSF XIJDI DBQUVSFT UIF JNQBDU PG DPTUT UISPVHIPVU B ZFBS BDDVNVMBUJPO QFSJPE 5IFZ IJHIMJHIU UIBU WPMVOUBSZ TZTUFNT UFOE UP IBWF IJHIFS DIBSHF SBUJPT B UFTUBNFOU UP UIF JNQPSUBODF PG FDPOPNJFT PG TDBMF 'JHVSFT BOE TIPX UIF SFTVMUT PG UIFJS TUVEZ 'JHVSF PGGFST BEEJUJPOBM JOTJHIU JOUP UIF CSFBLEPXO PG UIFTF GFFT



.BZ

Bo li Sa via lva d Ur or ug Co uay lom bia Isr ae l Ch i M le ex ico Pe Ar ru ge nt in a Slo P Do va ola m k R nd in ica epu b n Re lic pu M bl ac ic ed Co oni sta a Ri c Cr a oa Hu tia ng a Bu ry Ho lgar ng ia Ko ng Cz ec Ser h Re bia pu bli c Tu rk ey

El

1.0%

0.5%


%

%

1.5%

8% 0.8 2% 0.8 4% 0.8 8% 0.9 2% 0.9 8% 1.0 0% 1.2 0

0.7

8%

2.4

36 % 38 % 38 %

40%

6% 1.9 2%

30%

27 %

45%

1.8

9%

2.0%

1.7

15%

10 % 12 % 12 % 13 % 14 % 15 % 15 % 15 % 18 % 19 % 19 % 19 % 20 % 21 % 22 % 23 %

20%

9% 0.4 9% 0.5 1% 0.5 3% 0.5 7% 0.6 1% 0.6 2% 0.6 3% 0.7 7

B El oliv Sa ia lva Ur dor ug Co uay lom bia Isr ae l Ch ile M ex ico Ar Peru ge nt in Slo a Do va Pol m k R and in ica epu b n Re lic pu M bl ac ic ed Co oni sta a Ri c Cr a oa Hu tia ng a Bu ry Ho lgar ng ia Ko ng Cz S ec e h rbi Re a pu bli Tu c rk ey

25%

0.3

50%

46 %



'JHVSF $IBSHF SBUJPT JO %$ 1MBOT BSPVOE UIF XPSME

35%

10%

5%

0%

4PVSDF 4UFXBSU BOE (PNF[ )FSOBOEF[

'JHVSF &RVJWBMFOU BOOVBM GFFT JO %$ QMBOT "SPVOE UIF XPSME

3.0%

2.5%

0.0%

4PVSDF 4UFXBSU BOE (PNF[ )FSOBOEF[


.BZ



'JHVSF $PNQBSJTPO PG $PTUT JO .BKPS %$ 4ZTUFNT

2.0% 1.8% 1.6% 1.4%

0.57%

1.2%

0.19%

1.0% 0.8% 0.6%

0.60%

1.41% 1.19%

1.17%

0.4% 0.42%

0.2% 0.0%

Hong Kong MPFs

Australian Super Funds

Administration Cost and Direct Expenses

Singapore Provident Fund

Fund Management Fees

UK

Distribution Cost

Total Costs

4PVSDF &SOTU :PVOH

*O +BQBOFTF %$ QMBOT FNQMPZFFT DBSSZ UIF NBKPSJUZ PG JOWFTUNFOU DPTUT CVU FNQMPZFST CFBS UIF GVMM BENJOJTUSBUJPO BOE FEVDBUJPO FYQFOTFT *O )POH ,POH GFFT IBWF CFFO SJTJOH TUFBEJMZ BOE EJTDVTTJPOT BSF POHPJOH UP DBQ GFFT *HOJUFT "TJB B BGUFS UIF SFHVMBUPS EFDMJOFE UP DSFBUF B OBUJPOBM .1' USVTUFF *HOJUFT "TJB B "DDPSEJOH UP 4IJ BOE .PL B BOE &SOTU :PVOH

GFFT JO )POH ,POH BSF DPOTJEFSFE IJHI BOE PGUFO IBMWF JG OPU FYDFFE BWFSBHF BOOVBM SFUVSOT 5IF .1'" JT BJNJOH UP JOUSPEVDF NPSF MPX DPTU TPMVUJPOT GPS JUT NFNCFST *O TUBSL DPOUSBTU $IJOBhT &"Th GFFT BSF DPOTJEFSFE UPP MPX UIFZ BSF DBQQFE BU PG BTTFUT XIFSFBT UIF NJOJNB BSF GPS QMBOT XJUI FRVJUZ BMMPDBUJPOT BOE PUIFSXJTF -FDLJF BOE 9JBP 5IF JOWFTUNFOU NBOBHFNFOU TFDUPS JT WFSZ

SFDFOU JO .BJOMBOE $IJOB BOE DPOTJTUT NPTUMZ PG GPSFJHO àSNT PQFSBUJOH JO MPDBM KPJOUWFOUVSFT +7T BOE USBOTGFSSJOH UIFJS LOPXIPX EJSFDUMZ PS JOEJSFDUMZ UP MPDBM QMBZFST *OEJWJEVBM DIPJDF BOE EFGBVMU PQUJPOT $IPJDF JO %$ QMBOT JT VTVBMMZ NBEF BU UXP MFWFMT UIF BCJMJUZ UP DIPPTF B QFOTJPO GVOE MFWFM *

BOE UIF BCJMJUZ UP DIPPTF JOWFTUNFOU PQUJPOT XJUIJO UIBU GVOE MFWFM ** /PU BMM %$ TZTUFNT JO &BTU "TJB PGGFS DIPJDF 'PS FYBNQMF )POH ,POHhT .1' BOE ,PSFBhT DPSQPSBUF %$ QMBOT BMMPX CPUI UZQFT PG DIPJDF XJUI TPNF MJNJUBUJPOT XIJMF PUIFS %$ QMBOT JO UIFTF UXP DPVOUSJFT BMMPX POMZ MFWFM ** DIPJDF



.BZ



5BCMF $IPJDF MFWFMT JO %$ 4DIFNFT JO &BTU "TJB

Country Hong Kong

Korea

Korea Japan

Taiwan China China

Plan MPFs

Level I Choice Level II Choice Details ● ● Two levels of choice are offered from 2012 onwards, but employees can only choose the MPF in which their individual contributions are placed. Investment choice was available prior. Corporate DC ● ● Employees can choose between DB and DC pensions, or a plans and combination of the two, if offered by their employer, since 2011. IRPs Investment choice was available prior. At least one option with a principal guarantee should be offered. IRAs ◌ ● If the IRA is sponsored by an employer, the employee does not have choice of pension fund. All DC plans ◌ ● Japanese DC plans must offer a choice of at least three investment options and at least one should have a principal guarantee. Investment options usually include a bank deposit, an insurance contract and mutual funds. LPF ◌ ◌ This is a mandatory, publicly managed, collectively invested scheme. USI IAs ◌ ◌ This is a mandatory scheme which must be invested only in bank deposits by law. EAs ◌ ● Chinese EAs offer investment choice too but not consistently. As of 2009, they were not offering guaranteed principal products.

4PVSDF 5BLBZBNB D 1IBOH )POH .PP

$POWFSTFMZ $IJOB BOE 5BJXBO PGGFS WFSZ MJUUMF DIPJDF JG BOZ 5BCMF TVNNBSJTFT DIPJDF TZTUFNT JO &BTU "TJB 8IFO JOEJWJEVBM DIPJDF FYJTUT UIF FYJTUFODF BOE EFTJHO PG B EFGBVMU PQUJPO NBLFT BO JNQPSUBOU EJGGFSFODF 5IFZ BSF DSVDJBM EVF UP UIF JOFSUJB JO JOEJWJEVBM JOWFTUNFOU EFDJTJPO UIF MBDL PG LOPXMFEHF PO FWFO UIF TJNQMFTU JOWFTUNFOU DPODFQUT BOE UIF HFOFSBM EJGà DVMUZ JO JNQMFNFOUJOH B HPPE JOWFTUNFOU TUSBUFHZ FWFO GPS TPNFPOF LOPXMFEHFBCMF #FIBWJPVSBM SFTFBSDI DPODMVEFT UIBU JOEJWJEVBMT SBSFMZ MPPL QBTU UIF EFGBVMU PQUJPO PG QMBOT FWFO XIFO UIFZ IBWF DPOUSPM PWFS UIF JOWFTUNFOU DIPJDF .VJS 5IFSF JT B MPU PG JOFSUJB JO JOEJWJEVBM JOWFTUNFOU EFDJTJPOT XIJDI SBUIFS UIBO GPMMPXJOH B UIPVHIUPVU TUSBUFHZ UIBU JT SFWJTFE BDDPSEJOH UP DJSDVNTUBODFT BSF NBEF PODF BOE GPS BMM *G UIF PQUJPO UIBU JT DIPTFO EPFT OPU UBLF JOUP BDDPVOU UIF DIBOHJOH OBUVSF PG NBSLFU BOE JOEJWJEVBM DJSDVNTUBODFT JU DBO QSPWF EJTBTUSPVT

5IF JOWFTUNFOU TUSBUFHZ XIFO UIFSF JT POF PGUFO TVGGFST GSPN B OVNCFS PG TFWFSF TIPSUDPNJOHT 5IFSF JT PGUFO BO PWFS DPODFOUSBUJPO JO EPNFTUJD BTTFUT IPNF CJBT

JO DFSUBJO BTTFU DMBTTFT FRVJUZ JO QBSUJDVMBS BOE JO DFSUBJO BTTFUT XJUIJO UIPTF DMBTTFT JODMVEJOH TPNFUJNFT UIF FNQMPZFShT TUPDL ,JNCBMM BOE 4IVNXBZ TUVEZ UIFTF UISFF QV[[MFT BOE à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



.BZ



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àDBOU GSFFEPN FYJTUT GPS FNQMPZFST XIFO TFUUJOH UIF EFGBVMU PQUJPO B NPSF SPCVTU GSBNFXPSL GPS UIF TFMFDUJPO PG EFGBVMU %$ PQUJPOT XJUIJO .1'T XBT CFJOH DPOTJEFSFE JO "O BEEJUJPOBM MFWFM PG DIPJDF BMMPXJOH JOEJWJEVBMT UP DIPPTF UIFJS TDIFNF JOEFQFOEFOUMZ PG UIFJS FNQMPZFSTh DIPTFO TDIFNF MFWFM

XBT BMTP JOUSPEVDFE JO *HOJUFT "TJB C *O FGGFDU UPP NVDI DIPJDF DBO BMTP CF DPTUMZ %FTQJUF JOEJWJEVBMTh UFOEFODZ UP DIPPTF UIF EFGBVMU PQUJPO %$ QMBOT XJUI MFWFM DIPJDF PGUFO PGGFS OVNFSPVT JOWFTUNFOU PQUJPOT UIFSFCZ SFEVDJOH FDPOPNJFT PG TDBMF 5IJT QIFOPNFOPO JT XFMM EPDVNFOUFE JO "VTUSBMJBhT TVQFSBOOVBUJPO TZTUFN 5IF JOGPSNBUJPO PWFSMPBE UIFO FYBDFSCBUFT UIF QBSBEPY PG DIPJDF BOE JOWFTUPST UFOE UP GBMM CBDL PO GBNJMJBS JG TVCPQUJNBM QSPEVDUT 5IJT DBO CF BO JTTVF JO &BTU "TJB BT XFMM 'PS FYBNQMF JO +BQBO %$ QMBOT PGGFS PO BWFSBHF

JOWFTUNFOU PQUJPOT ZFU NPSF UIBO PG BTTFUT BSF IFME JO JOTVSBODF DPOUSBDUT BOE CBOL EFQPTJUT /PNVSB 3FHVMBUFE EFGBVMU PQUJPOT CPUI QSF BOE QPTUSFUJSFNFOU BSF OFDFTTBSZ DPOTJEFSJOH UIF SFMVDUBODF PG NFNCFST UP FYFSDJTF DIPJDF UIFJS RVFTUJPOBCMF BCJMJUZ UP NBLF TPVOE JOWFTUNFOU EFDJTJPOT BOE UIF DPTU PG DIPJDF BOE PWFSDBQBDJUZ GPS B QFOTJPO TZTUFN &YQPTVSF UP OPOàOBODJBM SJTLT *G JU JT VOSFBMJTUJD UP FYQFDU QMBO NFNCFST UP NBOBHF JOWFTUNFOU SJTL UIFNTFMWFT UIFO DFSUBJOMZ FYQFDUJOH UIFN UP EFBM XJUI OPO àOBODJBM SJTLT JT FWFO NPSF TP 5SBOTQBSFODZ JT QBSBNPVOU BOE TVGàDJFOU JO UIF JOTUJUVUJPOBM JOWFTUNFOU JOEVTUSZ CVU GPS SFUBJM JOWFTUNFOU TPMVUJPOT UIF SFHVMBUPS IBT B EVUZ UP FOTVSF UIBU QFOTJPOFST BSF OPU TVCKFDUFE UP OPOàOBODJBM SJTLT PS UIBU SFBTPOBCMF NFDIBOJTNT FYJTU UP QSPUFDU UIFN BHBJOTU UIFJS DPOTFRVFODFT 'PS FYBNQMF JO UIF DPOUFYU PG UIF 6$*54 WT ESBGU %JSFDUJWF "NFOD BOE %VDPVMPNCJFS TVHHFTU UIF DSFBUJPO PG B TVCTFU PG UIF 6$*54 6OEFSUBLJOHT GPS $PMMFDUJWF *OWFTUNFOU JO 5SBOTGFSBCMF 4FDVSJUJFT MBCFM XIFSF OPOàOBODJBM JT WJSUVBMMZ FMJNJOBUFE UISPVHI SFTUSJDUJPOT PO FMJHJCMF JOWFTUNFOUT PQFSBUJPOT BOE KVSJTEJDUJPOT UIVT BMMPXJOH UIF EFQPTJUBSZ UP TBGF LFFQ BMM BTTFUT BOE SFUVSO UIFTF (PWFSOBODF TIPVME FNQIBTJTF DMBSJUZ PO UIF JOWFTUNFOU TUSBUFHZ GPMMPXFE BOE NBLF TVSF BTTFUT BSF QSPQFSMZ TFHSFHBUFE CZ JOEFQFOEFOU EFQPTJUBSJFT %FQPTJUBSJFT BMTP "O &%)&$3JTL *OTUJUVUF 1VCMJDBUJPO


.BZ



IBWF B QBSU UP QMBZ JO HVBSBOUFFJOH UIF TBGFLFFQJOH PG UIF BTTFUT "NFOD FU BM

JO UIF DBTF PG DPMMFDUJWF %$ $%$ QMBOT BSF MFGU XJUI UIF DIBMMFOHF PG EFTJHOJOH UIFJS PXO JOWFTUNFOU TUSBUFHZ

'PS FYBNQMF UIF )POH ,POH .1'" BT UIF TVQFSWJTPSZ BVUIPSJUZ SFTQPOTJCMF GPS BQQSPWJOH DPOTUJUVFOU JOWFTUNFOU GVOET IBT BO JNQMJDJU àEVDJBSZ EVUZ UP BMM NFNCFST UP QSPUFDU UIFJS JOUFSFTUT KPJOUMZ XJUI UIF 4FDVSJUJFT BOE 'VUVSFT $PNNJTTJPO 4'$

%FàOJOH FYQMJDJU MPOHUFSN MJBCJMJUJFT " QPTTJCMF IJOESBODF UP UIF JNQMFNFO UBUJPO PG BO BEFRVBUF NBOBHFNFOU TUSBUFHZ GPS EFàOFEDPOUSJCVUJPO GVOET JT UIF MBDL PG FYQMJDJU MJBCJMJUJFT DPOUSBSZ UP EFàOFE CFOFàU QMBOT

%FGBVMU PQUJPOT DBO BMTP IFMQ EFBM XJUI OPOàOBODJBM SJTLT 5IF DPNQMFYJUZ PG SFHVMBUPSZ SVMFT OPUBCMZ SFHBSEJOH EFQPTJ UBSJFT BOE TBGFLFFQJOH BOE UIF MBDL PG B DMFBS JOUFSOBUJPOBM KVSJTQSVEFODF QSPUFDUJWF PG àOBM JOWFTUPST NBZ FYQPTF QMBO NFNCFST UP GVUVSF IBSETIJQ JO UIF GPSN PG MPTT PG BTTFUT 5IFTF JTTVFT BSF OPU KVTU IZQPUIFUJDBM "NFOD FU BM

BOBMZTFT TPNF TUSJLJOH FYBNQMFT PG IPX NJTNBOBHFE OPOàOBODJBM SJTLT PGUFO NBUFSJBMJTF BU UIF FYQFOTF PG UIF JOEJWJEVBM JOWFTUPST TFF "NFOD FU BM

*NQSPWJOH %$ GVOETh JOWFTUNFOU TUSBUFHZ "T XF BSHVFE BCPWF %$ QMBOT BSF VOMJLFMZ UP HSPX JG UIFZ BSF OFJUIFS NBOEBUPSZ OPS PGGFS BO BUUSBDUJWF SFUJSFNFOU JOWFTUNFOU TPMVUJPO /FYU XF EJTDVTT IPX PCTFSWFE JOWFTUNFOU QSBDUJDFT JO &BTU "TJBhT %$ QMBOT TUJMM SFRVJSF UP CF GSBNFE JO B MPOHUFSN MJGFDZDMF BOE SJTL DPOUSPM JOWFTUNFOU TFUUJOH 8JUIPVU XFMMEFTJHOFE EFGBVMU PQUJPOT %$ QMBO NFNCFST PS UIFJS DPMMFDUJWF NBOBHFST

*U IFMQT UP EFàOF B UBSHFU XFBMUI SBUIFS UIBO UBLJOH XIBUFWFS JT JO UIF GVOE BU SFUJSFNFOU *G MJBCJMJUJFT JF TPNF FYQMJDJU PCKFDUJWF GPS UIF GVOE DBO CF EFàOFE UIFO B NPSF GPSNBM BTTFUMJBCJMJUZ NBOBHFNFOU TUSBUFHZ DBO CF FTUBCMJTIFE .BSUFMMJOJ BOE .JMIBV

XIJDI SFTVMUT JO TPMVUJPOT JOWPMWJOH CVJMEJOH CMPDLT GPS QFSGPSNBODF BOE IFEHJOH PG SJTLT TVDI BT JOáBUJPO SJTL JOUFSFTU SBUF SJTL PS FWFO DPOUSJCVUJPO SJTL

BOE B EZOBNJD BMMPDBUJPO CFUXFFO UIFN UIBU UBLFT BDDPVOU PG UIF IPSJ[PO BOE TUBUFEFQFOEFODZ JO BTTFUT "O FYQMJDJU PCKFDUJWF OPUBCMZ BMMPXT UP HJWF VQ TPNF PG UIF VQTJEF iPWFSGVOEJOHu PG UIF PCKFDUJWF UP MPXFS UIF DPTU PG QVSDIBTF PG EPXOTJEF QSPUFDUJPO TFF GPS JOTUBODF .BSUFMMJOJ BOE .JMIBV "OPUIFS SFDFOU BMUFSOBUJWF BQQSPBDI BJNT UP NJOJNJTF UIF QSPCBCJMJUZ PG MJGFUJNF SVJO SBUIFS UIBO BDIJFWF B EFàOFE XFBMUI UBSHFU #BZSBLUBS FU BM *O HFOFSBM UIF TFUUJOH PG UIF JOWFTUNFOU PCKFDUJWF JT PG USFNFOEPVT JNQPSUBODF JO %$ QMBOT ZFU UIF EFHSFF UP XIJDI JOEJWJEVBM PCKFDUJWFT EJGGFS BOE IPX XFMM UIFZ BMJHO



.BZ



*ODJEFOUBMMZ TVDI B SVMF XPVME HJWF FYUSFNFMZ IJHI BMMPDBUJPO UP UIF SJTLZ DPNQPOFOU FWFO WFSZ DMPTF UP SFUJSFNFOU

XJUI àOBODJBM UIFPSZ IBT CFFO VOEFSFTUJ NBUFE

UZQJDBM SVMFPGUIVNC DPSSFTQPOEJOH UP UIF GSBDUJPO UP CF JOWFTUFE JO SJTLZ BTTFUT

%ZOBNJD MJGFDZDMF JOWFTUJOH 4UBUJD TUSBUFHJFT BMUIPVHI XJEFTQSFBE BSF JOBEFRVBUF GPS SFUJSFNFOU TPMVUJPOT "OUPMÎO FU BM FYBNJOFT EFGBVMU JOWFTUNFOU PQUJPOT JO %$ QMBOT BOE àOET UIBU àYFE QPSUGPMJP TUSBUFHZ TFWFSFMZ VOEFSQFSGPSNT EZOBNJD TUSBUFHJFT 4UBUJD TUSBUFHJFT OPUBCMZ GBJM UP SFDPHOJTF UIF JOWFTUNFOU IPSJ[PO PG UIF QFOTJPOFS BOE ZFU TPNFPOF DMPTF UP SFUJSFNFOU TIPVME CF MFTT XJMMJOH UP UBLF PO SJTLT FWFSZUIJOH FMTF CFJOH FRVBM UIBO TPNFPOF GSFTIMZ FOUFSJOH UIF XPSLGPSDF

*U JT XJEFMZ SFDPHOJTFE IPXFWFS UIBU UIFTF TUSBUFHJFT BSF TVCPQUJNBM "OUPMÎO FU BM .BSUFMMJOJ BOE .JMIBV 8IJMF UIFZ JODPSQPSBUF UIF IPSJ[PO FGGFDU UIFZ EP TP JO B TJNQMJTUJD NBOOFS BOE UIFZ BMTP JHOPSF UIF TUPDIBTUJD OBUVSF PG UIF JOWFTUNFOU PQQPSUVOJUZ TFU 'VSUIFSNPSF VTFE PO UIFJS PXO UIFZ UZQJDBMMZ PGGFS OP QSPUFDUJPO BHBJOTU TIPSUGBMMT BT JOWFTUPST IBWF SFDFOUMZ CFDPNF QBJOGVMMZ BXBSF

5IJT MFWFM PG JOWFTUNFOU UIFO TIPVME OPU CF àYFE PWFS UJNF CVU NVDI UP UIF DPOUSBSZ TIPVME CF UJNFEFQFOEFOU )PXFWFS JU TIPVME BMTP CF TUBUFEFQFOEFOU UIBU JT SFáFDU UIF SFMBUJWF QSJDFT PG UIF EJGGFSFOU BTTFUT JO UIF JOWFTUNFOU PQQPSUVOJUZ TFU UIFJS FYQFDUFE SFUVSOT WPMBUJMJUZ BOE DPSSF MBUJPOT 0OF RVJDLàY TPMVUJPO UP SFNFEZ UIF IPSJ[PO FGGFDU IBT CFFO UP VTF B TP DBMMFE EFUFSNJOJTUJD HMJEF QBUI "OUPMÎO FU BM 5IF JEFB JT RVJUF TJNQMF UIF JOWFTUNFOU JT EJWJEFE CFUXFFO B SJTLZ DPNQPOFOU VTVBMMZ FRVJUZ BOE B DPNQPOFOU EFFNFE SJTLMFTT VTVBMMZ àYFE JODPNF XJUI B àYFE IPSJ[PO "T UIF IPSJ[PO HFUT DMPTFS UIF QFSDFOUBHF PG UIF BMMPDBUJPO UP UIF SJTLZ DPNQPOFOU XJMM EFDSFBTF GPMMPXJOH B QSFEFUFSNJOFE GPSNVMB HFOFSBMMZ MJOFBS 5IFTF TUSBUFHJFT IBWF CFDPNF LOPXO BT i NJOVT UIF BHFu PS i NJOVT UIF BHFu BGUFS UIF

5IF àOBODJBM DSJTJT IBT EVSBCMZ EBNBHFE UIF SFQVUBUJPO PG UIFTF iUBSHFUEBUF GVOETu XJUI OFBSUFSN 5%'T MPTJOH MBSHF TIBSFT PG UIFJS BTTFUT CVU TPNFXIBU VOKVTUMZ TJODF UIFJS DVSSFOU JNQMFNFOUBUJPOT BSF UP CMBNF SBUIFS UIBO UIF DPODFQU JUTFMG 5IFSF JT MJNJUFE FWJEFODF PG MJGFDZDMF TPMVUJPOT JO &BTU "TJB CF UIFZ UBSHFUEBUF GVOET PS PUIFST JNQMFNFOUBUJPOT -JGFDZDMF GVOET FYJTU JO +BQBO ,PSFB BOE )POH ,POH CVU UIFSF JT MJUUMF JOGPSNBUJPO PO IPX XJEFTQSFBE UIFJS VTF JO UIF SFHJPO JT "CPVU PG ,PSFBO %$ BTTFUT XFSF JO CBMBODFE NVUVBM GVOET PS MJGFDZDMF GVOET BT PG *1"TJB C 5IF QFSDFOUBHF JT TJNJMBS JO +BQBO /PNVSB *O )POH ,POH TPNF .1' TDIFNFT IBWF CFFO QSPQPTJOH B zMJGFTUZMF GVOEh BT B EFGBVMU PQUJPO TJODF CVU JOUFSFTU JT SFQPSUFEMZ MJNJUFE &SOTU :PVOH



