EFTA00284339.pdf

DETAILED PORTFOLIO PERFORMANCE REPORT MORTIMER B. ZUCKERMAN AND RELATED ENTITIES December 31, 2011 PREPARED AND COMPILED BY: IRA MARK CHRIS SPANGO CARL HENNESSY ADDITIONAL PORTIONS PREPARED BY: NEIL MAHESHWARI LYON POLK MORGAN STANLEY SMITII BARNEY FINANCIAL ADVISORS EFTA00284339 Mortimer B. Zuckerman and Related Entities Table of Contents Section Page I. Portfolio Overview • Summary of Investment Assets 1 • Detail of Investment Assets 4 • Consolidated Statement of Selected Assets 11 • Private Capital Portfolio Summary 17 II. Performance Reports • Mortimer B. Zuckerman 21 • The MBZ 19% Trust (GST Exempt) 30 • The MBZ 19% Trust (GST Non-Exempt) 35 • The MBZ 1983 Family Trust 39 • USN College Marketing, Inc. 44 • The MBZ Charitable Remainder Unitrust 48 • The USN Charitable Remainder Unitrust 53 • MBZ 1992 News Trust 56 III. Cash Account Activity • Mortimer B. Zuckerman 59 • The MBZ 19% Trust (GST Exempt) 71 • The MBZ 19% Trust (GST Non-Exempt) 74 • The MBZ 1983 Family Trust 78 • USN College Marketing, Inc. 81 • The MBZ Charitable Remainder Unitrust 84 • The USN Charitable Remainder Unitrust 88 MorganStanley SmithBarney EFTA00284340 Mortimer B. Zuckerman and Related Entities Table of Contents Section Page IV. Appendices • (A) Boston Properties, Inc. 90 • (B) Boston Properties, Inc. (Options) 91 • (C) Schedule of Private Capital Money Movements 93 • (D) Schedule of Transfers to Selected Investments 98 • (E) Schedule of Secured Debt 100 • (F) Schedule of Unsecured Debt 101 • (G) Schedule of Loan Guarantees 102 • (1-1) Schedule of Contingent Obligations 103 • (1) Fixed Income Summary / Distribution by Product Sector / Maturity Distribution Graph 104 V. Personal Expenses • MBZ Personal Expenses 107 VI. Balance Sheet • Mortimer B. Zuckerman 118 • The MBZ 19% Trust (GST Exempt) 123 • The MBZ 19% Trust (GST Non-Exempt) 125 • The MBZ 1983 Family Trust 127 • USN College Marketing, Inc. 129 • The MBZ Charitable Remainder Unitrust 130 • The USN Charitable Remainder Unitrust 132 • MBZ 1992 News Trust 133 MorganStanley SmithBarney EFTA00284341 Mortimer B. Zuckerman and Related Entities Table of Contents Section Page VII. Descriptions Of Investments • Descriptions Of Investments For MBZ And Related Entities 134 VIIL Disclosures • Disclosures 147 MorganStanley SmithBarney EFTA00284342 Mortimer B. Zuckerman and Related Entities Summary of Investment Assets - December 31, 2011 Asset Allocation We for Policy Assets Asset Allocation % for Investment Assets M unicipal Securities 3.1% Zuckerman Heal Properly WricbilrOorporite Persona Holdings Opibns I r 2.1% AIP Onshore 33% 3.3% Fledge Funds Cash Corporate Bonds Personal Assets t4% 2.9% AIP Offshore 4.9% 2.2% AIP Onshore Hedge Hedge Funds r Funds Private Capital Other Assets 0.5% 2.6% Cash 0.1% 38.3% 6A% AIP Onshore Hedge Notes and Loans Corporate Receivable Funds 43% 0.8% Bonds Global Bonds 13.5% Family Businesses OS% 2L8% Global Bonds Hedge Funds -Direct 2.2% 2.4% Pnvate Capital BXP (Common) 82% Fledge Funds - 