EFTA01556414.pdf

FINANCIAL TRUST COMPANY INC 6100 RED HOOK QUARTERS #B3 ST THOMAS 00802 VIRGIN ISLANDS, U.S. EFTA01556414 EFTA01556415 For the Period 10/1/11 to 10/31/11 Account Summary Account Number Investment Account(s) FINANCIAL TRUST COMPANY INC FINANCIAL TRUST COMPANY INC Total Value Statement Disclosures This account summary is provided for informational purposes and includes assets at different entities. (1) Assets held at JPMorgan Chase Bank, N.A., member Federal Deposit Insurance Corporation ("FDIC"), except for exchangelisted options, which are held at 3PMorgan Clearing Corporation ("JPMCC"). The Asset Account Statement reflects brokerage transactions executed through J.P. Morgan Securities LLC ("JPMS"), see "Portfolio Activity Detail". Equity securities, fixed income securities, and listed options transactions are generally cleared through JPMCC, a wholly owned subsidiary of 3PMS. Please see "Additional Information About Your Accounts" at the end of the Asset Account Statement. (2) Assets held in Margin Account at JPMCC, member Financial Regulatory Authority ("FINRA") and Securities Insurance Protection Corporation ("SIPC"). The Margin Account Statement reflects brokerage transactions executed by JPMS, see "Portfolio Activity Detail". Such transactions are cleared and carried through JPMCC. For important information regarding your accounts refer to the rear of your statement 1 2 Beginning Net Market Value 2,796,707.11 0.00 $2,796,707.11 Ending Net Market Value 3,588,544.26 0.00 $3,588,544.26 Change In Value 791,837.15 0.00 $791,837.15 13 Start on Page 4 12 Client News EFTA01556416 If you plan to make gifts of securities this year, please notify your Client Service Representative before December 1, 2011. This will allow us to process your request before year-end and meet the deadline for tax filing purposes. 0000003522.15.0.15.00001.FINAN18.20111102 Page 1 of 17 EFTA01556417 THIS PAGE INTENTIONALLY LEFT BLANK EFTA01556418 For the Period 10/1/11 to 10/31/11 Consolidated Summary INVESTMENT ACCOUNTS Asset Allocation Alternative Assets Cash & Fixed Income Market Value Accruals Market Value with Accruals Beginning Market Value 2,694,727.68 101,975.18 $2,796,702.86 4.25 $2,796,707.11 Ending Market Value 3,486,830.25 101,709.97 $3,588,540.22 4.04 $3,588,544.26 Change In Value 792,102.57 (265.21) $791,837.36 (0.21) $791,837.15 Alternative Assets Estimated 252,630.72 65.58 Current Annual Income Allocation 97% 3% $252,696.30 100% Cash & Fixed Income Asset Allocation This Consolidated Summary shows all of your investments at J.P. Morgan other than investments we hold in trust for you. These investments may be held in custody or investment management account at JPMorgan Chase Bank, N.A. (the "Bank") or in a brokerage or margin account at J.P. Morgan Clearing Corp. ("JPMCC"). Brokerage and margin accounts are non-discretionary and all investment decisions are made by the client. J.P. EFTA01556419 Morgan Securities LLC ("JPMS") does not provide advice on asset allocation or investment management services, nor do its personnel take discretion over any client accounts. Such advice and services are provided exclusively by the Bank. Page 2 of 17 EFTA01556420 For the Period 10/1/11 to 10/31/11 Consolidated Summary INVESTMENT ACCOUNT(S) YEAR-TO-DATE Portfolio Activity FINANCIAL TRUST COMPANY INC Tax Summary FINANCIAL TRUST COMPANY INC Account Number Beginning Market Value 13,488,713.45 Account Number Taxable Income 126,498.04 'Unrealized Gain/Loss represents data from the time of account inception to the current statement period. Net Contributions/ Withdrawals (8,513,518.53) Tax-Exempt Income Other Income & Receipts Income & Distributions 126,498.04 Change in Investment Value (1,513,152.74) Realized Gain/Loss Short-term Long-term Ending Market Value with Accruals 3,588,544.26 Unrealized Gain/Loss' (1,513,152 79) CONTINUED Page 3 of 17 EFTA01556421 JPMorgan Chase Bank, N.A. 270 Park Avenue, New York, NY 10017-2014 FINANCIAL TRUST COMPANY INC ACCT. For the Period 10/1/11 to 10/31/11 Asset Account J.P. Morgan Team Paul Morris Paul Barrett Janet Young Gina Magliocco Online access Banker Investment Specialist Client Service Team Client Service Team www.MorganOnline.com For important information regarding your accounts refer to the rear of your statement 212/464-0701 212/622-2770 800/634-1318 Table of Contents Account Summary Holdings Alternative Assets Cash & Fixed Income Portfolio Activity 4 5 7 Page 2 Account Page 1 of 8 Page 4 of 17 EFTA01556422 FINANCIAL TRUST COMPANY INC ACCT. For the Period 10/1/11 to 10/31/11 Account Summary Asset Allocation Alternative Assets Cash & Fixed Income Market Value Accruals Market Value with Accruals Beginning Market Value 2,694,727.68 