EFTA01557769.pdf

06 JPMorgan Chase Bank 2003 Account Number: FINANCIAL TRUST COMPANY, INC. 345 Park Avenue, New York, NY 10154-1002 Confidential Page 1 of 10 Asset Account Portfolio June 1 - June 30, 2003 Table of Contents Portfolio Summary Cash and Short Term Private Investments Account Transactions Account Officers Service Specialist: HORNAK/DORAZIO Page 2 3 4 5 000000.0000.00.0000.000.000000000.000000 HARRY BELLER C/O THE VILLARD HOUSE ATTN: JEFFREY EPSTEIN 457 MADISON AVENUE, 4TH FLOOR NEW YORK NY 10022 EFTA01557769 06 JPMorgan Chase Bank 2003 Account Number: FINANCIAL TRUST COMPANY, INC. 345 Park Avenue, New York, NY 10154-1002 Asset Account Portfolio June 01, 2003 - June 30, 2003 Page 2 of 10 Overview Portfolio Summary Except for the Deposit Account (if elected), and the cash in your Asset Account, which are insured deposits with JPMCB, none of the investments referred to in this statement of your Asset Account, including mutual funds, are FDIC insured or bank deposits, obligations of or guaranteed by JPMCB or any of its bank or thrift affiliates (unless otherwise indicated). Such securities and other investments are subject to investment risks, including possible loss of the principal amount invested. See "Important Information about your JPMSI Brokerage Account" at the end of this Asset Account Portfolio. Asset Allocation 55% Cash and Short Term 45% Private Investments* Market Value USD Jun 30 Cash & Short Term Total Accrued Income Total Portfolio Value Private Investments * 1,618,675.23 1,618,675.23 1,011.20 1,619,686.43 1,316,967.00 Market Value USD May 31 1,049,188.21 1,049,188.21 1,007.01 1,050,195.22 1,347,543.00 Tax Cost USD 1,618,675.23 1,618,675.23 Estimated Annual Income USD 16,834.22 16,834.22 Yield 1.0 1.0 Income Summary Dividends Total This Period USD 1,007.01 1,007.01 Year to Date USD* 6,875.75 6,875.75 *Value is an estimated figure given the illiquid nature of Private Investments (see Private Investment information at end of section summary). EFTA01557770 06 JPMorgan Chase Bank 2003 Account Number: I FINANCIAL TRUST COMPANY, INC. 345 Park Avenue, New York, NY 10154-1002 Asset Account Portfolio June 01, 2003 - June 30, 2003 Page 3 of 10 Cash and Short Term Summary by Maturity Current Market Value USD Cash Total 1,618,675.23 1,618,675.23 Estimated Annual Income USD 16,834.22 16,834.22 Current yield is displayed for instruments with no maturity and YTM on market is displ ayed for instruments that mature. Cash and Short Term by Type Description Unit Cost Adjusted Cusip/S&P/Moody's Rating Currency Quantity Original Market Price Tax Cost Adjusted Original Current Market Value USD Accrued Interest USD Unrealized Gain/Loss USD Estimated Current Annual Yield/ Income USD YTM % Cash JP MORGAN INSTITUTIONAL PRIME MONEY INSTITUTIONAL CLASS SWEEP FUND (829) (SWEEP DEADLINE IS 4:30 PM EST) 7-Day Annualized Yield: 1.03% USD 1,618,675.23 1.00 1.00 1,618,675.23 1,618,675.23 1,011.20 16,834.22 1.04 EFTA01557771 06 JPMorgan Chase Bank 2003 Account Number: I FINANCIAL TRUST COMPANY, INC. 345 Park Avenue, New York, NY 10154-1002 Asset Account Portfolio June 01, 2003 - June 30, 2003 Page 4 of 10 Private Investments * Private Investments Summary Estimated LPs, LLCs, and Other Total Current Value USD 1,316,967.00 1,316,967.00 Private Investment Holdings in Alphabetical Order Units/ Commitment USD Description LPs,LLCs, and Other NESTOR 2000 SPECIAL LLC EXPRESSED IN EUROS) * See: Important Information About Private Investments at the end of this statement Important Information about Pricing and Valuations Prices, some of which are provided by pricing services or other sources which we deem reliable, are not guaranteed for accuracy or as realizable values. USD 3,000,000.00 1,436,362.76 0.00 1,316,967.00 Currency Net of Origination Fee Capital Called Since Inception USD Cash/Security Distributions Since Inception USD Estimated Value USD EFTA01557772 06 JPMorgan Chase Bank 2003 Account Number: I FINANCIAL TRUST COMPANY, INC. 345 Park Avenue, New York, NY 10154-1002 Asset Account Portfolio June 01, 2003 - June 30, 2003 Page 5 of 10 Account Transactions Cash Activity Summary Amount this Period USD