/
Most Intelligent Leaders in Data Science & Analytics, 2023 Most Intelligent Leaders in Data Science & Analytics, 2023

Most Intelligent Leaders in Data Science & Analytics, 2023 - PDF document

ciolook
ciolook . @ciolook
Follow
67 views
Uploaded On 2023-12-20

Most Intelligent Leaders in Data Science & Analytics, 2023 - PPT Presentation

This edition features a handful of The Most Intelligent Leaders in Data Science Analytics that are leading us to a better future ID: 1035424

#internationalbusinessmagazine #Globalbusinessmagazine #topbusinessmagazine #BestBusinessMagazineforentrepreneurs

Share:

Link:

Embed:

Download Presentation from below link

Download Pdf The PPT/PDF document "Most Intelligent Leaders in Data Science..." is the property of its rightful owner. Permission is granted to download and print the materials on this web site for personal, non-commercial use only, and to display it on your personal computer provided you do not modify the materials and that you retain all copyright notices contained in the materials. By downloading content from our website, you accept the terms of this agreement.


Presentation Transcript

v}Ár,}Á,}ÁdZv}o}PÇ]vZv]vPšZ&µvuvšo}(µ]vM92/,,668(,w :HXHµööÞеH"OBMZUJDT\rÂÀÂÃ(ŠHŠ²§Þµ§µ -FBEFSTJO mÞϵ(µ®Þ§ŠHµ®H (ŠHŠÀ2Š:Ï 2ÿŠHÞhµmµŠ®µ2:ØÞ/àص2µ§Š::Þ wµµH:§2 Ð2µ::3BZNPOE/H¦T dZrŒ]À�ÀŒP]vPdZ‰š}(/ ZÇu}vEP]Œš}Œhš^]v/vŸšµš -FBEFSTIJQÜæáâçÔÕâèçEHLQJ¼çÜæÔÕâèçPDNLQJFWFSZPOFHOVHCFUUFSUIFCFTUêêê¡ÖÜâßââÞ¡Öâà -FBEFSTIJQÜæáâçÔÕâèçEHLQJ¼çÜæÔÕâèçPDNLQJFWFSZPOFHOVHCFUUFSUIFCFTUêêê¡ÖÜâßââÞ¡Öâà VWKHZRUOGKXUWOHVLQWRWKHGLJLWDODJHWHFKQRORJ\\n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n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n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nVHPEDUNRQDMRXUQH\WRGLVFRYHUWKHYLVLRQDULHVJXLGLQJWKHWHFKLQGXVWU\LQWRWKHIXWXUH +PVSOFZPG5FDI&OUIVTJBTUT%SJWJOH*OOPWBUJPOT )GRU V2RWH )GRU V2RWH )GRU V2RWH VWKHZRUOGKXUWOHVLQWRWKHGLJLWDODJHWHFKQRORJ\\n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n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n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nVHPEDUNRQDMRXUQH\WRGLVFRYHUWKHYLVLRQDULHVJXLGLQJWKHWHFKLQGXVWU\LQWRWKHIXWXUH +PVSOFZPG5FDI&OUIVTJBTUT%SJWJOH*OOPWBUJPOT )GRU V2RWH )GRU V2RWH )GRU V2RWH $POUFOUT $PWFS4UPSZ  mÞϵ(µ®Þ§ŠHµ®H (ŠHŠÀ2Š:Ï 2ÿŠHÞhµmµŠ®µ2:ØÞ/àص2µ§Š::Þ wµµH:§2 Ð2µ::3BZNPOE/H¦T c„~‡€Ž 5FDI%SJWF /HYHUDJLQJ7KH$VSHFWVRI$, ,OPX)PX +RZ7HFKQRORJ\LV(QKDQFLQJWKH)XQGDPHQWDOVRI%XVLQHVVHV" $POUFOUT $PWFS4UPSZ  mÞϵ(µ®Þ§ŠHµ®H (ŠHŠÀ2Š:Ï 2ÿŠHÞhµmµŠ®µ2:ØÞ/àص2µ§Š::Þ wµµH:§2 Ð2µ::3BZNPOE/H¦T c„~‡€Ž 5FDI%SJWF /HYHUDJLQJ7KH$VSHFWVRI$, ,OPX)PX +RZ7HFKQRORJ\LV(QKDQFLQJWKH)XQGDPHQWDOVRI%XVLQHVVHV" %ULHI&RPSDQ\1DPH 5D\PRQG1J'LUHFWRU5D\PRQG¶VOHDGHUVKLSVKLQHVWKURXJKDVKHJXLGHVRWKHUVOHYHUDJLQJKLVH[SHUWLVHWRDSSO\GDWDVFLHQFHDFURVVGLYHUVHGRPDLQV1HKDO-DLQ3ULQFLSDO&RQVXOWDQW)URPVWUDWHJLFSODQQLQJWRVHDPOHVVLPSOHPHQWDWLRQ1HKDOXWLOL]HVFXWWLQJHGJHWHFKQRORJ\VROXWLRQVWKDWFDWHUWRWKHVSHFL¿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rvFHU6XVDQD&RUUHLD5HJLRQDOOHDGHU 6WD\rvQJDQG6FDOHG /LQNHG,Q7DOHQW6ROXWLRQV0(1$ ¶ÂÁǸÁÇ ·Øãèçì¸×ÜçâåððÿBüðXÿ�ãÀÔáÔÚÜáÚ¸×ÜçâåP¾Jü�ãÿãð"ãØ"�¾ ·¸Æ¼ºÁ ÉÜæèÔßÜíØåðð"¾bãð¾JãB´åç™·ØæÜÚá·ÜåØÖçâåðð"¾bÿBðX�¾Jÿ´ææâÖÜÔçØ·ØæÜÚáØåððN¾ãB"ð�¾ðð Æ´¿¸Æ ÆØáÜâåÆÔßØæÀÔáÔÚØåð¡ÿB"ðˆ»¼ð�OJ�ãð"»¶èæçâàØåÆèÖÖØææÀÔáÔÚØåð|ÿÙü�¾ßB"ð"»ÆÔßØæ¸ëØÖèçÜéØæððˆÿ¼ð€ÿJü Ǹ¶»Á¼¶´¿ ÇØÖÛáÜÖÔß»ØÔ×ððyãJ�ãð�¾ißãÇØÖÛáÜÖÔ߶âáæèßçÔáçðð ÿÙJ"�ð"ÿB1RYHPEHU¶âãìåÜÚÛçû¥£¥¦¶¼Â¿Â¾Ÿ´ßßåÜÚÛçæåØæØåéØסÇÛØÖâáçØáçÔá×ÜàÔÚØæèæØ×ÜáçÛÜæàÔÚÔíÜáØæÛâèß×áâçÕØåØãåâ×èÖØ×âåçåÔáæàÜççØ×ÜáÔáìÙâåàâåÕìÔáìàØÔáæŸØßØÖçåâáÜÖŸàØÖÛÔáÜÖÔߟãÛâçâÖâãìÜáÚŸåØÖâå×ÜáÚâåâçÛØåêÜæØŸêÜçÛâèçãåÜâåãØåàÜææÜâáÙåâ඼¿Â¾¡ÅØãåÜáçåÜÚÛçæåØàÔÜáæâßØßìêÜçÛ¶¼Â¿Â¾¡ ¹Â¿¿ÂÊÈÆÂÁ êêê¡ÙÔÖØÕââÞ¡Öâà¢ÖÜâßââÞêêê¡çêÜççØå¡Öâà¢ÖÜâßââÞ Ê¸´Å¸´¿Æ´ɴ¼¿´µ¿¸ÂÁ &¾ÿðÜáÙâ³ÖÜâßââÞ¡Öâà8"�ð€OØBÙ�ÿ;Jÿ"êêê¡ÖÜâßââÞ¡Öâà ¶ÂÁÇ´¶ÇÈÆÂÁ y"" ¾ðXð¾B¾ ¸×Üçâå Üá ¶ÛÜØÙ æÔßØæ³ÖÜâßââÞ¡Öâà ÆÀ¸ ÆÀ ÅØæØÔåÖÛ´áÔßìæçðð&�ÿÙð€ÿJüƸ¸ëØÖèçÜéØððãð€;ãÙ�ã %ULHI&RPSDQ\1DPH 5D\PRQG1J'LUHFWRU5D\PRQG¶VOHDGHUVKLSVKLQHVWKURXJKDVKHJXLGHVRWKHUVOHYHUDJLQJKLVH[SHUWLVHWRDSSO\GDWDVFLHQFHDFURVVGLYHUVHGRPDLQV1HKDO-DLQ3ULQFLSDO&RQVXOWDQW)URPVWUDWHJLFSODQQLQJWRVHDPOHVVLPSOHPHQWDWLRQ1HKDOXWLOL]HVFXWWLQJHGJHWHFKQRORJ\VROXWLRQVWKDWFDWHUWRWKHVSHFL¿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rvFHU6XVDQD&RUUHLD5HJLRQDOOHDGHU 6WD\rvQJDQG6FDOHG /LQNHG,Q7DOHQW6ROXWLRQV0(1$ ¶ÂÁǸÁÇ ·Øãèçì¸×ÜçâåððÿBüðXÿ�ãÀÔáÔÚÜáÚ¸×ÜçâåP¾Jü�ãÿãð"ãØ"�¾ ·¸Æ¼ºÁ ÉÜæèÔßÜíØåðð"¾bãð¾JãB´åç™·ØæÜÚá·ÜåØÖçâåðð"¾bÿBðX�¾Jÿ´ææâÖÜÔçØ·ØæÜÚáØåððN¾ãB"ð�¾ðð Æ´¿¸Æ ÆØáÜâåÆÔßØæÀÔáÔÚØåð¡ÿB"ðˆ»¼ð�OJ�ãð"»¶èæçâàØåÆèÖÖØææÀÔáÔÚØåð|ÿÙü�¾ßB"ð"»ÆÔßØæ¸ëØÖèçÜéØæððˆÿ¼ð€ÿJü Ǹ¶»Á¼¶´¿ ÇØÖÛáÜÖÔß»ØÔ×ððyãJ�ãð�¾ißãÇØÖÛáÜÖÔ߶âáæèßçÔáçðð ÿÙJ"�ð"ÿB1RYHPEHU¶âãìåÜÚÛçû¥£¥¦¶¼Â¿Â¾Ÿ´ßßåÜÚÛçæåØæØåéØסÇÛØÖâáçØáçÔá×ÜàÔÚØæèæØ×ÜáçÛÜæàÔÚÔíÜáØæÛâèß×áâçÕØåØãåâ×èÖØ×âåçåÔáæàÜççØ×ÜáÔáìÙâåàâåÕìÔáìàØÔáæŸØßØÖçåâáÜÖŸàØÖÛÔáÜÖÔߟãÛâçâÖâãìÜáÚŸåØÖâå×ÜáÚâåâçÛØåêÜæØŸêÜçÛâèçãåÜâåãØåàÜææÜâáÙåâ඼¿Â¾¡ÅØãåÜáçåÜÚÛçæåØàÔÜáæâßØßìêÜçÛ¶¼Â¿Â¾¡ ¹Â¿¿ÂÊÈÆÂÁ êêê¡ÙÔÖØÕââÞ¡Öâà¢ÖÜâßââÞêêê¡çêÜççØå¡Öâà¢ÖÜâßââÞ Ê¸´Å¸´¿Æ´ɴ¼¿´µ¿¸ÂÁ &¾ÿðÜáÙâ³ÖÜâßââÞ¡Öâà8"�ð€OØBÙ�ÿ;Jÿ"êêê¡ÖÜâßââÞ¡Öâà ¶ÂÁÇ´¶ÇÈÆÂÁ y"" ¾ðXð¾B¾ ¸×Üçâå Üá ¶ÛÜØÙ æÔßØæ³ÖÜâßââÞ¡Öâà ÆÀ¸ ÆÀ ÅØæØÔåÖÛ´áÔßìæçðð&�ÿÙð€ÿJüƸ¸ëØÖèçÜéØððãð€;ãÙ�ã mÞϵ(µ®Þ§ŠHµ®H (ŠHŠÀ2Š:Ï 2ÿŠHÞhµmµŠ®µ2:ØÞ/àص2µ§Š::Þ wµµH:§2 Ð2µ::3BZNPOE/H¦T$PWFS²H 2o Àص(²X)P®µ2ªŠoÿ ®Z::HµiŠ2®:ØÞ/) H öoH2Š:Ï 2ÿ:§Š§µ22µ:µŠ2§Ø¦PHŠö: /Šhµ:HصiŠoÏ 2ŠÏPHP2µiص2µ®ŠHŠ:§Þµ§µH2Š:§µ®:¦ P®Š2Þµ:)ÿŠòÞÐÞÿ/Š§HÏPö:H2Þ®µ:ÞصŠöHاŠ2µ. g g g g ZÇu}vEP]Œš}Œhš^]v/vŸšµš mÞϵ(µ®Þ§ŠHµ®H (ŠHŠÀ2Š:Ï 2ÿŠHÞhµmµŠ®µ2:ØÞ/àص2µ§Š::Þ wµµH:§2 Ð2µ::3BZNPOE/H¦T$PWFS²H 2o Àص(²X)P®µ2ªŠoÿ ®Z::HµiŠ2®:ØÞ/) H öoH2Š:Ï 2ÿ:§Š§µ22µ:µŠ2§Ø¦PHŠö: /Šhµ:HصiŠoÏ 2ŠÏPHP2µiص2µ®ŠHŠ:§Þµ§µH2Š:§µ®:¦ P®Š2Þµ:)ÿŠòÞÐÞÿ/Š§HÏPö:H2Þ®µ:ÞصŠöHاŠ2µ. g g g g ZÇu}vEP]Œš}Œhš^]v/vŸšµš DWDGULYHQLQQRYDWLRQLVVKLIWLQJODQGVFDSHVLQHYHU\VHFWRUDQG5D\PRQG1JLVDWWKHIRUHIURQWRIWKLVKROGLQJWKHEDWRQRIDFDGHPLFH[FHOOHQFHDQGUHDOZRUOGLPSDFW%HLQJDYHWHUDQSURIHVVRURI&RPSXWHU6FLHQFHDWWKH8QLYHUVLW\RI%ULWLVK&ROXPELD5D\PRQGLVQRWMXVWDQHGXFDWRUæKHèVDYLVLRQDU\+LVMRXUQH\LVDVLOOXVWULRXVDVKLVFDUHHUVSDQQLQJFRQWLQHQWVDQGGLVFLSOLQHVFXOPLQDWLQJLQKLVSLYRWDOUROHDVWKH'LUHFWRURIWKH'DWD6FLHQFH,QVWLWXWH '6, HVWDEOLVKHGLQZLWKLQ8%&èV)DFXOW\RI6FLHQFH5D\PRQGèVWDOHLVRQHRIUHOHQWOHVVGHGLFDWLRQDQGH[SHUWLVH+DYLQJHDUQHGKLVVWULSHVZLWKD%6F +RQV GHJUHHLQ&RPSXWHU6FLHQFHIURP8%&KHFRQWLQXHGKLVDFDGHPLFMRXUQH\REWDLQLQJDQ00DWKGHJUHHIURPWKH8QLYHUVLW\RI:DWHUORRDQGD3K'IURPWKH8QLYHUVLW\RI0DU\ODQG&ROOHJH3DUN+LVH[SHUWLVHH[WHQGVDFURVVGLYHUVHUHDOPVIURPGDWDPLQLQJWRKHDOWKLQIRUPDWLFVVHQVRUDQDO\WLFVDQGWH[WPLQLQJ)RUWKHSDVWGHFDGHKHèVGHOYHGLQWRWKHLQWULFDFLHVRIJHQRPLFVGDWDDQGWH[WGDWDSLRQHHULQJJURXQGEUHDNLQJUHVHDUFKDWWKHLQWHUVHFWLRQRIWHFKQRORJ\DQGKXPDQFRQYHUVDWLRQ1RZDVWKH'LUHFWRURIWKH8%&'DWD6FLHQFH,QVWLWXWH5D\PRQGèVOHDGHUVKLSDFXPHQVKLQHV7KH'6,LVDKXERILQQRYDWLRQæDVSDFHZKHUHLQWHUGLVFLSOLQDU\UHVHDUFKWHDPVFRQYHUJHDQGGDWDVFLHQWLVWVDUHQXUWXUHG,WèVPRUHWKDQDQLQLWLDWLYHLWèV5D\PRQGèVYLVLRQWKDWVKDSHVWKHLQVWLWXWH7KURXJKWKH'6,KHRSHQVGRRUVIRUSDUWQHUVHQDEOLQJWKHPWRDFFHVV8%&èVXQSDUDOOHOHGH[SHUWLVHZKLOHDOVRIDFLOLWDWLQJUHVHDUFKDQGGHYHORSPHQW/HWèVGHOYHLQWRDVWRU\WKDWLVQRWMXVWDERXWDFDGHPLFDFFRODGHVEXWPRUHDERXWIRVWHULQJFROODERUDWLRQVVKDSLQJIXWXUHVDQGOHYHUDJLQJWKHSRZHURIGDWDIRUWKHJUHDWHUJRRG'DWD'UHDPVDQG/HDGHUVKLS5HDOLWLHV5D\PRQGVKDUHVKLVUHPDUNDEOHMRXUQH\ZLWKDQXQZDYHULQJSDVVLRQIRUXQUDYHOLQJWKHP\VWHULHVKLGGHQZLWKLQGDWD+HUHPLQLVFHVê,DPDOZD\VIDVFLQDWHGE\GLIIHUHQWW\SHVRIGDWDDQGKRZWRDQDO\]HWKHGDWDë+LVFXULRVLW\OHGKLPIURPVWUXFWXUHGQXPHULFGDWDWRWKHFRPSOH[LWLHVRIXQVWUXFWXUHGLPDJLQJYLGHRDQGHYHQWXDOO\JHQRPLFVGDWDDQGIUHHIRUPWH[WGDWDDVZHOOZKHUHKHGHOYHGLQWR\HDUVRIJURXQGEUHDNLQJELRPHGLFDOUHVHDUFKVHFXULQJPLOOLRQVLQUHVHDUFKIXQGLQJ'HVSLWHKLVKLJKVFKRROOHYHOELRORJ\EDFNJURXQG5D\PRQGèVGHGLFDWLRQKDVVKDSHGWUDQVIRUPDWLYHJHQRPLFVSURMHFWV7ZRGHFDGHVDJRKHHPEUDFHGWKHUROHRI&KLHI,QIRUPDWLFV2IFHULQDQRQSURWRUJDQL]DWLRQFRPEDWLQJRUJDQIDLOXUHVê,ZDVSUDFWLFLQJGDWDVFLHQFHDQGOHDGLQJGDWDVFLHQFHWHDPVHYHQEHIRUHWKHWHUPçGDWDVFLHQFHèEHFDPHZHOONQRZQëKHVWDWHV$GHFDGHODWHUKHUHWXUQHGWRWKHXQLYHUVLW\DURXQGWKHFORFNDUPHGZLWKYDVWH[SHULHQFH$WWKDWSLYRWDOPRPHQWKHZDVWDVNHGWRFUHDWHDGDWDVFLHQFHLQVWLWXWH5D\PRQGèVOHDGHUVKLSVKLQHVWKURXJKDVKHJXLGHVRWKHUVOHYHUDJLQJKLVH[SHUWLVHWRDSSO\GDWDVFLHQFHDFURVVGLYHUVHGRPDLQV5D\PRQGèVVWRU\LVDQH[DPSOHWRWKHSRZHURIUHOHQWOHVVFXULRVLW\DQGWKHLPSDFWRIWUDQVIRUPDWLYHOHDGHUVKLSLQWKHZRUOGRIGDWDVFLHQFH&UXQFKLQJ1XPEHUV%XLOGLQJ)XWXUHV$WWKHKHDUWRIWKH)DFXOW\RI6FLHQFHOLHVWKH'DWD6FLHQFH,QVWLWXWH '6, DQLQVSLUDWLRQRILQQRYDWLRQDQGFROODERUDWLRQXQGHU5D\PRQGèVLQVLJKWIXOJXLGDQFH7KH'6,LVGHVLJQHGWRLQFXEDWHDQGDFFHOHUDWHUHVHDUFKLQQRYDWLRQDQGWUDLQLQJLQGDWDLQWHQVLYHVFLHQFHëKHHPSKDVL]HV:LWKDIHUYHQWGHGLFDWLRQWRIRVWHULQJLQWHUGLVFLSOLQDU\FROODERUDWLRQWKH'6,SLRQHHUVWKHZD\IRUZDUGLQGDWDVFLHQFHUHVHDUFKDGGUHVVLQJLQWULFDWHFKDOOHQJHVLQKHDOWKVFLHQFHDQGWKHDUWV5D\PRQGèVYLVLRQPDWHULDOL]HVDVWKH'6,EHFRPHVDWKULYLQJKXEXQLWLQJIDFXOWLHVDQGEUHDNLQJGRZQDFDGHPLFVLORVê7KH'6,SURYLGHVDFROODERUDWLRQKXEWRHQDEOHLQWHUIDFXOW\LQWHUDFWLRQVRQUHVHDUFKSUREOHPVLQYROYLQJODUJHDQGFRPSOH[GDWDVHWVëKHHODERUDWHV+HUHGLYHUVHPLQGVFRQYHUJHVSDUNLQJFUHDWLYH