101,975.18 $2,796,702.86 4.25 $2,796,707.11 Ending Market Value 3,486,830.25 101,709.97 $3,588,540.22 4.04 $3,588,544.26 Current Portfolio Activity Beginning Market Value Contributions Withdrawals & Fees Net Contributions/Withdrawals Income & Distributions Change In Investment Value Ending Market Value Accruals Market Value with Accruals (269.47) ($269.47) 4.25 792,102.58 $3,588,540.22 4.04 $3,588,544.26 Period Value 2,796,702.86 Change In Value 792,102.57 (265.21) $791,837.36 (0.21) $791,837.15 Year-to-Date EFTA01556423 Value 13,488,713.45 1,562,655.00 (10,076,173.53) ($8,513,518.53) 126,498.04 (1,513,152.74) $3,588,540.22 4.04 $3,588,544.26 Estimated 252,630.72 65.58 Current Annual Income Allocation 96% 4% $252,696.30 100% Cash & Fixed Income Asset Allocation Alternative Assets Account Page 2 of 8 Page 5 of 17 EFTA01556424 FINANCIAL TRUST COMPANY INC ACCT. For the Period 10/1/11 to 10/31/11 Account Summary Tax Summary Domestic Dividends/Distributions Interest Income Taxable Income CONTINUED Current Period Value 2.72 1.53 $4.25 Year-to-Date Value 126,487.03 11.01 $126,498.04 Unrealized Gain/Loss To-Date Value ($1,513,152.79) Cost Summary Cash & Fixed Income 101,710.01 Cost Total $101,710.01 Account Page 3 of 8 Page 6 of 17 EFTA01556425 FINANCIAL TRUST COMPANY INC ACCT. For the Period 10/1/11 to 10/31/11 Alternative Assets Summary Beginning Asset Categories Private Investments Estimated Value 2,694,727.68 Alternative Assets Detail Original Commitment Amount Private Investments APOLLO GLOBAL MANAGEMENT LLC 037612-30-6 APO 263,157.00 4,999,983.00 3,486,830.25 Amounts shown above under "Estimated Value" for private equity funds are estimates based on the latest fund values received from each underlying fund, which value may be as of a date (underlying fund value date) prior to the period covered by this statement. The values provided by the underlying fund have been adjusted for any cash flows between your account and such fund that have occurred subsequent to the underlying fund value date to derive the "Estimated Value". Therefore, such "Estimated Value" may not reflect the value of your interest shown on any fund's actual books and records as of the date of this statement. For additional information, please contact your J.P. Morgan representative. For private equity funds, Estimated Values are based on estimates provided by the underlying funds that are generally presented on a US GAAP basis, which records investments at fair value, or "marked-to-market". Most of these underlying funds also present their audited financial statements on a US GAAP basis (i.e., "marked-to- market"). However, some of these underlying funds present their audited financial statements using the Income Tax Basis of Accounting, which records investments "at cost" based on the accrual basis of accounting for Federal income taxes. Where the underlying fund provides periodic estimates on a "marked-to-market" basis but reflects investments "at cost" in its audited financial statements, the marked-to-market Estimated Value shown herein for a private equity fund may be materially different from the value reflected on such fund's audited financial statements (which are also based on the audited financial statements of the underlying fund). Net Capital Called Since Inception Net Distributions Since Inception Estimated Value EFTA01556426 Ending Estimated Value 3,486,830.25 Change In Value 792,102.57 Current Allocation 96% Account Page 4 of 8 Page 7 of 17 EFTA01556427 FINANCIAL TRUST COMPANY INC ACCT. For the Period 10/1/11 to 10/31/11 Cash & Fixed Income Summary Beginning Asset Categories Cash Non-USD Cash Total Value Market Value/Cost Market Value Tax Cost Unrealized Gain/Loss Estimated Annual Income Accrued Interest Yield SUMMARY BY MATURITY 1 Cash & Fixed Income 0-6 months 1 Market Value 101,974.96 0.22 $101,975.18 Ending Market Value 101,709.74 0.23 $101,709.97 Current Period Value 101,709.97 101,710.01 (0.04) 65.58 4.04 0.06% Cash & Fixed Income as a percentage of your portfolio 4% SUMMARY BY TYPE Market Value 101,709.97 % of Bond Portfolio 100% The years indicate the number of years until the bond is scheduled to mature based on the statement end date. Some bonds may be called, or paid in full, before their stated maturity. Cash & Fixed Income Cash NON USD Cash EFTA01556428 Total Value Market Value 101,709.74 0.23 $101,709.97 % of Bond Portfolio 99% 1% 100% Non-USD Cash Cash Change In Value (265.22) 0.01 ($265.21) Current Allocation 3% 1% 4% Asset Cate ories Account Page 5 of 8 Page 8 of 17 EFTA01556429 FINANCIAL TRUST COMPANY INC ACCT. For the Period 10/1/11 to 10/31/11 Note: 1 This is the Annual Percentage Yield (APY) which is the rate earned if balances remain on deposit for