Beginning Balance Credits Dividends Sweep Account Sales Miscellaneous Receipts Debits Sweep Account Purchases Miscellaneous Disbursements Foreign Exchange Ending Balance *Year to date information is calculated on a calendar year basis. .00 - 844,487.02 - 303,000.00 - 3,532,923.18 - 2,871,000.00 - 349,594.52 .00 1,007.01 275,000.00 871,480.01 6,875.75 3,191,436.62 3,555,205.33 Amount Year to Date USD* Activity by Date Type Settlement Date Jun 2 Jun 2 Dividend Purchase 1,007.01 Quantity Description JP MORGAN INSTITUTIONAL PRIME MONEY INSTITUTIONAL CLASS SWEEP FUND (829) (SWEEP DEADLINE IS 4:30 PM EST) JP MORGAN INSTITUTIONAL PRIME MONEY INSTITUTIONAL CLASS SWEEP FUND (829) (SWEEP DEADLINE IS 4:30 PM EST) Amount USD 1,007.01 - 1,007.01 EFTA01557773 06 Settlement Date JPMorgan Chase Bank 2003 Account Number: FINANCIAL TRUST COMPANY, INC. 345 Park Avenue, New York, NY 10154-1002 Asset Account Portfolio June 01, 2003 - June 30, 2003 Page 6 of 10 Activity by Date Type continued Quantity Description Jun 10 Sale Jun 10 Misc. Disbursement - 25,000 JP MORGAN INSTITUTIONAL PRIME MONEY INSTITUTIONAL CLASS SWEEP FUND (829) (SWEEP DEADLINE IS 4:30 PM EST) TRANSFERRED BY WIRE TO FIRSTBANK PUERTO RICO FAO FINANCIAL TRUST COMPANY, INC. LETTER FROM CLIENT Jun 13 Sale Jun 13 Misc. Disbursement - 50,000 JP MORGAN INSTITUTIONAL PRIME MONEY INSTITUTIONAL CLASS SWEEP FUND (829) (SWEEP DEADLINE IS 4:30 PM EST) TRANSFERRED BY WIRE TO FIRSTBANK PUERTO RICO FAO FINANCIAL TRUST COMPANY, INC. REDEMPTION FROM THE JP MORGAN FUNDS Jun 17 Sale Jun 17 Misc. Disbursement - 50,000 JP MORGAN INSTITUTIONAL PRIME MONEY INSTITUTIONAL CLASS SWEEP FUND (829) (SWEEP DEADLINE IS 4:30 PM EST) TRANSFERRED BY WIRE TO FIRSTBANK PUERTO RICO FAO FINANCIAL TRUST COMPANY, INC. REDEMPTION FROM THE JP MORGAN FUNDS Jun 24 Purchase Jun 24 Misc. Receipt 843,480.01 JP MORGAN INSTITUTIONAL PRIME MONEY INSTITUTIONAL CLASS SWEEP FUND (829) (SWEEP DEADLINE IS 4:30 PM EST) FUND RED FROM BRKRG AC# (PRN) TO BRKRG AC# (PRN) LETTER FROM CLIENT - 843,480.01 680,902.52 50,000.00 - 50,000.00 50,000.00 - 50,000.00 Amount USD 25,000.00 - 25,000.00 EFTA01557774 06 Settlement Date JPMorgan Chase Bank 2003 Account Number: FINANCIAL TRUST COMPANY, INC. 345 Park Avenue, New York, NY 10154-1002 Asset Account Portfolio June 01, 2003 - June 30, 2003 Page 7 of 10 Activity by Date Type continued Quantity Description Jun 24 Misc. Receipt FUN RED FROM BRKRG ACt PRN TO BRKRG AC. (PRN) LETTER FROM CLIENT Jun 24 Misc. Disbursement TRANSFERRED BY WIRE TO FIRSTBANK PUERTO RICO FAO FINANCIAL TRUST COMPANY, INC. LETTER FROM CLIENT Jun 27 Sale Jun 27 Misc. Disbursement - 150,000 JP MORGAN INSTITUTIONAL PRIME MONEY INSTITUTIONAL CLASS SWEEP FUND (829) (SWEEP DEADLINE IS 4:30 PM EST) TRANSFERRED BY WIRE TO FIRSTBANK PUERTO RICO FAO FINANCIAL TRUST COMPANY, INC. REDEMPTION FROM THE JP MORGAN FUNDS 150,000.00 - 150,000.00 Amount USD 190,577.49 - 28,000.00 EFTA01557775 06 JPMorgan Chase Bank 2003 Account Number: FINANCIAL TRUST COMPANY, INC. 345 Park Avenue, New York, NY 10154-1002 Asset Account Portfolio June 01, 2003 - June 30, 2003 Page 8 of 10 In Case of Errors or Questions About Your Electronic Transfers. Contact yourMorgan Teamat one ofthe telephonenumbers on the front of this statement or write us at 500 Stanton ChristianaRoad, 1/OPS, Newark,DE19713-2107 as soon as you can , if you think yourstatement is wrong or if you needmore information about a transfer on the statement. We must hearfrom you no laterthan 60 days afterwe sent you the FIRST statement on which the erroror problem appeared. (1) Tellus yourname and account numbe r. (2) Describethe erroror the transferyou are unsure about, and explainas clearly as you can why you believe it is in erroror why you need more information. (3) tell us th e dollaramount of the suspected error. Ifyou contact us orally, you must send us your complaint or question in writing within 10 business days in order to preserveyour righ ts. We will investigateyourcomplaint and will correct any errorpromptly. Ifwe take more than 10 bu siness days to do this (20 days for purchases using yourdebit card or for internationa ltransactions),we will credit youraccount