XiŠ:/2Š§HÞ§ÞЮŠHŠ:§Þµ§µŠ®öµŠ®ÞЮŠHŠ:§Þµ§µHµŠÿ:µhµ¦µÏ 2µHصHµ2ÿY®ŠHŠ:§Þµ§µZ¦µ§ŠÿµiµööLò i. g g g g DWDGULYHQLQQRYDWLRQLVVKLIWLQJODQGVFDSHVLQHYHU\VHFWRUDQG5D\PRQG1JLVDWWKHIRUHIURQWRIWKLVKROGLQJWKHEDWRQRIDFDGHPLFH[FHOOHQFHDQGUHDOZRUOGLPSDFW%HLQJDYHWHUDQSURIHVVRURI&RPSXWHU6FLHQFHDWWKH8QLYHUVLW\RI%ULWLVK&ROXPELD5D\PRQGLVQRWMXVWDQHGXFDWRUæKHèVDYLVLRQDU\+LVMRXUQH\LVDVLOOXVWULRXVDVKLVFDUHHUVSDQQLQJFRQWLQHQWVDQGGLVFLSOLQHVFXOPLQDWLQJLQKLVSLYRWDOUROHDVWKH'LUHFWRURIWKH'DWD6FLHQFH,QVWLWXWH '6, HVWDEOLVKHGLQZLWKLQ8%&èV)DFXOW\RI6FLHQFH5D\PRQGèVWDOHLVRQHRIUHOHQWOHVVGHGLFDWLRQDQGH[SHUWLVH+DYLQJHDUQHGKLVVWULSHVZLWKD%6F +RQV GHJUHHLQ&RPSXWHU6FLHQFHIURP8%&KHFRQWLQXHGKLVDFDGHPLFMRXUQH\REWDLQLQJDQ00DWKGHJUHHIURPWKH8QLYHUVLW\RI:DWHUORRDQGD3K'IURPWKH8QLYHUVLW\RI0DU\ODQG&ROOHJH3DUN+LVH[SHUWLVHH[WHQGVDFURVVGLYHUVHUHDOPVIURPGDWDPLQLQJWRKHDOWKLQIRUPDWLFVVHQVRUDQDO\WLFVDQGWH[WPLQLQJ)RUWKHSDVWGHFDGHKHèVGHOYHGLQWRWKHLQWULFDFLHVRIJHQRPLFVGDWDDQGWH[WGDWDSLRQHHULQJJURXQGEUHDNLQJUHVHDUFKDWWKHLQWHUVHFWLRQRIWHFKQRORJ\DQGKXPDQFRQYHUVDWLRQ1RZDVWKH'LUHFWRURIWKH8%&'DWD6FLHQFH,QVWLWXWH5D\PRQGèVOHDGHUVKLSDFXPHQVKLQHV7KH'6,LVDKXERILQQRYDWLRQæDVSDFHZKHUHLQWHUGLVFLSOLQDU\UHVHDUFKWHDPVFRQYHUJHDQGGDWDVFLHQWLVWVDUHQXUWXUHG,WèVPRUHWKDQDQLQLWLDWLYHLWèV5D\PRQGèVYLVLRQWKDWVKDSHVWKHLQVWLWXWH7KURXJKWKH'6,KHRSHQVGRRUVIRUSDUWQHUVHQDEOLQJWKHPWRDFFHVV8%&èVXQSDUDOOHOHGH[SHUWLVHZKLOHDOVRIDFLOLWDWLQJUHVHDUFKDQGGHYHORSPHQW/HWèVGHOYHLQWRDVWRU\WKDWLVQRWMXVWDERXWDFDGHPLFDFFRODGHVEXWPRUHDERXWIRVWHULQJFROODERUDWLRQVVKDSLQJIXWXUHVDQGOHYHUDJLQJWKHSRZHURIGDWDIRUWKHJUHDWHUJRRG'DWD'UHDPVDQG/HDGHUVKLS5HDOLWLHV5D\PRQGVKDUHVKLVUHPDUNDEOHMRXUQH\ZLWKDQXQZDYHULQJSDVVLRQIRUXQUDYHOLQJWKHP\VWHULHVKLGGHQZLWKLQGDWD+HUHPLQLVFHVê,DPDOZD\VIDVFLQDWHGE\GLIIHUHQWW\SHVRIGDWDDQGKRZWRDQDO\]HWKHGDWDë+LVFXULRVLW\OHGKLPIURPVWUXFWXUHGQXPHULFGDWDWRWKHFRPSOH[LWLHVRIXQVWUXFWXUHGLPDJLQJYLGHRDQGHYHQWXDOO\JHQRPLFVGDWDDQGIUHHIRUPWH[WGDWDDVZHOOZKHUHKHGHOYHGLQWR\HDUVRIJURXQGEUHDNLQJELRPHGLFDOUHVHDUFKVHFXULQJPLOOLRQVLQUHVHDUFKIXQGLQJ'HVSLWHKLVKLJKVFKRROOHYHOELRORJ\EDFNJURXQG5D\PRQGèVGHGLFDWLRQKDVVKDSHGWUDQVIRUPDWLYHJHQRPLFVSURMHFWV7ZRGHFDGHVDJRKHHPEUDFHGWKHUROHRI&KLHI,QIRUPDWLFV2IFHULQDQRQSURWRUJDQL]DWLRQFRPEDWLQJRUJDQIDLOXUHVê,ZDVSUDFWLFLQJGDWDVFLHQFHDQGOHDGLQJGDWDVFLHQFHWHDPVHYHQEHIRUHWKHWHUPçGDWDVFLHQFHèEHFDPHZHOONQRZQëKHVWDWHV$GHFDGHODWHUKHUHWXUQHGWRWKHXQLYHUVLW\DURXQGWKHFORFNDUPHGZLWKYDVWH[SHULHQFH$WWKDWSLYRWDOPRPHQWKHZDVWDVNHGWRFUHDWHDGDWDVFLHQFHLQVWLWXWH5D\PRQGèVOHDGHUVKLSVKLQHVWKURXJKDVKHJXLGHVRWKHUVOHYHUDJLQJKLVH[SHUWLVHWRDSSO\GDWDVFLHQFHDFURVVGLYHUVHGRPDLQV5D\PRQGèVVWRU\LVDQH[DPSOHWRWKHSRZHURIUHOHQWOHVVFXULRVLW\DQGWKHLPSDFWRIWUDQVIRUPDWLYHOHDGHUVKLSLQWKHZRUOGRIGDWDVFLHQFH&UXQFKLQJ1XPEHUV%XLOGLQJ)XWXUHV$WWKHKHDUWRIWKH)DFXOW\RI6FLHQFHOLHVWKH'DWD6FLHQFH,QVWLWXWH '6, DQLQVSLUDWLRQRILQQRYDWLRQDQGFROODERUDWLRQXQGHU5D\PRQGèVLQVLJKWIXOJXLGDQFH7KH'6,LVGHVLJQHGWRLQFXEDWHDQGDFFHOHUDWHUHVHDUFKLQQRYDWLRQDQGWUDLQLQJLQGDWDLQWHQVLYHVFLHQFHëKHHPSKDVL]HV:LWKDIHUYHQWGHGLFDWLRQWRIRVWHULQJLQWHUGLVFLSOLQDU\FROODERUDWLRQWKH'6,SLRQHHUVWKHZD\IRUZDUGLQGDWDVFLHQFHUHVHDUFKDGGUHVVLQJLQWULFDWHFKDOOHQJHVLQKHDOWKVFLHQFHDQGWKHDUWV5D\PRQGèVYLVLRQPDWHULDOL]HVDVWKH'6,EHFRPHVDWKULYLQJKXEXQLWLQJIDFXOWLHVDQGEUHDNLQJGRZQDFDGHPLFVLORVê7KH'6,SURYLGHVDFROODERUDWLRQKXEWRHQDEOHLQWHUIDFXOW\LQWHUDFWLRQVRQUHVHDUFKSUREOHPVLQYROYLQJODUJHDQGFRPSOH[GDWDVHWVëKHHODERUDWHV+HUHGLYHUVHPLQGVFRQYHUJHVSDUNLQJFUHDWLYH XiŠ:/2Š§HÞ§ÞЮŠHŠ:§Þµ§µŠ®öµŠ®ÞЮŠHŠ:§Þµ§µHµŠÿ:µhµ¦µÏ 2µHصHµ2ÿY®ŠHŠ:§Þµ§µZ¦µ§ŠÿµiµööLò i. g g g g VROXWLRQVWRPXOWLIDFHWHGLVVXHV1RWMXVWFRQQHGZLWKLQXQLYHUVLW\ZDOOVWKH'6,RSHQVLWVGRRUVWRH[WHUQDORUJDQL]DWLRQVRIIHULQJWKHPDFFHVVWR8%&èVULFKSRRORIH[SHUWLVHLQFRPSOH[GDWDDQDO\VLVDQGPRGHOLQJ%ULGJLQJ6LORV%UHDNLQJ%DUULHUV,QWKHUHDOPRILQWHUGLVFLSOLQDU\UHVHDUFKOHDGHUVKLSQGVLWVWUXHHVVHQFHWKURXJK5D\PRQGèVLQQRYDWLYHDSSURDFKê,QWHUGLVFLSOLQDU\SULQFLSDOLQYHVWLJDWRUVQHHGçEULGJLQJèSHUVRQVWRKHOSJOXHWKHWHDPëKHHPSKDVL]HVKLJKOLJKWLQJWKHFKDOOHQJHVLQPHUJLQJGLYHUVHHOGV2YHU\HDUVDJR5D\PRQGLQLWLDWHGDJURXQGEUHDNLQJHQGHDYRUæWKHSRVWGRFWRUDOPDWFKLQJIXQGSURJUDPDJUHDWH[DPSOHRIFROODERUDWLRQ3RVWGRFWRUDOIHOORZVDOUHDG\VNLOOHGUHVHDUFKHUVEHFRPHWKHOLQFKSLQVJXLGLQJWHDPVWKURXJKXQFKDUWHGWHUULWRULHV7KURXJKWKLVSURJUDPLQWHUGLVFLSOLQDU\WHDPVUHFHLYHYLWDOIXQGLQJWREULQJWKHVHIHOORZVDERDUGDOORZLQJWKHPWRH[SORUHXQFKDUWHGWHUULWRULHVIRUPRQWKV5D\PRQGèVSKLORVRSK\HFKRHVê,IWKHSLORWIDLOVQHZHWULHGDQGZHPRYHRQë7KLVIHDUOHVVH[SHULPHQWDWLRQIRVWHUVOHDUQLQJVWHHULQJWHDPVWRZDUGVUHQHGVXVWDLQDEOHSURMHFWV7KHSURJUDPèVVXFFHVVUHVRQDWHVLQLWVDELOLW\WRFXOWLYDWHUREXVWLQWHUGLVFLSOLQDU\FROODERUDWLRQVIDFLOLWDWLQJIXQGLQJLQWKHUHDOPRIGDWDVFLHQFH%H\RQGQDQFLDOVXSSRUWWKLVLQLWLDWLYHSLRQHHUVFDSDFLW\EXLOGLQJVKDSLQJWKHQH[WJHQHUDWLRQRIUHVHDUFKHUV,QWKHLQWHUVHFWLRQRIGDWDVFLHQFHDQGYLWDODSSOLFDWLRQGRPDLQVSRVWGRFWRUDOIHOORZVWKULYHXQGHU5D\PRQGèVJXLGDQFH+LVOHDGHUVKLSH[HPSOLHGWKURXJKWKLVSURJUDPQRWRQO\EULGJHVGLVFLSOLQHVEXWDOVRQXUWXUHVWKHOHDGHUVRIWRPRUURZLOOXVWUDWLQJWKHWUDQVIRUPDWLYHSRZHURIFROODERUDWLYHHQGHDYRUV7KH3DOHWWHRI3RVVLELOLWLHV5D\PRQGèVOHDGHUVKLSVKLQHVWKURXJKLQWKH3RVWGRFWRUDO0DWFKLQJ)XQG3URJUDPZKHUHLQQRYDWLRQNQRZVQRERXQGVê:HDUHVSRQVRULQJSURMHFWVLQGLYHUVHGRPDLQVëKHHQWKXVHVXQGHUVFRULQJWKHSURJUDPèVYDVWLPSDFW,QKHDOWKFDUHDQGELRPHGLFDOUHVHDUFKWKHLQLWLDWLYHGHOYHVLQWRPRQXPHQWDOWDVNVIURPLQWULFDWHFDQFHUPRGHOLQJDWVLQJOHFHOOUHVROXWLRQWRSLRQHHULQJWUHDWPHQWVIRUFRQGLWLRQVOLNH&23'DQGNLGQH\WUDQVSODQWDWLRQ$WWKHLQWHUVHFWLRQRIVFLHQFHDQGHQJLQHHULQJWKHSURJUDPSLRQHHUVEUHDNWKURXJKVIURPGHYHORSLQJUREXVWJHQRPHDQDO\VLVSODWIRUPVWRXQGHUVWDQGLQJPLQLQJèVLPSDFWRQHFRV\VWHPV7KHLQLWLDWLYHèVUHDFKHYHQH[WHQGVLQWRWKHDUWVDQGVRFLDOVFLHQFHVZKHUHLWH[SORUHVWKHFRPSOH[LWLHVRIGHYHORSPHQWDOSV\FKRORJ\DQGUHYROXWLRQL]HVRQOLQHHGXFDWLRQWKURXJKDGDSWLYHVXSSRUWV\VWHPV7KHVHHQGHDYRUVDV5D\PRQGVWDWHVDUHMXVWWKHWLSRIWKHLFHEHUJ7KHSURJUDPèVZHEVLWHLVDWUHDVXUHWURYHVKRZFDVLQJDSOHWKRUDRISURMHFWVVKDSLQJWKHIXWXUH7KURXJK5D\PRQGèVJXLGDQFHWKHSURJUDPGRHVQèWPHUHO\IXQGUHVHDUFKæLWIRVWHUVDVSLULWRIH[SORUDWLRQDQGFROODERUDWLRQLQVSLULQJOHDGHUVDFURVVGLVFLSOLQHVWRLQQRYDWHFROODERUDWHDQGVKDSHDEHWWHUWRPRUURZ&UHDWLQJ'DWD'\QDPRV,QDEROGVWULGHWRZDUGJOREDOFROODERUDWLRQ5D\PRQGKDVXQYHLOHGDJURXQGEUHDNLQJLQLWLDWLYHSURFODLPLQJ:HODXQFKHGDXQLTXHLQWHUQDWLRQDOSRVWGRFWRUDOH[FKDQJHSURJUDPë3DUWQHULQJZLWKWKH1DWLRQDO8QLYHUVLW\RI6LQJDSRUHèV,QVWLWXWHRI'DWD6FLHQFHWKLVSURJUDPWUDQVFHQGVERUGHUVRIIHULQJSRVWGRFWRUDOIHOORZVDQHQULFKLQJWZR\HDUMRXUQH\DFURVVFLWLHV7KLVYLVLRQDU\H[FKDQJHSURJUDPHPSKDVL]HVPRUHWKDQWHFKQLFDOSURZHVVæLWFHOHEUDWHVWKHGLYHUVLW\RIH[SHULHQFHV3RVWGRFWRUDOIHOORZVVSHQGD\HDULQRQHFLW\DQGDQRWKHULQDGLIIHUHQWFLW\EURDGHQLQJWKHLUKRUL]RQV7KHEHDXW\OLHVLQWKHH[LELOLW\æSURMHFWVQHHGQRWDOLJQSHUIHFWO\5D\PRQGHQYLVLRQVWKLVPRGHODVDEULGJHEHWZHHQQDWLRQVIRVWHULQJLQWHUQDWLRQDOSDUWQHUVKLSV+HDGGVê7KLVPRGHOFRXOGZRUNZHOOWRHQJDJHRWKHULQWHUQDWLRQDOSDUWQHUVDQGHQKDQFHWKHH[FKDQJHRISRVWGRFWRUDOIHOORZVEHWZHHQGLIIHUHQWUHJLRQVë ÀØÞ:ÿ ®µö§ Pö®i 2òiµööH µÐŠÐµ Hص2ÞHµ2ŠHÞ Šö/Š2Hµ2:Š®µØŠ§µHصµn§ØŠÐµ Ï/ :H® §H 2Šöϵöö i:¦µHiµµ®ÞÏϵ2µH2µÐÞ :. g g g g VROXWLRQVWRPXOWLIDFHWHGLVVXHV1RWMXVWFRQQHGZLWKLQXQLYHUVLW\ZDOOVWKH'6,RSHQVLWVGRRUVWRH[WHUQDORUJDQL]DWLRQVRIIHULQJWKHPDFFHVVWR8%&èVULFKSRRORIH[SHUWLVHLQFRPSOH[GDWDDQDO\VLVDQGPRGHOLQJ%ULGJLQJ6LORV%UHDNLQJ%DUULHUV,QWKHUHDOPRILQWHUGLVFLSOLQDU\UHVHDUFKOHDGHUVKLSQGVLWVWUXHHVVHQFHWKURXJK5D\PRQGèVLQQRYDWLYHDSSURDFKê,QWHUGLVFLSOLQDU\SULQFLSDOLQYHVWLJDWRUVQHHGçEULGJLQJèSHUVRQVWRKHOSJOXHWKHWHDPëKHHPSKDVL]HVKLJKOLJKWLQJWKHFKDOOHQJHVLQPHUJLQJGLYHUVHHOGV2YHU\HDUVDJR5D\PRQGLQLWLDWHGDJURXQGEUHDNLQJHQGHDYRUæWKHSRVWGRFWRUDOPDWFKLQJIXQGSURJUDPDJUHDWH[DPSOHRIFROODERUDWLRQ3RVWGRFWRUDOIHOORZVDOUHDG\VNLOOHGUHVHDUFKHUVEHFRPHWKHOLQFKSLQVJXLGLQJWHDPVWKURXJKXQFKDUWHGWHUULWRULHV7KURXJKWKLVSURJUDPLQWHUGLVFLSOLQDU\WHDPVUHFHLYHYLWDOIXQGLQJWREULQJWKHVHIHOORZVDERDUGDOORZLQJWKHPWRH[SORUHXQFKDUWHGWHUULWRULHVIRUPRQWKV5D\PRQGèVSKLORVRSK\HFKRHVê,IWKHSLORWIDLOVQHZHWULHGDQGZHPRYHRQë7KLVIHDUOHVVH[SHULPHQWDWLRQIRVWHUVOHDUQLQJVWHHULQJWHDPVWRZDUGVUHQHGVXVWDLQDEOHSURMHFWV7KHSURJUDPèVVXFFHVVUHVRQDWHVLQLWVDELOLW\WRFXOWLYDWHUREXVWLQWHUGLVFLSOLQDU\FROODERUDWLRQVIDFLOLWDWLQJIXQGLQJLQWKHUHDOPRIGDWDVFLHQFH%H\RQGQDQFLDOVXSSRUWWKLVLQLWLDWLYHSLRQHHUVFDSDFLW\EXLOGLQJVKDSLQJWKHQH[WJHQHUDWLRQRIUHVHDUFKHUV,QWKHLQWHUVHFWLRQRIGDWDVFLHQFHDQGYLWDODSSOLFDWLRQGRPDLQVSRVWGRFWRUDOIHOORZVWKULYHXQGHU5D\PRQGèVJXLGDQFH+LVOHDGHUVKLSH[HPSOLHGWKURXJKWKLVSURJUDPQRWRQO\EULGJHVGLVFLSOLQHVEXWDOVRQXUWXUHVWKHOHDGHUVRIWRPRUURZLOOXVWUDWLQJWKHWUDQVIRUPDWLYHSRZHURIFROODERUDWLYHHQGHDYRUV7KH3DOHWWHRI3RVVLELOLWLHV5D\PRQGèVOHDGHUVKLSVKLQHVWKURXJKLQWKH3RVWGRFWRUDO0DWFKLQJ)XQG3URJUDPZKHUHLQQRYDWLRQNQRZVQRERXQGVê:HDUHVSRQVRULQJSURMHFWVLQGLYHUVHGRPDLQVëKHHQWKXVHVXQGHUVFRULQJWKHSURJUDPèVYDVWLPSDFW,QKHDOWKFDUHDQGELRPHGLFDOUHVHDUFKWKHLQLWLDWLYHGHOYHVLQWRPRQXPHQWDOWDVNVIURPLQWULFDWHFDQFHUPRGHOLQJDWVLQJOHFHOOUHVROXWLRQWRSLRQHHULQJWUHDWPHQWVIRUFRQGLWLRQVOLNH&23'DQGNLGQH\WUDQVSODQWDWLRQ$WWKHLQWHUVHFWLRQRIVFLHQFHDQGHQJLQHHULQJWKHSURJUDPSLRQHHUVEUHDNWKURXJKVIURPGHYHORSLQJUREXVWJHQRPHDQDO\VLVSODWIRUPVWRXQGHUVWDQGLQJPLQLQJèVLPSDFWRQHFRV\VWHPV7KHLQLWLDWLYHèVUHDFKHYHQH[WHQGVLQWRWKHDUWVDQGVRFLDOVFLHQFHVZKHUHLWH[SORUHVWKHFRPSOH[LWLHVRIGHYHORSPHQWDOSV\FKRORJ\DQGUHYROXWLRQL]HVRQOLQHHGXFDWLRQWKURXJKDGDSWLYHVXSSRUWV\VWHPV7KHVHHQGHDYRUVDV5D\PRQGVWDWHVDUHMXVWWKHWLSRIWKHLFHEHUJ7KHSURJUDPèVZHEVLWHLVDWUHDVXUHWURYHVKRZFDVLQJDSOHWKRUDRISURMHFWVVKDSLQJWKHIXWXUH7KURXJK5D\PRQGèVJXLGDQFHWKHSURJUDPGRHVQèWPHUHO\IXQGUHVHDUFKæLWIRVWHUVDVSLULWRIH[SORUDWLRQDQGFROODERUDWLRQLQVSLULQJOHDGHUVDFURVVGLVFLSOLQHVWRLQQRYDWHFROODERUDWHDQGVKDSHDEHWWHUWRPRUURZ&UHDWLQJ'DWD'\QDPRV,QDEROGVWULGHWRZDUGJOREDOFROODERUDWLRQ5D\PRQGKDVXQYHLOHGDJURXQGEUHDNLQJLQLWLDWLYHSURFODLPLQJ:HODXQFKHGDXQLTXHLQWHUQDWLRQDOSRVWGRFWRUDOH[FKDQJHSURJUDPë3DUWQHULQJZLWKWKH1DWLRQDO8QLYHUVLW\RI6LQJDSRUHèV,QVWLWXWHRI'DWD6FLHQFHWKLVSURJUDPWUDQVFHQGVERUGHUVRIIHULQJSRVWGRFWRUDOIHOORZVDQHQULFKLQJWZR\HDUMRXUQH\DFURVVFLWLHV7KLVYLVLRQDU\H[FKDQJHSURJUDPHPSKDVL]HVPRUHWKDQWHFKQLFDOSURZHVVæLWFHOHEUDWHVWKHGLYHUVLW\RIH[SHULHQFHV3RVWGRFWRUDOIHOORZVVSHQGD\HDULQRQHFLW\DQGDQRWKHULQDGLIIHUHQWFLW\EURDGHQLQJWKHLUKRUL]RQV7KHEHDXW\OLHVLQWKHH[LELOLW\æSURMHFWVQHHGQRWDOLJQSHUIHFWO\5D\PRQGHQYLVLRQVWKLVPRGHODVDEULGJHEHWZHHQQDWLRQVIRVWHULQJLQWHUQDWLRQDOSDUWQHUVKLSV+HDGGVê7KLVPRGHOFRXOGZRUNZHOOWRHQJDJHRWKHULQWHUQDWLRQDOSDUWQHUVDQGHQKDQFHWKHH[FKDQJHRISRVWGRFWRUDOIHOORZVEHWZHHQGLIIHUHQWUHJLRQVë ÀØÞ:ÿ ®µö§ Pö®i 2òiµööH µÐŠÐµ Hص2ÞHµ2ŠHÞ Šö/Š2Hµ2:Š®µØŠ§µHصµn§ØŠÐµ Ï/ :H® §H 2Šöϵöö i:¦µHiµµ®ÞÏϵ2µH2µÐÞ :. g g g g 3BZNPOE/H :LWKH\HVVHWRQWKHIXWXUHSODQVDUHDIRRWWRH[WHQGWKLVYHQWXUH5D\PRQGHQYLVLRQVFROODERUDWLRQVZLWKHVWHHPHGLQVWLWXWHVOLNHWKH%HUOLQ(LQVWHLQ&HQWUHIRU'LJLWDO)XWXUHLQ*HUPDQ\DQGRWKHUVLQWKH867KLVLQLWLDWLYHQRWRQO\WUDQVIRUPVSRVWGRFWRUDOWUDLQLQJEXWDOVRHPERGLHVDVSLULWRIJOREDOXQLW\XQGHU5D\PRQGèVYLVLRQDU\OHDGHUVKLS)URP'LJLWVWR'LVFRYHULHV5D\PRQGLVFRPPLWWHGWRLQQRYDWLRQDQGQXUWXULQJWKHQH[WJHQHUDWLRQRIOHDGHUVVKDSLQJWKHIXWXUHRIGDWDVFLHQFHê2XUSRVWGRFWRUDOPDWFKLQJIXQGSURJUDPIXHOVJURXQGEUHDNLQJSURMHFWVëKHDVVHUWV1RWDEO\'U-6/HJDUHèVJHQRPLFSODWIRUPERUQIURPWKLVLQLWLDWLYHXQUDYHOHGVXQRZHUHFRW\SLFGLIIHUHQFHVOHDGLQJWRD1DWXUHSXEOLFDWLRQLQæDWHVWDPHQWWRWKHSURJUDPèVLPSDFW:LWKLQWKH'6,GDWDVFLHQWLVWVDUHQRWPHUHO\FRQWULEXWRUVæWKH\DUHDUFKLWHFWVRIFKDQJH$QH[HPSODU\FROODERUDWLRQZLWKWKH%&&DQFHU5HJLVWU\LOOXVWUDWHVWKLVSRZHU)DFLQJDEDFNORJGLOHPPDWKH'6,WHDPDORQJVLGHUHJLVWU\H[SHUWVSLRQHHUHG1DWXUDO/DQJXDJH3URFHVVLQJ 1/3 WRROV5D\PRQGH[SODLQV:HFRGHVLJQHGVWDWHRIWKHDUW1/3WRROVXVLQJ/DUJH/DQJXDJH0RGHOVë7KLVLQQRYDWLYHDSSURDFKHQVXUHVDFFXUDWHLGHQWLFDWLRQRIUHSRUWDEOHFDQFHUVRXWVKLQLQJH[LVWLQJWRROV&UXFLDOO\WKH'6,WHDPHPSKDVL]HVKXPDQXQGHUVWDQGLQJLQWHUWZLQLQJWHFKQRORJ\ZLWKH[SHUWLVH5D\PRQGQRWHVê:HFUDIWHGDRZFKDUWPLUURULQJWKHKXPDQWXPRUUHJLVWUDUèVFODVVLFDWLRQSURFHVVë7KLVIXVLRQRI$,SUHFLVLRQDQGKXPDQLQVLJKWELUWKVDWRROWUXVWHGE\H[SHUWVDPSOLI\LQJLWVLPSDFW7KLVVXFFHVVVWRU\VKRZFDVHGLQDSLORWSURMHFWHFKRHVDFURVVRQJRLQJHQGHDYRUVIXQGHGE\VWDOZDUWVOLNHWKH%&3URYLQFLDO+HDOWK6HUYLFHV$XWKRULW\DQGWKH0LQLVWU\RI+HDOWK7KH'6,XQGHU5D\PRQGèVVWHZDUGVKLSQRWRQO\WUDQVIRUPVFDQFHUUHVHDUFKEXWDOVRSDYHVWKHZD\IRUDIXWXUHZKHUHGDWDVFLHQFHWUDQVFHQGVERXQGDULHVPDNLQJLPSDFWIXOVWULGHVLQKHDOWKFDUH:LVGRP'DWDDQG'UHDPV,QWKHZKLUOZLQGRIWKHVZLIWO\HYROYLQJGDWDVFLHQFHODQGVFDSH5D\PRQGOHDGVWKHFKDUJHZLWKDFOHDUYLVLRQê/HDUQLQJIURPWKHOLWHUDWXUHLVFULWLFDOëKHHPSKDVL]HVDQFKRULQJKLVWHDPèVDSSURDFKLQFRQWLQXRXVHGXFDWLRQ7RVWD\DKHDGWKH\FRQYHQHLQUHJXODUMRXUQDOFOXEVDQGUHVHDUFKGD\VGHOYLQJLQWRWKHODWHVWQGLQJVHQVXULQJWKHLUNQRZOHGJHUHPDLQVUD]RUVKDUSHWLWèVQRWMXVWLQWHUQDOOHDUQLQJWKDWSURSHOVWKHLUVXFFHVV5D\PRQGEHOLHYHVLQWKHSRZHURIFRQQHFWLRQV:HFRQQHFWZLWKDEURDGJURXSRISRWHQWLDOFROODERUDWRUVëKHVWDWHVKLJKOLJKWLQJWKHLPSRUWDQFHRIUHDFKLQJRXW%\XQGHUVWDQGLQJWKHXQLTXHFKDOOHQJHVIDFHGE\RWKHUVWKH\SDYHWKHZD\IRUFROODERUDWLYHWULXPSKV:HLGHQWLI\çZLQZLQèFROODERUDWLRQRSSRUWXQLWLHVWRZRUNWRJHWKHUëKHH[SODLQVIRVWHULQJSDUWQHUVKLSVWKDWEHQHWHYHU\RQHLQYROYHG7KLVDSSURDFKDKDUPRQLRXVEOHQGRIVHOILPSURYHPHQWDQGFROODERUDWLYHVSLULWHSLWRPL]HV5D\PRQGèVOHDGHUVKLSVW\OH,WèVQRWMXVWDERXWNHHSLQJXSæLWèVDERXWOHDGLQJWKHFKDQJH,QDZRUOGZKHUHNQRZOHGJHLVSRZHU5D\PRQGHQVXUHVKLVWHDPQRWRQO\NHHSVSDFHZLWKWKHIDVWFKDQJLQJHOGEXWVXUJHVDKHDGDUPHGZLWKLQVLJKWVFRQQHFWLRQVDQGDVKDUHGFRPPLWPHQWWRFRQTXHULQJWKHFKDOOHQJHVRIGDWDVFLHQFH'LYHUVH0LQGV&RPPRQ*RDOV1DYLJDWLQJWKHUDSLGFXUUHQWVRIFKDQJH5D\PRQGOHDGVZLWKDSURDFWLYHDSSURDFKê$SDUWIURPDVNLQJHYHU\ERG\LQYROYHGWREHXSGDWHGDERXWWKHOLWHUDWXUHëKHQRWHVVWUHVVLQJWKHLPSRUWDQFHRIFRQWLQXRXVOHDUQLQJ7KH8%&'6,DFWLYHO\FROODERUDWHVQRWDEO\ZLWKWKH$FDGHPLF'DWD6FLHQFH$OOLDQFHD86EDVHGQHWZRUN,WèVFUXFLDOWROHDUQIURPDQGZLWKHDFKRWKHUë5D\PRQGDIUPV,QWKLVEXVWOLQJHOGFROODERUDWLRQLVWKHFRUQHUVWRQHRIOHDGHUVKLS7KURXJKVKDUHGNQRZOHGJHDQGSDUWQHUVKLSV5D\PRQGHQVXUHVKLVWHDPQRWRQO\DGDSWVWRFKDQJHEXWWKULYHVLQLWVHWWLQJDG\QDPLFH[DPSOHIRUDOO7KH'DWD'LOHPPD5D\PRQGUHHFWVRQWKHFKDOOHQJHVRIRXUWLPHê7KHK\SHVXUURXQGLQJ$,&KDW*371/30DFKLQH/HDUQLQJDQGVRRQLWèVFDXVLQJPLVXQGHUVWDQGLQJVëKHDFNQRZOHGJHV$PLGVWWKLVK\SHKHGLVFHUQVDFULWLFDOMXQFWXUH6RPHRUJDQL]DWLRQVIHDUWKHXQNQRZQPLVVLQJRXWRQLQYDOXDEOHSURVSHFWV