texto_tarea4

Vista previa del material en texto

9-201-053
R E V : F E B R U A R Y 1 5 , 2 0 0 7 
 
________________________________________________________________________________________________________________ 
 
Professor Luis Viceira prepared this case. HBS cases are developed solely as the basis for class discussion. Cases are not intended to serve as 
endorsements, sources of primary data, or illustrations of effective or ineffective management. 
 
Copyright © 2000 President and Fellows of Harvard College. To order copies or request permission to reproduce materials, call 1-800-545-7685, 
write Harvard Business School Publishing, Boston, MA 02163, or go to http://www.hbsp.harvard.edu. No part of this publication may be 
reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means—electronic, mechanical, 
photocopying, recording, or otherwise—without the permission of Harvard Business School. 
 
 
 
L U I S V I C E I R A 
The Harvard Management Company and Inflation–
Protected Bonds 
 
In late February 2000, Jack Meyer, the President and CEO of the Harvard Management Company 
(HMC), Inc., was finishing a draft of the changes to the Harvard Policy Portfolio for which the 
management of HMC would be seeking approval at the Board meeting in March. The Policy Portfolio 
determined the long-run asset allocation policy of the Harvard endowment among different asset 
classes. Changes in the Policy Portfolio were rare and, whenever they occurred, were usually modest 
in size. However, the management of HMC believed that some recent developments in the capital 
markets required some significant changes in the Policy Portfolio. If approved, these changes would 
sharply reduce the allocation to U.S. equities and U.S. nominal bonds, and lead to Harvard making a 
significant investment in the new U.S. Treasury Inflation-Protected Securities (TIPS). TIPS, which 
were absent from the portfolio only 12 months ago, would now represent 7% of the total portfolio. 
The Harvard Management Company 
The Harvard Management Company (HMC) had been established in 1974. It was a separately 
incorporated, not-for-profit entity, wholly owned by Harvard University. Its portfolio included much 
of the University’s endowment, pension assets, working capital, and certain other assets. In the 
second quarter of fiscal year 2000, it oversaw the management of more than $19 billion in total assets, 
including approximately $15.1 billion in endowment funds. Endowment income was an important 
source of income for the university. In fiscal year 1999, endowment income represented about 25% of 
the university total income, almost as much as tuition, which represented about 30% of income.1 The 
fraction of the university budget financed by endowment income had been steadily increasing in the 
last ten years. 
Like many other universities, Harvard pursued an active strategy to managing its endowment 
funds. However, unlike virtually all other universities, Harvard relied largely on internal 
management, provided by HMC, to achieve its investment goals. As of the end of fiscal year 1999, 
HMC managed 68% of endowment assets internally, and only 32% through outside asset managers. 
HMC had 180 employees, of whom 38 were investment professionals. 
 
1 The other main sources of income were gifts and grants. 
This document is authorized for use only in Jos? Tessada P.'s PRE-18 Finanzas II - 1 at Pontificia Universidad Catolica Chile (PUC-Chile) from Oct 2018 to Mar 2019.
201-053 The Harvard Management Company and Inflation–Protected Bonds 
2 
HMC’s investment strategy aimed at adding value by engaging professional investment managers 
who actively sought superior returns across a diverse array of asset classes relative to well-defined 
benchmarks. Over the last 10 years, this active strategy had produced a real (inflation adjusted)` 
return of 11.3% per year after expenses. Over the same period, U.S. Treasury bills had returned 2.2% 
per year in real terms, US Treasury bonds had returned 5.2% per year and U.S. equities (as measured 
by the S&P 500) had returned 15.8% per year. In fiscal year 1999, the expenses generated by this 
active strategy (including performance fees) had been $93.1 million, or about 49 basis points2 of total 
assets under management. This strategy involved greater costs than a passive, or “indexed” strategy 
aimed at tracking the returns on market indexes (about 20 basis points), but it was cheaper than a 
typical active investment strategy (100 basis points or more). 
Policy Portfolio 
The Policy Portfolio served two important purposes within the corporation. First, it determined 
the long-run allocation of the endowment to different asset classes. The Board of the corporation 
determined the Policy Portfolio, but the management was permitted to make short-run tactical 
allocation adjustments within minimum and maximum guidelines without prior consultation with 
the Board. Second, it was a benchmark the corporation used to evaluate the performance of the 
active investment strategies pursued by its managers. A significant fraction of the compensation 
received by HMC managers was based on performance. The Board set the performance benchmarks 
(usually a well-known market index) for each asset class. 
HMC considered 11 wide asset classes in the Policy Portfolio. These asset classes included 
categories familiar to most investors such as domestic equities or foreign bonds, plus an additional 
category known as “absolute return” asset class.3 Exhibit 1 shows the Policy Portfolio and the 
benchmark for each asset class in March 1999, before they considered investing in TIPS. 
The Policy Portfolio was designed to fulfill the growth goals of the endowment within a well-
diversified portfolio. Harvard’s long-term goal for the endowment was to distribute annually 
between 4% and 5% of the endowment to the schools within the university, while at the same time 
preserving the real value of the endowment and allowing for some real growth in the income 
distributions. Assuming that gifts to the endowment continued at their historical average rate of 1% 
of the endowment, achieving this preservation goal required an average real return on the 
endowment of at least 3% to 4% annually. But such a return would not allow for any long-term real 
growth in spending out of the endowment, and Harvard spending had been growing at 3% after 
inflation. A growth rate of 3% annually in real spending would require an investment real return goal 
between 6% and 7%. 
The Policy Portfolio was the result of careful consideration of the risk and return characteristics of 
each asset class. To determine the relevance of an asset class for the portfolio, HMC typically 
considered three asset return characteristics: expected future real returns, the volatility of real returns, 
and the correlation of the real return on each asset class with the real return on all other asset classes. 
To estimate these characteristics, HMC used historical data on real returns as well as the assessment 
of experts. Exhibit 2 shows twenty-year historical mean, standard deviation and correlation of real 
returns for the period 1989-1999. 
 
