UHDVRQIRUWKHORZREVHUYHGDOJDOELRPDVV GHVSLWHWKHHOHYDWHGQXWULHQWFRQFHQWUDWLRQV DQGEULQHYROXPH
$IWHULFHIRUPDWLRQGULIWLFHLVVXEMHFWHG WRGHIRUPDWLRQSURFHVVHVZKLFKDUHUHÀHFWHG LQ WKH SK\VLFDO FKHPLFDO DQG ELRORJLFDO SURSHUWLHVRIWKHLFH7KHG\QDPLFJURZWK RILFHE\UDIWLQJDQGULGJLQJLVW\SLFDOIRUWKH
%RWKQLDQ%D\DUHD2PVWHGW*UDQVNRJ HWDOE
7KHUDIWLQJRILFHÀRHVPXOWLSOLHVWKHLFH WKLFNQHVVDQGSODFHVWKHVXUIDFHFRPPXQLW\
RIWKHXQGHUO\LQJLFHÀRHLQWKHPLGGOHRIWKH QHZLFHFROXPQ5DIWLQJFDQEHGHWHFWHGDV LQWHUQDOVQRZLFHOD\HUVEXWDOVRDVLQWHUQDO SHDNVLQFKORURSK\OODFRQFHQWUDWLRQV,7KH FKORURSK\OODLQWKHVHSHDNVPD\RULJLQDWH IURPWKHERWWRPPRVWOD\HURIWKHRYHUOD\LQJ LFHÀRHRUIURPWKHWRSPRVWOD\HURIWKH XQGHUO\LQJLFHFROXPQ7KHGULIWLFHÀRHV PD\DOVRÀLSDURXQGZKHQWKH\DUHSUHVVXUHG DJDLQVWHDFKRWKHU,FHVWUXFWXUHDQDO\VLV UHYHDOHGWKDWWKHUDIWHGLFHFROXPQDWVWDWLRQ ,FRQVLVWHGRIDQLQYHUWHGXSSHULFHÀRH ZKLFKKDGIUR]HQWRJHWKHUZLWKWKHXQGHUO\LQJ LFHÀRH7KLVZDVHYLGHQFHGE\DFP WKLFNLQWHUQDOVQRZLFHOD\HUDQGVXSSRUWHG E\FRLQFLGLQJSHDNVRIFKORURSK\OODDQG DOJDOELRPDVV7KHFRQVHTXHQFHIRUWKHLFH ELRWDLVWKHGLVSODFHPHQWRIWKHRULJLQDOWRS DQGERWWRPFRPPXQLWLHVWRGLIIHUHQWOLJKW HQYLURQPHQWVEXWEDVHGRQWKHUHVXOWVLQ SDSHU,LWLVLPSRVVLEOHWRGHWHUPLQHZKHWKHU WKHFRPPXQLW\VWUXFWXUHVWDUWHGWRFKDQJH DFFRUGLQJ WR LWV QHZ ORFDWLRQ LQ WKH LFH FROXPQRUZKHWKHUWKHH[LVWLQJFRPPXQLW\
VLPSO\DGDSWHGWRWKHQHZFRQGLWLRQV
&RPSDULVRQRIWKHGULIWDQGIDVWLFH FRPPXQLWLHV
7KHGULIWDQGIDVWLFHVWDWLRQVVKRZHGKLJK YDULDQFHLQPHDVXUHGYDULDEOHVDQGQRFOHDU
FXWFKDUDFWHULVDWLRQVFRXOGEHSHUIRUPHG ZLWKRXWPXOWLYDULDWHDQDO\VLV7KXVWKHGDWD SUHVHQWHGLQSDSHUV,DQG,,ZHUH¿UVWJURXSHG LQKLHUDUFKLFDOFOXVWHUDQDO\VLVLQWKHVDPH PDQQHUDVLQSDSHU,E\XVLQJWKLFNQHVV ZHLJKWHGLFHFROXPQDYHUDJHVDIWHUZKLFK GLVFULPLQDQWDQDO\VLVZDVSHUIRUPHGVHH 6WDWLVWLFV IRU GHWDLOV 7KH PLVVLQJ 12YDOXHDWVWDWLRQZDVUHSODFHGZLWK WKHPLQLPXPDQGPD[LPXP12YDOXHV PHDVXUHGIURPRWKHUWKLFNGULIWLFHVDPSOHV VHHSDSHU,IRUGHWDLOV