a full year with compounding, there is no change in the interest rate and all interest is left in the account. Cash & Fixed Income Detail Price Cash US DOLLAR 3PM PRIME MM FD - INSTL Total Cash Non-USD Cash POUND STERLING 7-Day Annualized Yield: .07% $101,709.74 $101,709.74 $0.00 1.00 1.00 51,605.79 50,103.95 51,605.79 50,103.95 51,605.79 50,103.95 15.48 1.32 50.10 2.72 $65.58 $4.04 0.03% 0.10% 0.06% Quantity Value Adjusted Tax Cost Original Cost Unrealized Gain/Loss Est. Annual Income Accrued Interest Yield 1.61 0.14 0.23 0.27 (0.04) EFTA01556430 Account Page 6 of 8 Page 9 of 17 EFTA01556431 FINANCIAL TRUST COMPANY INC ACCT. For the Period 10/1/11 to 10/31/11 Portfolio Activity Summary Beginning Cash Balance Transactions INFLOWS Income Contributions Total Inflows OUTFLOWS ** Withdrawals Fees & Commissions Total Outflows TRADE ACTIVITY Settled Sales/Maturities/Redemptions Settled Securities Purchased Total Trade Activity Ending Cash Balance (2.72) ($2.72) $51,605.79 * Year to date information is calculated on a calendar year basis. ** Your account's standing instructions use a FIRST IN, FIRST OUT method for relieving assets from your position 13,443,765.91 (5,005,139.63) $8,438,626.28 -(269.47) ($269.47) Current Period Value 51,873.73 4.25 $4.25 Year-To-Date Value* -126,498.04 1,562,655.00 $1,689,153.04 (10,075,904.06) (269.47) ($10,076,173.53) Current Cost Adjustments Cost Adjustments Total Cost Adjustments Period Value $0.00 Year-To-Date EFTA01556432 Value* 12,325,447.19 $12,325,447.19 Account Page 7 of 8 Page 10 of 17 EFTA01556433 FINANCIAL TRUST COMPANY INC ACCT. For the Period 10/1/11 to 10/31/11 Portfolio Activity Detail INFLOWS & OUTFLOWS Type Settle Date Selection Method 10/3 10/3 10/20 Div Domest Interest Income Description 3PM PRIME MM FD - INSTL FOR SEP @ VARIOUS RATES FROM 0.0001483% TO 0.0002153% (ID: 4812A2-60-3) DEPOSIT SWEEP INTEREST FOR SEPT @ .03% RATE ON NET AVG COLLECTED BALANCE OF $62,030.41 AS OF 10/01/11 Fees & Commissions JPMORGAN CHASE CUSTODY FEES FOR THE PERIOD FROM 07-01-2011 THROUGH 09-30-2011 MARKET VALUE: $2,694,727.90 Total Inflows & Outflows TRADE ACTIVITY Trade Date Settle Date Type Settled Securities Purchased 10/3 Purchase 10/3 Description 3PM PRIME MM FD - INSTL REINVESTED @ 1.00 PER SHARE (ID: 4812A2-60-3) Quantity 2.720 ($265.22) (269.47) Quantity Cost 50,101.230 Per Unit Amount Amount 2.72 1.53 Per Unit Amount 1.00 Market Cost (2.72) Account Page 8 of 8 Page 11 of 17 EFTA01556434 EFTA01556435 J.P. Morgan Securities LLC FINANCIAL TRUST COMPANY INC 383 Madison Avenue, New York, NY 10179 ACCT. For the Period 10/1/11 to 10/31/11 Margin Account J.P. Morgan Team Paul Morris Paul Barrett Janet Young Gina Magliocco Online access Banker Investment Specialist Client Service Team Client Service Team www.MorganOnline.com Transactions cleared and carried through J.P. Morgan Clearing Corp. - Three Chase Metrotech Center, Brooklyn, NY 11245-0001, (347) 643-2578 No market value or activity to report during this period For important information regarding your accounts refer to the rear of your statement 212/464-0701 212/622-2770 800/634-1318 Account Page 1 of 1 Page 12 of 17 EFTA01556436 THIS PAGE INTENTIONALLY LEFT BLANK EFTA01556437 For the Period 10/1/11 to 10/31/11 IMPORTANT INFORMATION ABOUT YOUR STATEMENT(S) Please take the steps indicated below if you think statements are incorrect or contact your J.P.Morgan team if you require additional information about a transaction on your statement(s). In Case of Errors or Questions About Your Electronic Transfers. Contact your J.P. Morgan Team at one of the telephone numbers on the front of your statements or write us at at J.P. Morgan, 500 Stanton Christiana Road, 1/OPS3, Newark, DE 19713-2107 as soon as you can, if you think your statement is wrong or if you need more information about a transfer on the statement. We must hear from you no later than 60 days after we sent you the FIRST statement on which the error or problem appeared. (1) Tell us your name and account number. (2) Describe the error or the transfer you are unsure about, and explain as clearly as you can why you believe it is an error or why you need more information. (3) Tell us the dollar amount of the suspected error. We will investigate your complaint and will correct any error promptly. If we take more than 10 business days (or 20 business days for new accounts) to do this, we will credit your account for the amount you think is in error, so that you will have the use of the money during the time it takes us to complete our investigation. In Case of Errors or Questions About Non-Electronic Transfers (Checks or Deposits) Contact JPMorgan Chase Bank, N.A. ("JPMCB") Member FDIC immediately if a statement is incorrect or if you need more information about any non- electronic transactions (checks or deposits) on this statement. If any such error appears, you must notify the bank in writing as soon as possible after your statement was made available to you. For more complete details, see the applicable account agreements and appendices that govern your account. Deposit products and services are offered by JPMorgan Chase Bank, N.A. ("JPMCB") Member FDIC. In case of other errors or questions about your brokerage account statement. Please review your account statement and promptly report any inaccuracy or discrepancy including possible unauthorized trading activity, unrecorded dividend payments, unaccounted cash positions, improper payments or transfers in writing to both the introducing broker, JPMS and the clearing firm, JPMCC at the addresses shown on your statement. Any oral communication should be re-confirmed in writing to further protect your rights, including your rights under the Securities Investor Protection Act (SIPA). If you have any questions please contact your J.P.Morgan team. In your written communication, please provide the following information: (1) your name and account number; (2) the dollar amount of the suspected error; and (3) a description of the error and explanation, if you can, why you believe there is an error. If you need more information, you must describe the item you are unsure about. We must receive your written communication no later than 30 days after the statement on which the error or problem appeared is sent or made available. If you do not so notify us, you agree that the statement EFTA01556438 activity and account balance(s) are correct. Important Information about Pricing and Valuations Market value information (including without limitation, prices, exchange rates, accrued income and bond ratings) furnished herein some of which has been provided by pricing sources or other sources that J.P. Morgan believes to be reliable, is not guaranteed for accuracy and is furnished for the exclusive use of the client. J.P. Morgan makes no representation, warranty or guarantee, express or implied, that any quoted value represents the actual terms at which transactions or securities could be bought or sold or new transactions could be entered into, or the actual terms on which existing transactions or securities could be liquidated. Such values may only be indicative. The current price is the value of the financial asset share, unit or contract as priced at the close of the market on the last day of the statement period or the last available price. All values provided for structured yield deposits (for example, JPMorgan London Time Deposits) reflect the original deposit amount only. The value for Real Estate, Mineral Interests and Miscellaneous Assets may not reflect the most current value of the asset. Certain assets including but not limited to, pooled and private investments, non-publicly traded and infrequently traded securities, derivatives, partnership interests and tangible assets are generally illiquid, the value of such assets may have been provided to us by third parties who may not be independent of the issuer or manager. Such information is reflected as of the last date provided to us, and is not independently verified. Disclosures Page 1 of 5 Page 13 of 17 EFTA01556439 For the Period 10/1/11 to 10/31/11 Valuations of over-the-counter derivative transactions, including certain derivatives-related deposit products, have been prepared on a mid-market basis. These valuations are derived from proprietary models based upon well-recognized financial principles and we have, when necessary to calculate the present value of future cash flows, made reasonable estimates about relevant future market conditions. Valuations based on other models or different assumptions may yield different results. J.P. Morgan expressly disclaims any responsibility for (1) the accuracy of the models or estimates used in deriving the valuations, (2) any errors or omissions in computing or disseminating the valuations, and (3) any uses to which the valuations are put. Valuations are provided for information purposes only and are intended solely for your own use. Please refer to the trade confirmation for details of each transaction. These statements are not official documents for income tax reporting purposes and should not be relied upon for such purposes, including determination of income, cost basis, amortization or accretion, or gain/loss. Such information, which may be inaccurate, incomplete or subject to updating, should be confirmed with your records and your tax advisor. Important Information Regarding Auction Rate Securities (ARS). ARS are debt or preferred