2 A basis point is 0.01%. That is, 100 basis points equal one percentage point. 
3 An absolute return investment targets a specific return, usually without making directional bets on the market. The “absolute 
return” strategy included mostly investments in market neutral hedge funds. The Board had decided to create a specific asset 
category for them because they usually follow strategies that involve simultaneous investments in a variety of markets, so that 
it is very difficult to classify them in a particular asset class. 
This document is authorized for use only in Jos? Tessada P.'s PRE-18 Finanzas II - 1 at Pontificia Universidad Catolica Chile (PUC-Chile) from Oct 2018 to Mar2019.
The Harvard Management Company and Inflation–Protected Bonds 201-053 
3 
To analyze the portfolio implications of these capital market assumptions, HMC used a 
quantitative portfolio technique known as mean-variance analysis. Mean-variance analysis 
determines the optimal allocation to different asset classes that minimizes portfolio return variance 
given an expected portfolio return. The analysis can also incorporate portfolio constraints that 
investors might face, such as minimum and maximum positions. The output of this analysis is a set of 
portfolios, known as “efficient frontier,” that gives the minimum-variance portfolio for each expected 
return. Investors can then choose their preferred portfolio according to their tolerance for risk. The 
portfolio allocations resulting from applying this analysis to the capital market assumptions were 
useful to shape the Policy Portfolio recommendations. 
The Policy Portfolio changed infrequently. Changes in the portfolio had to be approved by the 
Board. The Policy Portfolio changed only in response to (1) changes in the goals or risk tolerance of 
the university as an institution; (2) changes in capital market assumptions; (3) the appearance of a 
new asset class in the market. HMC believed that the issuance of inflation-protected bonds by the US 
Treasury in early 1997, and their performance during the last two years, suggested changes in the 
Policy Portfolio of the university based on (2) and (3). 
Inflation-Protected Bonds4 
U.S. Treasury Inflation-Protected Securities (TIPS) are bonds whose principal and coupons grow 
with the general level of prices as measured by the Consumer Price Index (CPI). These securities 
therefore give investors protection against the eroding effects of inflation on the value of money. 
TIPS were first offered by the U.S. Treasury in January 1997. The first auction offered 10-year 
inflation-indexed notes. The size of the initial offering was approximately $7 billion. Exhibit 3 shows 
the ex-post real return on three-month U.S. Treasury bills (yield on T-bills at the beginning of the 
quarter minus change in the CPI over that quarter) as well as the actual real yields on TIPS between 
January 1997 and April 1999. The U.S. Treasury was not the first to offer inflation-protected bonds. 
Inflation-protected bonds had been issued in other countries for some time. Australia, Canada, Israel, 
the United Kingdom and Sweden had been issuing similar bonds for over a decade. 
Inflation-indexed notes are issued with maturities of at least one year but not more than ten years. 
Inflation-indexed bonds have maturities of more than ten years. These securities are auctioned by the 
U.S. Treasury in single-price auctions in terms of a real yield. 
TIPS’s structure requires the principal and coupon of the bond to change based on the monthly 
level of inflation as determined by the CPI. Specifically, the inflation-adjusted principal value of the 
securities on any date equals the product of the stated value at issuance, or par amount, times the 
index ratio applicable to that date. The index ratio is the reference CPI applicable to a particular 
valuation date divided by the reference CPI applicable to the original issue date.5 The adjustment to 
the principal is paid at maturity when the securities are redeemed at the greater of their inflation-
adjusted principal amount or par amount. The securities are issued with a stated rate of interest that 
remains constant until maturity. Interest (i.e., coupon) payments for a particular security are 
 
4 This section draws extensively on Harvard case 298-017, “Treasury Inflation-Protection Securities (TIPS),” written by 
Professor Sanjiv Das and Jeffrey Slovin. 
5 There is a two-month lag between the time when the CPI is announced and the date that the principal is increased. The TIPS 
inflation index uses the non-seasonally adjusted CPI (seasonal changes in price levels have been significant). TIPS have built in 
covenants to protect investors from a fundamental change in the methodology of computing the CPI. However, technical 
changes made by the BLS to the CPI to improve its accuracy as a measure of the cost of living are not considered fundamental 
changes. 
This document is authorized for use only in Jos? Tessada P.'s PRE-18 Finanzas II - 1 at Pontificia Universidad Catolica Chile (PUC-Chile) from Oct 2018 to Mar 2019.
201-053 The Harvard Management Company and Inflation–Protected Bonds 
4 
determined by multiplying the inflation-adjusted principal by one-half of the stated rate of interest on 
each semi-annual interest payment date. Thus, coupons increase proportionately with increases in 
principal due to inflation. Table A gives an example of the TIPS structure. 
Table A. An example of how to compute the interest and principal of TIPS 
 
Terms of TIPS 10-year note: 
• Value at issuance (par amount) = $1,000. 
• Stated rate of interest (coupon rate) = 3.5% payable semiannually. 
CPI at issuance = 100 
Coupon payment and accretion to principal at the end of first 6 month period (first payment date): 
• CPI = 101.49 (3% annual inflation rate) 
• Inflation - adjusted principal = 90.014,1$000,1$
100
49.101
=× 
• Semi - annual interest (coupon) payment 77.17$
2
3.5%$1,014.90 =×= 
• Accretion to principal = $1,014.90 - $1,000 = $14.90 (Not received until maturity) 
 
