3UDFWLFDO *36 6XUYH\LQJ
(O &DPLQR 5HDO 6DQWD &ODUD &D 7HO )D[ :DVKLQJWRQ ' & 7HO )D[ (QJODQG 7HO )D[ 0RVFRZ 7HO )D[
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³8 6 $ ´ DQG RU WKH MXULV GLFWLRQ LQ ZKLFK \RX DUH ORFDWHG )RU LQIRUPDWLRQ RQ WUDQVODWLRQV DQG GLVWULEXWLRQ RXWVLGH WKH 8 6 $ SOHDVH FRQWDFW 0DJHOODQ 3ULQWHG LQ WKH 8QLWHG 6WDWHV RI $PHULFD 3DUW 1XPEHU 5HYLVLRQ $ $XJXVW 7UDGHPDUN 1RWLFH $VKWHFK LV D UHJLVWHUHG WUDGHPDUN RI 0DJHOODQ &RUSRUDWLRQ $OO RWKHU SURGXFW DQG EUDQG QDPHV DUH WUDGHPDUNV RU UHJLVWHUHG WUDGHPDUNV RI WKHLU UHVSHFWLYH KROGHUV
,QWURGXFWLRQ
UHVHFWLRQ IURP NQRZQ PRQXPHQWV ZKLFK DUH WKH VDWHO OLWHV
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¶V UDQJH FDOFXOD WLRQV LQ UHDO WLPH RU DIWHU WKH IDFW 7KH WUDGH RII IRU EHWWHU DFFXUDF\ LV WKH QHHG IRU PRUH HTXLSPHQW
7KH *36 6\VWHP 7R VWDUW OHW¶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
3UDFWLFDO *36 6XUYH\ *XLGH
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
8VLQJ D VXUYH\ DQDORJ\ WKH UHFHLYHU LV WKH KHDG FKDLQ PDQ DQG UHDGV WKH DGG SRUWLRQ RI WKH WDSH IRU WKH IUDF WLRQDO PHDVXUHPHQW 7KDW LV WKH UHFHLYHU GHWHUPLQHV WKH IUDFWLRQDO SRUWLRQ RI D VLQJOH ZDYHOHQJWK DQG WKLV PHDVXUHPHQW LV WKH PLOOLPHWHU SRUWLRQ RI RXU WRWDO PHDVXUHPHQW %XW XQOLNH \RXU FRQYHQWLRQDO ('0 ZLWK RQH FORFN DQG D UHIOHFWHG VLJQDO WKH *36 UHFHLYHU KDV QR ZD\ RI FRXQWLQJ KRZ PDQ\ ZKROH ZDYHOHQJWKV WKHUH DUH EHKLQG WKLV IUDFWLRQDO PHDVXUHPHQW ,W FDQ¶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¶W \RX ZRQ¶W :KDW LV D VXIILFLHQW QXPEHU" ,W YDULHV %XW GRQ¶W ZRUU\ :H ZRQ¶W OHDYH \RX FRPSOHWHO\ IUXV WUDWHG 7KH JXLGHOLQHV LQ WKH IROORZLQJ SDJHV ZLOO KHOS \RX WR GHWHUPLQH KRZ PXFK WLPH LV QHHGHG WR PDNH D VXIILFLHQW QXPEHU RI PHDVXUHPHQWV DQG KRZ PDQ\ VDWHOOLWHV DUH QHFHVVDU\ IRU HDFK RI RXU *36 PHDVXUH PHQW WHFKQLTXHV $ JRRG UXOH RI WKXPE LV ZLWK *36 \RX FDQ¶W KDYH WRR PXFK RU WRR PDQ\
&RPSDULQJ &RQYHQWLRQDO DQG *36 6XUYH\V $V WKLV LV LQWHQGHG DV D JXLGH IRU WKH VXUYH\RU QHZ WR *36 WKH ILUVW WKLQJ ZH¶OO GR LV H[SODLQ D OLWWOH DERXW ZKDW H[DFWO\ D *36 PHDVXUHPHQW FRQVLVWV RI DQG ZH¶OO DOVR FRPSDUH FRQYHQWLRQDO VXUYH\ PHWKRGV WR *36 VXU YH\ PHWKRGV *36 LV VLPSO\ DQ ('0 GHYLFH WKDW GRHV QRW QHHG GLUHFW OLQH RI VLJKW EHWZHHQ VXUYH\ SRLQWV ,QVWHDG D *36 UHFHLYHU QHHGV WR KDYH D GLUHFW OLQH RI VLJKW WR D VXIILFLHQW QXPEHU RI VDWHOOLWHV :LWK *36 ZH ZDQW WR ORRN XS QRW RXW .HHS LQ PLQG WKDW *36 LV QRW WKH VROXWLRQ IRU HYHU\ VXUYH\ WDVN /LNH DQ\ RWKHU WRRO LW KDV DGYDQWDJHV DQG GLVDGYDQWDJHV ,W LV VLPSO\ RQH