.BZ



0QUJNBM BTTFU BMMPDBUJPO 5IF CVJMEJOH CMPDLT UIBU HP JOUP UIF TUSBUFHZ TIPVME UIFNTFMWFT CF PQUJNBMMZ EFTJHOFE "O FRVJUZ JOEFY JT GSFRVFOUMZ VTFE BT B QSPYZ GPS SJTLZ BTTFUT BOE TPWFSFJHO CPOET NBUDIJOH UIF IPSJ[PO PG UIF JOWFTUNFOU BT UIF SJTLMFTT BTTFU 5IFSF JT POMZ POF BEWBOUBHF UP UIJT QSBDUJDF UIF SFMBUJWF MPX DPTUT PG JNQMFNFOUJOH UIF TUSBUFHZ )PXFWFS UIFTF QSPYJFT BSF TVCPQUJNBM JO BMM PUIFS EJNFOTJPOT 5IFZ BSF OPU HPPE SFQSFTFOUBUJPO PG UIF BTTFU DMBTTFT BWBJMBCMF UP NPTU QFOTJPOFST BOE UIFSFGPSF GPSFHP EJWFSTJàDBUJPO CFOFàUT GSPN DPOTJEFSJOH B CSPBEFS JOWFTUNFOU VOJWFSTF *OEJDFT 'VSUIFSNPSF UIFZ BSF OPU HPPE JOWFTUNFOU CFODINBSLT GPS UIF BTTFU DMBTTFT UIBU UIFZ SFQSFTFOU JF UIFZ EP OPU PQUJNBMMZ DBQUVSF UIF QSFNJB BTTPDJBUFE XJUI UIF SJTLT UBLFO QPQVMBS JOEJDFT UIBU IBWF DBQJUBMJTBUJPO CBTFE XFJHIUT BOE BT TVDI XJMM NPTUBSF UZQJDBMMZ MJLFMZ CFTVCPQUJNBM GSPN B SJTL SFUVSO QPJOU PG WJFX BOE PWFS DPODFOUSBUFE TVDI JOEJDFT BSF TP VOEFS EJWFSTJàFE BOE UIVT TVCPQUJNBM XJUI SFTQFDU UP UIF SJTL SFUVSO USBEFPGG UP TVDI BO FYUFOU UIBU B TJNQMF FRVBMMZ JXFJHIUFE i/u TDIFNF DBO CFBU UIFN PO B SJTLBEKVTUFE CBTJT %F.JHVFM FU BM 5IF JEFB JT UIFO UP NBYJNJTF UIF QSPCBCJMJUZ PG SFBDIJOH UIF HPBM VOEFS TPNF TIPSU UFSN DPOTUSBJOU #Z FYQMJDJUMZ DBQQJOH UIF QFSGPSNBODF BU B DFSUBJO UISFTIPME UIF DPTU PG EPXOTJEF QSPUFDUJPO DBO CF SFEVDFE 5IFSF BSF NBOZ WBSJBOUT PG UIJT BQQSPBDI EFQFOEJOH PO UIF BTTFU DMBTTFT UIBU BSF DPOTJEFSFE UIF FYBDU NFUIPEPMPHZ DIPTFO GPS UIF NPEFMMJOH BOE FTUJNBUJPO BOE UIF UZQF PG DPOTUSBJOU JNQPTFE

*O UFSNT PG JOWFTUNFOU TUSBUFHZ UIF JEFB IBT CFDPNF SBUIFS DPOTFOTVBM UIBU TPNF WBSJBOU PG B MJGFDZDMF BQQSPBDI TIPVME CF GPMMPXFE "OUPMÎO FU BM EJTDVTTFT UIF EJGGFSFOU FMFNFOUT UIBU TIPVME CF QVU UPHFUIFS UP DSFBUF B HPPE SFUJSFNFOU TPMVUJPO 5IF TUSBUFHZ TIPVME àSTU BOE GPSFNPTU SFDPHOJTF UIF MJGFDZDMF EJNFOTJPO PG UIF JOWFTUNFOU QSPCMFN 5IJT NFBOT UIBU UIF PQUJNBM QPSUGPMJP TIPVME FYQMJDJUMZ BDDPVOU GPS UIF JOWFTUNFOU IPSJ[PO CVU BMTP UIF SJTL UPMFSBODF PG UIF JOWFTUPS TFF (PNFT FU BM 7JDFJSB BNPOH NBOZ PUIFST

BT UIPTF UXP QBSBNFUFST XJMM EFUFSNJOF IPX NVDI TIPVME CF BMMPDBUFE UP SJTLZ BTTFUT 8IFO EFTJHOJOH QBDLBHFE QSPEVDUT JU NJHIU CF EJGàDVMU UP QFSGFDUMZ DVTUPNJTF UIFTF TUSBUFHJFT UP FBDI JOWFTUPS CVU B SFBTPOBCMF BQQSPYJNBUJPO EPFT OPU OFDFTTBSZ MFBE UP ESBTUJD XFMGBSF MPTTFT TFF GPS JOTUBODF .BSUFMMJOJ BOE .JMIBV BOE UIF FMFNFOUT CFMPX PO QBDLBHFE QSPEVDUT 3FTUSJDUJPOT UP BTTFU BMMPDBUJPO +BQBOhT %$ QMBOT BSF OPU TVCKFDU UP NVDI TUBUVUPSZ SFTUSJDUJPOT POMZ SFBM FTUBUF JT OPU BMMPXFE BOE 5BJXBOhT DPMMFDUJWFMZ NBOBHFE -1' EPFT OPU IBWF JOWFTUNFOU SFTUSJDUJPOT )PXFWFS CPUI BTTFU BMMPDBUJPO XFJHIUT BOE BTTFU DMBTTFT BSF TVCKFDU UP TUBUVUPSZ SFTUSJD UJPOT JO NFNCFS DIPJDF TZTUFNT TVDI BT )POH ,POHT .1' TDIFNFT ,PSFBT %$ QMBOT BOE $IJOBT 64* JOEJWJEVBM BDDPVOUT BOE &"T 8IJMF TVDI SFTUSJDUJPOT NBZ CF NPUJWBUFE CZ UIF QSPUFDUJPO PG SFUBJM JOWFTUPST UIFZ DBO BMTP SFTUSJDU UIF PQUJPO NFOV UP MPX ZJFMEJOH



.BZ



BTTFUT UP UIF EFUSJNFOU PG BTTFU BDDVNV MBUJPO ! *O ,PSFB UIFSF JT B CBO OPU POMZ PO JOEJWJEVBM TUPDLT CVU BMTP PO FRVJUZ GVOET BOE FWFO CBMBODFE GVOET ,PSFBO %$ QMBOT JOWFTU FYDMVTJWFMZ JO EFQPTJU BDDPVOUT BOE QSJODJQBMHVBSBOUFFE JOTVSBODF QSPEVDUT BT XFMM BT JOWFTUNFOU QSPEVDUT XIFSF UPUBM FRVJUZ FYQPTVSF DBOOPU FYDFFE .PPO /PNVSB ! *O )POH ,POH QSPIJCJUFE BTTFUT BOE TUSBUFHJFT JODMVEF MFOEJOH EJSFDU QSPQFSUZ MPBOT NPSUHBHFT KFXFMMFSZ BSU BOE DPMMFDUJCMFT )PM[NBOO FU BM

TFDVSJUJFT CPSSPXJOH BOE VOMJTUFE FRVJUZ 3FTUSJDUJPOT BQQMZ UP EFSJWBUJWFT IFEHJOH SFQPT TUPDL JOWFTUJOH JOWFTUNFOU HSBEF EFCU TFDVSJUJFT DPOWFSUJCMF CPOET MJTUFE XBSSBOUT MFOEJOH BOE MFWFSBHF $PNNPEJUJFT BSF DBQQFE BU BOE NBZ JODMVEF HPME &5'T TJODF "QSJM ! $IJOFTF 64* JOEJWJEVBM BDDPVOUT IBWF UP CF FOUJSFMZ JOWFTUFE JO EFQPTJUT BOE HPWFSONFOU CPOET -FDLJF BOE 9JBP

FYDFQU XIFO BTTFUT IBWF CFFO USBOTGFSSFE UP /44' ! $IJOFTF &"T DBO JOWFTU VQ UP JO FRVJUJFT BOE BSF SFRVJSFE UP BMMPDBUF BU MFBTU UP HPWFSONFOU CPOET BOE EFQPTJUT 5IF NJOJNVN DBTI FRVJW BMFOU SFRVJSFE BMMPDBUJPO IBT ESPQQFE UP GSPN CFGPSF 5IF FRVJUZ BMMPXBODF JO &"T JT HSFBUFS UIBO PUIFS WPMVOUBSZ JOEJWJEVBM QSPEVDUT ;IFOH -FDLJF BOE 9JBP 4PNF PG UIFTF SFTUSJDUJPOT BSF DMFBSMZ DPVOUFSQSPEVDUJWF BOE XIJMF UIFZ NJHIU QSFWFOU JOEJWJEVBMT GSPN UBLJOH PWFSMZ

SJTLZ QPTJUJPOT JO DFSUBJO BTTFU DMBTTFT BU UIF TBNF UJNF UIFZ FGGFDUJWFMZ QSFWFOU UIF BEPQUJPO PG NPEFSO BTTFUMJBCJMJUZ NBOBHFNFOU QSBDUJDFT XIJDI XPVME NBYJNJTF UIF QSPCBCJMJUZ PG BUUBJOJOH UIF MPOHUFSN PCKFDUJWF XIJMF SFTQFDUJOH TIPSUUFSN QSVEFOUJBM DPOTUSBJOUT "TTFU BMMPDBUJPO QSFGFSFODFT 5XP QBSBEJHNT FYJTU BNPOHTU &BTU "TJBhT %$ QMBOT B WFSZ DPOTFSWBUJWF TUBODF GPDVTFE PO DBQJUBM QSFTFSWBUJPO +BQBO ,PSFB $IJOB

BOE B NPSF CBMBODFE CVU BMTP WFSZ BDUJWF BQQSPBDI GBWPVSJOH DBQJUBM HSPXUI )POH ,POH 5BJXBO *O ,PSFB $IJOB BOE +BQBO SFTUSJDUJPOT PO BTTFU BMMPDBUJPO BOE BMMPXFE JOTUSV NFOUT BSF TUSJDUFS UIBO GPS SFTFSWF GVOET BOE DPSQPSBUF %# QMBOT XIJDI MJNJUT UIF BQQFBM PG %$ QSPEVDUT m BOE JOEFFE HVBSBOUFFE QSPEVDUT BSF UIF QSFGFSSFE JOWFTUNFOU DIPJDF JO UIFTF UISFF NBSLFUT FTQFDJBMMZ JO TDIFNFT XJUI NFNCFS DIPJDF (VBSBOUFFT JODMVEF NJOJNVN JOUFSFTU SBUFT DBQJUBM QSPUFDUJPO PS CPUI +BQBOFTF %$ QMBOT BSF àYFEJODPNF PSJFOUFE BMUIPVHI UIJT OPU UIF SFTVMU PG JOWFTUNFOU SFTUSJDUJPOT /PNVSB $IJOFTF &"T JOWFTU NPSF UIBO PO BWFSBHF JO DBTI BOE àYFE JODPNF ;IFOH *OWFTUNFOUT JO OPOUSBEJUJPOBM BTTFU DMBTTFT BSF SBSF "T PG 5BJXBOhT -1' XBT UIF POMZ POF QSFQBSJOH GPS BMUFSOBUJWF JOWFTU NFOUT JODMVEJOH PWFSTFBT BCTPMVUF SFUVSO TUSBUFHJFT PWFSTFBT 3&*5T BOE JOUFSOBUJPOBM "O &%)&$3JTL *OTUJUVUF 1VCMJDBUJPO


.BZ



5BCMF "HHSFHBUF BTTFU BMMPDBUJPOT PG %$ 4DIFNFT JO &BTU "TJB

Country

Scheme

Equities

Domestic Equities

Int'l Equities

Fixed Income

Domestic Fixed Int'l Fixed Income Income

Cash & Short-Other Term

Japan

DC Schemes

12%

9%

3%

9%

5%

4%

45%1

32%2

Taiwan

LPF

47%

28%

19%

31%

17%

15%

21%

..

Hong Kong

MPFs

62%

..

..

22%

..

..

16%

..

China China

USI IAs

.. 11%

.. ..

.. ..

.. 51%

.. ..

.. ..

100%4 38%

.. ..

3

EAs5

1

1 - Figure refers to deposits. 2 - Figure includes 22% principal-guaranteed insurance products and 10% balanced funds. 3 - Figures refer to aggregate averages as reported by the MPFA. 4 - Figure includes an unspecified plan dependent amount of government bonds. 5 - Figures are aggregate averages as reported by Zheng using MHRSS data from 2010.

4PVSDF "OOVBM SFQPSUT 5BCMF "HHSFHBUF %$ BMMPDBUJPOT CZ WFIJDMF UZQF

Country

Scheme

Bank Deposits & Guaranteed Cash Products

Other

Hong Kong Japan Korea China

MPFs DC Schemes DC Schemes USI IAs

0.3%1 45% N/A

42%3 33%4 10%5 ..

100%6

22%2 22% 65% ..

Equity Funds Fixed Income Funds 34% 2% .. .. N/A N/A .. ..6

Lifecycle Funds ● ● ● ◌

1 - Figure refers to money market funds. 2 - Figure includes capital preservation funds and guaranteed funds. 3 - Figure refers to balanced funds. 4 - Figure refers to investment trusts and other types of instruments including lifecycle funds. 5 - Figure refers to balanced mutual funds and lifecycle funds. 6 - Chinese USI individual accounts are known to be held primarily in deposits but a plan dependent portion is allocated to government bonds.


DPNNPEJUJFT *HOJUFT "TJB C

CVU àSTU BMMPDBUJPOT XFSF ZFU UP CF NBEF 5IF QPMBSJTBUJPO PG BMMPDBUJPOT DIPJDFT EFTDSJCFE JO UBCMF JT TPNFUJNFT FYQMBJOFE JO UIF MJUFSBUVSF BT UIF SFTVMU PG MJNJUFE àOBODJBM NBSLFU EFWFMPQNFOU 'PS FYBNQMF )POH ,POH BOE 5BJXBO BSF LOPXO UP IBWF VOEFSEFWFMPQFE EFCU NBSLFUT XIJDI PGGFST BO FBTZ FYQMBOBUJPO GPS UIF IJHIFS BMMPDBUJPOT UP FRVJUJFT JO UIFTF UXP KVSJTEJDUJPO TFF 'JHVSF 4JNJMBSMZ 4IJ BOE .PL C DMBJN UIBU àOBODJBM NBSLFUT XFSF VOEFSEFWFMPQFE JO .BJOMBOE $IJOB MPOH BGUFS QFOTJPO QPPMJOH CFHBO XIJDI NBZ IFMQ FYQMBJO UIF IJTUPSJDBM MBDL PG BTTFU NBOBHFNFOU

)PXFWFS JO +BQBO XIJDI JT B TPQIJTUJDBUFE FDPOPNZ BOE IBT BEWBODFE àOBODJBM NBSLFUT BOE JOTUJUVUJPOT JOWFTUNFOU DIPJDFT DPOUJOVF UP CF FYUSFNFMZ DPOTFS WBUJWF 5IF MFWFM PG àOBODJBM FYQFSUJTF JT UIVT OPU UIF POMZ GBDUPS DPOUSJCVUJOH UP UIF VOEFSEFWFMPQNFOU PG %$ JOWFTUNFOU m SFHVMBUJPO EFàOJUFMZ IBT B SPMF UP QMBZ 1BDLBHFE QSPEVDUT 6OGPSUVOBUFMZ EFGBVMU PQUJPOT BSF TUJMM UPP PGUFO GPMMPXJOH B SBUIFS JOBQQSPQSJBUF TUSBUFHZ BT QSFWJPVTMZ EFTDSJCFE VOEFS UIF QSFUFODF UIBU QMBO NFNCFST DBO TFMFDU BOE JNQMFNFOU NPSF TVJUBCMF TUSBUFHJFT TIPVME UIFZ XJTI UP 5IFZ TIPVME UIFO UBLF UIF SFMBUJWFMZ WBOJMMB OPU TFMGTVGàDJFOU QSPEVDUT BOE DPNCJOF UIFN JO BO PQUJNBM



.BZ



'JHVSF %PNFTUJD BOE àYFE JODPNF CJBTFT JO %$ 4DIFNFT JO &BTU "TJB

100%

80%

60%

Taiwan's LPF 40%

Equity Allocation

Hong Kong's MPFs

20% China's EAs China's USI IAs 100%

80%

60%

40%

20%

0%

0%

Domestic Allocation


GBTIJPO UP DBUFS UP UIFJS PXO OFFET QSFGFS FODFT CFMJFGT BOE XFBMUI 5IFZ TIPVME JNQMFNFOU UIF QSPQFS TBGFUZ NFDIBOJTNT UP SFTQFDU TIPSUUFSN DPOTUSBJOUT XIJMF NBYJNJTJOH UIF QSPCBCJMJUZ UP SFBDI MPOH UFSN HPBMT *U IBSEMZ TFFNT SFBTPOBCMF UP FYQFDU SFUBJM JOWFTUPST UP IBWF UIF SFTPVSDFT UP NBLF TVDI JOWFTUNFOU EFDJTJPOT PO UIFJS PXO 5IF QSPCBCMF SFTVMU UIFO JT UIBU JOEJWJEVBMT XJMM TUBZ QPPSMZ EJWFSTJàFE BOE FYQPTFE UP SJTLT UIFZ EP OPU FWFO LOPX UIFZ CFBS "MUFSOBUJWFMZ UIFZ XJMM QBZ IFGUZ QSFNJB GPS CMBDLCPY QSPEVDUT UIBU DMBJN UP GVMàM UIFJS SFRVJSFNFOUT XJUI PGUFO MJUUMF UP QSPWF JU

8IFO EFTJHOJOH SFUJSFNFOU TPMVUJPOT JU JT JNQPSUBOU UP SFDPHOJTF UIBU OPU BMM JOWFTUPST DBO IBWF QFSGFDUMZ DVTUPNJTFE JOWFTUNFOU TUSBUFHJFT IFODF UIF OFFE GPS QBDLBHFE SFUJSFNFOU QSPEVDUT .BSUFMMJOJ BOE .JMIBV UBDLMF UIF RVFTUJPO PG EFTJHOJOH CFUUFS UBSHFUEBUF GVOET UIBU DPOGPSN UP UIF HFOFSBMMZ BDDFQUFE CFTU QSBDUJDFT GPS BTTFUMJBCJMJUZ NBOBHFNFOU 0OF QSPCMFN JT UIBU GPS NPTU QMBO NFNCFST JU JT UPP DPTUMZ UP GPMMPX B DVTUPNJTFE JOWFTUNFOU TUSBUFHZ UIBU XPVME JODPSQPSBUF UIF TQFDJàD DIBSBDUFSJTUJDT PG UIF JOEJWJEVBM FTQFDJBMMZ SFHBSEJOH JOWFTUNFOU IPSJ[PO BOE SJTL QSFGFSFODFT



.BZ



.BSUFMMJOJ BOE .JMIBV TIPX UIBU JU JT QPTTJCMF UP à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

PO BO JOEJWJEVBM MFWFM BOOVJUJTBUJPO JT UIF POMZ XBZ UP NBOBHF UIJT SJTL UISPVHI NBSLFU NFDIBOJTNT "OOVJUJTBUJPO XIJDI FNCFET UIF DPTU PG MPOHFWJUZ SJTL JT NPTUMZ WPMVOUBSZ UISPVHIPVU &BTU "TJBhT %$ QMBOT BOE JT MJLFMZ UP SFNBJO BU JUT DVSSFOU FNCSZPOJD TUBUF XJUIPVU BOZ OFX SFHVMBUPSZ JOJUJBUJWF 5IF VOEFSEFWFMPQFE NBSLFU GPS BOOVJUJFT 8PSMEXJEF UIF BOOVJUZ NBSLFU JT JOTVGà DJFOUMZ EFWFMPQFE XIFSF BOOVJUJTBUJPO JT OPU NBOEBUPSZ .JUDIFMM BOE 1JHHPUU 1VSDIBTJOH BO BOOVJUZ NJHIU DPNF BU B TJHOJàDBOU QSFNJVN #SJFO BOE 1BOJT

MPPL BU UIF JTTVFT JO UIF NBSLFU GPS BOOVJUJFT BOE BSHVFT BGUFS #SPXO

UIBU UIFSF

NJHIU CF B OVNCFS PG SBUJPOBM FYQMBOBUJPOT GPS UIFN 5IF QSFNJB NJHIU QBZ GPS BEWFSTF TFMFDUJPO BT QFPQMF XIP BOOVJUJTF UFOE UP MJWF MPOHFS UIBO BWFSBHF 0UIFS UZQFT PG CFOFàUT QVCMJD QFOTJPOT NJHIU BMSFBEZ QSPWJEF B GPSN PG BOOVJUJTBUJPO 5IFSF NJHIU CF SJTL TIBSJOH BOE CFRVFTU NPUJWFT XJUIJO GBNJMZ VOJUT XIJDI XPVME MFBE UP VOEFS BOOVJUJTBUJPO BMUIPVHI JU JT OPU DMFBS IPX JNQPSUBOU UIFTF BDUVBMMZ BSF 'JOBMMZ UIFSF NJHIU CF B OVNCFS PG TIPSUDPNJOHT JO UIF BOOVJUZ NBSLFU TVDI BT UIF JOBEF RVBUF QSPUFDUJPO BHBJOTU DFSUBJO SJTLT GPS DPOTVNQUJPO OPUBCMZ JOáBUJPO "NPOH UIF QBDLBHFE WBSJBCMF BOOVJUZ QSPEVDUT B OVNCFS PG TBGFUZ iBEEPOTi BSF BWBJMBCMF OPUBCMZ GPS JOáBUJPO QSPUFDUJPO VOEFS WBSJPVT GPSNT PG HVBSBOUFFE NJOJNVN CFOFàUT $PNNPO FYBNQMFT JODMVEF TPNF DPNCJOBUJPO PG SBUDIFUT BOE SPMMVQT BU RVBSUFSMZ PS BOOVBM GSFRVFODZ 5IF GBJSOFTT PG QSJDJOH PG UIPTF PQUJPOT IPXFWFS JT RVJUF EJGàDVMU UP BTTFTT GPS UIF CVZFS 0UIFS JOTVGàDJFODZ JO UIF BOOVJUZ NBSLFU DPVME JODMVEF UIF CBOLSVQUDZ SJTL GPS TPNF PG UIF BOOVJUZ QSPWJEFST XIJDI JT EJGàDVMU UP IFEHF BHBJOTU BMUIPVHI UIF SFHVMBUPS NJHIU UIFO TUFQ JO UP NJUJHBUF UIF JNQBDU "OOVJUJTBUJPO JO SFHJPOBM %$ QMBOT JT NBOEBUPSZ POMZ JO UIF DBTF PG 5BJXBOhT -1' TJODF BOE GPS OFX NFNCFST *U JT BMTP QPTTJCMF JO +BQBO JT UIF BDDPVOU CBMBODF BOE DPOUSJCVUJPO QFSJPE BSF TVGàDJFOU )PXFWFS FWFO JO UIFTF TZTUFNT NFNCFST DBO DIPPTF



.BZ



B MVNQ TVN JO DBTF UIFZ EP OPU NFFU UIF DSJUFSJB UP SFDFJWF BO JODPNF TUSFBN ,PSFBO SFGPSN JO DPSQPSBUF QFOTJPOT IBT TFU UIF HPBM UP JNQSPWF BOOVJUJTBUJPO CZ PGGFSJOH JODPNF TUSFBNT PWFS ZFBST BU QSFTFOU POMZ àYFE UFSN BOOVJUJFT XJUI àWF ZFBS EVSBUJPOT BSF BWBJMBCMF *HOJUFT "TJB D *O $IJOB WBSJBCMF BOOVJUJFT IBWF CFFO MBVODIFE BT QJMPUT POMZ SFDFOUMZ *1"TJB 5PXBSET NBOEBUPSZ BOOVJUJTBUJPO 7PMVOUBSZ BOOVJUJTBUJPO JT VOMJLFMZ JO UIF QSFTFODF PG B SJTLMFTT JODPNF TUSFBN GSPN OBUJPOBM QFOTJPOT 4BLBNPUP BNPOH PUIFST .PSFPWFS NFNCFS QSFGFSFODFT GPS UIF MVNQ TVN JO +BQBO GPS FYBNQMF BSF ESJWFO CZ B MBDL PG USVTU JO UIF FNQMPZFShT àOBODJBM TUSFOHUI NPSF GBWPVSBCMF UBYBUJPO UIF QPTTJCJMJUZ PG CFOFàU SFEVDUJPO UIF EFTJSF UP QBZ PGG NPSUHBHFT 6SBUB BOE B UFOEFODZ UP BWPJE WPMVOUBSZ BOOVJUJTBUJPO JO UIF QSFTFODF PG B OBUJPOBM QFOTJPO QBJE NPOUIMZ 5IF +BQBOFTF BOOVJUZ NBSLFU JT UIF NPTU EFWFMPQFE JO UIF SFHJPO CVU JU SFNBJOT TNBMM .JUDIFMM BOE 1JHHPUU BOE JT EPNJOBUFE CZ àYFEUFSN BOOVJUJFT XJUI ZFBS EVSBUJPO 6SBUB 5IF JTTVF PG MPOHFWJUZ SJTL JT NPTU QSPNJOFOU JO )POH ,POH XIFSF .1'T DPNQSJTF UIF POMZ NBOEBUPSZ QFOTJPO TZTUFN ZFU EP OPU PGGFS QPTUSFUJSFNFOU TPMVUJPOT