Like other Treasury securities, TIPS are exempt from state and local taxes. However, interest 
payments are taxed at the federal level. The taxation structure is similar to that of Treasury zero-
coupon bonds. Any inflation adjustment that causes an accretion to principal is taxed in the period in 
which it is made. In the example shown in Table A, taxable income at the end of the first six-month 
period would be $14.90 + $17.77 = $32.67. Many economists argue that the inflation-adjustment to 
principal should have been tax free to establish a guaranteed real after-tax return for investors. 
The Asset Allocation Recommendation 
Jack Meyer and his team had been watching the market for TIPS since their inception in 1997. 
They had noted that TIPS had offered a real yield that ranged from 3.2% to 4.25% (see Exhibit 3). By 
contrast, real yields on Treasury bills had been historically around 2%, and real yields on Treasury 
nominal bonds had been around 3%. In view of this relatively high yield on TIPS, and their inflation-
protection characteristics, the HMC team believed that TIPS could be an attractive asset to hold in a 
diversified portfolio. They also believed that the real yields delivered by TIPS suggested that the 2% 
real return on cash they had assumed historically in their portfolio analysis was too low, and that a 
better estimate was 3.5%. 
To evaluate the importance of both including TIPS in the Harvard portfolio and increasing the 
expected real return on cash, the HMC team had conducted a mean-variance analysis. This analysis 
This document is authorized for use only in Jos? Tessada P.'s PRE-18 Finanzas II - 1 at Pontificia Universidad Catolica Chile (PUC-Chile) from Oct 2018 to Mar 2019.
The Harvard Management Company and Inflation–Protected Bonds 201-053 
5 
required estimating the expected real return on TIPS, its volatility and its correlation with the real 
return on other assets. Unfortunately, TIPS represented a new asset class for which there was scant 
historical data available. However, the HMC team considered that the current real yield on TIPS 
(about 4%) was a good estimate of the expected real return on TIPS for an institution with long 
investment horizons such as Harvard. They had also computed estimates of the volatility and 
correlation of the real return on TIPS with other assets based on the performance of TIPS in the last 
three years, and on the historical performance of other asset classes such as nominal U.S. Treasury 
bonds or commodities. Commodities had historicallyoffered investors protection against inflation. 
Exhibit 4 shows the set of capital market assumptions the HMC team used as input to the mean-
variance optimization. 
The HMC team ran several optimization exercises, each one including different portfolio 
constraints. Exhibits 5 and 6 show mean-variance optimal asset allocations resulting from two of 
these exercises. Exhibit 5 shows allocations when portfolio weights for all asset classes except cash 
were constrained to lie between 0% and 100%. The constraints for cash were set to –50% and 100%. 
Exhibit 6 shows allocations when portfolio weights for all asset classes except inflation-indexed 
bonds were constrained to lie between 10 percent points below and 10 percent points above the 
weights in the May 1999 Policy Portfolio (Exhibit 1). This was the Harvard Policy Portfolio before 
considering the inclusion of inflation-indexed bonds. In this exercise, the constraints for inflation-
indexed bonds were set to 0% and 100%. 
Overall, these mean-variance optimizations suggested that inflation-protected bonds were an 
attractive asset to hold in a portfolio. The analysis also suggested long positions in private equity, 
commodities, real estate and emerging markets, at the expense of domestic equities and domestic 
bonds. Thus the results of the analysis supported a move away from domestic equities and nominal 
bonds toward inflation-protected bonds. However, before recommending any specific changes to the 
Policy Portfolio, Jack Meyer and his team had also reviewed how other institutions similar to 
Harvard allocated their portfolios. Data on the asset allocations of a group of university endowments 
is shown on Exhibit 7. 
After careful consideration of the mean-variance optimization results, and the portfolios of peer 
institutions, Jack Meyer and his team had decided to recommend a new Policy Portfolio that would 
include a new position in TIPS of 7% and no shorting of cash, at the expense of smaller positions in 
U.S. equities and U.S. domestic bonds. In the new portfolio, U.S. equities would represent 22%, down 
from 32% one year ago, and US bonds would represent 7%, down from 11% one year ago. Exhibit 8 
shows the new Policy Portfolio that Meyer was planning to propose. However, Jack Meyer was not 
sure how the Board would react to his proposal. TIPS represented a new and relatively unproven 
asset class, while U.S. equities had performed very well in the recent past. Was this right the time to 
move away from U.S. equities to explore such unfamiliar territory? 
This document is authorized for use only in Jos? Tessada P.'s PRE-18 Finanzas II - 1 at Pontificia Universidad Catolica Chile (PUC-Chile) from Oct 2018 to Mar 2019.
201-053 The Harvard Management Company and Inflation–Protected Bonds 
6 
Exhibit 1 Policy Portfolio in May 1999 (All numbers are percentages except for Sharpe Ratio.) 
 
 Minimum Policy Maximum Benchmark 
1. Domestic Equity 22 32 42 80% S&P 500; 16% S&P Mid Cap; 4% 
Russell 2000 
2. Foreign Equity 10 15 20 93% EAFEb; 7% Salomon Extended Market 
Index (excluding US and EAFE overlap) 
3. Emerging Markets 3 9 13 IFC Global Index and EMBI
+ c 
4. Private Equity 10 15 20 Cambridge Associates Weighted Composite 
5. Absolute Return 0 4 8 LIBOR + 5% 
6. High Yield 0 2 4 Salomon High Yield and Bankrupt 
7. Commodities 2 5 8 60% GSCId; 40% NCREIFe Timber Index 
8. Real Estate 4 7 10 NCREIF Property Index 
9. Domestic Bonds 6 11 22 Lehman 5
 
+ Year Treasury Index 
10. Foreign Bonds 0 5 10 J.P. Morgan Non U.S. 
11. Cash -10 -5 20 3 month LIBOR 
 100 
 
 Expected Real Return 6.51 
 Standard Deviation 10.81 
 Sharpe Ratioa 0.28 
 
Source: Harvard Management Company. 
a The Sharpe ratio is defined as the ratio of the expected excess return on a portfolio over its standard deviation. The excess 
return is usually computed over the return on cash. 
b EAFE is the Morgan Stanley Europe, Australia, and Far East Index. 
c IFC is the International Finance Corporation. EMBI
+
 is the J.P. Morgan Emerging Markets Bond Index Plus: EMBI (which 
covers only Brady bonds) plus loans, Eurobonds, and US dollar-denominated local instruments. 
d GSCI is the Goldman Sachs Commodity Index. 
e NCREIF is the National Council of Real Estate Investment Fiduciaries. 
 
 
This document is authorized for use only in Jos? Tessada P.'s PRE-18 Finanzas II - 1 at Pontificia Universidad Catolica Chile (PUC-Chile) from Oct 2018 to Mar 2019.
20
1-
05
3 
 
 -7
- 
E
xh
ib
it
 2
T
w
en
ty
-Y
ea
r 
H
is
to
ri
ca
l M
ea
n,
 S
ta
nd
ar
d
 D
ev
ia
ti
on
 a
nd
 C
or
re
la
ti
on
 M
at
ri
x 
of
 R
ea
l R
et
ur
ns
 
 
 
 
 
 
C
or
re
la
ti
on
s 
a 
 
 
M
ea
n 
R
ea
l 
R
et
ur
n 
(%
) 
S.
D
. (
%
) 
 
D
om
es
ti
c 
E
qu
it
y 
Fo
re
ig
n 
E
qu
it
y 
E
m
er
gi
ng
 
M
ar
ke
ts
 
Pr
iv
at
e 
E
qu
it
y 
A
bs
ol
ut
e 
R
et
ur
n 
H
ig
h 
Y
ie
ld
 
C
om
m
od
it
ie
s 
R
ea
l 
E
st
at
e 
D
om
es
ti
c 
B
on
d
s 
Fo
re
ig
n 
B
on
d
s 
C
as
h 
1 
D
om
es
tic
 E
qu
ity
 
13
.2
 
15
.2
 
1.
00
 
0.
51
 
0.
37
 
0.
26
 
0.
86
 
0.
56
 
(0
.0
0)
 
0.
06
 
0.
32
 
0.
10
 
0.
14
 
2 
F
or
ei
gn
 E
qu
ity
 
10
.2
 
17
.4
 
0.
51
 
1.
00
 
0.
37
 
0.
12
 
0.
89
 
0.
35
 
0.
02
 
0.
13
 
0.
22
 
0.
40
 
0.
16
 
3 
E
m
er
gi
ng
 M
ar
ke
ts
 
4.
9 
21
.2
 
0.
37
 
0.
37
 
1.
00
 
0.
16
 
0.
56
 
0.
39
 
(0
.0
5)
 
(0
.0
8)
 
(0
.0
9)
 
(0
.0
7)
 
(0
.0
6)
 
4 
P
riv
at
e 
E
qu
ity
 
17
.9
 
15
.2
 
0.
26
 
0.
12
 
0.
16
 
1.
00
 
0.
27
 
0.
06
 
0.
05
 
0.
12
 
(0
.1
2)
 
(0
.3
0)
 