RI WKH PDQ\ WRROV WKDW VKRXOG EH LQ WKH VXUYH\RU¶V WRRO ER[ 7KH *36 PHDVXUHPHQW LV D WKUHH GLPHQVLRQDO YHFWRU IURP PDUN WR PDUN ,W FRQWDLQV GLVWDQFH GLUHFWLRQ DQG GLIIHUHQFH LQ KHLJKW EHWZHHQ RXU VXUYH\ SRLQWV *HQHU DOO\ WKH VRIWZDUH ZLOO UHSRUW WKH YHFWRU DV WKH GLIIHUHQFH LQ WKH HDUWK FHQWHUHG HDUWK IL[HG ; < = FRRUGLQDWHV RI WKH VXUYH\ SRLQWV $ *36 YHFWRU FDQ DOVR EH GHILQHG XVLQJ D ORFDO ( 1 8 V\VWHP RU D JHRGHWLF 'LVWDQFH $]L PXWK +HLJKW IRUPDW 7KH UHFHLYHU PDNHV LWV PHDVXUH PHQWV EHWZHHQ LWV DQWHQQD¶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¶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
7KH 'XDO +HLJKW 'HPRQ 7UDGLWLRQDOO\ WKH PDMRU VWXPEOLQJ EORFN LQ XVLQJ *36 IRU VXUYH\LQJ KDV EHHQ LWV VKRUWFRPLQJV LQ HVWDEOLVKLQJ HOHYDWLRQ 7KH EDVLF SUREOHP LV WKDW LW LV LPSRVVLEOH WR GLUHFWO\ PHDVXUH HOHYDWLRQ GLIIHUHQFHV ZLWK *36 :LWK *36 ZH FDQ GLUHFWO\ PHDVXUH HOOLSVRLGDO KHLJKW GLIIHU HQFHV RQO\ 7R GLUHFWO\ PHDVXUH HOHYDWLRQ GLIIHUHQFHV ZH QHHG WR XVH D VXUYH\RU¶V OHYHO 7KDW VDLG LW LV SRVVL EOH WR SODFH YHU\ JRRG *36 GHULYHG HOHYDWLRQV RQ RXU VXUYH\ SRLQWV ZLWK WKH KHOS RI D JRRG JHRLG PRGHO 7KLV GXDO KHLJKW V\VWHP KDV EHHQ RQH RI WKH KDUGHVW FRQ FHSWV IRU QHZ XVHUV WR JUDVS DQG ZH¶OO WU\ WR H[SODLQ LW DV VLPSO\ DV SRVVLEOH (OHYDWLRQ LV GHILQHG DV WKH KHLJKW RI D SRLQW DERYH D JUDYLW\ VXUIDFH +LVWRULFDOO\ ZH KDYH XVHG WKH FRQFHSW 3UDFWLFDO *36 6XUYH\ *XLGH
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¶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
ZH JHW IDUWKHU DZD\ IURP RXU FRQWUROOLQJ HOHYDWLRQV :H VKRXOG KDYH D EDUH PLQLPXP RI WKUHH ZHOO VSDFHG FRQWURO EHQFKPDUNV LI ZH ZDQW WR XVH *36 WR GHULYH HOHYDWLRQV DOWKRXJK WKH UHFRPPHQGHG PLQLPXP QXPEHU LV IRXU +DYLQJ IRXU EHQFKPDUNV DOORZV XV VRPH UHGXQGDQF\ DQG SURYLGHV XV ZLWK VRPH LQGLFDWLRQ RI WKH DFFXUDF\ RI RXU FRQWURO EHQFKPDUNV
'HILQLWLRQ RI WKH WHUPV 6WDWLF DQG '\QDPLF IRU *36 6XUYH\LQJ /HW¶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¶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
3VHXGR NLQHPDWLF SVHXGR VWDWLF DQG UHSHDW RFFXSDWLRQ DOO UHIHU WR WKH VDPH VLQJOH IUHTXHQF\ VXUYH\LQJ WHFK QLTXH 7KLV WHFKQLTXH LV DQ DWWHPSW WR REWDLQ WKH HIIL FLHQF\ RI GXDO IUHTXHQF\ VKRUW VWDWLF RFFXSDWLRQV E\ UHSHDWLQJ VKRUW REVHUYDWLRQV RI WKH VDPH SRLQWV 7KH REVHUYDWLRQV DUH VHSDUDWHG E\ VRPH WLPH LQWHUYDO XVX DOO\ WKH WLPH VSDQ RI D VWDQGDUG VWDWLF VHVVLRQ WKDW DOORZV IRU D VXIILFLHQW FKDQJH LQ VDWHOOLWH JHRPHWU\ WR IL[ RXU GLVWDQFH PHDVXUHPHQWV DW WKH FHQWLPHWHU OHYHO ,W¶V OLNH D ORQJ VWDWLF REVHUYDWLRQ EXW WKH SDUW LQ WKH PLGGOH LV LJQRUHG ,QVWHDG GXULQJ WKH PLGGOH SDUW \RX DUH RFFXS\LQJ RWKHU VLWHV WKH VDPH ZD\ :LWK ³SVHXGR´ RU UHSHDW RFFXSDWLRQ PHWKRGV WKH UHFHLYHU XVXDOO\ VWD\V WXUQHG RQ ZKHQ PRYLQJ EHWZHHQ VXUYH\ VLWHV 7KH VRIWZDUH LJQRUHV WKH GDWD FROOHFWHG ZKLOH PRYLQJ DQG XVHV RQO\ WKH GDWD JDWKHUHG E\ WKH UHFHLYHUV ZKLOH RFFXS\LQJ WKH VXUYH\ SRLQWV 7KHVH ³SVHXGR´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¶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