7KHGDWDJURXSHGLQWRIRXUFOXVWHUVLQ KLHUDUFKLFDOFOXVWHUDQDO\VLVVHSDUDWHGE\
SKRVSKDWH 32 VLOLFDWH 6L2 DQG WKH ELRPDVVHVRISURWR]RDDQGGLDWRPV7DEOH
*URXSVDQGZKLFKLQFOXGHGDOOWKH LFHVDPSOHVDQGPRVWRIWKH8,:VDPSOHV GLIIHUHGPRVWO\LQGLDWRPELRPDVVDQGVLOLFDWH FRQFHQWUDWLRQ*URXSFRQVLVWHGRIDOOWKH GULIWDQGIDVWLFHVWDWLRQVWKDWZHUHGLDWRP GRPLQDWHGZKLOHDOOWKH8,:VDPSOHVIURP WKHGULIWLFHVWDWLRQVWRJHWKHUZLWKQHZO\
IRUPHGLFHDQGWKHGHYLDQW\RXQJLFHDW VWDWLRQFKDUDFWHULVHGE\ORZELRPDVVHV DQGKLJKVLOLFDWHFRQFHQWUDWLRQVIHOOLQWR JURXS$OVRWKHIDVWLFHVWDWLRQVDQG LFHDQGZDWHULQERWK)HEUXDU\DQG0DUFK EHORQJHGWRWKLVJURXS7DEOH7KXVJURXS UHSUHVHQWHGLFHFRPPXQLWLHVDWHDUOLHUVWDJH RIGHYHORSPHQWZLWKORZELRPDVVFRQVLVWLQJ PRVWO\RIÀDJHOODWHVEHDULQJVLPLODULWLHVWR XQGHULFHZDWHUZKHUHDVWKHJURXSFRXOG EH FKDUDFWHULVHG PRUH DV WKH DGYDQFHG VWDJHRIVHDVRQDOVHDLFHGHYHORSPHQW7KH VLPLODULW\RIQHZO\IRUPHGLFHZLWK8,:
DQGWKHVHSDUDWLRQLQWRGLIIHUHQWFOXVWHUV ZLWKSDQFDNHLFHJLYHVDVWURQJLQGLFDWLRQ WKDWLFHKDELWDWVHOHFWVIRURUJDQLVPVHJ GLDWRPVWKDWDUHDEOHWREHQH¿WIURPWKH PRUHVWDEOHKLJKO\FRQFHQWUDWHGKDELWDWDQG WKLVVHOHFWLRQSURFHVVVWDUWVLPPHGLDWHO\DIWHU LFHIRUPDWLRQ,$FWLYHVFDYHQJLQJ$FNOH\
6XOOLYDQ*UDGLQJHU ,NlYDONR
VHHPHGWREHWKHPDLQPHFKDQLVP LQRUJDQLVPLQFRUSRUDWLRQDVWKHVDOLQLW\
QRUPDOLVHGDOJDOELRPDVVZDVWKUHHWLPHV KLJKHULQQHZLFHWKDQLQ8,:,
*URXSVDQGFRQVLVWHGRIZDWHUVDPSOHV WKDWZHUHGLVWLQFWLYHO\GLIIHUHQWIURPWKH RWKHUZDWHUVDPSOHV7DEOH7KHZDWHU FROXPQ DW IDVWLFH VWDWLRQ UHSUHVHQWHG WKHHDUO\VWDJHRIDVSULQJEORRPZLWKORZ SKRVSKDWHFRQFHQWUDWLRQVDQGKLJKELRPDVVHV JURXSDQGWKH8,:DWIDVWLFHVWDWLRQ KDGDVWURQJULYHULQHLQÀXHQFHZLWKKLJK 32DQG6L2FRQFHQWUDWLRQVDQGYHU\ORZ ELRPDVVHVJURXS'HVSLWHWKHZLGHO\
