INSURANCE PROFITS: KEEPING SCORE - Casualty Actuarial Society

89 Pages·2000·3.76 MB·English

IELTIT ECNRRUSNI :STIFORP GNIPEEK EROCS
IROHTUIC drahciR G. Wall
.rM Wall si eht rotcerid fo lairautclC hcraeseR ta eht etatsllA
hcraeseR and Planning retneC detautis ta olneN ,kraP .filaC siH
neetneves sraey fo ecneirepxe include krow htiw seettimmoC fo
eht sttesuhcassaM gnitaR suaeruB no eht tnemtsevni emocni eussi
and htiw eht CIpN yrosivdA! eettimmoC no tnemtsevnI emocnI hcihw
detelpmoc sti krow ni .4891 eH si a wolleF fo eht ytlausaC
lairautcA yteicoS and a rebmeM fo eht nacirealF ymedacIC fo
.seirautcA eH holds na lFBM morf eht ytisrevinU fo .iiawaH
;TCARTSBA sihT repap sebircsed na gnitnuocca metsys dengised ot ekat -ni
tnemtsev emocni morf ecnarusni taolf otni tnuocca nehw -aulave
ting ecnarusni .snoitarepo tI sekam esu fo atad deniatnoc ni
eht annual tnemetats ot etamitse ,muimerp ,erol and esnepxe hsac
.swolf tI sessucsid eht esu fo a ksir eerf l tesu oiloftrop rof
gnitamitse eht tnemtsevni emocni that nac eb denrae morf -usni
ecnar .taolf sihT tnrmtsevni emocni si desu ni gnitaulave eht
ecnamrofrep fo ecnarusni .snoitarepo ehT repap stseggus that
eht ecnereffid neewteb sgninrae morf ksir eerf stessa and l 1autc
stessa si eht drawer rof eht laicnanif yraidemretni elor fo
ecnarusni .seinapmoc suhT siht ecnereffid should eb eht sisab
rof gnitaulave eht ecnamrofrep fo ecnarusni ynapmoc tnemtsevni
.snoitarepo
ehT repap osla stneserp atad no eht tnerpoleved fo industry diap
sessol ni tsap .sraey ehT atad setacidni that eseht tnemyap
rnrrttap evah neeb etiuq elbats rmvo eht .sraey ~s131 detneserp
si eht ecnereffid ni ssol tnemyap snrettap and egareva tnemyap
setad neewteb derrucni sessol and rof ssol .sevreser IC dohtem
si depoleved that nac eb desu ni ynam secnatsmucric rof -itse
gnitam eht tnemtsevni emocni that nac eb denrae morf ssol -yap
tnem snrettap erehw eht only noitamrofni elbaliava si derrucni
sessol and ssol .sevreser Such a noitautis srucco ni yrotutats
atad by enil and etats erehw only such noitamrofni si .elbaliava
drahciR .6 Wall
-h44-
ECNLRUSNI :STIFORP GNIPEEK EROCS
yrevE" nam did that hcihw saw right ni sih nwo "seye
segduJ 52:12
tcoalA ydobyrevP seerga that ti si elbissopmi ot etaulavs eht ecnamrofrep
fo ytlausaClytrsporP ecnarusni seinapmoc tuohtiw gnitargetni gnitirwrednu and
tnemtsevni .stluser tromlb enoyreve sah rieht nwo yaw fo gniod this.