3UDFWLFDO *36 6XUYH\ *XLGH
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µRQ WKH IO\ ¶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
6WDWLF *36 6XUYH\LQJ 6WDWLF *36 LV WKH RULJLQDO WHFKQLTXH XVHG LQ *36 VXUYH\ SRVLWLRQLQJ ,W LV UHOLDEOH DQG DFFXUDWH +LVWRULFDOO\ LW KDV EHHQ GRQH XVLQJ PXOWLSOH UHFHLYHUV WR EXLOG VWURQJ QHWZRUNV RI SRLQWV WKDW IDFLOLWDWH WKH XVH RI OHDVW VTXDUHV DGMXVWPHQW WHFKQLTXHV WR SURYLGH H[WUHPHO\ DFFXUDWH SRVLWLRQV ZLWK FRQILGHQFH 7KLV LV WKH VWUHQJWK RI VWDWLF *36 7KH GLVDGYDQWDJH LV WKDW LW WDNHV ORQJHU WR SRVLWLRQ D SRLQW WKDQ LI ZH XVH G\QDPLF PHWKRGV ,W¶V WKH ROG WUDGH RII 6SHHG DQG HIILFLHQF\ YHUVXV DFFXUDF\ DQG FRQILGHQFH :H ZLOO ZDQW WR XVH VWDWLF *36 PHWKRGV ZKHQ ZH¶UH HVWDEOLVKLQJ QHZ FRQWURO SRLQWV
&RQWURO 7KH ILUVW WKLQJ ZH VKRXOG GR LQ SUHSDULQJ IRU D VWDWLF *36 VXUYH\ LV WR ILQG RXW ZKHUH WKH FRQWURO LV ZKR HVWDEOLVKHG WKH FRQWURO DQG KRZ LW ZDV HVWDEOLVKHG :H UHFRPPHQG WKDW \RX XVH RQO\ JRRG TXDOLW\ FRQWURO HVWDEOLVKHG E\ *36 PHWKRGV IRU \RXU KRUL]RQWDO QHHGV DQG JRRG KLJK RUGHU EHQFK PDUNV WR FRQWURO \RXU YHUWL FDO .QRZ \RXU VRXUFH 7KH EHVW SODFH WR ILQG JRRG FRQWURO LV LQ WKH 1DWLRQDO *HRGHWLF 6XUYH\¶V GDWDEDVH 3UDFWLFDO *36 6XUYH\ *XLGH
&'¶V FRQWDLQLQJ DOO WKH FRQWURO LQ D UHJLRQ DUH DYDLODEOH IRU D PRGHVW IHH :KHQ \RX KDYH VHOHFWHG WKH FRQWURO \RX ZRXOG OLNH WR XVH \RX QHHG WR YHULI\ WKDW LW LV FDSD EOH RI EHLQJ XVHG IRU *36 RFFXSDWLRQV $ EHQFKPDUN VHW YHUWLFDOO\ LQ WKH IDFH RI EXLOGLQJ LV QRW JRLQJ WR ZRUN DQG D WULDQJXODWLRQ VWDWLRQ VHW XQGHU D ODUJH 2DN WUHH ZLOO DOVR EH D SUREOHP ,Q WKHVH FDVHV LI \RX GRQ¶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¶W ZDQW WR HQG XS ZLWK D QHWZRUN WKDW KDV PRUH FRQWURO WKDQ QHZ VWDWLRQV ,V RXU FRQWURO ZHOO SODFHG" ,W VKRXOG OLH RXWVLGH RI RU QHDU WKH HGJHV RI RXU SURMHFW ,W VKRXOG EH ZHOO GLVWULE XWHG JHRPHWULFDOO\ :H GRQ¶W ZDQW DOO WKH FRQWURO RQ RQH VLGH RI WKH SURMHFW :H GRQ¶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¶V RQH OLQH EHWZHHQ WZR SRLQWV ,I \RX KDYH IRXU UHFHLYHUV WKDW¶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¶W PHDVXUH ORQJ OLQHV WKDW SDVV E\ LQWHUPHGLDWH SRLQWV $OZD\V WU\ WR FRQQHFW DGMDFHQW SRLQWV 0RUH RQ QHWZRUN GHVLJQ DSSHDUV ODWHU LQ WKLV GRFXPHQW