securities with an interest or dividend rate reset periodically in an auction. Although there may be daily, weekly and monthly resets, there is no guarantee that there will be liquidity. If there are not enough bids at an auction to redeem the securities available for sale, the result may be a failed auction. In the event of a failed auction, there is no assurance that a secondary market will develop or that the security will trade at par or any other price reflected on statements and online.Accordingly, investors should not rely on pricing information appearing in their statements or online with respect to ARS. Where J.P. Morgan was unable to obtain a price from an outside service for a particular ARS, the price column on your statement and online will indicate "$0.00" which should not be relied on as the price at which ARS would trade. The JPMorgan Funds or The JPMorgan Institutional Funds or The American Century Funds Shares of the funds are not bank deposits and are not guaranteed by any bank, government entity, or the FDIC. Return and share price will fluctuate and redemption value may be more or less than original cost. While the money market funds seek to maintain a stable net asset value of $1.00 per share, there is no assurance that they will continue to do so. The estimated annual income and dividend yield figures for mutual funds represent the funds' most recent income dividend annualized. The distributor of the JPMorgan Funds is JPMorgan Distribution Services, Inc., which is an affiliate of JPMCB. JPMCB and its affiliates receive compensation from JPMorgan Funds for providing services. American Century Investment Services, Inc. is the distributor of the American Century Funds. American Century Investment Management Inc. serves as investment advisor to its respective EFTA01556440 fund family and receives compensation from that fund family for providing investment advisory and other services. Shareholders of certain 3PMorgan Funds are charged a redemption fee equal to 2% of the proceeds if they exchange or redeem shares of such funds within 60 days of purchase, subject to certain exceptions set forth in the prospectus of the applicable Fund. Please consult your J.P. Morgan representative for a list of the JPMorgan Funds that impose redemption fees. Offshore Deposits - London and Nassau Deposits in Foreign Branches are not insured by the FDIC or any other Agency of the Federal Government; amounts in such foreign accounts do not have the benefit of any domestic preference applicable to U.S Banks; certain Foreign accounts are considered reportable to the Internal Revenue Service on a Report of Foreign Bank and Financial Accounts (TD F 90-22.1). You must promptly advise your J.P.Morgan representative of material changes in your investment objectives or financial situation or if you wish to modify the management of your account. Unless you inform otherwise, your J.P.Morgan representative will consider the information currently in its files to be complete and accurate. Fund manager disclosure information available upon request If you have an investment account that is managed by an SEC-Registered Investment Advisor, the Private Bank of J.P. Morgan will provide a copy of the advisor's Form ADV II or brochure upon written request. Additional Information About Your Accounts Disclosures Page 2 of 5 Page 14 of 17 EFTA01556441 For the Period 10/1/11 to 10/31/11 Securities purchased or sold through J.P.Morgan Securities LLC ("JPMS") (1) other than mutual funds, are cleared through J.P.Morgan Clearing Corp. ("JPMCC"), an affiliate of JPMS, and (2) other than exchange-listed options and securities held in margin account(s), are held in your Asset Account at JPMCB. Positions in exchange-listed options and in margin account(s) are held by JPMCC and are not delivered to or from your Asset Account. For your convenience, however, positions in exchange-listed options are presented in Asset Account statement(s) together with other assets held in such account(s). All pertinent information about your settled and pending purchases and sales effected through your JPMS account during the period covered by these statement(s), is summarized in the "Trade Activity" portion of the statement(s). You should have received (or have made available to you) separate confirmations for each securities transaction. All transactions are subject to the terms and conditions stated on the reverse side of such confirmations and are subject to the constitution, by-laws, customs and interpretations of the marketplace where executed and governed by and construed in accordance with the laws of the State of New York and all applicable federal laws and regulations. Further information with