for the amount you think is in error, so tha t you will have the use ofmoneyduring the time it takes us to complete our investigation. In case of errors or questions about your statement, including your line of credit. If you think that your statement is incorrect or if you need more information about a transaction on your statement including a line of credit transaction, you must write t o us on a separate sheet describing the error and send it to: JPMorgan, Private Bank, 500 Stanton Christiana Road, 1/OPS3, Newark, DE 19713-2107. We must hear from you no later than 60 days after the statement on which the error or problem appe ared is sent. You can contact your client service specialist but doing so will not preserve your rights. In your letter, please provide the following information: (1) your name and account nu mber; (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. The JPMorgan Funds or The JPMorgan Institutional Funds or The American Century Funds J.P.Morgan Funds Distributor, Inc. is the distributor of the J.P.Morgan Funds and Amer ican CenturylnvestmentServiceslnc. is the distributor of the AmericanCenturyFunds. JPM organ InvestmentManagementInc. and American CenturyInvestmentManagementserve as investment advisors to theirrespectivefund families. Sharesofthe funds are not bankdep osits and are not guaranteedby anybank, governmententity, or the FDIC. Returnand share price will fluctuate and redemption valuemaybe more or less than originalcost. While the moneymarketfunds seekto maintain a stable net asset valueof$1.00 pershare, there is no assurancethat they will continue to do so. The estimatedannualincome and dividendyiel dfigures for mutual funds representthe funds' most recentincome dividendannualized. If you have chosen one of the sweep mutual funds, you are notified that positions in t he Prime Money Market Sweep Fund represent holdings in the JPMorgan Prime Money Market Fund; positions in the Federal Money Market Sweep Fund represent holdings in the JPMorgan Federal Money Market Fund; and positions in the Tax Exempt Money Market Sweep Fund represent holdings in the JPMorgan Tax Exempt Money Ma rket Fund. JPMorgan Private Bank is the marketing name for the private banking business conducted by J.P.Morgan Chase & Co. through its subsidiaries worldwide, including JPMorgan Chas e Bank, J.P. Morgan Trust Company, N.A. and J.P. Morgan Securities Inc. JPMSI is a memberof the Securities InvestorProtection Corporation (SIPC),a not-for-pro fit membership corporation funded by broker-dealersregisteredwith the Securities and E xchangeCommission. SIPC protects securities and cash held for a customer account at JP MSI up to $500,000, which includes up to $100,000 of protection for cash. The balance of t he account protection, which is referredto as excess SIPC, includes up to an additiona 1 $900,000 of protection for cash and $49,500,000 for any one customer. This excess SI PC coverageis limited to an aggregatedamount of$250,000,000 by a suretybond issued by a m ajorcommercialinsurance carrier. Assets held in custody byJPMCB are not subject to SIP Ccoverage. EFTA01557776 EFTA01557777 06 JPMorgan Chase Bank 2003 Account Number: FINANCIAL TRUST COMPANY, INC. 345 Park Avenue, New York, NY 10154-1002 Asset Account Portfolio June 01, 2003 - June 30, 2003 Page 9 of 10 IMPORTANT INFORMATION ABOUT PRIVATE INVESTMENTS: FOOTNOTES 1 - 3 Private Equity, Hedge Funds, Exchange Funds, Real Estate and Other Alternative Assets 1. Direct privateequityinvestments and pooled privateinvestments (e.g., interests in 1 imited partnershipsand limited liabilitycompanies)are generallyilliquid securities. Va luesare estimates only and are not warrantedfor accuracyor completeness. Valuesdo not represent the actual terms at which transactions or securities could be bought or sold or new tr ansactions could be enteredinto or the actual terms on which existing transactions cou Id be liquidatedas ofthe date of this statement. Direct private equity investments are generallyvaluedat cost, unless there is an activ e secondarytrading market in the securities, in which case, direct private equity inve stments are