ªŠoÿ ®Z:öµŠ®µ2:ØÞ/:HŠ®: PHÞHصÞH2Þ§ŠHµi 2ö® Ï®ŠHŠ:§Þµ§µ)Ï §P:ÞÐ HïP:H Þ hŠHÞ ¦PHŠö:  :P:HŠÞŠ¦öµÞÿ/Š§H. g g g g 3BZNPOE/H :LWKH\HVVHWRQWKHIXWXUHSODQVDUHDIRRWWRH[WHQGWKLVYHQWXUH5D\PRQGHQYLVLRQVFROODERUDWLRQVZLWKHVWHHPHGLQVWLWXWHVOLNHWKH%HUOLQ(LQVWHLQ&HQWUHIRU'LJLWDO)XWXUHLQ*HUPDQ\DQGRWKHUVLQWKH867KLVLQLWLDWLYHQRWRQO\WUDQVIRUPVSRVWGRFWRUDOWUDLQLQJEXWDOVRHPERGLHVDVSLULWRIJOREDOXQLW\XQGHU5D\PRQGèVYLVLRQDU\OHDGHUVKLS)URP'LJLWVWR'LVFRYHULHV5D\PRQGLVFRPPLWWHGWRLQQRYDWLRQDQGQXUWXULQJWKHQH[WJHQHUDWLRQRIOHDGHUVVKDSLQJWKHIXWXUHRIGDWDVFLHQFHê2XUSRVWGRFWRUDOPDWFKLQJIXQGSURJUDPIXHOVJURXQGEUHDNLQJSURMHFWVëKHDVVHUWV1RWDEO\'U-6/HJDUHèVJHQRPLFSODWIRUPERUQIURPWKLVLQLWLDWLYHXQUDYHOHGVXQRZHUHFRW\SLFGLIIHUHQFHVOHDGLQJWRD1DWXUHSXEOLFDWLRQLQæDWHVWDPHQWWRWKHSURJUDPèVLPSDFW:LWKLQWKH'6,GDWDVFLHQWLVWVDUHQRWPHUHO\FRQWULEXWRUVæWKH\DUHDUFKLWHFWVRIFKDQJH$QH[HPSODU\FROODERUDWLRQZLWKWKH%&&DQFHU5HJLVWU\LOOXVWUDWHVWKLVSRZHU)DFLQJDEDFNORJGLOHPPDWKH'6,WHDPDORQJVLGHUHJLVWU\H[SHUWVSLRQHHUHG1DWXUDO/DQJXDJH3URFHVVLQJ 1/3 WRROV5D\PRQGH[SODLQV:HFRGHVLJQHGVWDWHRIWKHDUW1/3WRROVXVLQJ/DUJH/DQJXDJH0RGHOVë7KLVLQQRYDWLYHDSSURDFKHQVXUHVDFFXUDWHLGHQWLFDWLRQRIUHSRUWDEOHFDQFHUVRXWVKLQLQJH[LVWLQJWRROV&UXFLDOO\WKH'6,WHDPHPSKDVL]HVKXPDQXQGHUVWDQGLQJLQWHUWZLQLQJWHFKQRORJ\ZLWKH[SHUWLVH5D\PRQGQRWHVê:HFUDIWHGDRZFKDUWPLUURULQJWKHKXPDQWXPRUUHJLVWUDUèVFODVVLFDWLRQSURFHVVë7KLVIXVLRQRI$,SUHFLVLRQDQGKXPDQLQVLJKWELUWKVDWRROWUXVWHGE\H[SHUWVDPSOLI\LQJLWVLPSDFW7KLVVXFFHVVVWRU\VKRZFDVHGLQDSLORWSURMHFWHFKRHVDFURVVRQJRLQJHQGHDYRUVIXQGHGE\VWDOZDUWVOLNHWKH%&3URYLQFLDO+HDOWK6HUYLFHV$XWKRULW\DQGWKH0LQLVWU\RI+HDOWK7KH'6,XQGHU5D\PRQGèVVWHZDUGVKLSQRWRQO\WUDQVIRUPVFDQFHUUHVHDUFKEXWDOVRSDYHVWKHZD\IRUDIXWXUHZKHUHGDWDVFLHQFHWUDQVFHQGVERXQGDULHVPDNLQJLPSDFWIXOVWULGHVLQKHDOWKFDUH:LVGRP'DWDDQG'UHDPV,QWKHZKLUOZLQGRIWKHVZLIWO\HYROYLQJGDWDVFLHQFHODQGVFDSH5D\PRQGOHDGVWKHFKDUJHZLWKDFOHDUYLVLRQê/HDUQLQJIURPWKHOLWHUDWXUHLVFULWLFDOëKHHPSKDVL]HVDQFKRULQJKLVWHDPèVDSSURDFKLQFRQWLQXRXVHGXFDWLRQ7RVWD\DKHDGWKH\FRQYHQHLQUHJXODUMRXUQDOFOXEVDQGUHVHDUFKGD\VGHOYLQJLQWRWKHODWHVWQGLQJVHQVXULQJWKHLUNQRZOHGJHUHPDLQVUD]RUVKDUSHWLWèVQRWMXVWLQWHUQDOOHDUQLQJWKDWSURSHOVWKHLUVXFFHVV5D\PRQGEHOLHYHVLQWKHSRZHURIFRQQHFWLRQV:HFRQQHFWZLWKDEURDGJURXSRISRWHQWLDOFROODERUDWRUVëKHVWDWHVKLJKOLJKWLQJWKHLPSRUWDQFHRIUHDFKLQJRXW%\XQGHUVWDQGLQJWKHXQLTXHFKDOOHQJHVIDFHGE\RWKHUVWKH\SDYHWKHZD\IRUFROODERUDWLYHWULXPSKV:HLGHQWLI\çZLQZLQèFROODERUDWLRQRSSRUWXQLWLHVWRZRUNWRJHWKHUëKHH[SODLQVIRVWHULQJSDUWQHUVKLSVWKDWEHQHWHYHU\RQHLQYROYHG7KLVDSSURDFKDKDUPRQLRXVEOHQGRIVHOILPSURYHPHQWDQGFROODERUDWLYHVSLULWHSLWRPL]HV5D\PRQGèVOHDGHUVKLSVW\OH,WèVQRWMXVWDERXWNHHSLQJXSæLWèVDERXWOHDGLQJWKHFKDQJH,QDZRUOGZKHUHNQRZOHGJHLVSRZHU5D\PRQGHQVXUHVKLVWHDPQRWRQO\NHHSVSDFHZLWKWKHIDVWFKDQJLQJHOGEXWVXUJHVDKHDGDUPHGZLWKLQVLJKWVFRQQHFWLRQVDQGDVKDUHGFRPPLWPHQWWRFRQTXHULQJWKHFKDOOHQJHVRIGDWDVFLHQFH'LYHUVH0LQGV&RPPRQ*RDOV1DYLJDWLQJWKHUDSLGFXUUHQWVRIFKDQJH5D\PRQGOHDGVZLWKDSURDFWLYHDSSURDFKê$SDUWIURPDVNLQJHYHU\ERG\LQYROYHGWREHXSGDWHGDERXWWKHOLWHUDWXUHëKHQRWHVVWUHVVLQJWKHLPSRUWDQFHRIFRQWLQXRXVOHDUQLQJ7KH8%&'6,DFWLYHO\FROODERUDWHVQRWDEO\ZLWKWKH$FDGHPLF'DWD6FLHQFH$OOLDQFHD86EDVHGQHWZRUN,WèVFUXFLDOWROHDUQIURPDQGZLWKHDFKRWKHUë5D\PRQGDIUPV,QWKLVEXVWOLQJHOGFROODERUDWLRQLVWKHFRUQHUVWRQHRIOHDGHUVKLS7KURXJKVKDUHGNQRZOHGJHDQGSDUWQHUVKLSV5D\PRQGHQVXUHVKLVWHDPQRWRQO\DGDSWVWRFKDQJHEXWWKULYHVLQLWVHWWLQJDG\QDPLFH[DPSOHIRUDOO7KH'DWD'LOHPPD5D\PRQGUHHFWVRQWKHFKDOOHQJHVRIRXUWLPHê7KHK\SHVXUURXQGLQJ$,&KDW*371/30DFKLQH/HDUQLQJDQGVRRQLWèVFDXVLQJPLVXQGHUVWDQGLQJVëKHDFNQRZOHGJHV$PLGVWWKLVK\SHKHGLVFHUQVDFULWLFDOMXQFWXUH6RPHRUJDQL]DWLRQVIHDUWKHXQNQRZQPLVVLQJRXWRQLQYDOXDEOHSURVSHFWV ªŠoÿ ®Z:öµŠ®µ2:ØÞ/:HŠ®: PHÞHصÞH2Þ§ŠHµi 2ö® Ï®ŠHŠ:§Þµ§µ)Ï §P:ÞÐ HïP:H Þ hŠHÞ ¦PHŠö:  :P:HŠÞŠ¦öµÞÿ/Š§H. g g g g 