A noitautis fo yhcrana sngier ni eht elahw aerm fo gnizylana ecnarusni
.stiforp tneicnA lerreI eaw ni a ralimis xif ni eht syad erofeb ti had sti
tsrif king. enoyrevE did tahw yeht thought saw right and soahc ,dengier
A rojam trap fo eht melborp si that tnerruc ecnarusni gnitnuocca -etats
stnem evah ton neeb dengised ot sesrdda eht sdeen fo tiforp .'noitaulave
sihT repap rebircsed na gnitnuocca metsys that 5etargetni gnitirwrednu
sgninrae and sgninrae morf fund5 supplied by .sremotsuc tI osla sekat otni
tnuocca sgninrae morf latipac funds. Such a metsys dluow evres 5a a ecnerefer
ecruos hcihw dluow wolla enoyreve ot peek erocs nI eht emas .yaw sihT dluow
evorpmi 5’enoyreve understanding fo ecnarusni ynapmoc .ecnaerofrep ynapmoC
,tnoreganam ecnarusni ,srotaluger rmmnoc ,setacovda and Wall teertS stsylana
could all .tifeneb
eW nigeb by gniredisnoc eht cigol fo ecnarusni ynapeoc .ytilibatiforp tI
si tneinevnoc ot edivid eht stiforp denrae by ecnarusni seinapmoc otni eerht
.5ecruo5 ehT tsrif ecruos si eht tiforp denrae by gnitrevni latipac funds.
ehT dnoces si gnitirwrednu .tiforp ehT third si eht tiforp denrae by gnitsevni
redlohycilop supplied funds. ehT dnoces and third eecruoe emoc eorf gnieb ni
eht $cnarueni .ssenisub :uhT rieht mus si dellac eht ecnaruenl upro ni siht
.repap ehT tsrif ecruos dluow tsixe rehtehw latipac fund5 erew deyolpre ni eht
ecnarusni ssenisub ro not. hcaE ecruos fa tiforp ei detaulave no na xat-rotfa
.sisab
,yllaciroteiH ecnarumni stiforp evah detsisnoc fo gnitirwrednu sessoJ and
tnemtsevni ,em-&~ ehT mus fo eht owt sah usually neeb .evitisop sihT -idni
5-tac that gnitirwrednu 5noitarepo evah yliraeirp devres sa a ecruos fo fund5
rof tnemtsevni .eesoprup
.1 tnerruC yrotutats gnitnuocca stnemetats erew dengised ot evres eht esoprup
fo gnirusaem ecnarusni ynapmoc .ytidilos sihT esoprup dluow eb retteb
devres by eht noisulcni fo all noitaerofni tnaveler ot gnitaulave -rurni
etna ynapaoc .ecnaerofrep
.2 neewteB 6291 and ,5891 eht industry diap out, no ,ogsreva 06.0015 rof -sol
,SDS ,sesnepxe and redlohycilop sdnedivid rof yreve 00.001$ fo smuimerp ti
.denrae eerF lE91 through ,5891 eseht stnemyap dedeecxe smuimerp denrae
by erom than 055 billion.
-744-
cimonocE yroeht sehcaet that ytilibatiforp depends, ni eht long run, no
eht tnuoma fo ksir that si nekatrednu by a ssenisub ,esirpretne ecnarusnI -moc
seinap evah eht ytinutroppo ot ekat ksir ni owt tcnitsid :saera ,gnitirwrednU
and .stnemtsevnI ehT latot tiforp morf ecnarusni snoitarepo fo eht ynapmoc
sdneped no woh much ksir si nekat ni hcae .aera eW nac etats siht sa rswollof
ECNARUSNI TIFORP = TEKRAM KSIR IIUIMERP NO ECNARUSNI KSIR II(
+ TEKRAM KSIR MUIMERP NO TNEMTSEVNI KSIR
Gut ecnarusni tiforp sI osla eht mus fo eht gnitirwrednu tiforp and eht tiforp