0.
03
 
5 
A
bs
ol
ut
e 
R
et
ur
n 
b 
8.
6 
8.
6 
0.
86
 
0.
89
 
0.
56
 
0.
27
 
1.
00
 
0.
50
 
0.
04
 
0.
07
 
0.
37
 
0.
40
 
0.
29
 
6 
H
ig
h 
Y
ie
ld
 b
 
7.
1 
7.
3 
0.
56
 
0.
35
 
0.
39
 
0.
06
 
0.
50
 
1.
00
 
(0
.3
2)
 
(0
.1
1)
 
0.
31
 
(0
.0
1)
 
0.
32
 
7 
C
om
m
od
iti
es
 
1.
1 
10
.7
 
(0
.0
0)
 
0.
02
 
(0
.0
5)
 
0.
05
 
0.
04
 
(0
.3
2)
 
1.
00
 
(0
.0
4)
 
(0
.0
9)
 
0.
19
 
(0
.2
0)
 
8 
R
ea
l E
st
at
e 
1.
4 
6.
4 
0.
06
 
0.
13
 
(0
.0
8)
 
0.
12
 
0.
07
 
(0
.1
1)
 
(0
.0
4)
 
1.
00
 
(0
.0
6)
 
(0
.1
5)
 
0.
39
 
9 
D
om
es
tic
 B
on
ds
 
6.
0 
7.
8 
0.
32
 
0.
22
 
(0
.0
9)
 
(0
.1
2)
 
0.
37
 
0.
31
 
(0
.0
9)
 
(0
.0
6)
 
1.
00
 
0.
42
 
0.
28
 
10
 
F
or
ei
gn
 B
on
ds
 b
 
5.
1 
8.
7 
0.
10
 
0.
40
 
(0
.0
7)
 
(0
.3
0)
 
0.
40
 
(0
.0
1)
 
0.
19
 
(0
.1
5)
 
0.
42
 
1.
00
 
0.
01
 
11
 
C
as
h 
3.
1 
0.
9 
0.
14
 
0.
16
 
(0
.0
6)
 
0.
03
 
0.
29
 
0.
32
 
(0
.2
0)
 
0.
39
 
0.
28
 
0.
01
 
1.
00
 
So
ur
ce
: 
H
ar
va
rd
 M
an
ag
em
en
t C
om
p
an
y.
 
 a 
C
or
re
la
ti
on
s 
ar
e 
ca
lc
ul
at
ed
 u
si
ng
 q
ua
rt
er
ly
 r
et
ur
ns
 
b 
A
ll 
nu
m
be
rs
 a
re
 b
as
ed
 o
n 
10
-y
ea
r 
hi
st
or
ic
al
 r
ea
l r
et
u
rn
s 
 
This document is authorized for use only in Jos? Tessada P.'s PRE-18 Finanzas II - 1 at Pontificia Universidad Catolica Chile (PUC-Chile) from Oct 2018 to Mar 2019.
201-053 The Harvard Management Company and Inflation–Protected Bonds 
8 
Exhibit 3 Real Yield on 3-month T-billsa and January 1997 TIPS 
 
T - bills
-10.00
-8.00
-6.00
-4.00
-2.00
0.00
2.00
4.00
6.00
8.00
Jan 55 Sep 68 Jun 82 Feb 96
 
 
TIPS
3
3.2
3.4
3.6
3.8
4
4.2
4.4
4.6
09/20/1995 02/01/1997 06/16/1998 10/29/1999 03/12/2001
 
Source: 
a Yield on 3 -month T-bills minus annual CPI inflation rate (percent). 
 
This document is authorized for use only in Jos? Tessada P.'s PRE-18 Finanzas II - 1 at Pontificia Universidad Catolica Chile (PUC-Chile) from Oct 2018 to Mar 2019.
20
1-
05
3 
 
 -9
- 
E
xh
ib
it
 4
A
ss
um
ed
 R
ea
l E
xp
ec
te
d
 R
et
ur
ns
, V
ol
at
ili
ties
, a
nd
 C
or
re
la
ti
on
s 
 
 
 
 
 
C
o
rr
el
at
io
n
s 
 
 
E
xp
ec
te
d 
R
ea
l R
et
ur
n 
(%
) 
S
.D
. 
(%
) 
 
D
om
es
tic
 
E
qu
ity
 
F
or
ei
gn
 
E
qu
ity
 
E
m
er
gi
ng
 
M
ar
ke
ts
 
P
riv
at
e 
E
qu
ity
 
A
bs
ol
ut
e 
R
et
ur
n 
H
ig
h 
Y
ie
ld
 
C
om
m
od
iti
es
 
R
ea
l 
E
st
at
e 
D
om
es
tic
 
B
on
ds
 
Fo
re
ig
n 
B
on
d
s 
In
fl-
In
de
xe
d 
B
on
ds
 
C
as
h 
1 
D
om
es
tic
 E
qu
ity
 
6.
5 
16
.0
 
1.
00
 
0.
50
 
0.
40
 
0.
40
 
0.
60
 
0.
55
 
(0
.0
5)
 
0.
20
 
0.
40
 
0.
15
 
0.
10
 
0.
10
 
2 
F
or
ei
gn
 E
qu
ity
 
6.
5 
17
.0
 
0.
50
 
1.
00
 
0.
35
 
0.
30
 
0.
50
 
0.
35
 
(0
.0
5)
 
0.
15
 
0.
25
 
0.
40
 
(0
.0
5)
 
0.
05
 
3 
E
m
er
gi
ng
 M
ar
ke
ts
 
8.
5 
20
.0
 
0.
40
 
0.
35
 
1.
00
 
0.
25
 
0.
30
 
0.
35
 
0.
00
 
0.
15
 
0.
15
 
0.
10
 
0.
00
 
0.
00
 
4 
P
riv
at
e 
E
qu
ity
 
9.
5 
22
.0
 
0.
40
 
0.
30
 
0.
25
 
1.
00
 
0.
30
 
0.
20
 
(0
.1
0)
 
0.
15
 
0.
20
 
0.
10
 
0.
10
 
0.
05
 
5 
A
bs
ol
ut
e 
R
et
ur
n 
5.
5 
12
.0
 
0.
60
 
0.
50
 
0.
30
 
0.
30
 
1.
00
 
0.
40
 
0.
00
 
0.
15
 
0.
30
 
0.
20
 
0.
20
 
0.
10
 
6 
H
ig
h 
Y
ie
ld
 
5.
5 
12
.0
 
0.
55
 
0.
35
 
0.
35
 
0.
20
 
0.
40
 
1.
00
 
0.
10
 
0.
10
 
0.
45
 
0.
15
 
0.
30
 
0.
10
 
7 
C
om
m
od
iti
es
 
4.
5 
12
.0
 
(0
.0
5)
 
(0
.0
5)
 