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¶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¶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¶V ZRQGHUIXO ZKHQ LW KDSSHQV VPRRWKO\ OLNH WKDW EXW WKH UHDOLW\ LV WKDW RXU VHVVLRQ SODQV ZLOO FKDQJH EHFDXVH RI WKLQJV OLNH ZDVKHG RXW URDGV DQG VWDOOHG YHKLFOHV DV ZHOO DV LQFRUUHFW DQWHQQD KHLJKWV VLJQDO LQWHUIHUHQFH HWF ,I WKH FUHZ KDV FRPPXQLFDWLRQV WKH\ FDQ XVXDOO\ PDNH DGMXVWPHQWV IRU WKH XQH[SHFWHG ,I QRW FKDQJHV ZLOO KDYH WR EH PDGH DW WKH HQG RI WKH GD\ IRU LPSOH PHQWDWLRQ WKH IROORZLQJ GD\ (YHQ WKH EHVW ODLG SODQV ZLOO DOPRVW DOZD\V FKDQJH
+RXVHNHHSLQJ 6PDOO WKLQJV VRPHWLPHV KDYH ELJ FRQVHTXHQFHV *RRG KRXVHNHHSLQJ LV YHU\ LPSRUWDQW LQ D VXFFHVVIXO *36 VXUYH\ 7KLQJV OLNH EDWWHU\ PDLQWHQDQFH DQG WKH DYDLOD ELOLW\ RI VXIILFLHQW UHFHLYHU PHPRU\ FDQ KDYH SURIRXQG HIIHFWV RQ SURGXFWLYLW\ ,W LV QRW IXQ WR UHWXUQ IURP D GD\¶V ZRUN WR ILQG WKDW QRWKLQJ KDG EHHQ UHFRUGHG EHFDXVH WKH UHFHLYHU PHPRU\ ZDV IXOO /LNHZLVH LW LV QRW IXQ WR JHW WR D SDFN LQ VWDWLRQ DQG ILQG WKDW WKH EDW WHULHV DUH QRW VXIILFLHQWO\ FKDUJHG WR FRPSOHWH \RXU VHVVLRQV DQG \RX GRQ¶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¶UH XVLQJ DQG WKDW WKH UHFRUGLQJ LQWHUYDOV RI DOO UHFHLYHUV LQ WKH VHVVLRQ DUH VHW LGHQWLFDOO\ 2QH RI WKH PRVW FRPPRQ PLVWDNHV WKDW QHZ *36 XVHUV PDNH LV WR XVH D VOLJKWO\ GLIIHUHQW QDPH RQ D UHSHDW RFFXSDWLRQ RI D SRLQW $Q H[DPSOH ZRXOG EH FDOOLQJ D SRLQW & LQ RQH RFFXSDWLRQ DQG & LQ DQRWKHU 7KH FRPSXWHU FDQ¶W WHOO WKDW WKLV LV UHDOO\ WKH VDPH SRLQW DQG WKHUHIRUH WZR VHSDUDWH SRLQWV ZLOO H[LVW $QRWKHU QDPLQJ SUREOHP ZRXOG EH WR XVH WKH VDPH QDPH IRU 3UDFWLFDO *36 6XUYH\ *XLGH
WZR GLIIHUHQW SRLQWV 7KLV ZLOO FDXVH WKH DGMXVWPHQW WR ³EORZ XS´ :KHQ WKH UHVLGXDO HUURUV DQG VWDWLVWLFV LQ DQ DGMXVWPHQW DUH KXJH WZR SRLQWV ZLWK WKH VDPH QDPH LV XVXDOO\ WKH FDXVH :H ZDQW WR XVH RQH DQG RQO\ RQH QDPH IRU HDFK SRLQW LQ RXU VXUYH\ 7KHUH VKRXOG EH D ORJLFDO DQG FRQVLVWHQW PHWKRG IRU QDPLQJ SRLQWV DQG DOO RSHUDWRUV VKRXOG EH DZDUH RI LW ,W LV QRW XQFRPPRQ WR KDYH D SRLQW WKDW FDQ¶W EH RFFXSLHG DQG DQ HFFHQWULF VWDWLRQ ZLOO KDYH WR EH VHW RU DQ XQVFKHGXOHG SRLQW ZLOO KDYH WR EH RFFXSLHG %DG VWXII LV JRLQJ WR KDSSHQ EXW ZH ZDQW WR WU\ WR NHHS LW WR D PLQLPXP +DYH D FKHFN OLVW IRU WKH FUHZ WR XVH $ PRUQLQJ FKHFNOLVW DQG DQ HYHQLQJ FKHFNOLVW PLJKW EH DSSURSULDWH :H DOO QHHG UHPLQGHUV DW WLPHV
'\QDPLF *36 6XUYH\LQJ '\QDPLF VXUYH\ WHFKQLTXHV DUH EHFRPLQJ LQFUHDVLQJO\ SRSXODU (YHU\RQH LV WDONLQJ DERXW 57. VXUYH\LQJ WKHVH GD\V ,QLWLDOL]DWLRQ DQG UH LQLWLDOL]DWLRQ KDYH EHHQ VLP SOLILHG ZLWK WKH DGYHQW RI GXDO IUHTXHQF\ UHFHLYHUV DQG GXDO V\VWHP *36 */21$66 VLQJOH IUHTXHQF\ UHFHLY HUV $QWHQQDV PXOWL SDWK UHGXFWLRQ WHFKQLTXHV DQG SURFHVVLQJ DOJRULWKPV KDYH EHHQ LPSURYHG WR SURYLGH EHWWHU SHUIRUPDQFH XQGHU WUHH FDQRS\ %XW ³LPSURYHG SHUIRUPDQFH´ GRHV QRW PHDQ FHQWLPHWHU DFFXUDF\ 8QGHU KHDY\ WUHH FDQRS\ WKH EHVW ZH FDQ KRSH IRU