.BOEBUPSZ BOOVJUJTBUJPO TIPVME CF TFSJPVTMZ DPOTJEFSFE JO NBOEBUPSZ %$ TZTUFNT FTQFDJBMMZ XIFSF UIFZ DPNQSJTF B MBSHF QPSUJPO PG QFOTJPO BTTFUT FH 5BJXBO BOE )POH ,POH

$PODMVTJPO *O UIJT TFDUJPO XF IBWF SFWJFXFE UIF EFWFM PQNFOU BOE TPNF QPUFOUJBM JNQSPWFNFOUT PG EFàOFEDPOUSJCVUJPO QMBOT JO &BTU "TJB %$ PQUJPOT OPX FYJTU JO )POH ,POH +BQBO ,PSFB 5BJXBO BOE $IJOB *O )POH ,POH UIFZ XFSF JOUSPEVDFE UXFOUZ ZFBST BHP BT B WPMVOUBSZ UZQF PG PDDVQBUJPOBM QFOTJPO QMBO CFGPSF CFDPNJOH UIF NBJO NBOEBUPSZ QFOTJPO TDIFNF JO BT XFMM BT UIF MBSHFTU %$ TZTUFN JO &BTU "TJB +BQBO JOUSPEVDFE WPMVOUBSZ JOEJWJEVBM %$ BDDPVOUT JO BOE DPSQPSBUF %$ TDIFNFT UFO ZFBST MBUFS &MTFXIFSF %$ QMBOT IBWF POMZ FYJTUFE GPS MFTT UIBO B EFDBEF .BOEBUPSZ %$ FYJTUT JO 5BJXBO TJODF *O ,PSFB NBOEBUPSZ %$ QMBOT IBWF POMZ FYJTUFE TJODF DPOUJOHFOU PO FNQMPZFST OPU DIPPTJOH UP FTUBCMJTI %# QMBOT JOTUFBE 5IVT XJUI UIF FYDFQUJPO PG )POH ,POH %$ QMBOT SFNBJO B NBSHJOBM EJNFOTJPO PG UIF QFOTJPO TZTUFN JO UIF SFHJPO FWFO UIPVHI BTTFUT BSF CFHJOOJOH UP HSPX JO B OVNCFS PG KVSJTEJDUJPOT FTQFDJBMMZ 5BJXBO *O %$ BTTFUT SFQSFTFOUFE PG (%1 JO )POH ,POH CVU MFTT UIBO FWFSZ XIFSF FMTF JO UIF SFHJPO *O +BQBO XIFSF %$ QMBOT IBWF FYJTUFE GPS NPSF UIBO B "O &%)&$3JTL *OTUJUVUF 1VCMJDBUJPO


.BZ



EFDBEF CVU SFNBJO WPMVOUBSZ DVNVMBUJWF BTTFUT BNPVOU UP MFTT UIBO PG (%1 5IF XFMMEPDVNFOUFE TIJGU UP %$ QFOTJPOT JO PUIFS QBSUT PG UIF XPSME IBT OFWFSUIFMFTT CFHVO JO UIF SFHJPO FYDFQU JO )POH ,POH XIFSF %$ DPWFSBHF JT IJHIFS BTTFUT BSF HSPXJOH SBQJEMZ JO PUIFS DPVOUSJFT BMCFJU TUBSUJOH GSPN B MPX CBTF *O 5BJXBO XIFSF %$ IBT CFFO NBEF NBOEBUPSZ NFNCFSTIJQ HSPXUI SFBDIFT QFS ZFBS *O DPVOUSJFT XIFSF %$ XBT POMZ JOUSP EVDFE SFDFOUMZ BOE BMUFSOBUJWF PQUJPOT BSF BWBJMBCMF FH ,PSFB

JU SFNBJOT UP CF TFFO JG UIJT HSPXUI XJMM DPOUJOVF PS OPU *OEFFE CPUI à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

QPTUSFUJSFNFOU JOWFTUNFOU TPMVUJPOT UIBU XPVME KVTUJGZ DIBOOFMMJOH FYJTUJOH TBWJOHT JOUP TVDI BDDPVOUT 'JSTU XIFO QMBOT BSF WPMVOUBSZ JODFOUJWFT BSF MJNJUFE CFDBVTF FNQMPZFFT BSF FJUIFS OPU BMMPXFE PS OPU JODFOUJWJTFE UP TBWF JO %$ QMBOT 5IF FNQMPZFS BMTP PGUFO BDUT BT B à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àDJBMMZ MPX BT EJTDVTTFE JO TFDUJPO *U GPMMPXT UIBU JO PSEFS GPS %$ QMBOT UP EFWFMPQ BOE IFMQ SFTPMWF UIF JTTVFT PG GVOEJOH MJGFDZDMF EFàDJUT PG BHFJOH QPQVMBUJPOT JO &BTU "TJB UIFZ OFFE UP CF NBEF NPSF BDDFTTJCMF BOE BUUSBDUJWF BOE UIFZ OFFE UP DPOUSJCVUF UP QSPWJEJOH



.BZ



QPTUSFUJSFNFOU JODPNF TPMVUJPOT BT PQQPTFE UP B WFSZ JOFGàDJFOU GPSN PG TBWJOHT TVCTUJUVUJPO

!

/FYU PVS SFWJFX IJHIMJHIUT UIF GPMMPXJOH TUZMJTFE GBDUT BCPVU %$ QMBOT JO &BTU "TJB )ZCSJEJUZ !

!

!

!

)ZCSJEJUZ PS UIF MFWFM PG SJTL TIBSJOH CFUXFFO QMBO TQPOTPS BOE QMBO DPOUSJC VUPST JT MJNJUFE JO %$ QMBOT BWBJMBCMF JO UIF SFHJPO *OEJWJEVBM BDDPVOUT JO )POH ,POH BOE $IJOB UZQJDBMMZ DPSSFTQPOE UP UIF zQVSFh GPSN PG %$ QMBOT JO XIJDI JOEJWJEVBMT CFBS BMM JOWFTUNFOU SJTL BOE NVTU EFDJEF PO BO JOWFTUNFOU TUSBUFHZ $PMMFDUJWF %$ TDIFNFT JO 5BJXBO PS JO TPNF DBTFT JO +BQBO PGGFS TPNF SJTL QPPMJOH 1SJODJQBM HVBSBOUFFT BOE JOEFYBUJPO DMBVTFT BSF BWBJMBCMF JO TPNF KVSJTEJD UJPOT FTQFDJBMMZ JO ,PSFB 5BJXBO BOE +BQBO

$PTUT !

!

!

!

!

$POUSJCVUJPO SBUFT BSF VTVBMMZ TFU BU JOBQQSPQSJBUF MFWFMT CPUI NJOJNVN BOE NBYJNVN MFWFMT DBO CF UPP MPX 5IF UBY EFEVDUJCJMJUZ PG DPOUSJCVUJPOT GPS UIF FNQMPZFS JT FJUIFS JOTVGàDJFOUMZ BUUSBDUJWF PS VODMFBS (VBSBOUFFT XIFO UIFZ FYJTU BSF TFMEPN UBLFO JOUP BDDPVOU JO UIF JOWFTUNFOU TUSBUFHZ 7FTUJOH BOE QPSUBCJMJUZ DBO CF VOBUUSBDUJWF JO UIF DBTF PG FBSMZ PDDVQB

$PTUT BSF DPOTJEFSFE UP CF IJHI JO NPTU TZTUFNT -PXDPTU JOWFTUNFOU TPMVUJPOT BNPOH PUIFS UIJOHT DBO IFMQ JNQSPWF DPTUFGàDJFODZ $IJOB JT BO FYDFQUJPO BOE NBOBHFSTh GFFT BSF DBQQFE BU B MFWFM DPOTJEFSFE UPP MPX

$IPJDF BOE EFGBVMU PQUJPOT !

!

!

*ODFOUJWFT UP TBWF !

UJPOBM %$ TDIFNFT FWFO UIPVHI UIJT BTQFDU IBT JNQSPWFE JO SFDFOU ZFBST )JHI DPNQMJBODF XJUI SFHBSE UP FNQMPZFS DPOUSJCVUJPOT FYJTUT POMZ JO )POH ,POH XIFSF OPODPNQMJBODF JT B DSJNJOBM PGGFODF

!

!

.PTU %$ QMBOT JO UIF SFHJPO PGGFS B DIPJDF PG JOWFTUNFOU PQUJPOT UP QMBO NFNCFST CVU OPU $IJOFTF PS 5BJXBOFTF QMBOT 0OMZ )POH ,POH BOE ,PSFB PGGFS B DIPJDF PG QFOTJPO QMBO QSPWJEFS 3FHVMBUFE EFGBVMU PQUJPOT EP OPU FYJTU %FGBVMU QMBOT BSF UZQJDBMMZ MPX SJTL QSJODJQBM HVBSBOUFFE QSPEVDUT PS CBMBODFE GVOET OFJUIFS PG XIJDI JT BQQSPQSJBUF GSPN B MJGFDZDMF QPJOU PG WJFX *OWFTUNFOU PQUJPOT DBO BMTP CF UPP OVNFSPVT JO +BQBO PS )POH ,POH GPS FYBNQMF MFBEJOH UP UIF XFMMEPDVNFOUFE zDIPJDF QBSBMZTJTh /POàOBODJBM SJTLT FTQFDJBMMZ UP EP XJUI SFHVMBUPSZ DIBOHF BSF TFMEPN VOEFS TUPPE PS UBLFO JOUP BDDPVOU

*NQSPWFNFOUT



.BZ



!

!

!

!

!

%$ QMBOT MJLF BOZ QFOTJPO JOWFTUNFOU TPMVUJPO TIPVME EFàOF MPOHUFSN PCKFD UJWFT FJUIFS JO UFSNT PG UBSHFU XFBMUI PS FYUSFNF FWFOU NJOJNJTBUJPO UIVT BMMPXJOH B QSPQFS BTTFUMJBCJMJUZ BQQSPBDI -JGFDZDMF BQQSPBDIFT UIBU UBLF UIF JOWFTUNFOU IPSJ[PO PG UIF QBSUJDJQBOUT JOUP BDDPVOU TIPVME CF TUBOEBSE BOE JNQSPWF PO FYJTUJOH TUBUJD BQQSPBDIFT GPVOE JO zUBSHFU EBUFh BOE zMJGFDZDMF GVOETh CZ BQQMZJOH B EZOBNJD JOWFTUNFOU TPMVUJPO "TTFU BMMPDBUJPO NVTU CF EFTJHOFE VTJOH BEFRVBUF CVJMEJOH CMPDLT JO PSEFS UP NBYJNJTF EJWFSTJàDBUJPO CFOFàUT )PXFWFS GVMMZ DVTUPNJTFE TPMVUJPOT BSF UPP FYQFOTJWF GPS SFUBJM JOWFTUPST BOE QSFQBDLBHFE TUBOEBSEJTFE POFT NVTU CF NBEF BWBJMBCMF UP SFTQPOE UP B SBOHF PG QPTUSFUJSFNFOU JOWFTUNFOU OFFET *O NBSLFUT XIFSF %$ QMBOT BSF NBOEBUPSZ BOE NBZ FWFO CF UIF POMZ QFOTJPO TZTUFN BWBJMBCMF FH )POH ,POH

GPSNT PG NBOEBUPSZ CVU SFHVMBUFE BOOVJUJTBUJPO TIPVME CF DPOTJEFSFE CZ UIF SFHVMBUPS UP TVQQPSU UIF EFWFMPQNFOU PG BO BOOVJUJ TBUJPO JOEVTUSZ XIJMF FOTVSJOH DPNQFU JUJWF QSJDFT



.BZ

$PODMVTJPOT



.BZ


$PODMVTJPOT

*O DPODMVTJPO XIJMF UIF EFNPHSBQIJD BOE JOWFTUNFOU DIBMMFOHFT UIBU DIBSBDUFSJTF UIF JTTVF PG SFUJSFNFOU QMBOOJOH BOE JODPNF HFOFSBUJPO JO &BTU "TJB BSF TJHOJàDBOU BOE TFFNJOHMZ JOUSBDUBCMF BEESFTTJOH UIF SFHVMBUPSZ DIBMMFOHF EJTDVTTFE BCPWF JO SFMBUJPO UP QFOTJPO SFTFSWFT DPSQPSBUF BOE PDDVQBUJPOBM EFàOFECFOFàU QMBOT BOE DPSQPSBUF BOE JOEJWJEVBM EFàOFE DPOUSJCVUJPO QMBOT DBO HP B MPOH XBZ UP BEESFTT UIF àSTU UXP TFUT PG JTTVFT UIBU XF IBWF JEFOUJàFE EFNPHSBQIJDT BOE UIF àOBODJBM EJTUPSUJPOT JOUSPEVDFE CZ UIF EFWFMPQNFOU NPEFM PG &BTU "TJBhT FDPOPNJFT %FNPHSBQIJD USFOET BSF EJGàDVMU UP PGGTFU PS SFWFSTF BOE UIF SJTF PG MJGFDZDMF EFàDJUT EPDVNFOUFE CZ -FF BOE .BTPO

TVHHFTUT UIBU JO UIF BCTFODF PG OFX TPVSDFT PG JODPNF UP TVQQPSU UIF JODSFBTF PG QFS DBQJUB DPOTVNQUJPO PG UIF FMEFSMZ JO BO BHFJOH TPDJFUZ TFSJPVT DPOTFRVFODFT DBO CF FYQFDUFE JO UFSNT PG FJUIFS àTDBM TUBCJMJUZ PS JOUFSHFOFSBUJPOBM TPDJBM GSJDUJPOT $SVDJBMMZ UIF QBDF PG QPQVMBUJPO BHFJOH JO &BTU "TJB MFBWFT MJUUMF UJNF GPS BEBQUBUJPO BOE TQSFBEJOH UIF DPTU PG UIF MBTU TUBHF PG UIF EFNPHSBQIJD USBOTJUJPO PWFS TFWFSBM HFOFSBUJPOT -JLFXJTF TUSVDUVSBM àOBODJBM EJTUPSUJPOT BOE NBDSPFDPOPNJD JNCBMBODFT DSFBUF BO JOWFTUNFOU FOWJSPONFOU GPS QFOTJPO TBWJOHT JO XIJDI B OVNCFS PG TUBOEBSE IZQPUIFTFT PG BDBEFNJD àOBODF TVDI BT NFBO SFWFSTJPO NBZ OPU BQQMZ GPS MPOH FOPVHI UP NBLF IPSJ[POCBTFE JOWFTUNFOU TUSBUFHJFT FGGFDUJWF BOE CFODINBSLJOH UIF

CVJMEJOH CMPDLT PG BO PQUJNBM EJWFSTJàDBUJPO TUSBUFHZ NPSF EJGàDVMU *O UVSO UIJT NBZ JODSFBTF UIF OFFE UP JOWFTU JOUFSOBUJPOBMMZ UP PGGTFU TVDI EJTUPSUJPOT .PSFPWFS UIF MPOHFS UIF FWFOUVBM SF CBMBODJOH PG TPNF PG &BTU "TJBhT NBJO FDPOPNJFT UBLFT UIF NPSF QBJOGVM JU JT MJLFMZ UP CF GPS B XIPMF HFOFSBUJPO PG TBWFST "T UIF SFCBMBODJOH PG +BQBO GSPN UIF T POXBSET JMMVTUSBUFT B NVMUJ EFDBEF TMVNQ DBO GPMMPX B CBMBODFTIFFU SFDFTTJPO NBLJOH MPOHUFSN JOWFTUNFOU QMBOOJOH EJGàDVMU )PXFWFS UIF JOUSPEVDUJPO PG TDJFOUJàD JOWFTUNFOU DPODFQUT JOUP UIF EFTJHO PG QFOTJPO TBWJOHT QMBOT XJMM POMZ NBLF UIFTF JTTVFT NPSF FYQMJDJU BOE DPOUSJCVUF UP B OFDFTTBSZ SFHVMBUPSZ BOE NBDSPQSVEFOUJBM EFCBUF BCPVU UIF GVUVSF PG TVDI GBTU BHFJOH TPDJFUJFT 'PS GVOEFE QFOTJPO TZTUFNT UP EFMJWFS MFWFMT PG XFBMUI JO SFBM UFSN UIBU BSF DPNNFO TVSBUF XJUI QPTUSFUJSFNFOU DPOTVNQUJPO PCKFDUJWFT TDJFOUJàD TPMVUJPOT JEFOUJàFE JO UIF MJUFSBUVSF SFDPNNFOE UIF DPNCJOFE JNQMFNFOUBUJPO PG UISFF JOWFTUNFOU QBSBEJHNT J -JBCJMJUZESJWFO JOWFTUNFOU PS -%* JJ MJGFDZDMF JOWFTUNFOU PS -$* BOE JJJ

SJTL DPOUSPM JOWFTUNFOU PS 3$* BT EFàOFE JO $PDRVFNBT !

1FOTJPOT BSF MPOHUFSN MJBCJMJUJFT XIJDI BSF JO GBDU EZOBNJD BOE EFQFOE PO TFWFSBM UJNFWBSZJOH GBDUPST 1FOTJPO TPMVUJPOT TIPVME UIFSFGPSF CF EFTJHOFE JO PSEFS UP NBYJNJTF UIF MJLFMJIPPE PG NFFUJOH UIPTF



.BZ


$PODMVTJPOT

!

!

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àOFE CZ UIF SFHVMBUPS 5IJT JT UIF SJTLDPOUSPMMFE JOWFTUJOH 3$* BQQSPBDI

*O UIJT DPOUFYU TFWFSBM JNQPSUBOU QPJOUT DBO CF NBEF SFHBSEJOH UIF JNQSPWFNFOU PG GVOEFE QFOTJPO QMBOT JO &BTU "TJB *OWFTUNFOU TPMVUJPOT GPS QFOTJPO SFTFSWFT DBO IFMQ NJUJHBUF UIF JNQFOEJOH QVCMJD QFOTJPO DSJTJT "T XF IBWF BSHVFE BCPWF UIF FYJTUFODF PG UIFTF MBSHF SFTFSWFT SFQSFTFOUT B VOJRVF PQQPSUVOJUZ GPS &BTU "TJBhT HPWFSONFOU UP BEESFTT UIF VOTVTUBJOBCJMJUZ PG QVCMJD QBZ BTZPVHP QFOTJPO TDIFNFT SFTVMUJOH GSPN QPQVMBUJPO BHFJOH 4FJ[JOH UIJT PQQPSUVOJUZ XJMM SFRVJSF NBLJOH GVOEBNFOUBM DIBOHFT JO UIF XBZ SFTFSWF

GVOET IBWF CFFO DPOUSPMMFE BOE NBOBHFE GPS UIF QBTU EFDBEFT BOE BEPQUJOH JOWFTUNFOU NBOBHFNFOU QSPDFTTFT BOE UPPMT UIBU XJMM BMMPX QFOTJPO SFTFSWFT UP BDIJFWF XIBU TIPVME CF UIFJS TPMF PCKFDUJWF UP TVQQPSU UIF QVCMJD QFOTJPO TZTUFN CZ NJOJNJTJOH UIF CVSEFO PG QFOTJPO MJBCJMJUJFT PO GVUVSF HFOFSBUJPOT XIJMF FOTVSJOH BEFRVBUF QVCMJD QFOTJPO QSPWJTJPO 5IF NBJO DIBOHFT SFRVJSFE JODMVEF DMFBSMZ EFàOJOH UIF MPOHUFSN PCKFDUJWFT BOE TIPSUUFSN DPOTUSBJOUT PG SFTFSWF GVOET BOE QVUUJOH JO QMBDF UIF HPWFSOBODF NFDIBOJTNT UIBU HVBSBOUFF UIBU UIFZ POMZ BUUFNQU UP BDIJFWF UIFTF PCKFDUJWFT XIJMF SFTQFDUJOH CJOEJOH DPOTUSBJOUT 8JUI XFMMEFàOFE PCKFDUJWFT BOE DPOTUSBJOUT BEFRVBUF TDJFOUJàD JOWFTUNFOU TPMVUJPOT DBO CF EFàOFE BOE JNQMFNFOUFE BOE JO UVSO UIF TVTUBJOBCJMJUZ PG QVCMJD QFOTJPO TZTUFN DBO CF HSFBUMZ JNQSPWFE %FàOFECFOFàU DPSQPSBUF BOE PDDVQB UJPOBM QMBOT DBO JNQSPWF CPUI TQPOTPS BOE NFNCFS PVUDPNFT JG BEFRVBUF JOWFTUNFOU NBOBHFNFOU JT JNQMF NFOUFE "T XF IBWF EJTDVTTFE BCPWF WPMVOUBSZ TDIFNFT IBWF OPU MFE UP UIF DSFBUJPO PG B TUSPOH DPSQPSBUF QFOTJPO TFDUPS CVU JOTUFBE IBWF CFDPNF BO BWBUBS PG UIF SFUJSFNFOU BMMPXBODF QSFGFSFODF UIBU IBT IJTUPSJDBMMZ EFàOFE &BTU "TJBO DPSQPSBUF DVMUVSF $PSQPSBUF %# QFOTJPOT JO &BTU "TJB QMBZ B SPMF BT B TPVSDF PG EFGFSSFE QBZ UP SFXBSE MPZBM FNQMPZFFT BOE QSPWJEF MPOH "O &%)&$3JTL *OTUJUVUF 1VCMJDBUJPO


.BZ


$PODMVTJPOT

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à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

EPXOTJEF JOTVSBODF BOE JNQSPWF UIF TBGFUZ PG UIF JOWFTUNFOU TUSBUFHZ 4FDPOE TJODF &BTU "TJBhT %# GVOET JO UIFJS JNNFOTF NBKPSJUZ POMZ QBZ B MVNQ TVN MPOHFWJUZ BOE NPTU JOáBUJPO SJTL SFNBJOT XJUI NFNCFST NBLJOH QSJWBUF %# QMBOT B DSVEF UZQF PG IZCSJE QMBO "MPOH XJUI UIF TVSQMVT TIBSJOH TVHHFTUFE BCPWF HSFBUFS SJTL TIBSJOH CFUXFFO QMBO NFNCFST BOE TQPOTPST EVSJOH UIF QPTUSFUJSFNFOU QFSJPE DBO CF FOWJTBHFE FWFO UIPVHI JU NBZ SFRVJSF B SFHVMBUPSZ JOUFSWFOUJPO UP CF QPTTJCMF 5IF EFWFMPQNFOU PG NBOEBUPSZ BOOVJUJ TBUJPO BT BMSFBEZ QSPQPTFE JO 4JOHBQPSF BMPOH XJUI àOBODJBM DPOUSBDUT BMMPXJOH UIF NBOBHFNFOU PG MPOHFWJUZ SJTL GPS TQPOTPST BSF BNPOHTU UIF TPMVUJPOT SFRVJSJOH GVUVSF EFWFMPQNFOUT PG &BTU "TJBhT àOBODJBM TFDUPS BOE NBSLFUT %Fà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



.BZ


$PODMVTJPOT

#VU &BTU "TJBhT %$ TDIFNFT DSFBUF GFX JG BOZ JODFOUJWFT UP VTF UIFN JOTUFBE PG SFHVMBS TBWJOHT BDDPVOUT 5IFZ BMTP GBJM UP PGGFS NVDI JO UIF XBZ PG QPTU SFUJSFNFOU JOWFTUNFOU TPMVUJPOT UIBU XPVME KVTUJGZ DIBOOFMMJOH FYJTUJOH TBWJOHT JOUP TVDI BDDPVOUT

SFHVMBUFE EFGBVMUT TIPVME CF EFTJHOFE XJUI UIFTF DSJUFSJB JO NJOE

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

BOE BMMPX GPS BO "-. BQQSPBDI XIJMF UBLJOH JOWFTUNFOU IPSJ[POT JOUP BDDPVOU MJGFDZDMJOH 5IFZ TIPVME BMTP NBLF UIF CFTU VTF PG MPXDPTU JOWFTUNFOU TPMVUJPOT VTJOH PQUJNBMMZ EFTJHOFE CVJMEJOH CMPDLT 4UBOEBSEJTFE QBDLBHFT TIPVME GVSUIFS SFEVDF DPNQMFYJUZ BOE DPTUT 'JOBMMZ "O &%)&$3JTL *OTUJUVUF 1VCMJDBUJPO


.BZ


$PODMVTJPOT



.BZ

"QQFOEJY +BQBO



.BZ


"QQFOEJY +BQBO

5BCMF 'VOEFE 1FOTJPO 4DIFNFT JO +BQBO

Scheme

Mandatory

Eligibility

AUM (lcu bn)

% GDP

2011

Management

58

2009

Brief Description

37% 25%

75

386

2011

Est.