82% Municipal/Cor Municipal Direct porate Securities BXP (Vested BXP (CPUs) 10.1% 311% 9.9% Options and LTIPs) BXP (Nonvested 14.6% to% Options and LTIPs) 0.7% TOTAL POLICY ASSETS $525,695,878 TOTAL EXCLUDING LIABILITIES $2,458,711,831 Please note: The Total Non-Policy Assets figure does not include the Present Value of FutureMS.2 Can Distnbunom and the Present Valued Future USN Crut Distributions Please note, Obligations To Related Partin include (1) BR,Inc. ('Lazy 2' Motor Yacht) (2) Pauline Center (3) USN Aviation • (ZWA, Inc.) (4) ZAS, LLC• (Waldorf Flight Services)(5) The MBZ News 1992 Trust UAD 12-29.92 Please note, Unsecured Obligabons ToThW Pants include: (1) h1BZ Printing (APT, LP) 12) Wall Payments (3) Dolly News, LP. • NJEDA (4) Daily News, L.P. • 1111D (5) Citibank Revolving Low of Credit (6) Ban& of America Revolving Line of Credn MorganStanley SmithBarney EFTA00284343 Mortimer B. Zuckerman and Related Entities Summary of Investment Assets - December 31, 2011 11/302011 1 4/2011 Total Asset Policy Asset Investment Assets Value Value Allocation 91, Allocation 96 Cash 16,182,078 33,791,910 1.4% 6.4% Municipal Securities 91,381,788 76,732,717 3.1% 14.6% Municipal/Corporate 54,188,896 52,068,384 21% 9.9% Corporate Bonds 67,182,455 71,040,514 29% 13.5% Global Bonds 9470,441 12,654,880 0.5% 2A% AIP Onshore Hedge Funds 11,564,809 11,553,338 0.5% 2.2% AIP Offshore Hedge Funds 13,568,722 13,535,447 0.6% 26% Hedge Funds -Direct 56,342,568 53,205,255 22% 10.1% Private Capital 208,544,349 201,113,433 8.2% 38.3% Total Policy Assets $528,626,106 $525,695,878 21.4% 100.0% Boston Properties, Inc. (Closing Price: $99.60) BXP (Common) 193,161,755 201,708,018 8.2% BXP (NonVested Options and LT1Ps) 15,350,965 16,185,780 0.7% BXP (OPUS) 731,293,721 763,649,136 31.1% BXP (Vested Options and LTIPs) 23,929,390 25,039,999 1.0% Family Businesses 529,679,866 535,497,412 21.8% Notes and Loans Receivable 104,503,126 104,503,126 4.3% Other Assets 10,793,097 3,613,926 0.1% Personal Assets 121,490,705 121,490,705 4.9% Zuckerman Personal Holdings 80,500,000 80,500,000 3.3% Real Property & Options 80,827,852 80,827,852 3.3% Total Non-Policy Assets $1,891,530,476 $1,933,015,954 78.6% Obligations To Related Parties -88,202,320 -88,035,503 Mortgages -*057,270 -57,941,848 Unsecured Obligations To Third Parties -202,869,869 -204,669,869 Total Liabilities ($349,129,459) ($350,647,220) Muse note: The Total Non-Policy Assets figure does not Include the Present Value of Future MBZ Crut Distnbutiorn and the Present Value of Future USN Coot Dkanbutiortt name note, Obligations To Related Pashes Include. (1) BR, Inc. Mary 2' Motor Yacht) (2) Pauline Center (3) USN Aviation • (ZWA. Inc.) (4) ZAS, LLC. (Waldorf Flight Services) IS) The MBZ News 1992 Trust UAD 1249.92 Noose note, Unsecured Obligations To l'hin:1 Panics Studs (1) MBZ Prinitng CAFTAN (2) Wall Payments43) Daily News, LP. • NADA (4) Daily News, L.P. - 'IUD (s) Citibank Revolving Line of Credit (6) Bank of America Revolving Line of Credit