DW WKLV WLPH HYHQ ZLWK WKH PRVW VRSKLVWLFDWHG UHFHLYHUV LV VXEPHWHU SHUIRUPDQFH :KLOH G\QDPLF *36 VXUYH\LQJ FDQ EH YHU\ HIILFLHQW DQG DFFXUDWH LQ SHUIRUPLQJ VRPH VXUYH\ WDVNV ZH QHHG WR EH DZDUH RI LWV VKRUWFRPLQJV DV ZHOO DV LWV VWUHQJWKV $V JUHDW DV LW LV LQ RSHQ DUHDV WKHUH DUH PDQ\ SODFHV ZKHUH LW ZRQ¶W ZRUN ZHOO /HW¶V WDNH DW ORRN DW WKH SURFHVV DV ZHOO DV WKH JRRG DQG WKH EDG RI G\QDPLF *36 VXUYH\LQJ
7KH '\QDPLF 3URFHVV ,Q VWDWLF *36 ZH UHVROYH WKH SKDVH DPELJXLW\ WKH UHDU FKDLQPDQ¶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¶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
'\QDPLF $GYDQWDJHV 2QH RI WKH DGYDQWDJHV RI G\QDPLF *36 VXUYH\LQJ LV WKDW LW SURYLGHV XV ZLWK D WRRO WR YHU\ TXLFNO\ SRVLWLRQ RXU VXUYH\ SRLQWV RQ WKH JURXQG ,I ZH DOVR XVH UHDO WLPH HTXLSPHQW ZH KDYH WKH DELOLW\ WR TXLFNO\ VWDNHRXW SRLQWV WR SUH GHVLJQHG FRRUGLQDWHV 7KH XVH RI UHDO WLPH KDV WZR RWKHU EXLOW LQ EHQHILWV :H FDQ WHOO H[DFWO\
KRZ PXFK WLPH ZH QHHG RQ D SRLQW DQG ZH FDQ EH VXUH WKDW ZH KDYH D JRRG SRVLWLRQ ZKHQ ZH UHWXUQ WR WKH RIILFH .HHS LQ PLQG WKDW WKH EHQHILW RI NQRZLQJ H[DFWO\ ZKHQ ZH KDYH HQRXJK WLPH DOVR DSSOLHV WR VWDWLF PHWKRGV ,Q DUHDV ZLWK ORWV RI REVWUXFWLRQV LI \RX DUH XVLQJ UHDO WLPH HTXLSPHQW \RX VKRXOG WKLQN LQ WHUPV RI UHDO WLPH VWDWLF UDWKHU WKDQ EHDWLQJ \RXUVHOI XS WU\LQJ WR XVH UHDO WLPH G\QDPLF PHWKRGV 6WD\ RQ WKH SRLQW DV ORQJ DV LW WDNHV EXW QR ORQJHU
OLNH DQ\ RWKHU PHDVXUHPHQW VRPHWLPHV WKH\ DUH LQDF FXUDWH 6R ZKDW VKRXOG \RX WKH SUXGHQW VXUYH\RU GR" &KHFN \RXU ZRUN 7KLV LV DV WUXH IRU *36 VXUYH\LQJ DV LV IRU FRQYHQWLRQDO VXUYH\LQJ $V ZH VDLG EHIRUH *36 LV VLPLODU WR DQ ('0 ,W LV QRW PDJLF ,Q PDQ\ FDVHV G\QDPLF *36 SURYLGHV D EHWWHU VROXWLRQ WKDQ XVLQJ D FRQYHQWLRQDO WRWDO VWDWLRQ KRZHYHU WKHUH DUH DOVR ORWV RI FDVHV ZKHUH WKH WRWDO VWDWLRQ PLJKW EH PRUH VXLWD EOH 'RQ¶W IRUJHW DERXW WKH RWKHU WRROV LQ \RX WRROER[
$QRWKHU DGYDQWDJH RI G\QDPLF *36 LV WKDW LW DOORZV XV WR YHU\ SUHFLVHO\ SRVLWLRQ PRYLQJ DLUFUDIW DQG ERDWV :H FDQ XVH G\QDPLF *36 SRVLWLRQLQJ WR HOLPLQDWH PRVW LI QRW DOO RI WKH JURXQG FRQWURO LQ DQ DHULDO SKRWRJUDP PHWU\ SURMHFW '\QDPLF *36 FDQ DOVR EH XVHG WR SHU IRUP KLJK SUHFLVLRQ K\GURJUDSKLF VXUYH\V ,Q FRPELQDWLRQ ZLWK D IDWKRPHWHU G\QDPLF *36 ZLOO SUR YLGH XV GLUHFW ERWWRP HOHYDWLRQV ZLWKRXW KDYLQJ WR ZRUU\ DERXW WKH WLGH OHYHO
1HWZRUNV DQG /HDVW 6TXDUHV $GMXVWPHQWV