0.
00
 
(0
.1
0)
 
0.
00
 
0.
10
 
1.
00
 
0.
00
 
(0
.1
5)
 
(0
.1
0)
 
0.
20
 
(0
.0
5)
 
8 
R
ea
l E
st
at
e 
5.
5 
12
.0
 
0.
20
 
0.
15
 
0.
15
 
0.
15
 
0.
15
 
0.
10
 
0.
00
 
1.
00
 
0.
20
 
0.
10
 
0.
20
 
0.
15
 
9 
D
om
es
tic
 B
on
ds
 
4.
3 
7.
0 
0.
40
 
0.
25
 
0.
15
 
0.
20
 
0.
30
 
0.
45
 
(0
.1
5)
 
0.
20
 
1.
00
 
0.
40
 
0.
50
 
0.
15
 
10
 
F
or
ei
gn
 B
on
ds
 
4.
3 
8.
0 
0.
15
 
0.
40
 
0.
10
 
0.
10
 
0.
20
 
0.
15
 
(0
.1
0)
 
0.
10
 
0.
40
 
1.
00
 
0.
10
 
0.
10
 
11
 
In
fl-
In
de
xe
d 
B
on
ds
 
4.
0 
3.
0 
0.
10
 
(0
.0
5)
 
0.
00
 
0.
10
 
0.
20
 
0.
30
 
0.
20
 
0.
20
 
0.
50
 
0.
10
 
1.
00
 
(0
.1
0)
 
12
 
C
as
h 
3.
5 
1.
0 
0.
10
 
0.
05
 
0.
00
 
0.
05
 
0.
10
 
0.
10
 
(0
.0
5)
 
0.
15
 
0.
15
 
0.
10
 
(0
.1
0)
 
1.
00
 
So
ur
ce
: 
H
ar
va
rd
 M
an
ag
em
en
t C
om
p
an
y.
 
 
 
This document is authorized for use only in Jos? Tessada P.'s PRE-18 Finanzas II - 1 at Pontificia Universidad Catolica Chile (PUC-Chile) from Oct 2018 to Mar 2019.
20
1-
05
3 
 
 -1
0-
 
E
xh
ib
it
 5
Po
rt
fo
lio
 O
pt
im
iz
at
io
n 
B
as
ed
 o
n 
C
ap
it
al
 M
ar
ke
t A
ss
um
pt
io
ns
 a
nd
 0
%
 C
on
st
ra
in
t (
C
as
h 
to
 -5
0%
) 
(A
ll 
N
um
be
rs
 in
 %
) 
 
 
 
 
 
 
 
C
o
n
st
ra
in
ts
 
 
P
o
rt
fo
lio
 A
llo
ca
ti
o
n
 
L
o
w
er
 
U
p
p
er
 
D
om
es
tic
 E
qu
ity
 
0.
0 
0.
0 
0.
0 
0.
0 
0.
0 
0.
0 
0.
0 
0.
00
 
 
1.
00
 
F
or
ei
gn
 E
qu
ity
 
3.
5 
3.
8 
4.
3 
4.
7 
4.
8 
4.
8 
4.
2 
0.
00
 
 
1.
00
 
E
m
er
gi
ng
 M
ar
ke
ts
 
13
.1
 
14
.8
 
15
.9
 
17
.3
 
19
.1
 
20
.8
 
22
.3
 
0.
00
 
 
1.
00
 
P
riv
at
e 
E
qu
ity
 
14
.1
 
15
.9
 
17
.3
 
18
.8
 
21
.1
 
23
.4
 
25
.7
 
0.
00
 
 
1.
00
 
A
bs
ol
ut
e 
R
et
ur
n 
0.
0 
0.
0 
0.
0 
0.
0 
0.
0 
0.
0 
0.
0 
0.
00
 
 
1.
00
 
H
ig
h 
Y
ie
ld
 
0.
0 
0.
0 
0.
5 
0.
3 
1.
1 
1.
9 
3.
4 
0.
00
 
 
1.
00
 
C
om
m
od
iti
es
 
11
.2
 
12
.5
 
13
.6
 
14
.7
 
16
.1
 
17
.6
 
19
.7
 
0.
00
 
 
1.
00
 
R
ea
l E
st
at
e 
10
.6
 
11
.5
 
13
.1
 
14
.2
 
15
.9
 
17
.6
 
19
.7
 
0.
00
 
 
1.
00
 
D
om
es
ti
c 
B
on
d
s 
0.
0 
0.
0 
0.
0 
0.
0 
0.
0 
0.
0 
0.
0 
 
0.
00
 
 
1.
00
 
F
or
ei
gn
 B
on
ds
 
7.
5 
8.
4 
8.
6 
9.
7 
9.
4 
9.
5 
11
.5
 
 
0.
00
 
 
1.
00
 
In
fla
tio
n-
In
de
xe
d 
B
on
ds
 
52
.3
 
54
.1
 
63
.1
 
70
.3
 
62
.6
 
54
.5
 
43
.5
 
 
0.
00
 
 
1.
00
 
C
as
h 
(1
2.
2)
 
(2
1.
0)
 
(3
6.
4)
 
(5
0.
0)
 
(5
0.
0)
 
(5
0.
0)
 
(5
0.
0)
 
 
(0
.5
0)
 
 
1.
00
 
 
10
0.
0 
10
0.
0 
10
0.
0 
10
0.
0 
10
0.
0 
10
0.
0 
10
0.
0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
E
xp
ec
te
d 
R
ea
l R
et
ur
n 
 
5.
75
 
6.
00
 
6.
25
 
6.
50
 
6.
75
 
7.
00
 
7.
25
 
 
 
 
 
S
ta
nd
ar
d 
D
ev
ia
tio
n 
5.
87
 
6.
52
 
7.
17
 
7.
83
 
8.
49
 
9.
18
 
9.
88
 
 
 
 
 
S
ha
rp
e 
R
at
io
 
0.
38
 
0.
38
 
0.
38
 
0.
38
 
0.
38
 
0.
38
 
0.
38
 
 
 
 
 
So
ur
ce
: 
H
ar
va
rd
 M
an
ag
em
en
t C
om
p
an
y.
 