denrae by gnitsevni redlohycilop supplied funds. :suhT
ECNARUSNI TIFORP GNITIRWREDNU TIFORP 12(
q
t TNEMTSEVNI TIFORP TA KSIR EERF SETAR
f TEKRAH KSIR HUIRERP NO TNEMTSEVNI KSIR
eroferehT gnitirwrednu stiforp era a function fo eht tekram ksir muimerp no -ni
ecnarus ksir and eht tnemtsevni tiforp ta ksir eerf .setar tahT :si
GNITIRWREDNU TIFORP = TEKRAM KSIR MUINERP NO ECNARUSNI KSIR 15(
- TNEWTSEVNI TIFORP TA KSIR EERF SETAR
ehT tekram drawer rof gniraeb ecnarusni ksir si unknonn. fI ti erow ,orez
,revewoh eht ecnarusni tiforp rof na rerusni gnitsevni ni ksir eerf stessa
dluow osla eb .orez sihT ecnarusni ynspeoc sekat on ksir ecnis( rehtien
gnitirwrednu ro tnemtsevni ksir )stsixe and tonnac tcepxe yna .tiforp nI siht
,esac eht gnitirwrednu tiforp lliw eb lauqe ot eht evitagen fo eht tnemtsevni
tiforp ta ksir eerf .setar
fI siht rerusni erew ot tsevni ni yksir ,stessa ,revewoh ti could tcepxe a
rehgih nruter morf sti stnemtsevni than ti dluow morf ksir eerf stessa and
dluow nrae a .tiforp sihT tiforp dluow tsixe esuaceb eht ynapmoc deruces eht
esu fo funds by gnitirw .ecnarusni tI dluow ekam yenom no eht daerps neewteb
eht tnemtsevni nruter ti could teg by gnikat krir and eht nruter elbaliava ta
ksir eerf .setar
nehW ecnarusni ksir si retaerg than ,orez eht ecnarusni tiforp rof na
rerusni gnitsevni ni ksir eerf stessa lliw osla eb retaerg than .orez sihT
lanoitidda tiforp lliw tcelfer eht drawer rof ecnarusni .ksir ecnarusnI
,meinapnoc ,erofereht era ni a noitisop ot raeb owt sepyt fo 1ksir ecnarusnI
ksiR and tnemtsevnI ,ksiR and ot nrae owt sepyt fo .drawer
nI smret fo rieht tnemtsevni ,ksir ecnarusni seinrpmoc era brslcrlly
laicnanif seiraideeretni ekil .sknab yehT niatbo funds morf sredlohycilop and
tsevni .meht riehT stifora era denrae by eht daerps neewteb eht tsoc fo funds
and eht nruter no f!. .c
nA gnitseretni yaw ot think fo ecnarusni snoitarepo ni smret fo eht sepyt
fo ksir si ot ezingocer that eht tnemtsevni tnemtraped fo na ecnarusni ynapmoc
snoitcnuf ekil a brnk. tI sekat funds dedivorp by eht gnitirwrednu noitarepo
and syap rof meht ta ksir eerf .setar tI stsevni eht funds ni yksir stessa and
stcepxe ot nrae a tiforp morf eht ksir ti si .gnikat ehT ecnereffid neewteb eht
-tint fo tnemtsevni emocni ti snrae and sti tsoc - fo funds si eht P tifer ti
snrae L ehT tnuoma fo tnemtsevni emocni denrae by eht tneetsevni tnemtraped
includes ,tseretni ,sdnedivid and tner sa llew sa all lailpac sniag and sessol
sa llew sa tseretni and rehto tnemtsevni .emocni ehT gnitirwrednu noitarepo
steg detiderc rof eht funds ti sedivorp ot eht tnemtsevni tnemtraped ta ksir
eerf .setar suhT eht gnitirwrednu noitarepo snrae J tiforp hcihw sdneped no
eht ecnarusni ksir ti sekat ,no ma nwohs ni alumrof .13(