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³RQ WKH IO\´ LQLWLDOL]DWLRQ LV WKH SULPDU\ EHQHILW RI XVLQJ GXDO IUHTXHQF\ UHFHLYHUV LQ G\QDPLF *36 VXUYH\V $QRWKHU GLVDGYDQWDJH RI G\QDPLF *36 IRU WKH VXUYH\RU LV WKDW LW¶V D UDGLDO WHFKQLTXH 8QOHVV ZH UHYLVLW SRLQWV RU ZH VHW XS DGGLWLRQDO EDVH VWDWLRQV DQG SRVW SURFHVV WKH GDWD ZH KDYH D VLGHVKRW D VLQJOH SRVLWLRQHG SRLQW ZLWK QR UHGXQGDQF\ $W WKLV ZULWLQJ , DP QRW DZDUH RI DQ\ FRPPHUFLDO UHDO WLPH *36 VXUYH\ V\VWHP WKDW XVHV PXOWLSOH EDVH VWDWLRQV 0RVW RI WKH WLPH HYHU\WKLQJ ZRUNV ZHOO DQG ZH JHW H[FHOOHQW UHVXOWV %XW *36 PHDV XUHPHQWV DUH MXVW DQRWKHU NLQG RI PHDVXUHPHQW DQG
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
3UDFWLFDO *36 6XUYH\ *XLGH
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
,Q )LJXUH WKH QHWZRUN RQ WKH OHIW LV FRPSRVHG RI JHRPHWULFDOO\ VWURQJ ILJXUHV EXW WKHLU LQWHUFRQQHFWLRQV DUH SRRUO\ VWUXFWXUHG HVSHFLDOO\ LQ WKH FLUFOHG DUHD ZKHUH WZR VWDWLRQV WKDW DUH FORVH WRJHWKHU DUH QRW GLUHFWO\ FRQQHFWHG :RXOG \RX VWDQG RQ D VFDIIROG EXLOW WKLV ZD\" <RX ZRXOGQ¶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
)LJXUH 3UDFWLFDO *36 6XUYH\ *XLGH
ORFDWLRQ RI NQRZQ VWDWLRQV PD\ UHLQIRUFH DQ RWKHUZLVH ZHDN QHWZRUN $V DQ H[DPSOH FRQVLGHU )LJXUH
OLQHV 7KH WULYLDO OLQHV ZLOO VLPSO\ EH PDWKHPDWLFDO LQYHUVHV EHWZHHQ WKH HQG SRLQWV RI WKH ³QRQ WULYLDO´ EDVHOLQHV DQG WKHVH OLQHV SUREDEO\ VKRXOG QRW EH XVHG WKH QHWZRUN )DFWRUV ZKLFK KHOS FRQWULEXWH WR WKH QRQ WULYLDOQHVV RI LQGHSHQGHQWO\ SURFHVVHG VHVVLRQ YHFWRUV DUH Â&#x2021; Â&#x2021;
'LIIHUHQW VDWHOOLWH YLVLELOLW\ EHWZHHQ VWDWLRQV 7KH HIIHFWV RI GLUHFWLRQDO RULHQWDWLRQ RQ EDVHOLQH UHVXOWV
)RU D VWURQJHU QHWZRUN ZH ZLOO XVH DOO RI WKH LQGHSHQG HQWO\ SURFHVVHG EDVHOLQHV ZH SRVVLEO\ FDQ :H ZDQW WR DYRLG D QHWZRUN WKDW ORRNV OLNH WKH RQH LQ )LJXUH
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
%HIRUH VWDUWLQJ \RX PLJKW ZLVK WR WU\ GHVLJQLQJ D QHW ZRUN XVLQJ \RXU FXUUHQW PHWKRG ZLWK WKH SURYLGHG SRLQWV LQ )LJXUH
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
/RRS )UDPHZRUN 0HWKRG 'HVLJQLQJ D *36 QHWZRUN ERLOV GRZQ WR RQH EDVLF SUHPLVH WKLQN QHWZRUN QRW WUDYHUVH :H ZDQW WR XVH WKH LQKHUHQW VWUHQJWK RI UHGXQGDQF\ WKDW D OHDVW VTXDUHV DGMXVWPHQW SURYLGHV 7KH IROORZLQJ SDJHV RXW OLQH WKH VWHSV XVHG LQ GHVLJQLQJ D QHWZRUN ZLWK WKH ³QRQ WULYLDO´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³QRQ WULYLDO´ KDYH EHHQ SODFHG LQ TXRWHV :LWK LQGHSHQGHQW SURFHVVLQJ RI WKH EDVHOLQHV QRQH RI WKH OLQHV DUH WULYLDO &RUUHODWHG \HV EXW QRW WULYLDO ,I WKH EDVHOLQHV KDYH EHHQ SURFHVVHG E\ VRIW ZDUH WKDW XVHV DOO WKH GDWD LQ D VHVVLRQ DW WKH VDPH WLPH WKHQ VRPH RI WKH OLQHV ZLOO LQGHHG EH WULYLDO WKH\ ZLOO UHVXOW LQ ]HUR FORVXUHV ,Q D W\SLFDO FDVH OLNH WKLV VWDWLVWLFV ZRXOG EH UHSRUWHG RQO\ IRU WKH ³QRQ WULYLDO´