valuedusing market prices as of the close of the last business day for thi s statement period. Pooled private equity investments are valuedaccording to the GeneralPartner's or Manager's stated methodology. In general,pooled private equity investments are valu edat cost unless a significant investment event occurs which mandates a revaluationof the investment. The valuation methodologies generallyinclude an appraisalof the underlying assets at the lower of cost or a written-down amount, at a value at which third party financing has occurred, at a market price if an active secondarymarket develops, or a t a value calculated by an independent party. Please refer to the limited partnership agreement, limited liability company agreement or other operative documentation for each investm ent for the specific valuation methodology used by the GeneralPartner or Manager for t hat investment. Morgan expresslydisclaims anyresponsibilityfor (1) the accuracyofthe infor mation and the methodologyused by the GeneralPartneror Managerin derivingvaluations, ( 2)anyerrors or omissions in compiling or disseminating the valuations, and (3)anyuse t 0 which the valuationsare put. Valuationsare providedfor information purposes only and a re intendedsolelyfor yourown use. Hedge funds generallycalculate the price (the "Net Asset Value"or " NAV"), 10-15 busin ess days following the last business day of the month. For that reason, hedge fund NAV s shown will generallybe the NAVof the month preceding this statement period. In gener al, the NAVis stated net of managementand incentive fees. The NAVis calculatedaccording to the GeneralPartner's or Manager's stated methodology. Pleasereferto the limited partn ership agreement,limited liabilitycompany agreementor other operative documentation for each hedge fund for the specific valuation methodology used by the GeneralPartnero ✓ Managerfor that hedge fund. Morgan expresslydisclaims any responsibilityfor (1) the accuracyof the information and the methodology used by the GeneralPartneror Manager in derivingvaluations, (2)anyerrors or omissions in compiling or disseminating the valuat ions, and (3)anyuse to which the valuationsare put. Valuationsare providedfor informat ion purposes only and are intendedsolelyfor yourown use. ForExchangeFunds, the price (the "Net Asset Value"or "NAV")includes the valueofanynon- marketablesecurities that are valuedmonthly using a fairvaluemethodologyapprovedby the board of the Manager. The 'Net Asset ValueUSD' reflects the line of credit used to finance the non-marketablesecurities, the non-marketablesecurities and the swap contra cts used to mitigate the interest rate risk between the floating rate on the line of c redit and the fixed rate of the non-marketablesecurities. The Fund can draw down on th e line of credit to payexpensesand managementfees at startup or in the eventthat the dividendinc ome from the underlyingsecurities cannot paythe expensesof the Fund. This statement does not provide tax reporting on private investments. Please continue to rely upon the General Partner or Manager of the investment vehicle for this informa tion. Prices, some of which are provided by pricing services or other sources which we deem reliable, are not guaranteed for accuracy or as realizable values. 2. The 'Capital Called Since Inception USD' and "Cash/Security distributions Since Inc EFTA01557778 eption USD' columns are updated monthly to reflect activity (capital calls and distrib utions), if any. 3. Hedge funds generallyallow subscriptions on a monthly or quarterlybasis. Yourintere st in a hedge fund or hedge fund of funds is generallyas of the first business day of the subscription period. Due to earlyfunding requirementsby the applicablefund, your a ccount maybe debited for the subscription amount priorto the subscription date. Pleasereferto the applicablehedge fund's operativedocumentation for furtherdetails. EFTA01557779 06 JPMorgan Chase Bank 2003 Account Number: FINANCIAL TRUST COMPANY, INC. 345 Park Avenue, New York, NY 10154-1002 Asset Account Portfolio June 01, 2003 - June 30, 2003 Page 10 of 10 IMPORTANT INFORMATION ABOUT PRIVATE INVESTMENTS: FOOTNOTES 