eW ees that egdelwonk fo tnemtsevni emocni morf redlohycilop supplied
funds s1 na laitnesse trap fo yna sisylana fo ecndrusni .snoitarepo eH osla
,WS ,revewoh that only ksir eerf sotdr era tnaveler ot understdndinq stiforp
morf gnitirwrednu ,snoitarepo ehT tnrntsevnt ksir auiaorp rdrndd yb eht
tnemtsevni tnemtraped should ekam little ecnereffid ot eht tiforp l denre by eht
tndurdncd ,nottrwpo
sihT repap lliw sucof no eht smelborp fo gnirusaem tnemtsevni emocni ni a
yrw that sedivorp sa etarucca a erutcip IP elbissop fo eht ecnarusni tiforp
gnieb denrae by eht .rerueni eW era detserrtnf ni putting rehtegot a kroaeearf
rof gnipeek .erocs gninimreteD eht tekram drawer rof gniraeb rcnarusni ksir
si dnoyeb eht epocs fo siht .repap eW era ,decnivnoc ,revewoh that ew
tonnac neve nigeb ot study eht rettal subject until ew evah retteb seritssem fo
ecnarusni ynapmoc .snoitarepo
tnerruC gnitnuocca stnemetats wolla rof eht noitanimreted fo gnitirwrednu
.stiforp yehT osla wolla rof thr noitanimreted fo latot tnemtsevni .stiforp
yehT od ton edivorp tcerid noiterrofni tuobs ecnarusni .stiforp suhT ti si
yrev difficult ot esu eseht otnemetats ot enimreted ecnarusni .stiforp tI si
yltnerruc difficult, ,erofereht ot erusaem eht ecnamrofrep fo ecnarusni
seinapmoc wlth drager ot rehtie rieht gnitirwrednu ksir ro rieht tnemtsevni
.ksir
gnitnuoccA etnemetrtr should edivorp detargetni noitamrofni tuoba
ecnarusni gnitirwrednu stluser and eht detaicossa tnemtsevni sgninrae eorf
redlohycilop supplied funds. yehT should tnaserp gnitirwrednu tiforp ,snigram
tnemtsevni agninrre detcepxe morf stessa underlying redlohycilop supplied
funds, and sqninrre +orf funds dedivarp by .srenwo
seinapmoC lliw evah ot edivorp erom noitamrofni ni rieht laicnanif -rtrts
stnem than yeht yltnerruc od fi yeht ro rrehto hsiw ot niap eroc understanding
fo rieht .snoitarepo A lot, ,revewoh nac eb enod htiw noitamrofni ydaerla
.,elbaliava launnA tneretats atad si non supplied ni a retupmoc elbadaer .erof
tI si won elbissop ot ngised lanoitidda ro tnemecalper segap using siht atad
that lliw dia eht simylane fo eht laicnanif yraiderretni stcepsa fo
ytlausac/ytreporp ecnarusni .snoitarepo ehT hcaorppa debircsed ni siht repap
lliw eb dellac eht detcepxE eulaV gnitnuoccA )AVE( ,hcaorppa
.
-OLLA
sihT repap lliw doucorp by gnissucsid em& selpicnirp ot esu ni derignlng
eht AVE .metsys tI lliw ssucsid woh much atad si won elbaliava rof siht pur-
.esop hcuM fo siht atad nac only eb desu by gnikam niatrec .snoitpmussa ynaM
fo eseht era etiuq elbanosanr and nac eb desu htiw emos ocnsdifnoc that yeht
lliw edivorp eht dedeen insight. srehtO era regnorts .si( ssol )elbanosaer and
tonnac eb ussd htiw eht emas eerged fo .ecnedifnoc nI eseht ,saera lanoitidda
noitamrofnI dluow edivorp erom insight.