respect to commissions and other charges related to the execution of transactions, including options transactions, has been included in confirmations that were previously furnished to you. Upon written request, JPMS will promptly supply you with the latest such information. JPMCC and JPMS are members of the Securities Investor Protection Corp ("SIPC"), a not-for-profit membership corporation funded by broker-dealers registered with the Securities and Exchange Commission. Securities and cash held for a customer at JPMS and JPMCC are protected by SIPC up to $500,000 per customer, which includes up to $100,000 of protection for cash. SIPC does not protect against losses from fluctuations in the value of the securities. Assets held in custody by JPMCB are not subject to SIPC. You may obtain information about SIPC, including the SIPC Brochure, on their website, at "www.sipc.org" or by contacting them at (202) 371-8300. To the extent applicable, please note the following regarding estimated annual income (EAI) and estimated yield (EY): EAI and EY for certain types of securities could include a return of principal or capital gains in which case the EAI and EY would be overstated. EAI and EY are estimates and the actual income and yield might be lower or higher than the estimated amounts. EY reflects only the income generated by an investment. It does not reflect changes in its price, which may fluctuate. JPMS, JPMCB or their affiliates (the "J.P. Morgan Companies") may provide administrative, custodial, sales, distribution or shareholder services to JPMorgan Funds, American Century Funds, or funds established, sponsored, advised, or managed by third parties, and the J.P. Morgan Companies may be compensated for such services. A financial statement of this organization is available to you for personal inspection at its offices, or a copy will be mailed to you upon written EFTA01556442 request. Bank products and services are offered through JPMCB and its banking affiliates. Securities are offered by JPMS and, to the extent noted above, cleared through JPMCC. If a partial call is made with respect to an issue of securities included in your Accounts we will allocate the call by a method we deem fair and equitable. JPMS is not a bank and is a separate legal entity from its bank or thrift affiliates, including JPMorgan Chase Bank, N.A. ("JPMCB"). Investment Products: Not FDIC Insured -No Bank Guarantee -May Lose Value IMPORTANT INFORMATION ABOUT ALTERNATIVE INVESTMENTS: FOOTNOTES 1 - 4 Private Equity, Hedge Funds, Exchange Funds, Real Estate and Other Alternative Assets 1. Direct private equity investments and pooled private investments (e.g., interests in limited partnerships and limited liability companies) are generally illiquid securities. Values are estimates only and are not warranted for accuracy or completeness. Values do not represent the actual terms at which transactions or securities could be bought or sold or new transactions could be entered into or the actual terms on which existing transactions could be liquidated as of the date of this statement. Disclosures Page 3 of 5 Page 15 of 17 EFTA01556443 For the Period 10/1/11 to 10/31/11 Direct private equity investments are generally valued at cost, unless there is an active secondary trading market in the securities, in which case, direct private equity investments are valued using market prices as of the close of the last business day for this statement period. Pooled private equity investments are valued according to the General Partner's or Manager's stated methodology. Please refer to the limited partnership agreement, limited liability company agreement or other operative documentation for each investment for the specific valuation methodology used by the General Partner or Manager for that investment. J.P. Morgan expressly disclaims any responsibility for (1) the accuracy of the information and the methodology used by the General Partner or Manager in deriving valuations, (2) any errors or omissions in compiling or disseminating the valuations, and (3) any use to which the valuations are put. Valuations are provided for information purposes only and are intended solely for your own use. Hedge funds generally calculate the price (the "Net Asset Value" or " NAV"), 10-15 business days following the last business day of the month. For that reason, hedge fund NAVs shown will generally be the NAV of the month preceding this statement period. In general, the NAV is stated net of management and incentive fees. The NAV is calculated according to the General Partner's or Manager's stated methodology. Please refer to the limited partnership agreement, limited liability company agreement or other operative documentation for each hedge fund for the specific methodology used by the General Partner or Manager for that hedge fund. J.P. Morgan expressly disclaims any responsibility for (1) the accuracy of the information and the methodology used by the General Partner or Manager in deriving valuations, (2) any errors or omissions in compiling or disseminating the valuations, and (3) any use to which the valuations are put. Valuations are provided for information purposes only and are intended solely for your own use. These statements do not provide tax reporting on private investments. Please continue to rely upon the General Partner or Manager of the investment vehicle for this information. 