171,800 116,600

2%

500

596 225

2011

AUM AUM as of (USD bn) (EUR bn) 1,790 1,383 1,215 938 2011

7,200

10%

771 292

338

2011


Occupational DB Employees Pension Funds (EPFs)

Self-employed individuals in provinces with at least 1000 subscribers

11,000 5,500

2,600

1% 0%

2% 1%

1%

27 3

115 57

27

21 2

89 44

21

2009

2011

2011

Yes

No


2,600 300

Private

Public

No


1965 - Fully funded corporate DB pension plans - Set up as separate funds by employer or occupation to manage part of public assets and accummulate additional assets

Yes

48,000

16% 6%

438

32

Reserves Employee Pension Insurance (EPI)

74,000 28,000

9%

42

Yes

Private-sector employees at workplaces with more than 500 staff

42,000

1%

1942 - Reserve-backed PAYG plan for private sector - Managed by the Public Government Pension Investment Fund (GPIF) 1961 - Reserve-backed PAYG plan for private sector - Managed by the Public Government Pension Investment Fund (GPIF)

No


4,000

National Pension Insurance (NPI)

No


Public

No

2001 - Fully funded corporate DC pension plans - Set up as contracts Private with financial service providers

No

Private-sector employees and their spouses Self-employed individuals, part-time employees, unemployed spouses Public-sector employees (some private-sector occupations on voluntary basis but excluded from these statistics)


Private

2001 - Fully funded corporate DB pension plans - Set up as separate Private funds by employer or occupation, or as contracts with financial service providers

1949 - Reserve-backed PAYG plans for public sector (private sector voluntary MAAs excluded) - Managed by separate entities according to occupation, e.g. local government (Chikyoren), private schools (Shigaku Kyosai), municipal personnel (Shichousonren)


1962 - Partially funded corporate DB pension plans - Set up as contracts with financial service providers 1991 - Individual annuities which can be purchased by the single or by multiples - Managed collectively by the National Pension Fund Association (NPFA)

2001 - Fully funded individual DC pension plans offered by employers -Private Set up as contracts with financial service providers

.BZ


Corporate DC Corporate DC Schemes Individual DC Individual DC Schemes



"QQFOEJY +BQBO

5BCMF 'VOEFE 1FOTJPO 4DIFNFT 1BSBNBUFST

Scheme Reserves Employee Pension Insurance (EPI) National Pension Insurance (NPI) Mutual Aid Associations (MAAs) Occupational DB Employees Pension Funds (EPFs) Defined-Benefit Corporate Pensions (DBCPs) Tax-Qualified Pension Plans (TQPPs) *** in abolition National Pension Funds (NPFs) Corporate DC Corporate DC Schemes


% Empl. Population 8.00%

JPY 15,100

8.00%

Dependent on assessible income

Not applicable

Dependent on assessible income

Contribution Limits

as of 55% None

Plan dependent, min 6.00%


Beneficiaries (th) 2011 31%

Plan dependent, min 6.00%


13,000 2011 7%

as of

34,400 2011 24,000 2009

Participants (th)

19,400 2011 3,900

Plan dependent, usually Plan dependent min 2.00% Plan dependent, max 1/2 Plan dependent of total contribution

4,500 2009

Plan dependent

7%

No min required

2009

12%

No min required

Max JPY 68,000 per month including contribution to NPI

2,500 N/A

2%

Plan dependent

4,500 2011 7,300 2011 N/A

N/A

None

Plan dependent, usually min 2.00% Plan dependent

1,200 2011 N/A

1%

420

2011

550 2011

Allowed

Plan dependent

Plan dependent

None

7%

0%

N/A

4,100 2011 N/A

N/A

- Max JPY 25,500 per month for employees whose employer offers a DB pension - Max JPY 51,000 per month for employees for whom the DC fund is the primary employer fund - Employee contribution may not exceed employer contribution

132 2011 N/A

- Max JPY 68,000 per month including contribution to NPI for the self-employed - Max JPY 23,000 per month for private-sector employees whose employer does not offer a pension fund - Max JPY 25,500 per month for employees whose employer offers a DB pension - Max JPY 51,000 per month for employees for whom the DC fund is the primary employer fund

.BZ




"QQFOEJY +BQBO

5BCMF 'VOEFE 1FOTJPO 4DIFNFT 1BSBNFUFST DPOUJOVFE

Scheme Reserves Employee Pension Insurance (EPI) National Pension Insurance (NPI)

Taxation


Ret. Age

60 Tax-exempt contributions

Benefit Composition

- Basic pension plus remuneration-related benefit paid as monthly pension Includes survivor, disability and other benefits - Basic pension plus flat-rate additional benefit paid as monthly pension Includes survivor, disability and other benefits

Premature Withdrawal No No



Annual accrual of 0.55% of 40 years of contributions lifetime average salary N/A 40 years of contributions


25 years of contributions 25 years of contributions


Plan and occupation dependent accrual rates

Guaranteed substitutional benefit

- Wage indexation before 65 Inflation indexation after 65


Wage and inflation indexation


N/A

72%

N/A

60%

Target Repl. Rate

None

N/A

N/A

No clear rules

N/A

65 years of age

- Lump sum allowed with less than 25 year of contributions - Includes occupational addition - Can include survivor, disability and other benefits

No


- Basic substitutional benefit plus additional benefit - Basic benefit and at No least half of the additional benefit should be paid as a life annuity - Lump sum possible for supplementary benefit with 3 years of contributions, with financial penalty - Annuity possible for supplementary benefit with 20 years of contributions

No clear rules

None

N/A

In a hybrid setting, a positive interest rate based on the government rate is guaranteed

Immediate vesting implied None

Varies with Guaranteed principal retirement age depending on choice of investment strategy

N/A

No clear target

- Annuity benefit - Lump sum allowed for account balance below JPY 15,000 - No Can include disability, survivor and other benefits

- Employer contributions 10 years of contributions vesting is plan dependent, normally 3 years Employee contributions are vested fully and immediately

Varies with Guaranteed principal retirement age depending on choice of investment strategy

No clear rules

- Tax-deductible contributions Benefits and investment income taxed at withdrawal - Deduction for annuities - Special rate for lump sums tied to seniority

- Tax-deductible contributions Benefits and investment income taxed at withdrawal

All contributions are vested 10 years of contributions fully and immediately

- Tax-deductible contributions - Plan dependent - Annuity benefit - Lump sum possible with financial penalty No Partial tax deduction at withdrawal but only with at least 3 years of contributions - Hybridity possible via cash of benefits depending on their type -balance plans Special corporate tax may apply to assets - Tax-deductible employer Annuity benefit only N/A contributions until 2012 - Special asset tax may apply Tax-exempt individual - Hybridity present - Benefits purchased and received as annuity lots No contributions up to the contribution limit

Plan dependent, but - 1 month contributions Plan dependent benefit reduction possible for basic benefit - Plan dependent for the additional benefit but cannot exceed 20 years of contributions Plan dependent, but Plan dependent but Plan dependent benefit reduction possible cannot exceed 20 years of contributions

65

Mutual Aid Associations (MAAs) 65

Plan dependent

60

Corporate DB Employees Pension Funds (EPFs) 60


Tax-Qualified Pension Plans (TQPPs) *** in abolition National Pension Funds (NPFs) 65

60

60

- Annuity benefit - Lump sum allowed for account balance below JPY 500,000 No or less than 3 years of contributions - Can include disability, survivor and other benefits

.BZ


Corporate DC Corporate DC Schemes


- Tax-deductible contributions Benefits and investment income taxed at withdrawal



"QQFOEJY +BQBO

'JHVSF 4UBUF 4VCTJEZ GPS UIF /BUJPOBM BOE &NQMPZFF 1FOTJPO 45 40 35 30 25 20 15 10 5 0 2009

2010

2011

2012

2013

2014

2015

2020

2025

2030

EPI Subsidy (JPY tn)

2040

2050

2060

2070

2080

2090

2100

2105

NPI Subsidy (JPY tn)

4PVSDF .JOJTUSZ PG )FBMUI -BCPVS 8FMGBSF

'JHVSF &WPMVUJPO PG UIF "TTFU "MMPDBUJPO PG UIF (1*'

2011 2010 2009 2008 2007 2006 2005 2004 2003 0%

10%

20%

Domestic Bonds

30%

40%

International Bonds

50%

60%

Short-Term Assets

70% Domestic Stock

80%

90%

100%

International Stocks


'JHVSF &WPMVUJPO PG UIF "TTFU "MMPDBUJPO PG $PSQPSBUF %# QMBOT JO +BQBO

2010 2009 2008 2007 2006 2005 2004 2003 2002 0%

10%

20%

30%

40%

50%

60%

70%

80%

Domestic Bonds

International Bonds

General Accounts

Short-Term Assets

Domestic Stocks

International Stocks

Hedge Funds

Other

90%

100%

4PVSDF 1'"



.BZ


"QQFOEJY +BQBO

'JHVSF "WFSBHF SFUVSOT BOE WPMBUJMJUZ PG +BQBOFTF QFOTJPOT

1.8% 1.7%

NPFs

1.6%

GPIF

1.5%

Risk

1.4% 1.3% 1.2% DB Plans

1.1% 1.0% 0.9% 0.8% 2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%

18.00%

Returns




.BZ

"QQFOEJY ,PSFB



.BZ


"QQFOEJY ,PSFB

5BCMF 'VOEFE 1FOTJPO 4DIFNFT JO ,PSFB

Country and Type Reserves National Pension Fund (NPF)

Government Employees Pension System (GEPS) Korean Teachers Pension Fund (KTPF) Corporate DB Corporate DB Plans

Corporate DC Corporate DC Plans



Reserve-backed PAYG plan for private sector

Public

Public

Yes

Yes

Yes


1988

Reserve-backed PAYG plan for public sector

Public

Brief Description

1960

Reserve-backed PAYG plan for private school teachers

Yes

Established

1975

Private

Eligibility

Employed and selfemployed workers (unemployed contribute voluntarily) Government employees and public school teachers Private school teachers


2005

Yes

- Partially funded corporate DB pension plans - Set up as contracts with financial service providers

Private


2005

No

Self-employed, unemployed and retired individuals

- Fully funded corporate DC pension plans - Set up as contracts with financial service providers

Private

Private

Yes

2005

2011

Self-employed, unemployed and retired individuals

4,600

356,100 342,000

1%

0%

29% 28%

24 24

9

4

5 5

18 18

7

3

2011

2011

2011

2011

2011

%GDP

9,500

2% 2%

6 6

3 3

AUM (billion lcu)

26,500 26,500

1% 1%

3 3

AUM AUM AUM as (billion (billion of USD) EUR) 321 248 308 238 2011

6,600 6,600

0% 0%

N/A

3,600 3,600

Recently Recently Recently Recently introduced introduced introduced introduce d

.BZ


- Fully funded DC pension plans available to retirees in the post-retirement stage, or employees in the accumulation stage - Set up as contracts with financial service providers - Fully funded DC pension plans available to retirees in the post-retirement stage, or employees in the accumulation stage - Retirees and those changing jobs are obliged to set up an IRP and move their assets from corporate plans - Set up as contracts with financial service providers



"QQFOEJY ,PSFB

5BCMF 'VOEFE 1FOTJPO 4DIFNFT 1BSBNBUFST Participants as of (th)

Scheme Reserves National Pension Fund (NPF)

19,000

2011

1,050

2009

260

2009

Corporate DB Corporate DB Plans

3,300

Corporate DC Corporate DC Plans

Government Employees Pension System (GEPS) Korean Teachers Pension Fund (KTPF)


Beneficiaries as of (th)

Eligibility

Employer Employee Contribution Contribution

Contribution Limits

78%

4.50%

4.50%

Pensionable income cannot exceed 120% of average earnings

290 2009 Government employees and public school teachers 30 2009 Private school teachers

4%

7.00%

7.00%

1%

7.00% from government and employer

7.00%

Dependent on pensionable income Dependent on pensionable income

2011

N/A N/A Employees at workplaces with at least 5 staff

14%

Plan dependent Allowed


3,300

2011

N/A N/A Employees at workplaces with at least 5 staff

14%

8.30%


3,300

2011

N/A N/A Self-employed, unemployed and retired individuals

14%

80

2011

N/A N/A Self-employed, unemployed and retired individuals

0%

Plan dependent Plan dependent No employee cocontribution if employer-sponsored Plan dependent Plan dependent Employed individuals can contribute max KRW 12 million per year


12,000 2011 Employed and self-employed workers (unemployed contribute voluntarily)

% of Empl. Population

Allowed

'JHVSF "TTFU "MMPDBUJPO PG UIF /1' 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

2003

2004 Domestic Fixed Income

2005

2006

Overseas Fixed Income

2007 Domestic Equity

2008

2009

Overseas Equity

2010

2011

Alternative Investment

4PVSDF /BUJPOBM 1FOTJPO 'VOE



.BZ


"QQFOEJY ,PSFB

5BCMF %# 4DIFNFT 1BSBNFUFST

Scheme

60

Ret. Age

65

Reserves National Pension Fund (NPF)

Government Employees Pension System (GEPS)

65

55

Taxation




Benefit Composition

- Basic minimum benefit plus earning-related benefit paid as monthly pension - Lump sums possible only if member becomes public employee or has less than 10 years of contributions - Includes disability and survivor benefit - Lump sum if less than 20 years - Annuity benefit possible if more than 20 years of contributions - Includes survivor benefits and an additional retirement allowance - Lump sum if less than 20 years contributions - Annuity benefit possible if more than 20 years of contributions - Includes disability, survivor, medical, disaster benefits and loans to members

- Annuity benefit for 5 years - Lump sum possible, especially when changing jobs - Should not be less than one month's average salary per year of service - Hybridity possible in combination with DC plan

No

No


Accrual of 0.75% of average salary per year of contributions


No

- Accrual of 1.90% of average salary per year of service - Progressive accrual rate for the additional retirement allowance Progressive accrual rate averaging to 1.90% of average salary per year of service

No



Indexation and Target Repl. Guarantees Rate

50%

76%

- 60 years of age - 55 years of - 20 years of age contributions - 10 years of contributions

20 years of service

- Inflation indexation above the annual inflation rate - Wage indexation

N/A

65%

33 years of service

1 year of service

Wage indexation

- Inflation indexation - Guaranteed interest in case of lump sum Inflation indexation

33 years of service

None

Accrual of one monthly 10 years of salary based on average contributions final wage per year of service

.BZ


Korean Teachers Pension Fund (KTPF)

Corporate DB Corporate DB Plans




"QQFOEJY ,PSFB

5BCMF %$ 4DIFNF 1BSBNFUFST

Scheme Corporate DC Corporate DC Plans



Ret. Age

55

55

55

Taxation


- Tax-deductible contributions up to KRW 4 million per year across plans - Tax-exempt benefits up to KRW 6 million per year - Preferrential taxation for annuity benefits - Tax-deductible contributions up to KRW 4 million per year across plans - Tax-exempt benefits up to KRW 6 million per year - Preferrential taxation for annuity benefits

Benefit Composition

- Annuity benefit for 5 years - Lump sum possible, especially when changing jobs - Should not be less than one month's averag salary per year of service - Hybridity possible in combination with DB plan

- Annuity benefit for 5 years - Lump sum possible

- Annuity benefit for 5 years - Lump sum possible



Upon long- Immediate vesting term illness or implied purchase of first residence







None

- Wage indexation - Guaranteed principal or interest rate depending on choice of product

N/A

N/A


None


N/A


None


.BZ




"QQFOEJY ,PSFB

5BCMF .BJO DPSQPSBUF QFOTJPO QSPWJEFST

Service Provider Samsung Life Shinhan Bank Kookmin Bank Woori Bank IBK HMC Investment Securities Hana Bank Kyobo Life Nonghyup KDB Samsung Fire Mirae Asset Securities Korea Life KEB LIG Insurance Samsung Securities Hi Investment Securities Korea Investment Securities Morae Asset Life Lotte Inurance

Pension Assets (KRW bn)

One-Year Change 7,416 4,449 4,439 4,031 3,023 2,760 2,217 2,188 1,841 1,797 1,637 1,630 1,378 1,141 1,020 884 869 719 653 456

64% 67% 56% 69% 76% 119% 71% 66% 53% 103% 50% 57% 97% 76% 59% 75% 2066% 70% 75% 147% 4PVSDF 5PXFST 8BUTPO C

5BCMF $PSQPSBUF 1FOTJPO *OWFTUNFOU 3FTUSJDUJPOT

DB Listed domestic and international stocks may not exceed 30%. International bond funds may not exceed 50%. Balanced funds must be 50% or less. Equity funds must be under 50%.

DC Individual stocks, equity funds and balanced funds are not permitted. Deposit accounts, principal-guaranteed insurance products, and some other investment products are allowed. Maximum equity exposure cannot exceed 40%. 4PVSDF /PNVSB

5BCMF /1' *OWFTUNFOU 1PMJDZ CZ "TTFU $MBTT

NPF Investment Policy by Asset Class The bond portfolio aims to achieve stable long-term performance and is mostly buy-and-hold. Diversification is secured across bond types and maturity horizons, and alpha is targeted via adjustments in portfolio duration. The domestic equity portfolio maintains a long-term horizon but aims to maximise returns within a certain level of risk. Internal equity management is mostly done passively and comprises shares of the investable universe. The proportion of internally managed funds is roughly equal to that managed externally. Under external mandates, active management is emphasised and diverse investment strategies and styles are preferred. When it comes to international investing, it aims to enhance existing positions, which means an increase in returns at similar levels of risk as those in the domestic market, or the same performance at lower levels of risk. Alternative investments are geared towards excess performance. The universe includes real estate, social infrastructure, venture capital, corporate restructuring and private equity. 4PVSDF /BUJPOBM 1FOTJPO 'VOE



.BZ

"QQFOEJY 5BJXBO



.BZ


"QQFOEJY 5BJXBO

5BCMF 'VOEFE 1FOTJPO 4DIFNFT JO 5BJXBO

Scheme Reserves National Pension Insurance Fund (NPIF)

Est.

Brief Description

2008 - Reserve-backed PAYG system for uninsured individuals - Managed by the Bureau of Labour Insurance (BLI) 1950 - Reserve-backed PAYG system for private sector - Managed by the Bureau of Labour Insurance (BLI)

Management

Mandatory

60 3

47 3

2011

2011

AUM (lcu AUM (AUM % GDP as of bn) (USD bn) EUR bn)

13% 1%

12

Eligibility

1,790 100

15

2011

No

3%

15

Public

450

19

2011

Yes

4%

5

Public

560

6

2011


1%

13

No

180

17

Public


4%

2011

Yes

500

19 0

Public


25 0

Yes

5% 0%

Public

750 7 Private school teachers

2011

Yes

19

Private

25


5%

Yes

750

Public

.BZ



Labour Retirement Fund 1984 - Reserve-backed supplementary PAYG system for (LRF) private sector *** closed to new - Replaced by Labour Pension Fund (LPF) members since 2005 - Managed by the Bureau of Labour Insurance (BLI) Government Employee & 1958 - Reserve-backed PAYG system for public sector School Staff Insurance - Managed by Bank of Taiwan (BOT) (GESSI) Public Service Pension 1995 Reserve-backed supplementary PAYG system for Fund (PSPF) public sector Public DC Private Teachers Pension 2010 Individual retirement savings accounts for private Fund (PTPF) school teachers Labour Pension Fund 2005 - Fully funded supplementary DC plans for private (LPF) sector - Managed collectively by the Bureau of Labour Insurance (BLI)



"QQFOEJY 5BJXBO


Reserves National Pension Insurance Fund (NPIF) 9,700

3,800

Participants (th)

2011

2011

as of

190

1,200

Beneficiaries (th)

2011

2011

as of

Eligibility

Scheme


N/A


2011

N/A

440

2011

2011

2011

630

210

% of Empl. Population 20%

90%



Contribution Limits

Dependent on pensionable base of TWD 17,280 per month Dependent on pensionable income of max TWD 43,900 per month

A maximum of coverage years applies

15% of salaries

3%

32%

5%

None 7.50% from government and employee 5.25% from 2% employer and 0.75% from government Plan None dependent, min 2.00% 6%

5%

Allowed

6%

1%

7.80% from employer and government 6%

2011

Private school teachers

51%

630

N/A


Contributions are calculated based on twice the basic pay N/A

2011

9.70% from government

2011

155

4%

67

2011

Contributions are calculated based on twice the basic pay Employee contributions cannot exceed 6% 5,500


3,400


Labour Retirement Fund (LRF) *** closed to new members since 2005 Government Employee & School Staff Insurance (GESSI) Public Service Pension Fund (PSPF) Public DC Private Teachers Pension Fund (PTPF) Labour Pension Fund (LPF)

.BZ




"QQFOEJY 5BJXBO


Scheme

55

60

65

Ret. Age

- Employee contributions deductible up to TWD 24,000 per year - Lump sum benefit deductible up to TWD 150,000 - Monthly benefits deductible up to TWD 650,000 per year



Taxation

Reserves National Pension Insurance Fund (NPIF)

55


Labour Retirement Fund (LRF) *** closed to new members since 2005 Government Employee & School Staff Insurance (GESSI)


60


Public Service Pension Fund (PSPF)

65

60

Benefit Composition

- Monthly benefit only - Includes disability, maternity, death and survivor benefits - Means tested - Annual benefit - Lump sum with reduction possible with less than 15 years of contributions - Includes injury, old age, medical care, disability, survivor and maternity benefits Lump sum only

- Monthly benefit - Lump sum possible with less than 30 years of service - Includes disability, death and parental leave benefits - Monthly benefit after 50 years of age - 4% of basic salary for each year in service is paid monthly - Lump sum with reduction otherwise - Includes survivor benefit and severance pay - Monthly benefit possible after 15 years of contributions - Lump sum - Monthly benefit - Lump sum possible for members enrolled before 2009 - Includes survivor benefits

N/A


Inflation and wage indexation

N/A


N/A



15 years of 1 year of contributions contributions


Accrual of 1.3% of pensionable base per year of coverage

15 years at Guaranteed same employer interest rate

Premature Withdrawal No

25 years at same employer


Age and years in service should sum to 85

10 years of service

5 years of service


N/A


N/A

N/A

N/A

95%

N/A

N/A

No

Accrual of 1.55% of highest average monthly pensionable salary per coverage year

30 years of service

- Accrual of 4 basic salaries for each year of service

25 years of service

None

N/A

No

- Accrual of 2 end average salaries up to 15 years and 1 end average salary thereafter - 15 years service and seniority Accrual of 3 basic salaries for each year of service

N/A

None

No

No

Immediate full vesting

No

No

.BZ


Public DC Private Teachers Pension Fund (PTPF) Labour Pension Fund (LPF)

- Employee contributions deductible up to TWD 24,000 per year - Lump sum benefit deductible up to TWD 150,000 - Monthly benefits deductible up to TWD 650,000 per year - Employee contributions deductible up to TWD 24,000 per year - Lump sum benefit deductible up to TWD 150,000 - Monthly benefits deductible up to TWD 650,000 per year



"QQFOEJY 5BJXBO

'JHVSF 5BJXBOFTF 1FOTJPO 'VOET "TTFU "MMPDBUJPOT

NPIF

LIF

LRF

LPF

PSPF

0%

10%

20%

30%

40% Cash

50%

Fixed Income

60% Equity

70%

80%

90%

100%

Other

4PVSDF "OOVBM 3FQPSUT

'JHVSF 5BJXBOFTF 1FOTJPO 'VOET "TTFU "MMPDBUJPOCZ (FPHSBQIZ

NPIF#

LIF#

LRF#

LPF#

PSPF#

0%#

10%#

20%#

30%#

40%# Domes9c#

50%#

60%#

70%#

80%#

90%#

100%#

Interna9onal#




.BZ


"QQFOEJY 5BJXBO

'JHVSF 5BJXBOFTF 1FOTJPO 'VOET "MMPDBUJPO UP &YUFSOBM .BOEBUFT

LIF

LRF

LPF

PSPF

0%

10%

20%

30%

40%

50% In-House

60%

70%

80%

90%

100%

External


5BCMF 4FMG*NQPTFE "TTFU "MMPDBUJPO 3FTUSJDUJPOT BU 5BJXBOFTF 1FOTJPO 'VOET

Asset Class

LPF 10-30% 12-26% 22-38% 12-20% 14-25%

Bank Deposit Domestic Debt Securities Domestic Equity Securities Foreign Debt Securities Foreign Equity Securities

LRF 15-35% 13-30% 25-40% 7-15% 7-20%

4PVSDF 0GàDJBM XFCTJUFT BOE BOOVBM SFQPSUT

'JHVSF 1FSDFOUBHF QPJOUT EJGGFSFODF CFUXFFO HVBSBOUFFE BOE BDUVBM SBUF PG SFUVSO BU 5BJXBOFTF QFOTJPO GVOET 25 20 15 10

percentage points

5 0

2005

2006

2007

2008

2009

2010

2011

-5 -10 -15 -20 -25 -30 LPF

LRF

PSPF




.BZ


"QQFOEJY 5BJXBO

'JHVSF (VBSBOUFFE BOE BDUVBM SBUFT PG SFUVSO BU 5BJXBOFTF QFOTJPO GVOET 2.5%

2.0%

1.5%

1.0%

0.5%

0.0%

LPF

LRF Anunualised returns

PSPF

Annualised guaranteed returns




.BZ


"QQFOEJY 5BJXBO



.BZ

"QQFOEJY .BJOMBOE $IJOB



.BZ



5BCMF 'VOEFE 1FOTJPO 4DIFNFT JO $IJOB

Reserves National Social Security Fund (NSSF)

Scheme

1997

2000

Est.