.I ECNARUSNI SDNUF DNA SWOLF
ehT tsrif pets ni eht AVE dohtem si ot szinagroer eht ecnalaB .teehS
ELBAT 1
:LATOT LLA SEINAPROC )9891(
DNUF DETNEIRO ECNALAB TEEHS
000,000( ldettieO
DETSEVNI STESSA SEITILIBAIL
I .7 4 x
sdnoB 546,071 9.5b denraenU merP evreseR OfE,bS 0.22
skcotS 457,25 4.02 sseL detcellocnU .raerP 191,72- 5.01-
rehtO .vnI stessA 904,IX 7.31 teN denraenU morP 066,92 3.11
ssoL I EAL ssvreceR 79s,551 .OL 1
latoT 808,852 0.001 denraenU sesnepxE 360,01- 9.3-
sseL diapnU sesnepxE 743,4 7.1
tsN drntaenU sesnspxE 617,5- 2.2-
teN ecnarusnI Funds 045,971 4.96
tsN rehtO seitilibaiL 069,1- 8.0-
ytiuqE Funds (Surplus) 822,18 4.13
latoT 808,852 0.001
ehT segatnecrep wohs that tuoba owt thirds fo ths detsevni stessa era sup-
plied by sremotsuc and eno third by eht .srenwo ehT tnecrep fo bonds )%9.56(
si etiuq esolc ot thr tnecrep fo remotsuc supplied ,stessa sihT yar eb -nioc
latnedic but gnihctaa eseht owt smeti sah long nreb na tnemtsevni rule fo
thumb'.
ehT groupings nwohs no siht ecnalab teehs nac all eb devired morf -utats
yrot ecnalab ,steehS htiw eht noitpecxe fo diaperp .*sesnepxe ehT eulav fo
siht hcaorppa si that ti secalp dets%Vni stessa rehtegot ni eno ecalp and eht
sreilppus fo eseht stessa ni .rehtona
.3 ,norreH ,.D.S ecnarusnI" ynapmoC ",stnontsevnI mP ,IIL '342-832
.4 diaperP sesnepxE era ton elbaliava morf yrotutats .secruos
-054-
nA Qmocni tnemetats lliw eb detcurtsnoc by adding 8iQnuhC ni ecnalab teehs
smeti ot eht tnUO@a diap no that meti during eht ,raey denraE smuimerp era
nwohs sa gnieb lauqe ot EOllQCtQd smuimerp plus eht eqnahc ni ten denraenu
smuimerp revo eht .raey derrucnI sessoI era nwohs sa gnieb lauqe ot diap -soi
ses plus eht egnahc ni ssol sevreser during thQ .raey derrucnI sesnepxe era
nwohs sa gnieb lauqe ot diap oesnepxe plus eht egnahc ln eht diaperp e8nepxe
evreser durinq eht .raey
ehT txen petr ni QnipOleVQd thQ AVE dohtem si ot wohs wolf.eht fo -rusni
ecna funds. elbaT II swohs siht wolf rof eht inductry ni :5891
ELBAT II
iLATOT LLA SEINAPBOC 158911
ECNARUSNI SDNUF SWOLF
s891
---s---
nettirW smuimerP 743,441
egnahC ni UnCOllQctQd ,merP 565,3-
smuimerP detcelloC 697,041
diaP 6soL & EAL ol!9,79-
sesnepxE diaP 915,93-
latoT ecnarusnI hsaC wolF 723,3
snuim?rP detcQIloc era dskcab otni by subtractinq eht chanqr ni muimerp
QQlbaviQCQr morf nettirw .muimerp QihT rQti si won included yltcerid ni eht
tUnna tnQaQtatQ but sah ton neeb ni roirp .sraQy
txeN ew etaluclac eht egnahc ni 1aniaon inrutQncQ .Qevreser
ELBAT III
;LATOT LLA EEINAPHOC )18911
EBNAHC NI LANIRON ~CNAhlSNI SDNUF
4891 5891 eqnahC
------- ----es- ------
denraenU serP sevreseR 238,S4 058,63 910,11
dQtCQllOCnU 8RUimQrP 62b,32- 191,72- SbS,3-
teN denraenU rerP 602,22 066,72 454,7
ssoL & EAL 8evreseR 278,131 795,SSl 427,32
tQN diapQrP sesnQpxE ZSl,S- 617,5- 465-
teN ecnarusnS Fundr 629,841 14s,971 316,03
-154-
yrotutatS ecnarusnI funds desaercni by 6.05$ billion during .5891 diaperP
sesnepxe decuder funds esiwrehto elbaliava funds by ylraen half a billion. taN
denraenu smuimerp desaercni by 5.7$ billion. ssoL revreEeR decrercni by 7.32$
billion.