VFDWWHUHGORFDWLRQVDURXQGWKH%RWKQLDQ%D\
WKH6L2DQG32FRQFHQWUDWLRQVLQ8,:
EH\RQGWKHSOXPHZHUHYHU\VLPLODU
0DQG0UHVSHFWLYHO\
7KHGLVFULPLQDWLQJUROHRISKRVSKDWHZDV PDLQO\DWWULEXWHGWRWKHSOXPHVDPSOHDQG ZKHQUXQQLQJWKHDQDO\VHVZLWKRXWLW32 EHFDPHLQVLJQL¿FDQWEHLQJLQDFFRUGDQFH ZLWKWKHJHQHUDO3OLPLWDWLRQRIWKH%RWKQLDQ
%D\HJ7DPPLQHQ $QGHUVHQDQG
%DOWLF6HDLFHHFRV\VWHPVHJ.XRVD .DDUWRNDOOLR
2ZLQJWRWKHKLJKLQSXWIURPWKHODQG VLOLFDWHFRQFHQWUDWLRQVLQ8,:JHQHUDOO\
UHPDLQDERYH0$[HDVZDVDOVR IRXQGLQWKH%RWKQLDQ%D\VWXGLHV,,,DQG GRQRWOLPLWGLDWRPJURZWK2QWKHFRQWUDU\
DVVLOLFDWHLVQRWGHSRVLWHGIURPDLUOLNH QLWURJHQWKHLFHVLOLFDWHSRROVDUHQRWJUHDWO\
UHSOHQLVKHGGXULQJWKHLFHFRYHUHGVHDVRQ XQOHVVVQRZLFHIRUPDWLRQWDNHVSODFHOLNH DWGULIWLFHVWDWLRQ,DQGIDVWLFHVWDWLRQ LQ0DUFK,,7KHLPSRYHULVKPHQWRI6L2 LQLFHVKRZHGDVORZHUVDOLQLW\QRUPDOL]HG 6L2YDOXHVFRPSDUHGWRZDWHUYDOXHVLQERWK
%RWKQLDQ%D\VWXGLHV,,,7KHDELOLW\RI WKHGLDWRPGRPLQDWHGFRPPXQLW\WRWDNHXS WKHVLOLFDWHLQLFHGRZQWRWKHOLPLWLQJOHYHOV EHFDPHHYLGHQWDWIDVWLFHVWDWLRQLQ$SULO ZKHUHWKHDYHUDJHFRQFHQWUDWLRQZDV0 ,,7KLVLVEHWZHHQWKHYDOXHVRI0DQG
0EHORZZKLFK6LLVFRQVLGHUHGWROLPLW WKHDOJDOJURZWKLQODFXVWULQHV\VWHPVDQGWKH VHDUHVSHFWLYHO\5H\QROGVPDWFKLQJ WKHEUDFNLVKHQYLURQPHQW,QWKHVWXG\RQWKH
%DOWLFVSULQJEORRP.XRVDHWDOWKH 6L26LFRQFHQWUDWLRQGHFUHDVHGWRDVORZDV
0EXWWKHGHSOHWLRQRI6LZDVVWURQJO\
OLQNHGWRWKHDYDLODELOLW\RIQLWURJHQ,QWKH
%RWKQLDQ %D\ ,, SKRVSKDWH LQVWHDG RI GLVVROYHGLQRUJDQLFQLWURJHQVHHPVWREHWKH FROLPLWLQJQXWULHQWGXULQJLFHDOJDOEORRPV
7DEOH'LVFULPLQDQWDQDO\VLVRIWKHGDWDIURPWKH%RWKQLDQ%D\,±,,7KHLFHYDOXHVLQFOXGHGLQWKH DQDO\VLVDUHWKLFNQHVVZHLJKWHGLFHFROXPQDYHUDJHV3&, SDQFDNHLFH8,: XQGHULFHZDWHU1%:
QHDUERWWRPZDWHU
*URXS 7\SH 6WDWLRQV 32
0 6L2
0 3URWR]RD
J&O 'LDWRPV
J&O 3DSHU,3&,\RXQJWKLFNLFH
3DSHU,,LFH ,3&,6W6W
,,6W
3DSHU,8,:QHZLFH\RXQJLFH
3DSHU,,8,:1%:LFH ,DOO6W6W
,,6W1%:
3DSHU,,8,:1%: ,,6W
3DSHU,,8,: ,,6W
+RZHYHUGLDWRPVDUHDEOHWRK\GURO\VHWKHLU LQWUDFHOOXODUSKRVSKDWHUHVHUYHVDQGWKH\
PD\QRWWKHUHIRUHKDYHEHHQGLUHFWO\DIIHFWHG E\WKHORZ32FRQFHQWUDWLRQV7KXVDVLFH VLOLFDWHFRQFHQWUDWLRQVGHFUHDVHWKHLFH GLDWRPELRPDVVWHQGVWRLQFUHDVH7KLVKHOG WUXHIRUWKH%RWKQLDQ%D\DQGDVLJQL¿FDQW LQYHUVHUHODWLRQVKLSZDVGHWHFWHGEHWZHHQ WKHZHLJKWHGLFHFROXPQDYHUDJHVRIGLDWRP ELRPDVVDQG6L26SHDUPDQȡ S Q :KHQ WKH DQDO\VHV ZHUH UXQ ZLWK LQWHJUDWHGLFHYDOXHVDQGH[FOXGLQJZDWHU VDPSOHV VLOLFDWH DQG SKRVSKDWH EHFDPH LQVLJQL¿FDQWGLVFULPLQDWLQJYDULDEOHVDQG WKHWKUHHPDLQJURXSVZHUHGLVFULPLQDWHG E\WKHLQWHJUDWHGFKODFRQFHQWUDWLRQDQG ELRPDVVRISURWR]RDQVDQGFKORURSK\WHV 7DEOH7KHEULQHYROXPHZDVDPRQJ WKHLQLWLDOYDULDEOHVEXWDVWKHWKLFNQHVV ZHLJKWHGDYHUDJHVRIEULQHYROXPHLQGULIW DQGIDVWLFHZHUHHTXDODQG UHVSHFWLYHO\LQ)HEUXDU\±0DUFKDQG RQO\GXULQJWKHLFHPHOWLQ$SULOZDVWKHUH DPDUNHGLQFUHDVHWR,,WKHEULQH YROXPH ZDV D QRQVLJQL¿FDQW VHOHFWLYH YDULDEOHLQGLVFULPLQDQWDQDO\VLVDQGWKH DQDO\VHVZHUHUXQZLWKRXWLW
7KHGLYLVLRQEHWZHHQHDUO\DQGDGYDQFHG VWDJHV RI LFH FRPPXQLW\ GHYHORSPHQW EHFDPHHYHQPRUHDSSDUHQWWKDQLQWKH¿UVW KLHUDUFKLFDOFOXVWHUDQDO\VLVLQFOXGLQJWKH ZDWHUVDPSOHVDQGDOOWKHQHZWR\RXQJ GULIWLFHVWDWLRQVFODVVL¿FDWLRQEDVHGRQ WKH LFH WKLFNQHVV SDSHU , JURXSHG LQWR WKHVDPHJURXS'HVSLWHWKHLQFUHDVHG LFHWKLFNQHVVIURP)HEUXDU\WR0DUFKWKH ELRPDVVUHPDLQHGORZDWIDVWLFHVWDWLRQV DQG,,DQGWKH\DOVREHORQJHGWRJURXS DWERWKVDPSOLQJV7KLVFRXOGEHGXHWR WKHKHDY\VQRZFRYHU±FPDWWKHVH VWDWLRQVZKLFKHI¿FLHQWO\OLPLWHGWKHOLJKW TXDQWLWLHVZKHUHDVDWWKHGULIWLFHVWDWLRQVWKH VQRZFRYHUZDVYDULDEOHZLWKDPD[LPXP