 
This document is authorized for use only in Jos? Tessada P.'s PRE-18 Finanzas II - 1 at Pontificia Universidad Catolica Chile (PUC-Chile) from Oct 2018 to Mar 2019.
20
1-
05
3 
 
 -1
1-
 
E
xh
ib
it
 6
Po
rt
fo
lio
 O
pt
im
iz
at
io
n 
B
as
ed
 o
n 
C
ap
it
al
 M
ar
ke
t A
ss
um
pt
io
ns
 a
nd
 1
0%
 C
on
st
ra
in
t 
 (A
ll 
N
um
be
rs
 in
 %
) 
 
 
 
 
 
 
 
C
o
n
st
ra
in
ts
 
 
P
o
rt
fo
lio
 A
llo
ca
ti
o
n
 
L
o
w
er
 
U
p
p
er
 
D
om
es
tic
 E
qu
ity
 
22
.0
 
22
.0
 
22
.0
 
22
.0
 
22
.0
 
22
.0
 
22
.0
 
22
.0
 
 
42
.0
 
F
or
ei
gn
 E
qu
ity
 
5.
0 
5.
0 
5.
0 
5.
0 
5.
0 
5.
0 
5.
4 
5.
0 
 
25
.0
 
E
m
er
gi
ng
 M
ar
ke
ts
 
9.
9 
11
.8
 
13
.8
 
15
.9
 
18
.0
 
19
.0
 
19
.0
 
(1
.0
) 
 
19
.0
 
P
riv
at
e 
E
qu
ity
 
10
.4
 
12
.8
 
15
.2
 
17
.6
 
20
.0
 
22
.8
 
25
.0
 
5.
0 
 
25
.0
 
A
bs
ol
ut
e 
R
et
ur
n 
(6
.0
) 
(6
.0
) 
(6
.0
) 
(6
.0
) 
(6
.0
) 
(6
.0
) 
(6
.0
) 
(6
.0
) 
 
14
.0
 
H
ig
h 
Y
ie
ld
 
(8
.0
) 
(8
.0
) 
(8
.0
) 
(8
.0
) 
(8
.0
) 
(6
.9
) 
0.
3 
(8
.0
) 
 
12
.0
 
C
om
m
od
iti
es
 
12
.4
 
13
.9
 
15
.0
 
15
.0
 
15
.0
 
15
.0
 
15
.0
 
(5
.0
) 
 
15
.0
 
R
ea
l E
st
at
e 
7.
7 
9.
3 
10
.9
 
12
.6
 
14
.3
 
16
.4
 
17
.0
 
(3
.0
) 
 
17
.0
 
D
om
es
ti
c 
B
on
d
s 
1.
0 
1.
0 
1.
0 
1.
0 
1.
0 
1.
0 
1.
0 
 
1.
0 
 
21
.0
 
F
or
ei
gn
 B
on
ds
 
4.
2 
4.
1 
3.
9 
3.
5 
3.
1 
2.
9 
4.
0 
 
(5
.0
) 
 
15
.0
 
In
fla
tio
n-
In
de
xe
d 
B
on
ds
 
56
.4
 
49
.1
 
42
.2
 
36
.4
 
30
.6
 
23
.8
 
12
.3
 
 
0.
00
 
 
10
0.
0 
C
as
h 
(1
5.
0)
 
(1
5.
0)
 
(1
5.
0)
 
(1
5.
0)
 
(1
5.
0)
 
(1
5.
0)
 
(1
5.
0)
 
 
(1
5.
0)
 
 
5.
0 
 
10
0.
0 
10
0.
0 
10
0.
0 
10
0.
0 
10
0.
0 
10
0.
0 
10
0.
0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
E
xp
ec
te
d 
R
ea
l R
et
ur
n 
 
5.
75
 
6.
00
 
6.
25
 
6.
50
 
6.
75
 
7.
00
 
7.
25
 
 
 
 
 
S
ta
nd
ar
d 
D
ev
ia
tio
n 
6.
46
 
7.
08
 
7.
74
 
8.
42
 
9.
12
 
9.
84
 
10
.6
1 
 
 
 
 
S
ha
rp
e 
R
at
io
 
0.
35
 
0.
35
 
0.
36
 
0.
36
 
0.
36
 
0.
36
 
0.
35
 
 
 
 
 
So
ur
ce
: 
H
ar
va
rd
 M
an
ag
em
en
t C
om
p
an
y.
 
 
This document is authorized for use only in Jos? Tessada P.'s PRE-18 Finanzas II - 1 at Pontificia Universidad Catolica Chile (PUC-Chile) from Oct 2018 to Mar 2019.
20
1-
05
3 
 
 -1
2-
 
E
xh
ib
it
 7
A
ss
et
 A
llo
ca
ti
on
s 
of
 a
 S
el
ec
te
d
 G
ro
up
 o
f U
ni
ve
rs
it
y 
E
nd
ow
m
en
ts
 in
 Ju
ne
 2
00
0 
(A
ll 
N
um
be
rs
 in
 %
) 
U
n
iv
er
si
ty
 