fI ew add eht egnahc ni eht ecnarusni funds ot eht tnuoma diap during eht
raey ew revah
ELBAT VI
rLICTOT LLA SEINAPMOC 15891(
DERRUCNI ECNARUSNI SWOLF
evreseR
stnemyaP segnahC derrucnI
-------- _______ --------
smuimerP denraE 697,041 454,7- 243,331
derrucnI BPOL L EAL 059,79- 427,32- 376,121-
derrucnI sesnepxE 915,93- 4b5 659,83-
P&AG gnitirwrednU 'tiforP 723,3 516,03- 782,72-
eW ees that eht PnAG gnitirwrednu tiforp ri eht mus fo eht cuoirav -yap
stnem eht( wolf fo funds) and eht segnahc ni 8evreser eht( kcots fo funds).
mauinerP wolf otni eht ten denraenu fund nehw yeht era .detcelloc yehT wolf
tuo otni eht ssol and EAL evreser fund, eht esnepxe fund, and surplus nehw
serusopxe era .denrae
derrucnI sessol era yllautneve diap morf eht rrol and EAL evreser fund.
tahT ,si sesnel era diap morf .sevreser derrucnI aernepxe wolf morf eht
denraenu muimerp evreser otni eht esnepxe evreser and then tuo sa sesnepxe era
.diap etihW siht tnemtaert si eht emas sa that desu rof ,sessol ti ni erom
confusing esuaceb tsom esnepxe stnemyap era edam erofeb serusopxe era .denrae
sessoL era syawla diap retfa serusopxe era .denrae ssoL cevreBer tneserper eht
noitagilbo ot ekam future mtnemyap no srscol hcihw evah ydaerla .derrucco
nI ,lareneg eht diaperp eirnepxe evreser stneserper stnemyap no ssenisub
hcihw sah ton tey neeb .denrae tI ,stneserper no ,ecnalab na ecnavda fo funds.
suhT ti stneserper a ytilibail hcihw si evitagen eicuaceb ti usually stneserper
tsap .stnemyap esnepxE stnemyap edam retfa 6erusopxe era denrae tneserper a
future ytilibail ni eht emas esnes that ssol seitilibail .od redlohyciloP
sdnedivid tneserper riht epyt fo ernepxe ecnis yeht era diap retfa smuimerp era
.denrae yehT tneserper a future detcepxe tnemyap ni eht eman esnes that cesaol
.od
.5 ehT mret "PAAG" gnitirwrednU tiforP si gnieb desu ereh ot ezingocer eht
noisulcni fo diaperp .sesnepxe rehtO PMG stnemtrujda evah ton neeb .edam
ehT ecnarusni funds wolf csecorp nac eb deledom ni 5nret fo eseht -nuocca
tinq .seirtne tibihxE I snohs a margaid fo riht .55ecorp Funds wolf otni eht
ynapmoc sa detcelloc .smuimerp yehT wolf tuo CP redlohkcots ,sdnedivid diap
5501 and ssol adlustnent ,reonepxe and sesnepxe (includinq redlohycilop -ivid
.15dned ehT flons ylerar ekat ecalp ta eht tcaxe emit that 5erusopxe era
.denrae suhT yeht mrof rehtie evitisop sloop fo yenom (such 5a s501 and E&L
)sevreser ro evitagen elooP (such 5a diaperp .lsesnepxe ehT evitagen sloop er
tneserp fund5 gniwolf morf eht ynapmoc erofeb eht muimerp si snrae !.