Brief Description

Management

- Reserve fund managed by the National Public Council for Social Security Fund (NCSSF) - Not financed directly from pension contributions Public pension reserves accumulated Public independently in each province and backing PAYG plans

6% 2%

249

30 25

193

AUM AUM (USD bn) (EUR bn) 389 301 140 108

2010

2010

2011

as of

AUM (lcu bn) 2,420 870

4%

39 32

% GDP N/A

1,550

1% 1%

2010

Eligibility N/A

Urban workers

240 200

5

Mandatory

Yes

Urban workers

6

Yes

Public

0%

1997

Urban Social Insurance (USI)

Public DC Urban Social Insurance Individual Accounts (USI IAs)

40

2010

No

35 35

- Fully funded quasi-DC plans supplementing provincial reserves - Many USI IAs are notional in nature

45 45

2008

1% 1%

Rural workers above the age of 16 who are not students

280 280

Fully funded quasi-DC plans supplementing Public provincial reserves

Private

Urban workers

Fully funded corporate DC plans set up as contracts with financial service providers

No

2004

.BZ


Rural Social Insurance Individual Accounts (RSI IAs) Corporate DC Enterprise Annuities (EAs)





Scheme Reserves Urban Social Insurance (USI)

Public DC Urban Social Insurance Individual Accounts (USI IAs) Rural Social Insurance Individual Accounts (RSI IAs) Corporate DC Enterprise Annuities (EAs)

Participants as of (th) 194,000 2010

see USI 2010

103,000 2010

13,400 2010

Beneficiaries (th) as of

Eligibility

63,000 2010 Urban workers

see USI 2010 Urban workers

Employer Contribution Plan dependent, 20.00% on average


None

Plan dependent


None

Contribution Limits

Employer contribution max 300% of average provincial salary including contributions to USI

Plan dependent, Employer contribution max 8.00% on 300% of average provincial average salary including contributions to USI

From government, Plan dependent, RMB 500 per year plan dependent, RMB 100-500 min RMB 30 per per year year

see USI

2%

29,000 2010 Rural workers above 13% the age of 16 who are not students

N/A N/A Urban workers

Not required and Max 8.33% of annual wages not always or 12.50% of salaries allowed

.BZ






Country and Type

Ret. Age

Taxation

Benefit Composition

- Basic monthly benefit - Monthly pension paid as annuity benefit - Lump sum if less than 15 years of contributions - Monthly pension paid as annuity benefit - Lump sum if less than 15 years of contributions - Basic monthly benefit of min RMB 55 from government revenue - Additional monthly pension paid as annuity benefit - Lump sum possible if less than 15 years of - Lump sum - Annuity benefit


Full Benefit Eligibility - According to benefit formula - Plan dependent

Premature Withdrawal No

Contributions are credited 15 years of but accumulated funds were contributions used up for USI


No

Plan dependent


No

No



Target Repl. Rate

None

Plan dependent, 20% on average

- Indexation above inflation and below wage increase

Plan dependent

None

None

None Plan dependent, 38% on average - Guaranteed min 15% benefit - Guaranteed appreciation according to 1-year bank deposit

- 60 years of age - Offspring must participate

- Plan dependent Plan dependent None - Full vesting commonly after 5 years - Full immediate vesting of employee contributions if any

.BZ


Reserves Urban Social Insurance (USI) 60 for men, - Tax-deductible 55 for contributions women - Benefits and investment income taxed at withdrawal Public DC Urban Social Insurance 60 for men, - Tax-deductible Individual Accounts (USI 55 for contributions IAs) women - Benefits and investment income taxed at withdrawal Rural Social Insurance 60 - Tax-deductible Individual Accounts (RSI IAs) contributions - Benefits and investment income taxed at withdrawal Corporate DC Enterprise Annuities (EAs)

60 for men, - Tax-deductible employer 55 for contributions up to 5% women - Fully taxed employee contributions




5BCMF ,FZ SFHVMBUJPOT PG UIF $IJOFTF QFOTJPO GVOE TFDUPS

2000

1997

1995

Year 1991

Circular No. 42

Circular No. 26

Circular No. 6

Document Circular No. 33

State Council

State Council

State Council

Publisher State Council

MOLSS Document 20 MOLSS

MOLSS

MOF & MOLSS

2004 MOLSS Document 23

State Council

2001

2004 Circular No. 38

MOF,MOLSS & PBOC

CSRC

CIRC

CBRC

Ministry of Finance

Ministry of Human Resources & Social Security

China Securities Regulatory Commission

China Insurance Regulatory Commission

China Banking Regulatory Commission

Title Comments State Council Decision on Reform of Recommendations to build a three-pillar system comprised Enterprises Employee's Pension System of pools and individual accounts with contributions from employers and employees State Council Notice on Further Reform of Increase of social insurance contribution rates Enterprise Employees' Pension System State Council Decision on Unified Basic Broad principles for setting up provincial pension funds Pension System for Enterprise Employees following the 1997 recommendations of the World Bank State Council Notice on Pilot Project for The Liaoning and other similar pilots dealing with Consummation of Social Security System separation and full funding of individual account assets, simplification of the contributions structure, and tax stimulus and investment outsourcing for enterprise annuities Preliminary Rules on the Administration of Initial investment restrictions for the NSSF Investments of the National Social Security Fund Temporary Regulation on Enterprise Annuity Institutionalisation of supplementary workplace pension provision Temporary Regulation of Fund Management on Restrictions on EA equity investments Enterprise Annuity State Council Decision on Improve Enterprise Additional provisions on contribution rates, full funding for Worker Basic Pension System individual accounts and eligibility criteria for retirement income streams Preliminary Rules on the Management of Relaxation of restrictions on NSSF assets Overseas Investments of the National Social Security Fund Regulation of Fund Management in Enterprise Relaxation of restrictions on EA equity investments Annuities

MOHRSS

Ministry of Labor & Social Security

MOHRSS, CBRC, CSRC & CIRC

MOF

People's Bank of China

MOHRSS Document 11

2005

2006

2011 Footnotes:

MOLSS

.BZ


PBOC

4PVSDF "HBSXBMB )V 1JHHPUU BOE #FJ 0LTBOFO -FDLJF FU BM




5BCMF /44' .BOEBUFT Year

2008

Mandate

Benchmark

Target Net-of-Fees Excess Return p.a.

Tracking Error p.a.

Active Global (ex-US) Equities

MSCI World (ex US)

200 bps

Within 8%

Inde Inhanced US Equities

S&P 500

50 bps

Within 2%

Active Hong Kong Equities

FTSE China Hong Kong

300 bps

Within 8%

Active Global Fixed Income

Barclays Capital Global Aggregate Bond

100 bps

Within 2%

Cash

6-month LIBOR

0 bps

N/A

Active China Overseas Equities

MSCI China Index

N/A

N/A

Active APAC (ex Japan) Equities

MSCI AC Asia Pacific ex Japan

N/A

N/A

Active Emerging Marker Equity

MSCI Emerging Market

N/A

N/A

Active European Equities

MSCI Europe

N/A

N/A

Active Global Equities

MSCI World

N/A

N/A

Multi-Asset-Class

N/A

N/A

N/A

Emerging Markets (ex China) Lcoal Currency Debt

JP Morgan Global Emerging Market Diversified Debt

N/A

N/A

Natural Resources Equities

50% MSCI AC World Energy + 50% MSCI AC World Metals & Mining

N/A

N/A

Global Real Estate Equities

FTSE EPRA/NAREIT Developed

N/A

N/A

2009

2012

Managers AXA Rosenberg Alliance Bernstein State Street Global Advisor Janus INTECH T.Rowe Price Allianz UBS INVESCO Black Rock PIMCO Alliance Bernstein Black Rock Schroders Bosera Baring Martin Currie JF/JP Morgan Principal Batterymarch Morgan Stanley Schroders Newton Fidelity Prudential (UK) Wellington JP Morgan Lombard Odier Neuberger Berman Schroders Standish Stone Harbor AGF Investec JP Morgan RBC GAM AEW AMP Capital European Investors

4PVSDF "OOVBM SFQPSUT PGàDJBM XFCTJUFT

5BCMF /44' 1SJWBUF &RVJUZ .BOEBUFT

Fund Name China-Belgium Direct Equity Investment Fund Bohai Industrial Investment Fund Hony Capital Industrial Investment Fund 1 CDH Investments Private Equity Fund 1 Mianyang Science and Technology City Industrial Investment Fund Legend Ruizhi Ventrue Capital IDG Growth Investment Hony Capital 2010 Private Equity CDH Investment Private Equity (LP) China Broadband Capital Private Equity (LP) Legend Ruiqi Private Equity (LP) CITIC Captial Private Equity (LP) Shanghai Finacial Sector Investment Fund (LP)

Fund Manager Haitong-FortisPrivate Equity Fund Bohai Industrial IMC Hony Capital （LP） CDH Investments CITIC Private Equity Legend Capital IDG Capital Partners Hony Capital （LP） CDH Investments Chian Broadband Capital Legend Capital CITIC Captial (LP) GP Capital

4PVSDF "OOVBM SFQPSUT PGàDJBM XFCTJUFT



.BZ



5BCMF &OUSFQSJTF "OOVJUJFT -JDFODF 3FRVJSFNFOUT

Requirements for Registered Capital & net assets at all time

Other Requirements

Fee p.a.

Trustee

Administrator

Custodian

RMB 500 mn

RMB 500 mn

RMB 5 bn

Investment Manager Securities Pension MC Trust FMC, IAMC, SAMC and others

RMB 1 bn RMB 500 mn RMB 300 mn RMB 100 mn

Register and obtain the approval of a Chinese financial regulatory authority Maintain sound corporate governance and structure Staff a required number of specialists holding EA professional certificates Up to 0.2% of EA net value

Up to RMB 5 per month per Up to 1.2% of EA net value (1/5 of the 1.2% must be allocated Up to 0.2% of EA net value account to a risk reserve until it reaches 10% of EA net value

4PVSDF -FDLJF BOE 9JBP

5BCMF &OUSFQSJTF "OOVJUJFT -JDFODF )PMEFST

Company ICBC China Construction Bank China Merchants Bank Ping An PIC Tai Ping PIC China Life PIC Changjiang PIC Taikang PIC CITIC Trust

Trustee ● ● ● ● ● ● ● ● ●

Administrator ● ● ● ● ◌ ● ● ● ●

Cusotdian ● ● ● ◌ ◌ ◌ ◌ ◌ ●

Investment Manager ● ◌ ◌ ● ● ● ● ● ●


5BCMF &OUSFQSJTF "OOVJUJFT .BOBHFST License Date 2005

2007

FMC Name Bosera Funds HFT Investment China AMC Harvest Fund E Fund China Southern Fund Fullgoal Fund Yin Hua Fund CICC CITIC Securities Huatai AMC China Life PIC Ping An PIC Tai Ping PIC Guotai AMC ICBC Credit Suisse GF Fund Taikang FMC PICC FMC Changjiang PIC

Established 1998 2003 1998 1999 2001 1998 1999 2001 1995 1995 2005

1998 2005 2003

Foreign Partner BNP Paribas Power Corporation of Canada Deutsche Bank

BMO Financial GIC, Texa Pacific Group, etc. ACE Group

Generali Credit Suisse




.BZ



'JHVSF "OOVBM 3FUVSOT PG &OUFSQSJTFT "OOVJUZ .BOBHFST

10% 9% 8%

2010 Returns

7% 6% 5% 4% 3% 2% 1% 0%

0%

5%

10%

15%

20%

25%

30%

35%

Equity Allocation

4PVSDF ;IFOH

'JHVSF "TTFU "MMPDBUJPOT PG &OUFSQSJTFT "OOVJUZ .BOBHFST

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

21 enterprise annuity asset managers, anonymised Equity

Liquidity Product

Fixed Income

4PVSDF ;IFOH



.BZ

"QQFOEJY )POH ,POH



.BZ


"QQFOEJY )POH ,POH

5BCMF 'VOEFE 1FOTJPO 4DIFNFT JO )POH ,POH

Est.

Brief Description

Plan dependent

Eligibility

No

Full-time employees and selfemployed aged 18-65

Mandatory

Private

Yes

Plan dependent

Management

Private

No

Private

110 110

21% 21%

6% 6%

21 21

50 50

14 14

16 16

39 39

11 11

2012

2012

2012

as of

390 390

8% 8%

AUM AUM AUM % GDP (lcu bn) (USD bn) (EUR bn)

160 160

.BZ


Scheme Corporate DB Occupational Retirement 1993 - Fully funded corporate DB plans Schemes Ordinance (ORSO) set up as contracts with financial DB Schemes service providers - Some are supervised by the Mandatory Provident Fund Schemes Authority (MPFA) Occupational DC Mandatory Provident Fund 2000 - Fully funded occupational DC (MPF) Schemes plans set up as contracts with financial service providers - Supervised by the Mandatory Provident Fund Schemes Authority (MPFA) Corporate DC Occupational Retirement 1993 - Fully funded corporate DC plans Schemes Ordinance (ORSO) set up as contracts with financial DC Schemes service providers - Some are supervised by the Mandatory Provident Fund Schemes Authority (MPFA)



"QQFOEJY )POH ,POH


Scheme Corporate DB Occupational Retirement Schemes Ordinance (ORSO) DB Schemes Occupational DC Mandatory Provident Fund (MPF) Schemes

Corporate DC Occupational Retirement Schemes Ordinance (ORSO) DC Schemes

Plan dependent


Plan dependent


Plan dependent

Contribution Limits


Eligibility

2011 Plan dependent

Plan dependent

5.00%

Plan dependent

5.00%

Plan dependent

73%

8%

Dependent on max pensionable income of HKD 25,000

2011 Plan dependent

2011 Full-time employees and selfemployed aged 1865

Participants as of (th) 140

2,600

280

.BZ




"QQFOEJY )POH ,POH


Scheme

Ret. Age

Taxation

Benefit Composition

Lump sum only


Upon terminal illness or permanent departure from Hong Kong

Plan dependent

None

Plan dependent

Plan dependent

None

Plan dependent


Plan dependent

None

Plan dependent


Vesting or Accrual Full Benefit Rules Eligibility

All contributions are vested fully and immediately

- Lump sum Upon redundancy - Plan dependent - Hybridity possible in - Gradual vesting combination with DB after 3 years plan

.BZ


Corporate DB Occupational Retirement Plan Tax-free contributions and - Lump sum Upon redundancy - Plan dependent Schemes Ordinance (ORSO) dependent benefits - Hybridity possible in - Gradual vesting DB Schemes combination with DC after 3 years plan Occupational DC Mandatory Provident Fund 65 - Tax-deductible employer (MPF) Schemes contributions up to HKD 15,000 per year - Tax-deductible employee contributions up to HKD 15,000 per year - Tax-exempt benefits unless premature withdrawal Corporate DC Occupational Retirement Plan Tax deductible Schemes Ordinance (ORSO) dependent contributions DC Schemes



"QQFOEJY )POH ,POH

5BCMF .1' 5SVTUFFT

Name Ageas Trustees (HK) Ltd American International Assurance Company (Trustee) Ltd AXA China Region Trustees Ltd Bank Consortium Trust Company Ltd Bank of Communications Trustee Ltd Bank of East Asia (Trustees) Ltd BOCI-Prudential Trustee Ltd China Life Trustees Ltd HSBC Institutional Trust Services (Asia) Ltd HSBC Provident Fund Trustee (Hong Kong) Ltd InG Pension Trust Ltd Manulife Provident Funds Trust Company Ltd MassMutual Trustees Ltd Principal Trust Company (Asia) Ltd RBC Dexia Trust Services Hong Kong Ltd Sun Life Trustee Company Ltd

Schemes 1 3 2 5 1 2 2 1 2 9 2 2 1 3 3 1

Options per Scheme 3 25 10 10-20 11 12 11 9 5-15 3-15 8 10-25 13 5-15 5-25 13

4PVSDF .1'"

5BCMF *OWFTUNFOU SFTUSJDUJPOT JO ), QFOTJPO GVOET

MPF Schemes Not allowed to lend more than 10% of fund assets at any given time and only if such activity will bring additional net income for participants without affecting their interests negatively. Collateral provided to cover any lending should be more than the combined value of lent securities and must be marked to market on a daily basis. Lending to anonymous parties is not allowed. Borrowing of securities is prohibited. Leveraging is restricted.

ORSO Schemes Prohibited from lending pension assets to the employer or his associates.

A maximum of 10% of the assets may be allocated to the stock of the employer or his associates. Unlisted equity is not permitted. Scheme funding is required to cover the combined vested liability of all members. Shortfalls established through an actuarial valuation should be covered as agreed between the employer and the scheme administrator.

Investing in securities issues by any one party may not exceed 10% of total assets. Derivatives hedging, repos, stock investing, investment-grade debt securities, convertible bonds and listed warrants are allowed, but limited. Bond funds may not have more than 30% invested in a single government issue but can be fully invested in government debt. Equity investments must be fully paid-up listed shares and no more than 10% can be invested via non-MPFA-approved exchanges. No more than 5% can be allocated to warrants. No more than 10% can be placed in a deposit with a single bank. Commodities, direct property, loans, mortgages, jewellery, art and collectibles are not allowed. Foreign currency exposure may not exceed 70%. Investment in own stock is limited to 10%. 4PVSDF .1'"



.BZ


"QQFOEJY )POH ,POH

'JHVSF .1' $POTUJUVFOU GVOET CZ DBUFHPSZ

Money Market Funds 4 1% Capital Preservation Funds 40 9% Equity Funds 160 36%

Guaranteed Funds 28 6%

Bond Funds 38 9%

Balanced Funds 175 39%

4PVSDF .1'"

'JHVSF .1' $POTUJUVFOU GVOET BTTFU BMMPDBUJPOT

Total

Equity Funds

Balanced Funds

Bond Funds

Guaranteed Funds

Money Market Funds

Capital Preservation Funds 0%

10%

20%

30% Cash

40% Debt

50%

60%

70%

80%

90%

100%

Equity

4PVSDF .1'"



.BZ


"QQFOEJY )POH ,POH

'JHVSF .1' $POTUJUVFOU GVOET BTTFU BMMPDBUJPOT CZ HFPHSBQIZ

Total

Equity Funds

Balanced Funds

Bond Funds

Guaranteed Funds

Money Market Funds

Capital Preservation Funds 0%

10%

20% Hong Kong

30%

40%

Japan

Asia

50%

60%

North America

70%

80%

90%

100%

Europe

4PVSDF .1'"

'JHVSF "OOVBMJTFE QFSGPSNBODF PG .1' DPOTUJUVFOUT

6% Equity Funds

Annualised monthly returns

5%

Mixed Asset Funds

4%

Bond Funds

3%

2% Guaranteed Funds MPF Conservative Funds

1%

0%

Money Market Funds

0%

5%

10%

15%

20%

25%

Annualised volatility

4PVSDF .1'"



.BZ


"QQFOEJY )POH ,POH



.BZ

3FGFSFODFT



.BZ


3FGFSFODFT

!

!

!

!

!

!

!

!

!

!

!

!

!

!

"HBSXBMB 3 0ME BHF TFDVSJUZ 1FOTJPO SFGPSN JO $IJOB 7PMVNF 8PSME #BOL 1VCMJDBUJPOT "NCBDIUTIFFS , +BQBOhT (PWFSONFOU 1FOTJPO *OWFTUNFOU 'VOE (1*' 4IPVME *U #FDPNF B )JHI1FSGPSNBODF 0SHBOJ[BUJPO ,1" "EWJTPSZ 4FSWJDFT "NFOD / ' $PDRVFNBT - .BSUFMMJOJ BOE 4 4FOEFS 5IF &VSPQFBO 'VOE .BOBHFNFOU *OEVTUSZ /FFET B #FUUFS (SBTQ PG /POàOBODJBM 3JTLT &%)&$3JTL 1VCMJ DBUJPO %FDFNCFS "NFOD / ' $PDRVFNBT - .BSUFMMJOJ BOE 4 4FOEFS 3FTQPOTF UP UIF &VSPQFBO $PNNJTTJPO 8IJUF 1BQFS "O "HFOEB GPS "EFRVBUF 4BGF BOE 4VTUBJOBCMF 1FOTJPOT &%)&$3JTL 1VCMJDBUJPO 0DUPCFS "NFOD / ' $PDRVFNBT BOE 4 4FOEFS 4IFEEJOH -JHIU PO /PO'JOBODJBM 3JTLT m " &VSPQFBO 4VSWFZ &%)&$3JTL 1VCMJDBUJPO +BOVBSZ "NFOD / BOE ' %VDPVMPNCJFS 1SPQPTBMT GPS #FUUFS .BOBHFNFOU PG /PO 'JOBODJBM 3JTLT XJUIJO UIF &VSPQFBO 'VOE .BOBHFNFOU *OEVTUSZ 5FDIOJDBM SFQPSU "OUPMÎO 1 -POHFWJUZ 3JTL BOE 1SJWBUF 1FOTJPOT 0&$% 8PSLJOH 1BQFST PO *OTVSBODF BOE 1SJWBUF 1FOTJPOT /P 0&$% 1VCMJTIJOH "OUPMÎO 1 4 1BZFU BOE + :FSNP "TTFTTJOH %FGBVMU *OWFTUNFOU 4USBUFHJFT JO %FàOFE $POUSJCVUJPO 1FOTJPO 1MBOT 0&$% 8PSLJOH 1BQFST PO 'JOBODF *OTVSBODF BOE 1SJWBUF 1FOTJPOT /P 0&$% 1VCMJTIJOH "SSPX , + BOE 3 $ -JOE 6ODFSUBJOUZ BOE UIF FWBMVBUJPO PG QVCMJD JOWFTUNFOU EFDJTJPOT 5IF "NFSJDBO &DPOPNJD 3FWJFX

"TJBO %FWFMPQNFOU #BOL 1FOTJPO 4ZTUFNT JO &BTU BOE 4PVUIFBTU "TJB 1SPNPUJOH 'BJSOFTT BOE 4VTUBJOBCJMJUZ #BSS / 1FOTJPOT 0WFSWJFX PG UIF *TTVFT 1PMJDZ

0YGPSE 3FWJFX PG &DPOPNJD

#BZSBLUBS & 9 )V BOE 7 3 :PVOH .JOJNJ[JOH UIF QSPCBCJMJUZ PG MJGFUJNF SVJO VOEFS TUPDIBTUJD WPMBUJMJUZ *OTVSBODF .BUIFNBUJDT BOE &DPOPNJDT

#FFUTNB 3 BOE ) 0LTBOFO 1FOTJPOT VOEFS BHFJOH QPQVMBUJPOT BOE UIF &6 4UBCJMJUZ BOE (SPXUI 1BDU $&4JGP &DPOPNJD 4UVEJFT

#FFUTNB 3 . 8 + BOE " -BOT #PWFOCFSH 1FOTJPOT BOE *OUFSHFOFSBUJPOBM 3JTLTIBSJOH JO (FOFSBM &RVJMJCSJVN &DPOPNJDB



.BZ


3FGFSFODFT

!

!

!

!

!

!

!

!

!

!

!

!

!

!

