EFTA01511827.pdf

01 2005 JPMorgan Private Bank Account Number Asset Account Portfolio Page 11 of 14 FINANCIAL TRUST COMPANY, INC. January 01, 2005 - January 31, 2005 IMPORTANT INFORMATION ABOUT PFUVATE INVESTMENTS: FOOTNOTES I • 3 Continued ledge fund redemptions me generedyon a monthly querteehice annual basis but can sometimes be subject loofah's-me bcisup before a rederhoton is penntted For nedemptcos there is geneeafiya notiCabonpeftd Mat can betaking infant befcern. actual redenwtcn date Radenebon proceeds are genereMipad 3-5 business days afar Me final IVAV issued but can be subect b a hadback of* porton of the proceeds unto an annual elude of the Fund has been Carpeted Plea el to the appicabiehedge funds operatired0Currentaten for fuitherdefasts Fm hedge funds One of two fnelliddS me be used on Inn statement to report how mcentve foes Ina( may be owed to the GenesalRatnerce Manager are pad T ne fist method is called 'Seisesof Snares and Corsoideton Methxf *id will NbCalee nen sanest of the fledge fund eta per vaste(. g 1, 100 sr 1000)los evesysubsa.bon penal donee the yeas and a ditreranINAV watt* backed for each series Al Me end of the applesiblenCenthelee peered (generals/MO end Of the year). any serieset when an me:BorneA* is pirate fie. The fund nas a net pion; of is overlie eppliceisfefsgin iris* mineand knovin as tne -Conso4dafing Seca" nig be ,n posted wen end conscedeted as part of tne attests...es asued by the fund mallets an invest."' nal subtated fcr when en sneers:No lees payabehhe lead Seises') Invasion holding shares in a ConsoAdatens *IQ have New shares redeemed from each of the Consoklanng Sof for. and sonueaneouslyba issund addlonelsheros of Me toad Sores (based on the NAV of the Lead Sores on the convorsion date) My sores/. when en ncentve fee is not pay•bi•O 0 the turd hat a net bas a is not 0i0 DSO OPPIcenelnin ova* "'se, wet 'OM" S$ a $4,1Wate$0”" con, the Idanw mg +menthe fee Pated eta teemerefht Sem-end) , when d *Of fl ash a• evaluated and eonsoadated es pal of the Lead Sores bled prevOuStydescoled niers riot Thesecond method a Cale:lino EqualustenAtasnod' uelcationls an itecounhe nothodcrogy used to ensure that each no:term a hedge fund s paying hsla. 0 7“Wab atiret`Cei of nienthe feed Uhahe the Senn of Shwas method. Own he'd by *V investors we valued a! the sane NAV The 'Squat:shots Arnoune reflects an amount deducted from the subscnptnn amount n orbs to "equaicelne oncentive Meson:as investors orseesnrg to the Fund as the assent yeas The rasuaStatissFactor used to Stymy. the EquatatonAmount may vasyerreng "este:nand depends on both the defeat which an mveste subsates to the fund and the fund's current leseelol performance An snyesta who subscribes b a hard follawsng the nstal cbsung dab inV have an Semicolon Amotmt eefecttiosysegregated from the subscrefron amount utsexed to purchase shares The ScsuateationAmount can change as tine depending on any new mortices entering the fund as the amount is nen lasursaredlo encase etch snyes*r has an essntabbatecaten of "commie kes Note Mat a change sn equates/coder line can result in a neaabvv EatmezalsonAmount A negatseeequabraticnarrount empties a pctentos redsction nunvesto shares to pay incentive foes to the Manages Therese two EssuakrahonMethods cOnlinOnSe used today 'Peden:toss/islet's-4' or TtenveCintiOntlethOr (lode( both n # the fund is up in vats from as tescepton date and Cam the date in which an investor has invested fit Me end of the apfecabe peed (generetheyetvend)the Eau...Weston Arrows! is used by the Fund to cave Macao , sham to the nest. tf the invests., had invested in tne fond when the fund is down in vast, sffrom As snoepton date and Me keel SutceQuentry goes up in rake (at of beyond the eppasatOesnigh water meth) under the Rederhoton Method an investors shares md be redeem:410 pay snoentSve fees owed to the manager Under the DerrectabonMethol an amount is deducted from The subscription amount and decided a3a depreciates, *0034 which., then used to pay 'leonine lees owed to MeGenerelPietnesoi Menage on an meant bass For addebonahnformehon feet the hedge funda operehngdocvnwsts Confidential Treatment Requested by JPMorgan JPM-SDNY-00037663 Chase CONFIDENTIAL SDNY_GM_00306861 EFTA01511827