ylgnitseretnI enough, neve eht ten denraenu muimerp fund 5ah neeb evitagen
ni emos .snoitautis sihT sneppah nehw eht yaled ni gnitcelloc 5muimerp si
longer, no ,egareva than eht emit ti 5ekat ot nrae thr .eru5opxe ,fI rof
,ecnatsni eht ynapmoc 5tcelloc sti smuimerp na egareva fo eno raey retfa ti
setirw sti seicilop then eht ten denraenu muimerp fund lliw eb .evitagen tA
eht height fo eht hsac wolf risirc fo ,3891 ereht ri ecnedive that lareves
laicremmoc senil seinapmoc erew qnitcelloc snuirerp retfa seicilop erew .denrae
qnitiritrednU tiforp si tahw si left revo morf denrae smuimerp retfa eht
reporp 5noitubirtnoc evah neeb edam ot eht ssol and ecnepxe evreser fundr.
sihT nac eb nnes morf tibihxE ,I Surplu5 si detiderc htiw eht detceoxg under-
qnitirw tiforp ro esol ta eht tnemom sersol rucco and serusopxe era .denrae
5muimerP era dehctam ot sessol and sesnepxe ot drocer eht gnitirwrednu .tiforp
5ihT tpecnoc fo gnizingocer gnitirwrednu 5tiforp ro sessol ta eht emit
that elbacilppa serusopxe era denrae si dednetni ot edivorp na etarucca erutcip
fo eht s'ynapmoc gnitirwrednu tiforp ecnarrufrep ta eht emit ti 5ekat .ecalp
fI 50ssol and smuimerp erew yltcefrep dedrocer ta eht emit nehw elbacilppa
5muimerp erew ,denrae siht erudecorp dluow edivorp na etarucca erutcip fo eht
58ynapmoc gnitirwrednu tiforp ecnamrofrep ta that .emit rehtieN smuimerp ro
sessol era yltcefrep nwonk ta eht tnemom fo ,erusopxe ,revewoh and tsum eb
,detamitse
,yllautnevE res5nl and rmuinrrp emoceb nwonk and tsum eb nekat otni
.tnuocca htoR PAAG and yrotutats gnitnuocca ecitcarp 5i ot evah 5etamitsesim
wolf otni stiforp nehw yeht era .detcerroc suhT eht lautca gnitirwrednu tiforp
dedrocer ni yna nevig raey 51 eht detamitse tiforp no eht tnerruc tnedicca raey
eht( l seru5opx denrae during eht )ta&y plus yna segnahc ni detamitse
gnitirwrednu 5tiforp morf roirp 5'raey .seruropxe tahT rsI
DNU TIFORP t DETMITfE DNU TIFORP
tnerruc lac ry tnerruc tca ry
+ DETMtITSE& DNU TIFORP
roirp sry
tibihxE I
MARGAID FO ECNARUSNI SDNUF DNA SWOLF
t-------------------------t
8 I
wolF
6 I
I nettirW smuimerP I
t------------t------------+
+tttttttttttttttttttttttt:t
t Fund t
t t
t muimerP 5elbavieceR t
+tt:ttttttttt+tttttttttttt+
t------------t------------+
I wolF 1
I I
I detcelloC smuimerP I
t------------+------------t
s
+tttttttttttttttttttttttttt
t Fund *
t t
t teN denraenU smuimerP t
+tttttttttttt+ttttttttttttt
t------------t------------+
I wolF
t-------------t t-----..--------+
I I denraE smuimerP I I
t t-------------------------t 1
I I I
+---..---t--------t t------------t------------+ t--------t--------+
0 wolF I I wolF I I wolF t
, , I I I
: gnitirwrednU I I derrucnI ssoL & EAL ' 4 I derrucnI I
8 5tiforP I I ; I esnepxE I
t-------t--------+ t------------+------------t +--------t--------t