 
U
.S
. E
q
u
it
y 
Fo
re
ig
n
 
E
q
u
it
y 
E
m
er
gi
n
g 
M
ar
k
et
s 
P
ri
va
te
 
E
q
u
it
ie
s 
A
b
so
lu
te
 
C
om
m
od
it
ie
s 
R
ea
l E
st
at
e 
B
on
d
s 
T
IP
S
 
C
as
h
 
A
 
 
34
.2
 
14
.2
 
2.
0 
11
.2
 
7.
3 
4.
7 
3.
3 
17
.3
 
0.
0 
5.
8 
B
 
 
14
.6
 
4.
4 
4.
8 
25
.9
 
19
.8
 
4.
0 
10
.2
 
9.
5 
0.
0 
6.
8 
C
 
 
15
.8
 
6.
0 
6.
9 
17
.7
 
24
.6
 
1.3 
8.
0 
11
.7
 
0.
0 
8.
0 
D
 
 
22
.2
 
11
.8
 
5.
6 
27
.6
 
1.
5 
5.
7 
15
.2
 
4.
1 
4.
3 
2.
0 
E
 
 
58
.1
 
1.
2 
8.
5 
9.
2 
5.
8 
1.
6 
4.
5 
7.
3 
0.
0 
3.
8 
F
 
 
53
.2
 
6.
0 
1.
0 
6.
5 
0.
0 
0.
0 
0.
8 
29
.5
 
1.
5 
1.
5 
G
 
 
39
.8
 
8.
9 
N
A
 
29
.5
 
6.
1 
0.
0 
1.
6 
10
.6
 
0.
0 
3.
5 
H
 
 
56
.3
 
17
.8
 
N
A
 
1.
9 
0.
0 
0.
0 
1.
4 
11
.3
 
10
.1
 
1.
2 
I 
 
21
.7
 
5.
8 
5.
5 
20
.1
 
20
.6
 
1.
1 
4.
9 
10
.0
 
2.
6 
7.
7 
J 
 
41
.8
 
10
.8
 
7.
0 
0.
9 
3.
6 
0.
0 
5.
4 
27
.5
 
0.
0 
3.
0 
K
 
 
49
.4
 
10
.3
 
1.
0 
12
.4
 
6.
1 
4.
7 
2.
1 
11
.6
 
0.
0 
2.
4 
L
 
 
37
.1
 
9.
8 
0.
9 
10
.1
 
19
.1
 
0.
0 
3.
2 
19
.8
 
0.
0 
0.
0 
M
 
 
34
.8
 
9.
1 
4.
2 
25
.7
 
2.
2 
0.
9 
3.
2 
17
.9
 
0.
0 
2.
0 
N
 
 
27
.8
 
8.
1 
2.
9 
21
.4
 
14
.4
 
3.
4 
6.
2 
13
.2
 
1.
3 
1.
3 
O
 
 
25
.0
 
10
.0
 
N
A
 
25
.0
 
10
.0
 
3.
5 
6.
5 
20
.0
 
0.
0 
0.
0 
P
 
 
22
.4
 
14
.9
 
3.
1 
32
.8
 
7.
1 
3.
3 
3.
8 
11
.3
 
0.
9 
0.
4 
Q
 
 
28
.4
 
11
.5
 
7.
3 
21
.9
 
10
.5
 
0.
8 
2.
9 
13
.9
 
0.
0 
2.
8 
R
 
 
26
.0
 
9.
4 
2.
7 
24
.2
 
6.
7 
1.
3 
6.
5 
16
.6
 
3.
3 
3.
3 
S
 
 
21
.0
 
9.
0 
3.
5 
21
.5
 
18
.5
 
2.
5 
4.
0 
12
.0
 
4.
5 
3.
5 
 
 
 
 
 
 
 
 
 
 
 
 
L
O
W
 
 
14
.6
 
1.
2 
0.
9 
0.
9 
0.
0 
0.
0 
0.
8 
4.
1 
0.
0 
0.
0 
M
E
D
IU
M
 
 
32
.5
 
9.
7 
4.
4 
18
.1
 
9.
4 
2.
3 
5.
0 
14
.5
 
1.
8 
3.
0 
H
IG
H
 
 
58
.1
 
17
.8
 
8.
5 
32
.8
 
24
.6
 
5.
7 
15
.2
 
29
.5
 
10
.1
 
8.
0 
 
 
 
 
 
 
 
 
 
 
 
 
So
ur
ce
: 
H
ar
va
rd
 M
an
ag
em
en
t C
om
p
an
y 
 
This document is authorized for use only in Jos? Tessada P.'s PRE-18 Finanzas II - 1 at Pontificia Universidad Catolica Chile (PUC-Chile) from Oct 2018 to Mar 2019.
The Harvard Management Company and Inflation–Protected Bonds 201-053 
13 
Exhibit 8 Proposed Policy Portfolio (All numbers are percentages except for Sharpe Ratio). 
 
 Minimum Policy Maximum Benchmark 
1. Domestic Equity 12 22 40 80% S&P 500; 16% S&P Mid Cap; 4% Russell 
2000 
2. Foreign Equity 10 15 20 93% EAFE; 7% Salomon Extended Market Index 
(excluding US and EAFE overlap) 
3. Emerging Markets 3 9 13 IFC Global Index and EMBI
+ 
 
4. Private Equity 10 15 20 Cambridge Associates Weighted Composite 
5. Absolute Return 0 5 10 LIBOR + 5% 
6. High Yield 0 3 5 Salomon High Yield and Bankrupt 
7. Commodities 3 6 9 60% GSCI; 40% NCREIF Timber Index 
8. Real Estate 4 7 10 NCREIF Property Index 
9. Domestic Bonds 2 7 12 Lehman 5
 
+ Year Treasury Index 
10. Foreign Bonds 0 4 10 J.P. Morgan Non U.S. 
11. Inflation-Indexed 2 7 12 Salomon TIPS 
12. Cash -5 0 10 3 month LIBOR 
 100 
 
 Expected Real Return 6.44 
 Standard Deviation 9.30 
 Sharpe Ratio 0.32 
 
Source: Harvard Management Company. 
 
 
 