WKLFNQHVVRIFP+RZHYHUWKHELRPDVV DWWKHIDVWLFHVWDWLRQVDQGZDVFORVH WRWKHYDOXHVLQWKHWKLFNGULIWLFHLIUDIWLQJ LVH[FOXGHGLHWKHELRPDVVSHULFHÀRHLV FDOFXODWHGE\GLYLGLQJWKHELRPDVVLQUDIWHG LFHLQKDOI&KDUDFWHULVWLFIRUWKLVJURXSZDV WKHORZDYHUDJHELRPDVVDQGKLJKSURSRUWLRQ RIXQLGHQWL¿HGÀDJHOODWHVP LQWKHDOJDOELRPDVV
7KHDGYDQFHGVWDJHVRIGULIWDQGIDVW LFHVHSDUDWHGLQWRWKHLURZQJURXSVDQG GHVSLWHWKHHTXDODOJDOELRPDVVDSSUR[
DQGPJ&PWKHPDLQUHDVRQVEHLQJ WKHORZHUSURWR]RDQELRPDVVDQGWLPHV KLJKHUFKORURSK\WHELRPDVVLQIDVWLFH7DEOH :KLOHQRFOHDULQGLFDWLRQRIDIUHVKZDWHU LQÀXHQFHRQVSHFLHVFRPSRVLWLRQFRXOGEH IRXQGLQWKHIDVWLFHVWXG\,,WKHFRPELQLQJ RI WKH GDWDVHWV FOHDUO\ UHYHDOHG D VWURQJ GHFOLQHLQFKORURSK\WHELRPDVVIURPIDVWWR GULIWLFH,±,,$VLPLODUEXWRSSRVLWHWUHQG ZDVIRXQGLQLFHURWLIHUELRPDVVWKDWGHFOLQHG IURPWRPJ&PIURPRIIVKRUHWRZDUGV WKHFRDVW7KHVDPHGRPLQDQWFHQWULFGLDWRP VSHFLHV&KDHWRFHURVZLJKDPLL0HORVLUD DUFWLFDZHUHHQFRXQWHUHGLQERWKLFHW\SHV ,±,,DQGWKH\ZHUHJHQHUDOO\DVVRFLDWHG ZLWKWKHVXUIDFHOD\HUVZKLFKDOVRLQFOXGH WKHROGVXUIDFHOD\HUVRIUDIWHGGULIWLFH, 3HQQDWHGLDWRPVKDGDPRUHHYHQGLVWULEXWLRQ RUHYHQSHDNHGLQWKHERWWRPPRVWOD\HU,±
,,7KHSHQQDWHGLDWRPFRPPXQLWLHVPRVWO\
FRQVLVWHGRIXQLGHQWL¿HGVSHFLHVPHGLDQ IDVWLFHGULIWLFHDQGIURP WKHLGHQWL¿HGVSHFLHV$FKQDQWKHVWDHQLDWD ZDV JHQHUDOO\ WKH GRPLQDQW RQH 6PDOO XQLGHQWL¿HG ÀDJHOODWHV IRUPHG URXJKO\
HTXDOSHUFHQWDJHVLQWKHVHGULIWDQGIDVW LFHVWDWLRQVDQGUHVSHFWLYHO\7KH DEVHQFHRIFRSHSRGQDXSOLLDQGDGXOWVIURP DOOWKHDGYDQFHGVWDJHLFHVDPSOHVZDVDOVR FRQVSLFXRXVZKLFKSRLQWVWRWKHHDUOLHU PHQWLRQHGVL]HOLPLWDWLRQRIQDUURZEULQH FKDQQHOVDQGLVFRQVLVWHQWZLWKWKHVWXGLHV
RI0HLQHUVHWDO.DDUWRNDOOLR DQG.DDUWRNDOOLRHWDO