#JGàT & BOE % #MBLF *OGPSNFE *OUFSNFEJBUJPO PG -POHFWJUZ &YQPTVSFT 8PSLJOH 1BQFS #MBLF % 1FOTJPO FDPOPNJDT 8JMFZ #MPPN % & BOE + ( 8JMMJBNTPO %FNPHSBQIJD USBOTJUJPOT BOE FDPOPNJD NJSBDMFT JO FNFSHJOH "TJB 5IF 8PSME #BOL &DPOPNJD 3FWJFX

#MPPNCFSH .PTU +BQBO 1FOTJPOT )BWF /P *OWFTUNFOU &YQFSJFODF 4VSWFZ 4IPXT #MVOEFMM8JHOBMM " :8 )V BOE + :FSNP 4PWFSFJHO 8FBMUI BOE 1FOTJPO 'VOE *TTVFT 0&$% 'JOBODJBM .BSLFU 5SFOET #SJFO . + BOE $ 8 " 1BOJT "OOVJUJFT JO UIF $POUFYU PG %FàOFE $POUSJCVUJPO 1MBOT 4UVEZ GPS UIF 64 %FQBSUNFOU PG -BCPS &NQMPZFF #FOFàUT 4FDVSJUZ "ENJOJT USBUJPO #SPXO + 3 6OEFSTUBOEJOH UIF 3PMF PG "OOVJUJFT JO 3FUJSFNFOU 1MBOOJOH *O " -VTBSEJ &E

0WFSDPNJOH UIF 4BWJOH 4MVNQ )PX UP *ODSFBTF UIF &GGFDUJWFOFTT PG 'JOBODJBM &EVDBUJPO BOE 4BWJOH 1SPHSBNT 6OJWFSTJUZ PG $IJDBHP 1SFTT $BNQCFMM + - % 4 %IBMJXBM BOE 8 $ 4DIXBSU[ 'JOBODJOH $POTUSBJOUT BOE UIF $PTU PG $BQJUBM &WJEFODF GSPN UIF 'VOEJOH PG $PSQPSBUF 1FOTJPO 1MBOT 3FWJFX PG 'JOBODJBM 4UVEJFT

$BTT #VTJOFTT 4DIPPM .PSUBMJUZ "TTVNQUJPOT 6TFE JO UIF $BMDVMBUJPO PG $PNQBOZ 1FOTJPO -JBCJMJUJFT JO UIF &6 $BTT #VTJOFTT 4DIPPM $IFO ) 8 )TV BOE . 8FJTT 5IF 1FOTJPO 0QUJPO JO -BCPVS *OTVSBODF BOE 1SFDBVUJPOBSZ 4BWJOHT &WJEFODF GSPN 5BJXBO "NFSJDBO 3JTL *OTVSBODF "TTPDJBUJPO .FFUJOH $IFO /, "TTFU QSJDF áVDUVBUJPOT JO 5BJXBO FWJEFODF GSPN TUPDL BOE SFBM FTUBUF QSJDFT UP +PVSOBM PG "TJBO &DPOPNJDT

$IJV 4# 5FDIOJDBM SFQPSU

5BJXBO $PNQVMTPSZ 0DDVQBUJPOBM 1FOTJPOT 4UJMM %PNJOBUF

$MBSL ( - BOE 3 6SXJO #FTU1SBDUJDF *OWFTUNFOU .BOBHFNFOU -FTTPOT GPS "TTFU 0XOFST GSPN UIF 0YGPSEm8BUTPO 8ZBUU 1SPKFDU PO (PWFSOBODF 8PSLJOH 1BQFS $MBSL 3 BOE 0 .JUDIFMM 4USFOHUIFOJOH &NQMPZNFOU#BTFE 1FOTJPOT JO +BQBO 1FOTJPO 3FTFBSDI $PVODJM 8PSLJOH 1BQFS



.BZ


3FGFSFODFT

!

!

!

!

!

!

!

!

!

!

!

!

!

!

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

%BT 6 4 : -V $ .VMEFS BOE " 4Z "VHVTU 4FUUJOH VQ B 4PWFSFJHO 8FBMUI 'VOE 4PNF 1PMJDZ BOE 0QFSBUJPOBM $POTJEFSBUJPOT *.' 8PSLJOH 1BQFS %F.JHVFM 7 - (BSMBQQJ BOE 3 6QQBM 0QUJNBM 7FSTVT /BJWF %JWFSTJàDBUJPO )PX *OFGàDJFOU JT UIF / 1PSUGPMJP 4USBUFHZ 3FWJFX PG 'JOBODJBM 4UVEJFT

%PSGNBO . $ (PWFSOBODF 4VNNBSZ 'JOEJOHT *O 4 3BKLVNBS BOE . $ %PSGNBO &ET

(PWFSOBODF BOE *OWFTUNFOU PG 1VCMJD 1FOTJPO "TTFUT 1SBDUJUJPOFSTh 1FSTQFDUJWFT 8PSME #BOL %VDPVMPNCJFS ' - -PI BOE 4 4UPZBOPW .BSDI 8IBU "TTFU-JBCJMJUZ .BOBHFNFOU 4USBUFHZ GPS 4PWFSFJHO 8FBMUI 'VOET &%)&$3JTL *OTUJUVUF 1VCMJDBUJPO &SOTU :PVOH 5IF &WPMWJOH .1' 4ZTUFN 5FDIOJDBM SFQPSU 'JTIFS * 5IFPSZ PG JOUFSFTU BT EFUFSNJOFE CZ JNQBUJFODF UP TQFOE JODPNF BOE PQQPSUVOJUZ UP JOWFTU JU 'POH + ) : 0 4 .JUDIFMM BOE # 4 , ,PI -POHFWJUZ 3JTL .BOBHFNFOU JO 4JOHBQPSFhT /BUJPOBM 1FOTJPO 4ZTUFN +PVSOBM PG 3JTL BOE *OTVSBODF

(BO - 4FQUFNCFS 'JOEJOHT GSPN UIF $IJOB )PVTFIPME 'JOBODF 4VSWFZ 5FDIOJDBM SFQPSU 5FYBT ". 6OJWFSTJUZ BOE 4PVUIXFTUFSO 6OJWFSTJUZ PG 'JOBODF BOE &DPOPNJDT (BOEPMGP + (PWFSOBODF PG UIF 8PSME #BOL 4UBGG 3FUJSFNFOU 1MBO BOE 5SVTU *O 4 3BKLVNBS BOE . $ %PSGNBO &ET

(PWFSOBODF BOE *OWFTUNFOU PG 1VCMJD 1FOTJPO "TTFUT 1SBDUJUJPOFSTh 1FSTQFDUJWFT 8PSME #BOL



.BZ


3FGFSFODFT

!

!

!

!

!

!

!

!

!

!

(PNFT ' + - + ,PUMJLPGG BOE - . 7JDFJSB 0QUJNBM -JGF$ZDMF *OWFTUJOH XJUI 'MFYJCMF -BCPS 4VQQMZ " 8FMGBSF "OBMZTJT PG -JGF$ZDMF 'VOET "NFSJDBO &DPOPNJD 3FWJFX 1BQFST BOE 1SPDFFEJOHT (SFFO 3 3 .BSJBOP " 1BWMPW BOE 4 8BDIUFS .JTBMJHOFE JODFOUJWFT BOE NPSUHBHF MFOEJOH JO "TJB *O 'JOBODJBM 4FDUPS %FWFMPQNFOU JO UIF 1BDJàD 3JN &BTU "TJB 4FNJOBS PO &DPOPNJDT 7PMVNF QQ 6OJWFSTJUZ PG $IJDBHP 1SFTT (VTUNBO " - BOE 5 - 4UFJONFJFS "VHVTU 5IF 4UBNQFEF 5PXBSE %FàOFE $POUSJCVUJPO 1FOTJPO 1MBOT 'BDU PS 'JDUJPO )FOSBSE 7 *ODPNF *OFRVBMJUZ 1VCMJD &YQFOEJUVSF PO 4PDJBM 1PMJDZ JO )POH ,POH $JWJD &YDIBOHF )JHHJOT . BOE + ( 8JMMJBNTPO "TJBO EFNPHSBQIZ BOE GPSFJHO DBQJUBM EFQFO EFODF 5FDIOJDBM SFQPSU /BUJPOBM #VSFBV PG &DPOPNJD 3FTFBSDI )JHHJOT . BOE + ( 8JMMJBNTPO "HF TUSVDUVSF EZOBNJDT JO "TJB BOE EFQFO EFODF PO GPSFJHO DBQJUBM 1PQVMBUJPO BOE %FWFMPQNFOU 3FWJFX )PM[NBOO 3 * 8 .BD"SUIVS BOE : 4JO 1FOTJPO 4ZTUFNT JO &BTU "TJB BOE UIF 1BDJàD $IBMMFOHFT BOE 0QQPSUVOJUJFT 5IF 8PSME #BOL 4PDJBM 1SPUFDUJPO %JTDVTTJPO 1BQFS 4FSJFT )PM[NBOO 3 & 1BMNFS BOE % 3PCBMJOP /POàOBODJBM %FàOFE $POUSJCVUJPO 1FOTJPO 4DIFNFT JO B $IBOHJOH 1FOTJPO 8PSME 7PMVNF (FOEFS 1PMJUJDT BOE 'JOBODJBM 4UBCJMJUZ 7PMVNF 8PSME #BOL )POH 8 5IF 3FWJTJPO PG &3#4" BOE %$ 1MBOT 5FDIOJDBM SFQPSU )PSJPLB $ : BOE " 5FSBEB)BHJXBSB 5IF EFUFSNJOBOUT BOE MPOHUFSN QSPKFD UJPOT PG TBWJOH SBUFT JO %FWFMPQJOH "TJB 5FDIOJDBM SFQPSU /BUJPOBM #VSFBV PG &DPOPNJD 3FTFBSDI

!

)V :8 1FOTJPO SFGPSN JO $IJOBB DBTF TUVEZ &DPOPNJDT

!

)XBOH (+ 5IF 3VMFT PG UIF (BNF 5IF QPMJUJDT PG OBUJPOBM QFOTJPOT JO ,PSFB

!

*HOJUFT "TJB B ), HPWFSONFOU WFUPFT OPOQSPàU .1' USVTUFFT

!

*HOJUFT "TJB C 5BJXBO -1' UP PVUTPVSDF NPSF FZFT BCTPMVUF SFUVSOT

!

*HOJUFT "TJB B ), .1' GFFT LFFQ DMJNCJOH

!

*HOJUFT "TJB C ),hT .1' QBSUJDJQBOUT NPTUMZ TUBZJOH QVU

! *HOJUFT "TJB D ,PSFB SFWBNQJOH QSJWBUF QFOTJPO SVMFT "O &%)&$3JTL *OTUJUVUF 1VCMJDBUJPO


.BZ


3FGFSFODFT

!

!

*1"TJB #FXBSF +BQBOFTF QSPWFSCT

!

*1"TJB B #JH DIBMMFOHF GPS (1*' BT JU MPPLT UP DBTI VQ

!

*1"TJB C -BCPS .JOJTUSZ BTLT GPS OFX %$ SVMFT

!

*1"TJB $IJOB B SBOHF PG OFX NFBTVSFT

!

!

!

!

!

!

!

!

!

!

*OUFSOBUJPOBM 4PDJBM 4FDVSJUZ "TTPDJBUJPO (VJEFMJOFT GPS UIF *OWFTUNFOU PG 4PDJBM 4FDVSJUZ 'VOET

!

!

*OUFSOBUJPOBM #FOFàUT /FUXPSL 5BJXBO "O 0WFSWJFX PG &NQMPZFF #FOFàUT

+PIBOTTPO " $ BOE 9 8BOH 'JOBODJBM SFQSFTTJPO BOE FYUFSOBM JNCBMBODFT $IJOB &DPOPNJD 3FTFBSDI $FOUFS 8PSLJOH 1BQFS +V : %FDFNCFS 3FDFOU $IBOHFT JO ,PSFBhT 3FUJSFNFOU 1FOTJPO 4ZTUFN BOE *NQMJDBUJPOT 5FDIOJDBM 3FQPSU )BOB *OTJHIU )BOB *OTUJUVUF PG 'JOBODF ,BHF : +BQBOhT 3FGPSN PG *UT 1FOTJPO 4ZTUFN GPS 4VTUBJOBCJMJUZ +PVSOBM PG *OWFTUNFOU $POTVMUJOH ,BOH +, BOE 3 . 4UVM[ 8IZ JT UIFSF B IPNF CJBT "O BOBMZTJT PG GPSFJHO QPSUGPMJP FRVJUZ PXOFSTIJQ JO +BQBO +PVSOBM PG 'JOBODJBM &DPOPNJDT

,JN +, BOE )1 .PPO 1FOTJPO 4ZTUFNT GPS 1VCMJD 4FDUPS &NQMPZFFT JO UIF 3FQVCMJD PG ,PSFB ,JN 44 1FOTJPO 3FGPSN 0QUJPOT JO ,PSFB *OUFSOBUJPOBM .POFUBSZ 'VOE ,JN 8 BOE ' 4UFXBSU 3FGPSN PO 1FOTJPO 'VOE (PWFSOBODF BOE .BOBHFNFOU 5IF 3FGPSN PG ,PSFB /BUJPOBM 1FOTJPO 'VOE 0&$% 8PSLJOH 1BQFST PO 'JOBODF *OTVSBODF BOE 1SJWBUF 1FOTJPOT /P 0&$% 1VCMJTIJOH ,JNCBMM . 4 BOE 5 4IVNXBZ *OWFTUPS 4PQIJTUJDBUJPO BOE UIF )PNF #JBT %JWFSTJàDBUJPO BOE &NQMPZFS 4UPDL 1V[[MFT 8PSLJOH QBQFS ,PP 3 #BMBODF TIFFU SFDFTTJPO +BQBOhT TUSVHHMF XJUI VODIBSUFE FDPOPNJDT BOE JUT HMPCBM JNQMJDBUJPOT 8JMFZ /FX :PSL ,VP :: 3FTFBSDI PO 5BJXBO ,PSFB BOE +BQBOhT $JWJM 4FSWJDF 3FUJSFNFOU 4ZTUFN ,PSFBO "TTPDJBUJPO GPS 1VCMJD "ENJOJTUSBUJPO *OUFSOBUJPOBM $POGFSFODF -BCPVS 1FOTJPO 'VOE -BCPVS 1FOTJPO 'VOE 4VQFSWJTPSZ #PBSE "OOVBM 3FQPSU



.BZ


3FGFSFODFT

!

!

!

!

!

!

!

!

!

!

!

!

!

!

!

-BOF 1 3 5IF /BUJPOBM 1FOTJPOT 3FTFSWF 'VOE 1JUGBMMT BOE 0QQPSUVOJUJFT 8PSLJOH 1BQFS -FDLJF 4 BOE 3 9JBP *OWFTUNFOU 'VOET JO $IJOB " /FX -PPL -FDLJF 4 ) : 1BJ 4 #BSIBN BOE $ #POOFUU 1FOTJPO 'VOET JO $IJOB " /FX -PPL *4* QVCMJDBUJPOT -FF #) 1SPNPUJOH 3FHJTUSBUJPO GPS 4PDJBM *OTVSBODF UISPVHI *OTVSBODF 1SFNJVN 4VCTJEJFT F-BCPVS /FXT DPWFSBHF LPSFB OBUJPOBM QFOTJPO LPSFB TPDJBM TFDVSJUZ -FF 3 BOE " .BTPO 4PNF NBDSPFDPOPNJD BTQFDUT PG HMPCBM QPQVMBUJPO BHJOH EFNPHSBQIZ

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àOFE CFOFà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


.BZ


3FGFSFODFT

!

!

!

!

!

!

!

!

!

!

!

!

!

!

!

.BTPO " %FNPHSBQIJD USBOTJUJPO BOE EFNPHSBQIJD EJWJEFOET JO EFWFMPQFE BOE EFWFMPQJOH DPVOUSJFT *O 6OJUFE /BUJPOT &YQFSU (SPVQ .FFUJOH PO 4PDJBM BOE &DPOPNJD *NQMJDBUJPOT PG $IBOHJOH 1PQVMBUJPO "HF 4USVDUVSFT .FYJDP $JUZ .BTPO " 3 -FF BOE 4) -FF 5IF EFNPHSBQIJD USBOTJUJPO BOE FDPOPNJD HSPXUI JO UIF 1BDJàD 3JN *O 5IF &DPOPNJD $POTFRVFODFT PG %FNPHSBQIJD $IBOHF JO &BTU "TJB /#&3&"4& 7PMVNF QQ 6OJWFSTJUZ PG $IJDBHP 1SFTT .D,JOOPO 3 * .POFZ DBQJUBM JO FDPOPNJD EFWFMPQNFOU #SPPLJOHT *OTUJ UVUJPO 1SFTT .JMMT * .BSDI /44'hT OFHBUJWF SFBM SFUVSOT NBZ TQVS SFGPSNT .JOJTUSZ PG )FBMUI -BCPVS 8FMGBSF 'JOBODJBM 3FQPSU PO UIF 1VCMJD 1FOTJPO 4ZTUFN 'JTDBM :FBS 4VNNBSZ 5FDIOJDBM SFQPSU .JOJTUSZ PG )FBMUI -BCPVS BOE 8FMGBSF +BQBO .JOJTUSZ PG )FBMUI -BCPVS BOE 8FMGBSF "OOVBM )FBMUI -BCPVS BOE 8FMGBSF 3FQPSU $IBQUFS 1FOTJPO 4FDVSJUZ .JOJTUSZ PG 4USBUFHZ 'JOBODF 5BY 3FWJTJPO #JMM .JUDIFMM 0 BOE + 1JHHPUU 5VSOJOH 8FBMUI JOUP -JGFUJNF *ODPNF 5IF $IBMMFOHF "IFBE .PEJHMJBOJ ' BOE " , "OEP 5FTUT PG UIF MJGF DZDMF IZQPUIFTJT PG TBWJOHT DPNNFOUT BOE TVHHFTUJPT #VMMFUJO PG UIF 0YGPSE 6OJWFSTJUZ *OTUJUVUF PG &DPOPNJDT 4UBUJTUJDT

.PP % 3FUJSFNFOU BOE 4BWJOHT 1MBOT JO $IJOB .PPO ) 5IF ,PSFBO 1FOTJPO 4ZTUFN $VSSFOU 4UBUF BOE 5BTLT "IFBE ,PSFB %FWFMPQNFOU *OTUJUVUF .PPO ) 1SJWBUF 1FOTJPO &WBMVBUJPO BOE 5BTLT "IFBE 8SJUUFO JO ,PSFBO ,PSFB %FWFMPQNFOU *OTUJUVUF .PPO ) %FNPHSBQIJD $IBOHFT BOE 1FOTJPO 3FGPSN JO UIF 3FQVCMJD PG ,PSFB "TJBO %FWFMPQNFOU #BOL *OTUJUVUF 8PSLJOH 1BQFS 4FSJFT .VJS % . %FGBVMU 4FUUJOHT JO %FàOFE $POUSJCVUJPO 1MBOT m " $PNQBSBUJWF "QQSPBDI UP 'JEVDJBSZ 0CMJHBUJPO BOE UIF 3PMF PG .BSLFUT 8PSLJOH QBQFS .VTBMFN " 3 BOE 3 + 1BMBDJPT &ET .BZ 1VCMJD 1FOTJPO 'VOE .BOBHFNFOU (PWFSOBODF "DDPVOUBCJMJUZ BOE *OWFTUNFOU 1PMJDJFT 1SPDFFEJOHT PG UIF 4FDPOE 1VCMJD 1FOTJPO 'VOE .BOBHFNFOU $POGFSFODF 8PSME #BOL



.BZ


3FGFSFODFT

!

!

!

!

!

!

!

!

!

!

!

!

!

!

!

!

.ZFST 4 $ %FUFSNJOBOUT PG DPSQPSBUF CPSSPXJOH FDPOPNJDT

+PVSOBM PG àOBODJBM

/BCBS . 5BSHFUT JOUFSFTU SBUFT BOE IPVTFIPME TBWJOH JO VSCBO $IJOB *OUFS OBUJPOBM .POFUBSZ 'VOE /BLBEB 5 %FàOFE $POUSJCVUJPO 1FOTJPO 1MBOT BOE 5IFJS *OWFTUNFOU &EVDBUJPO JO +BQBO /JLLP 'JOBODJBM *OUFMMJHFODF *OD /BUJPOBM *OTUJUVUF PG 1PQVMBUJPO BOE 4PDJBM 4FDVSJUZ 3FTFBSDI 4PDJBM 4FDVSJUZ JO +BQBO 5FDIOJDBM SFQPSU /BUJPOBM 1FOTJPO 'VOE "OOVBM 3FQPSU /PNVSB " %FàOFE $POUSJCVUJPO 1FOTJPO 1MBOT JO +BQBO $VSSFOU 4UBUVT BOE $IBMMFOHFT /PNVSB $BQJUBM .BSLFU 3FWJFX 7PM /P /PNVSB " +BQBOhT 1FOTJPO 4ZTUFN 4IJGU 5PXBSET (SFBUFS 4FMG3FMJBODF *T 6OBWPJEBCMF /PNVSB " 5SFOET JO 1FOTJPO 4ZTUFN 3FGPSNT JO &BTU "TJB $BTFT GPS +BQBO ,PSFB BOE $IJOB /PNVSB " 5IF *OUSPEVDUJPO PG &NQMPZFF $POUSJCVUJPOT UP %$ 1FOTJPO 1MBOT 0&$% 0&$% (VJEFMJOFT PO 'VOEJOH BOE #FOFàU 4FDVSJUZ JO 0DDVQBUJPOBM 1FOTJPO 1MBOT 5FDIOJDBM SFQPSU 3FDPNNFOEBUJPO PG UIF $PVODJM 0&$% 1FOTJPOT BU B (MBODF 3FUJSFNFOU*ODPNF 4ZTUFNT JO 0&$% BOE ( $PVOUSJFT 0&$% 1FOTJPOT BU B (MBODF "TJB1BDJàD 0FQQFO + BOE + 8 7BVQFM #SPLFO MJNJUT UP MJGF FYQFDUBODZ 4DJFODF

0LTBOFO ) 5IF $IJOFTF QFOTJPO TZTUFN'JSTU SFTVMUT PO BTTFTTJOH UIF SFGPSN PQUJPOT 5FDIOJDBM SFQPSU %JSFDUPSBUF (FOFSBM &DPOPNJD BOE .POFUBSZ "GGBJST &VSPQFBO $PNNJTTJPO 0LTBOFO ) $IJOB 1FOTJPO 3FGPSN GPS BO "HFJOH &DPOPNZ /POàOBODJBM %FàOFE $POUSJCVUJPO 1FOTJPO 4DIFNFT JO B $IBOHJOH 8PSME 0MTIBOTLZ 4 + % + 1BTTBSP 3 $ )FSTIPX + -BZEFO # " $BSOFT + #SPEZ - )BZáJDL 3 / #VUMFS % # "MMJTPO BOE % 4 -VEXJH " QPUFOUJBM EFDMJOF JO MJGF FYQFDUBODZ JO UIF 6OJUFE 4UBUFT JO UIF TU DFOUVSZ /FX &OHMBOE +PVSOBM PG .FEJDJOF



.BZ


3FGFSFODFT

!

!

!

!

!

!

!

!

!

!

!

!

!

!

0UB 5 $BTI #BMBODF 1FOTJPO 1MBO JO +BQBO $VSSFOU 4JUVBUJPO BOE 'VUVSF 1BHF + 5IF &BTU "TJBO NJSBDMF GPVS MFTTPOT GPS EFWFMPQNFOU QPMJDZ *O /#&3 .BDSPFDPOPNJDT "OOVBM 7PMVNF QQ .*5 1SFTT 1BMBDJPT 3 .BOBHJOH 1VCMJD 1FOTJPO 3FTFSWFT -FTTPOT GSPN 'JWF 3FDFOU 0&$% *OJUJBUJWFT 5FDIOJDBM SFQPSU 1BSJIBS + 4FMFDUJPO "QQPJOUNFOU BOE 0QFSBUJOH 1SPDFTTFT GPS #PBSE .FNCFST 5IF $BTF PG $BOBEBhT "*.$P *O 4 3BKLVNBS BOE . $ %PSGNBO &ET

(PWFSOBODF BOE *OWFTUNFOU PG 1VCMJD 1FOTJPO "TTFUT 1SBDUJUJPOFSTh 1FSTQFDUJWFT 8PSME #BOL 1BUSJDL ) 5 BOE : $ 1BSL 5IF àOBODJBM EFWFMPQNFOU PG +BQBO ,PSFB BOE 5BJXBO (SPXUI SFQSFTTJPO BOE MJCFSBMJ[BUJPO 0YGPSE 6OJWFSTJUZ 1SFTT PO %FNBOE 1FUUJT . $IJOBhT 3FCBMBODJOH *O $'" *OTUJUVUF $POGFSFODF 1SPDFFEJOHT 2VBSUFSMZ 7PMVNF QQ $'" *OTUJUVUF 1IBO ) 7 BOE 4 1 )FHEF $PSQPSBUF (PWFSOBODF BOE 3JTL5BLJOH JO 1FOTJPO 1MBOT &WJEFODF GSPN %FàOFE #FOFàU "TTFU "MMPDBUJPOT +PVSOBM PG 'JOBODJBM BOE 2VBOUJUBUJWF "OBMZTJT 'PSUIDPNJOH 1IBOH ) ,PSFB 3FUJSFNFOU "MMPXBODF 4ZTUFN 1JHHPUU + BOE - #FJ 1FOTJPO 3FGPSN BOE UIF %FWFMPQNFOU PG 1FOTJPO 4ZTUFNT "O &WBMVBUJPO PG 8PSME #BOL "TTJTUBODF #BDLHSPVOE QBQFS $IJOB $PVOUSZ 4UVEZ 8PSME #BOL 8BTIJOHUPO %$ 1PUFSCB + . 4 ' 7FOUJ BOE % " 8JTF +VOF 5IF %FDMJOF PG %FàOFE #FOFàU 3FUJSFNFOU 1MBOT BOE "TTFU 'MPXT *O + 3 #SPXO + # -JFCNBO BOE % " 8JTF &ET

4PDJBM 4FDVSJUZ 1PMJDZ JO B $IBOHJOH &OWJSPONFOU QQ 6OJWFSTJUZ PG $IJDBHP 1SFTT 1VHI $ 'VOEJOH 3VMFT BOE "DUVBSJBM .FUIPET 0&$% 8PSLJOH 1BQFST PO *OTVSBODF BOE 1SJWBUF 1FOTJPOT /P 0&$% 1VCMJTIJOH 2VJHMFZ + . 3FBM FTUBUF BOE UIF "TJBO DSJTJT &DPOPNJDT

+PVSOBM PG )PVTJOH

3BKBO 3 4 BOE + #FWFSJOPUUJ 5IF SFBM FYDIBOHF SBUF TFDUPSBM BMMPDBUJPO BOE EFWFMPQNFOU JO $IJOB BOE &BTU "TJB " TJNQMF FYQPTJUJPO +PVSOBM PG *OUFSOBUJPOBM %FWFMPQNFOU

3BKLVNBS 4 BOE . $ %PSGNBO &ET (PWFSOBODF BOE *OWFTUNFOU PG 1VCMJD 1FOTJPO "TTFUT 1SBDUJUJPOFSTh 1FSTQFDUJWFT 8PSME #BOL



.BZ


3FGFSFODFT

!