2WKHUVGULYHQE\KDVWHZLHOGWKHVHWHFKQRORJLHVLUUHVSRQVLEO\5D\PRQGèVLQVLJKWLOOXPLQDWHVWKHSDWKIRUZDUGæDEDODQFHGHWKLFDODSSURDFK+LVOHDGHUVKLSFDOOVIRUFDUHIXOQDYLJDWLRQHQVXULQJWKDWDPLGVWWKHEX]]RSSRUWXQLWLHVSUHYDLOZKLOHULVNVDUHPHWLFXORXVO\PLWLJDWHG1XPEHUV6SHDN/RXGHU)RFXVLQJRQKHDOWKFDUH5D\PRQGèVOHDGHUVKLSVKLQHVEULJKWO\LOOXPLQDWLQJDSDWKWRZDUGLQQRYDWLRQDQGFRPSDVVLRQê1/3FDQEHDSSOLHGVXFFHVVIXOO\WRSDWKRORJ\UHSRUWVëKHDVVHUWVDFNQRZOHGJLQJWKHWUDQVIRUPDWLYHSRWHQWLDORIWHFKQRORJ\%XWKLVYLVLRQH[WHQGVIDUEH\RQGFOLQLFDOGRFXPHQWVæLWHQFRPSDVVHVWKHKROLVWLFZHOOEHLQJRISDWLHQWV5D\PRQGèVWHDPLVSLRQHHULQJDJURXQGEUHDNLQJSURMHFWVSDQQLQJRYHU\HDUVRIFOLQLFDOUHSRUWVWRSUHGLFWFDQFHUUHODSVHDVWKHLUFRPPLWPHQWWRSDWLHQWFDUHHWWKH\GRQèWVWRSDWFOLQLFDOGRFXPHQWVæWKH\GHOYHLQWRWKHZRUOGRIXVHUJHQHUDWHGFRQWHQW3DWLHQWVIDPLOLHVDQGFDUHJLYHUVFUHDWHDELJSRRORILQIRUPDWLRQê+RZGRWKH\IHHO":KDWLQIRUPDWLRQGRWKH\QHHG"ë5D\PRQGDVNVUHFRJQL]LQJWKHLPSRUWDQFHRIXQGHUVWDQGLQJSDWLHQWVRQDSHUVRQDOOHYHO7KLVHPSDWKHWLFDSSURDFKH[WHQGVWRWULDJLQJFDOOHUVVHHNLQJHPHUJHQF\FDUH5D\PRQGèVWHDPLVGHYHORSLQJWRROVWRJXLGHLQGLYLGXDOVEULGJLQJWKHJDSEHWZHHQKRPHFDUHDQGFURZGHGHPHUJHQF\URRPVê$QHIIHFWLYHWULDJLQJV\VWHPLVFULWLFDOëKHHPSKDVL]HVDZDUHRIWKHLPPHQVHLPSDFWRQSDWLHQWVèOLYHV+RZHYHU5D\PRQGUHFRJQL]HVWKHJUDYLW\RIWKLVHQGHDYRUê%H\RQGWHFKQRORJLHVWKHUHDUHHWKLFDOFXOWXUDODQGVRFLHWDOLPSOLFDWLRQVëKHDFNQRZOHGJHV,WèVQRWMXVWDERXWLQQRYDWLRQæLWèVDERXWUHVSRQVLEOHLQFOXVLYHOHDGHUVKLS5D\PRQGFKDPSLRQVFROODERUDWLRQDQGFRGHVLJQLQJVROXWLRQVWKDWUHVRQDWHZLWKDOOVWDNHKROGHUV)URP7KHRU\WR3UDFWLFH5D\PRQGèVOHDGHUVKLSVWDQGVRXWLQWKHLQWULFDWHZRUOGRIGDWDVFLHQFHIRFXVLQJQRWMXVWRQLQQRYDWLRQEXWDOVRRQVXVWDLQDEOHLPSDFWê:HGHYHORSWRROVEXLOGPRGHOVDQGJHQHUDWHLQVLJKWVëKHHPSKDVL]HVKLJKOLJKWLQJWKHLUPXOWLIDFHWHGDSSURDFK%H\RQGWKHUHDOPRIW\SLFDONQRZOHGJHWUDQVIHUFUHDWLQJDXQLTXHFRPELQDWLRQRIVXSSRUWZKLFKHQVXUHVWRROVQGDODVWLQJKRPHLQRUJDQL]DWLRQV7DNHWKH%&&DQFHU5HJLVWU\SDUWQHUVKLSIRULQVWDQFH5D\PRQGèVWHDPGRHVQèWMXVWGHOLYHUWRROVæWKH\QXUWXUHLQWHJUDWLRQê:HSURYLGHDGYLFHRQHPEHGGLQJQHZWRROVëKHH[SODLQV,WèVDERXWPRUHWKDQWHFKQRORJ\æLWèVDERXWHPSRZHULQJRUJDQL]DWLRQV,QDUHPDUNDEOHWXUQD'6,GDWDVFLHQWLVWEHFDPHDQLQWHJUDOSDUWRIWKHUHJLVWU\H[HPSOLI\LQJWKHLPSRUWDQFHRIEXLOGLQJKXPDQFDSDFLW\5D\PRQGèVSKLORVRSK\HFKRHVê%XLOGLQJKXPDQFDSDFLW\LVDOPRVWDVLPSRUWDQWDVEXLOGLQJWRROVë+LVOHDGHUVKLSLVEULGJLQJWKHJDSEHWZHHQWHFKQRORJ\DQGLWVKXPDQLPSDFW%\QRWRQO\FUHDWLQJLQQRYDWLRQVEXWDOVRIRVWHULQJWKHVNLOOVDQGNQRZOHGJHWRVXVWDLQWKHP5D\PRQGHQVXUHVWKDWWKHLUZRUNGRHVQèWMXVWVWD\LQWKHODEæLWEHFRPHVDFDWDO\VWIRUHQGXULQJFKDQJHHQULFKLQJRUJDQL]DWLRQVDQGOLYHV7KH*XLGLQJ6WDUV5D\PRQGèVZLVGRPWUDQVFHQGVWHFKQLFDOLWLHVGHOYLQJGHHSLQWRHWKLFVDQGUHVSRQVLELOLW\ê2XUWUDLQLQJHTXLSVWKHPZLWKVNLOOVWKDWKDYHSRWHQWLDOO\SRZHUIXOLPSOLFDWLRQVëKHHPSKDVL]HVUHFRJQL]LQJWKHPDJQLWXGHRIWKHLUNQRZOHGJH$VDOHDGHUKHLPSDUWVDFUXFLDOOHVVRQæHWKLFDOFRQVFLRXVQHVV-XVWOLNHWHDFKLQJVRPHRQHWRGULYHDSRZHUIXOFDUKHJXLGHVWKHPWRRSHUDWHWKHLUVNLOOVUHVSRQVLEO\+LVDQDORJ\UHVRQDWHVê,WHDFKWKHPKRZWRGULYHDXVHIXODQGSRZHUIXOFDUë5D\PRQGLQVWLOOVWKHVLJQLFDQFHRISXEOLFVDIHW\XUJLQJKLVVWXGHQWVQRWWRPHWDSKRULFDOO\GULQNDQGGULYHèLQWKHGDWDZRUOG7KLVHWKLFDOFRPSDVVWKUHDGVWKURXJKWKHLUHGXFDWLRQVKDSLQJWKHPQRWMXVWDVVNLOOHGSURIHVVLRQDOVEXWDVUHVSRQVLEOHVWHZDUGVRINQRZOHGJH5D\PRQGèVYLVLRQPDQLIHVWVYLYLGO\LQWKH'6,èVDFFODLPHGSURJUDPç'DWD6FLHQFHIRU6RFLDO*RRGè,WèVDERXWKDUQHVVLQJWKHLUVNLOOVIRUVRFLHWDOEHQHW8QGHUKLVJXLGDQFHVWXGHQWVOHDUQQRWMXVWWRQDYLJDWHWKHGDWDODQGVFDSHEXWDOVRWRGRVRZLWKLQWHJULW\HQVXULQJWKHLUNQRZOHGJHLVDIRUFHIRUJRRGPDNLQJWKHZRUOGDEHWWHUSODFHRQHUHVSRQVLEOHGDWDVFLHQWLVWDWDWLPH 2WKHUVGULYHQE\KDVWHZLHOGWKHVHWHFKQRORJLHVLUUHVSRQVLEO\5D\PRQGèVLQVLJKWLOOXPLQDWHVWKHSDWKIRUZDUGæDEDODQFHGHWKLFDODSSURDFK+LVOHDGHUVKLSFDOOVIRUFDUHIXOQDYLJDWLRQHQVXULQJWKDWDPLGVWWKHEX]]RSSRUWXQLWLHVSUHYDLOZKLOHULVNVDUHPHWLFXORXVO\PLWLJDWHG1XPEHUV6SHDN/RXGHU)RFXVLQJRQKHDOWKFDUH5D\PRQGèVOHDGHUVKLSVKLQHVEULJKWO\LOOXPLQDWLQJDSDWKWRZDUGLQQRYDWLRQDQGFRPSDVVLRQê1/3FDQEHDSSOLHGVXFFHVVIXOO\WRSDWKRORJ\UHSRUWVëKHDVVHUWVDFNQRZOHGJLQJWKHWUDQVIRUPDWLYHSRWHQWLDORIWHFKQRORJ\%XWKLVYLVLRQH[WHQGVIDUEH\RQGFOLQLFDOGRFXPHQWVæLWHQFRPSDVVHVWKHKROLVWLFZHOOEHLQJRISDWLHQWV5D\PRQGèVWHDPLVSLRQHHULQJDJURXQGEUHDNLQJSURMHFWVSDQQLQJRYHU\HDUVRIFOLQLFDOUHSRUWVWRSUHGLFWFDQFHUUHODSVHDVWKHLUFRPPLWPHQWWRSDWLHQWFDUHHWWKH\GRQèWVWRSDWFOLQLFDOGRFXPHQWVæWKH\GHOYHLQWRWKHZRUOGRIXVHUJHQHUDWHGFRQWHQW3DWLHQWVIDPLOLHVDQGFDUHJLYHUVFUHDWHDELJSRRORILQIRUPDWLRQê+RZGRWKH\IHHO":KDWLQIRUPDWLRQGRWKH\QHHG"ë5D\PRQGDVNVUHFRJQL]LQJWKHLPSRUWDQFHRIXQGHUVWDQGLQJSDWLHQWVRQDSHUVRQDOOHYHO7KLVHPSDWKHWLFDSSURDFKH[WHQGVWRWULDJLQJFDOOHUVVHHNLQJHPHUJHQF\FDUH5D\PRQGèVWHDPLVGHYHORSLQJWRROVWRJXLGHLQGLYLGXDOVEULGJLQJWKHJDSEHWZHHQKRPHFDUHDQGFURZGHGHPHUJHQF\URRPVê$QHIIHFWLYHWULDJLQJV\VWHPLVFULWLFDOëKHHPSKDVL]HVDZDUHRIWKHLPPHQVHLPSDFWRQSDWLHQWVèOLYHV+RZHYHU5D\PRQGUHFRJQL]HVWKHJUDYLW\RIWKLVHQGHDYRUê%H\RQGWHFKQRORJLHVWKHUHDUHHWKLFDOFXOWXUDODQGVRFLHWDOLPSOLFDWLRQVëKHDFNQRZOHGJHV,WèVQRWMXVWDERXWLQQRYDWLRQæLWèVDERXWUHVSRQVLEOHLQFOXVLYHOHDGHUVKLS5D\PRQGFKDPSLRQVFROODERUDWLRQDQGFRGHVLJQLQJVROXWLRQVWKDWUHVRQDWHZLWKDOOVWDNHKROGHUV)URP7KHRU\WR3UDFWLFH5D\PRQGèVOHDGHUVKLSVWDQGVRXWLQWKHLQWULFDWHZRUOGRIGDWDVFLHQFHIRFXVLQJQRWMXVWRQLQQRYDWLRQEXWDOVRRQVXVWDLQDEOHLPSDFWê:HGHYHORSWRROVEXLOGPRGHOVDQGJHQHUDWHLQVLJKWVëKHHPSKDVL]HVKLJKOLJKWLQJWKHLUPXOWLIDFHWHGDSSURDFK%H\RQGWKHUHDOPRIW\SLFDONQRZOHGJHWUDQVIHUFUHDWLQJDXQLTXHFRPELQDWLRQRIVXSSRUWZKLFKHQVXUHVWRROVQGDODVWLQJKRPHLQRUJDQL]DWLRQV7DNHWKH%&&DQFHU5HJLVWU\SDUWQHUVKLSIRULQVWDQFH5D\PRQGèVWHDPGRHVQèWMXVWGHOLYHUWRROVæWKH\QXUWXUHLQWHJUDWLRQê:HSURYLGHDGYLFHRQHPEHGGLQJQHZWRROVëKHH[SODLQV,WèVDERXWPRUHWKDQWHFKQRORJ\æLWèVDERXWHPSRZHULQJRUJDQL]DWLRQV,QDUHPDUNDEOHWXUQD'6,GDWDVFLHQWLVWEHFDPHDQLQWHJUDOSDUWRIWKHUHJLVWU\H[HPSOLI\LQJWKHLPSRUWDQFHRIEXLOGLQJKXPDQFDSDFLW\5D\PRQGèVSKLORVRSK\HFKRHVê%XLOGLQJKXPDQFDSDFLW\LVDOPRVWDVLPSRUWDQWDVEXLOGLQJWRROVë+LVOHDGHUVKLSLVEULGJLQJWKHJDSEHWZHHQWHFKQRORJ\DQGLWVKXPDQLPSDFW%\QRWRQO\FUHDWLQJLQQRYDWLRQVEXWDOVRIRVWHULQJWKHVNLOOVDQGNQRZOHGJHWRVXVWDLQWKHP5D\PRQGHQVXUHVWKDWWKHLUZRUNGRHVQèWMXVWVWD\LQWKHODEæLWEHFRPHVDFDWDO\VWIRUHQGXULQJFKDQJHHQULFKLQJRUJDQL]DWLRQVDQGOLYHV7KH*XLGLQJ6WDUV5D\PRQGèVZLVGRPWUDQVFHQGVWHFKQLFDOLWLHVGHOYLQJGHHSLQWRHWKLFVDQGUHVSRQVLELOLW\ê2XUWUDLQLQJHTXLSVWKHPZLWKVNLOOVWKDWKDYHSRWHQWLDOO\SRZHUIXOLPSOLFDWLRQVëKHHPSKDVL]HVUHFRJQL]LQJWKHPDJQLWXGHRIWKHLUNQRZOHGJH$VDOHDGHUKHLPSDUWVDFUXFLDOOHVVRQæHWKLFDOFRQVFLRXVQHVV-XVWOLNHWHDFKLQJVRPHRQHWRGULYHDSRZHUIXOFDUKHJXLGHVWKHPWRRSHUDWHWKHLUVNLOOVUHVSRQVLEO\+LVDQDORJ\UHVRQDWHVê,WHDFKWKHPKRZWRGULYHDXVHIXODQGSRZHUIXOFDUë5D\PRQGLQVWLOOVWKHVLJQLFDQFHRISXEOLFVDIHW\XUJLQJKLVVWXGHQWVQRWWRPHWDSKRULFDOO\GULQNDQGGULYHèLQWKHGDWDZRUOG7KLVHWKLFDOFRPSDVVWKUHDGVWKURXJKWKHLUHGXFDWLRQVKDSLQJWKHPQRWMXVWDVVNLOOHGSURIHVVLRQDOVEXWDVUHVSRQVLEOHVWHZDUGVRINQRZOHGJH5D\PRQGèVYLVLRQPDQLIHVWVYLYLGO\LQWKH'6,èVDFFODLPHGSURJUDPç'DWD6FLHQFHIRU6RFLDO*RRGè,WèVDERXWKDUQHVVLQJWKHLUVNLOOVIRUVRFLHWDOEHQHW8QGHUKLVJXLGDQFHVWXGHQWVOHDUQQRWMXVWWRQDYLJDWHWKHGDWDODQGVFDSHEXWDOVRWRGRVRZLWKLQWHJULW\HQVXULQJWKHLUNQRZOHGJHLVDIRUFHIRUJRRGPDNLQJWKHZRUOGDEHWWHUSODFHRQHUHVSRQVLEOHGDWDVFLHQWLVWDWDWLPH Ÿ¬á¾BŸŸEFFSáF ¥ Ÿ]&NÿFŸEFFSáF ¥ Ÿ]&NÿFŸEFFSáF ¥ Ÿ]&NÿŸEFFSá ¥ ¶»ÂÂƸÂÈÅÆȵƶżÃǼÂÁt|“„‰ƒ€†‰Š’‰ „SÖF×BÖáŸN&Ÿ EdWddT h€djpmppln|‚|”„‰€„‰‹„‰|‰„‚„|‡Š‰’’’ ~„Š‡ŠŠ† ~Šˆ 4VCTDSJCF 4VCTDSJCF 'RQÍWZRUU\DERXWIDLOXUH\RXRQO\KDYHWREHULJKWRQFH\r$" ! Ÿ¬á¾BŸŸEFFSáF ¥ Ÿ]&NÿFŸEFFSáF ¥ Ÿ]&NÿFŸEFFSáF ¥ Ÿ]&NÿŸEFFSá ¥ ¶»ÂÂƸÂÈÅÆȵƶżÃǼÂÁt|“„‰ƒ€†‰Š’‰ „SÖF×BÖáŸN&Ÿ EdWddT h€djpmppln|‚|”„‰€„‰‹„‰|‰„‚„|‡Š‰’’’ ~„Š‡ŠŠ† ~Šˆ 4VCTDSJCF 4VCTDSJCF 'RQÍWZRUU\DERXWIDLOXUH\RXRQO\KDYHWREHULJKWRQFH\r$" ! )PX5FDIOPMPHZJT)RLERGMRKXLI'VOEBNFOUBMTPG&YWMRIWWIW#/RS[,S[QWKHPRGHUQZRUOGWHFKQRORJ\LVXELTXLWRXVDQGDQLQWHJUDOSDUWRIRXUGDLO\OLYHV,WKDVSHUPHDWHGHYHU\DVSHFWRIVRFLHW\LQFOXGLQJWKHZD\EXVLQHVVHVRSHUDWH)URPVPDOOVWDUWXSVWRPXOWLQDWLRQDOFRUSRUDWLRQVWHFKQRORJ\KDVUHYROXWLRQL]HGKRZFRPSDQLHVFRQGXFWWKHLURSHUDWLRQVLQWHUDFWZLWKFXVWRPHUVDQGPDNHGHFLVLRQV,QWKLVDUWLFOHZHZLOOH[SORUHKRZWHFKQRORJ\LVHQKDQFLQJWKHIXQGDPHQWDOVRIEXVLQHVVHVDQGKRZLWLVVKDSLQJWKHIXWXUHRIFRPPHUFH'LJLWDO7UDQVIRUPDWLRQ'LJLWDOWUDQVIRUPDWLRQLVWKHSURFHVVE\ZKLFKEXVLQHVVHVOHYHUDJHWHFKQRORJ\WRUHVKDSHWKHLURSHUDWLRQVDQGVHUYLFHV,WLQYROYHVLQWHJUDWLQJGLJLWDOWHFKQRORJLHVLQWRDOODVSHFWVRIDEXVLQHVVIXQGDPHQWDOO\FKDQJLQJKRZLWRSHUDWHVDQGGHOLYHUVYDOXHWRFXVWRPHUV7KLVWUDQVIRUPDWLRQKDVEHFRPHDFULWLFDOQHFHVVLW\IRUFRPSDQLHVWRUHPDLQFRPSHWLWLYHDQGUHOHYDQWLQWRGD\\n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n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n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zŠ«‹½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n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zŠ«‹½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nVHVVHQWLDOWRFRQVLGHUWKHHWKLFDODVSHFWV$VZHOHYHUDJH$,\nVFDSDELOLWLHVZHPXVWDOVRDGGUHVVLVVXHVOLNHELDVLQDOJRULWKPVGDWDSULYDF\DQGWKHSRWHQWLDOIRUMREGLVSODFHPHQW,W\n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n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nVHVVHQWLDOWRFRQVLGHUWKHHWKLFDODVSHFWV$VZHOHYHUDJH$,\nVFDSDELOLWLHVZHPXVWDOVRDGGUHVVLVVXHVOLNHELDVLQDOJRULWKPVGDWDSULYDF\DQGWKHSRWHQWLDOIRUMREGLVSODFHPHQW,W\n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n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êêê¡ÖÜâßââÞ¡Öâà êêê¡ÖÜâßââÞ¡Öâà