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ÀXHQFHRQWKHLFH VWUXFWXUHRIWKHERWWRPLFHDQGSRVVLEO\DOVR RQWKHVXUIDFHLFHLIWKHLFHLVÀRRGHGZLWK WKHULYHUZDWHU
6XFFHVVLRQRIGLDWRPVLQ%DOWLF6HDLFH 7KHPRVWFRQVSLFXRXVGLIIHUHQFHEHWZHHQ XQGHULFH ZDWHU SK\WRSODQNWRQ DQG LFH DOJDOFRPPXQLWLHVLQWKH%RWKQLDQ%D\LV WKHPDUNHGO\KLJKHUGLDWRPELRPDVVLQLFH FRPSDUHGWRZDWHU,,,ZKLFKLVDOVRD
W\SLFDOIHDWXUHLQRWKHUSDUWVRI%DOWLF6HD GXULQJZLQWHU+DHFN\HWDO0HLQHUV HWDO.DDUWRNDOOLRHWDO(DUOLHU VWXGLHVKDYHLPSOLHGWKDWGLDWRPVDUHDOUHDG\
IDYRXUHGDWWKHLULQFRUSRUDWLRQLQWRVHDLFH GXHWRWKHLUVL]HDQGVXUIDFHFKDUDFWHULVWLFV HJVWLFNLQHVV*UDGLQJHU ,NlYDONR 7KH VWDELOLW\ RI WKH HQYLURQPHQW EHWWHU DFFHVVWROLJKWKLJKQXWULHQWFRQFHQWUDWLRQV DQGSOHWKRUDRIVXUIDFHVWRJOLGHRQDUHNH\V IRUWKHVXFFHVVRIGLDWRPVLQLFHHJ&RWD HWDO(LFNHQ7KHEULQHDOVR RIIHUVPDULQHGLDWRPVDOVRDKDELWDWZLWK VDOLQLWLHVFORVHWRQRUPDOVHDZDWHULQWKH RWKHUZLVHOHVVVDOLQH%DOWLF6HD$UULJR 6XOOLYDQ,QDGGLWLRQWKHH[FOXVLRQRI WKHLUSUHGDWRUVGXHWRWKHVL]HDQGJHRPHWU\
RIEULQHFKDQQHOVPD\SOD\DSLYRWDOUROH .UHPEVHWDODQGWKHVLJQL¿FDQFH RIWKLVPD\LQFUHDVHDORQJWKHJUDGLHQWRI GHFUHDVLQJVXUIDFHZDWHUVDOLQLW\IURPWKH VRXWKHUQWRWKHQRUWKHUQ%DOWLF6HDRUHYHQ ZLWKLQVKRUWHUVFDOHVIURPGULIWWRIDVWLFH ,QWKH%RWKQLDQ%D\GULIWLFH,WKHELJJHVW KHWHURWURSKLFRUJDQLVPLQWKLFNHULFHZDVWKH URWLIHU6\QFKDHWDOLWWRUDOLVZKLFKKDGWKH UHYHUVHGLVWULEXWLRQWRWKHELRPDVVRIFHQWULF GLDWRPVDQGSHDNHGLQWKHERWWRPPRVWLFH OD\HUV7KHVDPHSDWWHUQZDVDOVRREVHUYHG LQWKH%RWKQLDQ%D\IDVWLFH,,LQ0DUFK EXWWKHELRPDVVRI6\QFKDHWDOLWWRUDOLVZDV WZRWLPHVKLJKHULQWKHGULIWLFHVLPLODUO\
7DEOH'LVFULPLQDQWDQDO\VLVRIWKHLQWHJUDWHGGULIWDQGIDVWLFHVDPSOHVIURPWKH%RWKQLDQ%D\,±,,
*URXS 7\SH 6WDWLRQV &KOD
PJP 3URWR]RD
PJP &KORURSK\WHV PJP 3DSHU,QHZSDQFDNH\RXQJGULIWLFH
3DSHU,,IDVWLFH ,6W3&,6W
,,6W
3DSHU,WKLFNGULIWLFH ,6W