MorganStanley SmithBarney 2 EFTA00284344 Mortimer B. Zuckerman and Related Entities Summary of Investment Assets - December 31, 2011 IWO2011 12/31/21111 Total Asset Policy Asset Investment Assets Value Value Alloealloe % Allocation t5i) Total Excluding Liabilities $2,420,156,582 $2,458,711,831 100.0% Total Investment Assets $2,071,027,123 $2,108,064,611 Please note: The Total Non.Policy ,Usets figure does not Include the Present Value of Future Mgt Crut Disanbutiorn and the Present Value of Future USN Crut Distnbutiont Please note, Obliptionc To Related Pulls Include (1) BR, Inc. Mary 2* Motor Yacht) (2) PaulineCenter (3) USN Aviation • (ZWA. trie.) (4) ZAS, LLC. (Waldorf Flight Services) (5) The MBZ News 1992 Trull UAD 1229.92 Please note, Unsecured Obligahors ToThW Pubes irelude: (1) h1BZ Printing (APT, LP) (2) Wall Payments() Daily News, LP. • NADA (4) Daily News, L.P. - HUD (s) Citibank Revolving Line of Credit (6) Bank of America Revolving Line of Credn MorganStanley SmithBarney 3 EFTA00284345 Mortimer B. Zuckerman and Related Entities Detail of Investment Assets - December 31, 2011 MBZ 19% Trust MBZ 1996 Tnist MBZ 1983 USN College NM 1992 Asset Class/Investment Endeotes MBZ (GST Exempt) (GST Non-Exempt) Family Trust Marketing, Inc. MBZ CRUT USN CRUT News Trust Total Cash Bank of America - MMF 10,104 11,985 22.089 JP8I Chase - Checking 108,947 108,947 JPM Chase - Money Mkt 98,695 - 98,6% Morgan Stanley- Money Mkt 15,805.865 3,101,629 8,564909 1,368,536 2,157,168 1,394,833 150,440 32,543,379 Operating Account 1996TR (AIP) 542,400 - 542,400 Operating Amount MBZ CRUT (AIP) 476,400 476,400 Total Cash $16,023,611 $3,644,029 38,564909 31,368536 $23(8.152 $1,871,233 $150,440 $33,791,910 Municipal Securities Citibank - Muni Bonds 11,783,323 - - - - 11,783,323 McDonnell - Short Term Muni Bonds 5,901155 - 5,095,568 1,382,087 2,247,381 7478,836 876,937 23,382,065 Morgan Stanley- Inhirmediate Term Mimi Bonds 11,543,438 4,674,326 3,792,110 - 4,112,249 24,122122 Morgan Stanley- Long Term Muni Bonds 5,919291 1,601,846 4,270,439 517,274 134,339 12,443,189 Morgan Stanley -Short Term Mimi Bonds 1,133,405 2,454,083 1,016,665 265,952 101,913 - 5,002,018 Total Municipal Securities $36,280,711 58.730,255 $14,201,782 31,648,039 $2,866369 512,125,424 $876,937 $76,732,717 Municipal/Corporate Citi - Muni/Corporate Bonds (Formerly 11,027.030 19,455 3,597,436 1,896,231 10494316 24,932,916 52,068384 Blackrock) Total Municipal/Corporate 311,027,030 319,455 53,597,436 31,896,231 $10,595,316 524,932,916 $52,068,384 Corporate Bonds Seix 1,418,759 8,505,035 23,804,221 4016,987 3,763,238 19,679,220 7,853,064 71,040,514 Total Corporate Bonds $1,418,759 58.505,035 $23,801,221 56,016,907 33,763,238 319,679,220 S7,833,054 $71,040,514 Global Bonds Templeton Global Bond Fund 5,024,729 1,153,735 2242,551 1,169,764 710,635 2,283,924 169,542 12454880 Total Global Bonds 55.024,729 $1,153,735 $2342.551 51,169,764 3710,635 $2,233,921 5169,542 $12,651,880 1) The above values represent a summary of the current montNy values presented in the individual entity pages in Section II. For additional infonnation regarding individual invesenents please role to SeNonll. 