This document is authorized for use only in Jos? Tessada P.'s PRE-18 Finanzas II - 1 at Pontificia Universidad Catolica Chile (PUC-Chile) from Oct 2018 to Mar 2019.
<<
 /ASCII85EncodePages false
 /AllowTransparency false
 /AutoPositionEPSFiles true
 /AutoRotatePages /None
 /Binding /Left
 /CalGrayProfile (Gray Gamma 2.2)
 /CalRGBProfile (sRGB IEC61966-2.1)
 /CalCMYKProfile (U.S. Web Coated \050SWOP\051 v2)
 /sRGBProfile (sRGB IEC61966-2.1)
 /CannotEmbedFontPolicy /Warning
 /CompatibilityLevel 1.2
 /CompressObjects /Tags
 /CompressPages true
 /ConvertImagesToIndexed true
 /PassThroughJPEGImages true
 /CreateJDFFile false
 /CreateJobTicket false
 /DefaultRenderingIntent /Default
 /DetectBlends true
 /ColorConversionStrategy /LeaveColorUnchanged
 /DoThumbnails true
 /EmbedAllFonts true
 /EmbedJobOptions true
 /DSCReportingLevel 0
 /EmitDSCWarnings true
 /EndPage -1
 /ImageMemory 1048576
 /LockDistillerParams false
 /MaxSubsetPct 100
 /Optimize true
 /OPM 1
 /ParseDSCComments true
 /ParseDSCCommentsForDocInfo true
 /PreserveCopyPage true
 /PreserveEPSInfo true
 /PreserveHalftoneInfo true
 /PreserveOPIComments true
 /PreserveOverprintSettings true
 /StartPage 1
 /SubsetFonts true
 /TransferFunctionInfo /Preserve
 /UCRandBGInfo /Preserve
 /UsePrologue false
 /ColorSettingsFile ()
 /AlwaysEmbed [ true
 /AGaramond-Bold
 /AGaramond-BoldItalic
 /AGaramond-Italic
 /AGaramond-Regular
 /AlleycatICG
 /AlleycatICG-Bold
 /Anna
 /AvantGarde-Book
 /AvantGarde-BookOblique
 /AvantGarde-Demi
 /AvantGarde-DemiOblique
 /BaskervilleBE-Italic
 /BaskervilleBE-Medium
 /BaskervilleBE-MediumItalic
 /BaskervilleBE-Regular
 /BernhardModern-Roman
 /BocaRatonICG
 /BocaRatonICG-Solid
 /BookAntiqua
 /BookAntiqua-Bold
 /BookAntiqua-BoldItalic
 /BookAntiqua-Italic
 /Bookman-Demi
 /Bookman-DemiItalic
 /Bookman-Light
 /Bookman-LightItalic
 /Boton-Italic
 /Boton-Medium
 /Boton-MediumItalic
 /Boton-Regular
 /Boulevard
 /CaflischScript-Bold
 /CaflischScript-Regular
 /ChiladaICG-Cuatro
 /ChiladaICG-Dos
 /ChiladaICG-Tres
 /ChiladaICG-Uno
 /Copperplate-ThirtyOneAB
 /Copperplate-ThirtyThreeBC
 /Courier
 /Courier-Bold
 /Courier-BoldOblique
 /Courier-Oblique
 /Critter
 /DecoturaICG
 /DecoturaICG-Inline
 /ExPonto-Regular
 /FajitaICG-Mild
 /FajitaICG-Picante
 /FranklinGothic-Condensed
 /FranklinGothic-Roman
 /Frutiger-Bold
 /Frutiger-Italic
 /Frutiger-Light
 /Frutiger-Roman
 /Giddyup
 /Giddyup-Thangs
 /Goudy
 /Helvetica
 /Helvetica-Bold
 /Helvetica-BoldOblique
 /Helvetica-Narrow
 /Helvetica-Narrow-Bold
 /Helvetica-Narrow-BoldOblique
 /Helvetica-Narrow-Oblique
 /Helvetica-Oblique
 /JansonText-Italic
 /JansonText-Roman
 /Lithos-Black
 /Lithos-Regular
 /LitterboxICG
 /Minion-BoldCondensed
 /Minion-BoldCondensedItalic
 /Minion-Condensed
 /Minion-CondensedItalic
 /Minion-Ornaments
 /Myriad-Bold
 /Myriad-BoldItalic
 /Myriad-Italic
 /Myriad-Roman
 /Myriad-Tilt
 /NewCenturySchlbk-Bold
 /NewCenturySchlbk-BoldItalic
 /NewCenturySchlbk-Italic
 /NewCenturySchlbk-Roman
 /Nueva-BoldExtended
 /Nueva-Roman
 /NuptialScript
 /OCRA
 /PaisleyICG-01
 /PaisleyICG-01Alt
 /PaisleyICG-02
 /PaisleyICG-02Alt
 /Palatino-Bold
 /Palatino-BoldItalic
 /Palatino-Italic
 /Palatino-Roman
 /ParkAvenue
 /Poetica-ChanceryI
 /PopplLaudatio-Italic
 /PopplLaudatio-Medium
 /PopplLaudatio-MediumItalic
 /PopplLaudatio-Regular
 /PrestigeElite-Bold
 /PrestigeElite-BoldSlanted
 /Sanvito-Light
 /Sanvito-Roman
 /SaturdaySansICG
 /SaturdaySansICG-Bold
 /Stencil
 /Tekton-Bold
 /TektonMM
 /TektonMM-Oblique
 /Times-Bold
 /Times-BoldItalic
 /Times-Italic
 /Times-Roman
 /Trajan-Bold
 /UltraCondensedSansOne
 /UltraCondensedSansTwo
 /Utopia-Italic
 /Utopia-Regular
 /Utopia-Semibold
 /Utopia-SemiboldItalic
 /VAGRounded-Black
 /VAGRounded-Bold
 /VAGRounded-Light
 /VAGRounded-Thin
 /Viva-BoldExtraExtended
 /Viva-Regular
 /WhimsyICG
 /WhimsyICG-Bold
 /WhimsyICG-Heavy
 /Willow
 /WontonICG
 /ZapfChancery-MediumItalic
 ]
 /NeverEmbed [ true
 ]
 /AntiAliasColorImages false
 /DownsampleColorImages false
 /ColorImageDownsampleType /Average
 /ColorImageResolution 300
 /ColorImageDepth -1
 /ColorImageDownsampleThreshold 1.50000
 /EncodeColorImages true
 /ColorImageFilter /DCTEncode
 /AutoFilterColorImages true
 /ColorImageAutoFilterStrategy /JPEG
 /ColorACSImageDict <<
 /QFactor 0.15
 /HSamples [1 1 1 1] /VSamples [1 1 1 1]
 >>
 /ColorImageDict <<
 /QFactor 2.40
 /HSamples [2 1 1 2] /VSamples [2 1 1 2]
 >>
 /JPEG2000ColorACSImageDict <<
 /TileWidth 256
 /TileHeight 256
 /Quality 15
 >>
 /JPEG2000ColorImageDict <</TileWidth 256
 /TileHeight 256
 /Quality 15
 >>
 /AntiAliasGrayImages false
 /DownsampleGrayImages false
 /GrayImageDownsampleType /Bicubic
 /GrayImageResolution 300
 /GrayImageDepth -1
 /GrayImageDownsampleThreshold 1.50000
 /EncodeGrayImages true
 /GrayImageFilter /DCTEncode
 /AutoFilterGrayImages true
 /GrayImageAutoFilterStrategy /JPEG
 /GrayACSImageDict <<
 /QFactor 0.15
 /HSamples [1 1 1 1] /VSamples [1 1 1 1]
 >>
 /GrayImageDict <<
 /QFactor 0.15
 /HSamples [1 1 1 1] /VSamples [1 1 1 1]
 >>
 /JPEG2000GrayACSImageDict <<
 /TileWidth 256
 /TileHeight 256
 /Quality 15
 >>
 /JPEG2000GrayImageDict <<
 /TileWidth 256
 /TileHeight 256
 /Quality 15
 >>
 /AntiAliasMonoImages false
 /DownsampleMonoImages false
 /MonoImageDownsampleType /Bicubic
 /MonoImageResolution 300
 /MonoImageDepth -1
 /MonoImageDownsampleThreshold 1.50000
 /EncodeMonoImages true
 /MonoImageFilter /CCITTFaxEncode
 /MonoImageDict <<
 /K -1
 >>
 /AllowPSXObjects true
 /PDFX1aCheck false
 /PDFX3Check false
 /PDFXCompliantPDFOnly false
 /PDFXNoTrimBoxError true
 /PDFXTrimBoxToMediaBoxOffset [
 0.00000
 0.00000
 0.00000
 0.00000
 ]
 /PDFXSetBleedBoxToMediaBox true
 /PDFXBleedBoxToTrimBoxOffset [
 0.00000
 0.00000
 0.00000
 0.00000
 ]
 /PDFXOutputIntentProfile (None)
 /PDFXOutputCondition ()
 /PDFXRegistryName (http://www.color.org)
 /PDFXTrapped /False
 /Description <<
 /JPN <FEFF3053306e8a2d5b9a306f300130d330b830cd30b9658766f8306e8868793a304a3088307353705237306b90693057305f00200050004400460020658766f830924f5c62103059308b3068304d306b4f7f75283057307e305930023053306e8a2d5b9a30674f5c62103057305f00200050004400460020658766f8306f0020004100630072006f0062006100740020304a30883073002000520065006100640065007200200035002e003000204ee5964d30678868793a3067304d307e30593002>
 /DEU <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>
 /FRA <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>
 /PTB <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>
 /DAN <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>
 /NLD <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>
 /ESP <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>
 /SUO <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>
 /ITA <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>/NOR <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>
 /SVE <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>
 /ENU ()
 >>
>> setdistillerparams
<<
 /HWResolution [300 300]
 /PageSize [612.000 792.000]
>> setpagedevice