)RU EDVLF VXUYH\V \RX PD\ VLPSO\ ZDQW WR VWDUW ZLWK VWHS WZR DQG FRQQHFW WKH GRWV LQ VHVVLRQ JURXSV DV \RX OHDSIURJ IURP VHVVLRQ WR VHVVLRQ EHWZHHQ \RXU FRQWURO SRLQWV %HWZHHQ HDFK VHVVLRQ RQH RU WZR UHFHLYHUV ZLOO UHPDLQ RQ SRLQW ZKLOH WKH RWKHUV PRYH WR QHZ SRLQWV IRU WKH QH[W VHVVLRQ 7KLV LV SUREDEO\ WKH TXLFNHVW ZD\ WR GHVLJQ \RXU QHWZRUN EXW PD\ OHDG WR RQH RU WZR H[WUD VHVVLRQV 5HPHPEHU WR WDNH LQWR DFFRXQW WHUUDLQ IHDWXUHV DQG WUDYHO WLPHV ZKHQ JURXSLQJ \RXU VHVVLRQV DQG SODQQLQJ \RXU PRYHV
2SWLRQDO 1*6
0DNH VXUH WKH FULWHULD IRU UHSHDW REVHUYDWLRQV KDYH EHHQ PHW 7KLV LV QRW UHDOO\ D WKLUG VWHS VLQFH LW¶V XVXDOO\ GRQH GXULQJ WKH VHFRQG VWHS $V \RX FDQ VHH IURP )LJXUH DQG )LJXUH MXGLFLRXV SODQQLQJ FDQ VDYH WLPH 7KH FULWHULD IRU 1*6 DFFHSWDQFH LQYROYHV PXFK PRUH WKDQ D JRRG QHWZRUN GHVLJQ ,I \RX DUH SODQQLQJ RQ SHUIRUPLQJ D %OXHERRN VXUYH\ SOHDVH UHIHU WR WKH *HRPHWULF *HRGHWLF $FFXUDF\ 6WDQGDUGV DQG 6SHFLILFD WLRQV IRU 8VLQJ *36 5HODWLYH 3RVLWLRQLQJ 7HFKQLTXHV 9HUVLRQ 0D\ DW OHDVW WZR UHSULQWV KDYH 3UDFWLFDO *36 6XUYH\ *XLGH
RFFXUUHG SXW RXW E\ WKH )HGHUDO *HRGHWLF &RQWURO 6XE FRPPLWWHH
2QH SRVVLEOH ORRS IUDPHZRUN VROXWLRQ LV VKRZQ LQ )LJXUH
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
)LJXUH
NQRZQ VWDWLRQV ZRXOG KDYH RQ WKH QHWZRUN
'HVLJQ $ 1HWZRUN 8VLQJ 5HFHLYHUV 8VH \RXU FXUUHQW PHWKRG LQ )LJXUH
)LJXUH ,Q )LJXUH VWDUW ZLWK ORRSV RI QRQ WULYLDO EDVHOLQHV (DFK ORRS VKRXOG FRQWDLQ QR PRUH WKDQ EDVHOLQHV DQG EH QR PRUH WKDQ NLORPHWHUV LQ OHQJWK (DFK ORRS PXVW FRQWDLQ EDVHOLQHV IURP PRUH WKDQ RQH VHV VLRQ (DFK VHVVLRQ VKRXOG DOVR FRQWDLQ 1 ORRS EDVH OLQHV ZKHUH 1 LV WKH QXPEHU RI UHFHLYHUV SDUWLFLSDWLQJ LQ WKH VHVVLRQV )RU H[DPSOH LI UHFHLYHUV DUH XVHG HDFK VHVVLRQ VKRXOG FRQWDLQ RI WKH QRQ WULYLDO ORRS EDVHOLQHV 6WDUW E\ GHVLJQLQJ WKH ORRSV ILUVW DQG WKHQ ILOO LQ WKH VHVVLRQ¶V WULYLDO YHFWRUV
,Q )LJXUH ZH VHH D SODQ IRU VHVVLRQV EDVHG RQ WKH ORRSV FUHDWHG LQ )LJXUH 7KH LQHIILFLHQW DUHDV RI WKLV SODQ DUH FLUFOHG DQG DUH WKH UHVXOW RI XVLQJ RQO\ RQH ORRS EDVHOLQH LQ D VHVVLRQ DQG KDYLQJ D EDVHOLQH REVHUYHG LQ WZR GLIIHUHQW VHVVLRQV
)LJXUH 7U\ WR DYRLG SDUDOOHO ORRSV ZKLOH SODQQLQJ \RXU ORRS IUDPHZRUN /RQJ SDUDOOHO UXQV ZLWK IHZ FURVV WLHV PDNH IRU D ZHDNHU VWUXFWXUH DQG FDQ FRPSURPLVH WKH TXDOLW\ RI \RXU OHDVW VTXDUHV DGMXVWPHQW 7KH ORRS VWUXFWXUH VKRZ EHORZ LQ )LJXUH LV EHWWHU WKDQ WKH RQH VKRZQ LQ )LJ XUH
)LJXUH
)LJXUH 3UDFWLFDO *36 6XUYH\ *XLGH
%DVHG RQ WKLV QHZ ORRS VWUXFWXUH WKH VHVVLRQV KDYH EHHQ ODLG RXW PRUH HIILFLHQWO\ LQ )LJXUH 7KH VDPH VWDWLRQV
KDYH EHHQ REVHUYHG XVLQJ VHVVLRQV LQVWHDG RI WKH VKRZQ LQ )LJXUH
)LJXUH )LJXUH 1RWLFH WKDW HDFK VHVVLRQ LQ )LJXUH KDV WKUHH ³QRQ WULYLDO´ EDVHOLQHV XVHG LQ WKH ORRS IUDPHZRUN DQG WKDW HDFK VHVVLRQ LV FRQQHFWHG WR DW OHDVW RWKHU VHVVLRQV $QRWKHU LQWHUHVWLQJ WKLQJ WR QRWLFH LV WKDW WKH KROHV WKH ZKLWH DUHDV LQ )LJXUH DUH DOO IRXU VLGHG RU PRUH ZKLOH )LJXUH FRQWDLQV VHYHUDO WKDW DUH RQO\ WKUHH VLGHG &RPSDUH )LJXUH WR )LJXUH :KLFK ORRNV VWURQJHU WR \RX" :KHQ XVLQJ OHDVW VTXDUHV DGMXVWPHQWV UHGXQ GDQF\ LV VWUHQJWK