2) Please now The Family Businesses figure includes the Preterit Value of Future USN Crut Cistributions. the Present Value of Future MBZ Out Dishibutions is part of Other Investment Assets MorganStanley SmithBarney 4 EFTA00284346 Mortimer B. Zuckerman and Related Entities Detail of Investment Assets - December 31, 2011 MBZ 1996 Trust MBZ 1996 Trust MBZ 1983 USN College M82 1992 Asset Clam/Investment Existeetem MBZ (GST Exempt) (CST Non-Exempt) Family Trust Marketing, Inc. SIBZ CRUT USN CRUT News Trust Total AIP Onshore Hedge Funds Boronia Diversified Fund (AIP) 657,108 657,408 Dialectic Antithesis Partners (All') 1,000,171 1,000,171 Double Black Diamond Class C (All') 1,128,147 1,128,147 GEM Realty Securities LP (AIP) 1,162,079 1,162,079 HSK Fund II LP(AIP) 1,257,042 1,257,042 Ivory Flagship Fund LP (MP) 1,097,751 1,097,754 Man AHL Diversified II USA (All') 486,154 486,154 Mariner Tricadia Credit Strat (AIP) 1,042,380 1,042,380 Millenium USA LP (AIP) 1,284,959 1,288,959 Owl Creek II LP (AIP) 33,929 3.3,929 Seligman Tech Spectrum Fund (All') 1,254,826 1,258,826 York Credit Opportunity Fund (AIP) 1,148,189 1,148,489 Total AIP Onshore Hedge Funds $11,553,338 511,553,338 AIP Offshore Hedge Funds Boronia Diversified Fund (AIP) 469,745 469,745 Dialectic Antithesis Partners (All') 1,008,010 1,008,010 Double Black Diamond Class C (All') 1,017,270 1,017,270 FISK Offshore Fund II Ltd. (AIP) 571,605 571,605 Ivory Offshore Flagship Fund (AIP) 995,448 996,448 Kaiser Trading Fund SIC Ltd. (AIP) 944,013 944,013 Mariner Treadle Credit Strat (AIP) 1,042,367 1,042,367 Millenium Intl Ltd - Class EE (MP) 1,163,851 1,163,851 MQ Asia Long Short Fd Offshore (AIP) 582,925 582,925 ONIG Opportunities Trading Fund (All') 483,587 483,587 Owl Creek Overseas Fund (AIP) 28,962 28962 Oz Overseas Fund Ltd. (AIP) 2,080,902 2,060,902 Pharo Macro Fund Ltd. (All') 963,864 963,854 Seligman Tech Spectrum Fund (AIP) 1,139,383 1,139,383 York Credit Opp Unit Trust (AIP) 1,043,525 1,043,525 Total AIP Offshore Hedge Funds 573,535,447 513,535,447 1) The above values represent a summary of thecurrent mmtNy values presented in the individual entity pages in Section II. For additional information regarding individual investments please Me to SeNonll. 2) Moose note: The Family Businesses figure includes the Preierd Value of Future USN Crut Distributions. The Present Value of Future NIBZ Crut Distnbutions es pan of Other Investment Assets MorganStanley SmithBarney 5 EFTA00284347 Mortimer B. Zuckerman and Related Entities Detail of Investment Assets - December 31, 2011 MBZ 1996 Trust MBZ 1996 Trust MBZ 1983 USN College MBZ 1992 Asset Class/Investment Endnotes MBZ (CST Exempt) (GST Non-Exempt) Family Trust Marketing. Inc. MBZ CRUT USN CRUT News Trust Total Hedge Funds -Direct AIP Custom HF Solutions • 5,815,971 5,815,971 American Steadfast L.P. 5,578,572 - - 5,578,572 AP Investments Europe Limited 59,676 - 59,676 Ascot Fund Limited • 0 0 Blackstone Offshore Fund II • 1,838,896 1,838,896 CCA Absolute Return Muni Strategy, L.P. 5,130,601 5,607,861 - 10,738,468 GS Investment Partners (Offshore) - - 920,077 974077 CS Investment Partners (Onshore) 1,201619 - - - 1,203419 Paulson Advantage LP. 11,031,689 3,483,691 - 14,515380 Paulson Advantage Plus, L.P. 9,388,107 3,027,979 12,416,086 Taconic Opportunity Fund - 118,510 - 118,310 Total Hedge Funds -Direct 55,578,572 51203419 525,728,586 $6,511,670 55,607,861 58,574,941 853205,255 Private Capital - Fund of Funds Chase Capital Partners Private Equity FF II, LTD 338,772 - 338,772 GS Private Equity Partners II, L.P. 841720 373,231 686,381 - - 1,901,332 GS Vintage Fund, LP. 1,359,828 - 1,359,828 Quellos Financial Ventures II, (CRT), LP. - 391,356 391,356 Oodles Financial Ventures II, LP. 779,315 - - 779,315 Quellos Private Capital 2002, L.P. 1,227,635 1,227,635 - 2,155270 Quellos Private Capital 2002, L.P. (US Mature) 6,729,663 - - 6,729,663 Quellos Private Capital II, L.P. 8,123,832 2,030,959 2,030,959 - 12,185,750 Total Private Capital - Fund of Funds 516413,302 53,631,825 52,717,340 52,587,463 5391356 $26,141,286 1) The above values represent a summary of the current mondgy values presented m the individual entity pages in Section II. For additional information regarding individual Monument& papaw Se to Section II. 2) Please note: The Family Businesses figure includes the Presera Value of Future USN Crut Destributions. The Present Value of Future NIBZ Out Dishabutions is part of Other Investment AmeM MorganStanley SmithBarney 6 EFTA00284348 Mortimer B. Zuckerman and Related Entities Detail of Investment Assets - December 31, 2011 MBZ 1996 Trust MBZ 1996Tnist hiBZ 1983 USN College MBZ 1992 Asset Class/Investment Endnotee MBZ (GST Exempt) (GST Non-Exempt) Family Trust Marketing, Inc. MBZ CRUT USN CRUT News Trust Total Private Capital - Direct Partnerships Brickman 1280 Fifth Investments II, L.P. 970,090 970,090 Brickman Real Estate Fund I, L.P. 895,317 895,317 Brickman Real Estate Fund II, LP. 2,188,789 2,188,789 Brickman Real Estate Fund Ia. LP. 1,035,684 1,05,684 Brickman Real Estate Fund IV, LP. • 1,713,959 1,713,959 Court Square Capital Partners LP. (CVC 1,148,444 • 1,148,444 Eq.Partners LP.) CVC Capital Partners Asia Pacific II, L.P. 2,115,511 . . 2,115411 CPC European Equity Partners IV, L.P. . 2,390,613 2,390,613 4,781226 CVC European Equity Partners V, L.P. 3,341406 3,680,571 .. 7,022477 Evercore Venture Partners, LP. 118,212 - . 118,212 Francisco Partners, L.P. 1,805,546 - 1,886,546 Gabriel Capital Investment 2006 10,115,478 10,115,478 Generation Capital Partners II, L.P. 1,285,199 1,288499 allot Capital Partners I, LP. 52.500 52.50) Greycroft Partners II, L.P. 413,55 113,521 GS Capital Partners III, L.P. 375,404 375.404 Heartland Industrial Partners, LP. 783,383 783)83 Israel Infrastructure Fund IC, LP. 1,481,190 1,484,190 2,968,379 Legacy Capital, LP. - 726,