1 3 continued Hedge fund redemptions are generallyon a monthly, quarterlyor annual basis but can som etimes be subject to a multi-yearlockup before a redemption is permitted. For redempti ons, there is generallya notification period that can be a long interval before the ac tual redemption date. Redemption proceeds are generallypaid 3-5 business days afterthe fina 1 NAVis 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 referto the applicablehedge fund' operativedocumentation for furtherdetails. Forhedge funds, one of two methods will be used on this statement to report how incent ive fees that may be owed to the GeneralPartneror Managerare paid. The first method is called "Series of Shares and Consolidation Method" and will allocate a new series of the hedge fund at a parvalue (e.g. 1, 100 or 1000) for everysubscription period during the yearand a differentNAVwill be trackedfor each series. At the end of the applicableinc entive fee period (generallythe end of the year),any series for which an incentive fee is payable (i.e., the fund has a net profit or is overthe applicable"high water mark"and known as the "Consolidating Series")will be incorporatedwith and consolidated as part of the e arliestseries issued by the fund in which an investorhas subscribed for which an incen tive fee is payable(the "Lead Series"). Investorsholding shares in a Consolidating Series will hav e theirshares redeemedfrom each ofthe Consolidating Seriesand simultaneouslybe issued additionalshares ofthe LeadSeries(basedon the NAVofthe LeadSerieson the conversion date). Any series for which an incentive fee is not payable(i.e. the fund has a net lo ss or is not overthe applicablehigh water mark") will remain as a separateseries unti 1 the following incentive fee period ends (generallyat year-end),when it will again be evaluated and consolidatedas part of the LeadSeries if the previouslydescribedcriteria is met. The second method is calledthe "EqualizationMethod". "Equalization"is an accounting me thodologyused to ensure that each investorin a hedge fund is paying his/her equitablea llocation of incentive fees. Unlike the Seriesof Shares method, shares held by all inv estors are valued at the same NAV. The "EqualizationAmount" reflects an amount deducted from the subscription amount in order to "equalize"the incentive fees among investors inves ting to the Fund in the current year. The "EqualizationFactor" used to determine the EqualizationAmount may varyamong investors and depends on both the date at which an in vestorsubscribes to the fund and the fund's current levelofperformance. An investorwho subscribes to a fund following the initial closing date will havean Equalization Amou nt effectivelysegregatedfrom the subscription amount utilized to purchase shares. The Equ alizationAmount can change overtime, depending on anynew investors entering the fund a s the amount is again "equalized"to ensure each investorhas an equitable allocation of incentive fees. Note that a change in equalizationovertime can result in a negativeEqu alizationAmount. A negativeequalizationamount implies a potential reduction in investo rshares to payincentive fees to the Manager. There are two EqualizationMethods commonly used today: "Redemption Method" or "Depreci ationMethod". Underboth methods, if the fund is up in value from its inception date an d from the date in which an investorhas invested at the end of the applicable period (generallyyear-end)the EqualizationAmount is used by the Fund to issue additional shar es to the investor. If the investor had invested in the fund when the fund is down in value from its inception date and the fund subsequently goes up in value (at or beyond the applicablehigh water mark), under the Redemption Method an investor's shares will be r edeemedto pay incentive fees owed to the manager. Underthe DepreciationMethod, an amou nt is deducted from the subscription amount and credited as a depreciation deposit which is then used to payincentivefees owed to the GeneralPartneror Manageron an ongoi EFTA01557780 ng basis. Foradditionalinformation, referto the hedge fund's operatingdocuments. EFTA01557781