!

!

3FJOIBSU $ . BOE . # 4CSBODJB 5IF MJRVJEBUJPO PG HPWFSONFOU EFCU 5FDIOJDBM SFQPSU /BUJPOBM #VSFBV PG &DPOPNJD 3FTFBSDI 3FVUFST "QSJM .PPEZhT MPXFST $IJOB PVUMPPL BGUFS 'JUDI EPXOHSBEF IUUQXXXSFVUFSTDPNBSUJDMFVTDIJOBNPPEZTSBUJOHT JE64#3&'*

!

3PBDI 4 3 "QSJM 4IJO[P "CFhT .POFUBSZ1PMJDZ %FMVTJPOT 1SPKFDU 4ZOEJDBUF

!

4BLBNPUP + "OOVJUZ .BSLFUT JO +BQBO

!

!

!

!

!

!

!

!

!

!

3BVI + % 3JTL 4IJGUJOH WFSTVT 3JTL .BOBHFNFOU *OWFTUNFOU 1PMJDZ JO $PSQPSBUF 1FOTJPO 1MBOT 3FWJFX PG 'JOBODJBM 4UVEJFT

4ÃODIF[3PNFSP . $ 1BUYPU & 3FOUFShJB BOE ( 4PVUP 0O UIF FGGFDUT PG QVCMJD BOE QSJWBUF USBOTGFST PO DBQJUBM BDDVNVMBUJPO TPNF MFTTPOT GSPN UIF /5" BHHSFHBUFT +PVSOBM PG 1PQVMBUJPO &DPOPNJDT 4DIXBSU[ 8 $ .BOBHJOH %FàOFE#FOFàU 1FOTJPO 1MBOT 4UJMM $SJUJDBM BOE $PNQMFY +PVSOBM PG $PSQPSBUF "DDPVOUJOH 'JOBODF

4FLJOF 5 BOE 0UIFST $ISPOJD %FáBUJPO JO +BQBO 4FOEFS 4 5IF &MFQIBOU JO UIF 3PPN "DDPVOUJOH BOE 4QPOTPS 3JTLT JO $PSQPSBUF 1FOTJPO 1MBOT &%)&$3JTL 1VCMJDBUJPO .BSDI 4FOEFS 4 4IJGUJOH 5PXBSET )ZCSJE 1FOTJPO 4ZTUFNT " &VSPQFBO 1FSTQFDUJWF &%)&$3JTL 1VCMJDBUJPO .BSDI 4FPL 4 ) ,XPO ) 4POH & -FF + 0I ) 4IJO BOE ( ,JN .JEEMF BOE 0ME"HFE ,PSFBOTh 1SFQBSBUJPO 3FBMJUJFT GPS BOE &YQFDUBUJPOT BCPVU UIFJS 0ME "HF 5FDIOJDBM SFQPSU /BUJPOBM 1FOTJPO 3FTFBSDI *OTUJUVUF 0ME BHF QFOTJPO LPSFB BEFRVBDZ 4FWFSJOTPO $ BOE ' 4UFXBSU 3FWJFX PG UIF 4XFEJTI /BUJPOBM 1FOTJPO 'VOET 0&$% 8PSLJOH 1BQFST PO 'JOBODF *OTVSBODF BOE 1SJWBUF 1FOTJPOT /P 0&$% 1VCMJTIJOH 4IBP " + 5IF QVCMJD QFOTJPO TZTUFN JO 5BJXBO &RVJUZ JTTVFT XJUIJO BOE CFUXFFO TZTUFNT *OUFSOBUJPOBM 4PDJBM 4FDVSJUZ 3FWJFX

4IBX & 4 'JOBODJBM EFFQFOJOH JO FDPOPNJD EFWFMPQNFOU 7PMVNF 0YGPSE 6OJWFSTJUZ 1SFTT /FX :PSL 4IJ 4+ BOE ,) .PL B 1FOTJPO 1SJWBUJTBUJPO JO (SFBUFS $IJOB *OTUJUVUJPOBM 1BUUFSOT BOE 1PMJDZ 0VUDPNFT "O &%)&$3JTL *OTUJUVUF 1VCMJDBUJPO


.BZ


3FGFSFODFT

!

!

!

!

!

!

!

!

!

!

!

!

4IJ 4+ BOE ,) .PL C 1FOTJPO QSJWBUJTBUJPO JO (SFBUFS $IJOB *OTUJUVUJPOBM QBUUFSOT BOE QPMJDZ PVUDPNFT *OUFSOBUJPOBM +PVSOBM PG 4PDJBM 8FMGBSF 4IJI 7 -PDBM (PWFSONFOU %FCU #JH 3PDL$BOEZ .PVOUBJO $IJOB &DPOPNJD 2VBSUFSMZ

4IJI 7 B u (PMEJMPDLTu -JCFSBMJ[BUJPO 5IF 6OFWFO 1BUI 5PXBSE *OUFSFTU 3BUF 3FGPSN JO $IJOB +PVSOBM PG &BTU "TJBO 4UVEJFT

4IJI 7 C $IJOBhT MPDBM EFCU QSPCMFN JT CJHHFS UIBO JU MPPLT '5 CFZPOECSJDT 4JFHNBOO " 'FCSVBSZ 0QUJNBM JOWFTUNFOU QPMJDJFT GPS EFàOFE CFOFàU QFOTJPO GVOET +PVSOBM PG 1FOTJPO &DPOPNJDT BOE 'JOBODF 4UFXBSU ' BOE % (PNF[ )FSOBOEF[ $PNQBSJTPO PG $PTUT 'FFT JO $PVOUSJFT XJUI 1SJWBUF %Fà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hT 4PDJBM 4FDVSJUZ 1FOTJPO 3FGPSN 5FDIOJDBM SFQPSU $FOUFS GPS *OUFSHFOFSBUJPOBM 4UVEJFT *OTUJUVUF PG &DPOPNJD 3FTFBSDI )JUPUTVCBTIJ 6OJWFSTJUZ

!

5BLBZBNB / C +BQBOhT 4PDJBM 4FDVSJUZ 1FOTJPO 3FGPSN

!

5BLBZBNB / D .BUDIJOH %FàOFE $POUSJCVUJPO 1FOTJPO 4DIFNFT JO +BQBO

!

5IF "DDPVOUBOU +BQBO %FMBZT *'34 3PBENBQ

!

5PQ'VOET $POTFSWBUJWF ,PSFB

! 5PXFST 8BUTPO "DDPVOUJOH GPS ,PSFBO 3FUJSFNFOU 1MBOT



.BZ


3FGFSFODFT

!

!

!

!

!

!

!

!

!

!

!

!

!

!

!

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

0WFSDPNJOH UIF 4BWJOH 4MVNQ )PX UP *ODSFBTF UIF &GGFDUJWFOFTT PG 'JOBODJBM &EVDBUJPO BOE 4BWJOH 1SPHSBNT 6OJWFSTJUZ PG $IJDBHP 1SFTT 7JUUBT % BOE : + $IP $SFEJU QPMJDJFT MFTTPOT GSPN FBTU BTJB /VNCFS 8PSME #BOL 1VCMJDBUJPOT 8BOH + 'PSFDBTUJOH 7PMBUJMJUZ JO "TJBO 4UPDL .BSLFUT $POUSJCVUJPOT PG -PDBM 3FHJPOBM BOE (MPCBM 'BDUPST "TJBO %FWFMPQNFOU 3FWJFX

8BUTPO 8ZBUU 5IF %FGBVMU %JMFNNB 8JMMJBNTPO + # . 1SJDF BOE $ 4IFO 1FOTJPO 1PMJDZ JO $IJOB 4JOHBQPSF BOE 4PVUI ,PSFB "O "TTFTTNFOU PG UIF 1PUFOUJBM 7BMVF PG UIF /PUJPOBM %FàOFE $POUSJ CVUJPO .PEFM +PVSOBM PG "HJOH 4UVEJFT :BOH +K /PWFNCFS 1FOTJPO 3FGPSN *TTVFT JO 4PVUI ,PSFB BOE /%$#BTFE 4PMVUJPO /BUJPOBM 5BJXBO 6OJWFSTJUZ :FSNP + 3FGPSNJOH UIF 7BMVBUJPO BOE 'VOEJOH PG 1FOTJPO 1SPNJTFT BSF 0DDVQBUJPOBM QFOTJPO 1MBOT 4BGFS 0&$% 8PSLJOH 1BQFST PO *OTVSBODF BOE 1SJWBUF 1FOTJPOT /P 0&$% 1VCMJTIJOH :FSNP + +BOVBSZ (PWFSOBODF BOE *OWFTUNFOU PG 1VCMJD 1FOTJPO 3FTFSWF 'VOET JO 4FMFDUFE 0&$% $PVOUSJFT 0&$% 8PSLJOH 1BQFST PO *OTVSBODF BOE 1SJWBUF 1FOTJPOT /P 0&$% 1VCMJTIJOH



.BZ


3FGFSFODFT

!

!

!

:JOH :) $. ,VBO $ : 5VOH BOE , $IBOH u $BQJUBM NPCJMJUZ JO &BTU "TJBO $PVOUSJFT JT OPU TP IJHIu &YBNJOJOH UIF JNQBDU PG TUFSJMJ[BUJPO PO DBQJUBM áPXT $IJOB &DPOPNJD 3FWJFX :JV $ : 4 : 4 9V BOE $ : + $BP 8IBU $BO 8F -FBSO GSPN UIF 1BTU " $PNNPO 1SFFYJTUJOH 4ZNQUPN PG 5ISFF 3FDFOU 3FBM &TUBUF 1SJDJOH #VCCMFT +PVSOBM PG 3FBM &TUBUF 1SBDUJDF BOE &EVDBUJPO

;IFOH # $IJOB 1FOTJPO 3FQPSU 5FDIOJDBM SFQPSU



.BZ

"CPVU "9" *OWFTUNFOU .BOBHFST



.BZ


"CPVU "9" *OWFTUNFOU .BOBHFST

"9" *OWFTUNFOU .BOBHFST "9" *.

JT B NVMUJFYQFSU BTTFU NBOBHFNFOU DPNQBOZ XJUIJO UIF "9" (SPVQ B HMPCBM MFBEFS JO àOBODJBM QSPUFDUJPO BOE XFBMUI NBOBHFNFOU 8JUI BQQSPYJNBUFMZ é CJMMJPO JO BTTFUT VOEFS NBOBHFNFOU "9" *. JT POF PG UIF MBSHFTU &VSPQFBOCBTFE BTTFU NBOBHFST FNQMPZJOH PWFS QFPQMF BSPVOE UIF XPSME BOE PQFSBUJOH PVU PG DPVOUSJFT *U JT BDLOPXMFEHFE BT B UIPVHIU MFBEFS BOE LFZ QMBZFS JO UIF BTTFU NBOBHFNFOU JOEVTUSZ PXJOH UP JUT JOOPWBUJWF BOE FOUSFQSFOFVSJBM NJOETFU UIF SFDPHOJTFE FYDFMMFODF PG JUT SFTFBSDI BOE UIF RVBMJUZ PG JUT JOWFTUNFOU TPMVUJPOT BOE TFSWJDFT "9" *. TFSWJDFT UIF TQFDJàD FWPMWJOH OFFET BOE FYQFDUBUJPOT PG B XJEF WBSJFUZ PG DMJFOUT SBOHJOH GSPN UIF "9" (SPVQ BOE JUT JOTVSBODF DPNQBOJFT UP EJTUSJCVUPST BOE JOTUJUVUJPOBM JOWFTUPST "9" *.T NVMUJFYQFSU CVTJOFTT NPEFM JT DPNQPTFE PG TFQBSBUF BTTFU DMBTTGPDVTFE

BSFBT PG FYQFSUJTF FBDI PG XIJDI JT BNPOHTU UIF MFBEFST JO JUT SFTQFDUJWF àFME *U BMTP IBT B .VMUJ"TTFU $MJFOU 4PMVUJPOT UFBN DPNQPTFE PG àOBODJBM FOHJOFFST TUSVDUVSFE QSPEVDU EFWFMPQFST àEVDJBSZ NBOBHFNFOU BOE BTTFU BMMPDBUJPO TQFDJBMJTUT XIP EFWFMPQ UIF NPTU SFMFWBOU CFTUàU TPMVUJPOT GPS DMJFOUT ! "9" 'JYFE *ODPNF ! "9" 'SBNMJOHUPO ! "9" 3PTFOCFSH ! "9" 'VOET PG )FEHF 'VOET ! "9" 1SJWBUF &RVJUZ ! "9" 3FBM &TUBUF ! "9" 4USVDUVSFE 'JOBODF 5IFTF UFBNT PG FYQFSUT BSF CBDLFE CZ UIF TUSFOHUI BOE TDBMBCJMJUZ PG TIBSFE TVQQPSU GVODUJPOT TVDI BT 3FTFBSDI *OWFTUNFOU 4USBUFHZ 3FTQPOTJCMF *OWFTUNFOU 3JTL .BOBHFNFOU BOE 5SBEJOH "OE UIFJS QSPEVDU PGGFSJOHT BSF UIF CVJMEJOH CMPDLT XJUI XIJDI UIF *OWFTUNFOU 4PMVUJPOT UFBN CVJMET àUGPSQVSQPTF TPMVUJPOT UIBU NFFU UIF IJHIFTU JOEVTUSZ TUBOEBSET 7JTJU VT BU XXXBYBJNDPN

MULTI ASSET CLIENT SOLUTIONS ASSET LIABILITY MANAGEMENT

FIXED INCOME

MULTI-ASSET INVESTMENTS

EQUITIES

EXTERNAL MANAGERS

ALTERNATIVES *

* AXA Funds of Hedge Funds is part of External Managers within Multi Asset Client Solutions



.BZ

"CPVU &%)&$3JTL *OTUJUVUF



.BZ



'PVOEFE JO &%)&$ JT POF PG UIF GPSFNPTU JOUFSOBUJPOBM CVTJOFTT TDIPPMT "DDSFEJUFE CZ UIF UISFF NBJO JOUFSOBUJPOBM BDBEFNJD PSHBOJTBUJPOT &26*4 ""$4# BOE "TTPDJBUJPO PG .#"T &%)&$ IBT GPS B OVNCFS PG ZFBST CFFO QVSTVJOH B TUSBUFHZ PG JOUFSOBUJPOBM FYDFMMFODF UIBU MFE JU UP TFU VQ &%)&$3JTL *OTUJUVUF JO 5IJT JOTUJUVUF OPX CPBTUT B UFBN PG QFSNBOFOU QSPGFTTPST FOHJOFFST BOE TVQQPSU TUBGG BT XFMM BT SFTFBSDI BTTPDJBUFT GSPN UIF àOBODJBM JOEVTUSZ BOE BGàMJBUF QSPGFTTPST

5IF $IPJDF PG "TTFU "MMPDBUJPO BOE 3JTL .BOBHFNFOU &%)&$3JTL TUSVDUVSFT BMM PG JUT SFTFBSDI XPSL BSPVOE BTTFU BMMPDBUJPO BOE SJTL NBOBHFNFOU 5IJT TUSBUFHJD DIPJDF JT BQQMJFE UP BMM PG UIF *OTUJUVUFhT SFTFBSDI QSPHSBNNFT XIFUIFS UIFZ JOWPMWF QSPQPTJOH OFX NFUIPET PG TUSBUFHJD BMMPDBUJPO XIJDI JOUFHSBUF UIF BMUFSOBUJWF DMBTT UBLJOH FYUSFNF SJTLT JOUP BDDPVOU JO QPSUGPMJP DPOTUSVDUJPO TUVEZJOH UIF VTFGVMOFTT PG EFSJWBUJWFT JO JNQMFNFOUJOH BTTFUMJBCJMJUZ NBOBHFNFOU BQQSPBDIFT PS PSJFOUJOH UIF DPODFQU PG EZOBNJD iDPSFTBUFMMJUFu JOWFTUNFOU NBOBHFNFOU JO UIF GSBNFXPSL PG BCTPMVUF SFUVSO PS UBSHFUEBUF GVOET "DBEFNJD &YDFMMFODF BOE *OEVTUSZ 3FMFWBODF *O BO BUUFNQU UP FOTVSF UIBU UIF SFTFBSDI JU DBSSJFT PVU JT USVMZ BQQMJDBCMF &%)&$ IBT JNQMFNFOUFE B EVBM WBMJEBUJPO TZTUFN GPS UIF XPSL PG &%)&$3JTL "MM SFTFBSDI XPSL NVTU CF QBSU PG B SFTFBSDI QSPHSBNNF UIF SFMFWBODF BOE HPBMT PG XIJDI IBWF CFFO WBMJEBUFE GSPN CPUI BO BDBEFNJD BOE B CVTJOFTT WJFXQPJOU CZ UIF *OTUJUVUFhT BEWJTPSZ CPBSE 5IJT CPBSE JT NBEF VQ PG JOUFSOBUJPOBMMZ SFDPHOJTFE SFTFBSDIFST UIF *OTUJUVUFhT CVTJOFTT QBSUOFST BOE SFQSFTFO UBUJWFT PG NBKPS JOUFSOBUJPOBM JOTUJUVUJPOBM JOWFTUPST .BOBHFNFOU PG UIF SFTFBSDI QSPHSBNNFT SFTQFDUT B SJHPSPVT WBMJEBUJPO QSPDFTT XIJDI HVBSBOUFFT UIF TDJFOUJàD RVBMJUZ BOE UIF PQFSBUJPOBM VTFGVMOFTT PG UIF QSPHSBNNFT

4JY SFTFBSDI QSPHSBNNFT IBWF CFFO DPOEVDUFE CZ UIF DFOUSF UP EBUF ! "TTFU BMMPDBUJPO BOE BMUFSOBUJWF EJWFSTJàDBUJPO ! 4UZMF BOE QFSGPSNBODF BOBMZTJT ! *OEJDFT BOE CFODINBSLJOH ! 0QFSBUJPOBM SJTLT BOE QFSGPSNBODF ! "TTFU BMMPDBUJPO BOE EFSJWBUJWF JOTUSVNFOUT ! "-. BOE BTTFU NBOBHFNFOU 5IFTF QSPHSBNNFT SFDFJWF UIF TVQQPSU PG B MBSHF OVNCFS PG àOBODJBM DPNQBOJFT 5IF SFTVMUT PG UIF SFTFBSDI QSPHSBNNFT BSF EJTTFNJOBUFE UISPVHI UIF &%)&$3JTL MPDBUJPOT JO 4JOHBQPSF XIJDI XBT FTUBC MJTIFE BU UIF JOWJUBUJPO PG UIF .POFUBSZ "VUIPSJUZ PG 4JOHBQPSF ."4 UIF $JUZ PG -POEPO JO UIF 6OJUFE ,JOHEPN /JDF BOE 1BSJT JO 'SBODF BOE /FX :PSL JO UIF 6OJUFE 4UBUFT &%)&$3JTL IBT EFWFMPQFE B DMPTF QBSUOFSTIJQ XJUI B TNBMM OVNCFS PG TQPOTPST XJUIJO UIF GSBNFXPSL PG SFTFBSDI DIBJST PS NBKPS SFTFBSDI QSPKFDUT ! $PSF4BUFMMJUF BOE &5' *OWFTUNFOU JO QBSUOFSTIJQ XJUI "NVOEJ &5' ! 3FHVMBUJPO BOE *OTUJUVUJPOBM *OWFTUNFOU JO QBSUOFSTIJQ XJUI "9" *OWFTUNFOU .BOBHFST ! "TTFU-JBCJMJUZ .BOBHFNFOU BOE *OTUJUVUJPOBM *OWFTUNFOU .BOBHFNFOU JO QBSUOFSTIJQ XJUI #/1 1BSJCBT *OWFTUNFOU 1BSUOFST ! 3JTL BOE 3FHVMBUJPO JO UIF &VSPQFBO 'VOE .BOBHFNFOU *OEVTUSZ JO QBSUOFSTIJQ XJUI $"$&*4 ! &YQMPSJOH UIF $PNNPEJUZ 'VUVSFT 3JTL 1SFNJVN *NQMJDBUJPOT GPS "TTFU "MMPDBUJPO BOE 3FHVMBUJPO JO QBSUOFSTIJQ XJUI $.& (SPVQ ! "TTFU-JBCJMJUZ .BOBHFNFOU JO 1SJWBUF 8FBMUI .BOBHFNFOU JO QBSUOFSTIJQ XJUI $PVUUT $P



.BZ



!

!

!

!

!

!

!

!

!

!

!

!

"TTFU-JBCJMJUZ .BOBHFNFOU 5FDIOJRVFT GPS 4PWFSFJHO 8FBMUI 'VOE .BOBHFNFOU JO QBSUOFSTIJQ XJUI %FVUTDIF #BOL 5IF #FOFàUT PG 7PMBUJMJUZ %FSJWBUJWFT JO &RVJUZ 1PSUGPMJP .BOBHFNFOU JO QBSUOFSTIJQ XJUI &VSFY 4USVDUVSFE 1SPEVDUT BOE %FSJWBUJWF *OTUSVNFOUT TQPOTPSFE CZ UIF 'SFODI #BOLJOH 'FEFSBUJPO '#'

0QUJNJTJOH #POE 1PSUGPMJPT JO QBSUOFSTIJQ XJUI UIF 'SFODI $FOUSBM #BOL #%' (FTUJPO

"TTFU "MMPDBUJPO 4PMVUJPOT JO QBSUOFSTIJQ XJUI -ZYPS "TTFU .BOBHFNFOU *OGSBTUSVDUVSF &RVJUZ *OWFTUNFOU .BOBHFNFOU BOE #FODINBSLJOH JO QBSUOFSTIJQ XJUI .FSJEJBN BOE $BNQCFMM -VUZFOT *OWFTUNFOU BOE (PWFSOBODF $IBSBDUFSJTUJDT PG *OGSBTUSVDUVSF %FCU *OWFTUNFOUT JO QBSUOFSTIJQ XJUI /BUJYJT "EWBODFE .PEFMMJOH GPS "MUFSOBUJWF *OWFTUNFOUT JO QBSUOFSTIJQ XJUI /FXFEHF 1SJNF #SPLFSBHF "EWBODFE *OWFTUNFOU 4PMVUJPOT GPS -JBCJMJUZ )FEHJOH GPS *OáBUJPO 3JTL JO QBSUOFSTIJQ XJUI 0OUBSJP 5FBDIFST 1FOTJPO 1MBO 5IF $BTF GPS *OáBUJPO-JOLFE $PSQPSBUF #POET *TTVFST BOE *OWFTUPST 1FSTQFDUJWFT JO QBSUOFSTIJQ XJUI 3PUITDIJME $JF 4PMWFODZ ** JO QBSUOFSTIJQ XJUI 3VTTFMM *OWFTUNFOUT 4USVDUVSFE &RVJUZ *OWFTUNFOU 4USBUFHJFT GPS -POH5FSN "TJBO *OWFTUPST JO QBSUOFSTIJQ XJUI 4PDJÊUÊ (ÊOÊSBMF $PSQPSBUF *OWFTUNFOU #BOLJOH

5IF QIJMPTPQIZ PG UIF *OTUJUVUF JT UP WBMJEBUF JUT XPSL CZ QVCMJDBUJPO JO JOUFSOBUJPOBM BDBEFNJD KPVSOBMT BT XFMM BT UP NBLF JU BWBJMBCMF UP UIF TFDUPS UISPVHI JUT QPTJUJPO QBQFST QVCMJTIFE TUVEJFT BOE DPOGFSFODFT &BDI ZFBS &%)&$3JTL PSHBOJTFT UISFF DPOGFSFODFT GPS QSPGFTTJPOBMT JO PSEFS UP QSFTFOU UIF SFTVMUT PG JUT SFTFBSDI POF JO -POEPO &%)&$3JTL %BZT &VSPQF

POF JO 4JOHBQPSF &%)&$3JTL %BZT "TJB

BOE POF JO /FX :PSL &%)&$3JTL %BZT /PSUI "NFSJDB BUUSBDUJOH NPSF UIBO QSPGFT TJPOBM EFMFHBUFT &%)&$ BMTP QSPWJEFT QSPGFTTJPOBMT XJUI BDDFTT UP JUT XFCTJUF XXXFEIFDSJTLDPN XIJDI JT FOUJSFMZ EFWPUFE UP JOUFSOB UJPOBM BTTFU NBOBHFNFOU SFTFBSDI 5IF XFCTJUF XIJDI IBT NPSF UIBO SFHVMBS WJTJUPST JT BJNFE BU QSPGFT TJPOBMT XIP XJTI UP CFOFàU GSPN &%)&$T BOBMZTJT BOE FYQFSUJTF JO UIF BSFB PG BQQMJFE QPSUGPMJP NBOBHFNFOU SFTFBSDI *UT NPOUIMZ OFXTMFUUFS JT EJTUSJCVUFE UP NPSF UIBO NJMMJPO SFBEFST &%)&$3JTL *OTUJUVUF ,FZ 'JHVSFT /CS PG QFSNBOFOU TUBGG /CS PG SFTFBSDI BTTPDJBUFT /CS PG BGàMJBUF QSPGFTTPST 0WFSBMM CVEHFU &YUFSOBM àOBODJOH /CS PG DPOGFSFODF EFMFHBUFT /CS PG QBSUJDJQBOUT BU SFTFBSDI TFNJOBST /CS PG QBSUJDJQBOUT BU &%)&$3JTL *OTUJUVUF &YFDVUJWF &EVDBUJPO TFNJOBST