3DSHU,,IDVWLFH ,,6W
WRDOJDOELRPDVV7KLVLQGLFDWHVWKDWWKHVL]H DQGQXWULWLRQDOYDOXHRIFHQWULFGLDWRPVPDNH WKHPLQHGLEOHIRUVPDOO6OLWWRUDOLVZKLFKDUH NQRZQWRHI¿FLHQWO\JUD]HRQVPDOODOJDHDQG ÀDJHOODWHV(JORII'RODQ *DOOHJRV DQGLQVHDLFHWKH\PLJKWDOVRJUD]H RQEDFWHULD1RUUPDQ $QGHUVVRQ +DHFN\ $QGHUVVRQ.DDUWRNDOOLR 7KHH[RSRO\PHULFVXEVWDQFHV(36 SURGXFHGE\GLDWRPVDUHNQRZQWRDFWDV FU\RSURWHFWDQWVHJ0HLQHUVHWDOEXW WKH\PD\DOVRDFWDVDSUHYHQWPHFKDQLVP DJDLQVWJUD]HUVDQGYLUDOLQIHFWLRQV'HPLQJ ,Q WKH SRODU VHD LFH SHQQDWH GLDWRPV JHQHUDOO\GRPLQDWHWKHGLDWRPDVZHOODVWKH WRWDODOJDOELRPDVVDQGWKLVELRPDVVLVPRVWO\
IRXQGLQWKHERWWRPLFHOD\HU/L]RWWH DQGUHIHUHQFHVWKHUHLQ,QWKH%DOWLF6HDWKH ELRPDVVRIFHQWULFGLDWRPVPD\HYHQH[FHHG WKHSHQQDWHELRPDVVDVWKHJUDQXODUVXUIDFH LFHVHHPVWRIDYRXUFHQWULFVSHFLHV,±,, +RZHYHUWKHPDUNHGSURSRUWLRQRIFHQWULF GLDWRPVLQWKHDOJDOELRPDVVLVQRWXQLTXHWR WKH%DOWLF6HD0HLQHUV+DHFN\HWDO DVVLPLODUREVHUYDWLRQVH[LVWIURPWKH
*XOIRI/DZUHQFH'XQEDU $FUHPDQ DQGWKH2NKRWVN6HD0F0LQQHWDO 7KHGLIIHUHQWYHUWLFDOGLVWULEXWLRQRIFHQWULF DQGSHQQDWHVSHFLHVLQWKHLFHFROXPQPD\
EHDWWULEXWHGWRWKHLUGLIIHUHQWVHQVLWLYLW\WR VRODUUDGLDWLRQ,QFHQWULFGLDWRPVWKHORZ VXUIDFHDUHDWRYROXPHUDWLRDQGSODFHPHQW RIPXOWLSOHVPDOOFKORURSODVWVDURXQGWKH FHOOSHULSKHU\JLYHEHWWHUSURWHFWLRQIRUWKH QXFOHXVIURPWKHKDUPIXOHIIHFWVRIOLJKW WKDQLQSHQQDWHVSHFLHVZKLFKW\SLFDOO\KDYH FKORURSODVWVDQGDKLJKHUVXUIDFHDUHDWR YROXPHUDWLR.DUHQW]HWDO+RZHYHU H[FHSWLRQVDSSO\WRWKLVJHQHUDOL]DWLRQDQG IRUH[DPSOHWKHFDUERQ¿[DWLRQRISHQQDWH 3VHXGRQLW]VFKLDVSHFLHVLVHQKDQFHGE\
ZDYHOHQJWKV!QP0HQJHOW 3Up]HOLQ
3KRWRV\QWKHWLFSDUDPHWHUV
7KH SKRWRV\QWKHWLF SDUDPHWHU YDOXHV SUHVHQWHGLQSDSHUV,DQG,,ZHUHWKH¿UVW SXEOLVKHGYDOXHVIURP%DOWLF6HDLFHVRQR HDUOLHUUHIHUHQFHVH[LVWHGEXWFRPSDUHGWR