2. The 'Capital Called Since Inception USD' and "Cash/Security distributions Since Inception USD' columns are updated monthly to reflect activity (capital calls and distributions), if any. 3. Hedge funds generally allow subscriptions on a monthly or quarterly basis. Your interest in a hedge fund or hedge fund of funds is generally as of the first business day of the subscription period. Due to early funding requirements by the applicable fund, your account may be debited for the subscription amount prior to the subscription date. Please refer to the applicable hedge fund's operative documentation for further details. Hedge fund redemptions are generally on a monthly, quarterly or annual basis but can sometimes be subject to a multi-year lockup before a redemption is permitted. For redemptions, there is generally a notification period that can be a long interval before the actual redemption date. Redemption proceeds are generally paid 15 calendar days EFTA01556444 after the final NAV is issued, but can be subject to a holdback of a portion of the proceeds until an annual audit of the Fund has been completed. Please refer to the applicable hedge fund's operative documentation for further details. Global Access Portfolios share certain characteristics with hedge funds. In particular, an investor who withdraws from a Global Access Portfolio will not receive the withdrawal proceeds in their entirety until 30-60 days after completion of the Portfolio's audit, which may be 18 months or longer after the redemption date. Interest may not be paid on any proceeds pending distribution. These restrictions apply even if the investor's account at JPMorgan is closed. The Confidential Private Placement Memorandum and applicable Supplements contain other important information about the Global Access Portfolios and are available upon request. 4. Alternative assets may include publicly available mutual funds that utilize non-traditional investment management strategies, for example, strategies commonly employed by hedge funds. Mutual funds generally calculate the price (the "Net Asset Value" or "NAV") on a daily basis and mutual fund NAVs shown on your statement generally will be the NAV as of the close of the last business day for this statement period. Please refer to the applicable mutual fund prospectus for further details. If the applicable mutual fund is a JPMorgan Fund, please refer to disclosures on this statement concerning JPMorgan Funds for other important information. IMPORTANT ADDITIONAL INFORMATION SPECIFIC TO YOUR MARGIN ACCOUNT(S) All positions in your Margin Account Portfolio(s) are held in custody at J.P. Morgan Clearing Corp. ("JPMCC"), Three Chase Metrotech Center, Brooklyn, NY 11245-0001, (347) 643-2578. If you have a margin account with J.P.Morgan, as permitted by law we may use certain securities in such account for, among other things, settling short sales and lending the securities for short sales, and as a result may receive compensation in connection therewith. Please keep the following in mind when using a statement to track your brokerage activity in a margin account: The statement combines your general margin account with the special memorandum account required by Section 220.6 Regulation T. As required by Regulation T, a permanent record of your separate account is available upon your request. Disclosures Page 4 of 5 Page 16 of 17 EFTA01556445 For the Period 10/1/11 to 10/31/11 Free credit balances in your margin account(s) are not segregated and may be used in the operation of JPMCCs business, subject to the limitations of SEC Rule 15c3-3. Unless otherwise noted, JPMCC or its agents and depositories will hold your securities. Upon your demand, JPMCC will pay to you the amount of your free credit balance, and will deliver to you fully-paid securities held on your behalf. Interest will be charged on any debit balance; the method of calculating interest is described in a letter sent to all margin customers. Disclosures Page 5 of 5 Page 17 of 17 EFTA01556446 EFTA01556447