[,
)LJXUH ,Q )LJXUH RQO\ WKH ³QRQ WULYLDO´ EDVHOLQHV KDYH EHHQ LQFOXGHG ZKLOH DOO EDVHOLQHV KDYH EHHQ LQFOXGHG LQ )LJ XUH 8VLQJ WKH VR FDOOHG WULYLDO EDVHOLQHV DGGV UHGXQGDQF\ DQG VWUHQJWK WR WKH VROXWLRQ DQG LI QRWKLQJ HOVH XVLQJ DOO REVHUYHG YHFWRUV DOORZV WKH GHOHWLRQ RI SRRU EDVHOLQHV ZLWKRXW DQ\ LOO HIIHFWV
7KHUH DUH WKUHH IDLUO\ REYLRXV SUREOHPV ZLWK WKH QHW ZRUN LQ )LJXUH Â&#x2021; Â&#x2021; Â&#x2021;
7KH ORRSV KDYH SRRU FURVV FRQQHFWLRQV 0RVW RI WKH VKRUW GLVWDQFHV KDYH QRW EHHQ PHDVXUHG 7KHUH DUH ORQJ WLHV WKDW E\SDVV FORVHU VWDWLRQV
)LJXUH LOOXVWUDWHV VRPH RI WKH SUREOHPV WKDW FDQ UHVXOW IURP WUDYHUVH WKLQNLQJ L H WKLQNLQJ ZLWKLQ WKH FRQWH[W RI D FRQYHQWLRQDO WUDYHUVH UDWKHU WKDQ WKLQNLQJ RI QHWZRUN LQWHJULW\
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
$ 3RRU 1HWZRUN &DQ \RX LGHQWLI\ VRPH RI WKH SUREOHPV ZLWK WKH IROORZ LQJ QHWZRUN RI YHFWRUV" [,
)LJXUH
3UDFWLFDO *36 6XUYH\ *XLGH
)LJXUH VKRZV D EHWWHU VROXWLRQ PHHWLQJ 1*6 UHTXLUHPHQWV
PXQLFDWLRQV DUH QHFHVVDU\ WR HIILFLHQW *36 VXUYH\LQJ DQG D WLPHWDEOH VKRXOG EH SURYLGHG WR ILHOG FUHZV DV D EDFNXS LQ FDVH RI D FRPPXQLFDWLRQV RXWDJH
$ &ORVLQJ 5HPLQGHU &211(&7 7+( '276 0($685( 7+( 6+257 /,1(6
[,
)LJXUH 7KH QHWZRUN LQ )LJXUH KDV EHHQ ODLG RXW PRUH HIIL FLHQWO\ DQG WKH ORFDWLRQ RI WKH FRQWURO KDV EHHQ FRQVLG HUHG %HORZ DUH WKH FULWHULD XVHG OLVWHG LQ GHVFHQGLQJ RUGHU RI FRQFHUQ 7ULSOH VWDWLRQ RFFXSDWLRQ 1HHG VWDWLRQV KDYH
'RXEOH VWDWLRQ RFFXSDWLRQ 1HZ VWDWLRQV 1HHG VWDWLRQV KDYH
9HUWLFDO FRQWURO 1HHG VWDWLRQV KDYH
+RUL]RQWDO FRQWURO 1HHG VWDWLRQ KDYH
,I \RX DSSO\ WKHVH WZR SULQFLSOHV \RXU QHWZRUNV VKRXOG DOZD\V SURYLGH \RX ZLWK DFFXUDWH SRVLWLRQV WKDW \RX FDQ EH FRQILGHQW LQ
%LEOLRJUDSK\ 5HFRPPHQGHG 5HIHUHQFHV RQ *36 DQG *36 6XUYH\LQJ .LQJ 5 : ( * 0DVWHUV & 5L]RV $ 6WRO] DQG - &RO OLQV 6XUYH\LQJ ZLWK *36 .HQVLQJWRQ 6FKRRO RI 6XUYH\LQJ 8QLYHUVLW\ RI 1HZ 6RXWK :DOHV /HLFN $OIUHG *36 6DWHOOLWH 6XUYH\LQJ 1HZ <RUN -RKQ :LOH\ 6RQV
5HSHDWHG EDVHOLQHV RI ORRS EDVHOLQHV 1HHG EDVHOLQHV KDYH LQFOXGH DQ\ D]LPXWK SDLUV
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
3DUNLQVRQ %UDGIRUG : -DPHV - 6SLONHU -U HW DO *OREDO 3RVLWLRQLQJ 6\VWHP 7KHRU\ DQG $SSOLFD WLRQV YROV :DVKLQJWRQ '& $PHULFDQ ,QVWLWXWH RI $HURQDXWLFV DQG $VWURQDXWLFV ,QF :HOOV 'DYLG HW DO *XLGH WR *36 3RVLWLRQLQJ 1HZ %UXQVZLFN &DQDGLDQ *36 $VVRFLDWHV
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¶OO PHQWLRQ DJDLQ *RRG FRP 3UDFWLFDO *36 6XUYH\ *XLGH
(O &DPLQR 5HDO 6DQWD &ODUD &D 7HO )D[ :DVKLQJWRQ ' & 7HO )D[ (QJODQG 7HO )D[ 0RVFRZ 7HO )D[