$QWDUFWLFDQQXDOSDFNLFHWKHYDOXHVZHUH LQWKHVDPHUDQJH/L]RWWH 6XOOLYDQ 7KHDYHUDJH3%PD[LQGULIWLFHH[FOQHZLFH DQG3&,ZDVH[DFWO\WKHVDPHDVLQIDVW LFHJ&>JFKOD@KEXWWKHĮ% YDOXHVLQIDVWLFHJ&JFKODK
(PVZHUHKDOIRIWKRVHLQGULIWLFH UHVXOWLQJLQURXJKO\WZLFHDVKLJK(NYDOXHV LQIDVWLFHFRPSDUHGWRGULIWLFHDQG
(PVUHVSHFWLYHO\7KLVLQGLFDWHVWKDW WKHGULIWLFHFRPPXQLWLHVZHUHPRUHGDUN DGDSWHGGHVSLWHWKHWKLQQHUVQRZFRYHU2QH H[SODQDWLRQIRUWKLVGLVFUHSDQF\FRXOGEH UDIWLQJZKLFKKDGSODFHGWKHFRPPXQLWLHV RI WKH XQGHUO\LQJ LFH ÀRH LQ D GHHSHU DQGWKXVGDUNHUHQYLURQPHQW6LJQL¿FDQW SKRWRLQKLELWLRQZDVRQO\REVHUYHGLQWZR ERWWRPLFHVDPSOHVIURPGULIWLFHLQGLFDWLQJ WKDWWKH%DOWLF6HDLFHFRPPXQLWLHVDUHQRW JHQHUDOO\VWURQJO\GDUNDGDSWHG0LFKHOHW DO7KLVLVVXSSRUWHGE\WKH(NYDOXHV PDUNHGO\KLJKHUWKDQDVYDOXHVEHORZ LWJHQHUDOO\GHQRWHVWURQJGDUNDGDSWDWLRQ
&RWD +RUQH.KOHWDO%DQ HWDO7KH QRWDEOH ELRPDVV RI XQLGHQWL¿HG VSHFLHVPDGHLWGLI¿FXOWLQPRVWFDVHVWR FRQQHFWLFHFRPPXQLWLHVWRWKHREVHUYHG SKRWRV\QWKHWLFSDUDPHWHUVEXWVRPHWUHQG FRXOGEHVHHQLQFHQWULFGLDWRPV7KHGULIW LFHOD\HUVWKDWKDGDGRPLQDQFHRIFHQWULF GLDWRPV!RIWKHWRWDOELRPDVVKDG KLJKHU3%PD[DYJJ&JFKODK DQGĮ%YDOXHVDYJJFKODK(
PVWKDQVDPSOHVWKDWZHUHPRVWO\
FRPSRVHGRIRWKHUJURXSVDYJ3%PD[
Į%7KHFRPSDULVRQZLWKIDVWLFHZDV RQO\SRVVLEOHLQWZRFDVHVDVLQRWKHUIDVWLFH
VDPSOHVWKHSURSRUWLRQRIFHQWULFGLDWRPV LQWKHDOJDOELRPDVVZDVZHOOEHORZ DYJFRPSDUHGWRGULIWLFH,Q WKHWZRFHQWULFGLDWRPGRPLQDWHGVDPSOHV 3%PD[ZDVDWWKHORZHUHQGRIWKHGULIWLFH UDQJH±EXWĮ%YDOXHVZHUH WLPHVORZHU±FRPSDUHGWR GULIWLFH$VWKHGRPLQDQWFHQWULFGLDWRP VSHFLHVZHUHWKHVDPHLQGULIWDQGIDVWLFHWKH GLIIHUHQFHSRLQWVWREHWWHUGDUNDGDSWDWLRQRI FHQWULFGLDWRPVLQGULIWLFH+RZHYHUWKHVH FRQFOXVLRQVZHUHEDVHGRQDYHU\OLPLWHG QXPEHURIVDPSOHVDQGIXUWKHUH[SHULPHQWV DUHQHHGHGWRYHULI\WKLVREVHUYDWLRQ