é é



.BZ



5IF &%)&$3JTL *OTUJUVUF 1I% JO 'JOBODF 5IF &%)&$3JTL *OTUJUVUF 1I% JO 'JOBODF JT EFTJHOFE GPS QSPGFTTJPOBMT XIP BTQJSF UP IJHIFS JOUFMMFDUVBM MFWFMT BOE BJN UP SFEFàOF UIF JOWFTUNFOU CBOLJOH BOE BTTFU NBOBHFNFOU JOEVTUSJFT *U JT PGGFSFE JO UXP USBDLT B SFTJEFOUJBM USBDL GPS IJHI QPUFOUJBM HSBEVBUF TUVEFOUT XIP IPME QBSU UJNF QPTJUJPOT BU &%)&$ BOE BO FYFDVUJWF USBDL GPS QSBDUJUJPOFST XIP LFFQ UIFJS GVMM UJNF KPCT %SBXJOH JUT GBDVMUZ GSPN UIF XPSMET CFTU VOJWFSTJUJFT TVDI BT 1SJODFUPO 8IBSUPO 0YGPSE $IJDBHP BOE $BM5FDI BOE FOKPZJOH UIF TVQQPSU PG UIF SFTFBSDI DFOUSF XJUI UIF HSFBUFTU JNQBDU PO UIF àOBODJBM JOEVTUSZ UIF &%)&$3JTL *OTUJUVUF 1I% JO 'JOBODF DSFBUFT BO FYUSBPSEJOBSZ QMBUGPSN GPS QSPGFTTJPOBM EFWFMPQNFOU BOE JOEVTUSZ JOOPWBUJPO

SFTFBSDI QSPHSBNNF JO UIF BSFB PG SJTL BOE JOWFTUNFOU NBOBHFNFOU BOE XJUI :BMF 4DIPPM PG .BOBHFNFOU UP TFU VQ KPJOU DFSUJàFE FYFDVUJWF USBJOJOH DPVSTFT JO /PSUI "NFSJDB BOE &VSPQF JO UIF BSFB PG JOWFTUNFOU NBOBHFNFOU "T QBSU PG JUT QPMJDZ PG USBOTGFSSJOH LOPX IPX UP UIF JOEVTUSZ &%)&$3JTL *OTUJUVUF IBT BMTP TFU VQ &3* 4DJFOUJàD #FUB &3* 4DJFOUJàD #FUB JT BO PSJHJOBM JOJUJBUJWF XIJDI BJNT UP GBWPVS UIF BEPQUJPO PG UIF MBUFTU BEWBODFT JO TNBSU CFUB EFTJHO BOE JNQMFNFOUBUJPO CZ UIF XIPMF JOWFTUNFOU JOEVTUSZ *UT BDBEFNJD PSJHJO QSPWJEFT UIF GPVOEBUJPO GPS JUT TUSBUFHZ PGGFS JO UIF CFTU FDPOPNJD DPOEJUJPOT QPTTJCMF UIF TNBSU CFUB TPMVUJPOT UIBU BSF NPTU QSPWFO TDJFO UJàDBMMZ XJUI GVMM USBOTQBSFODZ JO CPUI UIF NFUIPET BOE UIF BTTPDJBUFE SJTLT

3FTFBSDI GPS #VTJOFTT 5IF *OTUJUVUFT BDUJWJUJFT IBWF BMTP HJWFO SJTF UP FYFDVUJWF FEVDBUJPO BOE SFTFBSDI TFSWJDF PGGTIPPUT &%)&$3JTLhT FYFDVUJWF FEVDBUJPO QSPHSBNNFT IFMQ JOWFTUNFOU QSPGFTTJPOBMT UP VQHSBEF UIFJS TLJMMT XJUI BEWBODFE SJTL BOE BTTFU NBOBHFNFOU USBJOJOH BDSPTT USBEJUJPOBM BOE BMUFSOBUJWF DMBTTFT *O QBSUOFSTIJQ XJUI $'" *OTUJUVUF JU IBT EFWFMPQFE BEWBODFE TFNJOBST CBTFE PO JUT SFTFBSDI XIJDI BSF BWBJMBCMF UP $'" DIBSUFSIPMEFST BOE IBWF CFFO UBLJOH QMBDF TJODF JO /FX :PSL 4JOHBQPSF BOE -POEPO *O &%)&$3JTL *OTUJUVUF TJHOFE UXP TUSBUFHJD QBSUOFSTIJQ BHSFFNFOUT XJUI UIF 0QFSBUJPOT 3FTFBSDI BOE 'JOBODJBM &OHJOFFSJOH EFQBSUNFOU PG 1SJODFUPO 6OJWFSTJUZ UP TFU VQ B KPJOU



.BZ

&%)&$3JTL *OTUJUVUF 1VCMJDBUJPOT BOE 1PTJUJPO 1BQFST



.BZ


&%)&$3JTL *OTUJUVUF 1VCMJDBUJPOT

! %FHVFTU 3 - .BSUFMMJOJ BOE 7 .JMIBV )FEHJOH WFSTVT JOTVSBODF -POHIPSJ[PO JOWFTUJOH XJUI TIPSUUFSN DPOTUSBJOUT 'FCSVBSZ !

!

!

!

!

!

"NFOD / ' (PMU[ / (PO[BMF[ / 4IBI & 4IJSCJOJ BOE / 5FTTBSPNBUJT 5IF &%)&$ FVSPQFBO &5' TVSWFZ 'FCSVBSZ 1BENBOBCBO / . .VLBJ - 5BOH BOE 7 -F 4PVSE "TTFTTJOH UIF RVBMJUZ PG BTJBO TUPDL NBSLFU JOEJDFT 'FCSVBSZ (PMU[ ' 7 -F 4PVSE . .VLBJ BOE ' 3BDIJEZ 3FBDUJPOT UP i" SFWJFX PG DPSQPSBUF CPOE JOEJDFT $POTUSVDUJPO QSJODJQMFT SFUVSO IFUFSPHFOFJUZ BOE áVDUVBUJPOT JO SJTL FYQPTVSFTu +BOVBSZ +PFOWÅÅSÅ + BOE 3 ,PTPXTLJ "O BOBMZTJT PG UIF DPOWFSHFODF CFUXFFO NBJOTUSFBN BOE BMUFSOBUJWF BTTFU NBOBHFNFOU +BOVBSZ $PDRVFNBT ' 5PXBSET CFUUFS DPOTJEFSBUJPO PG QFOTJPO MJBCJMJUJFT JO FVSPQFBO VOJPO DPVOUSJFT +BOVBSZ #MBOD#SVEF ' 5PXBSET FGàDJFOU CFODINBSLT GPS JOGSBTUSVDUVSF FRVJUZ JOWFTUNFOUT +BOVBSZ

! "SJBT - 1 'PVMRVJFS BOE " -F .BJTUSF -FT JNQBDUT EF 4PMWBCJMJUÊ ** TVS MB HFTUJPO PCMJHBUBJSF %FDFNCFS !

!

!

!

!

!

!

"SJBT - 1 'PVMRVJFS BOE " -F .BJTUSF 5IF *NQBDU PG 4PMWFODZ ** PO #POE .BOBHFNFOU %FDFNCFS "NFOD / BOE ' %VDPVMPNCJFS 1SPQPTBMT GPS CFUUFS NBOBHFNFOU PG OPOàOBODJBM SJTLT XJUIJO UIF FVSPQFBO GVOE NBOBHFNFOU JOEVTUSZ %FDFNCFS $PDRVFNBT ' *NQSPWJOH SJTL NBOBHFNFOU JO %$ BOE IZCSJE QFOTJPO QMBOT /PWFNCFS "NFOD / ' $PDRVFNBT - .BSUFMMJOJ BOE 4 4FOEFS 3FTQPOTF UP UIF FVSPQFBO DPNNJTTJPO XIJUF QBQFS "O BHFOEB GPS BEFRVBUF TBGF BOE TVTUBJOBCMF QFOTJPOT 0DUPCFS -B HFTUJPO JOEJDJFMMF EBOT MhJNNPCJMJFS FU MhJOEJDF &%)&$ *&*' *NNPCJMJFS Eh&OUSFQSJTF 'SBODF 4FQUFNCFS 3FBM FTUBUF JOEFYJOH BOE UIF &%)&$ *&*' DPNNFSDJBM QSPQFSUZ 'SBODF JOEFY 4FQUFNCFS (PMU[ ' 4 4UPZBOPW 5IF SJTLT PG WPMBUJMJUZ &5/T " SFDFOU JODJEFOU BOE VOEFSMZJOH JTTVFT 4FQUFNCFS



.BZ



!

!

!

!

!

!

!

!

!

!

"NFOD / ' (PMU[ 7 .JMIBV BOE . .VLBJ 3FBDUJPOT UP UIF &%)&$ TUVEZ i0QUJNBM EFTJHO PG DPSQPSBUF NBSLFU EFCU QSPHSBNNFT JO UIF QSFTFODF PG JOUFSFTUSBUF BOE JOáBUJPO SJTLTu .BZ (PMU[ ' - .BSUFMMJOJ BOE 4 4UPZBOPW &%)&$3JTL FRVJUZ WPMBUJMJUZ JOEFY .FUIPE PMPHZ .BZ "NFOD / ' (PMU[ . .BTBZPTIJ 1 /BSBTJNIBO BOE - 5BOH &%)&$3JTL "TJBO JOEFY TVSWFZ .BZ (VPCV[BJUF 3 BOE - .BSUFMMJOJ 5IF CFOFàUT PG WPMBUJMJUZ EFSJWBUJWFT JO FRVJUZ QPSUGPMJP NBOBHFNFOU "QSJM "NFOD / ' (PMU[ - 5BOH BOE 7 7BJEZBOBUIBO &%)&$3JTL /PSUI "NFSJDBO JOEFY TVSWFZ .BSDI "NFOD / ' $PDRVFNBT 3 %FHVFTU 1 'PVMRVJFS - .BSUFMMJOJ BOE 4 4FOEFS *OUSP EVDJOH UIF &%)&$3JTL 4PMWFODZ ** #FODINBSLT m NBYJNJTJOH UIF CFOFàUT PG FRVJUZ JOWFTUNFOUT GPS JOTVSBODF DPNQBOJFT GBDJOH 4PMWFODZ ** DPOTUSBJOUT 4VNNBSZ .BSDI 4DIPFGáFS 1 0QUJNBM NBSLFU FTUJNBUFT PG 'SFODI PGàDF QSPQFSUZ QFSGPSNBODF .BSDI -F 4PVSE 7 1FSGPSNBODF PG TPDJBMMZ SFTQPOTJCMF JOWFTUNFOU GVOET BHBJOTU BO FGàDJFOU 43* *OEFY 5IF JNQBDU PG CFODINBSL DIPJDF XIFO FWBMVBUJOH BDUJWF NBOBHFST m BO VQEBUF .BSDI .BSUFMMJOJ - 7 .JMIBV BOE " 5BSFMMJ %ZOBNJD JOWFTUNFOU TUSBUFHJFT GPS DPSQPSBUF QFOTJPO GVOET JO UIF QSFTFODF PG TQPOTPS SJTL .BSDI

!

(PMU[ ' BOE - 5BOH 5IF &%)&$ &VSPQFBO &5' TVSWFZ .BSDI

!

4FOEFS 4 4IJGUJOH UPXBSET IZCSJE QFOTJPO TZTUFNT " &VSPQFBO QFSTQFDUJWF .BSDI

!

#MBOD#SVEF ' 1FOTJPO GVOE JOWFTUNFOU JO TPDJBM JOGSBTUSVDUVSF 'FCSVBSZ

!

!

!

!

"MNFJEB $ BOE 3 (BSDJB 3PCVTU BTTFTTNFOU PG IFEHF GVOE QFSGPSNBODF UISPVHI OPOQBSBNFUSJD EJTDPVOUJOH +VOF

%VDPVMPNCJFS ' - -JYJB BOE 4 4UPZBOPW 8IBU BTTFUMJBCJMJUZ NBOBHFNFOU TUSBUFHZ GPS TPWFSFJHO XFBMUI GVOET 'FCSVBSZ "NFOD / ' $PDRVFNBT BOE 4 4FOEFS 4IFEEJOH MJHIU PO OPOàOBODJBM SJTLT m B &VSPQFBO TVSWFZ +BOVBSZ "NFOD / ' $PDRVFNBT 3 %FHVFTU 1 'PVMRVJFS - .BSUFMMJOJ BOE 4 4FOEFS (SPVOE SVMFT GPS UIF &%)&$3JTL 4PMWFODZ ** #FODINBSLT +BOVBSZ "NFOD / ' $PDRVFNBT 3 %FHVFTU 1 'PVMRVJFS - .BSUFMMJOJ BOE 4 4FOEFS *OUSP EVDJOH UIF &%)&$3JTL 4PMWFODZ ** #FODINBSLT m NBYJNJTJOH UIF CFOFàUT PG FRVJUZ



.BZ



JOWFTUNFOUT GPS JOTVSBODF DPNQBOJFT GBDJOH 4PMWFODZ ** DPOTUSBJOUT 4ZOUIFTJT +BOVBSZ !

!

"NFOD / ' $PDRVFNBT 3 %FHVFTU 1 'PVMRVJFS - .BSUFMMJOJ BOE 4 4FOEFS *OUSP EVDJOH UIF &%)&$3JTL 4PMWFODZ ** #FODINBSLT m NBYJNJTJOH UIF CFOFàUT PG FRVJUZ JOWFTUNFOUT GPS JOTVSBODF DPNQBOJFT GBDJOH 4PMWFODZ ** DPOTUSBJOUT +BOVBSZ 4DIPFGáFS 1 -FT FTUJNBUFVST EF NBSDIÊ PQUJNBVY EF MB QFSGPSNBODF EF MJNNPCJMJFS EF CVSFBVY FO 'SBODF +BOVBSZ

! "NFOD / ' (PMU[ - .BSUFMMJOJ BOE % 4BIPP " MPOH IPSJ[PO QFSTQFDUJWF PO UIF DSPTTTFDUJPOBM SJTLSFUVSO SFMBUJPOTIJQ JO FRVJUZ NBSLFUT %FDFNCFS ! !

!

!

!

! !

!

!

!

!

!

!

"NFOD / ' (PMU[ BOE - 5BOH &%)&$3JTL &VSPQFBO JOEFY TVSWFZ 0DUPCFS %FHVFTU 3 - .BSUFMMJOJ BOE 7 .JMIBV -JGFDZDMF JOWFTUJOH JO QSJWBUF XFBMUI NBOBHFNFOU 0DUPCFS "NFOD / ' (PMU[ - .BSUFMMJOJ BOE - 5BOH *NQSPWFE CFUB " DPNQBSJTPO PG JOEFY XFJHIUJOH TDIFNFT 4FQUFNCFS -F 4PVSE 7 1FSGPSNBODF PG TPDJBMMZ SFTQPOTJCMF JOWFTUNFOU GVOET BHBJOTU BO FGàDJFOU 43* JOEFY 5IF JNQBDU PG CFODINBSL DIPJDF XIFO FWBMVBUJOH BDUJWF NBOBHFST 4FQUFNCFS $IBSCJU & (JSBVE + 3 (PMU[ ' BOE -5BOH $BQUVSJOH UIF NBSLFU WBMVF PS NPNFOUVN QSFNJVN XJUI EPXOTJEF SJTL DPOUSPM %ZOBNJD BMMPDBUJPO TUSBUFHJFT XJUI FYDIBOHFUSBEFE GVOET +VMZ 4DIFSFS # "O JOUFHSBUFE BQQSPBDI UP TPWFSFJHO XFBMUI SJTL NBOBHFNFOU +VOF $BNQBOJ $) BOE ' (PMU[ " SFWJFX PG DPSQPSBUF CPOE JOEJDFT $POTUSVDUJPO QSJODJQMFT SFUVSO IFUFSPHFOFJUZ BOE áVDUVBUJPOT JO SJTL FYQPTVSFT +VOF .BSUFMMJOJ - BOE 7 .JMIBV $BQJUBM TUSVDUVSF DIPJDFT QFOTJPO GVOE BMMPDBUJPO EFDJTJPOT BOE UIF SBUJPOBM QSJDJOH PG MJBCJMJUZ TUSFBNT +VOF "NFOD / ' (PMU[ BOE 4 4UPZBOPW " QPTUDSJTJT QFSTQFDUJWF PO EJWFSTJàDBUJPO GPS SJTL NBOBHFNFOU .BZ "NFOD / ' (PMU[ - .BSUFMMJOJ BOE - 5BOH *NQSPWFE CFUB " DPNQBSJTPO PG JOEFY XFJHIUJOH TDIFNFT "QSJM "NFOD / ' (PMU[ - .BSUFMMJOJ BOE % 4BIPP *T UIFSF B SJTLSFUVSO USBEFPGG BDSPTT TUPDLT "O BOTXFS GSPN B MPOHIPSJ[PO QFSTQFDUJWF "QSJM 4FOEFS 4 5IF FMFQIBOU JO UIF SPPN "DDPVOUJOH BOE TQPOTPS SJTLT JO DPSQPSBUF QFOTJPO QMBOT .BSDI .BSUFMMJOJ - BOE 7 .JMIBV 0QUJNBM EFTJHO PG DPSQPSBUF NBSLFU EFCU QSPHSBNNFT JO UIF QSFTFODF PG JOUFSFTUSBUF BOE JOáBUJPO SJTLT 'FCSVBSZ



.BZ



! "NFOD / BOE 4 4FOEFS 5IF &VSPQFBO GVOE NBOBHFNFOU JOEVTUSZ OFFET B CFUUFS HSBTQ PG OPOàOBODJBM SJTLT %FDFNCFS !

!

!

!

!

!

!

!

! !

! !

!

!

"NFOD / 4 'PDBSEJ ' (PMU[ % 4DISÕEFS BOE - 5BOH &%)&$3JTL &VSPQFBO QSJWBUF XFBMUI NBOBHFNFOU TVSWFZ /PWFNCFS "NFOD / ' (PMU[ BOE - 5BOH "EPQUJPO PG HSFFO JOWFTUJOH CZ JOTUJUVUJPOBM JOWFTUPST " &VSPQFBO TVSWFZ /PWFNCFS .BSUFMMJOJ - BOE 7 .JMIBV "O JOUFHSBUFE BQQSPBDI UP BTTFUMJBCJMJUZ NBOBHFNFOU $BQJUBM TUSVDUVSF DIPJDFT QFOTJPO GVOE BMMPDBUJPO EFDJTJPOT BOE UIF SBUJPOBM QSJDJOH PG MJBCJMJUZ TUSFBNT /PWFNCFS )JUBK " - .BSUFMMJOJ BOE ( ;BNCSVOP 0QUJNBM IFEHF GVOE BMMPDBUJPO XJUI JNQSPWFE FTUJNBUFT GPS DPTLFXOFTT BOE DPLVSUPTJT QBSBNFUFST 0DUPCFS "NFOD / ' (PMU[ - .BSUFMMJOJ BOE 7 .JMIBV /FX GSPOUJFST JO CFODINBSLJOH BOE MJBCJMJUZESJWFO JOWFTUJOH 4FQUFNCFS .BSUFMMJOJ - BOE 7 .JMIBV 'SPN EFUFSNJOJTUJD UP TUPDIBTUJD MJGFDZDMF JOWFTUJOH *NQMJDBUJPOT GPS UIF EFTJHO PG JNQSPWFE GPSNT PG UBSHFU EBUF GVOET 4FQUFNCFS .BSUFMMJOJ - BOE 7 .JMIBV $BQJUBM TUSVDUVSF DIPJDFT QFOTJPO GVOE BMMPDBUJPO EFDJTJPOT BOE UIF SBUJPOBM QSJDJOH PG MJBCJMJUZ TUSFBNT +VMZ 4FOEFS 4 &%)&$ TVSWFZ PG UIF BTTFU BOE MJBCJMJUZ NBOBHFNFOU QSBDUJDFT PG &VSPQFBO QFOTJPO GVOET +VOF (PMU[ ' " (SJHPSJV BOE - 5BOH 5IF &%)&$ &VSPQFBO &5' TVSWFZ .BZ .BSUFMMJOJ - BOE 7 .JMIBV "TTFUMJBCJMJUZ NBOBHFNFOU EFDJTJPOT GPS TPWFSFJHO XFBMUI GVOET .BZ "NFOD / BOE 4 4FOEFS "SF IFEHFGVOE 6$*54 UIF DVSFBMM .BSDI "NFOD / ' (PMU[ BOE " (SJHPSJV 3JTL DPOUSPM UISPVHI EZOBNJD DPSFTBUFMMJUF QPSUGPMJPT PG &5'T "QQMJDBUJPOT UP BCTPMVUF SFUVSO GVOET BOE UBDUJDBM BTTFU BMMPDBUJPO +BOVBSZ "NFOD / ' (PMU[ BOE 1 3FULPXTLZ &GàDJFOU JOEFYBUJPO "O BMUFSOBUJWF UP DBQ XFJHIUFE JOEJDFT +BOVBSZ (PMU[ ' BOE 7 -F 4PVSE %PFT àOBODF UIFPSZ NBLF UIF DBTF GPS DBQJUBMJTBUJPO XFJHIUFE JOEFYJOH +BOVBSZ



.BZ


&%)&$3JTL *OTUJUVUF 1PTJUJPO 1BQFST

!

5JMM ) 8IP TBOL UIF CPBU +VOF

!

6QQBM 3 'JOBODJBM SFHVMBUJPO "QSJM

!

"NFOD / ' %VDPVMPNCJFS ' (PMU[ BOE - 5BOH 8IBU BSF UIF SJTLT PG &VSPQFBO &5'T +BOVBSZ

! "NFOD / BOE 4 4FOEFS 3FTQPOTF UP &4." DPOTVMUBUJPO QBQFS UP JNQMFNFOUJOH NFBTVSFT GPS UIF "*'.% 4FQUFNCFS !

!

6QQBM 3 " TIPSU OPUF PO UIF 5PCJO 5BY 5IF DPTUT BOE CFOFàUT PG B 5BY PO àOBODJBM USBOTBDUJPOT +VMZ 5JMM ) " SFWJFX PG UIF ( NFFUJOH PO BHSJDVMUVSF "EESFTTJOH QSJDF WPMBUJMJUZ JO UIF GPPE NBSLFUT +VMZ

! "NFOD / BOE 7 -F 4PVSE 5IF 1FSGPSNBODF PG 4PDJBMMZ 3FTQPOTJCMF *OWFTUNFOU BOE 4VTUBJOBCMF %FWFMPQNFOU JO 'SBODF "O 6QEBUF BGUFS UIF 'JOBODJBM $SJTJT 4FQUFNCFS !

!

!

"NFOD / " $IÊSPO 4 (SFHPJS BOE - .BSUFMMJOJ *M GBVU QSÊTFSWFS MF 'POET EF 3ÊTFSWF QPVS MFT 3FUSBJUFT +VMZ 8JUI UIF &%)&$ &DPOPNJDT 3FTFBSDI $FOUSF "NFOD / 1 4DIPFGáFS BOE 1 -BTTFSSF 0SHBOJTBUJPO PQUJNBMF EF MB MJRVJEJUÊ EFT GPOET EJOWFTUJTTFNFOU .BSDI -JPVJ " 4QJMMPWFS &GGFDUT PG $PVOUFS$ZDMJDBM .BSLFU 3FHVMBUJPO &WJEFODF GSPN UIF #BO PO 4IPSU 4BMFT .BSDI



.BZ


/PUFT



.BZ


/PUFT



.BZ


.BZ

'PS NPSF JOGPSNBUJPO QMFBTF DPOUBDU $BSPMZO &TTJE PO PS CZ FNBJM UP DBSPMZOFTTJE!FEIFDSJTLDPN

&%)&$3JTL *OTUJUVUF QSPNFOBEF EFT "OHMBJT #1 /JDF $FEFY 'SBODF 5FM &%)&$ 3JTL *OTUJUVUF&VSPQF 'MFFU 1MBDF -VEHBUF -POEPO &$. 3# 6OJUFE ,JOHEPN 5FM &%)&$ 3JTL *OTUJUVUF"TJB (FPSHF 4USFFU 4JOHBQPSF 5FM &%)&$ 3JTL *OTUJUVUF/PSUI "NFSJDB "WFOVF PG UIF "NFSJDBT 3PDLFGFMMFS $FOUFS UI 'MPPS /FX :PSL $JUZ /: 64" 5FM &%)&$ 3JTL *OTUJUVUF'SBODF SVF EV TFQUFNCSF 1BSJT 'SBODF 5FM

XXXFEIFDSJTLDPN


.BZ