I I I
tttttttatttttttttt ttttttttttttttttttttttttttt *tttt&ttttttttttttt
t Fund t t Fund t t Fund t
t t t t t t
t deniateR t t s5oL P EAL sevrereR t t diaperP t
t sgninraE t t $ t 55nopnE Fund t
tttttttttttttttttt +ltS(t(t:ttttttttttttttttt+ ttttttttttttttttttt
S s S
t-------t--------+ t------------t------------+ +--------t------..-*
wolF I wolF 0 wolF I
t
: redlohkcotS : diaP 55oL k EAL I 1 diaP sesnepxE I
sdnediviD I # I I
t----------------t t-------------------------t t-m---------------+
seirautcA call siht eht "raey-radnelac" dohtem esuaceb all snoitcerroc ni
snoI setamitse tceffa eht gnitirwrednu tiforp rof eht raey ni hcihw eht -roc
noitcer si .edam nA etanretla dohtem si ot etamitseer roirp sraey gnitirwrednu
stiforp revenehw snoitcerroc era .edam ,suhT fi 605501 gnirrucco ni 0891 -ni
esaerc by 001$ noillim ni ,3091 eht detamitse gnitirwrednu prufit rof 0891 -od
sesaerc by 0015 .noillim sihT si dellac eht "raey-tnedicca" dohtem fo -tnuocca
ing.
erehT era segatnavda and sgnimoctrohs ot both .sehcaorppa ehT egatnavda
fo eht tnedicca raey hcaorppa si that eht eurt gnitirwrednu tiforp rof yna raey
yllautneve semoceb .nwonk ehT egatnavdasid si that ti yam emoceb nwonk only
nehw ti si a rettam fo purely lacirotsih .tseretni ehT radnelac raey dohtem
sdrocer setamitsesim ta eht emit yeht emoceb .nwonk sihT sekam tnemeqanam -er
elbisnops rof meht ta that .emit
ehT radnelac raey hcaorppa smees ot eb a ytissecen rof gnitnuocca -ucod
stnem dednetni ot mrofni sresu fo gnihtyreve that sah deneppah ot a ynapmoc
during a ralucitrap gnitnuocca .doirep sihT sedutcni eht tcapmi fo snoitcerroc
rof roirp s'raey 5etamitsesim erahw ecnerehda ot laurcca 5elpicnirp fo -tnuocca
ing 5i .elbissopmi tA eht emas ,emit .revewoh radneiac raey anitnuocca mc
edivorp a anidaelsim erutcip fo eht s'vnaomoc tnerruc anitirwrednu .ecnamrofrep
gnitnuoccA 5tnemetats nac edivorp setamitse fo both tnerruc s'raey under-
gnitirw ecnamrofrep and eht tcapmi no stiforp fo snoitcerroc rof roirp sraey
.5etanitce5im sihT nac eb enod by gniwohs evreser segnahc and stnemyap
elbacilppa ot both eht tnerruc raey and roirp sraey .yletarapes
nwohS woleb si na tibihxe hcihw setarapes ssol noitamrofni otni eht -ruc
tner raey and all roirp !sraey
ELBAT V
:LATOT LLA SEINAPMOC )5691(
SISYLANA FO GNITIRWREDNU TIFORP
OOO,OOO,OOOf 1dettimO
SEVRESER 48121 58121 egnahC STNEIIYAP DERRUCNI
denraenU smuimerP smuimerP diaP smuimerP denraE
denraenU 64- 75-
detcellocnU 42 72
teN 22- 05- 7- 141 33t
ssoL by EAL sevreseR diaP sessoL derrucnI sesroL
s691( 231- 09- 24 15- 9-
3891 XXX 5.4 56- 74- 311-
denraenU sesnepxE diaP sesnepxE derrucnI 5esnepxE
denraenU 9 01 1
diapnU 4- 4- 0
teN 5 4 1 04- 93-
teN ecnarusnI Funds teN .snI stnemyaP
941- 971- 03- 3 72-